Delaware Tax-Exempt Income Fund** (formerly, First Investors Tax Exempt Income Fund)

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 date08/03/1977
Dividends paid (if any)Monthly
Capital gains paid (if any)Annually
Fund identifiers
NASDAQFITAX
CUSIP245912878
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.

Please click below to view Fund performance:

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 (10/31/2019)

as of quarter-end (09/30/2019)

YTD1 year3 year5 year10 yearLifetimeInception date
NAV (view definition)5.63%7.41%2.35%2.34%3.61%n/a08/03/1977
Max offer price1.39%3.05%0.95%1.51%3.18%n/a
Bloomberg Barclays 3-15 Year Blend Municipal Bond Index6.22%8.64%3.27%3.17%4.01%n/a
Bloomberg Barclays 1-15 Year Municipal Index5.86%8.12%3.11%2.98%3.73%n/a
ICE BofAML Municipal Securities Master Index7.19%9.65%3.60%3.64%4.57%n/a
1 year3 year5 year10 yearLifetimeInception date
NAV (view definition)1.33%6.86%2.15%2.46%3.36%n/a08/03/1977
Max offer price-2.73%2.56%0.76%1.63%2.94%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
Gross0.89%
Net0.79%

Net expense ratio reflects a contractual waiver of certain fees and/or expense reimbursements from Oct. 4, 2019 through Oct. 31, 2021. Please see the fee table in the Fund’s prospectus for more information.

Quarterly total returns @ NAV
Year1st quarter2nd quarter3rd quarter4th quarterAnnual return
2019n/an/a1.33%n/an/a

Please click here to view monthly holdings.

Portfolio characteristics - as of 10/31/2019
Number of holdings135n/a
Modified duration (view definition)4.67 yearsn/a
Effective maturity (weighted average) (view definition)5.61 yearsn/a
Yield to maturity (view definition)3.38%n/a
Average market price (view definition)$115.39n/a
Average coupon (view definition)5.22%n/a
Yield to worst (view definition)1.77%n/a
Alternative minimum tax2.08%n/a
SEC 30-day yield with waiver (view definition)1.18%
SEC 30-day yield without waiver (view definition)1.09%

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

Top 10 fixed income holdings as of 10/31/2019

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

List excludes cash and cash equivalents.

Holding% of portfolio
New York N Y City Mun Wtr Fin 6.000 6/15/20214.18%
New York ST Twy Auth Gen Rev 5.000 1/1/20312.31%
Superior wi - Midwest Energy 6.900 8/1/20212.31%
Salt Lake City Utah Arpt Rev 5.000 7/1/20362.13%
ny ST Dorm Nyu 5.750 7/1/20272.12%
Utility Debt Securitization AU 5.000 12/15/20372.10%
New York ST Urban Dev Corp. Rev 5.000 3/15/20352.09%
Massachusetts ST Sch Bldg Auth 5.000 8/15/20372.07%
District Columbia 5.000 6/1/20342.03%
San Antonio Tex Indpt Sch Dist 5.000 8/15/20291.82%
Total % Portfolio in Top 10 holdings23.16%
Fixed income sectors as of 10/31/2019

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.

SectorFund
Transportation24.5%
Special Tax20.8%
State GO11.4%
Education7.8%
Wtr/Swr7.2%
Electric5.2%
Local GO5.1%
Lease5.0%
IDR/PCR (corporate)4.5%
Healthcare3.7%
PRE/ETM2.9%
Housing0.2%
Resource Recovery0.1%
Distribution history - annual distributions (Class A)1,2
Distributions ($ per share)
YearCapital gains3Net investment
income
20190.0000.044
20180.0000.000
20170.0000.000
20160.0000.000
20150.0000.000
20140.0000.000
20130.0000.000
20120.0000.000
20110.0000.000
20100.0000.000
20090.0000.000

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.

Greg Gizzi

Greg Gizzi 

Managing Director, Head of Municipal Bonds, Senior Portfolio Manager

Start date on the Fund: October 2019

Years of industry experience: 35

(View bio)


Steve Czepiel

Steve Czepiel 

Managing Director, Head of Municipal Bonds Portfolio Management, Senior Portfolio Manager

Start date on the Fund: October 2019

Years of industry experience: 37

(View bio)


Jake Van Roden

Jake van Roden 

Senior Vice President, Head of Municipal Trading, Portfolio Manager

Start date on the Fund: October 2019

Years of industry experience: 15

(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 price2.75%
Maximum contingent deferred sales charge (load) as a percentage of original purchase price or redemption price, whichever is lowernone
Annual fund operating expenses
Management fees0.50%
Distribution and service (12b-1) fees0.25%
Other expenses0.14%
Total annual fund operating expenses0.89%
Fee waivers and expense reimbursements(0.10%)
Total annual fund operating expenses after fee waivers and expense reimbursements0.79%

1The Fund’s distributor, Delaware Distributors, L.P. (Distributor), has contracted to limit the Class A shares’ 12b-1 fees to no more than 0.25% of average daily net assets from Oct. 4, 2019 through Oct. 31, 2021. This waiver may be terminated only by agreement of the Distributor and the Fund.

2The 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 acquired fund fees and expenses, taxes, interest, 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 0.92% of the Fund’s average daily net assets from Oct. 4, 2019 through Oct. 31, 2021. These waivers and reimbursements may only be terminated by agreement of the Manager and the Fund.

*The Fund changed its primary broad-based securities index to the Bloomberg Barclays 3-15 Year Blend Municipal Bond Index as of Oct. 4, 2019. The Fund had previously changed its primary broad-based securities index to the Bloomberg Barclays 1-15 Year Municipal Index as of Jan. 31, 2019. In each case the Fund elected to use the new index because it more closely reflects the Fund’s investment strategies.

**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”). Following the requisite approval of each Reorganization from shareholders of each First Investors Fund, each Acquiring Fund will be managed by DMC and each Acquiring Fund will have 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.

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. For investors investing in Delaware Funds by Macquarie (formerly First Investors Funds) please call 800 423-4026. 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 bond that is held by a portfolio will be prepaid prior to maturity, at the time when interest rates are lower than what the bond was paying. A portfolio may then have 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 11/14/2019)

Class APriceNet change
NAV$9.340.01
Max offer price$9.60n/a

Total net assets (as of 10/31/2019)

$568.4 million all share classes

Overall Morningstar RatingTM

 
Class A shares (as of 10/31/2019)
Class ANo. of funds
Overall4247
3 Yrs3247
5 Yrs4217
10 Yrs4151
Morningstar categoryMorningstar Muni National Intermediate Category

(View Morningstar disclosure)

The Morningstar rating is based on risk-adjusted returns.

Morningstar ranking (as of 10/31/2019)

YTD ranking231 / 294
1 year225 / 285
3 years193 / 247
5 years175 / 217
10 years87 / 151
Morningstar categoryMorningstar Muni National Intermediate Category

(View Morningstar disclosure)

The Morningstar ranking is based on historical total returns.

Lipper ranking (as of 10/31/2019)

YTD ranking257 / 285
1 year254 / 281
3 years219 / 241
5 years193 / 209
10 years140 / 168
Lipper classificationLipper General & Insured Municipal Debt Funds Average

(View Lipper disclosure)

The Lipper ranking is based on historical total returns.

Literature

Prospectuses and reports

Benchmark, peer group

Bloomberg Barclays 3–15 Year Blend Municipal Bond Index (view definition)

Bloomberg Barclays 1-15 Year Municipal Bond Index (view definition)

ICE BofAML US Municipal Securities Index (view definition)

Additional information