Delaware National High-Yield Municipal Bond Fund

Key features

Income-driven, risk-controlled approach

Disciplined, bottom-up, research-driven process

Experienced management team dedicated solely to municipal bond investing

Daily pricing as of 06/16/2021

NAV
$12.11
NAV 1-day net change
No Change
Max offer price
$12.11

Total net assets as of 05/31/2021

All share classes
$1.6 billion

Overview

Fund information
Inception date 12/31/2008
Dividends paid (if any) Monthly
Capital gains paid (if any) December
Fund identifiers

Benchmark and 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)

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 (05/31/2021)

Returns for less than one year are not annualized.

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

Performance shown prior to Oct. 4, 2019, are as of the predecessor fund and investment team.

Average annual total return as of quarter-end (03/31/2021)

Returns for less than one year are not annualized.

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

Performance shown prior to Oct. 4, 2019, are as of the predecessor fund and investment team.

Overall Morningstar RatingTM

Institutional Class shares - as of 05/31/2021

MorningstarMorningstarMorningstarMorningstar
Rating No. of funds
Overall 4 181
3 years 5 181
5 years 4 152
10 years 4 103
Morningstar category Morningstar High-Yield Muni Category
 

(View Morningstar disclosure)

The Morningstar rating is based on risk-adjusted returns.

Morningstar ranking - as of 05/31/2021
1 year 8 / 201
3 years 19 / 181
5 years 18 / 152
10 years 17 / 103
Morningstar category Morningstar High-Yield Muni Category

(View Morningstar disclosure)

The Morningstar ranking is based on historical total returns.

Lipper ranking - as of 05/31/2021
1 year 9 / 189
3 years 17 / 172
5 years 16 / 142
10 years 17 / 99
Lipper classification Lipper High Yield Municipal Debt Funds Average

(View Lipper disclosure)

The Lipper ranking is based on historical total returns.

Expense ratio

Gross
0.66%
Net
0.60%

Net expense ratio reflects a contractual waiver of certain fees and/or expense reimbursements from Dec. 4, 2020 through Dec. 29, 2021. Please see the fee table in the Fund’s prospectus for more information.

Calendar year total returns @ NAV

Year
Annual return
Year
Annual return

Portfolio

Portfolio composition as of 05/31/2021
Total may not equal 100% due to rounding.

Municipal bonds
97.2%
Cash and cash equivalents
2.1%
Other Bonds
0.6%

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

Top 10 fixed income holdings as of 05/31/2021

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

List excludes cash and cash equivalents.

Holding
% of portfolio
Holding
% of portfolio
Buckeye Ohio Tob Settlement FI 5.000 6/1/2055
2.40
Puerto Rico Sales Tax Fing Cor 4.750 7/1/2053
2.28
Tobacco Settlement Fing Corp. 0.000 6/1/2047
2.09
University Tex Univ Revs 5.000 8/15/2049
2.05
University N C Chapel Hill Uni 5.000 2/1/2049
2.05
Puerto Rico Sales Tax Fing Co. (RST 5.000 7/1/2058
1.48
Inland Empire Tobacco Securization 0.000 6/1/2057
1.44
Monroe Tob Asset Securitizatio 0.000 6/1/2061
1.44
Puerto Rico Comwlth 8.000 7/1/2035
1.38
Gdb Debt Recovery Auth of Comw 7.500 8/20/2040
1.34

Total % Portfolio in Top 10 holdings - 17.95%

List of monthly holdingsList of quarterly holdings

Credit quality as of 05/31/2021

Rating
Fund
Rating
Fund
AAA
5.7%
AA
9.6%
A
1.6%
BBB
13.4%
BB
10.5%
B
2.3%
CCC
5.8%
CC
5.1%
Not rated
45.9%

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 05/31/2021

State
% of portfolio
State
% of portfolio
California
13.0%
Arizona
7.1%
Illinois
6.1%
New York
6.1%
Texas
5.5%
Florida
5.0%
Ohio
4.3%
Virginia
3.7%
Pennsylvania
3.7%
New Jersey
3.5%

Distribution history - annual distributions (Institutional Class)1,2
Distributions ($ per share)

Year
Capital gains3
Net investment income
Year
Capital gains3
Net investment income
2021
0.000
0.184
2020
0.019
0.473
2019
0.000
0.485
2018
0.000
0.489
2017
0.000
0.488
2016
0.000
0.443
2015
0.000
0.443
2014
0.000
0.464
2013
0.000
0.475
2012
0.000
0.513
2011
0.000
0.506

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.

Management

Gregory Gizzi

Greg Gizzi 

  • Managing Director, Head of Municipal Bonds, Senior Portfolio Manager
  • Start date on the Fund: December 2012
  • Years of industry experience: 37
  • Read bio
Stephen Czepiel

Steve Czepiel 

  • Managing Director, Head of Municipal Bonds Portfolio Management, Senior Portfolio Manager
  • Start date on the Fund: July 2007
  • Years of industry experience: 39
  • Read bio
Jake van Roden

Jake van Roden 

  • Senior Vice President, Senior Portfolio Manager
  • Start date on the Fund: February 2019
  • Years of industry experience: 17
  • Read bio

Fees

Shareholder fees
Maximum sales charge (load) imposed on purchases as a percentage of offering price none
Maximum contingent deferred sales charge (load) as a percentage of original purchase price or redemption price, whichever is lower none
Annual fund operating expenses
Management fees 0.51%
Distribution and service (12b-1) fees none
Other expenses 0.15%
Total annual fund operating expenses 0.66%
Fee waivers and expense reimbursements1 (0.06%)
Total annual fund operating expenses after fee waivers and expense reimbursements 0.60%

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, 2020 through Dec. 29, 2021. These waivers and reimbursements may only be terminated by agreement of the Manager and the Fund.

Resources

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

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 under the Resources section, or calling 877 693-3546. Investors should read the prospectus and the summary prospectus carefully before investing.

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 are located under the Resources section, 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 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 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.

IBOR risk is the risk that changes related to the use of the London interbank offered rate (LIBOR) or similar rates (such as EONIA) could have adverse impacts on financial instruments that reference these rates. The abandonment of these rates and transition to alternative rates could affect the value and liquidity of instruments that reference them and could affect investment strategy performance.

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

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