UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES

Investment Company Act file number: 811-07810
 
Exact name of registrant as specified in charter: Delaware Investments Colorado Municipal
Income Fund, Inc.
 
Address of principal executive offices: 2005 Market Street
Philadelphia, PA 19103
 
Name and address of agent for service: David F. Connor, Esq.
2005 Market Street
Philadelphia, PA 19103
 
Registrant’s telephone number, including area code: (800) 523-1918
 
Date of fiscal year end: March 31
 
Date of reporting period: September 30, 2019


Item 1. Reports to Stockholders

Table of Contents
LOGO      LOGO

Semiannual report            

Closed-end funds

Delaware Funds® by Macquarie Closed-End Municipal Bond Funds

September 30, 2019

 

Beginning on or about June 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of your Funds shareholder reports will no longer be sent to you by mail, unless you specifically request them from the Fund or from your financial intermediary, such as a broker/dealer, bank, or insurance company. Instead, you will be notified by mail each time a report is posted on the website and provided with a link to access the report.

If you already elected to receive shareholder reports electronically, you will not be affected by this change and you do not need to take any action. You may elect to receive shareholder reports and other communications from the Fund electronically by logging into your Investor Center account at computershare.com/investor and going to “Communication Preferences” or by calling Computershare and speaking to a representative.

You may elect to receive paper copies of all future shareholder reports free of charge. You can inform the Fund that you wish to continue receiving paper copies of your shareholder reports by contacting us at 866 437-0252. If you own these shares through a financial intermediary, you may contact your financial intermediary to elect to continue to receive paper copies of your shareholder reports. Your election to receive reports in paper will apply to all funds held with the Delaware Funds® by Macquarie or your financial intermediary.

 

 

 

 

LOGO


Table of Contents

Table of contents

 

Fund basics      1  
Security type / sector / state allocations      2  
Schedules of investments      4  
Statements of assets and liabilities      24  
Statements of operations      25  
Statements of changes in net assets      26  
Statements of cash flows      28  
Financial highlights      29  
Notes to financial statements      32  
Other Fund information      39  
About the organization      44  

Macquarie Asset Management (MAM) offers a diverse range of products including securities investment management, infrastructure and real asset management, and fund and equity-based structured products. Macquarie Investment Management (MIM) is the marketing name for certain companies comprising the asset management division of Macquarie Group. This includes the following investment advisors: Macquarie Investment Management Business Trust (MIMBT), Macquarie Funds Management Hong Kong Limited, Macquarie Investment Management Austria Kapitalanlage AG, Macquarie Investment Management Global Limited, Macquarie Investment Management Europe Limited, Macquarie Capital Investment Management LLC, and Macquarie Investment Management Europe S.A. For more information, including press releases, please visit delawarefunds.com/closed-end.

Unless otherwise noted, views expressed herein are current as of Sept. 30, 2019, and subject to change for events occurring after such date.

The Funds are not FDIC insured and are not guaranteed. It is possible to lose the principal amount invested.

Advisory services provided by Delaware Management Company, a series of MIMBT, a US registered investment advisor.

Other than Macquarie Bank Limited (MBL), none of the entities noted are authorized deposit-taking institutions for the purposes of the Banking Act 1959 (Commonwealth of Australia). The obligations of these entities do not represent deposits or other liabilities of MBL. MBL does not guarantee or otherwise provide assurance in respect of the obligations of these entities, unless noted otherwise. The Funds are governed by US laws and regulations.

All third-party marks cited are the property of their respective owners.

©2019 Macquarie Management Holdings, Inc.


Table of Contents

Fund basics

 

Delaware Investments®

Colorado Municipal Income Fund, Inc.

As of September 30, 2019 (Unaudited)

Fund objective

The Fund seeks to provide current income exempt from both regular federal income tax and Colorado state personal income tax, consistent with the preservation of capital.

Total Fund net assets

$74 million

Number of holdings

114

Fund start date

July 29, 1993

NYSE American symbol

VCF

CUSIP number

246101109

Delaware Investments

Minnesota Municipal Income Fund II, Inc.

As of September 30, 2019 (Unaudited)

Fund objective

The Fund seeks to provide current income exempt from both regular federal income tax and Minnesota state personal income tax, consistent with the preservation of capital.

Total Fund net assets

$172 million

Number of holdings

206

Fund start date

Feb. 26, 1993

NYSE American symbol

VMM

CUSIP number

24610V103

Delaware Investments

National Municipal Income Fund

As of September 30, 2019 (Unaudited)

Fund objective

The Fund seeks to provide current income exempt from regular federal income tax, consistent with the preservation of capital.

Total Fund net assets

$68 million

Number of holdings

175

Fund start date

Feb. 26, 1993

NYSE American symbol

VFL

CUSIP number

24610T108

 

 

1


Table of Contents

Security type / sector / state allocations

As of September 30, 2019 (Unaudited)

Sector designations may be different than the sector designations presented in other Fund materials.

 

Delaware Investments®

Colorado Municipal Income Fund, Inc.

 

Security type / sector   

Percentage

of net

assets

Municipal Bonds*

     144.89 %   

Corporate Revenue Bonds

     5.45

Education Revenue Bonds

     18.95

Electric Revenue Bonds

     3.84

Healthcare Revenue Bonds

     43.12

Lease Revenue Bonds

     4.87

Local General Obligation Bonds

     12.44

Pre-Refunded/Escrowed to Maturity Bonds

     17.43

Special Tax Revenue Bonds

     27.43

Transportation Revenue Bonds

     10.43

Water & Sewer Revenue Bonds

     0.93

Total Value of Securities

     144.89

Liquidation Value of Preferred Stock

     (40.67 )% 

Liabilities Net of Receivables and Other Assets

     (4.22 )% 

Total Net Assets

     100.00

* As of the date of this report, Delaware Investments Colorado Municipal Income Fund, Inc. held bonds issued by or on behalf of territories and the states of the US as follows:

 

State / territory   

Percentage

of net

assets

Colorado

     136.67 %   

Guam

     1.99

Puerto Rico

     5.51

US Virgin Islands

 

    

 

0.72

 

 

Total Value of Securities

     144.89

Delaware Investments

Minnesota Municipal Income Fund II, Inc.

 

Security type / sector   

Percentage

of net

assets

Municipal Bonds*

     142.70 %   

Corporate Revenue Bonds

     1.63

Education Revenue Bonds

     23.03

Electric Revenue Bonds

     17.42

Healthcare Revenue Bonds

     39.03

Housing Revenue Bonds

     1.83

Lease Revenue Bonds

     9.63

Local General Obligation Bonds

     12.29

Pre-Refunded/Escrowed to Maturity Bonds

     12.65

Special Tax Revenue Bonds

     2.31

State General Obligation Bonds

     11.60

Transportation Revenue Bonds

     8.13

Water & Sewer Revenue Bonds

     3.15

Short-Term Investments

     0.58

Total Value of Securities

     143.28

Liquidation Value of Preferred Stock

     (43.64 )% 

Receivables and Other Assets Net of Liabilities

     0.36

Total Net Assets

     100.00

* As of the date of this report, Delaware Investments Minnesota Municipal Income Fund II, Inc. held bonds issued by or on behalf of territories and the states of the US as follows:

 

State / territory   

Percentage

of net

assets

Guam

     0.66 %   

Minnesota

     140.53

Puerto Rico

 

    

 

2.09

 

 

Total

     143.28
 

 

2


Table of Contents

    

 

    

 

Delaware Investments®

National Municipal Income Fund

Security type / sector   

Percentage

of net

assets

 

Municipal Bonds*

     142.12

Corporate Revenue Bonds

     15.27

Education Revenue Bonds

     27.28

Electric Revenue Bonds

     3.95

Healthcare Revenue Bonds

     29.60

Lease Revenue Bonds

     5.85

Local General Obligation Bonds

     3.95

Pre-Refunded/Escrowed to Maturity Bonds

     6.73

Special Tax Revenue Bonds

     15.07

State General Obligation Bonds

     9.27

Transportation Revenue Bonds

     24.01

Water & Sewer Revenue Bonds

     1.14

Total Value of Securities

     142.12

Liquidation Value of Preferred Stock

     (44.34 )% 

Receivables and Other Assets Net of Liabilities

     2.22

Total Net Assets

     100.00

* As of the date of this report, Delaware Investments National Municipal Income Fund held bonds issued by or on behalf of territories and the states of the US as follows:

 

State / territory   

Percentage

of net

assets

 

Alabama

     0.84

Arizona

     4.64

California

     21.31

Colorado

     3.08

Delaware

     0.19

District of Columbia

     1.81

Florida

     5.59

Georgia

     2.63

Guam

     0.83

Idaho

     2.43

Illinois

     9.87

Indiana

     0.93

Kansas

     0.36

Louisiana

     4.80

Maine

     0.48

Maryland

     2.67

Massachusetts

     0.87

Michigan

     1.70

Minnesota

     1.60

Missouri

     3.57

Montana

     1.13

Nebraska

     0.44

New Jersey

     7.29

New York

     14.52

Ohio

     5.09

Oregon

     1.00

Pennsylvania

     18.46

Puerto Rico

     5.49

Texas

     12.31

Utah

     1.11

Virginia

     1.21

Washington

     0.45

Wisconsin

     3.03

Wyoming

 

    

 

0.39

 

 

Total Value of Securities

     142.12
 

 

3


Table of Contents

Schedules of investments

Delaware Investments® Colorado Municipal Income Fund, Inc.

September 30, 2019 (Unaudited)

 

    Principal
Amount°
   

Value

(US $)

 

Municipal Bonds – 144.89%

 

       

Corporate Revenue Bonds – 5.45%

 

Denver City & County (United Airlines Project) 5.00% 10/1/32 (AMT)

    215,000     $ 235,584  

Public Authority for Colorado Energy Natural Gas Revenue Series 2008 6.50% 11/15/38

    1,750,000       2,672,740  

Public Authority for Colorado Energy Revenue 6.25% 11/15/28

    865,000       1,110,106  
   

 

 

 
   

 

 

 

    4,018,430

 

 

   

 

 

 

Education Revenue Bonds – 18.95%

 

Board of Trustees For Colorado Mesa University Enterprise Revenue Series B 5.00% 5/15/49

    750,000       922,327  

Colorado Educational & Cultural Facilities Authority Revenue

   

144A 5.00% 7/1/36 #

    500,000       536,290  

5.125% 11/1/49

    765,000       804,191  

144A 5.25% 7/1/46 #

    500,000       535,220  

(Academy Charter School Project) 5.50% 5/1/36 (AGC)

    1,720,000       1,725,246  

(Alexander Dawson School-Nevada Project) 5.00% 5/15/29

    760,000       911,909  

(Charter School - Atlas Preparatory School) 144A 5.25% 4/1/45 #

    700,000       732,249  

(Charter School - Community Leadership Academy) 7.45% 8/1/48

    500,000       569,425  

(Charter School - Peak to Peak Charter) 5.00% 8/15/34

    1,000,000       1,131,800  

(Improvement - Charter School - University Lab School Building) 5.00% 12/15/45

    500,000       537,535  

(Johnson & Wales University) Series A 5.25% 4/1/37

    900,000       969,651  

(Liberty Charter School) Series A 5.00% 1/15/44

    1,000,000       1,094,290  
     Principal
Amount°
    

Value

(US $)

 

Municipal Bonds (continued)

 

        

Education Revenue Bonds (continued)

 

Colorado Educational & Cultural Facilities Authority Revenue (Littleton Charter School Project) 4.375% 1/15/36 (AGC)

     1,200,000      $ 1,201,188  

(Loveland Classical Schools) 144A 5.00% 7/1/36 #

     625,000        672,313  

(Skyview Charter School) 144A 5.50% 7/1/49 #

     750,000        796,493  

(Vail Mountain School Project) 4.00% 5/1/46

     25,000        25,679  

(Windsor Charter Academy Project) 144A 5.00% 9/1/46 #

     500,000        507,450  

Colorado School of Mines Series B 5.00% 12/1/42

     270,000        296,600  

Colorado State Board of Governors (University Enterprise System) Series A 5.00% 3/1/39

     10,000        10,027  
     

 

 

 
     

 

 

 

13,979,883

 

 

     

 

 

 

Electric Revenue Bonds – 3.84%

 

City of Fort Collins Electric Utility Enterprise Revenue Series A 5.00% 12/1/42

     500,000        613,685  

City of Loveland Colorado Electric & Communications Enterprise Revenue Series A 5.00% 12/1/44

     500,000        606,840  

Platte River Power Authority Revenue Series JJ 5.00% 6/1/27

     950,000        1,167,749  

Puerto Rico Electric Power Authority Revenue Series CCC 5.25% 7/1/27 ‡

     230,000        184,575  

Series WW 5.00% 7/1/28 ‡

     325,000        260,000  
     

 

 

 
     

 

 

 

2,832,849

 

 

     

 

 

 

Healthcare Revenue Bonds – 43.12%

 

Aurora Hospital Revenue (Children’s Hospital Association Project) Series A 5.00% 12/1/40

     2,000,000        2,043,080  
 

 

4


Table of Contents

    

 

    

 

    Principal
Amount°
   

Value

(US $)

 

Municipal Bonds (continued)

 

Healthcare Revenue Bonds (continued)

 

Colorado Health Facilities Authority Revenue (AdventHealth Obligated Group) Series A 4.00% 11/15/43

    1,000,000     $ 1,117,750  

(Adventist Health System/Sunbelt Obligated Group) Series A 5.00% 11/15/48

    1,000,000       1,204,510  

(Bethesda Project) Series A1 5.00% 9/15/48

    750,000       846,225  

(Christian Living Community Project) 6.375% 1/1/41

    615,000       667,718  

(CommonSpirit Health)

   

Series A-1 4.00% 8/1/39

    500,000       547,085  

Series A-2 4.00% 8/1/49

    1,250,000       1,344,237  

Series A-2 5.00% 8/1/38

    1,500,000       1,813,140  

Series A-2 5.00% 8/1/39

    1,500,000       1,808,700  

Series A-2 5.00% 8/1/44

    1,750,000       2,089,675  

(Covenant Retirement Communities Inc.) 5.00% 12/1/35

    1,000,000       1,134,380  

Series A 5.75% 12/1/36

    1,000,000           1,154,190  

(Frasier Meadows Retirement Community Project)

   

Series A 5.25% 5/15/37

    265,000       305,336  

Series B 5.00% 5/15/48

    340,000       359,200  

(Healthcare Facilities - American Baptist) 8.00% 8/1/43

    500,000       569,170  

(Mental Health Center of Denver Project) Series A 5.75% 2/1/44

    1,500,000       1,681,335  

(National Jewish Health Project) 5.00% 1/1/27

    500,000       525,590  

(NCMC Project) 4.00% 5/15/32

    1,000,000       1,116,620  

(SCL Health System)

   

Series A 4.00% 1/1/37

    1,575,000       1,792,445  

Series A 4.00% 1/1/38

    1,950,000       2,206,561  

Series A 4.00% 1/1/39

    465,000       524,794  

(Sisters of Charity of Leavenworth Health System) Series A 5.00% 1/1/40

    4,000,000       4,036,120  

(Sunny Vista Living Center) Series A 144A 6.25% 12/1/50 #

    505,000       541,405  
    Principal
Amount°
   

Value

(US $)

 

Municipal Bonds (continued)

 

Healthcare Revenue Bonds (continued)

 

Colorado Health Facilities Authority Revenue (Vail Valley Medical Center Project) 5.00% 1/15/35

    1,250,000     $ 1,464,675  

(Valley View Hospital Association Project) Series A 4.00% 5/15/34

    330,000       364,756  

Denver Health & Hospital Authority Health Care Revenue Series A 4.00% 12/1/40

    500,000       552,140  
   

 

 

 
   

 

 

 

31,810,837

 

 

   

 

 

 

Lease Revenue Bonds – 4.87%

   

Aurora Certificates of Participation Series A 5.00% 12/1/30

    630,000       633,591  

Denver Health & Hospital Authority (550 ACOMA, Inc.) 4.00% 12/1/38

    500,000       551,080  

Pueblo County Certificates of Participation (County Judicial Complex Project) 5.00% 9/15/42 (AGM)

    1,250,000       1,355,475  

State of Colorado Department of Transportation Certificates of Participation

   

5.00% 6/15/34

    340,000       406,545  

5.00% 6/15/36

    545,000       648,839  
   

 

 

 
   

 

 

 

    3,595,530

 

 

   

 

 

 

Local General Obligation Bonds – 12.44%

 

Adams & Weld Counties School District No 27J Brighton 4.00% 12/1/30

    700,000       794,822  

Arapahoe County School District No. 6 Littleton Series A 5.50% 12/1/38

    650,000       845,819  

Beacon Point Metropolitan District 5.00% 12/1/30 (AGM)

    600,000       713,556  

Boulder Valley School District No RE-2 Boulder Series A 4.00% 12/1/48

    500,000       565,680  
 

 

(continues)                                                 5


Table of Contents

Schedules of investments

Delaware Investments® Colorado Municipal Income Fund, Inc.

 

    Principal
Amount°
   

Value

(US $)

 

Municipal Bonds (continued)

 

Local General Obligation Bonds (continued)

 

Denver International Business Center Metropolitan District No. 1 5.00% 12/1/30

    650,000     $ 667,543  

Eaton Area Park & Recreation District

   

5.25% 12/1/34

    190,000       201,330  

5.50% 12/1/38

    245,000       261,055  

Grand River Hospital District 5.25% 12/1/37 (AGM)

    675,000       840,503  

Jefferson County School District No. R-1 5.25% 12/15/24

    750,000       899,167  

Sierra Ridge Metropolitan District No. 2 Series A 5.50% 12/1/46

    500,000       525,920  

Weld County School District No. RE-1 5.00% 12/15/30 (AGM)

    500,000       610,275  

Weld County School District No. RE-3J 5.00% 12/15/34 (BAM)

    1,000,000       1,211,600  

Weld County School District No. RE-8

   

5.00% 12/1/31

    510,000       624,867  

5.00% 12/1/32

    340,000       415,511  
   

 

 

 
   

 

 

 

    9,177,648

 

 

   

 

 

 

Pre-Refunded/Escrowed to Maturity Bonds – 17.43%

 

Colorado Building Excellent Schools Today Certificates of Participation Series G 5.00% 3/15/32-21§

    700,000       737,464  

Colorado Health Facilities Authority Revenue (Catholic Health Initiatives)

   

Series A 5.00% 2/1/41-21§

    2,400,000       2,514,432  

Series A 5.25% 2/1/33-21§

    1,000,000       1,050,970  

(Evangelical Lutheran Good Samaritan Society)

   

5.00% 6/1/28-23§

    1,250,000       1,413,500  

5.50% 6/1/33-23§

    2,000,000       2,297,240  

5.625% 6/1/43-23§

    1,000,000       1,153,070  

(Total Long-Term Care) Series A
6.00% 11/15/30-20§

    400,000       420,220  
   

Principal

Amount°

   

Value

(US $)

 

Municipal Bonds (continued)

 

Pre-Refunded/Escrowed to Maturity Bonds (continued)

 

Colorado School of Mines Series B 5.00% 12/1/42-22§

    2,230,000     $ 2,482,704  

Denver Health & Hospital Authority Health Care Revenue (Recovery Zone Facilities) 5.625% 12/1/40-20§

    750,000       786,705  
   

 

 

 
   

 

 

 

    12,856,305

 

 

   

 

 

 

Special Tax Revenue Bonds –27.43%

 

Central Platte Valley Metropolitan District 5.00% 12/1/43

    375,000       404,749  

Commerce City 5.00% 8/1/44 (AGM)

    1,000,000       1,132,800  

Fountain Urban Renewal Authority Tax Increment Revenue (Academy Highlands Project) Series A 5.50% 11/1/44

    655,000       696,999  

Guam Government Business Privilege Tax Revenue

   

Series A 5.125% 1/1/42

    435,000       455,950  

Series A 5.25% 1/1/36

    565,000       596,985  

Lincoln Park Metropolitan District 5.00% 12/1/46 (AGM)

    500,000       594,495  

Prairie Center Metropolitan District No. 3 Series A 144A 5.00% 12/15/41 #

    500,000       529,390  

Puerto Rico Sales Tax Financing Revenue (Restructured)

   

Series A-1 4.55% 7/1/40

    1,000,000       1,033,560  

Series A-1 4.75% 7/1/53

    2,290,000       2,381,600  

Series A-1 5.00% 7/1/58

    195,000       206,060  

Regional Transportation District Revenue

   

Series A 5.375% 6/1/31

    460,000       471,224  

Series B 5.00% 11/1/33

    500,000       626,150  

(Denver Transit Partners) 6.00% 1/15/41

    2,175,000       2,238,815  

(FasTracks Project)

   

Series A 5.00% 11/1/30

    330,000       406,748  

Series A 5.00% 11/1/31

    755,000       927,367  

Series A 5.00% 11/1/38

    4,085,000       4,234,143  
 

 

6


Table of Contents

    

 

    

 

    Principal
Amount°
   

Value

(US $)

 

Municipal Bonds (continued)

 

Special Tax Revenue Bonds (continued)

 

Solaris Metropolitan District No. 3 (Limited Tax Convertible) Series A 5.00% 12/1/46

    500,000     $ 524,820  

Southlands Metropolitan District No. 1

   

Series A1 5.00% 12/1/37

    200,000       227,834  

Series A1 5.00% 12/1/47

    300,000       336,900  

Sterling Ranch Community Authority Board Series A 5.75% 12/1/45

    525,000       549,245  

Tallyns Reach Metropolitan District No. 3 (Limited Tax Convertible) 5.125% 11/1/38

    295,000       315,181  

Thornton Development Authority (East 144th Avenue & I-25 Project)

   

Series B 5.00% 12/1/35

    265,000       307,848  

Series B 5.00% 12/1/36

    440,000       510,726  

Virgin Islands Public Finance Authority (Matching Fund Senior Lien) 5.00% 10/1/29 (AGM)

    500,000       529,335  
   

 

 

 
   

 

 

 

    20,238,924

 

 

   

 

 

 

Transportation Revenue Bonds – 10.43%

 

Colorado High Performance Transportation Enterprise Revenue (Senior U.S. 36 & I-25 Managed Lanes) 5.75% 1/1/44 (AMT)

    1,110,000       1,215,972  

C-470 Express Lanes 5.00% 12/31/56

    1,000,000       1,094,920  

Denver City & County Airport System Revenue Series A 5.00% 11/15/30 (AMT)

    750,000       918,787  

Series A 5.00% 12/1/48 (AMT)

    1,000,000       1,195,100  

Series A 5.25% 11/15/36

    750,000       753,390  

Series B 5.00% 11/15/37

    2,000,000       2,195,680  

E-470 Public Highway Authority Series C 5.25% 9/1/25

    310,000       320,583  
   

 

 

 
   

 

 

 

7,694,432

 

 

   

 

 

 
    Principal
Amount°
   

Value

(US $)

 

Municipal Bonds (continued)

 

Water & Sewer Revenue Bonds – 0.93%

 

Dominion Water & Sanitation District 6.00% 12/1/46

    250,000     $ 268,357  

Guam Government Waterworks Authority Revenue 5.00% 7/1/40

    360,000       415,883  
   

 

 

 
   

 

 

 

684,240

 

 

   

 

 

 

Total Municipal Bonds
(cost $100,576,283)

      106,889,078  
   

 

 

 

Total Value of Securities – 144.89%
(cost $100,576,283)

    $ 106,889,078  
   

 

 

 

 

                    

#

Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended. At Sept. 30, 2019, the aggregate value of Rule 144A securities was $4,850,810, which represents 6.58% of the Fund’s net assets. See Note 5 in “Notes to financial statements.”

§

Pre-refunded bonds. Municipal bonds that are generally backed or secured by US Treasury bonds. For pre-refunded bonds, the stated maturity is followed by the year in which the bond will be pre-refunded. See Note 5 in “Notes to financial statements.”

°

Principal amount shown is stated in USD unless noted that the security is denominated in another currency.

Non-income producing security. Security is currently in default.

Summary of abbreviations:

AGC – Insured by Assured Guaranty Corporation

AGM – Insured by Assured Guaranty Municipal Corporation

AMT – Subject to Alternative Minimum Tax

BAM – Build America Mutual Assurance Company

SGI – Insured by Syncora Guarantee Inc.

USD – US Dollar

See accompanying notes, which are an integral part of the financial statements.

 

 

7


Table of Contents

Schedules of investments

Delaware Investments® Minnesota Municipal Income Fund II, Inc.

September 30, 2019 (Unaudited)

 

    Principal
Amount°
   

Value

(US $)

 

Municipal Bonds – 142.70%

 

Corporate Revenue Bonds – 1.63%

 

Minneapolis Community Planning & Economic Development Department (Limited Tax Supported Common Bond Fund)
6.25% 12/1/30

    1,000,000     $ 1,054,620  

St. Paul Port Authority Solid Waste Disposal Revenue (Gerdau St. Paul Steel Mill Project) Series 7 144A
4.50% 10/1/37 (AMT) #

    1,715,000       1,737,535  
   

 

 

 
   

 

 

 

2,792,155

 

 

   

 

 

 

Education Revenue Bonds – 23.03%

 

Bethel Charter School Lease Revenue (Spectrum High School Project) Series A 4.375% 7/1/52

    1,100,000       1,165,230  

Brooklyn Park Charter School Lease Revenue (Prairie Seeds Academy Project)

   

Series A 5.00% 3/1/34

    990,000       1,024,086  

Series A 5.00% 3/1/39

    170,000       174,037  

Cologne Charter School Lease Revenue (Cologne Academy Project)

   

Series A 5.00% 7/1/29

    270,000       292,472  

Series A 5.00% 7/1/45

    445,000       468,763  

Deephaven Charter School (Eagle Ridge Academy Project)

   

Series A 5.25% 7/1/37

    590,000       644,905  

Series A 5.25% 7/1/40

    500,000       544,085  

Duluth Housing & Redevelopment Authority (Duluth Public Schools Academy Project) Series A 5.00% 11/1/48

    1,200,000       1,310,148  

Forest Lake Minnesota Charter School Revenue (Lake International Language Academy)

   

Series A 5.375% 8/1/50

    915,000       1,016,162  

Series A 5.75% 8/1/44

    705,000       757,360  

Hugo Charter School Lease Revenue (Noble Academy Project) Series A 5.00% 7/1/34

    255,000       271,124  
    Principal
Amount°
   

Value

(US $)

 

Municipal Bonds (continued)

 

Education Revenue Bonds (continued)

 

Hugo Charter School Lease Revenue (Noble Academy Project) Series A 5.00% 7/1/44

    775,000     $ 815,005  

Minneapolis Charter School Lease Revenue (Hiawatha Academies Project)

   

Series A 5.00% 7/1/36

    750,000       810,120  

Series A 5.00% 7/1/47

    900,000       961,920  

Minneapolis Student Housing Revenue (Riverton Community Housing Project)

   

5.25% 8/1/39

    205,000       219,770  

5.50% 8/1/49

    990,000       1,067,656  

Minnesota Higher Education Facilities Authority Revenue (Bethel University)
5.00% 5/1/47

    1,250,000       1,428,450  

(Carleton College)

   

4.00% 3/1/36

    485,000       548,564  

5.00% 3/1/44

    905,000       1,087,149  

(College of St. Benedict) 4.00% 3/1/36

    410,000       447,195  

(Gustavus Adolphus College) 5.00% 10/1/47

    2,600,000       3,059,186  

(Macalester College)

   

4.00% 3/1/42

    900,000       992,907  

4.00% 3/1/48

    600,000       658,764  

(St. Catherine University)

   

Series A 4.00% 10/1/38

    920,000       992,321  

Series A 5.00% 10/1/45

    785,000       917,948  

(St. Johns University)

   

Series 8-I 5.00% 10/1/31

    235,000       276,029  

Series 8-I 5.00% 10/1/34

    35,000       40,927  

(St. Olaf College) Series 8-N 4.00% 10/1/35

    590,000       663,473  

(St. Scholastic College) Series H 5.25% 12/1/35

    1,000,000       1,006,390  

(Trustees Of The Hamline University Of Minnesota) Series B 5.00% 10/1/47

    1,055,000       1,188,331  

(University of St. Thomas)

   

4.00% 10/1/44

    645,000       729,701  

5.00% 10/1/40

    750,000       932,385  

Series 7-U 5.00% 4/1/22

    750,000       817,020  
 

 

8


Table of Contents

    

 

    

 

   

Principal

  Amount°  

   

Value

      (US $)      

 

Municipal Bonds (continued)

 

Education Revenue Bonds (continued)

 

Minnesota Higher Education Facilities Authority Revenue
(University of St. Thomas)
Series A 4.00% 10/1/37

    500,000     $ 559,225  

Otsego Charter School
(Kaleidoscope Charter School)

   

Series A 5.00% 9/1/34

    230,000       242,574  

Series A 5.00% 9/1/44

    400,000       415,860  

Rice County Educational Facilities Revenue
(Shattuck-St. Mary’s School) Series A 144A 5.00% 8/1/22 #

    1,250,000       1,316,875  

St. Cloud Charter School Lease Revenue
(Stride Academy Project)
Series A 5.00% 4/1/46

    375,000       253,999  

St. Paul Housing & Redevelopment Authority Charter School Lease Revenue

   

(Academia Cesar Chavez School Project) Series A 5.25% 7/1/50

    825,000       872,223  

(Great River School Project) Series A 144A 4.75% 7/1/29 #

    200,000       214,300  

Series A 144A 5.50% 7/1/38 #

    240,000       261,595  

(Nova Classical Academy Project)

   

Series A 4.125% 9/1/47

    750,000       782,108  

Series A 6.375% 9/1/31

    750,000       807,757  

(Twin Cities Academy Project) Series A 5.30% 7/1/45

    630,000       674,648  

University of Minnesota

   

Series A 5.00% 9/1/40

    1,240,000       1,520,662  

Series A 5.00% 9/1/42

    2,000,000       2,443,940  

Series A 5.00% 4/1/44

    1,500,000       1,880,145  
   

 

 

 
   

 

 

 

39,575,494

 

 

   

 

 

 

Electric Revenue Bonds – 17.42%

 

Central Minnesota Municipal Power Agency Revenue
(Brookings Southeast Twin Cities Transportation) 5.00% 1/1/32

    1,130,000       1,220,536  
   

Principal

  Amount°  

   

Value

       (US $)       

 

Municipal Bonds (continued)

 

Electric Revenue Bonds (continued)

 

Central Minnesota Municipal Power Agency Revenue
(Brookings Twin Cities Transmission Project) 5.00% 1/1/42

    1,000,000     $ 1,073,720  

Chaska Electric Revenue Series A 5.00% 10/1/28

    445,000       531,401  

Minnesota Municipal Power Agency Electric Revenue

   

5.00% 10/1/25

    500,000       585,670  

5.00% 10/1/26

    500,000       585,380  

5.00% 10/1/27

    320,000       373,686  

5.00% 10/1/47

    1,755,000       2,072,673  

Northern Municipal Power Agency

   

Series A 5.00% 1/1/26

    100,000       110,535  

Series A 5.00% 1/1/30

    340,000       374,724  

Puerto Rico Electric Power Authority Revenue

   

Series CCC 5.25% 7/1/27 ‡

    545,000       437,363  

Series WW 5.00% 7/1/28 ‡

    770,000       616,000  

Rochester Electric Utility Revenue

   

Series A 5.00% 12/1/42

    605,000       720,053  

Series A 5.00% 12/1/47

    985,000       1,169,146  

Series B 5.00% 12/1/30

    1,300,000       1,474,265  

Series B 5.00% 12/1/43

    1,000,000       1,132,740  

Southern Minnesota Municipal Power Agency Supply Revenue

   

Series A 5.00% 1/1/41

    240,000       280,154  

Series A 5.00% 1/1/47

    1,650,000       1,996,071  

St. Paul Housing & Redevelopment Authority Charter School Lease Revenue

   

Series A 4.00% 10/1/33

    285,000       317,165  

Series B 4.00% 10/1/37

    800,000       877,640  

Western Minnesota Municipal Power Agency Supply Revenue

   

Series A 5.00% 1/1/25

    3,000,000       3,338,190  

Series A 5.00% 1/1/26

    1,000,000       1,110,710  

Series A 5.00% 1/1/33

    1,000,000       1,138,740  

Series A 5.00% 1/1/40

    750,000       849,833  

Series A 5.00% 1/1/46

    2,500,000       2,824,875  
 

 

(continues)                                                 9


Table of Contents

Schedules of investments

Delaware Investments® Minnesota Municipal Income Fund II, Inc.

 

   

Principal

  Amount°  

   

Value

      (US $)      

 

Municipal Bonds (continued)

 

Electric Revenue Bonds (continued)

 

Western Minnesota Municipal Power Agency Supply Revenue
Series A 5.00% 1/1/49

    3,860,000     $ 4,727,612  
   

 

 

 
   

 

 

 

29,938,882

 

 

   

 

 

 

Healthcare Revenue Bonds – 39.03%

 

Anoka Health Care Facilities Revenue 5.375% 11/1/34

    610,000       662,204  

Apple Valley Senior Housing Revenue

(PHS Senior Housing, Inc. Orchard Path Project)

   

4.50% 9/1/53

    1,160,000       1,210,112  

5.00% 9/1/58

    1,605,000       1,727,686  

Apple Valley Senior Living Revenue
(Senior Living LLC Project)

   

Series B 5.00% 1/1/47

    750,000       761,017  

Series D 7.00% 1/1/37

    720,000       740,448  

Series D 7.25% 1/1/52

    1,000,000       1,036,820  

Bethel Housing & Health Care Facilities Revenue
(Benedictine Health System-St. Peter Communities Project) Series A 5.50% 12/1/48

    500,000       526,825  

Center City Health Care Facilities Revenue
(Hazelden Betty Ford Foundation Project) 5.00% 11/1/27

    500,000       573,285  

(Hazelden Foundation Project) 5.00% 11/1/41

    1,600,000       1,604,704  

City of Bethel
(The Lodge at Lakes at Stillwater Project) 5.25% 6/1/58

    900,000       954,774  

City of Center City, Minnesota Healthcare Facilities Revenue Refunding
(Hazelden Betty Ford Foundation Project) 4.00% 11/1/41

    200,000       221,666  

City of Crookston, Minnesota Health Care Facilities Revenue
(Riverview Health Project) 5.00% 5/1/51

    1,390,000       1,513,279  
   

Principal

  Amount°  

   

Value

      (US $)      

 

Municipal Bonds (continued)

 

Healthcare Revenue Bonds (continued)

 

Cloquet Housing Facilities Revenue
(HADC Cloquet Project) Series A 5.00% 8/1/48

    500,000     $ 509,245  

Dakota County Community Development Agency Senior Housing Revenue

(Walker Highview Hills Project)

   

Series A 144A 5.00% 8/1/46 #

    370,000       383,298  

Series A 144A 5.00% 8/1/51 #

    755,000       781,108  

Deephaven Housing & Healthcare Revenue

(St. Therese Senior Living Project)

   

Series A 5.00% 4/1/38

    280,000       286,485  

Series A 5.00% 4/1/40

    270,000       276,075  

Duluth Economic Development Authority
(Essentia Health Obligated Group) Series A 5.00% 2/15/48

    810,000       953,929  

(St. Luke’s Hospital Authority Obligation Group)

   

5.75% 6/15/32

    1,400,000       1,530,172  

6.00% 6/15/39

    1,000,000       1,102,240  

Hayward
(American Baptist Homes Midwest) 5.75% 2/1/44

    500,000       525,720  

Hayward Health Care Facilities Revenue
(St. John’s Lutheran Home of Albert Lea) 5.375% 10/1/44

    260,000       271,024  

Maple Grove Health Care Facilities Revenue
(Maple Grove Hospital Corporation) 4.00% 5/1/37

    1,000,000       1,096,190  

(North Memorial Health Care) 5.00% 9/1/30

    865,000       1,014,187  

Maple Plain Senior Housing & Health Care Revenue (Haven Homes Project) 5.00% 7/1/54

    1,500,000       1,604,145  

Minneapolis Health Care System Revenue

   
 

 

10


Table of Contents

    

 

    

 

   

Principal

  Amount°  

   

Value

       (US $)       

 

Municipal Bonds (continued)

 

Healthcare Revenue Bonds (continued)

 

(Fairview Health Services)

   

Series A 4.00% 11/15/48

    2,855,000     $ 3,154,832  

Series A 5.00% 11/15/33

    500,000       589,030  

Series A 5.00% 11/15/34

    500,000       587,705  

Series A 5.00% 11/15/49

    2,000,000       2,400,420  

Minneapolis Senior Housing & Healthcare Revenue
(Ecumen Mill City Quarter)

   

5.25% 11/1/45

    850,000       892,899  

5.375% 11/1/50

    200,000       210,582  

(Ecumen-Abiitan Mill City Project) 5.00% 11/1/35

    220,000       231,766  

Minneapolis – St. Paul Housing & Redevelopment Authority Health Care Revenue
(Allina Health System) Series A 5.00% 11/15/29

    585,000       723,247  

(Children’s Health Care Facilities) Series A1 5.00% 8/15/34 (AGM)

    500,000       513,645  

Rochester Health Care & Housing Revenue
(The Homestead at Rochester Project) Series A 6.875% 12/1/48

    1,220,000       1,333,643  

Rochester Health Care Facilities Revenue
(Mayo Clinic) 4.00% 11/15/41

    4,860,000       5,072,382  

Sartell Health Care Facilities Revenue

(Country Manor Campus Project)

   

5.25% 9/1/30

    1,000,000       1,075,920  

Series A 5.30% 9/1/37

    600,000       655,926  

Shakopee Health Care Facilities Revenue
(St. Francis Regional Medical Center)

   

4.00% 9/1/31

    205,000       220,404  

5.00% 9/1/34

    165,000       185,201  

St. Cloud Health Care Revenue

(Centracare Health System Project)

   

4.00% 5/1/49

    1,585,000       1,755,055  

5.00% 5/1/48

    3,150,000       3,839,787  

St. Cloud Health Care Revenue

   
   

Principal

  Amount°  

   

Value

       (US $)       

 

Municipal Bonds (continued)

 

Healthcare Revenue Bonds (continued)

 

(Centracare Health System Project)

   

Series A 4.00% 5/1/37

    1,295,000     $ 1,425,070  

Series A 5.00% 5/1/46

    4,800,000       5,605,344  

Series B 5.00% 5/1/24

    1,400,000       1,616,188  

(Unrefunded - Centracare Health System Project)
5.125% 5/1/30

    95,000       96,960  

St. Paul Housing & Redevelopment Authority Health Care Facilities Revenue
(Allina Health System) Series A1 5.25% 11/15/29

    640,000       643,072  

(Fairview Health Services)

   

Series A 4.00% 11/15/43

    905,000       996,170  

Series A 5.00% 11/15/47

    680,000       809,309  

(Health Partners Obligation Group Project)

   

5.00% 7/1/29

    2,000,000       2,346,540  

Series A 5.00% 7/1/32

    1,100,000       1,268,685  

St. Paul Housing & Redevelopment Authority Housing & Health Care Facilities Revenue

(Senior Episcopal Homes Project)

   

5.125% 5/1/48

    1,200,000       1,232,892  

Series A 4.75% 11/1/31

    740,000       745,010  

Wayzata Senior Housing Revenue

(Folkestone Senior Living Community)

   

3.75% 8/1/37

    500,000       514,570  

4.00% 8/1/38

    250,000       260,460  

4.00% 8/1/44

    350,000       362,691  

5.00% 8/1/54

    400,000       439,592  

Winona Health Care Facilities Revenue
(Winona Health Obligation)

   

4.65% 7/1/26

    465,000       481,322  

4.75% 7/1/27

    785,000       814,155  

5.00% 7/1/34

    750,000       778,305  
 

 

(continues)                                                 11


Table of Contents

Schedules of investments

Delaware Investments® Minnesota Municipal Income Fund II, Inc.

 

   

Principal

  Amount°  

   

Value

      (US $)      

 

Municipal Bonds (continued)

 

Healthcare Revenue Bonds (continued)

 

Woodbury Housing & Redevelopment Authority Revenue
(St. Therese of Woodbury) 5.125% 12/1/44

    1,250,000     $ 1,320,925  
   

 

 

 
   

 

 

 

67,066,342

 

 

   

 

 

 

Housing Revenue Bonds – 1.83%

 

Minneapolis Multifamily Housing Revenue
(Olson Townhomes Project) 6.00% 12/1/19 (AMT)

    190,000       190,433  

Minnesota Housing Finance Agency
(Non Ace - State Appropriated Housing) 5.00% 8/1/33

    1,390,000       1,611,399  

Minnesota State Housing Finance Agency Homeownership
(Mortgage-Backed Securities Program) 4.40% 7/1/32 (GNMA) (FNMA)

    740,000       748,155  

Northwest Multi-County Housing & Redevelopment Authority
(Pooled Housing Program)
5.50% 7/1/45

    560,000       599,043  
   

 

 

 
   

 

 

 

3,149,030

 

 

   

 

 

 

Lease Revenue Bonds – 9.63%

 

Minnesota State General Fund Revenue Appropriations

   

Series A 5.00% 6/1/32

    780,000       879,778  

Series A 5.00% 6/1/38

    5,500,000       6,161,430  

Series A 5.00% 6/1/43

    1,750,000       1,952,580  

Series B 5.00% 3/1/29

    1,000,000       1,083,430  

Minnesota State Housing Finance Agency
(Non Ace - State Appropriated Housing) Series C 5.00% 8/1/36

    1,000,000       1,156,050  
   

Principal

  Amount°  

   

Value

      (US $)      

 

Municipal Bonds (continued)

 

Lease Revenue Bonds (continued)

 

University of Minnesota Special Purpose Revenue

(State Supported Biomed Science Research)

   

5.00% 8/1/35

    1,040,000     $ 1,070,004  

5.00% 8/1/36

    4,000,000       4,241,960  
   

 

 

 
   

 

 

 

16,545,232

 

 

   

 

 

 

Local General Obligation Bonds – 12.29%

 

Brainerd Independent School District No. 181

(General Obligation School Building Bonds)

   

Series A 4.00% 2/1/38

    1,500,000       1,673,655  

Series A 4.00% 2/1/43

    1,500,000       1,657,470  

Burnsville-Eagan-Savage Independent School District No 191
(Alternative Facilities) Series A 4.00% 2/1/28

    1,185,000       1,325,719  

Duluth Independent School District No 709
Series A 4.00% 2/1/27

    600,000       670,962  

Duluth, Minnesota (Improvement DECC)
Series A 5.00% 2/1/34

    545,000       654,589  

Edina Independent School District No. 273 Series A 5.00% 2/1/27

    1,500,000       1,784,325  

Hennepin County

   

Series A 5.00% 12/1/36

    1,190,000       1,456,310  

Series A 5.00% 12/1/37

    1,240,000       1,543,093  

Series A 5.00% 12/1/41

    1,060,000       1,283,660  

Hopkins Independent School District No. 270
Series A 5.00% 2/1/28

    1,000,000       1,046,830  

Mahtomedi Independent School District No. 832
(School Building) Series A 5.00% 2/1/28

    515,000       609,992  

Mounds View Independent School District No. 621
(School Building) Series A 4.00% 2/1/43

    2,000,000       2,207,140  

St. Michael-Albertville Independent School District No. 885
(School Building) Series A 5.00% 2/1/27

    1,300,000       1,580,683  
 

 

12


Table of Contents

    

 

    

 

   

Principal

  Amount°  

   

Value

      (US $)      

 

Municipal Bonds (continued)

 

Local General Obligation Bonds (continued)

 

St. Paul Independent School District No. 625
(School Building) Series B 5.00% 2/1/26

    1,000,000     $ 1,119,340  

Willmar
(Rice Memorial Hospital Project) Series A 4.00% 2/1/32

    2,440,000       2,509,223  
   

 

 

 
   

 

 

 

21,122,991

 

 

   

 

 

 

Pre-Refunded/Escrowed to Maturity Bonds – 12.65%

 

Dakota-Washington Counties Housing & Redevelopment Authority Single Family Residential Mortgage Revenue
(City of Bloomington) Series B 8.375% 9/1/21 (GNMA) (AMT)

    7,055,000       7,915,075  

Deephaven Charter School
(Eagle Ridge Academy Project) Series A 5.50% 7/1/43-23 §

    500,000       575,955  

Minnesota Higher Education Facilities Authority Revenue
(College of St. Benedict)

   

Series 7-M 5.00% 3/1/31-20 §

    300,000       304,539  

Series 7-M 5.125% 3/1/36-20 §

    275,000       279,301  

(St. Catherine University) Series 7-Q 5.00% 10/1/32-22 §

    700,000       773,059  

Minnesota State
(Various Purposes) Series D 5.00% 8/1/24-20 §

    65,000       66,995  

Rochester Health Care & Housing Revenue
(Samaritan Bethany) Series A 7.375% 12/1/41-19 §

    1,220,000       1,231,785  

St. Cloud Health Care Revenue
(Centracare Health System Project) Series A 5.125% 5/1/30-20 §

    2,330,000       2,381,074  
   

Principal

  Amount°  

   

Value

      (US $)      

 

Municipal Bonds (continued)

 

Pre-Refunded/Escrowed to Maturity Bonds (continued)

 

St. Paul Housing & Redevelopment Authority Hospital Facility

(Healtheast Care System Project)

   

Series A 5.00% 11/15/29-25 §

    395,000     $ 476,567  

Series A 5.00% 11/15/30-25 §

    290,000       349,885  

University of Minnesota

   

Series A 5.50% 7/1/21

    2,815,000       2,954,399  

Series D 5.00% 12/1/27-21 §

    1,110,000       1,198,079  

Series D 5.00% 12/1/36-21 §

    3,000,000       3,238,050  
   

 

 

 
   

 

 

 

21,744,763

 

 

   

 

 

 

Special Tax Revenue Bonds – 2.31%

 

Guam Government Business Privilege Tax Revenue
Series A 5.25% 1/1/36

    150,000       158,491  

Minneapolis Revenue
(YMCA Greater Twin Cities Project) 4.00% 6/1/29

    165,000       182,912  

Puerto Rico Sales Tax Financing Revenue
(Restructured)

   

Series A-1 4.55% 7/1/40

    1,250,000       1,291,950  

Series A-1 4.75% 7/1/53

    1,000,000       1,040,000  

Series A-1 5.00% 7/1/58

    200,000       211,344  

St. Paul Sales Tax Revenue
Series G 5.00% 11/1/30

    935,000       1,091,379  
   

 

 

 
   

 

 

 

3,976,076

 

 

   

 

 

 

State General Obligation Bonds – 11.60%

 

Minnesota State

   

Series A 5.00% 8/1/29

    700,000       841,666  

Series E 5.00% 10/1/26

    1,480,000       1,844,494  

(State Trunk Highway)

   

Series B 5.00% 10/1/22

    5,500,000       5,907,000  

Series B 5.00% 10/1/29

    3,315,000       3,548,707  
 

 

(continues)                                                 13


Table of Contents

Schedules of investments

Delaware Investments® Minnesota Municipal Income Fund II, Inc.

 

   

Principal

  Amount°  

   

Value

      (US $)      

 

Municipal Bonds (continued)

 

State General Obligation Bonds (continued)

 

Minnesota State
(Various Purposes)

   

Series A 5.00% 8/1/38

    500,000     $ 630,005  

Series D 5.00% 8/1/24

    2,635,000       2,715,236  

Series F 5.00% 10/1/22

    4,000,000       4,442,320  
   

 

 

 
   

 

 

 

19,929,428

 

 

   

 

 

 

Transportation Revenue Bonds – 8.13%

 

Minneapolis – St. Paul Metropolitan Airports Commission Revenue
(Subordinate)

   

5.00% 1/1/22

    670,000       701,463  

Series A 5.00% 1/1/31

    410,000       502,750  

Series A 5.00% 1/1/32

    1,255,000       1,533,685  

Series A 5.00% 1/1/49

    2,000,000       2,473,840  

Series B 5.00% 1/1/26

    540,000       583,870  

Series B 5.00% 1/1/26 (AMT)

    500,000       569,185  

Series B 5.00% 1/1/27

    1,190,000       1,285,021  

Series B 5.00% 1/1/30

    500,000       537,730  

Series B 5.00% 1/1/31

    250,000       268,405  

Series C 5.00% 1/1/33

    2,000,000       2,438,000  

Series C 5.00% 1/1/36

    1,000,000       1,210,650  

Series C 5.00% 1/1/46

    1,245,000       1,481,264  

St. Paul Port Authority Revenue
(Amherst H. Wilder Foundation) Series 3 5.00% 12/1/36

    380,000       385,419  
   

 

 

 
   

 

 

 

13,971,282

 

 

   

 

 

 

Water & Sewer Revenue Bonds – 3.15%

 

Guam Government Waterworks Authority
5.00% 7/1/40

    840,000       970,393  

Metropolitan Council Waste Water Revenue

   

Series B 4.00% 9/1/27

    1,145,000       1,235,547  

Series C 4.00% 3/1/31

    1,355,000       1,582,328  

Series C 4.00% 3/1/32

    1,405,000       1,633,017  
   

 

 

 
   

 

 

 

5,421,285

 

 

   

 

 

 

Total Municipal Bonds
(cost $232,396,413)

      245,232,960  
   

 

 

 
   

Principal

  Amount°  

   

Value

      (US $)      

 

Short-Term Investments – 0.58%

 

Variable Rate Demand Notes – 0.58%¤

 

Minneapolis – St. Paul Housing & Redevelopment Authority Health Care Facilities Revenue

   

Series A (Children’s Health Care) 1.70% 8/15/34 (AGM) (SPA – U.S. Bank N.A.)

    400,000     $ 400,000  

Series A-1 (Children’s Hospitals and Clinics) 1.70% 8/15/37 (AGM) (SPA – U.S. Bank N.A.)

    600,000       600,000  
   

 

 

 

Total Short-Term Investments
(cost $1,000,000)

      1,000,000  
   

 

 

 

Total Value of Securities – 143.28%
(cost $233,396,413)

    $  246,232,960  
   

 

 

 

 

#

Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended.At Sept. 30, 2019, the aggregate value of Rule 144A securities was $4,694,711, which represents 2.73% of the Fund’s net assets. See Note 5 in “Notes to financial statements.”

¤

Tax-exempt obligations that contain a floating or variable interest rate adjustment formula and an unconditional right of demand to receive payment of the unpaid principal balance plus accrued interest upon a short notice period (generally up to 30 days) prior to specified dates either from the issuer or by drawing on a bank letter of credit, a guarantee, or insurance issued with respect to such instrument. Each rate shown is as of Sept. 30, 2019.

§

Pre-refunded bonds. Municipal bonds that are generally backed or secured by USTreasury bonds.For pre-refunded bonds,the stated maturity is followed by the year in which the bond will be pre-refunded. See Note 5 in “Notes to financial statements.”

°

Principal amount shown is stated in USD unless noted that the security is denominated in another currency.

Non-income producing security. Security is currently in default.

 

 

14


Table of Contents

    

 

    

 

Summary of abbreviations:

AGM – Insured by Assured Guaranty Municipal Corporation

AMT – Subject to Alternative Minimum Tax

FNMA – Federal National Mortgage Association Collateral

GNMA – Government National Mortgage Association Collateral

N.A. – National Association

SPA – Stand-by Purchase Agreement

USD – United States Dollar

See accompanying notes, which are an integral part of the financial statements.

 

 

15


Table of Contents

Schedules of investments

Delaware Investments® National Municipal Income Fund

September 30, 2019 (Unaudited)

 

    Principal
Amount°
   

Value

(US $)

 

Municipal Bonds – 142.12%

 

Corporate Revenue Bonds – 15.27%

 

Buckeye, Ohio Tobacco Settlement Financing Authority
(Asset-Backed Senior Turbo) Series A-2 5.875% 6/1/47

    2,000,000     $ 2,008,800  

Central Plains Energy Project Revenue, Nebraska
(Project No. 3) Series A 5.00% 9/1/36

    225,000       297,049  

Commonwealth Financing Authority Revenue, Pennsylvania
(Tobacco Master Settlement Payment) 4.00% 6/1/39 (AGM)

    1,015,000       1,126,477  

Florida Development Finance Surface Transportation Facilities Revenue (Virgin Trains USA Passenger Rail Project)
Series A 144A 6.50% 1/1/49 (AMT)#

    475,000       441,750  

Golden State Tobacco Securitization, California
Series A-1 5.00% 6/1/47

    250,000       256,525  

Louisiana Local Government Environmental Facilities & Community Development Authority
(Westlake Chemical)

   

Series A 6.50% 8/1/29

    645,000       672,129  

Series A-1 6.50% 11/1/35

    255,000       268,240  

M-S-R Energy Authority, California Gas

   

Series B 6.50% 11/1/39

    250,000       393,403  

Series C 7.00% 11/1/34

    1,000,000       1,535,630  

New York Transportation Development
(Delta Air Lines, Inc. - LaGuardia Airport Terminals C&D Redevelopment Project) 4.00% 1/1/36 (AMT)

    750,000       820,057  

Shoals, Indiana
(National Gypsum Project) 7.25% 11/1/43 (AMT)

    310,000       344,980  
    Principal
Amount°
   

Value

(US $)

 

Municipal Bonds (continued)

 

Corporate Revenue Bonds (continued)

 

Suffolk County, New York Tobacco Asset Securitization Series B 5.00% 6/1/32

    750,000     $ 793,433  

Tobacco Settlement Financing Corporation, Louisiana Asset-Backed Note Series A 5.25% 5/15/35

    460,000       506,032  

Tobacco Settlement Financing Corporation, New Jersey

   

Series A 5.00% 6/1/46

    130,000       147,157  

Series B 5.00% 6/1/46

    335,000       369,622  

TSASC Revenue, New York
(Settlement) Series A 5.00% 6/1/41

    60,000       67,068  

Valparaiso, Indiana
(Pratt Paper Project) 7.00% 1/1/44 (AMT)

    240,000       281,914  
   

 

 

 
   

 

 

 

    10,330,266

 

 

   

 

 

 

Education Revenue Bonds – 27.28%

 

Arizona Industrial Development Authority Revenue
(American Charter Schools Foundation Project) 144A 6.00% 7/1/47 #

    330,000       376,164  

California Educational Facilities Authority Revenue
(Loma Linda University) Series A 5.00% 4/1/47

    500,000       585,425  

(Stanford University) Series V-1 5.00% 5/1/49

    1,000,000       1,551,210  

East Hempfield Township, Pennsylvania Industrial Development Authority
(Student Services Income - Student Housing Project) 5.00% 7/1/35

    1,000,000       1,075,160  

Health & Educational Facilities Authority of the State of Missouri
(St. Louis College of Pharmacy Project) 5.25% 5/1/33

    500,000       541,515  

(Washington University) Series B 5.00% 11/15/30

    600,000       644,970  
 

 

16


Table of Contents

    

 

    

 

    Principal
Amount°
   

Value

(US $)

 

Municipal Bonds (continued)

 

Education Revenue Bonds (continued)

 

Illinois Finance Authority Revenue (CHF - Chicago, L.L.C. - University Of Illinois at Chicago Project) Series A 5.00% 2/15/50

    460,000     $ 518,540  

(Chicago International Charter School Project) 5.00% 12/1/47

    535,000       592,015  

Kent County, Delaware Student Housing and Dining Facilities Revenue (CHF-Dover, L.L.C. - Delaware State University Project) Series A 5.00% 7/1/53

    115,000       126,653  

Louisiana Public Facilities Authority Revenue (Provident Group-Flagship Properties) Series A 5.00% 7/1/56

    500,000       571,680  

Maryland Health & Higher Educational Facilities Authority (Loyola University) Series A 5.00% 10/1/39

    650,000       705,653  

Massachusetts Development Finance Agency (Umass Boston Student Housing Project) 5.00% 10/1/48

    285,000       323,016  

Montgomery County, Pennsylvania Higher Education & Health Authority Revenue (Arcadia University) 5.25% 4/1/30

    550,000       558,563  

New Hope, Texas Cultural Education Facilities (Chief-Collegiate Housing- Tarleton St.) Series A 5.00% 4/1/34

    1,000,000       1,085,340  

New York City, New York Trust For Cultural Resources (Whitney Museum of American Art) 5.00% 7/1/31

    500,000       521,885  

New York State Dormitory Authority (Columbia University) 5.00% 10/1/41

    600,000       632,088  
    Principal
Amount°
   

Value

(US $)

 

Municipal Bonds (continued)

 

Education Revenue Bonds (continued)

 

Pennsylvania State University Series A 5.00% 9/1/47

    1,000,000     $ 1,212,520  

Philadelphia, Pennsylvania Authority for Industrial Development (1st Philadelphia Preparatory College) Series A 7.25% 6/15/43

    370,000       428,786  

Phoenix, Arizona Industrial Development Authority Revenue (Rowan University Project) 5.00% 6/1/42

    1,000,000       1,066,420  

Pima County, Arizona Industrial Development Authority Education Revenue (Edkey Charter School Project) 6.00% 7/1/48

    500,000       500,505  

Private Colleges & Universities Authority Revenue, Georgia (Mercer University) Series A 5.00% 10/1/32

    135,000       142,185  

Swarthmore Borough Authority, Pennsylvania (Swarthmore College Project) 5.00% 9/15/32

    490,000       556,944  

Troy, New York Capital Resource Revenue (Rensselaer Polytechnic) Series A 5.125% 9/1/40

    600,000       619,686  

University of California

   

Series AI 5.00% 5/15/32

    1,000,000       1,128,940  

Series AZ 5.25% 5/15/58

    465,000       576,093  

University of Texas System Revenue Financing System Bonds Series B 5.00% 8/15/49

    1,000,000       1,553,640  

Wyoming Community Development Authority Student Housing Revenue (CHF-Wyoming LLC) 6.50% 7/1/43

    250,000       262,905  
   

 

 

 
   

 

 

 

18,458,501

 

 

   

 

 

 

Electric Revenue Bonds – 3.95%

   

JEA Electric System Revenue, Florida Series A 5.00% 10/1/33

    355,000       399,822  
 

 

(continues)                                                 17


Table of Contents

Schedules of investments

Delaware Investments® National Municipal Income Fund

 

     Principal
Amount°
    

Value

(US $)

 

Municipal Bonds (continued)

 

Electric Revenue Bonds (continued)

 

Long Island Power Authority, New York Electric System Revenue 5.00% 9/1/47

     305,000      $ 365,634  

Series A 5.00% 9/1/44

     250,000        285,113  

Series B 5.00% 9/1/46

     130,000        153,600  

Municipal Electric Authority of Georgia (Plant Vogtle Units 3 & 4 Project) Series A 5.00% 1/1/56

     400,000        461,500  

Philadelphia, Pennsylvania Gas Works Revenue
(1998 General Ordinance Fifteenth Series) 5.00% 8/1/47

     500,000        588,270  

Puerto Rico Electric Power Authority Revenue

     

Series CCC 5.25% 7/1/27 ‡

     215,000        172,537  

Series WW 5.00% 7/1/28 ‡

     305,000        244,000  
     

 

 

 
     

 

 

 

    2,670,476

 

 

     

 

 

 

Healthcare Revenue Bonds – 29.60%

 

Alabama Special Care Facilities Financing Authority-Birmingham Alabama
(Methodist Home for the Aging) 6.00% 6/1/50

     500,000        567,025  

Allegheny County Hospital, Pennsylvania Development Authority
(Allegheny Health Network Obligated Group Issue) Series A 4.00% 4/1/44

     300,000        323,295  

Arizona Industrial Development Authority Revenue
(Great Lakes Senior Living Communities LLC Project)

     

Series A 5.00% 1/1/54

     190,000        213,039  

Series B 5.00% 1/1/49

     70,000        77,840  

Series B 5.125% 1/1/54

     85,000        94,987  

Berks County, Pennsylvania Industrial Development Authority Revenue
(Tower Health Project) 5.00% 11/1/50

     1,000,000        1,154,390  
     Principal
Amount°
    

Value

(US $)

 

Municipal Bonds (continued)

 

Healthcare Revenue Bonds (continued)

 

Brookhaven Development Authority Revenue, Georgia
(Children’s Healthcare of Atlanta) Series A 4.00% 7/1/49

     30,000      $ 33,342  

California Health Facilities Financing Authority Revenue
(Kaiser Permanente)

     

Series A-2 4.00% 11/1/44

     460,000        510,972  

Series A-2 5.00% 11/1/47

     400,000        611,936  

California Statewide Communities Development Authority
(Loma Linda University Medical Center) Series A 144A 5.25% 12/1/56 #

     760,000        860,692  

Capital Trust Agency, Florida
(Tuscan Gardens Senior Living Center) Series A 7.00% 4/1/49

     375,000        372,683  

Colorado Health Facilities Authority Revenue
(CommonSpirit Health) Series A-2 5.00% 8/1/44

     1,000,000        1,194,100  

(Healthcare Facilities - American Baptist) 8.00% 8/1/43

     330,000        375,652  

Cuyahoga County, Ohio Hospital Revenue
(The Metrohealth System) 5.50% 2/15/57

     1,000,000            1,164,860  

Idaho Health Facilities Authority Revenue
(St. Luke’s Health System Project) Series A 5.00% 3/1/33

     1,250,000        1,521,525  

Kalispell, Montana
(Immanuel Lutheran Corporation Project) Series A 5.25% 5/15/37

     700,000        763,714  

Maine Health & Higher Educational Facilities Authority Revenue
(Maine General Medical Center) 6.75% 7/1/41

     300,000        322,770  
 

 

18


Table of Contents

    

 

    

 

    Principal
Amount°
   

Value

(US $)

 

Municipal Bonds (continued)

 

Healthcare Revenue Bonds (continued)

 

Maryland Health & Higher Educational Facilities Authority
(University Of Maryland Medical System Issue) Series D 4.00% 7/1/48

    255,000     $ 277,833  

Miami-Dade County, Florida Health Facilities Authority Revenue
(Nicklaus Children’s Hospital Project) 5.00% 8/1/47

    200,000       235,932  

Michigan Finance Authority Revenue
(Beaumont Health Credit Group) 5.00% 11/1/44

    1,000,000       1,151,270  

Montgomery County Higher Education & Health Authority Revenue
(Thomas Jefferson University) 4.00% 9/1/49

    750,000       814,065  

Moon, Pennsylvania Industrial Development Authority
(Baptist Homes Society Obligation) 6.125% 7/1/50

    750,000       817,793  

New Hope, Texas Cultural Education Facilities
(Cardinal Bay Inc.)

   

Series A1 5.00% 7/1/51

    135,000       148,003  

Series B 4.75% 7/1/51

    160,000       161,275  

New Jersey Health Care Facilities Financing Authority Revenue
(St. Peters University Hospital) 6.25% 7/1/35

    300,000       319,320  

New York State Dormitory Authority
(Orange Regional Medical Center) 144A 5.00% 12/1/35 #

    500,000       588,420  

Orange County, Florida Health Facilities Authority Revenue
(Mayflower Retirement Center)

   

5.00% 6/1/32

    400,000       416,352  

5.00% 6/1/36

    250,000       259,570  

5.125% 6/1/42

    750,000       777,345  
    Principal
Amount°
   

Value

(US $)

 

Municipal Bonds (continued)

 

Healthcare Revenue Bonds (continued)

 

Oregon State Facilities Authority Revenue
(Peacehealth Project) Series A 5.00% 11/15/29

    500,000     $ 575,105  

Palm Beach County Health Facilities Authority, Florida
(Sinai Residences Boca Raton Project)

   

Series A 7.25% 6/1/34

    20,000       22,430  

Series A 7.50% 6/1/49

    105,000       118,307  

Palomar Health, California
5.00% 11/1/39

    130,000       148,881  

Tarrant County, Texas Cultural Education Facilities Finance
(Buckner Senior Living - Ventana Project) 6.75% 11/15/47

    250,000       288,193  

Washington Health Care Facilities Authority Revenue
(CommonSpirit Health) Series A-2 5.00% 8/1/38

    250,000       302,190  

Westminster, Maryland
(Lutheran Village Millers Grant) Series A 6.00% 7/1/34

    500,000       561,880  

Wisconsin Health & Educational Facilities Authority
(Covenant Communities, Inc. Project) Series B 5.00% 7/1/53

    1,000,000       1,071,410  

Yavapai County, Arizona Industrial Development Authority Revenue
(Yavapai Regional Medical Center) Series A 5.00% 8/1/28

    720,000       812,095  
   

 

 

 
   

 

 

 

20,030,491

 

 

   

 

 

 

Lease Revenue Bonds – 5.85%

   

California State Public Works Board Lease Revenue
(Various Capital Projects) Series A 5.00% 4/1/37

    1,000,000       1,083,950  

Idaho State Building Authority Revenue
(Health & Welfare Project) Series A 5.00% 9/1/24

    110,000       121,094  
 

 

(continues)                                                 19


Table of Contents

Schedules of investments

Delaware Investments® National Municipal Income Fund

 

    Principal
Amount°
   

Value

(US $)

 

Municipal Bonds (continued)

 

Lease Revenue Bonds (continued)

 

Minnesota State General Revenue Appropriations
Series B 5.00% 3/1/29

    1,000,000     $ 1,083,430  

New Jersey Economic Development Authority
Series WW 5.25% 6/15/30

    1,000,000       1,152,210  

Public Finance Authority, Wisconsin Airport Facilities Revenue
(AFCO Investors II Portfolio) 144A 5.75% 10/1/31 (AMT)#

    500,000       521,820  
   

 

 

 
   

 

 

 

3,962,504

 

 

   

 

 

 

Local General Obligation Bonds – 3.95%

 

Chicago Board of Education, Illinois

   

5.00% 4/1/42

    205,000       231,277  

5.00% 4/1/46

    210,000       235,805  

Chicago, Illinois

   

Series A 5.50% 1/1/34

    225,000       253,204  

Series A 5.50% 1/1/49

    150,000       175,608  

Series C 5.00% 1/1/38

    500,000       552,995  

District of Columbia Series A 5.00% 6/1/37

    1,000,000       1,221,840  
   

 

 

 
   

 

 

 

2,670,729

 

 

   

 

 

 

Pre-Refunded/Escrowed to Maturity Bonds – 6.73%

 

Bowling Green, Ohio Student Housing Revenue
(CFP I State University Project) 6.00% 6/1/45-20§

    260,000       268,081  

California Municipal Finance Authority Mobile Home Park Revenue
(Caritas Project) Series A 6.40% 8/15/45-20§

    390,000       407,480  

Central Texas Regional Mobility Authority Revenue Senior Lien 6.00% 1/1/41-21§

    520,000       549,593  

JEA Electric System Revenue, Florida Series A 5.00% 10/1/33-23§

    645,000       737,938  

Louisiana Public Facilities Authority Revenue
(Ochsner Clinic Foundation Project) 6.50% 5/15/37-21§

    105,000       113,649  
    Principal
Amount°
   

Value

(US $)

 

Municipal Bonds (continued)

 

Pre-Refunded/Escrowed to Maturity Bonds (continued)

 

Maryland State Economic Development Revenue
(Transportation Facilities Project) Series A 5.75% 6/1/35-20§

    255,000     $ 262,438  

Metropolitan Transportation Authority Revenue, New York Series A 5.00% 11/15/41-21§

    190,000       205,605  

(Unrefunded) Series A 5.00% 11/15/41-21§

    310,000       335,460  

Monroe County, New York Industrial Development Revenue (Nazareth College Rochester Project) 5.50% 10/1/41-21§

    495,000       537,189  

Monroe County, Pennsylvania Hospital Authority Revenue
(Pocono Medical Center) Series A 5.00% 1/1/41-22§

    500,000       539,440  

New Jersey Turnpike Authority Series A 5.00% 1/1/27-22§

    25,000       27,545  

New York City, New York Water & Sewer System Revenue
5.00% 6/15/47-23§

    160,000       181,766  

Oregon State Facilities Authority Revenue (Concordia University Project) Series A 144A
6.125% 9/1/30-20#§

    100,000       104,293  

Pennsylvania Turnpike Commission Subordinate
(Motor License Fund) Series B 5.00% 12/1/41-21§

    260,000       280,922  
   

 

 

 
   

 

 

 

4,551,399

 

 

   

 

 

 

Special Tax Revenue Bonds – 15.07%

 

Allentown, Pennsylvania Neighborhood Improvement Zone Development Authority Revenue
(City Center Project) 144A 5.375% 5/1/42 #

    175,000       196,513  
 

 

20


Table of Contents

    

 

    

 

    Principal
Amount°
   

Value

(US $)

 

Municipal Bonds (continued)

               

Special Tax Revenue Bonds (continued)

 

Guam Government Business Privilege Tax Revenue Series B-1 5.00% 1/1/42

    540,000     $ 563,949  

Kansas City, Missouri Redevelopment Authority Revenue
(Convention Centre Hotel Project - TIF Financing) Series B 144A 5.00% 2/1/40 #

    135,000       149,106  

Massachusetts Bay Transportation Authority
Senior Series A 5.25% 7/1/29

    200,000       266,246  

Mosaic District, Virginia Community Development Authority Revenue
Series A 6.875% 3/1/36

    520,000       548,636  

New Jersey Economic Development Authority Revenue
(Cigarette Tax)

   

5.00% 6/15/28

    200,000       214,534  

5.00% 6/15/29

    800,000       856,712  

New York State Dormitory Authority
Series A 5.00% 3/15/33

    1,000,000       1,126,230  

Northampton County, Pennsylvania Industrial Development Authority Revenue
(Route 33 Project) 7.00% 7/1/32

    205,000       231,517  

Port Authority of Allegheny County, Pennsylvania Special Revenue Transportation Refunding
5.75% 3/1/29

    900,000       954,468  

Public Finance Authority, Wisconsin Airport Facilities Revenue
(American Dream @ Meadowlands Project) 144A 7.00% 12/1/50 #

    380,000       456,361  

Puerto Rico Sales Tax Financing Revenue
(Restructured)

   

Series A-1 4.75% 7/1/53

    3,065,000       3,187,600  

Series A-1 5.00% 7/1/58

    105,000       110,956  
    Principal
Amount°
   

Value

(US $)

 

Municipal Bonds (continued)

               

Special Tax Revenue Bonds (continued)

 

Regional Transportation District, Colorado Tax Revenue
(Denver Transit Partners) 6.00% 1/15/41

    500,000     $ 514,670  

Sales Tax Securitization, Illinois
Series A 5.00% 1/1/40

    500,000       576,655  

Wyandotte County, Kansas City, Kansas Unified Government Special Obligation Revenue
(Sales Tax - Vacation Village Project A) Series A 5.75% 9/1/32

    220,000       242,279  
   

 

 

 
   

 

 

 

10,196,432

 

 

   

 

 

 

State General Obligation Bonds – 9.27%

 

California State
5.25% 11/1/40

    320,000       332,781  

(Various Purposes)

   

4.00% 10/1/44

    1,000,000       1,145,600  

5.00% 4/1/32

    270,000       369,657  

5.00% 10/1/41

    440,000       469,942  

5.00% 11/1/47

    1,000,000       1,222,250  

Illinois State

   

5.00% 11/1/29

    595,000       679,835  

5.00% 5/1/36

    90,000       97,533  

5.00% 11/1/36

    1,170,000       1,305,006  

5.00% 2/1/39

    160,000       171,976  

Series A 5.00% 4/1/38

    170,000       180,562  

New York State Series A 5.00% 2/15/39

    300,000       300,888  
   

 

 

 
   

 

 

 

6,276,030

 

 

   

 

 

 

Transportation Revenue Bonds – 24.01%

 

Alameda Corridor, California Transportation Authority
(2nd Sub Lien) Series B 5.00% 10/1/37

    430,000       503,865  

Atlanta, Georgia Department of Aviation Series B 5.00% 1/1/29

    1,000,000       1,144,120  

California Municipal Finance Authority Mobile Home Park Revenue
(LINXS APM Project) Series A 5.00% 12/31/47 (AMT)

    615,000       726,635  
 

 

(continues)                                                 21


Table of Contents

Schedules of investments

Delaware Investments® National Municipal Income Fund

 

    Principal
Amount°
   

Value

(US $)

 

Municipal Bonds (continued)

 

Transportation Revenue Bonds (continued)

 

Chicago, Illinois O’Hare International Airport Revenue (General-Senior Lien) Series D 5.25% 1/1/34

    1,000,000     $ 1,108,190  

Harris County, Texas Toll Road Authority Revenue (Senior Lien) Series A 4.00% 8/15/48

    500,000       559,950  

New Jersey Turnpike Authority

   

Series A 4.00% 1/1/48

    1,000,000       1,118,810  

Series B 5.00% 1/1/40

    250,000       303,473  

New Orleans, Louisiana Aviation Board Series B 5.00% 1/1/45 (AMT)

    1,000,000       1,119,540  

New York Liberty Development Revenue (1 World Trade Center Port Authority Construction) 5.00% 12/15/41

    500,000       539,775  

New York Transportation Development (La Guardia Airport) Series A 5.25% 1/1/50 (AMT)

    700,000       781,354  

Pennsylvania Turnpike Commission Subordinate

   

Series A-1 5.00% 12/1/43

    500,000       561,345  

Series A-1 5.00% 12/1/47

    210,000       251,149  

(Motor License Fund) Series B 5.00% 12/1/41

    240,000       254,422  

Port Authority of New York & New Jersey Special Project (JFK International Air Terminal)

   

6.00% 12/1/42

    230,000       241,965  

6.50% 12/1/28

    500,000       523,730  

Salt Lake City, Utah Airport Revenue Series B 5.00% 7/1/42

    625,000       751,237  
    Principal
Amount°
   

Value

(US $)

 

Municipal Bonds (continued)

 

Transportation Revenue Bonds (continued)

 

South Jersey Port, New Jersey (Subordinated Marine Terminal Revenue)

   

Series A 5.00% 1/1/49

    85,000     $ 98,241  

Series B 5.00% 1/1/42 (AMT)

    85,000       98,792  

Series B 5.00% 1/1/48 (AMT)

    195,000       224,695  

St. Louis, Missouri Airport Revenue (Lambert St. Louis International) 5.00% 7/1/32 (AMT)

    1,000,000       1,083,130  

Texas Private Activity Bond Surface Transportation Corporate Senior Lien Revenue (Blueridge Transportation Group)

   

5.00% 12/31/40 (AMT)

    110,000       123,807  

5.00% 12/31/45 (AMT)

    110,000       123,129  

5.00% 12/31/50 (AMT)

    160,000       178,592  

(LBJ Infrastructure)

   

7.00% 6/30/40

    285,000       297,181  

7.50% 6/30/33

    665,000       697,479  

(Mobility Partners) 7.50% 12/31/31

    500,000       508,235  

(NTE Mobility Partners Segments 3 LLC Segment 3C Project) 5.00% 6/30/58 (AMT)

    500,000       584,390  

(NTE Mobility Partners)

   

6.75% 6/30/43 (AMT)

    225,000       262,082  

6.875% 12/31/39

    1,000,000       1,014,190  

7.00% 12/31/38 (AMT)

    165,000       194,405  

Virginia Small Business Financing Authority (Transform 66 P3 Project) 5.00% 12/31/56 (AMT)

    235,000       269,352  
   

 

 

 
   

 

 

 

16,247,260

 

 

   

 

 

 

Water & Sewer Revenue Bonds – 1.14%

   

New York City, New York Water & Sewer System Revenue (Unrefunded Balance) 5.00% 6/15/47

    185,000       205,330  
 

 

22


Table of Contents

    

 

    

 

     Principal
Amount°
    

Value

(US $)

 

Municipal Bonds (continued)

 

Water & Sewer Revenue Bonds (continued)

 

Philadelphia, Pennsylvania Water & Wastewater Revenue Series A 5.00% 7/1/45

     500,000      $ 564,970  
     

 

 

 
     

 

 

 

770,300

 

 

     

 

 

 

Total Municipal Bonds
(cost $89,524,272)

        96,164,388  
     

 

 

 

Total Value of Securities – 142.12%
(cost $89,524,272)

 

   $ 96,164,388  
     

 

 

 

                             

#

Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended. At Sept. 30, 2019, the aggregate value of Rule 144A securities was $3,695,119, which represents 5.46% of the Fund’s net assets. See Note 5 in “Notes to financial statements.”

§

Pre-refunded bonds. Municipal bonds that are generally backed or secured by USTreasury bonds. For pre-refunded bonds,the stated maturity is followed by the year in which the bond will be pre-refunded. See Note 5 in “Notes to financial statements.”

°

Principal amount shown is stated in USD unless noted that the security is denominated in another currency.

Non-income producing security. Security is currently in default.

Variable rate investment. Rates reset periodically. Rate shown reflects the rate in effect at Sept. 30, 2019. For securities based on a published reference rate and spread,the reference rate and spread are indicated in their description above. The reference rate descriptions (i.e. LIBOR03M, LIBOR06M, etc.) used in this report are identical for different securities, but the underlying reference rates may differ due to the timing of the reset period. Certain variable rate securities are not based on a published reference rate and spread but are determined by the issuer or agent and are based on current market conditions, or for mortgage-backed securities, are impacted by the individual mortgages which are paying off over time. These securities do not indicate a reference rate and spread in their description above.

Summary of abbreviations:

AGM – Insured by Assured Guaranty Municipal Corporation

AMT – Subject to Alternative Minimum Tax

ICE – Intercontinental Exchange

LIBOR – London Interbank Offered Rate

LIBOR03M – ICE LIBOR USD 3 Month

LIBOR06M – ICE LIBOR USD 6 Month

USD – US Dollar

See accompanying notes, which are an integral part of the financial statements.

 

 

23


Table of Contents

Statements of assets and liabilities

Delaware Funds® by Macquarie Closed-End Municipal Bond Funds

September 30, 2019 (Unaudited)

 

     Delaware      Delaware      Delaware  
     Investments®      Investments      Investments  
     Colorado      Minnesota      National  
     Municipal      Municipal      Municipal  
     Income      Income      Income  
     Fund, Inc.      Fund II, Inc.      Fund  

Assets:

        

Investments, at value1

   $ 106,889,078      $ 246,232,960      $ 96,164,388  

Cash

     72,036               101,873  

Interest income receivable

     1,336,116        3,140,981        1,283,891  

Offering cost for preferred shareholders

     197,208        197,208        197,208  

Prepaid rating agency fee

     30,870        29,870        19,870  
  

 

 

    

 

 

    

 

 

 

Total assets

     108,525,308        249,601,019        97,767,230  
  

 

 

    

 

 

    

 

 

 

Liabilities:

        

Cash due to custodian

            86,726         

Liquidation value of preferred stock

     30,000,000        75,000,000        30,000,000  

Payable for securities purchased

     4,629,978        2,490,695         

Other accrued expenses

     62,602        58,896        47,946  

Investment management fees payable

     34,081        81,033        32,067  

Audit and tax fees payable

     21,350        21,350        21,350  

Legal fees payable to affiliates

     2,001        4,650        1,835  

Accounting and administration expenses payable to affiliates

     649        1,090        630  

Directors’/Trustees’ fees and expenses payable

     283        659        260  
  

 

 

    

 

 

    

 

 

 

Total liabilities

     34,750,944        77,745,099        30,104,088  
  

 

 

    

 

 

    

 

 

 

Total Net Assets Applicable to Common Shareholders

   $ 73,774,364      $ 171,855,920      $ 67,663,142  
  

 

 

    

 

 

    

 

 

 

Net Assets Applicable to Common Shareholders Consist of:

        

Paid-in capital ($0.001 par value)2,3

   $ 66,918,121      $ 157,931,075      $ 60,209,588  

Total distributable earnings (loss)

     6,856,243        13,924,845        7,453,554  
  

 

 

    

 

 

    

 

 

 

Total Net Assets Applicable to Common Shareholders

   $ 73,774,364      $ 171,855,920      $ 67,663,142  
  

 

 

    

 

 

    

 

 

 

Net Asset Value per Common Share

   $ 15.25      $ 14.94      $ 14.94  
  

 

 

    

 

 

    

 

 

 

1 Investments, at cost

     100,576,283        233,396,413        89,524,272  

2 Common shares outstanding

     4,837,100        11,504,975        4,528,443  

3 Common shares authorized

     200 million        200 million        unlimited  

See accompanying notes, which are an integral part of the financial statements.

 

24


Table of Contents

Statements of operations

Delaware Funds® by Macquarie Closed-End Municipal Bond Funds

Six months ended September 30, 2019 (Unaudited)

 

     Delaware   Delaware   Delaware
     Investments®   Investments   Investments
     Colorado   Minnesota   National
     Municipal   Municipal   Municipal
     Income   Income   Income
     Fund, Inc.   Fund II, Inc.   Fund

Investment Income:

            

Interest

     $ 2,151,026     $ 4,411,503     $ 2,026,816
    

 

 

     

 

 

     

 

 

 

Expenses:

            

Management fees

       206,427       489,825       193,538

Interest expense

       384,263       960,658       384,263

Rating agency fees

       54,664       51,668       48,533

Offering costs

       34,640       46,025       39,976

Dividend disbursing and transfer agent fees and expenses

       29,514       49,245       31,115

Accounting and administration expenses

       29,513       42,060       28,942

Legal fees

       27,224       51,295       26,080

Audit and tax fees

       20,127       20,256       20,127

Reports and statements to shareholders

       11,041       17,401       9,529

Stock exchange fees

       2,381       5,473       2,146

Directors’/Trustees’ fees and expenses

       2,198       5,099       2,003

Custodian fees

       2,061       2,650       1,191

Registration fees

                   90

Other

       11,319       18,250       15,728
    

 

 

     

 

 

     

 

 

 
       815,372       1,759,905       803,261

Less expense paid indirectly

       (434 )       (1,656 )       (1,124 )
    

 

 

     

 

 

     

 

 

 

Total operating expenses

       814,938       1,758,249       802,137
    

 

 

     

 

 

     

 

 

 

Net Investment Income

       1,336,088       2,653,254       1,224,679
    

 

 

     

 

 

     

 

 

 

Net Realized and Unrealized Gain:

            

Net realized gain on investments

       739,722       354,842       604,692

Net change in unrealized appreciation (depreciation) of investments

       1,074,246       4,896,521       1,759,511
    

 

 

     

 

 

     

 

 

 

Net Realized and Unrealized Gain

       1,813,968       5,251,363       2,364,203
    

 

 

     

 

 

     

 

 

 

Net Increase in Net Assets Resulting from Operations

     $ 3,150,056     $ 7,904,617     $ 3,588,882
    

 

 

     

 

 

     

 

 

 

See accompanying notes, which are an integral part of the financial statements.

 

25


Table of Contents

Statements of changes in net assets

Delaware Funds® by Macquarie Closed-End Municipal Bond Funds

 

     Delaware Investments®  
     Colorado Municipal  
     Income Fund, Inc.  
     Six months        
     ended        
     9/30/19     Year ended  
     (Unaudited)     3/31/19  

Increase in Net Assets from Operations:

    

Net investment income

   $ 1,336,088     $ 2,823,671  

Net realized gain

     739,722       50,415  

Net change in unrealized appreciation (depreciation)

     1,074,246       150,252  
  

 

 

   

 

 

 

Net increase in net assets resulting from operations

     3,150,056       3,024,338  
  

 

 

   

 

 

 

Dividends and Distributions to Common Shareholders from:

    

Distributable earnings

     (1,426,945     (3,023,188
  

 

 

   

 

 

 
     (1,426,945     (3,023,188
  

 

 

   

 

 

 

Net Increase in Net Assets Applicable to Common Shareholders

     1,723,111       1,150  

Net Assets Applicable to Common Shareholders:

    

Beginning of period

     72,051,253       72,050,103  
  

 

 

   

 

 

 

End of period

   $ 73,774,364     $ 72,051,253  
  

 

 

   

 

 

 
     Delaware Investments  
     Minnesota Municipal  
     Income Fund II, Inc.  
     Six months        
     ended        
     9/30/19     Year ended  
     (Unaudited)     3/31/19  

Increase in Net Assets from Operations:

    

Net investment income

   $ 2,653,254     $ 5,535,037  

Net realized gain

     354,842       61,162  

Net change in unrealized appreciation (depreciation)

     4,896,521       1,928,102  
  

 

 

   

 

 

 

Net increase in net assets resulting from operations

     7,904,617       7,524,301  
  

 

 

   

 

 

 

Dividends and Distributions to Common Shareholders from:

    

Distributable earnings

     (2,588,619     (5,177,239
  

 

 

   

 

 

 
     (2,588,619     (5,177,239
  

 

 

   

 

 

 

Net Increase in Net Assets Applicable to Common Shareholders

     5,315,998       2,347,062  

Net Assets Applicable to Common Shareholders:

    

Beginning of period

     166,539,922       164,192,860  
  

 

 

   

 

 

 

End of period

   $ 171,855,920     $ 166,539,922  
  

 

 

   

 

 

 

 

26


Table of Contents

    

 

    

 

     Delaware Investments®  
     National Municipal  
     Income Fund  
     Six months        
     ended        
     9/30/19     Year ended  
     (Unaudited)     3/31/19  

Increase in Net Assets from Operations:

    

Net investment income

   $ 1,224,679     $ 2,687,792  

Net realized gain

     604,692       274,447  

Net change in unrealized appreciation (depreciation)

     1,759,511       230,113  
  

 

 

   

 

 

 

Net increase in net assets resulting from operations

     3,588,882       3,192,352  
  

 

 

   

 

 

 

Dividends and Distributions to Common Shareholders from:

    

Distributable earnings

     (1,324,570     (2,717,066
  

 

 

   

 

 

 
     (1,324,570     (2,717,066
  

 

 

   

 

 

 

Net Increase in Net Assets Applicable to Common Shareholders

     2,264,312       475,286  

Net Assets Applicable to Common Shareholders:

    

Beginning of period

     65,398,830       64,923,544  
  

 

 

   

 

 

 

End of period

   $ 67,663,142     $ 65,398,830  
  

 

 

   

 

 

 

See accompanying notes, which are an integral part of the financial statements.

 

27


Table of Contents

Statements of cash flows

Delaware Funds® by Macquarie Closed-End Municipal Bond Funds

Six months ended September 30, 2019 (Unaudited)

 

     Delaware     Delaware     Delaware  
     Investments®     Investments     Investments  
     Colorado     Minnesota     National  
     Municipal     Municipal     Municipal  
     Income     Income     Income  
     Fund, Inc.     Fund II, Inc.     Fund  

Net Cash Provided by (Used for) Operating Activities:

      

Net increase in net assets resulting from operations

   $ 3,150,056     $ 7,904,617     $ 3,588,882  
  

 

 

   

 

 

   

 

 

 

Adjustments to reconcile net increase in net assets from operations to cash provided by (used for) operating activities:

      

Amortization of premium and accretion of discount on investments

     241,459       1,093,937       235,986  

Purchase of investment securities

     (18,987,101     (15,134,681     (16,757,785

Proceeds from disposition of investment securities

     13,894,430       13,226,886       18,955,638  

(Purchase) proceeds from disposition of short-term investment securities, net

     700,000       (500,000     200,000  

Net realized gain on investments

     (739,722     (354,842     (604,692

Net change in net unrealized appreciation (depreciation)

     (1,074,246     (4,896,521     (1,759,511

Increase in receivable for securities sold

                 531,511  

Decrease in interest receivable

     88,896       6,353       21,149  

Increase in other accrued expenses receivable

     (2,620     (8,620     (8,620

Increase in offering costs for preferred shareholders

     (136,696     (122,307     (131,491

Increase in payable for securities purchased

     4,629,978       822,047       (2,756,076

Decrease in interest payable

     (2,211     (5,527     (2,211

Decrease in investment management fees payable

     (412     (486     (21,201

Decrease in Trustees’ fees and expenses payable

     (279     (635     (507

Increase (decrease) in audit fees payable

     16,627       16,627       (4,723

Decrease in other affiliates payable

     (3,385     (2,473     (5,886

Increase in other accrued expenses

     38,748       21,543       47,853  
  

 

 

   

 

 

   

 

 

 

Total Adjustments

     (1,336,534     (5,838,699     (2,060,566
  

 

 

   

 

 

   

 

 

 

Net cash provided by operating activities

     1,813,522       2,065,918       1,528,316  
  

 

 

   

 

 

   

 

 

 

Cash Flows Used for Financing Activities:

      

Cash dividends and distributions paid to common shareholders

     (1,426,945     (2,588,619     (1,324,570

Increase (decrease) in bank overdraft

     (314,541     86,726       (101,873
  

 

 

   

 

 

   

 

 

 

Net cash used for financing activities

     (1,741,486     (2,501,893     (1,426,443
  

 

 

   

 

 

   

 

 

 

Net increase (decrease) in cash

     72,036       (435,975     101,873  

Cash at beginning of year

           435,975        
  

 

 

   

 

 

   

 

 

 

Cash at end of year

   $ 72,036     $     $ 101,873  
  

 

 

   

 

 

   

 

 

 

Cash paid for interest expense for leverage

   $ 382,052     $ 966,185     $ 386,474  
  

 

 

   

 

 

   

 

 

 

See accompanying notes, which are an integral part of the financial statements.

 

28


Table of Contents

Financial highlights

Delaware Investments® Colorado Municipal Income Fund, Inc.

Selected data for each share of the Fund outstanding throughout each period were as follows:

 

    Six months                                
    ended                                
    9/30/191     Year ended  
     (Unaudited)     3/31/19     3/31/18     3/31/17     3/31/16     3/31/15  

Net asset value, beginning of period

  $ 14.90     $ 14.90     $ 14.93     $ 15.66     $ 15.55     $ 14.43  

Income (loss) from investment operations:

           

Net investment income2

    0.28       0.58       0.63       0.67       0.71       0.71  

Net realized and unrealized gain (loss)

    0.37       0.04       0.03       (0.68     0.12       1.10  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total from investment operations

    0.65       0.62       0.66       (0.01     0.83       1.81  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Less dividends and distributions to common shareholders from:

           

Net investment income

    (0.30     (0.62     (0.69     (0.72     (0.72     (0.69
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total dividends and distributions

    (0.30     (0.62     (0.69     (0.72     (0.72     (0.69
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net asset value, end of period

  $ 15.25     $ 14.90     $ 14.90     $ 14.93     $ 15.66     $ 15.55  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Market value, end of period

  $ 14.79     $ 14.17     $ 14.39     $ 14.70     $ 15.07     $ 14.35  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total investment return based on:3

           

Market value

    6.47%       2.90%       2.44%       2.24%       10.38%       13.01%  

Net asset value

    4.41%       4.50%       4.44%       (0.07%     5.85%       13.12%  

Ratios and supplemental data:

           

Net assets applicable to common shares, end of period (000 omitted)

  $ 73,774     $ 72,051     $ 72,050     $ 72,240     $ 75,771     $ 75,226  

Ratio of expenses to average net assets applicable to common shareholders4

    2.23%       2.14%       1.82%       1.60%       1.52%       1.43%  

Ratio of net investment income to average net assets applicable to common shareholders5

    3.65%       3.98%       4.14%       4.32%       4.59%       4.65%  

Portfolio turnover

    13%       7%       11%       12%       13%       14%  

Leverage analysis:

           

Value of preferred shares outstanding (000 omitted)6

  $ 30,000     $ 30,000     $ 30,000     $ 30,000     $ 30,000     $ 30,000  

Net asset coverage per share of preferred shares, end of period6

  $ 345,915     $ 340,171     $ 340,167     $ 340,799     $ 352,571     $ 350,753  

Liquidation value per share of preferred shares6

  $ 100,000     $ 100,000     $ 100,000     $ 100,000     $ 100,000     $ 100,000  

 

1 

Ratios have been annualized and total return and portfolio turnover have not been annualized.

2 

Net investment income is reduced by dividends paid to preferred shareholders from net investment income of $0.079, $0.168, $0.135, $0.110, $0.079, and $0.077 per share for the six months ended Sept. 30, 2019 and the years ended March 31, 2019, 2018, 2017, 2016, and 2015, respectively.

3 

Total investment return is calculated assuming a purchase of common stock on the opening of the first day and a sale on the closing of the last day of each period reported. Dividends and distributions, if any, are assumed for the purposes of this calculation to be reinvested at prices obtained under the Fund’s dividend reinvestment plan. Generally, total investment return based on net asset value will be higher than total investment return based on market value in periods where there is an increase in the discount or a decrease in the premium of the market value to the net asset value from the beginning to the end of such periods. Conversely, total investment return based on net asset value will be lower than total investment return based on market value in periods where there is a decrease in the discount or an increase in the premium of the market value to the net asset value from the beginning to the end of such periods.

4 

The ratio of expenses to average net assets applicable to common shareholders excluding interest expense for the six months ended Sept. 30, 2019 and the years ended March 31, 2019, 2018, 2017, 2016, and 2015 were 1.18%, 1.00%, 0.93%, 0.90%, 1.01%, and 0.92%, respectively.

5 

The ratio of net investment income excluding interest expense to average net assets for the six months ended Sept. 30, 2019 and the years ended March 31, 2019, 2018, 2017, 2016, and 2015 were 4.70%, 5.12%, 5.03%, 5.03%, 5.11%, and 5.16% respectively.

6 

In November 2011, the Fund issued a series of 300 variable rate preferred shares, with a liquidation preference of $100,000 per share (Series 2016 Shares).The Series 2016 Shares were redeemed on Feb. 2, 2016 and replaced with Series 2021 Shares, which were the same amount and value as the Fund’s Series 2016 Shares. On April 25, 2019, the Fund redeemed the Series 2021 Shares, and replaced them with Series 2049 Muni-MultiMode Preferred Shares (Series 2049), which have the same amount and value as the Series 2021 Shares.

See accompanying notes, which are an integral part of the financial statements.

 

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Table of Contents

Financial highlights

Delaware Investments® Minnesota Municipal Income Fund II, Inc.

 

Selected data for each share of the Fund outstanding throughout each period were as follows:

 

     Six months                                
     ended                                
     9/30/191     Year ended  
      (Unaudited)     3/31/19     3/31/18     3/31/17     3/31/16     3/31/15  

Net asset value, beginning of period

   $ 14.48     $ 14.27     $ 14.41     $ 15.05     $ 14.97     $ 14.31  

Income (loss) from investment operations:

            

Net investment income2

     0.23       0.48       0.51       0.55       0.63       0.64  

Net realized and unrealized gain (loss)

     0.46       0.18       (0.12     (0.59     0.08       0.69  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total from investment operations

     0.69       0.66       0.39       (0.04     0.71       1.33  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Less dividends and distributions to common shareholders from:

            

Net investment income

     (0.23     (0.45     (0.53     (0.60     (0.63     (0.67
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total dividends and distributions

     (0.23     (0.45     (0.53     (0.60     (0.63     (0.67
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net asset value, end of period

   $ 14.94     $ 14.48     $ 14.27     $ 14.41     $ 15.05     $ 14.97  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Market value, end of period

   $ 13.11     $ 12.63     $ 12.63     $ 14.56     $ 14.70     $ 13.85  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total investment return based on:3

            

Market value

     5.61%       3.73%       (9.94%     3.16%       11.17%       8.97%  

Net asset value

     4.97%       5.26%       2.82%       (0.27%     5.30%       9.80%  

Ratios and supplemental data:

            

Net assets applicable to common shares, end of period (000 omitted)

   $ 171,856     $ 166,540     $ 164,193     $ 165,754     $ 173,119     $ 172,280  

Ratio of expenses to average net assets applicable to common shareholders4

     2.07%       2.10%       1.78%       1.59%       1.46%       1.40%  

Ratio of net investment income to average net assets applicable to common shareholders5

     3.12%       3.40%       3.48%       3.69%       4.24%       4.33%  

Portfolio turnover

     5%       13%       22%       9%       16%       10%  

Leverage analysis:

            

Value of preferred shares outstanding
(000 omitted)6

   $ 75,000     $ 75,000     $ 75,000     $ 75,000     $ 75,000     $ 75,000  

Net asset coverage per share of preferred shares, end of period6

   $ 329,141     $ 322,053     $ 318,924     $ 321,006     $ 330,825     $ 329,707  

Liquidation value per share of preferred shares6

   $ 100,000     $ 100,000     $ 100,000     $ 100,000     $ 100,000     $ 100,000  

 

1 

Ratios have been annualized and total return and portfolio turnover have not been annualized.

2 

Net investment income is reduced by dividends paid to preferred shareholders from net investment income of $0.084, $0.176, $0.142, $0.115, $0.083, and $0.081 per share for the six months ended Sept. 30, 2019 and the years ended March 31, 2019, 2018, 2017, 2016, and 2015, respectively.

3 

Total investment return is calculated assuming a purchase of common stock on the opening of the first day and a sale on the closing of the last day of each period reported. Dividends and distributions, if any, are assumed for the purposes of this calculation to be reinvested at prices obtained under the Fund’s dividend reinvestment plan. Generally, total investment return based on net asset value will be higher than total investment return based on market value in periods where there is an increase in the discount or a decrease in the premium of the market value to the net asset value from the beginning to the end of such periods. Conversely, total investment return based on net asset value will be lower than total investment return based on market value in periods where there is a decrease in the discount or an increase in the premium of the market value to the net asset value from the beginning to the end of such periods.

4 

The ratio of expenses to average net assets applicable to common shareholders excluding interest expense for the six months ended Sept. 30, 2019 and years ended March 31, 2019, 2018, 2017, 2016, and 2015 were 0.94%, 0.85%, 0.81%, 0.82%, 0.90% and 0.85%, respectively.

5 

The ratio of net investment income excluding interest expense to average net assets for the six months ended Sept. 30, 2019 and years ended March 31, 2019, 2018, 2017, 2016, and 2015 were 4.25%, 4.65%, 4.45%, 4.46%, 4.80%, and 4.88%, respectively.

6 

In November 2011, the Fund issued a series of 750 variable rate preferred shares, with a liquidation preference of $100,000 per share (Series 2016 Shares).The Series 2016 Shares were redeemed on Feb. 2, 2016 and replaced with Series 2021 Shares, which were the same amount and value as the Fund’s Series 2016 Shares. On April 25, 2019, the Fund redeemed the Series 2021 Shares, and replaced them with Series 2049 Muni-MultiMode Preferred Shares (Series 2049), which have the same amount and value as the Series 2021 Shares.

See accompanying notes, which are an integral part of the financial statements.

 

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Financial highlights

Delaware Investments® National Municipal Income Fund

 

Selected data for each share of the Fund outstanding throughout each period were as follows:

 

     Six months                                
     ended                                
     9/30/191     Year ended  
      (Unaudited)     3/31/19     3/31/18     3/31/17     3/31/16     3/31/15  

Net asset value, beginning of period

   $ 14.44     $ 14.34     $ 14.31     $ 15.02     $ 14.97     $ 13.81  

Income (loss) from investment operations:

            

Net investment income2

     0.27       0.59       0.64       0.66       0.70       0.71  

Net realized and unrealized gain (loss)

     0.52       0.11       (0.01     (0.69     0.11       1.22  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total from investment operations

     0.79       0.70       0.63       (0.03     0.81       1.93  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Less dividends and distributions to common shareholders from:

            

Net investment income

     (0.29     (0.60     (0.60     (0.68     (0.76     (0.77
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total dividends and distributions

     (0.29     (0.60     (0.60     (0.68     (0.76     (0.77
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net asset value, end of period

   $ 14.94     $ 14.44     $ 14.34     $ 14.31     $ 15.02     $ 14.97  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Market value, end of period

   $ 13.45     $ 12.69     $ 12.62     $ 12.94     $ 13.80     $ 13.14  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total investment return based on:3

            

Market value

     8.33%       5.56%       2.04%       (1.50%     11.32%       12.87%  

Net asset value

     5.75%       5.71%       4.84%       0.01%       6.35%       14.99%  

Ratios and supplemental data:

            

Net assets applicable to common shares, end of period (000 omitted)

   $ 67,663     $ 65,399     $ 64,924     $ 64,792     $ 68,008     $ 67,804  

Ratio of expenses to average net assets applicable to common shareholders4

     2.40%       2.31%       1.97%       1.73%       1.70%       1.60%  

Ratio of net investment income to average net assets applicable to common shareholders5

     3.67%       4.19%       4.36%       4.45%       4.72%       4.86%  

Portfolio turnover

     17%       16%       50%       13%       25%       38%  

Leverage analysis:

            

Value of preferred shares outstanding
(000 omitted)6

   $ 30,000     $ 30,000     $ 30,000     $ 30,000     $ 30,000     $ 30,000  

Net asset coverage per share of preferred shares, end of period6

   $ 325,544     $ 317,996     $ 316,412     $ 315,898     $ 326,693     $ 326,013  

Liquidation value per share of preferred shares6

   $ 100,000     $ 100,000     $ 100,000     $ 100,000     $ 100,000     $ 100,000  

 

1 

Ratios have been annualized and total return and portfolio turnover have not been annualized.

2 

Net investment income is reduced by dividends paid to preferred shareholders from net investment income of $0.085, $0.179, $0.144, $0.117, $0.084, and $0.083 per share for the six months ended Sept. 30, 2019 and the years ended March 31, 2019, 2018, 2017, 2016, and 2015, respectively.

3 

Total investment return is calculated assuming a purchase of common stock on the opening of the first day and a sale on the closing of the last day of each period reported. Dividends and distributions, if any, are assumed for the purposes of this calculation to be reinvested at prices obtained under the Fund’s dividend reinvestment plan. Generally, total investment return based on net asset value will be higher than total investment return based on market value in periods where there is an increase in the discount or a decrease in the premium of the market value to the net asset value from the beginning to the end of such periods. Conversely, total investment return based on net asset value will be lower than total investment return based on market value in periods where there is a decrease in the discount or an increase in the premium of the market value to the net asset value from the beginning to the end of such periods.

4 

The ratio of expenses to average net assets applicable to common shareholders excluding interest expense for the six months ended Sept. 30, 2019 and years ended March 31, 2019, 2018, 2017, 2016, and 2015 were 1.25%, 1.05%, 0.98%, 0.94%, 1.13%, and 1.03%, respectively.

5 

The ratio of net investment income excluding interest expense to average net assets for the six months ended Sept. 30, 2019 and years ended March 31, 2019, 2018, 2017, 2016, and 2015 were 4.82%, 5.45%, 5.35%, 5.24%, 5.29%, and 5.44%, respectively.

6 

In March 2012, the Fund issued a series of 300 variable rate preferred shares, with a liquidation preference of $100,000 per share (Series 2017 Shares). The Series 2017 Shares were redeemed on Feb. 2, 2016 and replaced with Series 2021 Shares, which were the same amount and value as the Fund’s Series 2017 Shares. On April 25, 2019, the Fund redeemed the Series 2021 Shares, and replaced them with Series 2049 Muni-MultiMode Preferred Shares (Series 2049), which have the same amount and value as the Series 2021 Shares.

See accompanying notes, which are an integral part of the financial statements.

 

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Notes to financial statements

Delaware Funds® by Macquarie Closed-End Municipal Bond Funds

September 30, 2019 (Unaudited)

Delaware Investments® Colorado Municipal Income Fund, Inc. (Colorado Municipal Fund) and Delaware Investments Minnesota Municipal Income Fund II, Inc. (Minnesota Municipal Fund II) are organized as Minnesota corporations and Delaware Investments National Municipal Income Fund (National Municipal Fund) is organized as a Massachusetts business trust (each referred to as a Fund and collectively as the Funds). Colorado Municipal Fund, Minnesota Municipal Fund II, and National Municipal Fund are considered diversified closed-end management investment companies under the Investment Company Act of 1940, as amended. The Funds’ shares trade on the NYSE American, the successor to the American Stock Exchange, formerly known as NYSE Market.

The investment objective of each of Colorado Municipal Fund and Minnesota Municipal Fund II is to provide current income exempt from federal income tax and from state personal income tax, if any, consistent with the preservation of capital. The investment objective of National Municipal Fund is to provide current income exempt from federal income tax, consistent with the preservation of capital. Each of Colorado Municipal Fund and Minnesota Municipal Fund II seeks to achieve its investment objective by investing substantially all of its net assets in investment grade, tax-exempt municipal obligations of its respective state at the time of investment. National Municipal Fund seeks to achieve its investment objective by investing at least 80% of its net assets in securities the income from which is exempt from federal income tax.

1. Significant Accounting Policies

Each Fund follows accounting and reporting guidance under Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946, Financial Services - Investment Companies. The following accounting policies are in accordance with US generally accepted accounting principles (US GAAP) and are consistently followed by the Funds.

Security Valuation — Debt securities are valued based upon valuations provided by an independent pricing service or broker and reviewed by management. To the extent current market prices are not available, the pricing service may take into account developments related to the specific security, as well as transactions in comparable securities. Valuations for fixed income securities utilize matrix systems, which reflect such factors as security prices, yields, maturities, and ratings, and are supplemented by dealer and exchange quotations. Generally, other securities and assets for which market quotations are not readily available are valued at fair value as determined in good faith under the direction of each Fund’s Board of Directors/Trustees (each a Board, or collectively, the Boards). In determining whether market quotations are readily available or fair valuation will be used, various factors will be taken into consideration, such as market closures or suspension of trading in a security. Restricted securities are valued at fair value using methods approved by the Boards.

Federal Income Taxes — No provision for federal income taxes has been made as each Fund intends to continue to qualify for federal income tax purposes as a regulated investment company under Subchapter M of the Internal Revenue Code of 1986, as amended, and make the requisite distributions to shareholders. The Funds evaluate tax positions taken or expected to be taken in the course of preparing each Fund’s tax returns to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. Tax positions not deemed to meet the “more-likely-than-not” threshold are recorded as a tax benefit or expense in the current year. Management has analyzed each Fund’s tax positions taken or expected to be taken on each Fund’s federal income tax returns through the six months ended Sept. 30, 2019 and for all open tax years (years ended March 31, 2016–March 31, 2019), and has concluded that no provision for federal income tax is required in each Fund’s financial statements. If applicable, each Fund recognizes interest accrued on unrecognized tax benefits in interest expense and penalties in “Other expenses” on the “Statements of operations.” During the six months ended Sept. 30, 2019, the Funds did not incur any interest or tax penalties.

Cash and Cash Equivalents — Cash and cash equivalents include deposits held at financial institutions, which are available for each Fund’s use with no restrictions, with original maturities of 90 days or less.

Use of Estimates — The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the fair value of investments, the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates and the differences could be material.

Other — Expenses directly attributable to each Fund are charged directly to the Fund. Other expenses common to various funds within the Delaware Funds® by Macquarie (Delaware Funds) are generally allocated among such funds on the basis of average net assets. Management fees and certain other expenses are paid monthly. Security transactions are recorded on the date the securities are purchased or sold (trade date) for financial reporting purposes. Costs used in calculating realized gains and losses on the sale of investment securities are those of the specific securities sold. Interest income is recorded on the accrual basis. Discounts and premiums on debt securities are accreted or amortized to interest income, respectively, over the lives of the respective securities using the effective interest method. Each Fund declares and pays

 

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dividends from net investment income monthly and distributions from net realized gain on investments, if any, annually. Each Fund may distribute more frequently, if necessary for tax purposes. Dividends and distributions, if any, are recorded on the ex-dividend date.

Each Fund receives earnings credits from its custodian when positive cash balances are maintained, which may be used to offset custody fees. The expenses paid under this arrangement are included on the “Statements of operations” under “Custodian fees” with the corresponding expenses offset included under “Less expenses paid indirectly.” For the six months ended Sept. 30, 2019, each Fund earned the following amounts under this arrangement:

 

    Colorado
      Municipal      
Fund
         Minnesota      
Municipal
Fund II
   National
Municipal
Fund
  $434    $1,656    $1,124

2. Investment Management, Administration Agreements and Other Transactions with Affiliates

In accordance with the terms of its respective investment management agreement, each Fund pays Delaware Management Company (DMC), a series of Macquarie Investment Management Business Trust and the investment manager, an annual fee of 0.40% which is calculated based on each Fund’s adjusted average daily net assets.

Delaware Investments Fund Services Company (DIFSC), an affiliate of DMC, provides fund accounting and financial administration oversight services to each Fund. For these services, DIFSC’s fees are calculated daily and paid monthly based on the aggregate daily net assets of all funds within the Delaware Funds at the following annual rates: 0.00475% of the first $35 billion; 0.0040% of the next $10 billion; and 0.0025% of aggregate average daily net assets in excess of $45 billion (Total Fee). Each fund in the Delaware Funds pays a minimum of $4,000, which, in aggregate, is subtracted from the Total Fee. Each fund then pays its portion of the remainder of the Total Fee on a relative net asset value (NAV) basis. These amounts are included on the “Statements of operations” under “Accounting and administration expenses.” For the six months ended Sept. 30, 2019, the Funds were charged for these services as follows:

 

    Colorado
      Municipal      
Fund
         Minnesota      
Municipal
Fund II
   National
Municipal
Fund
  $3,952    $6,624    $3,830

As provided in the investment management agreement, each Fund bears a portion of the cost of certain resources shared with DMC, including the cost of internal personnel of DMC and/or its affiliates that provide legal, tax, and regulatory reporting services to each Fund. These amounts are included on the “Statements of operations” under “Legal fees.” For the six months ended Sept. 30, 2019, each Fund was charged for internal legal, tax, and regulatory reporting services provided by DMC and/or its affiliates’ employees as follows:

 

    Colorado
      Municipal      
Fund
         Minnesota      
Municipal
Fund II
   National
Municipal
Fund
  $17,188    $27,630    $16,493

Directors’/Trustees’ fees include expenses accrued by each Fund for each Director’s/Trustee’s retainer and meeting fees. Certain officers of DMC and DIFSC are officers and/or Directors/Trustees of the Funds. These officers and Directors/Trustees are paid no compensation by the Funds.

Cross trades for the six months ended Sept. 30, 2019, were executed by the Funds pursuant to procedures adopted by the Boards designed to ensure compliance with Rule 17a-7 under the 1940 Act. Cross trading is the buying or selling of portfolio securities between funds of investment companies, or between a fund of an investment company and another entity, that are or could be considered affiliates by virtue of having a common investment advisor (or affiliated investment advisors), common directors/trustees and/or common officers. At their regularly scheduled meetings, the Boards review such transactions for compliance with the procedures adopted by the Boards.

 

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Notes to financial statements

Delaware Funds® by Macquarie Closed-End Municipal Bond Funds

2. Investment Management, Administration Agreements and Other Transactions with Affiliates (continued)

 

Pursuant to these procedures, for the six months ended Sept. 30, 2019, the Funds engaged in Rule 17a-7 securities purchases and securities sales, which did not result in any realized gains or losses as follows:

 

    Colorado
      Municipal       
Fund
           Minnesota        
Municipal
Fund II
   National
Municipal
Fund
 
Purchases   $          —    $1,200,249      $400,069  
Sales      450,020      3,552,202      400,359  

3. Investments

For the six months ended Sept. 30, 2019, each Fund made purchases and sales of investment securities other than short-term investments as follows:

 

     Colorado
      Municipal      
Fund
         Minnesota      
Municipal
Fund II
   National
Municipal
Fund
 
Purchases      $18,987,101          $15,134,681          $16,757,785  
Sales      13,894,430        13,226,886        18,802,663  
At Sept. 30, 2019, the cost and unrealized appreciation (depreciation) of investments for federal income tax purposes has been estimated since the final tax characteristics cannot be determined until fiscal year end. At Sept. 30, 2019, the cost and unrealized appreciation (depreciation) of investments for each Fund were as follows:

 

     Colorado
      Municipal      
Fund
         Minnesota      
Municipal
Fund II
   National
Municipal
Fund
 

Cost of investments

     $100,563,724          $233,377,037        $ 89,514,791  
        

 

 

 

Aggregate unrealized appreciation of investments

     $    6,446,612        $  12,993,779      $   6,685,276  

Aggregate unrealized depreciation of investments

             (121,258              (137,856      (35,679
        

 

 

 

Net unrealized appreciation of investments

     $    6,325,354        $  12,855,923      $   6,649,597  
        

 

 

 

Under the Regulated Investment Company Modernization Act of 2010 (Act), net capital losses recognized for tax years beginning after Dec. 22, 2010 may be carried forward indefinitely, and their character is retained as short-term and/or long-term losses.

At March 31, 2019, capital loss carryforwards available to offset future realized capital gains were as follows:

 

     Loss carryforward character              
     Short-term      Long-term      Total       

Colorado Municipal Fund

     $220,671        $43,172        $263,843     

Minnesota Municipal
Fund II

         42,238        —            42,238     

National Municipal Fund

     —            —                

US GAAP defines fair value as the price that each Fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date under current market conditions. A three-level hierarchy for fair value measurements has been established based upon the transparency of inputs to the valuation of an asset or liability. Inputs may be observable or unobservable and refer broadly to the assumptions that market participants would use in pricing the asset or liability. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the reporting entity’s own assumptions about the assumptions that market participants would use in pricing the asset or liability based on the best information available under the circumstances. Each Fund’s investment in its entirety is assigned a level based upon the observability of the inputs which are significant to the overall valuation. The three-level hierarchy of inputs is summarized below.

 

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Level 1 –   Inputs are quoted prices in active markets for identical investments. (Examples: equity securities, open-end investment companies, futures contracts, and exchange-traded options contracts)
Level 2 –   Other observable inputs, including, but not limited to: quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, and default rates) or other market-corroborated inputs. (Examples: debt securities, government securities, swap contracts, foreign currency exchange contracts, foreign securities utilizing international fair value pricing, broker-quoted securities, and fair valued securities)
Level 3 –   Significant unobservable inputs, including each Fund’s own assumptions used to determine the fair value of investments. (Examples: broker-quoted securities and fair valued securities)

Level 3 investments are valued using significant unobservable inputs. Each Fund may also use an income-based valuation approach in which the anticipated future cash flows of the investment are discounted to calculate fair value. Discounts may also be applied due to the nature or duration of any restrictions on the disposition of the investments. Valuations may also be based upon current market prices of securities that are comparable in coupon, rating, maturity, and industry. The derived value of a Level 3 investment may not represent the value which is received upon disposition and this could impact the results of operations.

The following tables summarize the valuation of each Fund’s investments by fair value hierarchy levels as of Sept. 30, 2019:

 

Securities

    

Colorado

Municipal Fund

Level 2

 

 

 

  

Assets:

     

Municipal Bonds

     $106,889,078     

Securities

    

Minnesota

Municipal Fund II

Level 2

 

 

 

  

Assets:

     

Municipal Bonds

     $245,232,960     

Short-Term Investments

             1,000,000     

Total Value of Securities

     $246,232,960     

Securities

    

National

Municipal Fund

Level 2

 

 

 

  

Assets:

     

Municipal Bonds

     $96,164,388     

During the six months ended Sept. 30, 2019, there were no transfers between Level 1 investments, Level 2 investments, or Level 3 investments. The Funds’ policy is to recognize transfers between levels based on fair value at the beginning of the reporting period.

4. Capital Stock

Pursuant to their articles of incorporation, Colorado Municipal Fund and Minnesota Municipal Fund II each have 200 million shares of $0.01 par value common shares authorized. National Municipal Fund has been authorized to issue an unlimited amount of $0.01 par value common shares. Shares issuable under each Fund’s dividend reinvestment plan are purchased by each Fund’s transfer agent, Computershare, Inc., in the open market. During the six months ended Sept. 30, 2019 and the year ended March 31, 2019, the Funds did not issue any shares under their dividend reinvestment plan.

On April 25, 2019, Colorado Municipal Fund, Minnesota Municipal Fund II, and National Municipal Fund (each, a “Fund” and collectively, the “Funds”) priced private offerings to a qualified institutional buyer, as defined pursuant to Rule 144A under the Securities Act of 1933, of approximately $135 million of Muni-MultiMode Preferred Shares, Series 2049 (MMP). Colorado Municipal Fund, Minnesota Municipal Fund II,

 

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Table of Contents

Notes to financial statements

Delaware Funds® by Macquarie Closed-End Municipal Bond Funds

4. Capital Stock (continued)

 

and National Municipal Fund issued $30,000,000, $75,000,000 and $30,000,000, respectively, of MMP Shares with a $100,000 liquidation value per share. Each Fund used the net proceeds from each offering to redeem its outstanding Variable Rate MuniFund Term Preferred Shares, Series 2021 (VMTP). The MMP shares were the same amount and value as the respective Fund’s VMTP shares.

The MMP shares are a floating rate form of preferred stock with a mandatory term redemption. The mandatory term redemption date for these three offerings is April 1, 2049. MMP shares have the option at either the request of the purchaser or issuer to be converted to a variable rate demand preferred (“VRDP”) structure. The converted VRDP shares could then be offered for sale to certain institutional investors. The VRDP could continue to remain outstanding for the remainder of the MMP shares’ 30-year term. MMP dividends are set weekly at a spread to the Securities Industry and Financial Markets Association Municipal Swap Index. MMP shares represent the preferred stock of each Fund and are senior, with priority in all respects, to each Fund’s common shares as to payments of dividends. MMP shares are redeemable at par. A Fund may be obligated to redeem certain of the MMP shares if the Fund fails to maintain certain asset coverage and leverage ratio requirements and such failures are not cured by the applicable cure date. The redemption price per share is equal to the sum of the liquidation value per share plus any accumulated but unpaid dividends. Dividends on MMP shares are set weekly, and are based on a short-term index rate plus an additional spread that is subject to adjustment in certain circumstances, including a change in the credit rating assigned to the MMP shares by Fitch Ratings (“Fitch”).

The weighted average dividend rates for the six months ended Sept. 30, 2019 were as follows:

 

     Colorado
Municipal
Fund
  Minnesota
Municipal
Fund II
  National
Municipal
Fund
     2.55     2.55     2.55

The Funds use leverage because their managers believe that, over time, leveraging may provide opportunities for additional income and total return for common shareholders. However, the use of leverage also can expose common shareholders to additional volatility. For example, as the prices of securities held by a Fund decline, the negative impact of these valuation changes on common share net asset value and common shareholder total return is magnified by the use of leverage; accordingly, the use of structural leverage may hurt a Fund’s overall performance.

Leverage may also cause the Funds to incur certain costs. In the event that a Fund is unable to meet certain criteria (including, but not limited to, maintaining certain ratings with Fitch, funding dividend payments, or funding redemptions), that Fund will pay additional fees with respect to the leverage.

For financial reporting purposes, the MMP shares are considered debt of the issuer; therefore, the liquidation value which approximates fair value of the MMP shares is recorded as a liability in the statements of assets and liabilities. Dividends accrued and paid on the MMP shares are included as a component of interest expense in the statements of operations. The MMP shares are treated as equity for legal and tax purposes. Dividends paid to holders of the MMP shares are generally classified as tax-exempt income for tax-reporting purposes.

Offering costs for MMP shares are recorded as a deferred charge and amortized over the 5-year life of the MMP shares. These are presented as “Offering cost for preferred shareholders” on the “Statements of assets and liabilities” and “Offering costs” on the “Statements of operations.”

5. Geographic, Credit, and Market Risk

The Funds concentrate their investments in securities issued by municipalities. Because each of Colorado Municipal Fund and Minnesota Municipal Fund II invests substantially all of its net assets in municipal obligations of its respective state at the time of investment, events in that state may have a significant impact on the performance and investments of Colorado Municipal Fund and Minnesota Municipal Fund II. These events may include economic or political policy changes, tax base erosion, state constitutional limits on tax increases, budget deficits and other financial difficulties, changes in the credit ratings assigned to the state’s municipal issuers, the effects of natural or human-made disasters, or other economic, legislative, or political or social issues. Any downgrade to the credit rating of the securities issued by the US government may result in a downgrade of securities issued by the states or US territories. National Municipal Fund will be subject to these risks as well but to a lesser extent because it invests at least 80% of its net assets in securities, the income from which is exempt from federal income tax and is not limited to investing substantially all of its assets in municipal obligations of a single state. From time to time and consistent with its investment policies, National Municipal Fund may invest a considerable portion of its assets in certain municipalities. As of Sept. 30, 2019, National Municipal Fund has invested 21.31%, 18.46%, 14.52%, and 12.31% (each as a percentage of net assets) in securities issued by the State of

 

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California, the Commonwealth of Pennsylvania, the State of New York, and the State of Texas, respectively. These investments could make National Municipal Fund more sensitive to economic conditions in those states than other more geographically diversified national municipal income funds.

Each Fund may invest a percentage of assets in obligations of governments of US territories, commonwealths, and possessions such as Puerto Rico, the US Virgin Islands, or Guam. To the extent a Fund invests in such obligations, that Fund may be adversely affected by local political and economic conditions and developments within these US territories, commonwealths, and possessions.

From time to time, a fund may invest in industrial development bonds (IDBs) or pollution control revenue (PCR) bonds that are issued by a conduit authority on behalf of a corporation that is either foreign owned or has international affiliates or operations. While the bonds may be issued to finance a facility located in the United States, the bonds may be secured by a payment obligation or guaranty of the corporation. To the extent the Fund invests in such securities, that Fund may be exposed to risks associated with international investments. The risk of international investments not ordinarily associated with US investments includes fluctuation in currency values, differences in accounting principles, and/or economic or political instability in other nations.

Many municipalities insure repayment for their obligations. Although bond insurance may reduce the risk of loss due to default by an issuer, such bonds remain subject to the risk that market value may fluctuate for other reasons, and there is no assurance that the insurance company will meet its obligations. A real or perceived decline in creditworthiness of a bond insurer can have an adverse impact on the value of insured bonds held in each Fund. At Sept. 30, 2019, the percentages of each Fund’s net assets insured by insurers are listed below and these securities have been identified on the “Schedules of investments.”

 

     Colorado
Municipal
Fund
     Minnesota
Municipal
Fund II
  National
Municipal
Fund

Assured Guaranty Corporation

     1.63%               

Assured Guaranty Municipal Corporation

     7.83%        0.88     1.66

Build America Mutual Assurance Company

     1.64%               

Syncora Guarantee

       2.34%            —           —  

Total

     13.44%        0.88     1.66

Each Fund invests a portion of its assets in high yield fixed income securities, which are securities rated BB or lower by Standard & Poor’s (S&P) and/or Ba or lower by Moody’s, or similarly rated by another nationally recognized statistical rating organization. Investments in these higher yielding securities are generally accompanied by a greater degree of credit risk than higher rated securities. Additionally, lower rated securities may be more susceptible to adverse economic and competitive industry conditions than investment grade securities.

The Funds may invest in advanced refunded bonds, escrow secured bonds, or defeased bonds. Under current federal tax laws and regulations, state and local government borrowers are permitted to refinance outstanding bonds by issuing new bonds. The issuer refinances the outstanding debt to either reduce interest costs or to remove or alter restrictive covenants imposed by the bonds being refinanced. A refunding transaction where the municipal securities are being refunded within 90 days from the issuance of the refunding issue is known as a “current refunding.” “Advance refunded bonds” are bonds in which the refunded bond issue remains outstanding for more than 90 days following the issuance of the refunding issue. In an advance refunding, the issuer will use the proceeds of a new bond issue to purchase high-grade interest-bearing debt securities which are then deposited in an irrevocable escrow account held by an escrow agent to secure all future payments of principal and interest and bond premium of the advance refunded bond. Bonds are “escrowed to maturity” when the proceeds of the refunding issue are deposited in an escrow account for investment sufficient to pay all of the principal and interest on the original interest payment and maturity dates.

Bonds are considered “pre-refunded” when the refunding issue’s proceeds are escrowed only until a permitted call date or dates on the refunded issue with the refunded issue being redeemed at the time, including any required premium. Bonds become “defeased” when the rights and interests of the bondholders and of their lien on the pledged revenues or other security under the terms of the bond contract are substituted with an alternative source of revenues (the escrow securities) sufficient to meet payments of principal and interest to maturity or to the first call dates. Escrowed secured bonds will often receive a rating of AAA from Moody’s, S&P, and/or Fitch Ratings due to the strong credit quality of the escrow securities and the irrevocable nature of the escrow deposit agreement.

To the extent that the Funds invest in securities with longer duration, they may be more sensitive to fluctuation of interest rates.

 

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Notes to financial statements

Delaware Funds® by Macquarie Closed-End Municipal Bond Funds

5. Geographic, Credit, and Market Risk (continued)

 

Each Fund invests in certain obligations that may have liquidity protection designed to ensure that the receipt of payments due on the underlying security is timely. Such protection may be provided through guarantees, insurance policies, or letters of credit obtained by the issuer or sponsor from third parties, through various means of structuring the transaction, or through a combination of such approaches. The Funds will not pay any additional fees for such credit support, although the existence of credit support may increase the price of a security.

Each Fund may invest up to 15% of its net assets in illiquid securities, which may include securities with contractual restrictions on resale, securities exempt from registration under Rule 144A promulgated under the Securities Act of 1933, as amended, and other securities which may not be readily marketable. The relative illiquidity of these securities may impair each Fund from disposing of them in a timely manner and at a fair price when it is necessary or desirable to do so. While maintaining oversight, the Boards have delegated to DMC the day-to-day functions of determining whether individual securities are liquid for purposes of each Fund’s limitation on investments in illiquid securities. Securities eligible for resale pursuant to Rule 144A, which are determined to be liquid, are not subject to each Fund’s 15% limit on investments in illiquid securities. Rule 144A securities held by each Fund have been identified on the “Schedules of investments.” Restricted securities are valued pursuant to the security valuation procedures described in Note 1.

6. Contractual Obligations

Each Fund enters into contracts in the normal course of business that contain a variety of indemnifications. Each Fund’s maximum exposure under these arrangements is unknown. However, the Funds have not had prior claims or losses pursuant to these contracts. Management has reviewed each Fund’s existing contracts and expects the risk of loss to be remote.

7. Recent Accounting Pronouncements

In August 2018, the FASB issued an Accounting Standards Update, ASU 2018-13, which changes certain fair value measurement disclosure requirements. The ASU 2018-13, in addition to other modifications and additions, removes the requirement to disclose the amount and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, the policy for the timing of transfers between levels and the valuation process for Level 3 fair value measurements. The ASU 2018-13 is effective for fiscal years, and interim periods within those fiscal years, beginning after Dec. 15, 2019. At this time, management is evaluating the implications of these changes on the financial statements.

8. Subsequent Events

Management has determined that no material events or transactions occurred subsequent to Sept. 30, 2019, that would require recognition or disclosure in the Funds’ financial statements.

 

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Other Fund information

(Unaudited)

Delaware Funds® by Macquarie Closed-End Municipal Bond Funds

Fund management

Gregory A. Gizzi

Managing Director, Head of Municipal Bonds, Senior Portfolio Manager

Gregory A. Gizzi is head of municipal bonds in the Americas, a role he assumed in February 2019. In this role, he is responsible for the overall operation of the strategy and is team lead on several of the tax-exempt strategies. Additionally, Gizzi continues to be responsible for the taxable municipal business and the marketing efforts for the municipal product. Previously, Gizzi was co-portfolio manager of the firm’s municipal bond funds and several client accounts, a role he held since November 2011. Before joining Macquarie Investment Management (MIM) in January 2008 as head of municipal bond trading, he spent six years as a vice president at Lehman Brothers for the firm’s tax-exempt institutional sales effort. Prior to that, he spent two years trading corporate bonds for UBS before joining Lehman Brothers in a sales capacity. Gizzi has more than 20 years of trading experience in the municipal securities industry, beginning at Kidder Peabody in 1984, where he started as a municipal bond trader and worked his way up to institutional block trading desk manager. He later worked in the same capacity at Dillon Read. Gizzi earned his bachelor’s degree in economics from Harvard University.

Stephen J. Czepiel

Managing Director, Head of Municipal Bonds Portfolio Management, Senior Portfolio Manager

Stephen J. Czepiel leads the portfolio management of the firm’s municipal bonds strategies, a role he assumed in February 2019. He is a co-portfolio manager of the firm’s municipal bond funds and client accounts, a role he has held since August 2007. He joined Macquarie Investment Management (MIM) in July 2004 as a senior bond trader. Previously, he was vice president at both Mesirow Financial and Loop Capital Markets. He began his career in the securities industry in 1982 as a municipal bond trader at Kidder Peabody and now has more than 20 years of experience in the municipal securities industry. Czepiel earned his bachelor’s degree in finance and economics from Duquesne University.

Jake van Roden

Senior Vice President, Head of Municipal Trading, Portfolio Manager

Jake van Roden is head of the firm’s municipal trading. He is also a portfolio manager for the firm’s nine open-end state-specific municipal bond funds, as well as for several municipal bond client accounts, a role he assumed in December 2017. In February 2019, his portfolio management role expanded to include the closed-end municipal bond funds and the three national municipal open-end funds. He joined the municipal department in July 2004 as a generalist and became head of municipal trading in December 2012. Before that, van Roden interned at Macquarie Investment Management (MIM) in the client services department. He received a bachelor’s degree in American studies with a minor in government from Franklin & Marshall College.

Denise A. Franchetti, CFA

Senior Vice President, Co-Head of Municipal Credit Research, Portfolio Manager

Denise A. Franchetti is co-head of the company’s municipal research operations, a role she assumed in January 2018. Previously, she was a senior municipal analyst for the municipal bond department, responsible for following the airport, education, hotel, cogeneration, and cargo sectors. In 2003, she was also named as portfolio manager on the tax-exempt closed-end funds in addition to her research duties. Prior to joining Macquarie Investment Management (MIM) in 1997 as a municipal bond analyst, she was a fixed income trader at Provident Mutual Life Insurance and an investment analyst at General Accident Insurance. Franchetti received her bachelor’s degree and an MBA from La Salle University. She is a member of the CFA Institute, the Financial Analysts of Philadelphia, and the National Federation of Municipal Analysts.

Board consideration of Investment Advisory Agreements for Delaware Investments® Colorado Municipal Income Fund, Inc.; Delaware Investments Minnesota Municipal Income Fund II, Inc.; and Delaware Investments National Municipal Income Fund at a meeting held on August 21-22, 2019

At a meeting held on Aug. 21-22, 2019 (the “Annual Meeting”), the Board of Trustees (the “Board”), including a majority of disinterested or independent Trustees, approved the renewal of the Investment Advisory Agreements for Delaware Investments Colorado Municipal Income Fund, Inc.; Delaware Investments Minnesota Municipal Income Fund II, Inc.; and Delaware Investments National Municipal Income Fund (each, a “Fund” and together, the “Funds”). In making its decision, the Board considered information furnished at regular quarterly Board meetings,

 

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Other Fund information

(Unaudited)

Delaware Funds® by Macquarie Closed-End Municipal Bond Funds

 

Board consideration of Investment Advisory Agreements for Delaware Investments® Colorado Municipal Income Fund, Inc.; Delaware Investments Minnesota Municipal Income Fund II, Inc.; and Delaware Investments National Municipal Income Fund at a meeting held on August 21-22, 2019 (continued)

including reports detailing Fund performance, investment strategies, and expenses, as well as information prepared specifically in connection with the renewal of the investment advisory contracts. Information furnished specifically in connection with the renewal of the Investment Management Agreements with Delaware Management Company (“DMC”), a series of Macquarie Investment Management Business Trust (“MIMBT”), included materials provided by DMC and its affiliates (collectively, “Macquarie Investment Management”) concerning, among other things, the nature, extent, and quality of services provided to the Funds; the costs of such services to the Funds; economies of scale; and the investment manager’s financial condition and profitability. In addition, in connection with the Annual Meeting, materials were provided to the Trustees in May 2019, including reports provided by Broadridge Financial Solutions (“Broadridge”). The Broadridge reports compared each Fund’s investment performance and expenses with those of other comparable mutual funds. The Independent Trustees reviewed and discussed the Broadridge reports with independent legal counsel to the Independent Trustees. In addition to the information noted above, the Board also requested and received information regarding DMC’s policy with respect to advisory fee levels and its breakpoint philosophy; the structure of portfolio manager compensation; comparative client fee information; and any constraints or limitations on the availability of securities for certain investment styles, which had in the past year inhibited, or which were likely in the future to inhibit, the investment manager’s ability to invest fully in accordance with Fund policies.

In considering information relating to the approval of each Fund’s advisory agreement, the Independent Trustees received assistance and advice from and met separately with independent legal counsel to the Independent Trustees and also received assistance and advice from an experienced and knowledgeable independent fund consultant, JDL Consultants, LLC (“JDL”). Although the Board gave attention to all information furnished, the following discussion identifies, under separate headings, the primary factors taken into account by the Board during its contract renewal considerations.

Nature, extent, and quality of services. The Board considered the services provided by DMC to the Funds and their shareholders. In reviewing the nature, extent, and quality of services, the Board considered reports furnished to it throughout the year, which covered matters such as the relative performance of the Funds; compliance of portfolio managers with the investment policies, strategies, and restrictions for the Funds; compliance by DMC (“Management”) personnel with the Code of Ethics adopted throughout the Delaware Funds® by Macquarie (“Delaware Funds”); and adherence to fair value pricing procedures as established by the Board. The Board was pleased with the current staffing of DMC and the emphasis placed on research in the investment process. The Board recognized DMC’s receipt of certain favorable industry distinctions during the past several years. The Board gave favorable consideration to DMC’s efforts to control expenses while maintaining service levels committed to Fund matters. The Board was satisfied with the nature, extent, and quality of the overall services provided by DMC.

Investment performance. The Board placed significant emphasis on the investment performance of the Funds in view of the importance of investment performance to shareholders. Although the Board considered performance reports and discussions with portfolio managers at Board meetings throughout the year, the Board gave particular weight to the Broadridge reports furnished for the Annual Meeting. The Broadridge reports prepared for each Fund showed the investment performance of its shares in comparison to a group of similar funds as selected by Broadridge (the “Performance Universe”). A fund with the highest performance ranked first, and a fund with the lowest ranked last. The highest/best performing 25% of funds in the Performance Universe make up the first quartile; the next 25%, the second quartile; the next 25%, the third quartile; and the lowest/worst performing 25% of funds in the Performance Universe make up the fourth quartile. Comparative annualized performance for each Fund was shown for the past 1-, 3-, 5-, and 10-year periods, to the extent applicable, ended Jan. 31, 2019. The Board’s objective is that each Fund’s performance for the 1-, 3-, and 5-year periods be at or above the median of its Performance Universe.

Delaware Investments Colorado Municipal Income Fund, Inc. – The Performance Universe for the Fund consisted of the Fund and all leveraged closed-end “other states” municipal debt funds as selected by Broadridge. The Broadridge report comparison showed that the Fund’s total return for the 1- and 10-year periods was in the fourth quartile of its Performance Universe. The report further showed that the Fund’s total return for the 3- and 5-year periods was in the second quartile and first quartile, respectively, of its Performance Universe. The Board observed that the Fund’s performance results were mixed, but tended toward median, which was acceptable. In evaluating the Fund’s performance, the Board considered the numerous investment and performance reports delivered by Management personnel to the Board’s Investments Committee. The Board was satisfied that Management was taking action to improve comparative Fund performance and to meet the Board’s performance objective.

 

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Delaware Investments Minnesota Municipal Income Fund II, Inc. – The Performance Universe for the Fund consisted of the Fund and all leveraged closed-end “other states” municipal debt funds as selected by Broadridge. The Broadridge report comparison showed that the Fund’s total return for the 1-, 3-, 5-, and 10-year periods was in the fourth quartile of its Performance Universe. The Fund’s performance results were not in line with the Board’s objective. In evaluating the Fund’s performance, the Board considered the numerous investment and performance reports delivered by Management personnel to the Board’s Investments Committee. The Board was satisfied that Management was taking action to improve comparative Fund performance and meet the Board’s performance objective.

Delaware Investments® National Municipal Income Fund – The Performance Universe for the Fund consisted of the Fund and all leveraged closed-end general and insured municipal debt funds as selected by Broadridge. The Broadridge report comparison showed that the Fund’s total return for the 1-, 3-, and 5-year periods was in the third quartile of its Performance Universe. The report further showed that the Fund’s total return for the 10-year period was in fourth quartile of its Performance Universe. The Fund’s performance results were not in line with the Board’s objective. In evaluating the Fund’s performance, the Board considered the numerous investment and performance reports delivered by Management personnel to the Board’s Investments Committee. The Board was satisfied that Management was taking action to improve comparative Fund performance and meet the Board’s performance objective.

Comparative expenses. The Board considered expense data for the Delaware Funds. Management provided the Board with information on pricing levels and fee structures for the Funds as of its most recently completed fiscal year. The Board also focused on the comparative analysis of effective management fees and total expense ratios of each Fund versus effective management fees and expense ratios of a group of similar closed-end funds as selected by Broadridge (the “Expense Group”). In reviewing comparative costs, each Fund’s contractual management fee and the actual management fee incurred by the Fund were compared with the contractual management fees (assuming all funds in the Expense Group were similar in size to the Fund) and actual management fees (as reported by each fund) within the Expense Group, taking into account any applicable breakpoints and fee waivers. Each Fund’s total expenses were also compared with those of its Expense Group. The Board’s objective is for each Fund’s total expense ratio to be competitive with those of the peer funds within its Expense Group.

Delaware Investments Colorado Municipal Income Fund, Inc. – The expense comparisons for the Fund showed that its actual management fee was the lowest expenses of its Expense Group. Broadridge did not provide the total expenses comparison of its Expense Group. The Board was satisfied with the management fee of the Fund in comparison to those of its Expense Group.

Delaware Investments Minnesota Municipal Income Fund II, Inc. – The expense comparisons for the Fund showed that its actual management fee and total expenses were in the quartile with the lowest expenses of its Expense Group. The Board was satisfied with the management fee and total expenses of the Fund in comparison to those of its Expense Group.

Delaware Investments National Municipal Income Fund – The expense comparisons for the Fund showed that its actual management fee was in the quartile with the lowest expenses of its Expense Group and its total expenses were in the quartile with the second lowest expenses of its Expense Group. The Board was satisfied with the management fee and total expenses of the Fund in comparison to those of its Expense Group.

Management profitability. The Board considered the level of profits, if any, realized by DMC in connection with the operation of the Funds. In this respect, the Board reviewed the Investment Management Profitability Analysis that addressed the overall profitability of DMC’s business in providing management and other services to each of the individual funds and the Delaware Funds as a whole. Specific attention was given to the methodology used by DMC in allocating costs for the purpose of determining profitability. Management stated that the level of profits of DMC, to a certain extent, reflects recent operational cost savings and efficiencies initiated by DMC. The Board considered DMC’s efforts to improve services provided to Fund shareholders and to meet additional regulatory and compliance requirements resulting from recent industry-wide Securities and Exchange Commission initiatives. The Board also considered the extent to which DMC might derive ancillary benefits from fund operations, including the potential for procuring additional business as a result of the prestige and visibility associated with its role as service provider to the Delaware Funds and the benefits from allocation of fund brokerage to improve trading efficiencies. As part of its work, the Board also reviewed a report prepared by JDL regarding MIMBT profitability as compared to certain peer fund complexes and the Independent Directors discussed with JDL personnel regarding DMC’s profitability in such context. The Board found that the management fees were reasonable in light of the services rendered and the profitability of DMC.

Economies of scale. As closed-end funds, the Funds do not issue shares on a continuous basis. Fund assets, therefore, increase primarily as a result of the increase in value of the underlying securities in each Fund. Accordingly, the Board determined that the Funds were not likely to experience significant economies of scale due to asset growth and, therefore, a fee schedule with breakpoints to pass the benefit of economies of scale on to shareholders was not likely to provide the intended effect.

 

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Other Fund information

(Unaudited)

Delaware Funds® by Macquarie Closed-End Municipal Bond Funds

 

Proxy results

At the annual meeting on Aug. 21, 2019, the shareholders of the Funds voted to elect a Board of Directors. A quorum was present and the votes passed with a majority of those shares. All shareholders of each Fund vote together with respect to the election of each Director with one exception. The holders of preferred shares of the Funds that have issued one or more classes of preferred shares have the exclusive right to separately elect two Directors, Ms. Borowiec and Mr. Chow.

The results of the voting at the meeting were as follows:

Delaware Investments® Colorado Municipal Income Fund, Inc.

 

     Common shareholders    Preferred shareholders
          Shares voted         Shares voted
     Shares    withheld    Shares    withheld
     voted for    authority    voted for    authority

Jerome D. Abernathy

   3,913,150    228,340    300    0

Thomas L. Bennett

   3,908,517    232,973    300    0

John A. Fry

   3,895,743    245,747    300    0

Lucinda S. Landreth

   3,840,962    300,528    300    0

Shawn K. Lytle

   3,913,732    227,758    300    0

Frances A. Sevilla-Sacasa

   3,855,222    286,268    300    0

Thomas K. Whitford

   3,941,888    199,602    300    0

Christianna Wood

   3,856,344    285,146    300    0

Janet L. Yeomans

   3,840,962    300,528    300    0

Ann D. Borowiec

         300    0

Joseph W. Chow

         300    0

Delaware Investments® Minnesota Municipal Income Fund II, Inc.

 

     Common shareholders    Preferred shareholders
          Shares voted         Shares voted
     Shares    withheld    Shares    withheld
     voted for    authority    voted for    authority

Jerome D. Abernathy

   8,891,543    928,786    750    0

Thomas L. Bennett

   8,979,496    930,833    750    0

John A. Fry

   8,989,077    921,252    750    0

Lucinda S. Landreth

   8,992,229    918,100    750    0

Shawn K. Lytle

   8,989,134    921,195    750    0

Frances A. Sevilla-Sacasa

   8,995,379    914,950    750    0

Thomas K. Whitford

   8,995,104    915,225    750    0

Christianna Wood

   9,000,904    909,425    750    0

Janet L. Yeomans

   8,994,035    916,294    750    0

Ann D. Borowiec

         750    0

Joseph W. Chow

         750    0

 

42


Table of Contents

                

 

Delaware Investments® National Municipal Income Fund

 

     Common shareholders    Preferred shareholders
          Shares voted         Shares voted
     Shares    withheld    Shares    withheld
     voted for    authority    voted for    authority

Jerome D. Abernathy

   3,812,613    257,735    300    0

Thomas L. Bennett

   3,845,067    225,281    300    0

John A. Fry

   3,845,896    224,452    300    0

Lucinda S. Landreth

   3,800,527    269,821    300    0

Shawn K. Lytle

   3,846,567    223,781    300    0

Frances A. Sevilla-Sacasa

   3,844,782    225,566    300    0

Thomas K. Whitford

   3,847,779    222,569    300    0

Christianna Wood

   3,771,424    298,924    300    0

Janet L. Yeomans

   3,799,972    270,376    300    0

Ann D. Borowiec

         300    0

Joseph W. Chow

         300    0

 

(continues)                                                 43


Table of Contents

About the organization

This semiannual report is for the information of Delaware Funds® by Macquarie Closed-End Municipal Bond Funds shareholders.

 

Board of directors/trustees

Shawn K. Lytle

President and

Chief Executive Officer

Delaware Funds by Macquarie

Philadelphia, PA

Thomas L. Bennett

Chairman of the Board

Delaware Funds by Macquarie

Private Investor

Rosemont, PA

Jerome D. Abernathy

Managing Member

Stonebrook Capital Management, LLC

New York, NY

Ann D. Borowiec

Former Chief Executive Officer

Private Wealth Management

J.P. Morgan Chase & Co.

New York, NY

Joseph W. Chow

Former Executive Vice President

State Street Corporation

Boston, MA

John A. Fry

President

Drexel University

Philadelphia, PA

Lucinda S. Landreth

Former Chief Investment Officer

Assurant, Inc.

New York, NY

Frances A. Sevilla-Sacasa

Former Chief Executive Officer

Banco Itaú International

Miami, FL

Thomas K. Whitford

Former Vice Chairman

PNC Financial Services Group

Pittsburgh, PA

Christianna Wood

Chief Executive Officer and President

Gore Creek Capital, Ltd.

Golden, CO

Janet L. Yeomans

Former Vice President and Treasurer

3M Company

St. Paul, MN

Affiliated officers

David F. Connor

Senior Vice President, General

Counsel, and Secretary

Delaware Funds by Macquarie

Philadelphia, PA

Daniel V. Geatens

Vice President and Treasurer

Delaware Funds by Macquarie

Philadelphia, PA

Richard Salus

Senior Vice President and

Chief Financial Officer

Delaware Funds by Macquarie

Philadelphia, PA

Investment manager

Delaware Management Company, a series

of Macquarie Investment Management

Business Trust (MIMBT)

Philadelphia, PA

Principal office of the Funds

2005 Market Street

Philadelphia, PA 19103-7057

Independent registered public accounting firm

PricewaterhouseCoopers LLP

2001 Market Street

Philadelphia, PA 19103

Registrar and stock transfer agent

Computershare, Inc.

480 Washington Blvd.

Jersey City, NJ 07310

866 437-0252

For securities dealers and financial institutions representatives

800 362-7500

Website

delawarefunds.com/closed-end

Number of recordholders as of

Sept. 30, 2019

Colorado Municipal Fund             52 Minnesota Municipal Fund II      292 National Municipal Fund              59

Your reinvestment options

Each of the Funds offers an automatic dividend reinvestment program. If you would like to reinvest dividends, and shares are registered in your name, contact Computershare, Inc. at 866 437-0252. You will be asked to put your request in writing. If you have shares registered in “street” name, contact the broker/dealer holding the shares or your financial advisor. If you choose to receive your dividends in cash, you may now elect to receive them by ACH transfer. Contact Computershare at the number above for more information.

Each Fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-Q or Form N-PORT (available for filings after March 31, 2019). Each Fund’s Forms N-Q or Forms N-PORT, as well as a description of the policies and procedures that the Funds use to determine how to vote proxies (if any) relating to portfolio securities, are available without charge (i) upon request, by calling 866 437-0252; and (ii) on the SEC’s website at sec.gov. In addition, a description of the policies and procedures that the Funds use to determine how to vote proxies (if any) relating to portfolio securities and the Schedules of Investments included in the Funds’ most recent Forms N-Q or Forms N-PORT are available without charge on the Funds’ website at delawarefunds.com/closed-end. Each Fund’s Forms N-Q and Forms N-PORT may be reviewed and copied at the SEC’s Public Reference Room in Washington, D.C.; information on the operation of the Public Reference Room may be obtained by calling 800 SEC-0330.

Information (if any) regarding how each Fund voted proxies relating to portfolio securities during the most recently disclosed 12-month period ended June 30 is available without charge (i) through the Funds’ website at delawarefunds.com/proxy; and (ii) on the SEC’s website at sec.gov.

 

 

44


Item 2. Code of Ethics

Not applicable.

Item 3. Audit Committee Financial Expert

Not applicable.

Item 4. Principal Accountant Fees and Services

Not applicable.

Item 5. Audit Committee of Listed Registrants

Not applicable.

Item 6. Investments

(a) Included as part of report to shareholders filed under Item 1 of this Form N-CSR.

(b) Divestment of securities in accordance with Section 13(c) of the Investment Company Act of 1940.

Not applicable.

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies

Not applicable.

Item 8. Portfolio Managers of Closed-End Management Investment Companies

Not applicable.

Item 9. Purchases of Equity Securities by Closed-End Management Investment Companies and Affiliated Purchasers

Not applicable.

Item 10. Submission of Matters to a Vote of Security Holders

Not applicable.

Item 11. Controls and Procedures

The registrant’s principal executive officer and principal financial officer have evaluated the registrant’s disclosure controls and procedures within 90 days of the filing of this report and have concluded that they are effective in providing reasonable assurance that the information required to be disclosed by the registrant in its reports or statements filed under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the Securities and Exchange Commission.


There were no significant changes in the registrant’s internal control over financial reporting that occurred during the period covered by the report to stockholders included herein that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.

Not applicable.

Item 13. Exhibits

(a) (1) Code of Ethics

Not applicable.

(2) Certifications of Principal Executive Officer and Principal Financial Officer pursuant to Rule 30a-2 under the Investment Company Act of 1940 are attached hereto as Exhibit 99.CERT.

(3) Written solicitations to purchase securities pursuant to Rule 23c-1 under the Securities Exchange Act of 1934.

Not applicable.

(b) Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 are furnished herewith as Exhibit 99.906CERT.


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf, by the undersigned, thereunto duly authorized.

DELAWARE INVESTMENTS COLORADO MUNICIPAL INCOME FUND, INC.

SHAWN K. LYTLE
By: Shawn K. Lytle
Title:       President and Chief Executive Officer
Date: December 4, 2019

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

SHAWN K. LYTLE
By: Shawn K. Lytle
Title:       President and Chief Executive Officer
Date: December 4, 2019
   
RICHARD SALUS
By: Richard Salus
Title:       Chief Financial Officer
Date: December 4, 2019


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