Item 1. Reports to Stockholders
Table of Contents
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| Semiannual report |
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| Closed-end fund |
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| Delaware Investments® National Municipal Income Fund |
| September 30, 2022 |
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Table of Contents
Table of contents
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.
Unless otherwise noted, views expressed herein are current as of September 30, 2022, and subject to change for events occurring after such date.
The Fund is not FDIC insured and is 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.
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 Fund is governed by US laws and regulations.
All third-party marks cited are the property of their respective owners.
©2022 Macquarie Management Holdings, Inc.
Table of Contents
Fund basics
As of September 30, 2022 (Unaudited)
Delaware Investments®
National Municipal Income Fund
Fund objective
The Fund seeks to provide current income exempt from regular
federal income tax, consistent with the preservation of capital.
Total Fund net assets
$234 million
Number of holdings
364
Fund start date
February 26, 1993
NYSE American symbol
VFL
CUSIP number
24610T108
1
Table of Contents
Security type / sector / state / territory allocations
As of September 30, 2022 (Unaudited)
Sector designations may be different from the sector designations presented in other Fund materials.
Delaware Investments® National Municipal Income Fund
|
|
Percentage |
|
| Security type / sector |
|
of net assets |
|
| Municipal Bonds* |
|
155.78% |
|
| Corporate Revenue Bonds |
|
11.88% |
|
| Education Revenue Bonds |
|
16.87% |
|
| Electric Revenue Bonds |
|
8.62% |
|
| Healthcare Revenue Bonds |
|
40.46% |
|
| Housing Revenue Bonds |
|
0.83% |
|
| Lease Revenue Bonds |
|
9.26% |
|
| Local General Obligation Bonds |
|
6.58% |
|
| Pre-Refunded/Escrowed to Maturity Bonds |
|
5.09% |
|
| Special Tax Revenue Bonds |
|
28.59% |
|
| State General Obligation Bonds |
|
6.43% |
|
| Transportation Revenue Bonds |
|
13.34% |
|
| Water & Sewer Revenue Bonds |
|
7.83% |
|
| Total Value of Securities |
|
155.78% |
|
| Liquidation Value of Preferred** |
|
(57.58% |
) |
| Receivables and Other Assets Net of Liabilities |
|
1.80% |
|
| Total Net Assets |
|
100.00% |
|
|
* |
As of the date of this report, Delaware Investments National Municipal Income Fund held bonds issued by or on behalf of territories and the states of the US as follows: |
|
|
Percentage |
| State / territory |
|
of net assets |
| Alabama |
|
1.76% |
| Arizona |
|
6.36% |
| California |
|
7.62% |
| Colorado |
|
19.81% |
| District of Columbia |
|
0.18% |
| Florida |
|
9.35% |
| Georgia |
|
2.35% |
| Guam |
|
1.82% |
| Idaho |
|
1.78% |
| Illinois |
|
6.24% |
| Indiana |
|
0.24% |
| Iowa |
|
0.57% |
| Kansas |
|
0.08% |
| Louisiana |
|
0.83% |
| Maryland |
|
0.31% |
| Massachusetts |
|
0.21% |
| Michigan |
|
1.72% |
| Minnesota |
|
36.57% |
| Missouri |
|
2.13% |
| Montana |
|
0.74% |
| Nebraska |
|
0.10% |
| New Jersey |
|
2.75% |
| New York |
|
13.51% |
| Ohio |
|
0.71% |
| Oregon |
|
1.22% |
| Pennsylvania |
|
7.65% |
| Puerto Rico |
|
24.67% |
| Texas |
|
1.14% |
| US Virgin Islands |
|
0.27% |
| Utah |
|
0.27% |
| Virginia |
|
1.83% |
| Wisconsin |
|
0.99% |
| Total Value of Securities |
|
155.78% |
|
** |
More information regarding the Fund’s use of preferred shares as leverage is included in Note 4 in “Notes to financial statements.” The Fund utilizes preferred shares as leverage in an attempt to obtain a higher return for the Fund. There is no assurance that the Fund will achieve a higher return or its investment objectives through the use of such leverage. |
2
Table of Contents
Schedule of investments
Delaware Investments® National Municipal Income Fund
September 30, 2022
|
|
|
|
|
Principal |
|
|
|
|
|
|
|
|
amount° |
|
Value (US $) |
| Municipal Bonds — 155.78% |
|
|
|
|
|
| Corporate Revenue Bonds — 11.88% |
|
|
|
|
|
| |
Arizona Industrial Development |
|
|
|
|
|
|
|
Authority Revenue |
|
|
|
|
|
|
|
(Legacy Cares, Inc. Project) |
|
|
|
|
|
|
|
|
Series A 144A 7.75% |
|
|
|
|
|
|
|
|
7/1/50 # |
|
725,000 |
|
$ |
701,641 |
|
Buckeye, Ohio Tobacco |
|
|
|
|
|
|
|
Settlement Financing Authority |
|
|
|
|
|
|
|
Series A-2 3.00% 6/1/48 |
|
985,000 |
|
|
659,763 |
|
California Empire Tobacco |
|
|
|
|
|
|
|
Securitization |
|
|
|
|
|
|
|
Series E |
|
|
|
|
|
|
|
144A 0.63% 6/1/57 #, ^ |
|
3,900,000 |
|
|
188,253 |
|
|
Series F |
|
|
|
|
|
|
|
144A 0.778% 6/1/57 #, ^ |
|
2,500,000 |
|
|
101,200 |
|
Central Plains Energy Project |
|
|
|
|
|
|
|
Revenue, Nebraska |
|
|
|
|
|
|
|
(Project No. 3) |
|
|
|
|
|
|
|
|
Series A 5.00% 9/1/36 |
|
225,000 |
|
|
222,644 |
|
Chandler, Arizona Industrial |
|
|
|
|
|
|
|
Development Authority |
|
|
|
|
|
|
|
5.00% 9/1/42 (AMT) ● |
|
2,825,000 |
|
|
2,924,525 |
|
Commonwealth Financing |
|
|
|
|
|
|
|
Authority Revenue, |
|
|
|
|
|
|
|
Pennsylvania |
|
|
|
|
|
|
|
(Tobacco Master Settlement |
|
|
|
|
|
|
|
|
Payment) |
|
|
|
|
|
|
|
|
4.00% 6/1/39 (AGM) |
|
1,015,000 |
|
|
946,305 |
|
Florida Development Finance |
|
|
|
|
|
|
|
Surface Transportation |
|
|
|
|
|
|
|
Facilities Revenue |
|
|
|
|
|
|
|
(Brightline Passenger Rail |
|
|
|
|
|
|
|
|
Project) |
|
|
|
|
|
|
|
|
Series B 144A 7.375% |
|
|
|
|
|
|
|
|
1/1/49 (AMT) # |
|
680,000 |
|
|
587,717 |
|
|
(Virgin Trains USA Passenger |
|
|
|
|
|
|
|
|
Rail Project) |
|
|
|
|
|
|
|
|
Series A 144A 6.50% |
|
|
|
|
|
|
|
|
1/1/49 (AMT) #, ● |
|
475,000 |
|
|
404,686 |
|
Geo. L. Smith II Georgia World |
|
|
|
|
|
|
|
Congress Center Authority |
|
|
|
|
|
|
|
Revenue |
|
|
|
|
|
|
|
(Convention Center Hotel First |
|
|
|
|
|
|
|
|
Tier) |
|
|
|
|
|
|
|
|
Series A 4.00% 1/1/54 |
|
4,750,000 |
|
|
3,637,787 |
|
Golden State, California Tobacco |
|
|
|
|
|
|
|
Securitization Settlement |
|
|
|
|
|
|
|
Revenue |
|
|
|
|
|
|
|
(Capital Appreciation) |
|
|
|
|
|
|
|
|
Subordinate Series |
|
|
|
|
|
|
|
|
B-2 1.089% 6/1/66 ^ |
|
15,000,000 |
|
|
1,317,150 |
|
Hoover, Alabama Environmental |
|
|
|
|
|
|
|
Improvement Revenue |
|
|
|
|
|
|
|
(United States Steel Project) |
|
|
|
|
|
|
|
|
5.75% 10/1/49 (AMT) |
|
2,000,000 |
|
|
2,039,120 |
|
Iowa Finance Authority |
|
|
|
|
|
|
|
Midwestern Disaster Area |
|
|
|
|
|
|
|
Revenue |
|
|
|
|
|
|
|
(Fertilizer Company Project) |
|
|
|
|
|
|
|
|
5.00% 12/1/50 ● |
|
1,485,000 |
|
|
1,344,742 |
|
M-S-R Energy Authority California |
|
|
|
|
|
|
|
Gas Revenue |
|
|
|
|
|
|
|
Series B 6.50% 11/1/39 |
|
250,000 |
|
|
289,102 |
|
|
Series C 7.00% 11/1/34 |
|
1,000,000 |
|
|
1,183,770 |
|
New York Liberty Development |
|
|
|
|
|
|
|
Revenue |
|
|
|
|
|
|
|
(Goldman Sachs Headquarters |
|
|
|
|
|
|
|
|
Issue) |
|
|
|
|
|
|
|
|
5.50% 10/1/37 |
|
2,130,000 |
|
|
2,255,180 |
|
New York Transportation |
|
|
|
|
|
|
|
Development |
|
|
|
|
|
|
|
(Delta Air Lines, Inc. - |
|
|
|
|
|
|
|
|
LaGuardia Airport Terminals |
|
|
|
|
|
|
|
|
C&D Redevelopment |
|
|
|
|
|
|
|
|
Project) |
|
|
|
|
|
|
|
|
4.00% 1/1/36 (AMT) |
|
750,000 |
|
|
663,255 |
|
Public Authority for Colorado |
|
|
|
|
|
|
|
Energy Natural Gas Revenue |
|
|
|
|
|
|
|
6.25% 11/15/28 |
|
865,000 |
|
|
917,981 |
|
|
6.50% 11/15/38 |
|
2,250,000 |
|
|
2,567,273 |
|
Public Finance Authority, |
|
|
|
|
|
|
|
Wisconsin Hotel Revenue |
|
|
|
|
|
|
|
(Grand Hyatt San Antonio Hotel |
|
|
|
|
|
|
|
|
Acquisition Project) |
|
|
|
|
|
|
|
|
Series A 5.00% 2/1/62 |
|
1,475,000 |
|
|
1,272,733 |
|
Shoals, Indiana Exempt Facilities |
|
|
|
|
|
|
|
Revenue |
|
|
|
|
|
|
|
(National Gypsum Project) |
|
|
|
|
|
|
|
|
7.25% 11/1/43 (AMT) |
|
310,000 |
|
|
314,309 |
3
Table of Contents
Schedule of investments
Delaware Investments® National Municipal Income Fund
| |
|
|
|
|
Principal |
|
|
|
|
|
|
|
|
amount° |
|
Value (US $) |
| Municipal Bonds (continued) |
|
|
|
|
|
| Corporate Revenue Bonds (continued) |
|
|
|
|
|
|
Tobacco Securitization Authority of |
|
|
|
|
|
|
|
Southern California |
|
|
|
|
|
|
|
(San Diego County) |
|
|
|
|
|
|
|
Capital Appreciation Second |
|
|
|
|
|
|
|
Subordinate |
|
|
|
|
|
|
|
Series C 1.105% 6/1/46 ^ |
|
3,235,000 |
|
$ |
456,523 |
|
|
Capital Appreciation Third |
|
|
|
|
|
|
|
Subordinate |
|
|
|
|
|
|
|
Series D 1.183% 6/1/46 ^ |
|
3,015,000 |
|
|
332,434 |
|
Tobacco Settlement Financing, |
|
|
|
|
|
|
|
Louisiana |
|
|
|
|
|
|
|
Series A 5.25% 5/15/35 |
|
460,000 |
|
|
468,680 |
|
Tobacco Settlement Financing, |
|
|
|
|
|
|
|
New Jersey |
|
|
|
|
|
|
|
Senior Series A 5.00% 6/1/46 |
|
130,000 |
|
|
122,363 |
|
TSASC Revenue, New York |
|
|
|
|
|
|
|
(Senior) |
|
|
|
|
|
|
|
|
Fiscal 2017 Series A 5.00% |
|
|
|
|
|
|
|
|
6/1/41 |
|
60,000 |
|
|
60,413 |
|
Tuscaloosa County, Alabama |
|
|
|
|
|
|
|
Development Authority Golf |
|
|
|
|
|
|
|
Opportunity Zone |
|
|
|
|
|
|
|
(Hunt Refining Project) |
|
|
|
|
|
|
|
|
Series A 144A 5.25% |
|
|
|
|
|
|
|
|
5/1/44 # |
|
1,935,000 |
|
|
1,634,630 |
|
Valparaiso, Indiana Exempt |
|
|
|
|
|
|
|
Facilities Revenue |
|
|
|
|
|
|
|
(Pratt Paper LLC Project) |
|
|
|
|
|
|
|
|
7.00% 1/1/44 (AMT) |
|
240,000 |
|
|
246,792 |
|
|
|
|
|
|
|
|
27,860,971 |
| Education Revenue Bonds – 16.87% |
|
|
|
|
|
|
Arizona Industrial Development |
|
|
|
|
|
|
|
Authority Revenue |
|
|
|
|
|
|
|
(American Charter Schools |
|
|
|
|
|
|
|
|
Foundation Project) |
|
|
|
|
|
|
|
|
144A 6.00% 7/1/47 # |
|
330,000 |
|
|
332,660 |
|
|
(Leman Academy of Excellence |
|
|
|
|
|
|
|
|
of Projects) |
|
|
|
|
|
|
|
|
Series A 4.50% 7/1/54 |
|
1,115,000 |
|
|
903,808 |
|
Bethel, Minnesota Charter School |
|
|
|
|
|
|
|
Lease Revenue |
|
|
|
|
|
|
|
(Spectrum High School Project) |
|
|
|
|
|
|
|
|
Series A 4.375% 7/1/52 |
|
1,100,000 |
|
|
863,467 |
|
Board of Trustees For Colorado |
|
|
|
|
|
|
|
Mesa University Enterprise |
|
|
|
|
|
|
|
Revenue |
|
|
|
|
|
|
|
Series B 5.00% 5/15/49 |
|
750,000 |
|
|
781,740 |
|
Brooklyn Park, Minnesota Charter |
|
|
|
|
|
|
|
School Lease Revenue |
|
|
|
|
|
|
|
(Prairie Seeds Academy |
|
|
|
|
|
|
|
Project) |
|
|
|
|
|
|
|
Series A 5.00% 3/1/34 |
|
990,000 |
|
|
922,165 |
|
|
Series A 5.00% 3/1/39 |
|
170,000 |
|
|
151,256 |
|
California Educational Facilities |
|
|
|
|
|
|
|
Authority Revenue |
|
|
|
|
|
|
|
(Loma Linda University) |
|
|
|
|
|
|
|
|
Series A 5.00% 4/1/47 |
|
500,000 |
|
|
514,005 |
|
|
(Stanford University - Green |
|
|
|
|
|
|
|
|
Bonds) |
|
|
|
|
|
|
|
|
Series V-2 2.25% 4/1/51 |
|
500,000 |
|
|
283,745 |
|
|
(Stanford University) |
|
|
|
|
|
|
|
|
Series V-1 5.00% 5/1/49 |
|
1,900,000 |
|
|
2,081,241 |
|
Colorado Educational & Cultural |
|
|
|
|
|
|
|
Facilities Authority Revenue |
|
|
|
|
|
|
|
(Aspen View Academy Project) |
|
|
|
|
|
|
|
|
4.00% 5/1/41 |
|
175,000 |
|
|
141,094 |
|
|
(Charter School - Aspen Ridge |
|
|
|
|
|
|
|
School Project) |
|
|
|
|
|
|
|
Series A 144A 5.00% 7/1/36 # |
|
500,000 |
|
|
478,855 |
|
|
Series A 144A 5.25% 7/1/46 # |
|
500,000 |
|
|
465,345 |
|
|
(Charter School - Community |
|
|
|
|
|
|
|
|
Leadership Academy, Inc. |
|
|
|
|
|
|
|
|
Second Campus Project) |
|
|
|
|
|
|
|
|
7.45% 8/1/48 |
|
500,000 |
|
|
510,175 |
|
|
(Charter School - Global Village |
|
|
|
|
|
|
|
|
Academy - Northglenn |
|
|
|
|
|
|
|
|
Project) |
|
|
|
|
|
|
|
|
144A 5.00% 12/1/50 # |
|
475,000 |
|
|
380,860 |
|
|
(Charter School - Liberty |
|
|
|
|
|
|
|
|
Common Project) |
|
|
|
|
|
|
|
|
Series A 5.00% 1/15/44 |
|
1,000,000 |
|
|
1,001,640 |
|
|
(Charter School - Peak to Peak |
|
|
|
|
|
|
|
|
Charter School Project) |
|
|
|
|
|
|
|
|
5.00% 8/15/34 |
|
1,000,000 |
|
|
1,017,390 |
|
|
(Charter School - |
|
|
|
|
|
|
|
Science Technology |
|
|
|
|
|
|
|
Engineering and Math (STEM) |
|
|
|
|
|
|
|
School Project) |
|
|
|
|
|
|
|
5.00% 11/1/54 |
|
700,000 |
|
|
616,658 |
|
|
5.125% 11/1/49 |
|
765,000 |
|
|
695,033 |
|
|
(Charter School - Skyview |
|
|
|
|
|
|
|
|
Academy Project) |
|
|
|
|
|
|
|
|
144A 5.50% 7/1/49 # |
|
750,000 |
|
|
728,460 |
|
|
(Charter School - University |
|
|
|
|
|
|
|
|
Lab School Building) |
|
|
|
|
|
|
|
|
144A 5.00% 12/15/45 # |
|
500,000 |
|
|
491,090 |
|
|
(Vail Mountain School Project) |
|
|
|
|
|
|
|
|
4.00% 5/1/46 |
|
25,000 |
|
|
19,815 |
4
Table of Contents
| |
|
|
|
|
Principal |
|
|
|
|
|
|
|
|
amount° |
|
Value (US $) |
| Municipal Bonds (continued) |
|
|
|
|
|
| Education Revenue Bonds (continued) |
|
|
|
|
|
|
Colorado School of Mines |
|
|
|
|
|
|
|
Series B 5.00% 12/1/42 |
|
270,000 |
|
$ |
270,267 |
|
Deephaven, Minnesota Charter |
|
|
|
|
|
|
|
School |
|
|
|
|
|
|
|
(Eagle Ridge Academy Project) |
|
|
|
|
|
|
|
Series A 5.25% 7/1/37 |
|
590,000 |
|
|
578,678 |
|
|
Series A 5.25% 7/1/40 |
|
500,000 |
|
|
483,705 |
|
Duluth, Minnesota Housing & |
|
|
|
|
|
|
|
Redevelopment Authority |
|
|
|
|
|
|
|
Revenue |
|
|
|
|
|
|
|
(Duluth Public Schools |
|
|
|
|
|
|
|
|
Academy Project) |
|
|
|
|
|
|
|
|
Series A 5.00% 11/1/48 |
|
1,200,000 |
|
|
1,037,100 |
|
Florida Development Finance |
|
|
|
|
|
|
|
Educational Revenue |
|
|
|
|
|
|
|
(River City Science Academy |
|
|
|
|
|
|
|
Project) |
|
|
|
|
|
|
|
5.00% 7/1/51 |
|
395,000 |
|
|
358,968 |
|
|
Series A-1 5.00% 2/1/57 |
|
575,000 |
|
|
507,265 |
|
|
Series A-1 5.00% 7/1/57 |
|
680,000 |
|
|
552,446 |
|
|
Series B 5.00% 7/1/51 |
|
650,000 |
|
|
545,668 |
|
|
Series B 5.00% 6/15/56 |
|
655,000 |
|
|
622,879 |
|
Forest Lake, Minnesota Charter |
|
|
|
|
|
|
|
School Revenue |
|
|
|
|
|
|
|
(Lake International Language |
|
|
|
|
|
|
|
Academy Project) |
|
|
|
|
|
|
|
Series A 5.375% 8/1/50 |
|
915,000 |
|
|
855,552 |
|
|
Series A 5.75% 8/1/44 |
|
705,000 |
|
|
705,416 |
|
Illinois Finance Authority Revenue |
|
|
|
|
|
|
|
(CHF - Chicago, L.L.C. - |
|
|
|
|
|
|
|
|
University of Illinois at |
|
|
|
|
|
|
|
|
Chicago Project) |
|
|
|
|
|
|
|
|
Series A 5.00% 2/15/50 |
|
460,000 |
|
|
396,304 |
|
|
(Chicago International Charter |
|
|
|
|
|
|
|
|
School Project) |
|
|
|
|
|
|
|
|
5.00% 12/1/47 |
|
535,000 |
|
|
510,855 |
|
Louisiana Public Facilities |
|
|
|
|
|
|
|
Authority Revenue |
|
|
|
|
|
|
|
(Provident Group - Flagship |
|
|
|
|
|
|
|
|
Properties LLC - Louisiana |
|
|
|
|
|
|
|
|
State University Nicholson |
|
|
|
|
|
|
|
|
Gateway Project) |
|
|
|
|
|
|
|
|
Series A 5.00% 7/1/56 |
|
500,000 |
|
|
493,235 |
|
Maricopa County, Arizona |
|
|
|
|
|
|
|
Industrial Development |
|
|
|
|
|
|
|
Authority County |
|
|
|
|
|
|
|
(Highland Prep Project) |
|
|
|
|
|
|
|
Series A 4.00% 7/1/29 |
|
315,000 |
|
|
311,620 |
|
Maricopa County, Arizona |
|
|
|
|
|
|
|
Industrial Development |
|
|
|
|
|
|
|
Authority County |
|
|
|
|
|
|
|
(Highland Prep Project) |
|
|
|
|
|
|
|
Series A 4.00% 7/1/31 |
|
345,000 |
|
|
333,329 |
|
|
Series A 4.00% 7/1/33 |
|
375,000 |
|
|
353,528 |
|
|
Series A 4.00% 7/1/35 |
|
405,000 |
|
|
374,459 |
|
|
Series A 4.00% 7/1/37 |
|
440,000 |
|
|
400,457 |
|
|
Series A 4.00% 7/1/39 |
|
480,000 |
|
|
429,739 |
|
|
Series A 4.00% 7/1/41 |
|
520,000 |
|
|
458,068 |
|
Massachusetts Development |
|
|
|
|
|
|
|
Finance Agency |
|
|
|
|
|
|
|
(Umass Boston Student |
|
|
|
|
|
|
|
|
Housing Project) |
|
|
|
|
|
|
|
|
5.00% 10/1/48 |
|
285,000 |
|
|
247,716 |
|
Minneapolis, Minnesota Student |
|
|
|
|
|
|
|
Housing Revenue |
|
|
|
|
|
|
|
(Riverton Community Housing |
|
|
|
|
|
|
|
Project) |
|
|
|
|
|
|
|
5.25% 8/1/39 |
|
205,000 |
|
|
201,169 |
|
|
5.50% 8/1/49 |
|
990,000 |
|
|
970,863 |
|
Minnesota Higher Education |
|
|
|
|
|
|
|
Facilities Authority Revenue |
|
|
|
|
|
|
|
(Carleton College) |
|
|
|
|
|
|
|
4.00% 3/1/36 |
|
485,000 |
|
|
475,751 |
|
|
5.00% 3/1/44 |
|
555,000 |
|
|
576,534 |
|
|
(Gustavus Adolphus College) |
|
|
|
|
|
|
|
|
5.00% 10/1/47 |
|
500,000 |
|
|
498,780 |
|
|
(Macalester College) |
|
|
|
|
|
|
|
4.00% 3/1/42 |
|
900,000 |
|
|
833,706 |
|
|
4.00% 3/1/48 |
|
600,000 |
|
|
534,204 |
|
|
(St. Catherine University) |
|
|
|
|
|
|
|
|
Series A 5.00% 10/1/45 |
|
785,000 |
|
|
793,831 |
|
|
(St. John's University) |
|
|
|
|
|
|
|
4.00% 3/1/36 |
|
410,000 |
|
|
378,442 |
|
|
Series 8-I 5.00% 10/1/31 |
|
235,000 |
|
|
241,305 |
|
|
(Trustees of the Hamline |
|
|
|
|
|
|
|
University of Minnesota) |
|
|
|
|
|
|
|
Series A 4.00% 10/1/38 |
|
920,000 |
|
|
838,801 |
|
|
Series B 5.00% 10/1/47 |
|
1,055,000 |
|
|
1,000,636 |
|
|
(University of St. Thomas) |
|
|
|
|
|
|
|
|
Series A 4.00% 10/1/37 |
|
500,000 |
|
|
458,970 |
|
Montana Board of Regents of |
|
|
|
|
|
|
|
Higher Education |
|
|
|
|
|
|
|
(The University of Montana) |
|
|
|
|
|
|
|
|
5.25% 11/15/52 (AGM) |
|
1,000,000 |
|
|
1,067,580 |
|
Otsego, Montana Charter School |
|
|
|
|
|
|
|
Lease Revenue |
|
|
|
|
|
|
|
(Kaleidoscope Charter School) |
|
|
|
|
|
|
|
Series A 5.00% 9/1/34 |
|
230,000 |
|
|
212,828 |
5
Table of Contents
Schedule of investments
Delaware Investments® National Municipal Income Fund
| |
|
|
|
|
Principal |
|
|
|
|
|
|
|
|
amount° |
|
Value (US $) |
| Municipal Bonds (continued) |
|
|
|
|
|
| Education Revenue Bonds (continued) |
|
|
|
|
|
|
Otsego, Montana Charter School |
|
|
|
|
|
|
|
Lease Revenue |
|
|
|
|
|
|
|
(Kaleidoscope Charter School) |
|
|
|
|
|
|
|
Series A 5.00% 9/1/44 |
|
400,000 |
|
$ |
345,020 |
|
Philadelphia, Pennsylvania |
|
|
|
|
|
|
|
Authority for Industrial |
|
|
|
|
|
|
|
Development |
|
|
|
|
|
|
|
(First Philadelphia Preparatory |
|
|
|
|
|
|
|
|
Charter School Project) |
|
|
|
|
|
|
|
|
Series A 7.25% 6/15/43 |
|
370,000 |
|
|
386,594 |
|
Pima County, Arizona Industrial |
|
|
|
|
|
|
|
Development Authority |
|
|
|
|
|
|
|
(Edkey Charter Schools |
|
|
|
|
|
|
|
|
Project) |
|
|
|
|
|
|
|
|
144A 5.00% 7/1/49 # |
|
500,000 |
|
|
430,500 |
|
Regents of the University of |
|
|
|
|
|
|
|
California General Revenue |
|
|
|
|
|
|
|
Series AI 5.00% 5/15/32 |
|
1,000,000 |
|
|
1,011,040 |
|
St. Cloud, Minnesota Charter |
|
|
|
|
|
|
|
School Lease Revenue |
|
|
|
|
|
|
|
(Stride Academy Project) |
|
|
|
|
|
|
|
|
Series A 5.00% 4/1/46 |
|
375,000 |
|
|
254,284 |
|
St. Paul, Minnesota Housing & |
|
|
|
|
|
|
|
Redevelopment Authority |
|
|
|
|
|
|
|
Charter School Lease Revenue |
|
|
|
|
|
|
|
(Academia Cesar Chavez |
|
|
|
|
|
|
|
|
School Project) |
|
|
|
|
|
|
|
|
Series A 5.25% 7/1/50 |
|
825,000 |
|
|
672,400 |
|
|
(Great River School Project) |
|
|
|
|
|
|
|
Series A 144A 4.75% 7/1/29 # |
|
100,000 |
|
|
97,682 |
|
|
Series A 144A 5.50% 7/1/38 # |
|
240,000 |
|
|
239,227 |
|
|
(Twin Cities Academy Project) |
|
|
|
|
|
|
|
|
Series A 5.30% 7/1/45 |
|
630,000 |
|
|
584,426 |
|
St. Paul, Minnesota Housing & |
|
|
|
|
|
|
|
Redevelopment Authority |
|
|
|
|
|
|
|
Health Care Facilities Revenue |
|
|
|
|
|
|
|
(Amherst H. Wilder Foundation |
|
|
|
|
|
|
|
|
Project) |
|
|
|
|
|
|
|
|
Series A 5.00% 12/1/36 |
|
750,000 |
|
|
747,690 |
|
Westchester County, New York |
|
|
|
|
|
|
|
Local Development Revenue |
|
|
|
|
|
|
|
(Pace University) |
|
|
|
|
|
|
|
|
Series A 5.00% 5/1/34 |
|
1,500,000 |
|
|
1,491,765 |
|
|
|
|
|
|
|
|
39,551,784 |
| Electric Revenue Bonds – 8.62% |
|
|
|
|
|
|
Chaska, Minnesota Electric |
|
|
|
|
|
|
|
Revenue |
|
|
|
|
|
|
|
Series A 5.00% 10/1/28 |
|
445,000 |
|
|
466,204 |
|
Fort Collins, Colorado Electric |
|
|
|
|
|
|
|
Utility Enterprise Revenue |
|
|
|
|
|
|
|
Series A 5.00% 12/1/42 |
|
500,000 |
|
|
525,860 |
|
Long Island, New York Power |
|
|
|
|
|
|
|
Authority, New York Electric |
|
|
|
|
|
|
|
System Revenue |
|
|
|
|
|
|
|
5.00% 9/1/47 |
|
305,000 |
|
|
310,999 |
|
|
Series A 5.00% 9/1/44 |
|
250,000 |
|
|
252,965 |
|
|
Series B 5.00% 9/1/46 |
|
130,000 |
|
|
132,910 |
|
Loveland, Colorado Electric & |
|
|
|
|
|
|
|
Communications Enterprise |
|
|
|
|
|
|
|
Revenue |
|
|
|
|
|
|
|
Series A 5.00% 12/1/44 |
|
500,000 |
|
|
521,765 |
|
Minnesota Municipal Power |
|
|
|
|
|
|
|
Agency Electric Revenue |
|
|
|
|
|
|
|
5.00% 10/1/25 |
|
500,000 |
|
|
518,150 |
|
|
5.00% 10/1/26 |
|
500,000 |
|
|
517,955 |
|
|
5.00% 10/1/27 |
|
320,000 |
|
|
331,367 |
|
|
5.00% 10/1/47 |
|
1,210,000 |
|
|
1,233,147 |
|
Northern Minnesota Municipal |
|
|
|
|
|
|
|
Power Agency Electric System |
|
|
|
|
|
|
|
Revenue |
|
|
|
|
|
|
|
Series A 5.00% 1/1/26 |
|
100,000 |
|
|
100,430 |
|
|
Series A 5.00% 1/1/30 |
|
340,000 |
|
|
341,336 |
|
Philadelphia, Pennsylvania Gas |
|
|
|
|
|
|
|
Works Revenue |
|
|
|
|
|
|
|
(1998 General Ordinance) |
|
|
|
|
|
|
|
|
Fifteenth Series 5.00% |
|
|
|
|
|
|
|
|
8/1/47 |
|
500,000 |
|
|
504,070 |
|
Puerto Rico Electric Power |
|
|
|
|
|
|
|
Authority Revenue |
|
|
|
|
|
|
|
Series A 5.05% 7/1/42 ‡ |
|
320,000 |
|
|
237,600 |
|
|
Series AAA 5.25% 7/1/25 ‡ |
|
180,000 |
|
|
134,100 |
|
|
Series CCC 5.25% 7/1/27 ‡ |
|
1,450,000 |
|
|
1,080,250 |
|
|
Series WW 5.00% 7/1/28 ‡ |
|
1,400,000 |
|
|
1,043,000 |
|
|
Series WW 5.25% 7/1/33 ‡ |
|
95,000 |
|
|
70,775 |
|
|
Series WW 5.50% 7/1/17 ‡ |
|
210,000 |
|
|
156,187 |
|
|
Series WW 5.50% 7/1/19 ‡ |
|
160,000 |
|
|
119,000 |
|
|
Series XX 4.75% 7/1/26 ‡ |
|
190,000 |
|
|
140,838 |
|
|
Series XX 5.25% 7/1/40 ‡ |
|
2,305,000 |
|
|
1,717,225 |
|
|
Series XX 5.75% 7/1/36 ‡ |
|
680,000 |
|
|
511,700 |
|
|
Series ZZ 4.75% 7/1/27 ‡ |
|
155,000 |
|
|
114,894 |
|
|
Series ZZ 5.00% 7/1/19 ‡ |
|
280,000 |
|
|
207,200 |
|
|
Series ZZ 5.25% 7/1/24 ‡ |
|
250,000 |
|
|
186,250 |
|
Rochester, Minnesota Electric |
|
|
|
|
|
|
|
Utility Revenue |
|
|
|
|
|
|
|
Series A 5.00% 12/1/42 |
|
605,000 |
|
|
631,384 |
|
|
Series A 5.00% 12/1/47 |
|
985,000 |
|
|
1,022,587 |
6
Table of Contents
| |
|
|
|
|
Principal |
|
|
|
|
|
|
|
|
amount° |
|
Value (US $) |
| Municipal Bonds (continued) |
|
|
|
|
|
| Electric Revenue Bonds (continued) |
|
|
|
|
|
|
Southern Minnesota Municipal |
|
|
|
|
|
|
|
Power Agency Supply Revenue |
|
|
|
|
|
|
|
Series A 5.00% 1/1/41 |
|
240,000 |
|
$ |
250,195 |
|
|
Series A 5.00% 1/1/47 |
|
1,650,000 |
|
|
1,728,243 |
|
St. Paul, Minnesota Housing & |
|
|
|
|
|
|
|
Redevelopment Authority |
|
|
|
|
|
|
|
District Energy Revenue |
|
|
|
|
|
|
|
Series A 4.00% 10/1/33 |
|
285,000 |
|
|
280,913 |
|
|
Series B 4.00% 10/1/37 |
|
800,000 |
|
|
749,560 |
|
Western Minnesota Municipal |
|
|
|
|
|
|
|
Power Agency Supply Revenue |
|
|
|
|
|
|
|
Series A 5.00% 1/1/49 |
|
3,860,000 |
|
|
4,076,662 |
|
|
|
|
|
|
|
|
20,215,721 |
| Healthcare Revenue Bonds – 40.46% |
|
|
|
|
|
|
Alachua County, Florida Health |
|
|
|
|
|
|
|
Facilities Authority |
|
|
|
|
|
|
|
(Oak Hammock at the |
|
|
|
|
|
|
|
|
University of Florida, Inc. |
|
|
|
|
|
|
|
|
Project) |
|
|
|
|
|
|
|
|
4.00% 10/1/46 |
|
655,000 |
|
|
510,369 |
|
Allegheny County, Pennsylvania |
|
|
|
|
|
|
|
Hospital Development Authority |
|
|
|
|
|
|
|
(Allegheny Health Network |
|
|
|
|
|
|
|
|
Obligated Group Issue) |
|
|
|
|
|
|
|
|
Series A 4.00% 4/1/44 |
|
300,000 |
|
|
259,155 |
|
Anoka, Minnesota Healthcare & |
|
|
|
|
|
|
|
Housing Facilities Revenue |
|
|
|
|
|
|
|
(The Homestead at Anoka, Inc. |
|
|
|
|
|
|
|
|
Project) |
|
|
|
|
|
|
|
|
5.375% 11/1/34 |
|
610,000 |
|
|
579,555 |
|
Apple Valley, Minnesota Senior |
|
|
|
|
|
|
|
Housing Revenue |
|
|
|
|
|
|
|
(PHS Apple Valley Senior |
|
|
|
|
|
|
|
Housing, Inc. Orchard Path |
|
|
|
|
|
|
|
Project) |
|
|
|
|
|
|
|
4.50% 9/1/53 |
|
1,160,000 |
|
|
964,552 |
|
|
5.00% 9/1/58 |
|
1,605,000 |
|
|
1,431,772 |
|
Apple Valley, Minnesota Senior |
|
|
|
|
|
|
|
Living Revenue |
|
|
|
|
|
|
|
(Minnesota Senior Living LLC |
|
|
|
|
|
|
|
Project) |
|
|
|
|
|
|
|
Fourth Tier |
|
|
|
|
|
|
|
Series D 7.00% 1/1/37 |
|
685,000 |
|
|
468,787 |
|
|
Fourth Tier |
|
|
|
|
|
|
|
Series D 7.25% 1/1/52 |
|
1,035,000 |
|
|
648,489 |
|
|
Second Tier Series |
|
|
|
|
|
|
|
B-5 5.00% 1/1/47 |
|
715,000 |
|
|
412,784 |
|
Arizona Industrial Development |
|
|
|
|
|
|
|
Authority Hospital Revenue |
|
|
|
|
|
|
|
(Phoenix Children's Hospital) |
|
|
|
|
|
|
|
|
Series A 4.00% 2/1/50 |
|
4,015,000 |
|
|
3,379,747 |
|
Arizona Industrial Development |
|
|
|
|
|
|
|
Authority Revenue |
|
|
|
|
|
|
|
Series A 5.00% 5/15/56 |
|
500,000 |
|
|
433,195 |
|
|
(Children's National Prince |
|
|
|
|
|
|
|
|
George's County Regional |
|
|
|
|
|
|
|
|
Medical Center) |
|
|
|
|
|
|
|
|
Series A 4.00% 9/1/46 |
|
500,000 |
|
|
427,545 |
|
|
(Great Lakes Senior Living |
|
|
|
|
|
|
|
Communities LLC Project) |
|
|
|
|
|
|
|
Fourth Tier |
|
|
|
|
|
|
|
Series D-2 144A 7.75% 1/1/54 # |
|
50,000 |
|
|
30,545 |
|
|
Second Tier |
|
|
|
|
|
|
|
Series B-5 5.00% 1/1/49 |
|
70,000 |
|
|
40,960 |
|
Bethel, Minnesota Housing & |
|
|
|
|
|
|
|
Healthcare Facilities Revenue |
|
|
|
|
|
|
|
(Benedictine Health System - |
|
|
|
|
|
|
|
|
St. Peter Communities |
|
|
|
|
|
|
|
|
Project) |
|
|
|
|
|
|
|
|
Series A 5.50% 12/1/48 |
|
500,000 |
|
|
405,940 |
|
Birmingham, Alabama Special |
|
|
|
|
|
|
|
Care Facilities Financing |
|
|
|
|
|
|
|
Authority |
|
|
|
|
|
|
|
(Methodist Home for the Aging) |
|
|
|
|
|
|
|
|
Series 2015-1 6.00% |
|
|
|
|
|
|
|
|
6/1/50 |
|
500,000 |
|
|
442,480 |
|
Brookhaven, Georgia |
|
|
|
|
|
|
|
Development Authority |
|
|
|
|
|
|
|
Revenue |
|
|
|
|
|
|
|
(Children's Healthcare of |
|
|
|
|
|
|
|
|
Atlanta) |
|
|
|
|
|
|
|
|
Series A 4.00% 7/1/49 |
|
30,000 |
|
|
26,064 |
|
California Health Facilities |
|
|
|
|
|
|
|
Financing Authority Revenue |
|
|
|
|
|
|
|
(Kaiser Permanente) |
|
|
|
|
|
|
|
|
Subordinate Series |
|
|
|
|
|
|
|
|
A-2 5.00% 11/1/47 |
|
400,000 |
|
|
418,932 |
|
Center City, Minnesota Health |
|
|
|
|
|
|
|
Care Facilities Revenue |
|
|
|
|
|
|
|
(Hazelden Betty Ford |
|
|
|
|
|
|
|
|
Foundation Project) |
|
|
|
|
|
|
|
|
5.00% 11/1/27 |
|
500,000 |
|
|
510,845 |
7
Table of Contents
Schedule of investments
Delaware Investments® National Municipal Income Fund
| |
|
|
|
|
Principal |
|
|
|
|
|
|
|
|
amount° |
|
Value (US $) |
| Municipal Bonds (continued) |
|
|
|
|
|
| Healthcare Revenue Bonds (continued) |
|
|
|
|
|
|
City of Bethel, Minnesota |
|
|
|
|
|
|
|
(The Lodge at The Lakes at |
|
|
|
|
|
|
|
|
Stillwater Project) |
|
|
|
|
|
|
|
|
5.25% 6/1/58 |
|
1,775,000 |
|
$ |
1,464,180 |
|
Colorado Health Facilities |
|
|
|
|
|
|
|
Authority Revenue |
|
|
|
|
|
|
|
(Aberdeen Ridge) |
|
|
|
|
|
|
|
|
Series A 5.00% 5/15/49 |
|
500,000 |
|
|
396,090 |
|
|
(AdventHealth Obligated |
|
|
|
|
|
|
|
Group) |
|
|
|
|
|
|
|
Series A 3.00% 11/15/51 |
|
500,000 |
|
|
339,345 |
|
|
Series A 4.00% 11/15/43 |
|
3,290,000 |
|
|
2,931,653 |
|
|
(Adventist Health System/ |
|
|
|
|
|
|
|
|
Sunbelt Obligated Group) |
|
|
|
|
|
|
|
|
Series A 5.00% 11/15/48 |
|
1,000,000 |
|
|
1,022,040 |
|
|
(Bethesda Project) |
|
|
|
|
|
|
|
|
Series A-1 5.00% 9/15/48 |
|
750,000 |
|
|
696,517 |
|
|
(Cappella of Grand Junction |
|
|
|
|
|
|
|
|
Project) |
|
|
|
|
|
|
|
|
144A 5.00% 12/1/54 # |
|
695,000 |
|
|
447,427 |
|
|
(CommonSpirit Health) |
|
|
|
|
|
|
|
Series A-1 4.00% 8/1/37 |
|
550,000 |
|
|
495,523 |
|
|
Series A-2 4.00% 8/1/49 |
|
2,250,000 |
|
|
1,803,982 |
|
|
Series A-2 5.00% 8/1/38 |
|
1,500,000 |
|
|
1,492,335 |
|
|
Series A-2 5.00% 8/1/44 |
|
290,000 |
|
|
281,373 |
|
|
(Covenant Living Communities |
|
|
|
|
|
|
|
|
and Services) |
|
|
|
|
|
|
|
|
Series A 4.00% 12/1/40 |
|
750,000 |
|
|
619,733 |
|
|
(Covenant Retirement |
|
|
|
|
|
|
|
|
Communities, Inc.) |
|
|
|
|
|
|
|
|
Series A 5.00% 12/1/35 |
|
1,000,000 |
|
|
992,500 |
|
|
(Mental Health Center of |
|
|
|
|
|
|
|
|
Denver Project) |
|
|
|
|
|
|
|
|
Series A 5.75% 2/1/44 |
|
1,500,000 |
|
|
1,514,340 |
|
|
(National Jewish Health |
|
|
|
|
|
|
|
|
Project) |
|
|
|
|
|
|
|
|
5.00% 1/1/27 |
|
500,000 |
|
|
500,285 |
|
|
(Sanford) |
|
|
|
|
|
|
|
5.00% 1/15/35 |
|
1,250,000 |
|
|
1,267,475 |
|
|
Series A 5.00% 11/1/39 |
|
1,465,000 |
|
|
1,472,310 |
|
|
(Sunny Vista Living Center |
|
|
|
|
|
|
|
|
Project) |
|
|
|
|
|
|
|
|
Series A 144A 6.25% |
|
|
|
|
|
|
|
|
12/1/50 # |
|
505,000 |
|
|
369,261 |
|
Crookston, Minnesota Health Care |
|
|
|
|
|
|
|
Facilities Revenue |
|
|
|
|
|
|
|
(Riverview Health Project) |
|
|
|
|
|
|
|
|
5.00% 5/1/51 |
|
1,390,000 |
|
|
1,213,595 |
|
Cumberland County, Pennsylvania |
|
|
|
|
|
|
|
Municipal Authority Revenue |
|
|
|
|
|
|
|
(Penn State Health) |
|
|
|
|
|
|
|
|
Series A 4.00% 11/1/44 |
|
1,000,000 |
|
|
865,670 |
|
Cuyahoga County, Ohio Hospital |
|
|
|
|
|
|
|
Revenue |
|
|
|
|
|
|
|
(The Metrohealth System) |
|
|
|
|
|
|
|
|
5.50% 2/15/57 |
|
1,000,000 |
|
|
1,010,190 |
|
Deephaven, Minnesota Housing & |
|
|
|
|
|
|
|
Healthcare Facility Revenue |
|
|
|
|
|
|
|
(St. Therese Senior Living |
|
|
|
|
|
|
|
Project) |
|
|
|
|
|
|
|
Series A 5.00% 4/1/38 |
|
280,000 |
|
|
246,593 |
|
|
Series A 5.00% 4/1/40 |
|
270,000 |
|
|
233,882 |
|
Denver, Colorado Health & |
|
|
|
|
|
|
|
Hospital Authority Healthcare |
|
|
|
|
|
|
|
Revenue |
|
|
|
|
|
|
|
Series A 4.00% 12/1/40 |
|
500,000 |
|
|
413,730 |
|
Duluth, Minnesota Economic |
|
|
|
|
|
|
|
Development Authority |
|
|
|
|
|
|
|
(Essentia Health Obligated |
|
|
|
|
|
|
|
|
Group) |
|
|
|
|
|
|
|
|
Series A 5.00% 2/15/48 |
|
810,000 |
|
|
800,815 |
|
Escambia County, Florida Health |
|
|
|
|
|
|
|
Facilities Authority Revenue |
|
|
|
|
|
|
|
(Baptist Health Care |
|
|
|
|
|
|
|
Corporation Obligated Group) |
|
|
|
|
|
|
|
Series A 4.00% 8/15/45 |
|
390,000 |
|
|
311,415 |
|
|
Series A 4.00% 8/15/50 |
|
1,150,000 |
|
|
892,711 |
|
Hayward, Minnesota Health Care |
|
|
|
|
|
|
|
Facilities Revenue |
|
|
|
|
|
|
|
(American Baptist Homes of the |
|
|
|
|
|
|
|
|
Midwest Obligated Group) |
|
|
|
|
|
|
|
|
5.75% 2/1/44 |
|
500,000 |
|
|
411,200 |
|
|
(St. John's Lutheran Home of |
|
|
|
|
|
|
|
|
Albert Lea Project) |
|
|
|
|
|
|
|
|
Series A 5.375% 10/1/44 |
|
125,000 |
|
|
86,383 |
|
Health & Educational Facilities |
|
|
|
|
|
|
|
Authority of the State of |
|
|
|
|
|
|
|
Missouri |
|
|
|
|
|
|
|
(Mercy Health) |
|
|
|
|
|
|
|
|
4.00% 6/1/53 |
|
4,810,000 |
|
|
4,008,077 |
|
Henrico County, Virginia Economic |
|
|
|
|
|
|
|
Development Authority |
|
|
|
|
|
|
|
(Westminister Canterbury |
|
|
|
|
|
|
|
|
Richmond) |
|
|
|
|
|
|
|
|
Series A 5.00% 10/1/52 |
|
1,200,000 |
|
|
1,201,512 |
8
Table of Contents
|
|
|
|
Principal |
|
|
|
| |
|
|
|
amount° |
|
Value (US $) |
| Municipal Bonds (continued) |
|
|
|
|
|
| Healthcare Revenue Bonds (continued) |
|
|
|
|
|
|
Hillsborough County, Florida |
|
|
|
|
|
|
|
Industrial Development |
|
|
|
|
|
|
|
Authority Hospital Revenue |
|
|
|
|
|
|
|
Bonds |
|
|
|
|
|
|
|
(Tampa General Hospital |
|
|
|
|
|
|
|
Project) |
|
|
|
|
|
|
|
Series A 3.50% 8/1/55 |
|
6,875,000 |
|
$ |
4,819,581 |
|
Illinois Finance Authority Revenue |
|
|
|
|
|
|
|
(NorthShore - Edward-Elmhurst |
|
|
|
|
|
|
|
Health Credit Group) |
|
|
|
|
|
|
|
Series A 5.00% 8/15/47 |
|
4,355,000 |
|
|
4,359,007 |
|
Kalispell, Montana Housing & |
|
|
|
|
|
|
|
Healthcare Facilities Revenue |
|
|
|
|
|
|
|
(Immanuel Lutheran |
|
|
|
|
|
|
|
Corporation Project) |
|
|
|
|
|
|
|
Series A 5.25% 5/15/37 |
|
700,000 |
|
|
657,104 |
|
Lancaster County, Pennsylvania |
|
|
|
|
|
|
|
Hospital Authority Revenue |
|
|
|
|
|
|
|
(Penn State Health) |
|
|
|
|
|
|
|
5.00% 11/1/51 |
|
1,345,000 |
|
|
1,329,788 |
|
Maple Grove, Minnesota Health |
|
|
|
|
|
|
|
Care Facilities Revenue |
|
|
|
|
|
|
|
(Maple Grove Hospital |
|
|
|
|
|
|
|
Corporation) |
|
|
|
|
|
|
|
4.00% 5/1/37 |
|
1,000,000 |
|
|
855,740 |
|
|
(North Memorial Health Care) |
|
|
|
|
|
|
|
5.00% 9/1/30 |
|
865,000 |
|
|
879,618 |
|
Maple Plain, Minnesota Senior |
|
|
|
|
|
|
|
Housing & Health Care |
|
|
|
|
|
|
|
Revenue |
|
|
|
|
|
|
|
(Haven Homes, Inc. Project) |
|
|
|
|
|
|
|
5.00% 7/1/54 |
|
1,500,000 |
|
|
1,247,730 |
|
Maryland Health & Higher |
|
|
|
|
|
|
|
Educational Facilities Authority |
|
|
|
|
|
|
|
(University of Maryland Medical |
|
|
|
|
|
|
|
System Issue) |
|
|
|
|
|
|
|
Series D 4.00% 7/1/48 |
|
255,000 |
|
|
216,090 |
|
Miami-Dade County, Florida |
|
|
|
|
|
|
|
Health Facilities Authority |
|
|
|
|
|
|
|
Revenue |
|
|
|
|
|
|
|
(Nicklaus Children's Hospital |
|
|
|
|
|
|
|
Project) |
|
|
|
|
|
|
|
5.00% 8/1/47 |
|
200,000 |
|
|
196,988 |
|
Michigan Finance Authority |
|
|
|
|
|
|
|
Revenue |
|
|
|
|
|
|
|
(Beaumont Health Credit |
|
|
|
|
|
|
|
Group) |
|
|
|
|
|
|
|
Series A 5.00% 11/1/44 |
|
1,000,000 |
|
|
1,001,380 |
|
Minneapolis Health Care System |
|
|
|
|
|
|
|
Revenue |
|
|
|
|
|
|
|
(Fairview Health Services) |
|
|
|
|
|
|
|
Series A 4.00% 11/15/48 |
|
2,855,000 |
|
|
2,402,968 |
|
|
Series A 5.00% 11/15/33 |
|
500,000 |
|
|
506,625 |
|
|
Series A 5.00% 11/15/34 |
|
500,000 |
|
|
505,865 |
|
|
Series A 5.00% 11/15/49 |
|
2,000,000 |
|
|
1,974,080 |
|
Minneapolis Senior Housing & |
|
|
|
|
|
|
|
Healthcare Revenue |
|
|
|
|
|
|
|
(Ecumen-Abiitan Mill City |
|
|
|
|
|
|
|
Project) |
|
|
|
|
|
|
|
5.00% 11/1/35 |
|
220,000 |
|
|
200,435 |
|
|
5.25% 11/1/45 |
|
850,000 |
|
|
763,045 |
|
|
5.375% 11/1/50 |
|
200,000 |
|
|
180,370 |
|
Monroe County, New York |
|
|
|
|
|
|
|
Industrial Development |
|
|
|
|
|
|
|
Revenue |
|
|
|
|
|
|
|
(Rochester Regional Health |
|
|
|
|
|
|
|
Project) |
|
|
|
|
|
|
|
Series A 4.00% 12/1/46 |
|
440,000 |
|
|
344,564 |
|
Montgomery County, |
|
|
|
|
|
|
|
Pennsylvania Higher Education |
|
|
|
|
|
|
|
and Health Authority |
|
|
|
|
|
|
|
(Thomas Jefferson University) |
|
|
|
|
|
|
|
Series A 4.00% 9/1/49 |
|
750,000 |
|
|
633,982 |
|
|
Series B 4.00% 5/1/47 |
|
1,750,000 |
|
|
1,490,545 |
|
|
Series B 4.00% 5/1/56 |
|
1,000,000 |
|
|
818,600 |
|
|
Series B 5.00% 5/1/57 |
|
3,515,000 |
|
|
3,444,700 |
|
Moon, Pennsylvania Industrial |
|
|
|
|
|
|
|
Development Authority |
|
|
|
|
|
|
|
Revenue |
|
|
|
|
|
|
|
(Baptist Homes Society) |
|
|
|
|
|
|
|
6.125% 7/1/50 |
|
750,000 |
|
|
632,505 |
|
New Hope, Texas Cultural |
|
|
|
|
|
|
|
Education Facilities |
|
|
|
|
|
|
|
(Cardinal Bay Inc. - Village on |
|
|
|
|
|
|
|
the Park/Carriage Inn |
|
|
|
|
|
|
|
Project) |
|
|
|
|
|
|
|
Series A-1 5.00% 7/1/51 ‡ |
|
135,000 |
|
|
94,500 |
|
|
(Cardinal Bay Inc.) |
|
|
|
|
|
|
|
Series B 4.75% 7/1/51 |
|
160,000 |
|
|
88,000 |
9
Table of Contents
Schedule of investments
Delaware Investments® National Municipal Income Fund
|
|
|
|
Principal |
|
|
|
| |
|
|
|
amount° |
|
Value (US $) |
| Municipal Bonds (continued) |
|
|
|
|
|
| Healthcare Revenue Bonds (continued) |
|
|
|
|
|
|
New Jersey Health Care Facilities |
|
|
|
|
|
|
|
Financing Authority Revenue |
|
|
|
|
|
|
|
(Valley Health System |
|
|
|
|
|
|
|
Obligated Group Issue) |
|
|
|
|
|
|
|
4.00% 7/1/44 |
|
475,000 |
|
$ |
408,377 |
|
New York State Dormitory |
|
|
|
|
|
|
|
Authority Revenue Non-State |
|
|
|
|
|
|
|
Supported Debt |
|
|
|
|
|
|
|
(Northwell Healthcare Inc. |
|
|
|
|
|
|
|
Obligated Group) |
|
|
|
|
|
|
|
Series A 4.00% 7/1/53 |
|
355,000 |
|
|
298,860 |
|
|
(NYU Langone Hospitals |
|
|
|
|
|
|
|
Obligated Group) |
|
|
|
|
|
|
|
Series A 5.00% 5/1/52 |
|
2,000,000 |
|
|
1,980,460 |
|
Oregon State Facilities Authority |
|
|
|
|
|
|
|
Revenue |
|
|
|
|
|
|
|
(Peacehealth Project) |
|
|
|
|
|
|
|
Series A 5.00% 11/15/29 |
|
500,000 |
|
|
506,680 |
|
Palomar Health, California |
|
|
|
|
|
|
|
5.00% 11/1/39 |
|
130,000 |
|
|
128,597 |
|
Pennsylvania Higher Educational |
|
|
|
|
|
|
|
Facilities Authority Revenue |
|
|
|
|
|
|
|
(University of Pennsylvania |
|
|
|
|
|
|
|
Health System) |
|
|
|
|
|
|
|
Series A 4.00% 8/15/43 |
|
1,905,000 |
|
|
1,693,297 |
|
Rochester, Minnesota Health Care |
|
|
|
|
|
|
|
& Housing Facility Revenue |
|
|
|
|
|
|
|
(The Homestead at |
|
|
|
|
|
|
|
Rochester Inc. Project) |
|
|
|
|
|
|
|
Series A 6.875% 12/1/48 |
|
1,220,000 |
|
|
1,233,261 |
|
Rochester, Minnesota Health Care |
|
|
|
|
|
|
|
Facilities Revenue |
|
|
|
|
|
|
|
(Mayo Clinic) |
|
|
|
|
|
|
|
5.00% 11/15/57 |
|
2,175,000 |
|
|
2,247,493 |
|
Sartell, Minnesota Health Care & |
|
|
|
|
|
|
|
Housing Facilities Revenue |
|
|
|
|
|
|
|
(Country Manor Campus LLC |
|
|
|
|
|
|
|
Project) |
|
|
|
|
|
|
|
5.30% 9/1/37 |
|
600,000 |
|
|
560,076 |
|
Shakopee, Minnesota Health Care |
|
|
|
|
|
|
|
Facilities Revenue |
|
|
|
|
|
|
|
(St. Francis Regional Medical |
|
|
|
|
|
|
|
Center) |
|
|
|
|
|
|
|
4.00% 9/1/31 |
|
205,000 |
|
|
191,845 |
|
|
5.00% 9/1/34 |
|
165,000 |
|
|
165,672 |
|
St. Cloud, Minnesota Health Care |
|
|
|
|
|
|
|
Revenue |
|
|
|
|
|
|
|
(Centracare Health System) |
|
|
|
|
|
|
|
4.00% 5/1/49 |
|
1,585,000 |
|
|
1,338,501 |
|
|
5.00% 5/1/48 |
|
2,250,000 |
|
|
2,240,392 |
|
|
Series A 5.00% 5/1/46 |
|
2,375,000 |
|
|
2,363,790 |
|
St. Paul, Minnesota Housing & |
|
|
|
|
|
|
|
Redevelopment Authority |
|
|
|
|
|
|
|
Health Care Facilities Revenue |
|
|
|
|
|
|
|
(Fairview Health Services) |
|
|
|
|
|
|
|
Series A 4.00% 11/15/43 |
|
905,000 |
|
|
782,934 |
|
|
Series A 5.00% 11/15/47 |
|
680,000 |
|
|
672,554 |
|
|
(HealthPartners Obligation |
|
|
|
|
|
|
|
Group Project) |
|
|
|
|
|
|
|
Series A 5.00% 7/1/29 |
|
1,000,000 |
|
|
1,027,140 |
|
|
Series A 5.00% 7/1/32 |
|
600,000 |
|
|
611,634 |
|
St. Paul, Minnesota Housing & |
|
|
|
|
|
|
|
Redevelopment Authority |
|
|
|
|
|
|
|
Senior Housing & Health Care |
|
|
|
|
|
|
|
Revenue |
|
|
|
|
|
|
|
(Episcopal Homes Project) |
|
|
|
|
|
|
|
5.125% 5/1/48 |
|
1,200,000 |
|
|
1,013,904 |
|
Tarrant County, Texas Cultural |
|
|
|
|
|
|
|
Education Facilities Finance |
|
|
|
|
|
|
|
(Buckner Senior Living - |
|
|
|
|
|
|
|
Ventana Project) |
|
|
|
|
|
|
|
Series A 6.75% 11/15/47 |
|
250,000 |
|
|
252,038 |
|
The Hospital Facility Authority Of |
|
|
|
|
|
|
|
Union County, Oregon |
|
|
|
|
|
|
|
Revenue Bonds |
|
|
|
|
|
|
|
(Grande Ronde Hospital |
|
|
|
|
|
|
|
Project) |
|
|
|
|
|
|
|
5.00% 7/1/39 |
|
1,665,000 |
|
|
1,617,964 |
|
|
5.00% 7/1/40 |
|
750,000 |
|
|
724,507 |
|
Westminster, Maryland |
|
|
|
|
|
|
|
(The Lutheran Village Millers |
|
|
|
|
|
|
|
Grant Inc.) |
|
|
|
|
|
|
|
Series A 6.00% 7/1/34 |
|
500,000 |
|
|
506,945 |
|
Wisconsin Health & Educational |
|
|
|
|
|
|
|
Facilities Authority Senior Living |
|
|
|
|
|
|
|
Revenue |
|
|
|
|
|
|
|
(Covenant Communities, Inc. |
|
|
|
|
|
|
|
Project) |
|
|
|
|
|
|
|
Second Tier Series |
|
|
|
|
|
|
|
B-5 5.00% 7/1/53 |
|
1,000,000 |
|
|
716,780 |
10
Table of Contents
|
|
|
|
Principal |
|
|
|
| |
|
|
|
amount° |
|
Value (US $) |
| Municipal Bonds (continued) |
|
|
|
|
|
| Healthcare Revenue Bonds (continued) |
|
|
|
|
|
|
Yavapai County, Arizona Industrial |
|
|
|
|
|
|
|
Development Authority |
|
|
|
|
|
|
|
Revenue |
|
|
|
|
|
|
|
(Yavapai Regional Medical |
|
|
|
|
|
|
|
Center) |
|
|
|
|
|
|
|
Series A 5.00% 8/1/28 |
|
720,000 |
|
$ |
724,601 |
|
|
|
|
|
|
|
94,845,970 |
| Housing Revenue Bonds – 0.83% |
|
|
|
|
|
|
Minnesota Housing Finance |
|
|
|
|
|
|
|
Agency State Appropriated |
|
|
|
|
|
|
|
(Housing Infrastructure) |
|
|
|
|
|
|
|
Series C 5.00% 8/1/33 |
|
1,390,000 |
|
|
1,422,498 |
|
Northwest, Minnesota |
|
|
|
|
|
|
|
Multi-County Housing & |
|
|
|
|
|
|
|
Redevelopment Authority |
|
|
|
|
|
|
|
(Pooled Housing Program) |
|
|
|
|
|
|
|
5.50% 7/1/45 |
|
560,000 |
|
|
516,320 |
|
|
|
|
|
|
|
1,938,818 |
| Lease Revenue Bonds – 9.26% |
|
|
|
|
|
|
Denver, Colorado Health & |
|
|
|
|
|
|
|
Hospital Authority |
|
|
|
|
|
|
|
(550 Acoma, Inc.) |
|
|
|
|
|
|
|
4.00% 12/1/38 |
|
500,000 |
|
|
427,865 |
|
Kansas City, Missouri Industrial |
|
|
|
|
|
|
|
Development Authority |
|
|
|
|
|
|
|
(Kansas City International |
|
|
|
|
|
|
|
Airport Terminal |
|
|
|
|
|
|
|
Modernization Project) |
|
|
|
|
|
|
|
Series B 5.00% |
|
|
|
|
|
|
|
3/1/49 (AGM) (AMT) |
|
1,000,000 |
|
|
991,520 |
|
Metropolitan Pier & |
|
|
|
|
|
|
|
Exposition Authority Illinois |
|
|
|
|
|
|
|
Revenue |
|
|
|
|
|
|
|
(McCormick Place Expansion) |
|
|
|
|
|
|
|
Series A 4.00% 6/15/52 |
|
1,375,000 |
|
|
1,045,344 |
|
|
Series A 5.00% 6/15/50 |
|
290,000 |
|
|
271,573 |
|
|
Series A 5.00% 6/15/50 (BAM) |
|
675,000 |
|
|
632,111 |
|
|
Series B 1.046% 12/15/54 (BAM) ^ |
|
3,535,000 |
|
|
635,027 |
|
Minnesota State General Fund |
|
|
|
|
|
|
|
Revenue Appropriation |
|
|
|
|
|
|
|
Series A 5.00% 6/1/32 |
|
780,000 |
|
|
784,906 |
|
|
Series A 5.00% 6/1/38 |
|
5,500,000 |
|
|
5,524,970 |
|
|
Series A 5.00% 6/1/43 |
|
1,750,000 |
|
|
1,756,248 |
|
New Jersey Economic |
|
|
|
|
|
|
|
Development Authority |
|
|
|
|
|
|
|
(NJ Transit Transportation |
|
|
|
|
|
|
|
Project) |
|
|
|
|
|
|
|
Series A 4.00% 11/1/44 |
|
400,000 |
|
|
339,816 |
|
New Jersey State Transportation |
|
|
|
|
|
|
|
Trust Fund Authority Revenue |
|
|
|
|
|
|
|
Series BB 4.00% 6/15/46 |
|
1,000,000 |
|
|
841,910 |
|
|
(Capital Appreciation) |
|
|
|
|
|
|
|
Series A 3.114% |
|
|
|
|
|
|
|
12/15/39 (BAM) ^ |
|
5,290,000 |
|
|
2,215,663 |
|
New York Liberty Development |
|
|
|
|
|
|
|
Revenue |
|
|
|
|
|
|
|
(4 World Trade Center - Green |
|
|
|
|
|
|
|
Bond) |
|
|
|
|
|
|
|
Series A 3.00% |
|
|
|
|
|
|
|
11/15/51 (BAM) |
|
3,640,000 |
|
|
2,434,760 |
|
State of Colorado Department of |
|
|
|
|
|
|
|
Transportation Certificates of |
|
|
|
|
|
|
|
Participation |
|
|
|
|
|
|
|
5.00% 6/15/34 |
|
340,000 |
|
|
354,573 |
|
|
5.00% 6/15/36 |
|
545,000 |
|
|
567,214 |
|
Virginia College Building Authority |
|
|
|
|
|
|
|
(21st Century College and |
|
|
|
|
|
|
|
Equipment Programs) |
|
|
|
|
|
|
|
Series A 5.00% 2/1/29 |
|
1,000,000 |
|
|
1,096,350 |
|
Virginia Commonwealth |
|
|
|
|
|
|
|
Transportation Board |
|
|
|
|
|
|
|
(U.S. Route 58 Corridor |
|
|
|
|
|
|
|
Development Program) |
|
|
|
|
|
|
|
4.00% 5/15/47 |
|
2,000,000 |
|
|
1,790,260 |
|
|
|
|
|
|
|
21,710,110 |
| Local General Obligation Bonds – 6.58% |
|
|
|
|
|
|
Arapahoe County, Colorado |
|
|
|
|
|
|
|
School District No. 6 |
|
|
|
|
|
|
|
(Littleton Public Schools) |
|
|
|
|
|
|
|
Series A 5.50% 12/1/38 |
|
650,000 |
|
|
710,255 |
|
Beacon Point, Colorado |
|
|
|
|
|
|
|
Metropolitan District |
|
|
|
|
|
|
|
5.00% 12/1/30 (AGM) |
|
600,000 |
|
|
623,262 |
|
Boulder Valley, Colorado School |
|
|
|
|
|
|
|
District No RE-2 |
|
|
|
|
|
|
|
Series A 4.00% 12/1/48 |
|
500,000 |
|
|
441,560 |
|
Brainerd, Minnesota Independent |
|
|
|
|
|
|
|
School District No. 181 |
|
|
|
|
|
|
|
(Brainerd Public Schools) |
|
|
|
|
|
|
|
Series A 4.00% 2/1/38 |
|
1,500,000 |
|
|
1,473,495 |
11
Table of Contents
Schedule of investments
Delaware Investments® National Municipal Income Fund
|
|
|
|
Principal |
|
|
|
| |
|
|
|
amount° |
|
Value (US $) |
| Municipal Bonds (continued) |
|
|
|
|
|
| Local General Obligation Bonds (continued) |
|
|
|
|
|
|
Brainerd, Minnesota Independent |
|
|
|
|
|
|
|
School District No. 181 |
|
|
|
|
|
|
|
(Brainerd Public Schools) |
|
|
|
|
|
|
|
Series A 4.00% 2/1/43 |
|
1,500,000 |
|
$ |
1,408,035 |
|
Chicago, Illinois |
|
|
|
|
|
|
|
Series A 5.50% 1/1/34 |
|
225,000 |
|
|
225,918 |
|
|
Series C 5.00% 1/1/38 |
|
500,000 |
|
|
497,130 |
|
Chicago, Illinois Board of |
|
|
|
|
|
|
|
Education Dedicated Capital |
|
|
|
|
|
|
|
Improvement |
|
|
|
|
|
|
|
5.00% 4/1/42 |
|
205,000 |
|
|
205,670 |
|
|
5.00% 4/1/46 |
|
210,000 |
|
|
209,463 |
|
Grand River Hospital District |
|
|
|
|
|
|
|
Garfield and Mesa Counties, |
|
|
|
|
|
|
|
Colorado |
|
|
|
|
|
|
|
5.25% 12/1/37 (AGM) |
|
675,000 |
|
|
687,008 |
|
Jefferson County, Colorado |
|
|
|
|
|
|
|
School District No. R-1 |
|
|
|
|
|
|
|
5.25% 12/15/24 |
|
750,000 |
|
|
782,985 |
|
Mounds View, Minnesota |
|
|
|
|
|
|
|
Independent School District No. |
|
|
|
|
|
|
|
621 |
|
|
|
|
|
|
|
(Minnesota School District |
|
|
|
|
|
|
|
Credit Enhancement |
|
|
|
|
|
|
|
Program) |
|
|
|
|
|
|
|
Series A 4.00% 2/1/43 |
|
2,000,000 |
|
|
1,859,680 |
|
New York General Obligation |
|
|
|
|
|
|
|
Bonds |
|
|
|
|
|
|
|
Subordinate |
|
|
|
|
|
|
|
Series A-1 5.00% 8/1/27 |
|
1,000,000 |
|
|
1,075,090 |
|
|
Subordinate |
|
|
|
|
|
|
|
Series F-1 5.00% 4/1/45 |
|
3,745,000 |
|
|
3,831,210 |
|
Weld County, Colorado School |
|
|
|
|
|
|
|
District No. RE-3(J) |
|
|
|
|
|
|
|
(Weld and Adams Counties) |
|
|
|
|
|
|
|
5.00% 12/15/34 (BAM) |
|
1,000,000 |
|
|
1,045,540 |
|
Weld County, Colorado School |
|
|
|
|
|
|
|
District No. RE-8 |
|
|
|
|
|
|
|
(Weld County and the City and |
|
|
|
|
|
|
|
County of Broomfield) |
|
|
|
|
|
|
|
5.00% 12/1/32 |
|
340,000 |
|
|
357,632 |
|
|
|
|
|
|
|
15,433,933 |
| Pre-Refunded/Escrowed to Maturity Bonds – 5.09% |
|
|
|
|
|
|
Central Platte Valley Metropolitan |
|
|
|
|
|
|
|
District Denver, Colorado |
|
|
|
|
|
|
|
5.00% 12/1/43-23 § |
|
375,000 |
|
|
381,233 |
|
Chicago, Illinois O'Hare |
|
|
|
|
|
|
|
International Airport Revenue |
|
|
|
|
|
|
|
(Senior Lien) |
|
|
|
|
|
|
|
Series D 5.25% 1/1/34-23 § |
|
1,000,000 |
|
|
1,005,110 |
|
Colorado Educational & Cultural |
|
|
|
|
|
|
|
Facilities Authority Revenue |
|
|
|
|
|
|
|
(Charter School - Atlas |
|
|
|
|
|
|
|
Preparatory School Project) |
|
|
|
|
|
|
|
144A 5.25% 4/1/45-25 #, § |
|
700,000 |
|
|
730,604 |
|
Colorado Health Facilities |
|
|
|
|
|
|
|
Authority Revenue |
|
|
|
|
|
|
|
(Covenant Retirement |
|
|
|
|
|
|
|
Communities, Inc.) |
|
|
|
|
|
|
|
Series A 5.75% |
|
|
|
|
|
|
|
12/1/36-23 § |
|
1,000,000 |
|
|
1,029,650 |
|
Commerce City, Colorado Sales |
|
|
|
|
|
|
|
and Use Tax Revenue |
|
|
|
|
|
|
|
5.00% 8/1/44-24 (AGM) § |
|
1,000,000 |
|
|
1,030,890 |
|
Idaho State Building Authority |
|
|
|
|
|
|
|
(State Office Campus Project) |
|
|
|
|
|
|
|
Series A 4.00% 9/1/48-27 § |
|
1,000,000 |
|
|
1,029,910 |
|
New Hope, Texas Cultural |
|
|
|
|
|
|
|
Education Facilities |
|
|
|
|
|
|
|
(CHF - Collegiate Housing |
|
|
|
|
|
|
|
Stephenville II, LLC - |
|
|
|
|
|
|
|
Tarleton State University |
|
|
|
|
|
|
|
Project) |
|
|
|
|
|
|
|
Series A 5.00% 4/1/34-24 § |
|
1,000,000 |
|
|
1,024,100 |
|
New Jersey Economic |
|
|
|
|
|
|
|
Development Authority |
|
|
|
|
|
|
|
Series WW 5.25% |
|
|
|
|
|
|
|
6/15/30-25 § |
|
1,000,000 |
|
|
1,050,990 |
|
New Jersey Health Care Facilities |
|
|
|
|
|
|
|
Financing Authority Revenue |
|
|
|
|
|
|
|
(St. Peter's University Hospital |
|
|
|
|
|
|
|
Obligated Group Issue) |
|
|
|
|
|
|
|
6.25% 7/1/35 |
|
300,000 |
|
|
300,447 |
|
Philadelphia, Pennsylvania Water |
|
|
|
|
|
|
|
& Wastewater Revenue |
|
|
|
|
|
|
|
Series A 5.00% 7/1/45-24 § |
|
500,000 |
|
|
515,635 |
|
St. Paul, Minnesota Housing & |
|
|
|
|
|
|
|
Redevelopment Authority |
|
|
|
|
|
|
|
Hospital Facility |
|
|
|
|
|
|
|
(Healtheast Care System |
|
|
|
|
|
|
|
Project) |
|
|
|
|
|
|
|
Series A 5.00% 11/15/29-25 § |
|
395,000 |
|
|
412,735 |
|
|
Series A 5.00% 11/15/30-25 § |
|
290,000 |
|
|
303,021 |
12
Table of Contents
|
|
|
|
Principal |
|
|
|
| |
|
|
|
amount° |
|
Value (US $) |
| Municipal Bonds (continued) |
|
|
|
|
|
| Pre-Refunded/Escrowed to Maturity Bonds (continued) |
|
|
|
|
|
|
Tallyn's Reach, Colorado |
|
|
|
|
|
|
|
Metropolitan District No. 3 |
|
|
|
|
|
|
|
(Limited Tax Convertible) |
|
|
|
|
|
|
|
144A 5.125% |
|
|
|
|
|
|
|
11/1/38-23 #, § |
|
295,000 |
|
$ |
300,148 |
|
Western Minnesota Municipal |
|
|
|
|
|
|
|
Power Agency Supply Revenue |
|
|
|
|
|
|
|
Series A 5.00% 1/1/40-24 § |
|
750,000 |
|
|
766,530 |
|
|
Series A 5.00% 1/1/46-24 § |
|
2,000,000 |
|
|
2,044,080 |
|
|
|
|
|
|
|
11,925,083 |
| Special Tax Revenue Bonds – 28.59% |
|
|
|
|
|
|
Allentown, Pennsylvania |
|
|
|
|
|
|
|
Neighborhood Improvement |
|
|
|
|
|
|
|
Zone Development Authority |
|
|
|
|
|
|
|
Revenue |
|
|
|
|
|
|
|
(Forward Delivery) |
|
|
|
|
|
|
|
5.00% 5/1/33 |
|
765,000 |
|
|
789,480 |
|
City & County of San Francisco, |
|
|
|
|
|
|
|
California Special Tax District |
|
|
|
|
|
|
|
No 2020-1 |
|
|
|
|
|
|
|
(Mission Rock Facilities and |
|
|
|
|
|
|
|
Services) |
|
|
|
|
|
|
|
Series B 144A 5.25% |
|
|
|
|
|
|
|
9/1/49 # |
|
550,000 |
|
|
404,261 |
|
Commonwealth of Puerto Rico |
|
|
|
|
|
|
|
(Restructured) |
|
|
|
|
|
|
|
2.312% 11/1/51 ● |
|
3,510,071 |
|
|
1,289,951 |
|
Detroit, Michigan Retirement |
|
|
|
|
|
|
|
Systems Funding Trust |
|
|
|
|
|
|
|
Series B 3.633% |
|
|
|
|
|
|
|
6/15/34 (FGIC) ‡, ● |
|
3,480,122 |
|
|
3,036,407 |
|
Fountain, Colorado Urban |
|
|
|
|
|
|
|
Renewal Authority Tax |
|
|
|
|
|
|
|
Increment Revenue |
|
|
|
|
|
|
|
(South Academy Highlands |
|
|
|
|
|
|
|
Project) |
|
|
|
|
|
|
|
Series A 5.50% 11/1/44 |
|
655,000 |
|
|
594,386 |
|
GDB Debt Recovery Authority of |
|
|
|
|
|
|
|
Puerto Rico |
|
|
|
|
|
|
|
7.50% 8/20/40 |
|
13,869,155 |
|
|
12,204,856 |
|
Idaho Housing & Finance |
|
|
|
|
|
|
|
Association Sales Tax Revenue |
|
|
|
|
|
|
|
5.00% 8/15/47 |
|
3,000,000 |
|
|
3,133,530 |
|
Lincoln Park Metropolitan District |
|
|
|
|
|
|
|
Douglas County, Colorado |
|
|
|
|
|
|
|
5.00% 12/1/46 (AGM) |
|
500,000 |
|
|
519,135 |
|
Massachusetts Bay Transportation |
|
|
|
|
|
|
|
Authority |
|
|
|
|
|
|
|
(Senior Sales Tax) |
|
|
|
|
|
|
|
Series A 5.25% 7/1/29 |
|
200,000 |
|
|
223,732 |
|
Matching Fund Special Purpose |
|
|
|
|
|
|
|
Securitization Virginia |
|
|
|
|
|
|
|
Series A 5.00% 10/1/39 |
|
630,000 |
|
|
632,255 |
|
Miami-Dade County, Florida |
|
|
|
|
|
|
|
(Capital Appreciation) |
|
|
|
|
|
|
|
3.505% 10/1/37 (BAM) ^ |
|
3,000,000 |
|
|
1,464,630 |
|
New York State Dormitory |
|
|
|
|
|
|
|
Authority Personal Income Tax |
|
|
|
|
|
|
|
Revenue |
|
|
|
|
|
|
|
(General Purpose) |
|
|
|
|
|
|
|
Series E 4.00% 3/15/48 |
|
4,000,000 |
|
|
3,538,240 |
|
New York State Thruway Authority |
|
|
|
|
|
|
|
State Personal Income Tax |
|
|
|
|
|
|
|
Revenue |
|
|
|
|
|
|
|
Series A1 4.00% 3/15/55 |
|
2,000,000 |
|
|
1,722,360 |
|
|
(Climate Bond Certified - Green |
|
|
|
|
|
|
|
Bonds) |
|
|
|
|
|
|
|
Series C 5.00% 3/15/55 |
|
4,000,000 |
|
|
4,131,680 |
|
Northampton County, |
|
|
|
|
|
|
|
Pennsylvania Industrial |
|
|
|
|
|
|
|
Development Authority |
|
|
|
|
|
|
|
Revenue |
|
|
|
|
|
|
|
(Route 33 Project) |
|
|
|
|
|
|
|
7.00% 7/1/32 |
|
205,000 |
|
|
208,001 |
|
Prairie Center Metropolitan District |
|
|
|
|
|
|
|
No. 3 Colorado |
|
|
|
|
|
|
|
Series A 144A 5.00% |
|
|
|
|
|
|
|
12/15/41 # |
|
500,000 |
|
|
452,710 |
|
Public Finance Authority, |
|
|
|
|
|
|
|
Wisconsin |
|
|
|
|
|
|
|
(American Dream @ |
|
|
|
|
|
|
|
Meadowlands Project) |
|
|
|
|
|
|
|
144A 7.00% 12/1/50 # |
|
380,000 |
|
|
320,013 |
|
Puerto Rico Sales Tax Financing |
|
|
|
|
|
|
|
Revenue |
|
|
|
|
|
|
|
(Restructured) |
|
|
|
|
|
|
|
Series A-1 4.55% 7/1/40 |
|
2,250,000 |
|
|
2,004,907 |
|
|
Series A-1 4.75% 7/1/53 |
|
9,160,000 |
|
|
7,846,090 |
|
|
Series A-1 5.00% 7/1/58 |
|
4,747,000 |
|
|
4,202,519 |
|
|
Series A-1 5.279% 7/1/46 ^ |
|
17,835,000 |
|
|
4,043,016 |
|
|
Series A-1 5.435% 7/1/51 ^ |
|
63,590,000 |
|
|
10,431,304 |
|
|
Series A-2 4.329% 7/1/40 |
|
595,000 |
|
|
515,431 |
|
|
Series A-2 4.784% 7/1/58 |
|
1,100,000 |
|
|
927,938 |
13
Table of Contents
Schedule of investments
Delaware Investments® National Municipal Income Fund
|
|
|
|
Principal |
|
|
|
|
|
|
|
amount° |
|
Value (US $) |
| Municipal Bonds (continued) |
|
|
|
|
|
| Special Tax Revenue Bonds (continued) |
|
|
|
|
|
| |
Sales Tax Securitization, Illinois |
|
|
|
|
|
|
|
Series A 5.00% 1/1/40 |
|
500,000 |
|
$ |
510,185 |
|
St. Paul, Minnesota Sales Tax |
|
|
|
|
|
|
|
Revenue |
|
|
|
|
|
|
|
Series G 5.00% 11/1/30 |
|
935,000 |
|
|
964,181 |
|
Thornton, Colorado Development |
|
|
|
|
|
|
|
Authority |
|
|
|
|
|
|
|
(East 144th Avenue & I-25 |
|
|
|
|
|
|
|
Project) |
|
|
|
|
|
|
|
Series B 5.00% 12/1/35 |
|
265,000 |
|
|
270,695 |
|
|
Series B 5.00% 12/1/36 |
|
440,000 |
|
|
449,271 |
|
Wyandotte County/Kansas City, |
|
|
|
|
|
|
|
Kansas Unified Government |
|
|
|
|
|
|
|
Special Obligation Revenue |
|
|
|
|
|
|
|
(Vacation Village Project Areas |
|
|
|
|
|
|
|
1 and 2A) |
|
|
|
|
|
|
|
Series 2015A 5.75% 9/1/32 |
|
220,000 |
|
|
196,227 |
|
|
|
|
|
|
|
67,027,391 |
| State General Obligation Bonds – 6.43% |
|
|
|
|
|
|
California State |
|
|
|
|
|
|
|
(Various Purpose) |
|
|
|
|
|
|
|
4.00% 9/1/42 |
|
750,000 |
|
|
700,635 |
|
|
5.00% 11/1/47 |
|
1,000,000 |
|
|
1,042,350 |
|
Commonwealth of Puerto Rico |
|
|
|
|
|
|
|
(Restructured) |
|
|
|
|
|
|
|
Series A-1 4.00% 7/1/33 |
|
189,839 |
|
|
167,368 |
|
|
Series A-1 4.00% 7/1/37 |
|
508,869 |
|
|
418,891 |
|
|
Series A-1 4.00% 7/1/41 |
|
317,280 |
|
|
248,529 |
|
|
Series A-1 4.00% 7/1/46 |
|
2,175,510 |
|
|
1,635,091 |
|
|
Series A-1 4.364% 7/1/33 ^ |
|
848,864 |
|
|
469,354 |
|
|
Series A-1 5.75% 7/1/31 |
|
5,601,630 |
|
|
5,722,569 |
|
Georgia State |
|
|
|
|
|
|
|
Series A 4.00% 7/1/38 |
|
860,000 |
|
|
838,681 |
|
Illinois State |
|
|
|
|
|
|
|
5.00% 1/1/28 |
|
285,000 |
|
|
289,255 |
|
|
5.00% 11/1/36 |
|
1,170,000 |
|
|
1,156,100 |
|
|
5.50% 5/1/39 |
|
500,000 |
|
|
509,270 |
|
|
Series A 5.125% 12/1/29 |
|
310,000 |
|
|
317,530 |
|
|
Series C 4.00% 10/1/42 |
|
1,900,000 |
|
|
1,562,674 |
|
|
|
|
|
|
|
15,078,297 |
| Transportation Revenue Bonds – 13.34% |
|
|
|
|
|
|
Alameda Corridor, California |
|
|
|
|
|
|
|
Transportation Authority |
|
|
|
|
|
|
|
(Second Subordinate Lien) |
|
|
|
|
|
|
|
Series B 5.00% 10/1/37 |
|
430,000 |
|
|
438,553 |
|
Atlanta, Georgia Airport Revenue |
|
|
|
|
|
|
|
Series B 5.00% 1/1/29 |
|
1,000,000 |
|
|
1,019,020 |
|
Central Florida Expressway |
|
|
|
|
|
|
|
Authority |
|
|
|
|
|
|
|
Series B 4.00% 7/1/39 |
|
675,000 |
|
|
619,879 |
|
Chicago, Illinois O'Hare |
|
|
|
|
|
|
|
International Airport Revenue |
|
|
|
|
|
|
|
(Senior Lien) |
|
|
|
|
|
|
|
Series A 5.00% |
|
|
|
|
|
|
|
1/1/48 (AMT) |
|
250,000 |
|
|
247,873 |
|
Colorado High Performance |
|
|
|
|
|
|
|
Transportation Enterprise |
|
|
|
|
|
|
|
Revenue |
|
|
|
|
|
|
|
(U.S. 36 & I-25 Managed |
|
|
|
|
|
|
|
Lanes) |
|
|
|
|
|
|
|
5.00% 12/31/56 |
|
1,000,000 |
|
|
971,200 |
|
|
5.75% 1/1/44 (AMT) |
|
1,110,000 |
|
|
1,112,653 |
|
Denver, Colorado City & County |
|
|
|
|
|
|
|
Airport System Subordinate |
|
|
|
|
|
|
|
Revenue |
|
|
|
|
|
|
|
Series A 4.00% 12/1/43 (AMT) |
|
2,835,000 |
|
|
2,466,507 |
|
|
Series A 5.00% 12/1/48 (AMT) |
|
1,000,000 |
|
|
997,100 |
|
Foothill/Eastern Transportation |
|
|
|
|
|
|
|
Corridor Agency California Toll |
|
|
|
|
|
|
|
Road Revenue |
|
|
|
|
|
|
|
(Junior Lien) |
|
|
|
|
|
|
|
Series C 4.00% 1/15/43 |
|
1,000,000 |
|
|
843,720 |
|
|
(Senior Lien) |
|
|
|
|
|
|
|
Series A 4.00% 1/15/46 |
|
1,000,000 |
|
|
856,620 |
|
Greater Orlando Aviation Authority |
|
|
|
|
|
|
|
Series A 4.00% 10/1/39 (AMT) |
|
3,000,000 |
|
|
2,705,490 |
|
Harris County, Texas Toll Road |
|
|
|
|
|
|
|
Authority Revenue |
|
|
|
|
|
|
|
(Senior Lien) |
|
|
|
|
|
|
|
Series A 4.00% 8/15/48 |
|
500,000 |
|
|
443,140 |
|
Metropolitan Transportation |
|
|
|
|
|
|
|
Authority Revenue, New York |
|
|
|
|
|
|
|
(Climate Bond Certified - Green |
|
|
|
|
|
|
|
Bond) |
|
|
|
|
|
|
|
Subordinate Series |
|
|
|
|
|
|
|
A-1 5.00% 11/15/41 |
|
1,105,000 |
|
|
1,073,839 |
|
|
Subordinate Series |
|
|
|
|
|
|
|
C-1 5.25% 11/15/55 |
|
750,000 |
|
|
739,597 |
|
Metropolitan Washington D.C. |
|
|
|
|
|
|
|
Airports Authority Dulles Toll |
|
|
|
|
|
|
|
Road Revenue |
|
|
|
|
|
|
|
(Dulles Metrorail and Capital |
|
|
|
|
|
|
|
Improvement Projects) |
|
|
|
|
|
|
|
Series B 4.00% 10/1/49 |
|
510,000 |
|
|
429,022 |
14
Table of Contents
|
|
|
|
Principal |
|
|
|
|
|
|
|
amount° |
|
Value (US $) |
| Municipal Bonds (continued) |
|
|
|
|
|
| Transportation Revenue Bonds (continued) |
|
|
|
|
|
| |
Minneapolis – St. Paul |
|
|
|
|
|
|
|
Metropolitan Airports |
|
|
|
|
|
|
|
Commission Revenue |
|
|
|
|
|
|
|
(Subordinate) |
|
|
|
|
|
|
|
Series B 5.00% 1/1/26 (AMT) |
|
500,000 |
|
$ |
505,190 |
|
|
Series C 5.00% 1/1/33 |
|
1,000,000 |
|
|
1,041,720 |
|
|
Series C 5.00% 1/1/36 |
|
1,000,000 |
|
|
1,032,290 |
|
|
Series C 5.00% 1/1/46 |
|
1,245,000 |
|
|
1,254,636 |
|
New Jersey Turnpike Authority |
|
|
|
|
|
|
|
Series A 4.00% 1/1/48 |
|
1,000,000 |
|
|
892,870 |
|
|
Series B 5.00% 1/1/40 |
|
250,000 |
|
|
260,535 |
|
New Orleans, Louisiana Aviation |
|
|
|
|
|
|
|
Board |
|
|
|
|
|
|
|
(North Terminal Project) |
|
|
|
|
|
|
|
Series B 5.00% |
|
|
|
|
|
|
|
1/1/45 (AMT) |
|
1,000,000 |
|
|
982,570 |
|
New York Transportation |
|
|
|
|
|
|
|
Development Corporation |
|
|
|
|
|
|
|
Special Facilities Revenue |
|
|
|
|
|
|
|
(La Guardia Airport Terminal B |
|
|
|
|
|
|
|
Redevelopment Project) |
|
|
|
|
|
|
|
Series A 5.25% |
|
|
|
|
|
|
|
1/1/50 (AMT) |
|
700,000 |
|
|
679,567 |
|
|
(Terminal 4 John F. Kennedy |
|
|
|
|
|
|
|
International Airport Project) |
|
|
|
|
|
|
|
5.00% 12/1/32 (AMT) |
|
3,500,000 |
|
|
3,534,335 |
|
Pennsylvania Turnpike |
|
|
|
|
|
|
|
Commission Revenue |
|
|
|
|
|
|
|
Series A-1 5.00% 12/1/45 |
|
2,720,000 |
|
|
2,743,936 |
|
|
Series A-1 5.00% 12/1/47 |
|
210,000 |
|
|
211,529 |
|
|
Subordinate Series |
|
|
|
|
|
|
|
A-1 5.00% 12/1/43 |
|
500,000 |
|
|
496,595 |
|
Port Authority of Guam Revenue |
|
|
|
|
|
|
|
Series A 5.00% 7/1/48 |
|
1,050,000 |
|
|
1,069,341 |
|
Salt Lake City, Utah Airport |
|
|
|
|
|
|
|
Revenue |
|
|
|
|
|
|
|
(Salt Lake City Airport) |
|
|
|
|
|
|
|
Series B 5.00% 7/1/42 |
|
625,000 |
|
|
631,800 |
|
Texas Private Activity Bond |
|
|
|
|
|
|
|
Surface Transportation |
|
|
|
|
|
|
|
Corporate Senior Lien Revenue |
|
|
|
|
|
|
|
(Blueridge Transportation |
|
|
|
|
|
|
|
Group, LLC 288 Toll Lanes |
|
|
|
|
|
|
|
Project) |
|
|
|
|
|
|
|
5.00% 12/31/40 (AMT) |
|
110,000 |
|
|
106,824 |
|
|
5.00% 12/31/45 (AMT) |
|
110,000 |
|
|
103,626 |
|
|
5.00% 12/31/50 (AMT) |
|
160,000 |
|
|
147,371 |
|
|
Surface Transportation |
|
|
|
|
|
|
|
Corporate Senior Lien Revenue |
|
|
|
|
|
|
|
(NTE Mobility Partners |
|
|
|
|
|
|
|
Segments 3 LLC Segments 3A |
|
|
|
|
|
|
|
& 3B Facility) |
|
|
|
|
|
|
|
6.75% 6/30/43 (AMT) |
|
225,000 |
|
|
229,664 |
|
|
7.00% 12/31/38 (AMT) |
|
165,000 |
|
|
169,006 |
|
Virginia Small Business Financing |
|
|
|
|
|
|
|
Authority Revenue |
|
|
|
|
|
|
|
(Transform 66 P3 Project) |
|
|
|
|
|
|
|
5.00% 12/31/56 (AMT) |
|
235,000 |
|
|
219,342 |
|
|
|
|
|
|
|
31,276,960 |
| Water & Sewer Revenue Bonds – 7.83% |
|
|
|
|
|
|
Goodyear, Arizona Water & Sewer |
|
|
|
|
|
|
|
Revenue |
|
|
|
|
|
|
|
Second Series 4.00% |
|
|
|
|
|
|
|
7/1/45 (AGM) |
|
2,135,000 |
|
|
1,920,582 |
|
Guam Government Waterworks |
|
|
|
|
|
|
|
Authority |
|
|
|
|
|
|
|
5.00% 7/1/40 (Guam) |
|
3,130,000 |
|
|
3,177,607 |
|
Miami-Dade County, Florida Water |
|
|
|
|
|
|
|
& Sewer System Revenue |
|
|
|
|
|
|
|
4.00% 10/1/44 |
|
445,000 |
|
|
402,881 |
|
New York City, New York |
|
|
|
|
|
|
|
Municipal Water Finance |
|
|
|
|
|
|
|
Authority Water & Sewer |
|
|
|
|
|
|
|
System Revenue |
|
|
|
|
|
|
|
Fiscal 2013 Series CC 5.00% |
|
|
|
|
|
|
|
6/15/47 |
|
185,000 |
|
|
185,853 |
|
New York State Environmental |
|
|
|
|
|
|
|
Facilities Clean Water and |
|
|
|
|
|
|
|
Drinking Water Revenue |
|
|
|
|
|
|
|
(New York Municipal Water |
|
|
|
|
|
|
|
Finance Authority Projects - |
|
|
|
|
|
|
|
Second Resolution Bonds) |
|
|
|
|
|
|
|
Series A 4.00% 6/15/47 |
|
1,000,000 |
|
|
908,720 |
|
Sacramento County, California |
|
|
|
|
|
|
|
Sanitation Districts Financing |
|
|
|
|
|
|
|
Authority |
|
|
|
|
|
|
|
(Sacramento Regional County |
|
|
|
|
|
|
|
Sanitation District) |
|
|
|
|
|
|
|
Series A 5.00% 12/1/50 |
|
5,000,000 |
|
|
5,278,400 |
15
Table of Contents
Schedule of investments
Delaware Investments® National Municipal Income Fund
|
|
|
|
Principal |
|
|
|
|
|
|
|
amount° |
|
|
Value (US $) |
| Municipal Bonds (continued) |
|
|
|
|
|
| Water & Sewer Revenue Bonds (continued) |
|
|
|
|
|
| |
Tampa, Florida Water & |
|
|
|
|
|
|
|
Wastewater System Revenue |
|
|
|
|
|
|
|
(Green Bonds) |
|
|
|
|
|
|
|
Series A 5.25% 10/1/57 |
|
6,000,000 |
|
$ |
6,477,300 |
|
|
|
|
|
|
|
18,351,343 |
| Total Municipal Bonds |
|
|
|
|
|
|
(cost $402,319,520) |
|
|
|
|
365,216,381 |
| Total Value of Securities–155.78% |
|
|
|
|
|
|
(cost $402,319,520) |
|
|
|
$ |
365,216,381 |
| ° |
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 September 30, 2022, the aggregate value of Rule 144A securities was $10,317,775, which represents 4.40% of the Fund's net assets. See Note 6 in “Notes to financial statements." |
| ^ |
Zero-coupon security. The rate shown is the effective yield at the time of purchase. |
| ● |
Variable rate investment. Rates reset periodically. Rate shown reflects the rate in effect at September 30, 2022. For securities based on a published reference rate and spread, the reference rate and spread are indicated in their descriptions. The reference rate descriptions (i.e. LIBOR03M, LIBOR06M, etc.) used in this report are identical for different securities, but the underlying reference rates may differ due to the timing of the reset period. Certain variable rate securities are not based on a published reference rate and spread but are determined by the issuer or agent and are based on current market conditions, or for mortgage-backed securities, are impacted by the individual mortgages which are paying off over time. These securities do not indicate a reference rate and spread in their descriptions. |
| ‡ |
Non-income producing security. Security is currently in default. |
| § |
Pre-refunded bonds. Municipal bonds that are generally backed or secured by US Treasury bonds. For pre-refunded bonds, the stated maturity is followed by the year in which the bond will be pre-refunded. See Note 6 in “Notes to financial statements.” |
Summary of abbreviations:
AGM – Insured by Assured Guaranty Municipal Corporation
AMT – Subject to Alternative Minimum Tax
BAM – Insured by Build America Mutual Assurance
CHF – Collegiate Housing Foundation
FGIC – Financial Guaranty Insurance Corporation
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.
16
Table of Contents
Statement of assets and liabilities
Delaware Investments® National Municipal Income Fund
September 30, 2022 (Unaudited)
| Assets: |
|
|
|
|
| |
Investments, at value* |
|
$ |
365,216,381 |
|
|
Cash |
|
|
237,589 |
|
|
Interest receivable |
|
|
4,949,246 |
|
|
Receivable for securities sold |
|
|
2,529,648 |
|
|
Offering cost for preferred shareholders |
|
|
176,776 |
|
|
Prepaid rating agency fee |
|
|
43,740 |
|
|
Other assets |
|
|
332,040 |
|
|
Total Assets |
|
|
373,485,420 |
|
| Liabilities: |
|
|
|
|
|
Liquidation value of preferred stock |
|
|
135,000,000 |
|
|
Payable for securities purchased |
|
|
3,970,540 |
|
|
Investment management fees payable to affiliates |
|
|
55,005 |
|
|
Administration expenses payable to affiliates |
|
|
14,020 |
|
|
Total Liabilities |
|
|
139,039,565 |
|
| Total Net Assets Applicable to Common Shareholders |
|
$ |
234,445,855 |
|
|
|
|
|
|
|
| Net Assets Applicable to Common Shareholders Consist of: |
|
|
|
|
|
Paid-in capital ($0.001 par value)●, ϕ |
|
$ |
285,042,589 |
|
|
Total distributable earnings (loss) |
|
|
(50,596,734 |
) |
| Total Net Assets Applicable to Common Shareholders |
|
$ |
234,445,855 |
|
____________________ |
|
|
|
|
|
*Investments, at cost |
|
$ |
402,319,520 |
|
●Common shares outstanding |
|
|
20,956,695 |
|
|
ϕCommon shares authorized |
|
|
unlimited |
|
See accompanying notes, which are an integral part of the financial statements.
17
Table of Contents
Statement of operations
Delaware Investments® National Municipal Income Fund
Six months ended September 30, 2022 (Unaudited)
| Investment Income: |
|
|
|
|
| |
Interest |
|
$ |
8,354,890 |
|
|
|
|
|
|
|
| Expenses: |
|
|
|
|
|
Management fees |
|
|
800,414 |
|
|
Interest expense |
|
|
1,340,643 |
|
|
Dividend disbursing and transfer agent fees and expenses |
|
|
260,302 |
|
|
Accounting and administration expenses |
|
|
41,923 |
|
|
Legal fees |
|
|
34,257 |
|
|
Reports and statements to shareholders expenses |
|
|
28,590 |
|
|
Audit and tax fees |
|
|
18,924 |
|
|
Trustees’ fees and expenses |
|
|
7,503 |
|
|
Custodian fees |
|
|
4,196 |
|
|
Registration fees |
|
|
86 |
|
|
Other |
|
|
186,260 |
|
|
Total operating expenses |
|
|
2,723,098 |
|
| Net Investment Income (Loss) |
|
|
5,631,792 |
|
|
|
|
|
|
|
| Net Realized and Unrealized Gain (Loss): |
|
|
|
|
|
Net realized gain (loss) on investments |
|
|
(10,919,349 |
) |
|
Net change in unrealized appreciation (depreciation) on investments |
|
|
(39,314,259 |
) |
| Net Realized and Unrealized Gain (Loss) |
|
|
(50,233,608 |
) |
| Net Increase (Decrease) in Net Assets Resulting from Operations |
|
$ |
(44,601,816 |
) |
See accompanying notes, which are an integral part of the financial statements.
18
Table of Contents
Statements of changes in net assets
Delaware Investments® National Municipal Income Fund
|
|
|
Six months |
|
|
|
|
|
|
|
ended |
|
|
|
|
|
|
|
9/30/22 |
|
Year ended |
|
|
|
(Unaudited) |
|
3/31/22 |
| Increase (Decrease) in Net Assets from Operations: |
|
|
|
|
|
|
|
|
| |
Net investment income (loss) |
|
$ |
5,631,792 |
|
|
$ |
3,356,556 |
|
|
Net realized gain (loss) |
|
|
(10,919,349 |
) |
|
|
(2,015,982 |
) |
|
Net change in unrealized appreciation (depreciation) |
|
|
(39,314,259 |
) |
|
|
(15,173,054 |
) |
|
Net increase (decrease) in net assets resulting from operations |
|
|
(44,601,816 |
) |
|
|
(13,832,480 |
) |
|
|
|
|
|
|
|
|
|
|
| Dividends and Distributions to Common Shareholders from: |
|
|
|
|
|
|
|
|
|
Distributable earnings |
|
|
(5,658,308 |
) |
|
|
(4,399,567 |
) |
|
Total dividends and distributions to shareholders |
|
|
(5,658,308 |
) |
|
|
(4,399,567 |
) |
|
Net assets from merger1 |
|
|
— |
|
|
|
235,755,536 |
|
|
Increase in net assets derived from capital share transactions |
|
|
— |
|
|
|
235,755,536 |
|
| Net Increase (Decrease) in Net Assets Applicable to Common Shareholders |
|
|
(50,260,124 |
) |
|
|
217,523,489 |
|
|
|
|
|
|
|
|
|
|
|
| Net Assets Applicable to Common Shareholders: |
|
|
|
|
|
|
|
|
|
Beginning of period |
|
|
284,705,979 |
|
|
|
67,182,490 |
|
|
End of period |
|
$ |
234,445,855 |
|
|
$ |
284,705,979 |
|
| 1 |
See Note 5 in “Notes to financial statements.” |
See accompanying notes, which are an integral part of the financial statements.
19
Table of Contents
Statement of cash flows
Delaware Investments® National Municipal Income Fund
Six months ended September 30, 2022 (Unaudited)
| Cash Flows Provided by (Used for) Operating Activities: |
|
|
|
|
| Net increase (decrease) in net assets resulting from operations |
|
$ |
(44,601,816 |
) |
| |
Adjustments to reconcile net increase (decrease) in net assets from operations to |
|
|
|
|
|
|
net cash provided by (used for) operating activities: |
|
|
|
|
|
|
Amortization of premium and accretion of discount on investments |
|
|
636,825 |
|
|
|
Proceeds from disposition of investment securities |
|
|
174,545,841 |
|
|
|
Purchase of investment securities |
|
|
(174,746,333 |
) |
|
|
(Purchase) proceeds from disposition of short-term investment securities, net |
|
|
6,817,563 |
|
|
|
Net realized (gain) loss on investments |
|
|
10,919,349 |
|
|
|
Net change in unrealized (appreciation) depreciation of investments |
|
|
39,314,259 |
|
|
|
(Increase) decrease in other assets |
|
|
27,216 |
|
|
|
(Increase) decrease in receivable for securities sold |
|
|
19,534,494 |
|
|
|
(Increase) decrease in interest receivable |
|
|
93,872 |
|
|
|
(Increase) decrease in offering cost for preferred shareholders |
|
|
21,890 |
|
|
|
Increase (decrease) in prepaid rating agency fee |
|
|
43,740 |
|
|
|
Increase (decrease) in payable for securities purchased |
|
|
(29,768,213 |
) |
|
|
Increase (decrease) in Trustees' fees and expenses payable to affiliates |
|
|
(1,418 |
) |
|
|
Increase (decrease) in accounting and administration expenses payable to affiliates |
|
|
(1,349 |
) |
|
|
Increase (decrease) in administration expenses payable to affiliates |
|
|
14,020 |
|
|
|
Increase (decrease) in investment management fees payable to affiliates |
|
|
(89,911 |
) |
|
|
Increase (decrease) in reports and statements to shareholders expenses payable to affiliates |
|
|
(145 |
) |
|
|
Increase (decrease) in audit and tax fees payable |
|
|
(44,046 |
) |
|
|
Increase (decrease) in legal fees payable to affiliates |
|
|
(13,380 |
) |
|
|
Increase (decrease) in other accrued expenses payable |
|
|
(28,421 |
) |
|
Total adjustments |
|
|
47,275,853 |
|
| Net cash provided by (used for) operating activities |
|
|
2,674,037 |
|
|
|
|
|
|
|
|
| Cash provided by (used for) financing activities: |
|
|
|
|
|
|
Cash dividends and distributions paid to common shareholders and preferred shareholders |
|
|
(5,658,308 |
) |
| Net cash provided by (used for) financing activities |
|
|
(5,658,308 |
) |
| Net increase (decrease) in cash |
|
|
(2,984,271 |
) |
| Cash at beginning of period |
|
$ |
3,221,860 |
|
| Cash at end of period |
|
$ |
237,589 |
|
| Cash paid during the period for interest expense from borrowings |
|
$ |
1,340,643 |
|
See accompanying notes, which are an integral part of the financial statements.
20
Table of Contents
Financial highlights
Delaware Investments® National Municipal Income Fund
Selected data for each share of the Fund outstanding throughout each period were as follows:
|
|
|
Six months |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ended |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9/30/221 |
|
Year ended |
| |
|
|
(Unaudited) |
|
3/31/22 |
|
3/31/21 |
|
3/31/20 |
|
3/31/19 |
|
3/31/18 |
| Net asset value, beginning of period |
|
$ |
13.59 |
|
|
$ |
14.84 |
|
|
$ |
13.71 |
|
|
$ |
14.44 |
|
|
$ |
14.34 |
|
|
$ |
14.31 |
|
| Income (loss) from investment operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net investment income2 |
|
|
0.27 |
|
|
|
0.51 |
|
|
|
0.58 |
|
|
|
0.54 |
|
|
|
0.59 |
|
|
|
0.64 |
|
| Net realized and unrealized gain (loss) |
|
|
(2.40 |
) |
|
|
(1.12 |
) |
|
|
1.12 |
|
|
|
(0.57 |
) |
|
|
0.11 |
|
|
|
(0.01 |
) |
| Total from investment operations |
|
|
(2.13 |
) |
|
|
(0.61 |
) |
|
|
1.70 |
|
|
|
(0.03 |
) |
|
|
0.70 |
|
|
|
0.63 |
|
| Less dividends and distributions to common |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
shareholders from: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net investment income |
|
|
(0.27 |
) |
|
|
(0.54 |
) |
|
|
(0.51 |
) |
|
|
(0.55 |
) |
|
|
(0.60 |
) |
|
|
(0.60 |
) |
| Net realized gain |
|
|
— |
|
|
|
(0.10 |
) |
|
|
(0.06 |
) |
|
|
(0.15 |
) |
|
|
— |
|
|
|
— |
|
| Total dividends and distributions |
|
|
(0.27 |
) |
|
|
(0.64 |
) |
|
|
(0.57 |
) |
|
|
(0.70 |
) |
|
|
(0.60 |
) |
|
|
(0.60 |
) |
| Net asset value, end of period |
|
$ |
11.19 |
|
|
$ |
13.59 |
|
|
$ |
14.84 |
|
|
$ |
13.71 |
|
|
$ |
14.44 |
|
|
$ |
14.34 |
|
| Market value, end of period |
|
$ |
10.89 |
|
|
$ |
12.65 |
|
|
$ |
13.12 |
|
|
$ |
12.24 |
|
|
$ |
12.69 |
|
|
$ |
12.62 |
|
| Total return based on:3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net asset value |
|
|
(16.02% |
) |
|
|
(4.15% |
) |
|
|
13.20% |
|
|
|
(0.24% |
) |
|
|
5.71% |
|
|
|
4.84% |
|
| Market value |
|
|
(11.94% |
) |
|
|
0.92% |
|
|
|
12.11% |
|
|
|
1.35% |
|
|
|
5.56% |
|
|
|
2.04% |
|
| Ratios and supplemental data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net assets applicable to common shares, end of |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
period (000 omitted) |
|
$ |
234,446 |
|
|
$ |
284,706 |
|
|
$ |
67,182 |
|
|
$ |
62,085 |
|
|
$ |
65,399 |
|
|
$ |
64,924 |
|
| Ratio of expenses to average net assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
applicable to common shareholders4 |
|
|
2.06% |
|
|
|
1.57% |
|
|
|
1.66% |
|
|
|
2.27% |
|
|
|
2.31% |
|
|
|
1.97% |
|
| Ratio of net investment income to average net |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
assets applicable to common shareholders5 |
|
|
4.25% |
|
|
|
3.45% |
|
|
|
4.03% |
|
|
|
3.69% |
|
|
|
4.19% |
|
|
|
4.36% |
|
| Portfolio turnover |
|
|
44% |
|
|
|
75% |
|
|
|
19% |
|
|
|
33% |
|
|
|
16% |
|
|
|
50% |
|
| Leverage analysis: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Value of preferred shares outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(000 omitted)6 |
|
|
135,000 |
|
|
|
135,000 |
|
|
|
30,000 |
|
|
|
30,000 |
|
|
|
30,000 |
|
|
|
30,000 |
|
| Net asset coverage per share of preferred |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
shares, end of period6 |
|
|
273,664 |
|
|
|
310,893 |
|
|
|
323,942 |
|
|
|
306,949 |
|
|
|
317,996 |
|
|
|
316,412 |
|
| Liquidation value per share of preferred shares6 |
|
|
100,000 |
|
|
|
100,000 |
|
|
|
100,000 |
|
|
|
100,000 |
|
|
|
100,000 |
|
|
|
100,000 |
|
| 1 |
Ratios have been annualized and total return and portfolio turnover have not been annualized. |
| 2 |
Net investment income is reduced by dividends paid to preferred shareholders from net investment income of $0.06, $0.08, $0.08, $0.17, $0.18, and $0.14 per share for the six months ended September 30, 2022 and the years ended March 31, 2022, 2021, 2020, 2019, and 2018, respectively. |
| 3 |
Total investment return is calculated assuming a purchase of common stock on the opening of the first day and a sale on the closing of the last day of each period reported. Dividends and distributions, if any, are assumed for the purposes of this calculation to be reinvested at prices obtained under the Fund’s dividend reinvestment plan. Generally, total investment return based on net asset value will be higher than total investment return based on market value in periods where there is an increase in the discount or a decrease in the premium of the market value to the net asset value from the beginning to the end of such periods. Conversely, total investment return based on net asset value will be lower than total investment return based on market value in periods where there is a decrease in the discount or an increase in the premium of the market value to the net asset value from the beginning to the end of such periods. |
| 4 |
The ratio of expenses to average net assets applicable to common shareholders excluding interest expense for the six months ended September 30, 2022 and years ended March 31, 2022, 2021, 2020, 2019, and 2018 were 1.04%, 1.04%, 1.02%, 1.11%, 1.05%, and 0.98%, respectively. |
| 5 |
The ratio of net investment income excluding interest expense to average net assets for the six months ended September 30, 2022 and the years ended March 31, 2022, 2021, 2020, 2019, and 2018 were 5.26%, 3.98%, 4.67%, 4.84%, 5.45%, and 5.35% respectively. |
| 6 |
In March 2012, the Fund issued a series of 300 variable rate preferred shares, with a liquidation preference of $100,000 per share (Series 2017 Shares). The Series 2017 Shares were redeemed on February 2, 2016 and replaced with Series 2021 Shares, which were the same amount and value as the Fund’s Series 2017 Shares. On April 25, 2019, the Fund redeemed the Series 2021 Shares, and replaced them with Series 2049 Muni-MultiMode Preferred Shares (Series 2049), which have the same amount and value as the Series 2021 Shares. When the Fund acquired Delaware Investments Colorado Municipal Income Fund, Inc. and Delaware Investments Minnesota Municipal Income Fund II, Inc. on February 11, 2022, it also acquired the Series 2049 preferred shares used as leverage by those funds, which are reflected in the value of preferred shares outstanding in the table above. |
See accompanying notes, which are an integral part of the financial statements.
21
Table of Contents
Notes to financial statements
Delaware Investments® National Municipal Income Fund
September 30, 2022 (Unaudited)
Delaware Investments National Municipal Income Fund (Fund) is organized as a Massachusetts business trust, and is a diversified closed-end management investment company under the Investment Company Act of 1940, as amended (1940 Act). The Fund’s shares trade on the NYSE American, the successor to the American Stock Exchange, formerly known as NYSE Market.
1. Significant Accounting Policies
The 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 Fund.
Security Valuation — Debt securities are valued based upon valuations provided by an independent pricing service or broker and reviewed by management. To the extent current market prices are not available, the pricing service may take into account developments related to the specific security, as well as transactions in comparable securities. Valuations for fixed income securities utilize matrix systems, which reflect such factors as security prices, yields, maturities, and ratings, and are supplemented by dealer and exchange quotations. Generally, other securities and assets for which market quotations are not readily available are valued at fair value as determined in good faith by the Fund's valuation designee, Delaware Management Company (DMC). Subject to the oversight of the Fund's Board of Trustees (Board), DMC, as valuation designee, has adopted policies and procedures to fair value securities with that are not readily available consistent with the requirements of Rule 2a-5 under the 1940 Act. 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 and Foreign Income Taxes — No provision for federal income taxes has been made as the Fund intends to continue to qualify for federal income tax purposes as a regulated investment company under Subchapter M of the Internal Revenue Code of 1986, as amended, and make the requisite distributions to shareholders. The Fund evaluates tax positions taken or expected to be taken in the course of preparing the Fund’s tax returns to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. Tax positions not deemed to meet the “more-likely-than-not” threshold are recorded as a tax benefit or expense in the current year. Management has analyzed the Fund’s tax positions taken or expected to be taken on the Fund’s federal income tax returns through the six months ended September 30, 2022 and for all open tax years (years ended March 31, 2019–March 31, 2022), and has concluded that no provision for federal income tax is required in the Fund’s financial statements. If applicable, the Fund recognizes interest accrued on unrecognized tax benefits in interest expense and penalties in "Other" on the “Statement of operations.” During the six months ended September 30, 2022, the Fund did not incur any interest or tax penalties.
Cash and Cash Equivalents — Cash and cash equivalents include deposits held at financial institutions, which are available for the Fund’s use with no restrictions, with original maturities of 90 days or less.
Use of Estimates — The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the fair value of investments, the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates and the differences could be material.
Other — Expenses directly attributable to a Fund are charged directly to that Fund. Other expenses common to various funds within the Delaware Funds by Macquarie® (Delaware Funds) are generally allocated among such funds on the basis of average net assets. Management fees and certain other expenses are paid monthly. Security transactions are recorded on the date the securities are purchased or sold (trade date) for financial reporting purposes. Costs used in calculating realized gains and losses on the sale of investment securities are those of the specific securities sold. Interest income is recorded on the accrual basis. Discounts and premiums on debt securities are accreted or amortized to interest income, respectively, over the lives of the respective securities using the effective interest method. Premiums on callable debt securities are amortized to interest income to the earliest call date using the effective interest method. The Fund declares and pays dividends from net investment income monthly and distributions from net realized gain on investments, if any, annually. The Fund may distribute more frequently, if necessary for tax purposes. Dividends and distributions, if any, are recorded on the ex-dividend date.
22
Table of Contents
2. Investment Management, Administration Agreements and Other Transactions with Affiliates
In accordance with the terms of its investment management agreement, the Fund pays DMC, a series of Macquarie Investment Management Business Trust and the investment manager, an annual fee of 0.40% which is calculated based on the Fund’s adjusted average daily net assets.
Delaware Investments Fund Services Company (DIFSC), an affiliate of DMC, provides fund accounting and financial administrative oversight services to the Fund. For these services, DIFSC’s fees are calculated daily and paid monthly based on the aggregate daily net assets of all funds within the Delaware Funds at the following annual rates: 0.00475% of the first $35 billion; 0.0040% of the next $10 billion; and 0.0025% of 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. This amount is included on the “Statement of operations” under “Accounting and administration expenses.” For the six months ended September 30, 2022, the Fund paid $21,433 for these services.
As provided in the investment management agreement, the Fund bears a portion of the cost of certain resources shared with DMC, including the cost of internal personnel of DMC and/or its affiliates that provide legal and regulatory reporting services to the Fund. This amount is included on the “Statement of operations” under “Legal fees.” For the six months ended September 30, 2022, the Fund paid $20,507 for internal legal and regulatory reporting services provided by DMC and/or its affiliates’ employees.
Trustees’ fees include expenses accrued by the Fund for each Trustee’s retainer and meeting fees. Certain officers of DMC and DIFSC are officers and/or Trustees of the Fund. These officers and Trustees are paid no compensation by the Fund.
Cross trades for the six months ended September 30, 2022, were executed by the Fund pursuant to procedures adopted by the Board 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 trustees and/or common officers. At their regularly scheduled meetings, the Board reviews a report related to the Fund’s compliance with the procedures adopted by the Board. Pursuant to these procedures, for the six months ended September 30, 2022, the Fund engaged in Rule 17a-7 securities purchases of $34,383,915. For the six months ended September 30, 2022, the Fund engaged in Rule 17a-7 securities sales of $47,018,606, resulting in net losses of $2,073,138.
3. Investments
For the six months ended September 30, 2022, the Fund made purchases and sales of investment securities other than short-term investments as follows:
| Purchases |
|
$ |
174,746,333 |
| Sales |
|
|
174,545,841 |
At September 30, 2022, 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 September 30, 2022, the cost and unrealized appreciation (depreciation) of investments for the Fund were as follows:
| Cost of investments |
|
$ |
402,319,520 |
|
| Aggregate unrealized appreciation of investments |
|
$ |
446,644 |
|
| Aggregate unrealized depreciation of investments |
|
|
(37,549,783 |
) |
| Net unrealized depreciation of investments |
|
$ |
(37,103,139 |
) |
At March 31, 2022, capital loss carryforwards available to offset future realized capital gains are as follows:
| |
|
Loss carryforward character |
|
|
Short-term |
|
Long-term |
|
Total |
|
|
$20,151 |
|
$— |
|
$20,151 |
23
Table of Contents
Notes to financial statements
Delaware Investments® National Municipal Income Fund
3. Investments (continued)
US GAAP defines fair value as the price that the Fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date under current market conditions. A three-level hierarchy for fair value measurements has been established based upon the transparency of inputs to the valuation of an asset or liability. Inputs may be observable or unobservable and refer broadly to the assumptions that market participants would use in pricing the asset or liability. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the reporting entity’s own assumptions about the assumptions that market participants would use in pricing the asset or liability based on the best information available under the circumstances. The Fund's investment in its entirety is assigned a level based upon the observability of the inputs which are significant to the overall valuation. The three-level hierarchy of inputs is summarized 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, 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 the 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. The Fund may also use an income-based valuation approach in which the anticipated future cash flows of the investment are discounted to calculate fair value. Discounts may also be applied due to the nature or duration of any restrictions on the disposition of the investments. Valuations may also be based upon current market prices of securities that are comparable in coupon, rating, maturity, and industry. The derived value of a Level 3 investment may not represent the value which is received upon disposition and this could impact the results of operations.
The following table summarizes the valuation of the Fund’s investments by fair value hierarchy levels as of September 30, 2022:
|
|
Level 2 |
| Securities |
|
|
| Assets: |
|
|
| Municipal Bonds |
|
$365,216,381 |
During the six months ended September 30, 2022, there were no transfers into or out of Level 3 investments. The Fund's policy is to recognize transfers into or out of Level 3 investments based on fair value at the beginning of the reporting period.
A reconciliation of Level 3 investments is presented when the Fund has a significant amount of Level 3 investments at the beginning or end of the period in relation to the Fund's net assets. During the six months ended September 30, 2022, there were no Level 3 investments.
4. Capital Stock
Pursuant to its declaration of trust, the Fund has been authorized to issue an unlimited amount of $0.01 par value common shares. Shares issuable under the Fund’s dividend reinvestment plan are purchased by the Fund’s transfer agent, Computershare, Inc., in the open market. During the six months ended September 30, 2022 and the year ended March 31, 2022, the Fund did not issue any shares under its dividend reinvestment plan.
On April 25, 2019, the Fund priced private offerings to a qualified institutional buyer, as defined pursuant to Rule 144A under the Securities Act of 1933, of approximately $30 million of Muni-MultiMode Preferred Shares, Series 2049 (MMP), with a $100,000 liquidation value per share. The Fund used the net proceeds from each offering to redeem its outstanding Variable Rate MuniFund Term Preferred Shares, Series 2021 (VMTP). The Fund issued MMP shares in the same amount and value as its previously outstanding VMTP shares. On February 11, 2022, the Fund
24
Table of Contents
acquired the assets of Delaware Investments Colorado Municipal Income Fund, Inc. (“VCF”) and Delaware Investments Minnesota Municipal Income Fund II, Inc. (“VMM”), which included Series 2049 MMP preferred shares issued by each of VCF and VMM used as leverage (the “Reorganization”). The Reorganization caused the Fund’s total preferred shares outstanding to equal $135 million, with VCF’s Series 2049 MMP preferred shares becoming Series 2 and VMM’s Series 2049 MMP preferred shares becoming Series 3 of the MMP shares issued by the Fund. The Fund’s original tranche of Series 2049 MMP preferred shares is Series 1. The terms of the Series 2 and Series 3 MMP shares are substantially similar to those of the Series 1. For more information on the Reorganization see Note 5.
The MMP shares are a floating rate form of preferred stock with a mandatory term redemption. The mandatory term redemption date for these offerings is April 1, 2049. MMP shares have the option at either the request of the purchaser or issuer to be converted to a variable rate demand preferred (“VRDP”) structure. The converted VRDP shares could then be offered for sale to certain institutional investors. The VRDP could continue to remain outstanding for the remainder of the MMP shares’ 30-year term. MMP dividends are set weekly at a spread to the Securities Industry and Financial Markets Association Municipal Swap Index. MMP shares represent the preferred stock of the Fund and are senior, with priority in all respects, to the Fund’s common shares as to payments of dividends. MMP shares are redeemable at par. The Fund may be obligated to redeem certain of the MMP shares if the Fund fails to maintain certain asset coverage and leverage ratio requirements and such failures are not cured by the applicable cure date. The redemption price per share is equal to the sum of the liquidation value per share plus any accumulated but unpaid dividends. Dividends on MMP shares are set weekly, and are based on a short-term index rate plus an additional spread that is subject to adjustment in certain circumstances, including a change in the credit rating assigned to the MMP shares by Fitch Ratings (“Fitch”).
The weighted average dividend rate for all of the Fund’s MMP shares for the six months ended September 30, 2022 is 0.20%.
The Fund uses leverage because its managers believe that, over time, leveraging may provide opportunities for additional income and total return for common shareholders. However, the use of leverage also can expose common shareholders to additional volatility. For example, as the prices of securities held by the Fund decline, the negative impact of these valuation changes on common share NAV and common shareholder total return is magnified by the use of leverage; accordingly, the use of structural leverage may hurt the Fund’s overall performance.
Leverage may also cause the Fund to incur certain costs. In the event that the Fund is unable to meet certain criteria (including, but not limited to, maintaining certain ratings with Fitch, funding dividend payments, or funding redemptions), the Fund will pay additional fees with respect to the leverage.
For financial reporting purposes, the MMP shares are considered debt of the issuer; therefore, the liquidation value which approximates fair value of the MMP shares is recorded as a liability in the "Statement of assets and liabilities". Dividends accrued and paid on the MMP shares are included as a component of interest expense in the "Statement of operations". The MMP shares are treated as equity for legal and tax purposes. Dividends paid to holders of the MMP shares are generally classified as tax-exempt income for tax-reporting purposes.
Offering costs for MMP shares are recorded as a deferred charge and amortized over the 30-year life of the MMP shares. These are presented as “Offering cost for preferred shareholders” on the “Statement of assets and liabilities” and “Offering costs” on the “Statement of operations.”
5. Reorganization
On November 9, 2021, the Board approved a proposal to reorganize (the “Reorganization”) Delaware Investments® Colorado Municipal Income Fund, Inc. and Delaware Investments Minnesota Municipal Income Fund II, Inc. (the “Acquired Funds”), each organized as Minnesota corporations, with and into Delaware Investments National Municipal Income Fund (the “Acquiring Fund”), organized as a Massachusetts business trust. Pursuant to an Agreement and Plan of Reorganization (the “Plan”): (i) all of the property, assets, and goodwill of the Acquired Funds were acquired by the Acquiring Fund, and (ii) the Trust, on behalf of the Acquiring Fund, assumed the liabilities of the Acquired Funds, in exchange for shares of the Acquiring Fund. In accordance with the Plan, the Acquired Funds liquidated and dissolved following the Reorganization. The purpose of the transaction was to allow shareholders of the Acquired Funds to own shares of the Acquiring Fund, and the Acquiring Fund to achieve a larger asset level, which could potentially reduce its discounts as well as fixed expenses, greater liquidity to facilitate larger trading volumes, stronger investment opportunities due to scale and having a national investment focus, and the ability to implement other forms of leverage. The Reorganization was accomplished by a tax-free exchange of shares on February 11, 2022. For financial reporting purposes, assets received and shares issued by the Acquiring Fund were recorded at fair value; however, the cost basis of the
25
Table of Contents
Notes to financial statements
Delaware Investments® National Municipal Income Fund
5. Reorganization (continued)
investments received from the Acquired Funds was carried forward to align ongoing reporting of the Acquiring Fund's realized and unrealized gains and losses with amounts distributable to shareholders for tax purposes.
The share transactions associated with the Reorganization are as follows:
|
|
|
|
|
|
Shares |
|
|
|
|
|
|
Acquired |
|
Acquired |
|
Converted |
|
Acquiring |
|
|
|
|
Fund |
|
Fund Shares |
|
to Acquiring |
|
Fund |
|
Conversion |
|
|
Net Assets |
|
Outstanding |
|
Fund |
|
Net Assets |
|
Ratio |
|
|
Delaware Investments Colorado |
|
Delaware Investments National |
|
|
|
|
Municipal Income Fund, Inc. |
|
Municipal Income Fund |
|
|
| Common Shares |
|
$71,680,609 |
|
4,837,100 |
|
4,995,164 |
|
$64,997,119 |
|
1.0327 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares |
|
|
|
|
|
|
Acquired |
|
Acquired |
|
Converted |
|
Acquiring |
|
|
|
|
Funds |
|
Fund Shares |
|
to Acquiring |
|
Fund |
|
Conversion |
|
|
Net Assets |
|
Outstanding |
|
Fund |
|
Net Assets |
|
Ratio |
|
|
Delaware Investments Minnesota |
|
Delaware Investments National |
|
|
|
|
Municipal Income Fund II |
|
Municipal Income Fund |
|
|
| Common Shares |
|
$164,074,927 |
|
11,504,975 |
|
11,433,793 |
|
$64,997,119 |
|
0.9938 |
The net assets of the Acquired Funds before the Reorganization were $235,755,536. The net assets of the Acquiring Fund immediately following the Reorganization were $300,752,655.
Assuming the Reorganization had been completed on April 1, 2021, the Acquiring Fund's pro forma results of operations for the year ended March 31, 2022, would have been as follows:
| Net investment income |
|
$ |
10,353,883 |
|
| Net realized loss on investments |
|
|
(2,024,210 |
) |
| Net change in unrealized appreciation (depreciation) |
|
|
(22,051,855 |
) |
| Net decrease in net assets resulting from operations |
|
$ |
(13,722,182 |
) |
Because the combined investment portfolios have been managed as a single integrated portfolio since the acquisition was completed, it is not practical to separate the amounts of revenue and earnings of the Acquired Funds that have been included in the Acquiring Fund's Statement of Operations since the Reorganization was consummated on March 31, 2022.
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.
IBOR is the risk that changes related to the use of the London interbank offered rate (LIBOR) and other interbank offered rate (collectively, IBORs) could have adverse impacts on financial instruments that reference LIBOR (or the corresponding IBOR). The abandonment of LIBOR could affect the value and liquidity of instruments that reference LIBOR. The use of alternative reference rate products may impact investment
26
Table of Contents
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 Fund concentrates its investments in securities issued by municipalities. Any downgrade to the credit rating of the securities issued by the US government may result in a downgrade of securities issued by the states or US territories. The Fund will be subject to these risks as well but to a lesser extent because it invests at least 80% of its net assets in securities, the income from which is exempt from federal income tax and is not limited to investing substantially all of its assets in municipal obligations of a single state. From time to time and consistent with its investment policies, the Fund may invest a considerable portion of its assets in certain municipalities. As of September 30, 2022, the Fund has invested 19.81%, 36.56%, and 24.67% (each as a percentage of net assets) in securities issued by the State of Colorado, the State of Minnesota, and the Commonwealth of Puerto Rico, respectively. These investments could make the Fund more sensitive to economic conditions in those states than other more geographically diversified national municipal income funds. For a complete list of the Fund's holdings by state/territory, please see page 2.
The Fund may invest a percentage of assets in obligations of governments of US territories, commonwealths, and possessions such as Puerto Rico, the US Virgin Islands, or Guam. To the extent the Fund invests in such obligations, the Fund may be adversely affected by local political and economic conditions and developments within these US territories, commonwealths, and possessions.
From time to time, the 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 the 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.
In particular, there recently has been speculation that due to a weak economic outlook, high government debt levels, and credit rating downgrades by S&P and Moody’s, Puerto Rican debt obligations may be subject to a greater risk of default. In striving to manage geographic concentration risk for a Fund, DMC carefully monitors the economies of each state, region, and US territory and possession in which the Fund invests or may invest. In general, DMC believes these economies are broad enough to satisfy the Fund’s investment needs. However, there is no way to eliminate this risk when investing with a concentration in certain geographic areas.
The Fund invests a portion of its assets in high yield fixed income securities, which are securities rated BB or lower by Standard & Poor’s (S&P) and/or Ba or lower by Moody’s, or similarly rated by another nationally recognized statistical rating organization. Investments in these higher yielding securities are generally accompanied by a greater degree of credit risk than higher rated securities. Additionally, lower rated securities may be more susceptible to adverse economic and competitive industry conditions than investment grade securities.
The Fund may invest in advance refunded bonds, escrow secured bonds, or defeased bonds. Under current federal tax laws and regulations, state and local government borrowers are permitted to refinance outstanding bonds by issuing new bonds. The issuer refinances the outstanding debt to either reduce interest costs or to remove or alter restrictive covenants imposed by the bonds being refinanced. A refunding transaction where the municipal securities are being refunded within 90 days from the issuance of the refunding issue is known as a “current refunding.” Advance refunded bonds are bonds in which the refunded bond issue remains outstanding for more than 90 days following the issuance of the refunding issue. In an advance refunding, the issuer will use the proceeds of a new bond issue to purchase high-grade interest-bearing debt securities, which are then deposited in an irrevocable escrow account held by an escrow agent to secure all future payments of principal and interest and bond premium of the advance refunded bond. Bonds are “escrowed to maturity” when the proceeds of the refunding issue are deposited in an escrow account for investment sufficient to pay all of the principal and interest on the original interest payment and maturity dates.
Bonds are considered “pre-refunded” when the refunding issue’s proceeds are escrowed only until a permitted call date or dates on the refunded issue with the refunded issue being redeemed at the time, including any required premium. Bonds become “defeased” when the rights and interests of the bondholders and of their lien on the pledged revenues or other security under the terms of the bond contract are substituted with an alternative source of revenues (the escrow securities) sufficient to meet payments of principal and interest to maturity or to the first call dates. Escrowed secured bonds will often receive a rating of AAA from Moody’s, S&P, and/or Fitch Ratings due to the strong credit quality of the escrow securities and the irrevocable nature of the escrow deposit agreement.
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Notes to financial statements
Delaware Investments® National Municipal Income Fund
6. Geographic, Credit, and Market Risks (continued)
To the extent that the Fund invests in securities with longer duration, it may be more sensitive to fluctuation of interest rates.
The Fund invests in certain obligations that may have liquidity protection designed to ensure that the receipt of payments due on the underlying security is timely. Such protection may be provided through guarantees, insurance policies, or letters of credit obtained by the issuer or sponsor from third parties, through various means of structuring the transaction, or through a combination of such approaches. The Fund will not pay any additional fees for such credit support, although the existence of credit support may increase the price of a security.
The Fund may invest up to 15% of its net assets in illiquid securities, which may include securities with contractual restrictions on resale, securities exempt from registration under Rule 144A 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 the Fund from disposing of them in a timely manner and at a fair price when it is necessary or desirable to do so. While maintaining oversight, the Board has delegated to DMC the day-to-day functions of determining whether individual securities are liquid for purposes of the Fund’s limitation on investments in illiquid securities. Securities eligible for resale pursuant to Rule 144A, which are determined to be liquid, are not subject to the Fund’s 15% limit on investments in illiquid securities. Rule 144A securities held by the Fund have been identified on the “Schedule of investments.”
7. Contractual Obligations
The Fund enters into contracts in the normal course of business that contain a variety of indemnifications. The Fund's maximum exposure under these arrangements is unknown. However, the Fund has not had prior claims or losses pursuant to these contracts. Management has reviewed the 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. ASU 2020-04 is effective for certain reference rate-related contract modifications that occur during the period March 12, 2020 through December 31, 2022. As of the financial reporting period, Management is evaluating the impact of applying this ASU.
9. Subsequent Events
Management has determined that no material events or transactions occurred subsequent to September 30, 2022, that would require recognition or disclosure in the Fund's financial statements.
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Other Fund information (Unaudited)
Delaware Investments® National Municipal Income Fund
Fund management
Gregory A. Gizzi
Managing Director, Head of US Fixed Income and Head of Municipal Bonds, Senior Portfolio Manager
Gregory A. Gizzi is Head of Municipal Bonds for Macquarie Asset Management Fixed Income (MFI) in the Americas, a role he assumed in February 2019. In this role, he is responsible for the overall operation of the strategy and is team lead on several of the tax-exempt strategies. Additionally, Gizzi continues to be responsible for MFI’s taxable municipal business and the marketing efforts for the municipal product. Previously, Gizzi was co-portfolio manager of the firm’s municipal bond funds and several client accounts, a role he held since November 2011. Gizzi is also the Head of US Fixed Income, a role he assumed in July 2022. In this role, he is responsible for the oversight of the US fixed income business and works closely with US MFI leadership to ensure the delivery of the team’s business objectives in the region. Before joining Macquarie Asset Management (MAM) in January 2008 as head of municipal bond trading, he spent six years as a vice president at Lehman Brothers for the firm’s tax-exempt institutional sales effort. Prior to that, he spent two years trading corporate bonds for UBS before joining Lehman Brothers in a sales capacity. Gizzi has more than 20 years of trading experience in the municipal securities industry, beginning at Kidder Peabody in 1984, where he started as a municipal bond trader and worked his way up to institutional block trading desk manager. He later worked in the same capacity at Dillon Read. Gizzi earned his bachelor’s degree in economics from Harvard University.
Stephen J. Czepiel
Managing Director, Head of Municipal Bonds Portfolio Management, Senior Portfolio Manager
Stephen J. Czepiel leads the portfolio management of the firm’s municipal bonds strategies for Macquarie Asset Management Fixed Income (MFI) in the Americas, a role he assumed in February 2019. He is a co-portfolio manager of the firm’s municipal bond funds and client accounts, a role he has held since August 2007. He joined Macquarie Asset Management in July 2004 as a senior bond trader. Previously, he was vice president at both Mesirow Financial and Loop Capital Markets. He began his career in the securities industry in 1982 as a municipal bond trader at Kidder Peabody and now has more than 20 years of experience in the municipal securities industry. Czepiel earned his bachelor’s degree in finance and economics from Duquesne University.
Jake van Roden
Managing Director, Senior Portfolio Manager
Jake van Roden is a Senior Portfolio Manager on the municipal bond team within Macquarie Asset Management Fixed Income (MFI) in the Americas, a role he assumed in 2017. In addition to portfolio management, his responsibilities include oversight of distressed and high yield investments across municipals, public purpose, and corporate credit sectors. Van Roden joined MFI’s municipal department in July 2004 as a generalist and became head of municipal trading in December 2012. Prior to joining MFI, van Roden interned at Macquarie Asset Management (MAM) in the client services department. He received a bachelor’s degree in American studies with a minor in government from Franklin & Marshall College.
Fund strategies and risks
What are the Fund’s principal investment strategies?
The Fund seeks to achieve its investment objective by investing under normal circumstances, substantially all (at least 80%) of its net assets in “Municipal Obligations.” “Municipal Obligations” are debt obligations issued by or on behalf of a state or territory or its agencies, instrumentalities, municipalities and political subdivisions, the interest payable on which is, in the opinion of bond counsel, excludable from gross income for purposes of federal income taxation (except, in certain instances, the alternative minimum tax, depending upon the shareholder’s tax status). The Fund may invest up to 20% of the Fund’s assets in securities that generate interest that is subject to federal alternative minimum tax (“AMT”). The Fund may invest without limitation in uninsured, “investment grade” Municipal Obligations. “Investment grade” means that, at the time of investment, a Municipal Obligation has a credit rating of at least Baa by Moody’s, or BBB by Standard & Poor’s Financial Services LLC (“S&P”), or is unrated but judged by the Manager, to be of comparable quality. The Fund may invest up to 20% of its net assets in Municipal Obligations that are rated below investment grade or that are unrated but judged by the Manager to be of comparable quality.
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Other Fund information (Unaudited)
Delaware Investments® National Municipal Income Fund
What are the Fund’s principal investment strategies? (continued)
The Manager analyzes economic and market conditions, seeking to identify the securities or market sectors that the Manager thinks are the best investments for the Fund. The Fund generally invests in debt obligations issued by state and local governments and their political subdivisions, agencies, authorities, and instrumentalities that are exempt from federal income tax. The Fund may also invest in debt obligations issued by or for the District of Columbia, and its political subdivisions, agencies, authorities, and instrumentalities or territories and possessions of the United States that are exempt from federal income tax.
The Fund will generally invest in securities for income rather than seeking capital appreciation through active trading. However, the Fund may sell securities for a variety of reasons, such as to reinvest the proceeds in higher yielding securities, to eliminate investments not consistent with the preservation of capital, to fund tender offers, or to address a weakening credit situation.
The Fund invests its assets in securities with maturities of various lengths, depending on market conditions, but will have a dollar-weighted average effective maturity of between 20 and 30 years. The Manager will adjust the average maturity of the bonds in the Fund’s portfolio to attempt to provide a current tax-exempt income, consistent with preservation of capital. The Fund may focus its investments in certain types of bonds or in a certain segment of the municipal bond market when the supply of bonds in other sectors do not suit its investment needs.
The Fund may invest without limitation in general obligation bonds in the top four quality grades or bonds that are unrated, but which the Manager determines to be of equal quality. The Fund may invest without limitation in revenue bonds in the top four quality grades or bonds that are unrated, but which the Manager determines to be of equal quality.
The Fund may invest without limitation in insured Municipal Obligations. In addition, insurance is available on uninsured bonds and the Fund may purchase such insurance directly. The Manager will generally do so only if it believes that purchasing and insuring a Municipal Obligation provides an investment opportunity at least comparable to owning other available insured Municipal Obligations.
Private activity or private placement bonds are municipal bond issues whose proceeds are used to finance certain nongovernment activities, including some types of industrial revenue bonds such as privately owned sports and convention facilities. The Tax Reform Act of 1986 subjects interest income from these bonds to the federal alternative minimum tax and makes the tax-exempt status of certain bonds dependent on the issuer’s compliance with specific requirements after the bonds are issued. As described above, the Fund may invest up to 20% of its assets in bonds whose income is subject to the federal alternative minimum tax. This means that a portion of the Fund’s distributions could be subject to the federal alternative minimum tax that applies to certain taxpayers.
The Fund may invest without limit in advance refunded bonds.
The Fund may invest without limitation in high-quality, short-term tax-free instruments.
The Fund may invest in privately placed securities, including those that are eligible for resale only among certain institutional buyers without registration, commonly known as “Rule 144A Securities.” Restricted securities that are determined to be illiquid may not exceed the Fund’s 15% limit on investments in illiquid securities.
The Fund may invest without limitation in municipal lease obligations, primarily through certificates of participation rated in the top four quality grades by S&P or another nationally recognized statistical rating agency. As with the Fund’s other investments, the Manager expects that investments in municipal lease obligations will be exempt from regular federal income taxes. The Fund will rely on the opinion of the bond issuer’s counsel for a determination of the bond’s tax-exempt status.
The Fund may invest in zero coupon bonds.
Credit quality restrictions for the Fund apply only at the time of purchase. The Fund may continue to hold a security whose quality rating has been lowered or, in the case of an unrated bond, after the Manager has changed its assessment of its credit quality.
The Fund may buy or sell securities on a when-issued or delayed-delivery basis; that is, paying for securities before delivery or taking delivery at a later date. The Fund will designate cash or securities in amounts sufficient to cover its obligations, and will value the designated assets daily.
Where the Manager feels there is a limited supply of appropriate investments, the Fund may invest more than 25% of its total assets in Municipal Obligations relating to similar types of projects or with other similar economic, business, or political characteristics (such as bonds of
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housing finance agencies or healthcare facilities). In addition, the Fund may invest more than 25% of its assets in industrial development bonds or, in the case of the Fund, pollution control bonds, which may be backed only by the assets and revenues of a nongovernmental issuer. The Fund will not, however, invest more than 25% of its total assets in bonds issued for companies in the same business sector.
The Fund may borrow money from banks as a temporary measure for extraordinary or emergency purposes but normally does not do so. The Fund will not borrow money in excess of one-third of the value of its assets.
In response to unfavorable market conditions, the Fund may invest in taxable instruments for temporary defensive purposes. These could include obligations of the US government, its agencies and instrumentalities, commercial paper, cash, certificates of deposit of domestic banks, repurchase agreements, reverse repurchase agreements, other cash equivalents, and other debt instruments. These investments may not be consistent with the Fund’s investment objective. To the extent that the Fund holds such investments, it may be unable to achieve its investment objective.
What are the principal risks of investing in the Fund?
Investing in any closed-end fund involves the risk that you may lose part or all of the money you invest. Over time, the value of your investment in the Fund will increase and decrease according to changes in the value of the securities in the Fund’s portfolio. An investment in the Fund may not be appropriate for all investors. The Fund’s principal risks include:
Net asset value discount risk — The risk that a closed-end investment company will trade at a discount from its net asset value (NAV).
Market risk — The risk that all or a majority of the securities in a certain market—such as the stock or bond market—will decline in value because of factors such as adverse political or economic conditions, future expectations, investor confidence, or heavy institutional selling.
Interest rate risk — The risk that the prices of bonds and other fixed income securities will increase as interest rates fall and decrease as interest rates rise. Interest rate changes are influenced by a number of factors, such as government policy, monetary policy, inflation expectations, and the supply and demand of bonds. Bonds and other fixed income securities with longer maturities or duration generally are more sensitive to interest rate changes. A fund may be subject to a greater risk of rising interest rates due to the current period of historically low interest rates.
Security risk — The risk that the value of an individual stock or bond will decline because of changing expectations for the performance of the individual company issuing the stock or bond (due to situations that could range from decreased sales to events such as a pending merger or actual or threatened bankruptcy).
High yield (junk bond) risk — The risk that high yield securities, commonly known as “junk bonds,” are subject to reduced creditworthiness of issuers, increased risk of default, and a more limited and less liquid secondary market. High yield securities may also be subject to greater price volatility and risk of loss of income and principal than are higher-rated securities. High yield bonds are sometimes issued by municipalities that have less financial strength and therefore have less ability to make projected debt payments on the bonds.
Industry and sector risk — The risk that the value of securities in a particular industry or sector will decline because of changing expectations for the performance of that industry or sector.
Geographic concentration risk — The risk that heightened sensitivity to regional, state, US territories or possessions (such as the Commonwealth of Puerto Rico, Guam, or the US Virgin Islands), and local political and economic conditions could adversely affect the holdings in and performance of a fund. There is also the risk that there could be an inadequate supply of municipal bonds in a particular state or US territory or possession. For a further discussion of geographic, credit and market risks, see Note 8 in “Notes to financial statements.”
Credit risk — The risk that an issuer of a debt security, including a governmental issuer or an entity that insures a bond, may be unable to make interest payments and/or repay principal in a timely manner.
Leveraging risk — The risk that certain fund transactions, such as the issuance of preferred shares, may give rise to leverage, causing a fund to be more volatile than if it had not been leveraged, which may result in increased losses to the fund.
Call risk — The risk that a bond issuer will prepay the bond during periods of low interest rates, forcing a fund to reinvest that money at interest rates that might be lower than rates on the called bond.
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Other Fund information (Unaudited)
Delaware Investments® National Municipal Income Fund
What are the principal risks of investing in the Fund? (continued)
Alternative minimum tax risk — If a fund invests in bonds whose income is subject to the alternative minimum tax, that portion of the fund’s distributions would be taxable for shareholders who are subject to this tax.
Government and regulatory risk — The risk that governments or regulatory authorities may take actions that could adversely affect various sectors of the securities markets and affect fund performance. For example, a tax-exempt security may be reclassified by the Internal Revenue Service or a state tax authority as taxable, and/or future legislative, administrative, or court actions could cause interest from a tax-exempt security to become taxable, possibly retroactively.
Liquidity risk — The possibility that investments cannot be readily sold within seven calendar days at approximately the price at which a fund has valued them.
IBOR risk — The risk that changes related to the use of the London Interbank Offered Rate (LIBOR) or similar interbank offered rates (“IBORs,” such as the Euro Overnight Index Average (EONIA)) could have adverse impacts on financial instruments that reference LIBOR or a similar rate. While some instruments may contemplate a scenario where LIBOR or a similar rate is no longer available by providing for an alternative rate setting methodology, not all instruments have such fallback provisions and the effectiveness of replacement rates is uncertain. The abandonment of LIBOR and similar rates could affect the value and liquidity of instruments that reference such rates, especially those that do not have fallback provisions. The use of alternative reference rate products may impact investment strategy performance.
Active management and selection risk — The risk that the securities selected by a fund’s management will underperform the markets, the relevant indices, or the securities selected by other funds with similar investment objectives and investment strategies. The securities and sectors selected may vary from the securities and sectors included in the relevant index.
Board Consideration of Investment Management Agreement at Meeting Held August 9-11, 2022
Delaware Investments National Municipal Income Fund
At a meeting held on August 9-11, 2022 (the “Annual Contract Renewal Meeting”), the Board of Trustees (the “Board”), including a majority of Trustees each of whom is not an “interested person” as defined under the Investment Company Act of 1940 (the “Independent Trustees”), approved the renewal of the Delaware Investments National Municipal Income Fund (the “Fund”) Investment Management Agreement with Delaware Management Company (“DMC”).
Prior to the Meeting, including at a Board meeting held in May 2022, the Trustees conferred extensively among themselves and with representatives of DMC about these matters. Also, the Board was assisted by the applicable Investment Committee, with each Investment Committee assisting the full Board in the discharge of its duties in reviewing investment performance and other matters throughout the year. The Independent Trustees were assisted in their evaluation of the Investment Management Agreement by independent legal counsel, from whom they received separate legal advice and with whom they met separately.
In providing information to the Board, DMC was guided by a detailed set of requests for information submitted to them by independent legal counsel on behalf of the Independent Trustees at the start of the Board’s annual contract renewal process earlier in 2022. In considering and approving the Investment Management Agreement, the Trustees considered the information they believed relevant, including but not limited to the information discussed below. The Board considered not only the specific information presented in connection with the Meeting, but also the knowledge gained over time through interaction with DMC about various topics. In this regard, the Board reviewed reports of DMC at each of its quarterly meetings, which included information about, among other things, Fund performance, investment strategies, and expenses. In addition, the Investment Committees confer with portfolio managers at various times throughout the year. In considering information relating to the approval of the Fund’s Investment Management Agreement, the Independent Trustees also received information from an independent fund consultant, JDL Consultants, LLC (“JDL”).
The Board did not identify any particular information or consideration that was all-important or controlling, and each individual Trustee may have attributed different weights to various factors.
After its deliberations, the Board unanimously approved the continuation of the Investment Management Agreement for a one-year term. The following summarizes a number of important, but not necessarily all, factors considered by the Board in support of its approval.
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Nature, extent, and quality of services. The Board received and considered various information regarding the nature, extent, and quality of the advisory services provided to the Fund by DMC under its Investment Management Agreement, and the experience of the officers and employees of DMC who provide these services, including the Fund’s portfolio manager. The Board’s review included consideration of DMC’s investment process and oversight and research and analysis capabilities, and its ability to attract and retain qualified investment professionals. The Board considered information regarding DMC’s programs for risk management, including investment, operational, liquidity, valuation, and compliance risks. The Board also considered the additional services provided to the Fund due to the fact that the Fund is a closed-end fund, including, but not limited to, leverage management and monitoring, evaluating, and, where appropriate, making recommendations with respect to the Fund’s trading discount, managed distribution program and distribution rates. The Board received information with respect to the cybersecurity program and business continuity plans of DMC and its affiliates. The Board also considered non-advisory services that DMC and its affiliates provide to the Delaware Funds, including third party oversight, transfer agent, internal audit, valuation, portfolio trading, and legal and compliance. The Board took into account the benefits to shareholders of investing in a Fund that is part of a family of funds managed by an affiliate of Macquarie Group Ltd. (“Macquarie”), the parent company of DMC, and the resources available to DMC as part of Macquarie’s global asset management business.
The Board concluded that, overall, it was satisfied with the nature, extent and quality of services provided (and expected to be provided) to the Fund by DMC.
Investment performance. The Board received and considered information with respect to the investment performance of the Fund, including performance reports and discussions with portfolio managers at meetings of the Board’s Investment Committees throughout the year as well as reports provided by Broadridge Financial Solutions, an independent investment company data provider (“Broadridge”), furnished for the Annual Contract Renewal Meeting. The Broadridge reports prepared for the Fund showed its investment performance in comparison to a group of similar funds (the “Performance Universe”). The Board received a description of the methodology used by Broadridge to select the funds in the Performance Universe. Comparative annualized performance for the Fund was shown for the past 1-, 3-, 5-, 10-year periods and since inception, as applicable, ended December 31, 2021.
The Performance Universe for the Fund consisted of the Fund and all leveraged closed-end general and insured municipal debt (leveraged) funds, regardless of asset size. The Broadridge report comparison showed that the Fund’s total return for the 1- and 3-year periods was above the median and for the 5-year period was below the median by one basis point for its Performance Universe. The Broadridge report also showed that the Fund outperformed its Lipper index for the 1- and 3-year periods and slightly underperformed its Lipper benchmark for the 5-year period. The Board noted that the Fund was generally performing in line with its Performance Universe and Lipper benchmark during the periods under review. The Board also noted that the Fund’s performance was ahead of its Lipper benchmark for the one period ended December 31, 2021.
Comparative expenses. The Board received and considered expense data for the Fund. Management provided the Board with information on pricing levels and fee structures for the Fund as of its most recently completed fiscal year. The Board also considered on the comparative analysis of contractual management fees and actual total expense ratios of the Fund versus contractual management fees and actual total expense ratios of a group of similar funds as selected by Broadridge (the “Expense Group”). In reviewing comparative costs, the Fund’s contractual management fee and the actual management fee (for common and leveraged assets) incurred by the Fund were compared with the contractual management fees (assuming all funds were similar in size to the Fund) and actual management fees, taking into account any applicable breakpoints and fee waivers, with the Fund’s expense universe, which is comprised of the Fund, its Expense Group and all other leveraged closed-end general and insured municipal debt (leveraged) funds, excluding outliers (the “Expense Universe”). The Fund’s total expenses were also compared with those of its Expense Universe.
The expense comparisons for the Fund showed that its actual management fee was below the median of its Expense Universe for both common and leveraged assets and its actual total expenses were below the median of its Expense Group average.
The Board also received and considered information about the nature and extent of services offered and fee rates charged by DMC to other types of clients with investment strategies similar to those of the Fund. In this regard, the Board received information about the significantly greater scope of services, and compliance, reporting and other legal burdens and risks of managing registered investment companies compared with those associated with managing assets of other types of clients, including third-party sub-advised fund clients, unregistered funds and separately managed accounts.
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Other Fund information (Unaudited)
Delaware Investments® National Municipal Income Fund
Board Consideration of Investment Management Agreement at Meeting Held August 9-11, 2022
Delaware Investments National Municipal Income Fund (continued)
Based on its consideration of the factors and information it deemed relevant, including those described here, the Board determined that the compensation payable to DMC under the Investment Management Agreement was reasonable.
Economies of scale. The Board received and considered information about the potential for DMC to realize economies of scale in the provision of management services to the Fund, the difficulties of calculating economies of scale at an individual Fund level and the extent to which potential scale benefits are shared with shareholders. The Board reviewed the Fund’s advisory fee pricing and structure. The Board noted that the Fund may also benefit from economies of scale through DMC’s investment in its business, including investments in business infrastructure, technology and cybersecurity.
Management profitability. The Board received and considered the Investment Management Profitability Analysis that addressed the overall profitability of DMC’s business in providing management and other services to the Fund and the Delaware Funds as a whole, including the methodology used by DMC in allocating costs for the purpose of determining profitability. The Board also reviewed a report prepared by JDL regarding DMC’s profitability as compared to certain peer fund complexes and the Independent Trustees discussed DMC’s profitability in such context with representatives from JDL. Based on its review, the Board determined that DMC’s profitability was not excessive in light of the nature, extent and quality of the services provided to the Fund.
Ancillary benefits. The Board received and considered information regarding the extent to which DMC and its affiliates might derive ancillary benefits from fund operations, including the potential for procuring additional business as a result of the prestige and visibility associated with its role as investment manager to the Delaware Funds; the benefits from allocation of fund brokerage to improve trading efficiencies; and the fees that various affiliates received for serving as transfer agent and for overseeing fund accounting and financial administration services to the Delaware Funds. The Board received information from DMC regarding its view of the performance of its affiliates in providing transfer agent and fund accounting and financial administration oversight services and the organizational structure employed to provide these services pursuant to their contracts with the Fund.
Based on its consideration of the factors and information it deemed relevant, including the costs of providing investment management and other services to the Fund and the ongoing commitment of DMC and its affiliates to the Fund, the Board did not find that any ancillary benefits received by DMC and its affiliates were unreasonable.
Conclusion. Based on its review, consideration and evaluation of all factors it believed relevant, including the above-described factors and conclusions, the Board, including all of the Independent Trustees, approved the continuation of DMC’s Investment Management Agreement for an additional one-year period.
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Proxy results
At the annual meeting on September 11, 2022, the shareholders of Delaware Investments National Municipal Income Fund voted to elect a Board of Trustees. A quorum was present and the votes passed with a majority of those shares. All shareholders of Delaware Investments National Municipal Income Fund vote together with respect to the election of each Trustee with one exception: The holders of preferred shares of Delaware Investments National Municipal Income Fund that have issued one or more classes of preferred shares have the exclusive right to separately elect two Trustees, Ms. Borowiec and Mr. Chow. The results of the voting at the meeting were as follows:
|
|
Common shareholders |
|
Preferred shareholders |
|
|
|
|
Shares voted |
|
|
|
Shares voted |
|
|
Shares |
|
withheld |
|
Shares |
|
withheld |
|
|
voted for |
|
authority |
|
voted for |
|
authority |
| Thomas L. Bennett |
|
16,396,630 |
|
8,043 |
|
1,350 |
|
0 |
| Jerome D. Abernathy |
|
16,486,236 |
|
8,043 |
|
1,350 |
|
0 |
| Ann D. Borowiec* |
|
N/A |
|
N/A |
|
1,350 |
|
0 |
| Joseph W. Chow* |
|
N/A |
|
N/A |
|
1,350 |
|
0 |
| H. Jeffrey Dobbs |
|
16,377,926 |
|
8,043 |
|
1,350 |
|
0 |
| John A. Fry |
|
16,416,303 |
|
11,958 |
|
1,350 |
|
0 |
| Joseph Harroz, Jr. |
|
16,431,959 |
|
11,958 |
|
1,350 |
|
0 |
| Sandra A.J. Lawrence |
|
16,411,949 |
|
8,043 |
|
1,350 |
|
0 |
| Shawn K. Lytle |
|
16,463,232 |
|
8,043 |
|
1,350 |
|
0 |
| Frances A. Sevilla-Sacasa |
|
16,366,890 |
|
11,958 |
|
1,350 |
|
0 |
| Thomas K. Whitford |
|
16,465,370 |
|
8,043 |
|
1,350 |
|
0 |
| Christianna Wood |
|
16,449,922 |
|
8,043 |
|
1,350 |
|
0 |
| Janet L. Yeomans |
|
16,400,763 |
|
8,043 |
|
1,350 |
|
0 |
*Exclusively elected by the Fund’s preferred shareholders.
35
Table of Contents
About the organization
This semiannual report is for the information of Delaware Investments® National Municipal Income Fund shareholders.
|
Board of trustees
Shawn K. Lytle
President and
Chief Executive Officer
Delaware Funds by Macquarie®
Jerome D. Abernathy
Managing Member
Stonebrook Capital Management, LLC
Thomas L. Bennett
Private Investor
Ann D. Borowiec
Former Chief Executive Officer
Private Wealth Management
J.P. Morgan Chase & Co.
Joseph W. Chow
Private Investor
H. Jeffrey Dobbs*
Former Global Sector Chairman
of Industrial Manufacturing
KPMG LLP
John A. Fry*
President
Drexel University
Joseph Harroz, Jr.
President
University of Oklahoma
Sandra A.J. Lawrence*
Former Chief Administrative Officer
Children's Mercy Hospitals and Clinics
*Audit committee member |
|
Frances A. Sevilla-Sacasa*
Former Chief Executive Officer
Banco Itaú International
Thomas K. Whitford
Chairman of the Board
Delaware Funds by Macquarie
Former Vice Chairman
PNC Financial Services Group
Christianna Wood
Chief Executive Officer and President
Gore Creek Capital, Ltd.
Janet L. Yeomans
Former Vice President and Treasurer
3M Company
Affiliated officers
David F. Connor
Senior Vice President,
General Counsel, and Secretary
Delaware Funds by Macquarie
Daniel V. Geatens
Senior Vice President and Treasurer
Delaware Funds by Macquarie
Richard Salus
Senior Vice President and
Chief Financial Officer
Delaware Funds by Macquarie
Investment manager
Delaware Management Company, a series of Macquarie Investment Management Business Trust (MIMBT)
Principal office of the Fund
610 Market Street
Philadelphia, PA 19106-2354
Independent registered public accounting firm
PricewaterhouseCoopers LLP
Two Commerce Square
Suite 1800
2001 Market Street
Philadelphia, PA 19103-7042 |
|
Registrar and stock transfer agent
Computershare, Inc.
480 Washington Blvd.
Jersey City, NJ 07310
866 437-0252
computershare.com/investor
For securities dealers and financial institutions representatives
800 362-7500
Website
delawarefunds.com/closed-end
Number of recordholders as of
September 30, 2022
55
Your reinvestment options
Delaware Investments National Municipal Income Fund offers an automatic dividend reinvestment program. If you would like to reinvest dividends, and shares are registered in your name, contact Computershare, Inc. at 866 437-0252. You will be asked to put your request in writing. If you have shares registered in “street” name, contact the broker/dealer holding the shares or your financial advisor. If you choose to receive your dividends in cash, you may now elect to receive them by ACH transfer. Contact Computershare at the number above for more information.
The 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. The Fund’s Forms N-PORT, as well as a description of the policies and procedures that the Fund uses to determine how to vote proxies (if any) relating to portfolio securities, are available without charge (i) upon request, by calling 866 437-0252; and (ii) on the SEC’s website at sec.gov. In addition, a description of the policies and procedures that the Fund uses to determine how to vote proxies (if any) relating to portfolio securities and the Schedules of Investments included in the Fund’s most recent Form N-PORT are available without charge on the Fund’s website at delawarefunds.com/closed-end.
Information (if any) regarding how the Fund voted proxies relating to portfolio securities during the most recently disclosed 12-month period ended June 30 is available without charge (i) through the Fund’s website at delawarefunds.com/proxy; and (ii) on the SEC’s website at sec.gov. |
36