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

Daily pricing as of 08/07/2020

NAV
NAV 1-day net change
Max offer price
$12.88

Total net assets as of 06/30/2020

All share classes
$37.1 million

Overview

Fund information
Inception date05/01/2013
Dividends paid (if any)Monthly
Capital gains paid (if any)Annually
Fund identifiers
NASDAQFICJX
CUSIP245912795

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)

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 (07/31/2020)

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.

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. Please see the Updated Significant Fund Event and prospectus for more information.

Average annual total return as of quarter-end (06/30/2020)

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.

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. Please see the Updated Significant Fund Event and prospectus for more information.

Overall Morningstar RatingTM

Institutional Class shares - as of 07/31/2020

MorningstarMorningstarMorningstar
RatingNo. of funds
Overall396
3 years296
5 years383
10 years265
Morningstar categoryMorningstar Muni California Long Category
 

(View Morningstar disclosure)

The Morningstar rating is based on risk-adjusted returns.

Morningstar ranking - as of 07/31/2020
YTD ranking 72 / 108
1 year 83 / 106
3 years 79 / 96
5 years 67 / 83
10 years n/a
Morningstar categoryMorningstar Muni California Long Category

(View Morningstar disclosure)

The Morningstar ranking is based on historical total returns.

Lipper ranking - as of 07/31/2020
YTD ranking 87 / 125
1 year 95 / 123
3 years 86 / 111
5 years 76 / 99
10 years n/a
Lipper classificationLipper California Municipal Debt Funds Average

(View Lipper disclosure)

The Lipper ranking is based on historical total returns.

Expense ratio

Gross
0.96%
Net
0.64%

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.

Calendar year total returns @ NAV

Year
Annual return
Year
Annual return
2019
7.73%
2018
0.65%
2017
4.11%
2016
0.28%
2015
3.74%
2014
10.86%

Portfolio

Portfolio composition as of 07/31/2020
Total may not equal 100% due to rounding.

Municipal bonds
99.3%
Cash and cash equivalents
0.7%

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

Top 10 fixed income holdings as of 07/31/2020

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

List excludes cash and cash equivalents.

Holding
% of portfolio
Holding
% of portfolio
California ST 5.000 4/1/2037
5.91
California Edl Facs Auth Rev 5.250 4/1/2040
4.81
Sacramento Calif Transient Occ 5.000 6/1/2038
3.66
Bay Area Toll Auth Calif Toll 5.000 4/1/2044
3.38
San Francisco Calif City & Cnt 5.000 5/1/2034
3.37
Los Angeles Calif Dept Wtr & P 5.000 7/1/2042
3.30
San Jose Calif Arpt Rev 5.000 3/1/2042
3.23
California Mun Fin Auth Rev 5.000 1/1/2032
3.17
Los Angeles Calif Uni Sch Dist 5.000 7/1/2040
3.17
New Haven Calif Uni Sch Dist 5.000 8/1/2040
3.16

Total % Portfolio in Top 10 holdings - 37.16%

List of monthly holdingsList of quarterly holdings

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

Year
Capital gains3
Net investment income
Year
Capital gains3
Net investment income
2020
0.000
0.223
2019
0.000
0.367
2018
0.000
0.427
2017
0.000
0.460
2016
0.000
0.486
2015
0.000
0.486
2014
0.000
0.465
2013
0.000
0.270
2012
0.000
0.000
2011
0.000
0.000
2010
0.000
0.000

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.

Management

Gregory Gizzi

Greg Gizzi 

  • Managing Director, Head of Municipal Bonds, Senior Portfolio Manager
  • Start date on the Fund: October 2019
  • Years of industry experience: 36
  • Read 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: 16
  • Read bio
Stephen 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
  • Read bio

Fees

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 fees0.55%
Distribution and service (12b-1) feesnone
Other expenses0.41%
Total annual fund operating expenses0.96%
Fee waivers and expense reimbursements1(0.32%)
Total annual fund operating expenses after fee waivers and expense reimbursements0.64%

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 0.64% 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.

Resources

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

*Effective Oct. 4, 2019, the Fund changed its primary index from the Bloomberg Barclays Municipal Bond Index to the ICE BofA US Municipal Securities Index. The Fund elected to use the new index because it more closely reflected the Fund’s investment strategies.

**Updated Significant Fund Event. 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 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.

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.

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

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