Delaware Minnesota High-Yield Municipal Bond Fund

Delaware Minnesota High-Yield Municipal Bond Fund

Key features

Credit analysis is the cornerstone of our selective, bottom-up process in which credit research drives alpha in plus sectors

Our proprietary CREDIT process checklist ensures a disciplined and repeatable process to select credits while mitigating risks

The team’s risk management approach is critical to the goal of delivering strong results over the long term

Daily pricing as of 11/20/2024

NAV
$10.16
NAV 1-day net change
No Change
Max offer price
$10.16

Total net assets as of 10/31/2024

All share classes
$230.3 million

Overview

Fund information
Inception date 12/31/2013
Dividends paid (if any) Monthly
Capital gains paid (if any) December
Fund identifiers
NASDAQ DMHIX
CUSIP 928928175

Benchmark and peer group

Bloomberg Municipal Bond Index (view definition)

Morningstar Muni Minnesota Category (view definition)

Lipper Minnesota 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 (as applicable) 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 (10/31/2024)

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.

Average annual total return as of quarter-end (09/30/2024)

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.

Overall Morningstar RatingTM

Institutional Class shares - as of 10/31/2024

MorningstarMorningstarMorningstarMorningstarMorningstar
Rating No. of funds
Overall 5 40
3 years 5 40
5 years 5 39
10 years 5 33
Morningstar category Morningstar Muni Minnesota Category

(View Morningstar disclosure)

The Morningstar rating is based on risk-adjusted returns.

Morningstar ranking - as of 10/31/2024
1 year 1 / 40
3 years 4 / 40
5 years 1 / 39
10 years 1 / 33
Morningstar category Morningstar Muni Minnesota Category

(View Morningstar disclosure)

The Morningstar ranking is based on historical total returns.

Lipper ranking - as of 10/31/2024
1 year 1 / 37
3 years 3 / 37
5 years 1 / 36
10 years 1 / 30
Lipper classification Lipper Minnesota Municipal Debt Funds Average

(View Lipper disclosure)

The Lipper ranking is based on historical total returns.

Expense ratio

Gross
0.74%
Net
0.59%

Net expense ratio reflects a contractual waiver of certain fees and/or expense reimbursements from December 29, 2023 through December 29, 2024. Please see the fee table in the Fund's prospectus for more information.

Calendar year total returns @ NAV

Year
Annual return
Year
Annual return
2023
5.84%
2022
-10.49%
2021
3.33%
2020
3.81%
2019
8.10%
2018
0.74%
2017
6.02%
2016
0.45%
2015
3.50%
2014
10.10%

Portfolio

Portfolio characteristics as of 10/31/2024

Number of holdings
230
Portfolio turnover (last fiscal year)
36%
SEC 30-day yield with waiver (view definition)
3.91%
SEC 30-day yield without waiver (view definition)
3.76%
Distribution yield at NAV (view definition)
3.84%
Annualized standard deviation, 3 years (view definition)
8.73

Portfolio composition as of 10/31/2024
Total may not equal 100% due to rounding.

Municipal bonds
97.4%
Cash and cash equivalents
2.6%

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

Top 10 fixed income holdings as of 10/31/2024

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

List excludes cash and cash equivalents.

Holding
% of portfolio
Holding
% of portfolio
DULUTH MINN ECONOMIC DEV AUTH
3.04
ROCHESTER MINN HEALTH CARE FAC
2.40
ST PAUL MINN PORT AUTH SOLID W
2.27
MINNEAPOLIS & ST PAUL MINN MET
1.82
ST PAUL MINN HSG & REDEV AUTH
1.54
ROCHESTER MINN HEALTH CARE FAC
1.54
MINNEAPOLIS & ST PAUL MINN MET
1.37
PUERTO RICO SALES TAX FING COR
1.25
ROSEMOUNT MINN
1.22
MINNESOTA ST
1.21

Total % Portfolio in Top 10 holdings - 17.66%

List of monthly holdingsList of quarterly holdings

Credit quality as of 10/31/2024

Rating
Fund
Rating
Fund
AAA
10.8%
AA
15.0%
A
21.9%
BBB
11.7%
BB
13.7%
B
0.1%
Not rated
26.8%

Total may not equal 100% due to rounding. The Fund’s investment manager, Delaware Management Company (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 NSRO ratings and the index credit quality rules. For securities rated by an NRSRO other than S&P, that rating is converted to the equivalent S&P credit rating. 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 (Institutional Class)1,2
Distributions ($ per share)

Year
Capital gains3
Net investment income
Year
Capital gains3
Net investment income
2024
0.000
0.320
2023
0.000
0.365
2022
0.000
0.316
2021
0.000
0.299
2020
0.000
0.326
2019
0.000
0.338
2018
0.000
0.344
2017
0.000
0.362
2016
0.000
0.376
2015
0.000
0.405
2014
0.000
0.439

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

Gregory A. Gizzi 

  • Senior Managing Director, Head of US Fixed Income and Head of Municipal Bonds
  • Start date on the Fund: December 2012
  • Years of industry experience: 40
  • Read bio
Stephen Czepiel

Stephen J. Czepiel 

  • Managing Director, Senior Portfolio Manager
  • Start date on the Fund: July 2007
  • Years of industry experience: 42
  • Read bio
William Roach

William Roach, CFA, CMT

  • Vice President, Portfolio Manager
  • Start date on the Fund: May 2023
  • Years of industry experience: 15
  • 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 0.55%
Distribution and service (12b-1) fees none
Other expenses 0.19%
Total annual fund operating expenses 0.74%
Fee waivers and expense reimbursements1 (0.15%)
Total annual fund operating expenses after fee waivers and expense reimbursements 0.59%

Please see the prospectus and SAI for additional information.

1Net expense ratio reflects a contractual waiver of certain fees and/or expense reimbursements from December 29, 2023 through December 30, 2024. Please see the fee table in the Fund's prospectus for more information.

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

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 0.63% of the Fund's average daily net assets from December 29, 2021 through December 29, 2022. These waivers and reimbursements may only be terminated by agreement of the Manager and the Fund.

Resources

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 visiting delawarefunds.com/literature 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 may be obtained by visiting delawarefunds.com/literature 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 can lose value, including the possible loss of principal. An issuer of a fixed income security may be unable to make interest payments and/or repay principal in a timely manner. The prices of bonds and other fixed income securities will increase as interest rates fall and decrease as interest rates rise. Fixed income securities with longer maturities or duration generally are more sensitive to interest rate changes.

The principal on a fixed income security may be prepaid prior to maturity, which may require reinvestment at a lower interest rate.

High yield securities (“junk bonds”) are subject to reduced creditworthiness of issuers, increased risk of default, and a more limited and less liquid secondary market. High yield securities may also be subject to greater price volatility and risk of loss of income and principal than higher-rated securities.

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

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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