JOINT INSURANCE AGREEMENT
THIS JOINT INSURANCE AGREEMENT, dated as of October 31, 2019, is by and among the funds comprising the Delaware Funds by Macquarie
(listed on Attachment I hereto) (the "Funds").
BACKGROUND
THIS AGREEMENT is entered into with the following background:
A. Section 17(g) of the Investment Company Act of 1940 (the "Act") authorizes the Securities and Exchange Commission ("SEC") to require that the officers and employees of
registered management investment companies be bonded against larceny and embezzlement, and the SEC has promulgated Rule 17g-1 requiring such coverage in specified minimum amounts.
B. The Funds have obtained and maintain the bonds and policies of insurance providing coverage against larceny and embezzlement by their officers and employees set forth in
Attachment I hereto (the “Joint Bonds”).
C. The Board of Trustees/Directors of each Fund, by vote of a majority of its members including a majority of those members of the Board of each Fund who are not "interested
persons" as defined by Section 2 (a) (19) of the Act, has given due consideration to all factors relevant to the amount, type, form, coverage and apportionment of recoveries and premiums on the Joint Bonds and has approved the form, term and
amount of the Joint Bonds, the portion of the premiums payable by each Fund, and the manner in which recovery on the Joint Bonds ("Joint Bond Proceeds"), if any, shall be shared by and among the parties hereto as hereinafter set forth.
NOW, THEREFORE, IT IS HEREBY AGREED by and among the parties hereto as follows:
1. ALLOCATION OF PROCEEDS
a. In the event a single party suffers a loss or losses covered under the Joint Bonds, the party suffering such loss or losses shall be entitled to be indemnified up to the full
amount of the Joint Bond Proceeds.
b. If more than one party is damaged in a single loss for which Joint Bond Proceeds are received, each such party shall receive that portion of the Joint Bond Proceeds which
represents the loss sustained by that party, unless the recovery is inadequate to indemnify fully each such party. If the recovery is inadequate to indemnify fully each such party sustaining a loss, the Joint Bond Proceeds shall be allocated
among such parties as follows:
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(1)
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Each party sustaining a loss shall be allocated an amount equal to the lesser of its actual loss or the minimum amount of bond coverage then allocated to such party in accordance with Rule 17g-1. Any party not fully indemnified for
its insurable losses as a result of this allocation is hereafter referred to as an "Unindemnified Party".
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(2)
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The remaining portion of the Joint Bond Proceeds, if any, shall be allocated to each Unindemnified Party in the same proportion as such party's allocation of minimum bond coverage (in accordance with Rule 17g-1) bears to the
aggregate of the minimum bond coverage amounts for all Unindemnified Parties, provided that no party shall receive Joint Bond Proceeds in excess of its actual insurable losses.
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2. ALLOCATION OF PREMIUMS
a. The premiums payable with respect to the Joint Bonds shall be allocated to each of the parties hereto on an annual basis (and, in the event any increased or additional premium
is required to be paid during the year, as of the date such increased or additional premium is due) in the same proportion as each party's minimum amount of bond coverage as then reflected on Attachment II hereto shall bear to the total of such
minimum coverage.
3. BOND COVERAGE REQUIREMENTS AND CHANGES
a. Each party hereto has determined that the minimum amount of fidelity bond coverage deemed appropriate to be maintained by it as of the date of this Agreement is as set forth
opposite its name in Attachment II hereto. Each of the Funds represents and warrants to each of the other parties hereto that the minimum amount of coverage required of it under Rule 17g-1(d)(1) as of the date hereof is not more than the amount
reflected opposite its name in Attachment II hereto. Each of the Funds further agrees that it will promptly take such steps as may be necessary, from time to time, to increase its minimum coverage as set forth in Attachment II hereto (and, if
necessary, the face amount of the Joint Bonds) so that its minimum coverage as therein set forth shall at no time be less than the minimum coverage required of it under Rule 17g-1(d)(1).
b. The parties hereto may, from time to time hereafter, agree to modify Attachment II hereto to reflect changes in allocation of premium and coverage. All references in this
Agreement to "Attachment II" shall be to such Attachment as amended as of the relevant date on which premiums are to be allocated or losses are sustained.
4. ADDITION OF NEW FUNDS AND OTHER ENTITIES
The parties to this Agreement contemplate that additional funds or other related entities permitted by Rule 17g-1 ("Additional
Entities") may be added to Delaware Funds by
Macquarie from time to time after the date of this Agreement. In the event an Additional Entity is organized, such Entity may be included as an
additional party to this Agreement if the Board of Trustees/Directors of each of the Funds (including an Additional Fund if it is being added) approve such addition and establish a revised minimum allocation of bond coverage. The inclusion of an
Additional Entity as a party to this Agreement shall be evidenced by such Entity's execution of the Addendum to this Agreement and all references herein to the "Funds" shall include any such Additional Entities.
5. TERM OF AGREEMENT
This Agreement shall apply to the present fidelity bond coverage and any renewals or replacements thereof and shall continue until
terminated by any party hereto upon the giving of not less than sixty days written notice to the other parties.
6. DISPUTES
Any dispute arising under this Agreement shall be submitted to arbitration in the City of Philadelphia, Pennsylvania under the Rules
of the American Arbitration Association, and the decision rendered therein shall be final and binding upon the parties hereto.
7. GOVERNING LAW
This Agreement shall be governed by, and construed in accordance with the laws of the Commonwealth of Pennsylvania, to the extent not
inconsistent with applicable provisions of the Act and the rules and regulations promulgated thereunder by the SEC.
IN WITNESS WHEREOF, the parties hereto, intending to be legally bound hereby, have caused this Agreement to be executed by a duly
authorized officer or representative as of the date first written above.
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DELAWARE FUNDS BY MACQUARIE on behalf of those Funds listed
on Attachment I
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By:
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/s/Shawn Lytle
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Shawn Lytle
President
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ATTACHMENT I TO JOINT INSURANCE
AGREEMENT DATED AS OF OCTOBER 7, 2019
DELAWARE FUNDS BY MACQUARIE
FUND
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Delaware Group® Adviser Funds
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Delaware Diversified Income Fund
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Delaware Global Real Estate Opportunities Fund
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Delaware U.S. Growth Fund
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Delaware Group® Cash Reserve
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Delaware Investments Ultrashort Fund
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Delaware Group® Equity Funds I
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Delaware Mid Cap Value Fund
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Delaware Group® Equity Funds II
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Delaware Value® Fund
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Delaware Group® Equity Funds IV
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Delaware Healthcare Fund
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Delaware Small Cap Growth Fund
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Delaware Smid Cap Growth Fund
Delaware Covered Call Strategy Fund
Delaware Equity Income Fund
Delaware Global Equity Fund
Delaware Growth and Income Fund
Delaware Hedged U.S. Equity Opportunities Fund
Delaware International Fund
Delaware Opportunity Fund
Delaware Premium Income Fund
Delaware Growth Equity Fund
Delaware Special Situations Fund
Delaware Total Return Fund
Delaware Floating Rate II Fund
Delaware Fund for Income
Delaware Government Cash Management Fund
Delaware International Opportunities Bond Fund
Delaware Investment Grade Fund
Delaware Limited Duration Bond Fund
Delaware Strategic Income II Fund
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Delaware Group® Equity Funds V
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Delaware Small Cap Core Fund
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Delaware Small Cap Value Fund
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Delaware Wealth Builder Fund
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Delaware Group® Foundation Funds
(Delaware Foundation Funds®)
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Delaware Foundation® Conservative Allocation Fund
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Delaware Foundation® Moderate Allocation Fund
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Delaware Group® Global & International Funds
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Delaware Emerging Markets Fund
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Delaware Global Value Fund
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Delaware International Small Cap Fund
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Delaware International Value Equity Fund
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FUND
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Delaware Group® Government Fund
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Delaware Emerging Markets Debt Fund
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Delaware Strategic Income Fund
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Delaware Group® Income Funds
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Delaware Corporate Bond Fund
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Delaware Extended Duration Bond Fund
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Delaware Floating Rate Fund
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Delaware High-Yield Opportunities Fund
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Delaware Group® Limited-Term Government Funds
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Delaware Limited-Term Diversified Income Fund
Delaware Tax-Exempt Income Fund
Delaware Tax-Exempt Opportunities fund
Delaware Tax-Free California II Fund
Delaware Tax-Free New Jersey Fund
Delaware Tax-Free New York II Fund
Delaware Tax-Free Oregon Fund
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Delaware Group® State Tax-Free Income Trust
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Delaware Tax-Free Pennsylvania Fund
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Delaware Group® Tax-Free Fund
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Delaware Tax-Free USA Fund
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Delaware Tax-Free USA Intermediate Fund
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Delaware Pooled® Trust
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Macquarie Core Plus Bond Portfolio
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Macquarie Emerging Markets Portfolio
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Macquarie High Yield Bond Portfolio
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Macquarie Labor Select International Equity Portfolio
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Macquarie Large Cap Value Portfolio
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Delaware Global Listed Real Assets Fund
(formerly Delaware REIT Fund)
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Delaware VIP® Trust5
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Delaware VIP® Diversified Income Series
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Delaware VIP® Emerging Markets Series
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Delaware VIP® High Yield Series
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Delaware VIP® International Value Equity Series
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Delaware VIP® Limited-Term Diversified Income Series
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Delaware VIP® REIT Series
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Delaware VIP® Small Cap Value Series
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Delaware VIP® Smid Cap Core Series
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Delaware VIP® U.S. Growth Series
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FUND
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Delaware VIP® Value Series
Delaware VIP® Covered Call Strategy Series
Delaware VIP® Fund for Income Series
Delaware VIP® Growth Equity Series
Delaware VIP® Equity Income Series
Delaware VIP® Government Cash Management Series
Delaware VIP® Growth and Income Series
Delaware VIP® Opportunity Series
Delaware VIP® Limited Duration Bond Series
Delaware VIP® Special Situations Series
Delaware VIP® International Series
Delaware VIP® Total Return Series
Delaware VIP® Investment Grade Series
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Voyageur Insured Funds
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Delaware Tax-Free Arizona Fund
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Voyageur Intermediate Tax Free Funds
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Delaware Tax-Free Minnesota Intermediate Fund
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Voyageur Mutual Funds
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Delaware Minnesota High-Yield Municipal Bond Fund
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Delaware National High-Yield Municipal Bond Fund
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Delaware Tax-Free California Fund
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Delaware Tax-Free Idaho Fund
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Delaware Tax-Free New York Fund
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Voyageur Mutual Funds II
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Delaware Tax-Free Colorado Fund
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Voyageur Mutual Funds III
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Delaware Select Growth Fund
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Voyageur Tax Free Funds
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Delaware Tax-Free Minnesota Fund
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Delaware Enhanced Global Dividend and Income Fund
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Delaware Investments Dividend and Income Fund, Inc.
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Delaware Investments Colorado Municipal Income Fund, Inc.
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Delaware Investments Minnesota Municipal Income Fund II, Inc.
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Delaware Investments National Municipal Income Fund
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