Delaware National High-Yield Municipal Bond Fund

Objective

Delaware National High-Yield Municipal Bond Fund seeks a high level of current income exempt from federal income tax primarily through investment in medium- and lower-grade municipal obligations.

Strategy

The Fund primarily invests in high-yield US state and local municipal bonds of various maturities, the income from which is exempt from federal income taxes.

Key features

  • Income-driven, risk-controlled approach
  • Disciplined, bottom-up research-driven process
  • Experienced management team dedicated solely to municipal bond investing
Fund information
Inception date09/22/1986
Dividends paid (if any)Monthly
Capital gains paid (if any)December
Fund identifiers
NASDAQCXHYX
CUSIP928928241
Investment minimums
Initial investment$1,000
Subsequent Investments$100
Systematic withdrawal balance$5,000
Account features
Payroll DeductionYes
IRAsNo

On Sept. 25, 2014, Class B shares of the Fund converted to Class A shares.

The performance quoted represents past performance and does not guarantee future results. Investment return and principal value of an investment will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance quoted.

Total returns may reflect waivers and/or expense reimbursements by the manager and/or distributor for some or all of the periods shown. Performance would have been lower without such waivers and reimbursements.

Average annual total return

as of month-end (01/31/2018)

as of quarter-end (12/31/2017)

YTD1 year3 year5 year10 yearLifetimeInception date
NAV (view definition)-0.73%7.55%3.78%4.14%5.76%6.25%09/22/1986
Max offer price-5.17%2.73%2.21%3.18%5.27%6.10%
Bloomberg Barclays Municipal Bond Index-1.18%3.52%1.97%2.69%4.20%n/a
1 year3 year5 year10 yearLifetimeInception date
NAV (view definition)1.89%9.13%4.78%4.54%5.93%6.29%09/22/1986
Max offer price-2.70%4.22%3.18%3.58%5.44%6.14%
Bloomberg Barclays Municipal Bond Index0.75%5.45%2.98%3.02%4.46%n/a

Returns for less than one year are not annualized.

Class A shares have a maximum up-front sales charge of 4.50% and are subject to an annual distribution fee.

Index performance returns do not reflect any management fees, transaction costs, or expenses. Indices are unmanaged and one cannot invest directly in an index.

Expense ratio
Gross0.94%
Net0.85%

Net expense ratio reflects a contractual waiver of certain fees and/or expense reimbursements from Dec. 29, 2017 through Dec. 29, 2018. Please see the fee table in the Fund’s prospectus for more information.

Quarterly total returns @ NAV
Year1st quarter2nd quarter3rd quarter4th quarterAnnual return
20172.73%2.54%1.67%1.89%9.13%
20162.04%4.29%0.20%-5.52%0.74%
20151.56%-0.81%1.66%2.18%4.64%
20145.25%4.75%2.36%2.66%15.86%
20131.19%-5.17%-2.69%0.32%-6.33%
20125.13%3.94%3.71%1.90%15.47%
2011-1.54%5.09%4.38%2.22%10.40%
20103.17%2.99%5.18%-6.00%5.04%
20097.04%7.65%14.79%-0.59%31.49%
2008-1.82%0.93%-4.84%-14.15%-19.04%
Portfolio characteristics - as of 01/31/2018Bloomberg Barclays Municipal Bond Index
Number of holdings51552,866
Portfolio turnover (last fiscal year)27%n/a
Modified duration (view definition)6.30 years5.11 years
Effective maturity (weighted average) (view definition)9.27 years12.82 years
Yield to maturity (view definition)4.79%3.20%
Average market price (view definition)$107.07n/a
Average coupon (view definition)5.66%4.70%
Yield to worst (view definition)4.05%2.57%
Alternative minimum tax10.72%3.85%
SEC 30-day yield with waiver (view definition)3.15%
SEC 30-day yield without waiver (view definition)3.09%
Annualized standard deviation, 3 years (view definition)4.04n/a
Portfolio composition as of 01/31/2018Total may not equal 100% due to rounding.
Municipal bonds98.1%
Cash and cash equivalents1.9%

Cash and cash equivalents include accruals on bonds and long-term receivables.

Top 10 fixed income holdings as of 01/31/2018

Holdings are as of the date indicated and subject to change.

List excludes cash and cash equivalents.

Holding% of portfolio
Buckeye Tobacco Settlement Financing Authority 5.875 6/1/20472.77%
Tobacco Settlement Financing Corp. NJ 5.000 6/1/20411.72%
County of Jefferson AL Sewer Revenue 6.500 10/1/20531.55%
California Statewide Communities Development Authority 5.500 12/1/20541.12%
Salt Verde Financial Corp. 5.000 12/1/20371.11%
Buckeye Tobacco Settlement Financing Authority 6.500 6/1/20471.04%
State of Illinois 5.000 11/1/20280.93%
New York Liberty Development Corp. 7.250 11/15/20440.92%
Golden State Tobacco Securitization Corp. 5.750 6/1/20470.81%
Moon Industrial Development Authority 6.125 7/1/20500.72%
Total % Portfolio in Top 10 holdings12.69%

Fixed income sectors as of 01/31/2018

List may exclude cash, cash equivalents, and exchanged-traded funds (ETFs) that are used for cash management purposes. Please see the Fund’s complete list of holdings for more information.
SectorFundBenchmark
Hospital26.6%8.8%
IDR/PCR (corporate)18.9%2.6%
Education12.9%6.7%
Transportation7.7%15.5%
Special tax7.6%9.4%
Pre-refunded7.3%7.9%
Leasing4.6%6.2%
Local general obligations4.2%12.9%
Water & sewer3.1%8.5%
State general obligations3.0%14.6%
Resource recovery1.1%0.1%
Housing0.6%1.5%
Electric0.5%5.3%
Credit quality as of 01/31/2018
RatingFundBenchmark
AAA2.0%14.1%
AA7.6%53.6%
A7.5%24.2%
BBB25.9%8.2%
BB14.1%0.0%
B10.0%0.0%
CCC0.3%0.0%
Not rated32.5%0.0%

Total may not equal 100% due to rounding. The Fund’s investment manager, Delaware Management Company (DMC), a series of Macquarie Investment Management Business Trust, receives “Credit Quality” ratings for the underlying securities held by the Fund from three “nationally recognized statistical rating organizations” (NRSROs): Standard & Poor’s (S&P), Moody’s Investors Service, and Fitch, Inc. The credit quality breakdown is calculated by DMC based on the NRSRO ratings. If two or more NRSROs have assigned a rating to a security the higher rating (lower value) is used. If only one NRSRO rates a security, that rating is used. Securities that are unrated by any of the three NRSROs are included in the “not rated” category when applicable. Unrated securities do not necessarily indicate low quality. More information about securities ratings is contained in the Fund’s Statement of Additional Information.

Top 10 states as of 01/31/2018
State% of portfolio
California14.1%
Illinois9.3%
New York8.0%
Texas7.3%
Ohio6.3%
New Jersey5.9%
Arizona5.1%
Pennsylvania4.8%
Alabama3.5%
Colorado3.5%
Distribution history - annual distributions (Class A)1,2
Distributions ($ per share)
YearCapital gains3Net investment
income
20180.0000.035
20170.0000.456
20160.0000.411
20150.0000.412
20140.0000.434
20130.0000.445
20120.0000.482
20110.0000.478
20100.0000.500
20090.0000.511
20080.0000.487

1If a Fund makes a distribution from any source other than net income, it is required to provide shareholders with a notice disclosing the source of such distribution (each a "Notice"). The amounts and sources of distributions reported above and in each Notice are only estimates and are not provided for tax reporting purposes. Each Fund will send each shareholder a Form 1099 DIV for the calendar year that will provide definitive information on how to report the Fund's distributions for federal income tax purposes. The information in the table above will not be updated to reflect any subsequent recharacterization of dividends and distributions. Click here to see recent Notices pertaining to the Fund (if any).

2Information on return of capital distributions (if any) is only provided from June 1, 2014 onward.

3Includes both short- and long-term capital gains.

Client-focused consistency

Get a firsthand look at the Delaware Investments municipal bond group and see what drives its passion for performance.

Watch the video

Joe Baxter

Joe Baxter  

Senior Vice President, Senior Portfolio Manager, Head of Municipal Bond Department — Macquarie Investment Management, Americas

Start date on the Fund: May 2003

Years of industry experience: 33

(View bio)


Steve Czepiel

Steve Czepiel  

Senior Vice President, Senior Portfolio Manager

Start date on the Fund: July 2007

Years of industry experience: 36

(View bio)


Greg Gizzi

Greg Gizzi 

Senior Vice President, Senior Portfolio Manager

Start date on the Fund: December 2012

Years of industry experience: 33

(View bio)


You may qualify for sales-charge discounts if you and your family invest, or agree to invest in the future, at least $100,000 in Delaware Funds by Macquarie. More information about these and other discounts is available from your financial intermediary, in the Fund's Prospectus under the section entitled "About your account," and in the Fund's statement of additional information (SAI) under the section entitled "Purchasing Shares."

The table below describes the fees and expenses that you may pay if you buy and hold shares of the Fund.

Shareholder fees
Maximum sales charge (load) imposed on purchases as a percentage of offering price4.50%
Maximum contingent deferred sales charge (load) as a percentage of original purchase price or redemption price, whichever is lowernone
Annual fund operating expenses
Management fees0.52%
Distribution and service (12b-1) fees0.25%
Other expenses0.17%
Total annual fund operating expenses0.94%
Fee waivers and expense reimbursements(0.09%)
Total annual fund operating expenses after fee waivers and expense reimbursements0.85%

1The Fund's investment manager, Delaware Management Company (Manager), has contractually agreed to waive all or a portion of its investment advisory fees and/or pay/reimburse expenses (excluding any 12b-1 fees, acquired fund fees and expenses, taxes, interest, inverse floater program expenses, short sale dividend and interest expenses, brokerage fees, certain insurance costs, and nonroutine expenses or costs, including, but not limited to, those relating to reorganizations, litigation, conducting shareholder meetings, and liquidations) in order to prevent total annual fund operating expenses from exceeding 0.60% of the Fund's average daily net assets from Dec. 29, 2017 through Dec. 29, 2018. These waivers and reimbursements may only be terminated by agreement of the Manager and the Fund.

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Delaware National High-Yield Municipal Bond Fund Quarterly commentary December 31, 2017

Delaware National High-Yield Municipal Bond Fund (Institutional Class shares) outperformed its benchmark by 129 basis points, returning 2.04% versus 0.75% for its benchmark, the Bloomberg Barclays Municipal Bond Index, for the fourth quarter of 2017. The Fund posted a 2.20% gross return. Delaware National High-Yield Municipal Bond Fund (Institutional Class shares) outperformed the average return within its Lipper peer group (High-Yield Municipal Debt Funds) by 80 basis points. (A basis point equals one-hundredth of a percentage point.)

Average annual total returns (%)

as of December 31, 2017
4Q171 1y 3y 5y 10y Lifetime Inception date Gross Net2
Institutional Class 2.04 9.55 5.06 4.81 9.51 12/31/08 0.69 0.60
Class A (at NAV) 1.89 9.13 4.78 4.54 5.93 6.29 9/22/86 0.94 0.85
Class A (at Offer)3 -2.70 4.22 3.18 3.58 5.44 6.14 9/22/86 0.94 0.85
Bloomberg Barclays Municipal Bond Index 0.75 5.45 2.98 3.02 4.46
Lipper High-Yield Municipal Debt Funds Average 1.24 7.79 4.27 4.07 4.42

1. Returns for less than one year are not annualized. 2. Net expense ratio reflects a contractual waiver of certain fees and/or expense reimbursements from Dec. 29, 2017 through Dec. 29, 2018. Please see the fee table in the Fund’s prospectus for more information. 3. Includes maximum 4.50% upfront sales charge.

The performance quoted represents past performance and does not guarantee future results. Investment return and principal value of an investment will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance quoted. Performance data current to the most recent month end may be obtained by calling 800 523-1918 or visiting delawarefunds.com/performance.

Total returns reflect waivers by the manager and/or distributor for some of all periods shown. Performance would have been lower without such waivers.

Performance at “NAV” assumes that no front-end sales charge applied or the investment was not redeemed. Performance “at offer” assumes that a front-end sales charge applied to the extent applicable.

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

Market review

The municipal bond market had positive returns for the fourth quarter of 2017 as intermediate- and long-term yields fell. The Bloomberg Barclays Municipal Bond Index returned 0.75% for the quarter against the backdrop of lower Treasury prices and the continued strong performance of the equity market. While positive growth figures and monetary policy affected markets, tax legislation was the primary driver within the municipal market. Technical factors also influenced the markets throughout the period.

The municipal yield curve flattened by 86 basis points during the quarter as yields rose dramatically on the short end and declined on the long end of the curve. AAA yields, as measured by the Thomson Reuters Municipal Market Data (MMD) scale, rose 56 basis points on 2-year bonds and fell 30 basis points on 30-year bonds. Credit spreads tightened by 5 basis points. The Treasury yield curve also flattened for the quarter, by 52 basis points. The 2-year Treasury rose 41 basis points while the 30-year Treasury declined 11 basis points. As a result of these movements, ratios underperformed on the short end while outperforming in the intermediate and long portions of the curve.

Fourth-quarter supply increased 33% relative to the fourth quarter 2016. The bulk of the new issuance came after Thanksgiving. A record-breaking $62.5 billion was issued in December. The catalyst for increased issuance was the threat of elimination of private activity bonds (PABs) and/or advance refunding bonds within early versions of tax legislation. After the US House and Senate released their tax plans in early November with language regarding these eliminations, the market sold off in anticipation of a “pull forward” of 2018 issuance into December. However, as weekly issuance picked up during that period, it was met by strong demand. According to Lipper, municipal mutual fund flows took in approximately $5.0 billion in the fourth quarter. Of the major fund categories, intermediate funds received the most, at roughly $3.4 billion.

On Dec. 22, President Trump signed into law the revised tax legislation that Congress had passed two days earlier. While preliminary elimination language within the tax bill immediately influenced the market, the finalized tax plan had a few provisions that could have long-term effects on the municipal market. While PABs were spared, advance refundings were eliminated. This could have a structural impact on the market in the form of lower coupons and/or short call date issuance, as well as a reduction in issuance by up to 10%. The top individual federal bracket will drop from 39.6% to 37%. State and local tax (SALT) deductions will be capped at $10,000, which could affect the in-state demand for high tax states such as California or New York. We believe this could have a long-term impact on credit, as governments may find ballot-based initiatives more difficult to get approved. The corporate tax rate was also cut from 35% to 21%. We believe this provision could diminish demand from corporate holders such as banks and insurance companies.

Although tax reform dominated the headlines, both the domestic and foreign markets reported strong economic growth throughout the fourth quarter. In October, the European Central Bank (ECB) announced the tapering of its monthly purchases starting in 2018 amid a healthy growth backdrop. Domestically, the final estimate of third-quarter gross domestic product (GDP) growth printed at 3.2%. The US economy has now had two consecutive quarters of more than 3% growth. Unemployment remained low. Despite the growth, inflation remained in check throughout the period. The core personal consumption expenditures (PCE) year-over-year figure was 1.5%, below the Federal Reserve’s 2% inflation target.

The Federal Open Market Committee (FOMC) raised interest rates in December, a move widely expected by the market. The World Interest Rate Probability (WIRP) calculation indicated a 70% probability of a December hike at the start of the quarter. That number increased to a 98% probability by the end of November. The FOMC also raised its 2018 economic growth forecast and indicated three hikes for 2018.

As previously noted, the Bloomberg Barclays Municipal Bond Index returned 0.75%, outperforming the Bloomberg Barclays US Aggregate Index, Bloomberg Barclays US Treasury Index, Bloomberg Barclays US Corporate High-Yield Index, and Bloomberg Barclays US Government/Credit Index (see returns below). The Bloomberg Barclays High-Yield Municipal Bond Index returned 1.83%. High yield Tobacco was the primary driver of this index, making up roughly 22% of the index and returning 2.91% for the quarter. Meanwhile, Puerto Rico continued to be a drag within this index, returning -8.31%.

Following are quarterly and year-to-date returns across major market indices:

4Q17 2017
Bloomberg Barclays Municipal Bond Index 0.75% 5.45%
Bloomberg Barclays US Treasury Index 0.05% 2.31%
Bloomberg Barclays US Aggregate Index 0.39% 3.54%
Bloomberg Barclays US Government/Credit Index 0.49% 4.00%
Bloomberg Barclays US Corporate High-Yield Index 0.47% 7.50%
Dow Jones Industrial Average 10.96% 28.11%
S&P 500® Index 6.64% 21.83%

Data: Bloomberg. Returns for less than one year are not annualized.

Market statistics

During the fourth quarter, 5-, and 10-year US Treasury yields rose by 29 and 9 basis points, respectively, while the 30-year US Treasury yield fell by 11 basis points. During this same period, 5-year municipal bond yields rose by 33 basis points, while 10- and 30-year maturities fell by 2 and 30 basis points, respectively.

As shown in the table below, these changes resulted in 5-year municipal securities underperforming US Treasurys, while 10- and 30-year municipal securities outperformed US Treasurys:

MMD AAA / US Treasury ratios

Maturity 9/29/17 12/29/17
5-year 70.31% 76.02%
10-year 86.21% 82.16%
30-year 99.65% 92.70%

Data: Thomson Reuters

The municipal yield curve, as measured by the spread between 2- and 30-year Thomson Reuters MMD AAA yields, flattened by 86 basis points, to 98 basis points. Two-year high-grade tax-exempt bond yields rose by 56 basis points for the period, while 30-year high-grade tax-exempt yields decreased by 30 basis points. (Data: Thomson Reuters.)

The strongest-performing maturity segment in the Bloomberg Barclays Municipal Bond Index was the long portion (22-plus years), which generated a 2.23% return. The weakest performing maturity segment was the 1-year portion (bonds with maturities of 1-2 years), which returned -0.38%. (Data: Barclays.)

BBB-rated securities led the market during the fourth quarter, returning 1.41%. Credit spreads, as measured by MMD yields on 30-year BBB-rated general obligation (GO) securities minus 30-year AAA-rated GO securities, tightened by roughly 5 basis points. At the end of the fourth quarter, the spread was 80 basis points.

The Bloomberg Barclays Municipal Bond Index total return by rating for the quarter, as well as that for the Bloomberg Barclays High-Yield Municipal Bond Index (which represents non-investment-grade bonds), was as follows:

Bloomberg Barclays Municipal Bond Index
AAA 0.51%
AA 0.65%
A 0.89%
BBB 1.41%
Bloomberg Barclays High-Yield Municipal Bond Index 1.83%

Data: Barclays

The hospital sector returned 1.46% and was the strongest performing sector within the Bloomberg Barclays Municipal Bond Index. The state GO sector was the weakest performer, returning 0.36%.

Municipal supply was approximately $144.6 billion for the fourth quarter. Year-to-date supply was down 3.4% from 2016 year-to-date supply. (Source: Municipal Bond Buyer.)

Within the Fund

The long bond segment (22-plus years) was the largest contributor to Fund performance for the quarter. This was the strongest performing maturity segment within the benchmark, returning 2.23%. The Fund was 44.50 percentage points overweight and outperformed with a 2.44% return in this part of the curve. Additionally, the Fund’s 55.66% out-of-benchmark position in below-investment-grade bonds contributed to performance for the period, returning 2.53% versus the benchmark return of 0.75% and the Bloomberg Barclays High-Yield Municipal Bond Index return of 1.83%.

Pre-refunded bonds detracted modestly from Fund performance for the quarter. These bonds returned -0.95% for the Fund while the index’s pre-refunded segment returned -0.51%. The Fund was market weight in this sector.

Outlook

For 2018, both fiscal and monetary policy are expected to be consistent with an environment of rising interest rates. Tax cuts are intended to lead to higher GDP growth, allowing the US economy to break out of the approximate 2% growth rate it has been stuck in for the past few years. The Fed projects that it will raise short-term interest rates three times in 2018, and it is expected to be joined by other central banks around the globe in removing accommodative monetary policy. These policy moves are generally consistent with rising interest rates and flattening yield curves, whereby short-term rates rise more than long-term rates.

These fundamental economic policies leading to rising interest rates should be somewhat offset by favorable technical conditions in the municipal bond market. Because of tax reform, the fourth quarter of 2017 saw considerable new-issue supply, which should reinforce an already strong technical environment in early 2018 by reducing available new-issue supply when demand is high due to coupon and maturity reinvestment.

These fundamental and technical conditions could result in modestly higher municipal bond yields, a flatter yield curve, and stronger performance of lower-rated securities. Lower-rated securities tend to outperform higher-rated securities during periods of modest interest rate hikes as their higher income somewhat offsets the price declines of rising rates and they may also experience spread tightening.

In our view, our philosophy of income being the predominant driver of total return and our portfolio positioning of lower-rated bonds and longer-term maturities should perform well on a relative basis under the moderate rising interest rate environment described above.

We believe the risk to our forecast is if rates rise higher and more swiftly. Typically this would lead to heavy municipal bond fund outflows and significantly lower prices — a so-called tantrum. We should point out that the last few times this occurred in the municipal market, it created an attractive buying opportunity and entry point into the market. However, a fixed income market tantrum is not our basic expectation.

Index definitions

Unless otherwise noted, the Source of statistical information in this document was Bloomberg and Thomas Reuters Municipal Market Data (MMD).

This document may mention bond ratings published by nationally recognized statistical rating organizations (NRSROs) Standard & Poor’s, Moody’s Investors Service, and Fitch, Inc. For securities rated by an NRSRO other than S&P, the rating is converted to the equivalent S&P credit rating. Bonds rated AAA are rated as having the highest quality and are generally considered to have the lowest degree of investment risk. Bonds rated AA are considered to be of high quality, but with a slightly higher degree of risk than bonds rated AAA. Bonds rated A are considered to have many favorable investment qualities, though they are somewhat more susceptible to adverse economic conditions. Bonds rated BBB are believed to be of medium-grade quality and generally riskier over the long term. Bonds rated BB, B, and CCC are regarded as having significant speculative characteristics, with BB indicating the least degree of speculation of the three.

The Bloomberg Barclays Municipal Bond Index measures the total return performance of the long-term investment grade tax-exempt bond market.

The Lipper High-Yield Municipal Debt Funds Average compares funds that invest at least 50% of assets in lower rated municipal debt issues.

The Bloomberg Barclays High-Yield Municipal Bond Index measures the total return performance of the long-term, non-investment-grade tax-exempt bond market.

The Bloomberg Barclays US Aggregate Index is a broad composite that tracks the investment grade domestic bond market.

The Bloomberg Barclays US Treasury Index measures the performance of US Treasury bonds and notes that have at least one year to maturity.

The Bloomberg Barclays US Government/Credit Index is composed of investment grade corporate and US government debt securities with at least one year to maturity.

The Bloomberg Barclays US Corporate High-Yield Index is composed of US dollar–denominated, non-investment-grade corporate bonds for which the middle rating among Moody’s Investors Service, Inc., Fitch, Inc., and Standard & Poor’s is Ba1/BB+/BB+ or below.

The Dow Jones Industrial Average is an often-quoted market indicator that comprises 30 widely held US blue-chip stocks.

The S&P 500 Index measures the performance of 500 mostly large-cap stocks weighted by market value, and is often used to represent performance of the US stock market.

Index returns do not reflect management fees, transaction costs, or expenses. Indices are unmanaged, and one cannot invest directly in an index.

[347145] 01/18

The views expressed represent the Manager’s assessment of the Fund and market environment as of the date indicated, and should not be considered a recommendation to buy, hold, or sell any security, and should not be relied on as research or investment advice. Information is as of the date indicated and subject to change.

Document must be used in its entirety.

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 clicking the prospectus link located in the right-hand sidebar or calling 800 523-1918. Investors should read the prospectus and the summary prospectus carefully before investing.

Investing involves risk, including the possible loss of principal.

Fixed income securities and bond funds can lose value, and investors can lose principal, as interest rates rise. They also may be affected by economic conditions that hinder an issuer’s ability to make interest and principal payments on its debt.

The Fund may also be subject to prepayment risk, the risk that the principal of a fixed income security that is held by the Fund may be prepaid prior to maturity, potentially forcing the Fund to reinvest that money at a lower interest rate.

High yielding, non-investment-grade bonds (junk bonds) involve higher risk than investment grade bonds.

Substantially all dividend income derived from tax-free funds is exempt from federal income tax. Some income may be subject to state or local taxes and/or the federal alternative minimum tax (AMT) that applies to certain investors. Capital gains, if any, are taxable.

Duration number will change as market conditions change. Therefore, duration should not be solely relied upon to indicate a municipal bond fund’s potential volatility.

All third-party marks cited are the property of their respective owners.

Not FDIC Insured | No Bank Guarantee | May Lose Value

Fund Finder

Daily pricing (as of 02/16/2018)

Class APriceNet change
NAV$10.92no chg
Max offer price$11.43n/a

Total net assets (as of 01/31/2018)

$1.3 billion all share classes

Overall Morningstar RatingTM

 
Class A shares (as of 01/31/2018)
Class ANo. of funds
Overall4149
3 Yrs3149
5 Yrs3122
10 Yrs585
Morningstar categoryHigh Yield Muni

(View Morningstar disclosure)

The Morningstar rating is based on risk-adjusted returns.

Morningstar ranking (as of 01/31/2018)

YTD ranking109 / 197
1 year37 / 173
3 years55 / 149
5 years38 / 122
10 years1 / 85
Morningstar categoryHigh Yield Muni

(View Morningstar disclosure)

The Morningstar ranking is based on historical total returns.

Lipper ranking (as of 01/31/2018)

YTD ranking97 / 184
1 year38 / 160
3 years51 / 137
5 years39 / 115
10 years1 / 79
Lipper classificationLipper High Yield Municipal Debt Funds Average

(View Lipper disclosure)

The Lipper ranking is based on historical total returns.

Benchmark, peer group

Bloomberg Barclays Municipal Bond Index (view definition)

Morningstar High-Yield Muni Category (view definition)

Lipper High Yield Municipal Debt Funds Average (view definition)

Additional information