AMT percentages

The alternative minimum tax (AMT) was created for taxpayers who are eligible for certain tax deductions from their adjusted gross income. With the AMT, many deductions and credits normally allowed are eliminated for specific taxpayers.

A shareholder can determine if the AMT applies to him or her by completing the AMT calculation on IRS Form 6251. The instructions for Form 6251 will assist shareholders with calculating their AMT. A percentage of the income earned on the tax-exempt funds may be subject to the AMT. The information below is for calendar year 2019.

Percentage of income subject to AMT for 2019

Fund* Percentage of interest income
Delaware Tax-Exempt Income Fund
(formerly, First Investors Tax Exempt Income Fund)
8.46%
Delaware Tax-Exempt Opportunities Fund
(formerly, First Investors Tax Exempt Opportunities Fund)
8.25%
Delaware Tax-Free California II Fund
(formerly, First Investors California Tax Exempt Fund)
4.92%
Delaware Tax-Free New Jersey Fund
(formerly, First Investors New Jersey Tax Exempt Fund)
3.91%
Delaware Tax-Free New York II Fund
(formerly, First Investors New York Tax Exempt Fund)
5.69%
Delaware Tax-Free Oregon Fund
(formerly, First Investors Oregon Tax Exempt Fund)
3.94%
Source: Delaware Funds® by Macquarie

* On April 6, 2019, Foresters Investment Management Company, Inc. (FIMCO), the investment adviser to the First Investors Funds, entered into an agreement with Macquarie Management Holdings, Inc. (MMHI), a leading global investment management company, whereby MMHI, on behalf of its affiliate Delaware Management Company (DMC), a series of Macquarie Investment Management Business Trust (Macquarie), would acquire FIMCO’s asset management business (the “Transaction”). In connection with the Transaction, the Board of Trustees of the First Investors Trusts approved, pursuant to an Agreement and Plan of Reorganization (the “Agreement”), the transfer of all assets and liabilities of each First Investors Fund to a corresponding, newly formed fund (each, an “Acquiring Fund,” and collectively, the “Acquiring Funds”) in the Delaware Funds by Macquarie family of funds (each, a “Reorganization” and together, the “Reorganizations”). The requisite approval of each Reorganization from shareholders of each First Investors Fund was obtained and each Acquiring Fund is currently managed by DMC. Each Acquiring Fund has the same or substantially the same investment objective and the same or similar principal investment strategies and principal risks as the corresponding First Investors Fund. The Transaction closed on Oct. 4, 2019 (the “Closing Date”). Information, including without limitation historical holdings and performance information, relating to the Acquiring Funds for periods prior to the Closing Date has been provided by FIMCO and is attributable to the Acquired Funds.

Investing involves risk, including the possible loss of principal.

Carefully consider the Fund’s investment objectives, risk factors, charges, and expenses before investing. This and other information can be found in the Fund’s prospectus and its summary prospectus, which may be obtained by visiting delawarefunds.com/literature or calling 800 523-1918. Investors should read the prospectus and the summary prospectus carefully before investing.

The information contained in the Tax Center is not intended to be legal or tax advice. If you need assistance preparing your tax return, please consult a tax advisor.

Information may be abridged and therefore incomplete. Any discussion pertaining to taxes in this communication (including attachments) may be part of the promotion or marketing of a product. Advice (if any) related to federal taxes that is contained in this communication (including attachments) is not intended or written to be used, and cannot be used, for the purpose of avoiding penalties under the Internal Revenue Code. Individuals should seek advice based on their own particular circumstances from an independent tax advisor.