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 date05/01/2013
Dividends paid (if any)Monthly
Capital gains paid (if any)Annually
Fund identifiers
NASDAQFITEX
CUSIP245912852

Class R6 shares are available only to certain investors. See the prospectus for more information.

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 (02/29/2020)

as of quarter-end (12/31/2019)

YTD1 year3 year5 year10 yearLifetimeInception date
NAV (view definition)3.50% 8.75% 4.31% 3.07% n/a2.96% 05/01/2013
Bloomberg Barclays 3-15 Year Blend Municipal Bond Index2.69%8.16%4.77%3.61%n/a3.36%
Bloomberg Barclays 1-15 Year Municipal Index2.49%7.65%4.48%3.39%n/a3.15%
ICE BofA US Municipal Securities Index3.19%9.73%5.39%4.09%n/a3.82%
1 year3 year5 year10 yearLifetimeInception date
NAV (view definition)0.35% 6.38% 3.40% 2.54% n/a2.51% 05/01/2013
Bloomberg Barclays 3-15 Year Blend Municipal Bond Index0.83%6.83%4.35%3.20%n/a3.03%
Bloomberg Barclays 1-15 Year Municipal Index0.81%6.44%4.10%3.01%n/a2.85%
ICE BofA Municipal Securities Master Index0.63%7.74%4.69%3.60%n/a3.42%

Returns for less than one year are not annualized.

Benchmark lifetime returns are as of the month end prior to the Fund's inception date.

Class C shares redeemed within one year of purchase are subject to a 1.00% contingent deferred sales charge (CDSC). Class C shares are eligible to automatically convert to Class A shares with a lower 12b-1 fee approximately 10 years after you buy Class C shares.

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
Gross0.61%
Net0.61%

Net expense ratio reflects a contractual waiver of certain fees and/or expense reimbursements from Dec. 27, 2019 through Dec. 28, 2020. Please see the fee table in the Fund’s prospectus for more information.

Calendar year total returns @ NAV
YearAnnual return
20196.38%
20180.52%
20173.40%
2016-0.13%
20152.69%
20149.14%
2013n/a

Class R6 shares are available only to certain investors. See the prospectus for more information.

Class R6 shares are available only to certain investors. See the prospectus for more information.

Please click here to view monthly holdings.

Portfolio characteristics - as of 02/29/2020Bloomberg Barclays 3-15 Year Blend Municipal Bond Index
Number of holdings13547,464
Portfolio turnover (last fiscal year)39%n/a
Modified duration (view definition)5.10 years 5.28 years
Effective maturity (weighted average) (view definition)6.08 years 6.06 years
Yield to maturity (view definition)3.13%2.59%
Average market price (view definition) $116.35n/a
Average coupon (view definition)5.08%4.59%
Yield to worst (view definition)1.36%1.41%
SEC 30-day yield with waiver (view definition)1.29%
SEC 30-day yield without waiver (view definition)1.26%
Annualized standard deviation, 3 years (view definition)2.31n/a
Portfolio composition as of 02/29/2020Total may not equal 100% due to rounding.
Municipal bonds98.4%
Cash and cash equivalents1.6%

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

Top 10 fixed income holdings as of 02/29/2020

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 6/15/20214.25%
Superior wi - Midwest Energy 6.900 8/1/20212.35%
Salt Lake City Utah Arpt Rev 5.000 7/1/20362.28%
Utility Debt Securitization AU 5.000 12/15/20372.21%
New York ST Urban Dev Corp. Rev 5.000 3/15/20352.20%
ny ST Dorm Nyu 5.750 7/1/20272.19%
Massachusetts ST Sch Bldg Auth 5.000 8/15/20372.19%
District Columbia 5.000 6/1/20342.11%
California ST For Previous Iss 5.000 9/1/20351.81%
Denton Tex Indpt Sch Dist 5.000 8/15/20401.73%
Total % Portfolio in Top 10 holdings23.32%
Fixed income sectors as of 02/29/2020

List may exclude cash, cash equivalents, and exchang-traded funds (ETFs) that are used for cash management purposes. Please see the Fund’s complete list of holdings for more information.

SectorFund
Special tax21.1%
Transportation20.7%
State general obligations12.4%
Education8.6%
Water & sewer7.4%
IDR/PCR (corporate)6.4%
Hospital5.6%
Electric4.9%
Local general obligations4.8%
Leasing3.4%
Pre-refunded2.9%
Credit quality as of 02/29/2020
RatingFundBenchmark
AAA13.6%13.2%
AA44.7%51.0%
A20.6%25.7%
BBB5.5%9.5%
BB1.3%0.0%
B1.3%0.0%
CCC1.0%0.0%
Not rated12.0%0.5%

Total may not equal 100% due to rounding. The Fund’s investment manager, DMC, 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.

Distribution history - annual distributions (Class J)1,2
Distributions ($ per share)
YearCapital gains3Net investment
income
20200.0000.047
20190.0000.097
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

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.

Class R6 shares are available only to certain investors. See the prospectus for more information.

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: 38

(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)


Class R6 shares are available only to certain investors. See the prospectus for more information.

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 pricenone
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) feesnone
Other expenses0.11%
Total annual fund operating expenses0.61%
Fee waivers and expense reimbursementsnone
Total annual fund operating expenses after fee waivers and expense reimbursements0.61%

Class R6 shares are available only to certain investors. See the prospectus for more information.

1“Other expenses” for Class R6 are estimated and account for Class R6 shares not being subject to certain expenses as described further in the section of the prospectus entitled “Choosing a share class.”

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 0.62% 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.

**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), whereby MMHI, on behalf of its affiliate Delaware Management Company (DMC), a series of Macquarie Investment Management Business Trust (MIMBT), would acquire FIMCO’s asset management business (the “Transaction”). In connection with the Transaction, the Board of Trustees of the First Investors Trusts and the First Investors Fund shareholders 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 in the Delaware Funds by Macquarie family of funds. The Transaction closed on Oct. 4, 2019.

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.

LIBOR risk is the risk that potential changes related to the use of the London Interbank Offered Rate (LIBOR) could have adverse impacts on financial instruments which reference LIBOR. The potential abandonment of LIBOR could affect the value and liquidity of instruments which reference LIBOR.

Natural or environmental disasters, such as earthquakes, fires, floods, hurricanes, tsunamis, and other severe weather-related phenomena generally, and widespread disease, including pandemics and epidemics, have been and can be highly disruptive to economies and markets, adversely impacting individual companies, sectors, industries, markets, currencies, interest and inflation rates, credit ratings, investor sentiment, and other factors affecting the value of the Fund’s investments. Given the increasing interdependence among global economies and markets, conditions in one country, market, or region are increasingly likely to adversely affect markets, issuers, and/or foreign exchange rates in other countries. These disruptions could prevent the Fund from executing advantageous investment decisions in a timely manner and could negatively impact the Fund’s ability to achieve its investment objective. Any such event(s) could have a significant adverse impact on the value and risk profile of the Fund.

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 03/27/2020)

Class R6PriceNet change
NAV$9.170.03
Max offer price$9.17n/a

Total net assets (as of 02/29/2020)

$552.5 million all share classes

Overall Morningstar RatingTM

 
Class R6 shares (as of 02/29/2020)
Class R6No. of funds
Overall4241
3 Yrs4241
5 Yrs4214
10 Yrs4155
Morningstar categoryMorningstar Muni National Intermediate Category

(View Morningstar disclosure)

The Morningstar rating is based on risk-adjusted returns.

Morningstar ranking (as of 02/29/2020)

YTD ranking28 / 299
1 year98 / 281
3 years166 / 241
5 years139 / 214
10 yearsn/a
Morningstar categoryMorningstar Muni National Intermediate Category

(View Morningstar disclosure)

The Morningstar ranking is based on historical total returns.

Lipper ranking (as of 02/29/2020)

YTD ranking124 / 294
1 year221 / 281
3 years210 / 241
5 years177 / 210
10 yearsn/a
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 and peer group

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

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

ICE BofA US Municipal Securities Index (view definition)

Morningstar Muni National Intermediate Category (view definition)

Lipper General & Insured Municipal Debt Funds Average (view definition)

Additional information