Delaware Tax-Free California II Fund** (formerly, First Investors California Tax Exempt 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 date02/23/1987
Dividends paid (if any)Monthly
Capital gains paid (if any)Annually
Fund identifiers
Investment minimums
Initial investment$1,000
Subsequent investments$100
Systematic withdrawal balance$5,000
Account features
Payroll deductionYes

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 (12/31/2019)

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

YTD1 year3 year5 year10 yearLifetimeInception date
NAV (view definition)7.52%7.52%3.80%2.95%4.10%n/a02/23/1987
Max offer price3.22%3.22%2.41%2.12%3.68%n/a
Bloomberg Barclays Municipal Bond Index7.54%7.54%4.72%3.53%4.34%n/a
ICE BofA Municipal Securities Master Index7.74%7.74%4.69%3.60%4.49%n/a
1 year3 year5 year10 yearLifetimeInception date
NAV (view definition)0.40%7.52%3.80%2.95%4.10%n/a02/23/1987
Max offer price-3.65%3.22%2.41%2.12%3.68%n/a
Bloomberg Barclays Municipal Bond Index0.74%7.54%4.72%3.53%4.34%n/a
ICE BofA Municipal Securities Master Index0.63%7.74%4.69%3.60%4.49%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

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

Please click here to view monthly holdings.

Portfolio characteristics - as of 12/31/2019Bloomberg Barclays Municipal Bond Index
Number of holdings5155,531
Portfolio turnover (last fiscal year)48%n/a
Modified duration (view definition)5.60 years 4.87 years
Effective maturity (weighted average) (view definition)6.78 years 5.61 years
Yield to maturity (view definition)3.43%2.69%
Average market price (view definition) $117.84n/a
Average coupon (view definition)5.02%4.60%
Yield to worst (view definition)2.03%1.65%
Alternative minimum tax11116.86%4.01%
SEC 30-day yield with waiver (view definition)1.05%
SEC 30-day yield without waiver (view definition)0.16%
Portfolio composition as of 12/31/2019Total may not equal 100% due to rounding.
Municipal bonds98.0%
Cash and cash equivalents2.0%

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

Top 10 fixed income holdings as of 12/31/2019

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

List excludes cash and cash equivalents.

Holding% of portfolio
Bay Area Toll Auth Calif Toll 5.000 4/1/20445.71%
San Francisco Calif City & Cnt 5.000 5/1/20345.70%
California ST 5.000 4/1/20375.13%
California Edl Facs Auth Rev 5.250 4/1/20403.78%
Sacramento Calif Transient Occ 5.000 6/1/20383.37%
Los Angeles Calif Wastewater S 5.000 6/1/20382.85%
Moreno Valley Calif Uni Sch di 5.000 8/1/20432.82%
California Mun Fin Auth Rev 5.000 1/1/20322.78%
San Jose Calif Arpt Rev 5.000 3/1/20422.77%
Los Angeles Calif Dept Wtr & P 5.000 7/1/20422.75%
Total % Portfolio in Top 10 holdings37.66%
Fixed income sectors as of 12/31/2019

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.

Local general obligations14.0%
Special tax8.1%
State general obligations7.7%
Water & sewer5.6%
IDR/PCR (corporate)1.6%
Credit quality as of 12/31/2019
Not rated8.6%0.9%

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 A)1,2
Distributions ($ per share)
YearCapital gains3Net investment

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: 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)

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 fees0.55%
Distribution and service (12b-1) fees0.25%
Other expenses0.22%
Total annual fund operating expenses1.02%
Fee waivers and expense reimbursements(0.10%)
Total annual fund operating expenses after fee waivers and expense reimbursements0.92%

1 The 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 and dividend 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 broad-based securities index to the Bloomberg Barclays Municipal Bond Index as of Oct. 4, 2019. The Fund elected to use the new index because it more closely reflected 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.

Funds that invest primarily in one state may be more susceptible to the economic, regulatory, regional, and other factors of that state than geographically diversified funds.

Substantially all dividend income derived from tax-free funds is exempt from federal income tax. Some income may be subject to state or local 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 01/22/2020)

Class APriceNet change
Max offer price$13.61n/a

Total net assets (as of 12/31/2019)

$43.6 million all share classes

Morningstar ranking (as of 12/31/2019)

YTD ranking71 / 109
1 year71 / 109
3 years86 / 93
5 years73 / 87
10 years60 / 68
Morningstar categoryMorningstar Muni California Long Category

(View Morningstar disclosure)

The Morningstar ranking is based on historical total returns.

Lipper ranking (as of 12/31/2019)

YTD ranking75 / 131
1 year75 / 131
3 years102 / 113
5 years88 / 106
10 years74 / 86
Lipper classificationLipper California Municipal Debt Funds Average

(View Lipper disclosure)

The Lipper ranking is based on historical total returns.


Prospectuses and reports

Benchmark and peer group

Bloomberg Barclays Municipal Bond Index (view definition)

ICE BofA US Municipal Securities Index (view definition)

Morningstar Muni California Long Category (view definition)

Lipper California Municipal Debt Funds Average (view definition)

Additional information