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:      811-07420
 
Exact name of registrant as specified in charter: Delaware Investments® Minnesota
Municipal Income Fund II, 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, 2013



Item 1. Reports to Stockholders

     
     
     Semiannual Report
 
     
     Delaware
     Investments®
     Closed-End
     Municipal Bond
     Funds
  
September 30, 2013  
     
   
   
        
   
   
     
 
The figures in the semiannual report for Delaware Investments Closed-End Municipal Bond Funds represent past results, which are not a guarantee of future results. A rise or fall in interest rates can have a significant impact on bond prices. Funds that invest in bonds can lose their value as interest rates rise.
 

 
 
   
  Closed-end funds  
     

 



Table of contents

       > Fund basics 1
 
  > Security type/Sector/State allocations 2
 
> Schedules of investments 4
 
> Statements of assets and liabilities 17
 
> Statements of operations 18
 
> Statements of changes in net assets 19
 
> Financial highlights 20
 
> Notes to financial statements 23
 
> Other Fund information 29
 
> About the organization 33







Delaware Management Holdings, Inc. and its subsidiaries (collectively known by the marketing name of Delaware Investments) are wholly owned subsidiaries of Macquarie Group Limited, a global provider of banking, financial, advisory, investment and funds management services. For more information, including press releases, please visit delawareinvestments.com.

Unless otherwise noted, views expressed herein are current as of Sept. 30, 2013, and subject to change. Information is as of the date indicated and subject to change.

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

Mutual fund advisory services are provided by Delaware Management Company, a series of Delaware Management Business Trust, which is a registered investment advisor. Delaware Investments, a member of Macquarie Group, refers to Delaware Management Holdings, Inc. and its subsidiaries. Macquarie Group refers to Macquarie Group Limited and its subsidiaries and affiliates worldwide.

Investments in Delaware Investments® Closed-End Municipal Bond Funds are not and will not be deposits with or liabilities of Macquarie Bank Limited ABN 46 008 583 542 and its holding companies, including their subsidiaries or related companies (Macquarie Group), and are subject to investment risk, including possible delays in repayment and loss of income and capital invested. No Macquarie Group company guarantees or will guarantee the performance of the Funds, the repayment of capital from the Funds, or any particular rate of return.

© 2013 Delaware Management Holdings, Inc.

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



Fund basics

Delaware Investments®
Colorado Municipal Income Fund, Inc.

As of September 30, 2013

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
$67 million
 
Number of holdings
80
 
Fund start date
July 29, 1993
 
CUSIP number
246101109

Delaware Investments
Minnesota Municipal Income Fund II, Inc.

As of September 30, 2013

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
$162 million
 
Number of holdings
144
 
Fund start date
Feb. 26, 1993
 
CUSIP number
24610V103

Delaware Investments
National Municipal Income Fund

As of September 30, 2013

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
$60 million
 
Number of holdings
170
 
Fund start date
Feb. 26, 1993
 
CUSIP number
24610T108

1



Security type/Sector/State allocations

As of September 30, 2013 (Unaudited)

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

Delaware Investments®
Colorado Municipal Income Fund, Inc.

Percentage
Security type/Sector of Net Assets
Municipal Bonds 142.27 %
Corporate-Backed Revenue Bond 1.27 %
Education Revenue Bonds 19.67 %
Electric Revenue Bonds 5.49 %
Healthcare Revenue Bonds 39.08 %
Housing Revenue Bonds 1.01 %
Lease Revenue Bonds 10.11 %
Local General Obligation Bonds 14.49 %
Pre-Refunded Bonds 18.56 %
Special Tax Revenue Bonds 25.11 %
State General Obligation Bond 1.15 %
Transportation Revenue Bonds 4.79 %
Water & Sewer Revenue Bond 1.54 %
Short-Term Investment 0.37 %
Total Value of Securities 142.64 %
Liquidation Value of Preferred Stock (44.45 %)
Receivables and Other Assets Net of Liabilities 1.81 %
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 of the United States as follows:

Territory (as a % of fixed income investments)
Guam 1.51 %
Puerto Rico 7.35 %

Delaware Investments
Minnesota Municipal Income Fund II, Inc.

Percentage
Security type/Sector of Net Assets
Municipal Bonds 143.54 %
Corporate-Backed Revenue Bonds 6.83 %
Education Revenue Bonds 17.52 %
Electric Revenue Bonds 9.13 %
Healthcare Revenue Bonds 40.57 %
Housing Revenue Bonds 6.67 %
Lease Revenue Bonds 10.94 %
Local General Obligation Bonds 9.35 %
Pre-Refunded/Escrowed to Maturity Bonds 20.02 %
Special Tax Revenue Bonds 7.54 %
State General Obligation Bonds 8.29 %
Transportation Revenue Bonds 3.46 %
Water & Sewer Revenue Bonds 3.22 %
Short-Term Investments 0.31 %
Total Value of Securities 143.85 %
Liquidation Value of Preferred Stock (46.37 %)
Receivables and Other Assets Net of Liabilities 2.52 %
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 of the United States as follows:

Territory (as a % of fixed income investments)
Guam 0.07 %
Puerto Rico 1.45 %

2



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

Delaware Investments®
National Municipal Income Fund

Percentage
Security type/Sector of Net Assets
Municipal Bonds 147.89 %
Corporate-Backed Revenue Bonds 15.51 %
Education Revenue Bonds 25.64 %
Electric Revenue Bonds 2.85 %
Healthcare Revenue Bonds 25.17 %
Housing Revenue Bonds 2.56 %
Lease Revenue Bonds 15.50 %
Local General Obligation Bonds 2.52 %
Special Tax Revenue Bonds 23.83 %
State General Obligation Bonds 4.56 %
Transportation Revenue Bonds 22.63 %
Water & Sewer Revenue Bonds 7.12 %
Short-Term Investments 1.64 %
Total Value of Securities 149.53 %
Liquidation Value of Preferred Stock (49.85 %)
Receivables and Other Assets Net of Liabilities 0.32 %
Total Net Assets 100.00 %

State or Territory (as a % of fixed income investments)
Alaska 0.35 %
Arizona 10.68 %
California 15.08 %
Colorado 2.31 %
Florida 2.93 %
Georgia 1.84 %
Guam 2.07 %
Hawaii 0.34 %
Idaho 1.17 %
Illinois 1.75 %
Iowa 0.09 %
Kansas 0.15 %
Louisiana 3.27 %
Maine 0.35 %
Maryland 2.35 %
Massachusetts 0.99 %
Minnesota 5.18 %
Missouri 2.23 %
New Hampshire 0.36 %
New Jersey 5.05 %
New Mexico 0.56 %
New York 14.39 %
Ohio 1.78 %
Oregon 2.70 %
Pennsylvania 6.93 %
Puerto Rico 3.42 %
South Carolina 0.55 %
Texas 7.51 %
Virginia 1.88 %
Washington D.C. 0.28 %
West Virginia 0.67 %
Wisconsin 0.50 %
Wyoming 0.29 %
Total 100.00 %

3



Schedules of investments

Delaware Investments® Colorado Municipal Income Fund, Inc.
September 30, 2013 (Unaudited)

          Principal
          Amount Value
Municipal Bonds – 142.27%            
Corporate-Backed Revenue Bond – 1.27%
Public Authority for Colorado Energy
Natural Gas Revenue Series 2008
6.50% 11/15/38 $ 750,000 $ 858,720
858,720
Education Revenue Bonds – 19.67%
Colorado Educational & Cultural
Facilities Authority Revenue
(Academy Charter School Project)
  5.50% 5/1/36 (SGI) 1,720,000 1,749,137
(Bromley Charter School Project)
5.25% 9/15/32 (SGI) 3,245,000 3,263,172
(Charter School - Community
Leadership Academy)
7.45% 8/1/48 500,000 506,070
(Littleton Charter School Project)
4.375% 1/15/36 (Assured GTY) 1,200,000 1,066,524
(Student Housing - Campus
Village Apartments) 5.00% 6/1/23 1,065,000 1,145,983
Colorado School of Mines Series B
5.00% 12/1/42 1,250,000 1,289,813
Colorado State Board of      
Governors Revenue
(University Enterprise System)  
Series A 5.00% 3/1/39 10,000 10,408
University of Colorado 5.00% 6/1/31 3,185,000 3,412,950
University of Colorado Enterprise
Systems Revenue Series A
5.375% 6/1/38 750,000 826,980
13,271,037
Electric Revenue Bonds – 5.49%
Colorado Springs Utilities System
Improvement Revenue Series C
5.50% 11/15/48 750,000 810,353
Platte River Power Authority Revenue
Series HH 5.00% 6/1/28 1,500,000 1,687,230
Puerto Rico Electric Power
Authority Revenue
Series TT 5.00% 7/1/37 685,000 471,725
Series WW 5.50% 7/1/38 300,000 215,181
Series XX 5.25% 7/1/40 750,000 521,850
3,706,339
Healthcare Revenue Bonds – 39.08%
Aurora Hospital Revenue (Children’s
Hospital Association Project)
Series A 5.00% 12/1/40 4,000,000 4,000,839
Colorado Health Facilities
Authority Revenue
(Boulder Community Hospital
Project) 5.00% 10/1/32 500,000 511,090
(Catholic Health Initiatives)
Series A 5.00% 7/1/39 750,000 754,410
Series A 5.00% 2/1/41 2,400,000 2,402,759
Series A 5.25% 2/1/33 1,625,000 1,689,009
Series C-1 5.10% 10/1/41 (AGM) 1,000,000 1,003,400
Series D 6.125% 10/1/28 750,000 860,753
(Christian Living Communities
Project) Series A
5.75% 1/1/37 885,000 865,495
6.375% 1/1/41 615,000 620,812
(Covenant Retirement
Communities Inc)
5.00% 2/1/33 1,000,000 927,380
5.75% 12/1/36 1,000,000 984,190
(Evangelical Lutheran Good
Samaritan Society)
5.25% 6/1/23 1,000,000 1,048,930
5.50% 6/1/33 2,000,000 2,033,580
5.625% 6/1/43 1,000,000 1,007,330
(National Jewish Health Project)
5.00% 1/1/27 500,000 500,800
(Sisters of Charity of Leavenworth
Health System) 5.00% 1/1/40 4,750,000 4,769,902
(Total Long-Term Care)
Series A 6.00% 11/15/30 400,000 418,460
Denver Health & Hospital Authority
Revenue (Recovery Zone Facilities)
5.625% 12/1/40 750,000 758,753
University of Colorado Hospital
Authority Revenue Series A
5.00% 11/15/37 500,000 500,885
6.00% 11/15/29 650,000 717,555
26,376,332
Housing Revenue Bonds – 1.01%
Colorado Housing & Finance
Authority (Single Family
Mortgage - Class 1)
Series A 5.50% 11/1/29
(FHA) (VA) (HUD) 345,000 357,996
Puerto Rico Housing Finance
Authority (Subordinated-Capital
Fund Modernization)
5.50% 12/1/18 (HUD) 300,000 321,288
679,284
Lease Revenue Bonds – 10.11%
Aurora Certificates of Participation
Series A 5.00% 12/1/30 630,000 672,342
Colorado State Building Excellent
Schools Today Certificates
of Participation Series G
5.00% 3/15/32 2,000,000 2,093,680
Glendale Certificates Participation
5.00% 12/1/25 (SGI) 1,500,000 1,558,185
Pueblo County Certificates of
Participation (County
Judicial Complex Project)
5.00% 9/15/42 (AGM) 2,000,000 2,012,880

4



          Principal
                Amount       Value
Municipal Bonds (continued)
Lease Revenue Bonds (continued)
Regional Transportation District
Certificates of Participation
Series A 5.375% 6/1/31 $ 460,000 $ 487,968
6,825,055
Local General Obligation Bonds – 14.49%
Arapahoe County School District
No. 1 Englewood 5.00% 12/1/31 2,935,000 3,180,218
Boulder, Larimer & Weld Counties St.
Vrain Valley School District No.
Re-1J 5.00% 12/15/33 750,000 823,658
Central Colorado Water
Conservancy District (Limited Tax)
5.00% 12/1/33 750,000 783,398
Denver City & County  
(Better Denver & Zoo)
Series A 5.00% 8/1/25 650,000 737,562
(School District No. 1)
4.00% 12/1/28 1,250,000 1,273,525
Denver International Business
Center Metropolitan District No. 1
5.00% 12/1/30 650,000 659,737
Jefferson County School District
No. R-1 5.25% 12/15/24 750,000 897,285
Pueblo County School District No. 70    
5.00% 12/1/31     500,000 535,260
Rangely Hospital District
6.00% 11/1/26 750,000 824,445
Sand Creek Metropolitan District
5.00% 12/1/31 (SGI) 70,000 66,701
9,781,789
§Pre-Refunded Bonds – 18.56%
Adams & Arapahoe Counties Joint
School District No. 28J (Aurora)
6.00% 12/1/28-18 600,000 737,604
Bowles Metropolitan District
5.00% 12/1/33-13 (AGM) 2,000,000 2,016,380
Colorado Health Facilities
Authority Revenue
(Evangelical Lutheran Good
Samaritan Society) Series A
6.125% 6/1/38-14 750,000 779,640
Colorado State Board of Governors
Series A 5.00% 3/1/39-19 690,000 814,034
Colorado Water Resources &
Power Development Authority
Revenue (Parker Water &
Sanitation District Series D
5.125% 9/1/34-14 (NATL-RE) 1,500,000 1,567,935
5.25% 9/1/43-14 (NATL-RE) 2,000,000 2,092,880
Regional Transportation District
Revenue (FasTracks Project) Series A
4.375% 11/1/31-16 (AMBAC) 1,250,000 1,389,913
5.00% 11/1/28-16 (AMBAC) 2,500,000 2,827,450
Sand Creek Metropolitan District
5.00% 12/1/31-13 (SGI) 295,000 297,416
12,523,252
Special Tax Revenue Bonds – 25.11%  
Denver Convention Center Hotel
Authority Revenue
5.00% 12/1/35 (SGI) 2,875,000 2,745,050
  Guam Government Business Privilege
Tax Revenue Series A
5.125% 1/1/42 435,000 434,000
5.25% 1/1/36 565,000 582,504
Puerto Rico Sales Tax Financing
Revenue First Subordinate
Series A 5.50% 8/1/37 700,000 559,902
Series A 6.00% 8/1/42 590,000 481,340
Series A-1 5.00% 8/1/43 1,560,000 1,133,543
Series C 5.00% 8/1/40 1,000,000 846,260
Series C 6.00% 8/1/39 500,000 410,965
Regional Transportation
  District Revenue
(Denver Transit Partners)
6.00% 1/15/41 2,175,000 2,192,248
(FasTracks Project) Series A
4.50% 11/1/36 (AGM) 3,000,000 3,008,789
5.00% 11/1/38 4,085,000 4,293,579
Tallyns Reach Metropolitan District
No. 3 5.125% 11/1/38 295,000 258,960
16,947,140
State General Obligation Bond – 1.15%
Western State College
5.00% 5/15/34 750,000 775,950
775,950
Transportation Revenue Bonds – 4.79%
Denver City & County Airport
System Revenue
Series A 5.25% 11/15/36 750,000 768,885
Series B 5.00% 11/15/27 1,000,000 1,077,560
Series B 5.00% 11/15/28 1,000,000 1,068,680
E-470 Public Highway Authority
Revenue Series C 5.25% 9/1/25 310,000 319,498
3,234,623
Water & Sewer Revenue Bond – 1.54%
Parker Water & Sanitation District
5.00% 8/1/43 1,000,000 1,036,800
1,036,800
Total Municipal Bonds
(cost $96,018,020) 96,016,321

(continues)       5



Schedules of investments

Delaware Investments® Colorado Municipal Income Fund, Inc.

                Principal      
Amount Value
Short-Term Investment – 0.37%
¤ Variable Rate Demand Note – 0.37%
Colorado State Educational & Cultural
          Facilities Authority Revenue    
          (National Jewish Federation Bond  
          Program) Series D-1 0.04% 7/1/36
          (LOC-JPMorgan Chase Bank N.A.) $ 250,000 $ 250,000
Total Short-Term Investment
(cost $250,000) 250,000
 
Total Value of Securities – 142.64%
(cost $96,268,020) $ 96,266,321

§Pre-refunded bonds. Municipal bonds that are generally backed or secured by U.S. Treasury bonds. For pre-refunded bonds, the stated maturity is followed by the year in which the bond is pre-refunded. See Note 6 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. The rate shown is the rate as of Sept. 30, 2013.

Summary of Abbreviations:
AGM — Insured by Assured Guaranty Municipal Corporation
AMBAC — Insured by AMBAC Assurance Corporation
ASSURED GTY — Insured by Assured Guaranty Corporation
FHA — Federal Housing Administration
HUD — Housing & Urban Development Section 8
LOC — Letter of Credit
NATL-RE — Insured by National Public Finance Guarantee Corporation
SGI — Insured by Syncora Guarantee Inc.
VA — Veterans Administration Collateral

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

6



Delaware Investments® Minnesota Municipal Income Fund II, Inc.
September 30, 2013 (Unaudited)

                Principal      
Amount Value
Municipal Bonds – 143.54%
Corporate-Backed Revenue Bonds – 6.83%
Cloquet Pollution Control Revenue
          (Potlatch Project) 5.90% 10/1/26 $ 5,500,000 $ 5,499,560
Laurentian Energy Authority I
          Cogeneration Revenue Series A
          5.00% 12/1/21 3,325,000 3,043,007
St. Paul Port Authority Revenue
          (Gerdau St. Paul Steel Mill Project)
          Series 7 4.50% 10/1/37 (AMT) 3,145,000 2,505,024
11,047,591
Education Revenue Bonds – 17.52%
Baytown Township Lease Revenue
          (St. Croix Preparatory Academy)  
          5.75% 8/1/42 300,000 270,111
Deephaven Charter School (Eagle
          Ridge Academy Project) Series A
          5.50% 7/1/43 500,000 459,635
Minnesota Higher Education
          Facilities Authority Revenue
          (Augsburg College) Series 6-J1
          5.00% 5/1/28 1,500,000 1,506,165
          (Carleton College)
          Series 6-T 5.00% 1/1/28 1,000,000 1,078,500
          Series D 5.00% 3/1/30 1,120,000 1,197,683
          (College of St. Benedict)
          Series 7-M
          5.00% 3/1/31 300,000 300,969
          5.125% 3/1/36 275,000 273,719
          (Macalester College) Series 7-S
          4.00% 5/1/43 1,250,000 1,154,063
          (St. Catherine University)
          Series 7-Q 5.00% 10/1/32 700,000 703,024
          (St. Mary’s University) Series 5-U
          4.80% 10/1/23 1,400,000 1,401,274
          (St. Scholastic College) Series H
          5.25% 12/1/35 1,000,000 1,014,650
          (University of St. Thomas)
          Series 6-X 5.00% 4/1/29 2,250,000 2,374,335
          Series 7-A 5.00% 10/1/39 1,000,000 1,031,880
          Series 7-U
          5.00% 4/1/20 495,000 576,274
          5.00% 4/1/21 450,000 523,620
          5.00% 4/1/22 750,000 874,568
St. Paul Housing & Redevelopment
          Authority Charter School Lease
          Revenue (Nova Classical
          Academy) Series A
          6.375% 9/1/31 750,000 785,993
University of Minnesota Series A
          5.00% 12/1/27 1,110,000 1,249,327
          5.00% 12/1/28 1,880,000 2,100,016
          5.00% 12/1/29 2,265,000 2,509,575
          5.00% 12/1/31 1,000,000 1,094,570
          5.00% 12/1/36 3,000,000 3,209,309
          5.25% 4/1/29 1,000,000 1,115,500
          Series C 5.00% 12/1/19 1,290,000 1,522,935
28,327,695
Electric Revenue Bonds – 9.13%
Central Minnesota Municipal
          Power Agency Revenue
          (Brookings Southeast Twin Cities
          Transportation) 5.00% 1/1/32 1,130,000 1,185,992
Chaska Electric Revenue Refunding
          (Generating Facilities) Series A
          5.25% 10/1/25 250,000 269,925
Minnesota Municipal Power Agency
          Electric Revenue Series A
          5.00% 10/1/34 3,400,000 3,499,483
          5.25% 10/1/19 1,610,000 1,681,339
Rochester Electric Utility Revenue
          5.00% 12/1/30 1,300,000 1,423,604
          Series B 5.00% 12/1/43 1,000,000 1,047,870
Southern Minnesota Municipal
          Power Agency Supply Revenue
          Series A 5.25% 1/1/30 1,030,000 1,088,391
Western Minnesota Municipal Power
          Agency Supply Revenue Series A
          5.00% 1/1/25 3,000,000 3,439,740
          5.00% 1/1/26 1,000,000 1,132,000
14,768,344
Healthcare Revenue Bonds – 40.57%
Anoka Health Care Facility Revenue
          (Homestead Anoka Project)
          Series A 7.00% 11/1/46 1,200,000 1,147,992
Center City Health Care
          Facilities Revenue (Hazelden
          Foundation Project)
          4.75% 11/1/31 850,000 847,408
          5.00% 11/1/41 1,600,000 1,619,600
Cloquet Housing Facilities Revenue
          (HADC Cloquet Project)
          Refunding Series A 5.00% 8/1/48 500,000 428,165
Deephaven Housing & Healthcare
          (St. Therese Senior Living Project)
          Series A
          5.00% 4/1/38 280,000 237,633
          5.00% 4/1/40 270,000 225,353
Duluth Economic Development
          Authority Revenue (St. Luke’s
          Hospital Authority
          Obligation Group)
          5.75% 6/15/32 500,000 492,635
          6.00% 6/15/39 1,000,000 996,000
Fergus Falls Health Care Facilities
          Revenue (Lake Region Healthcare)
          5.00% 8/1/30 1,000,000 1,002,010
Maple Grove Health Care System
          Revenue (Maple Grove Hospital)
          5.25% 5/1/37 1,100,000 1,097,734

(continues)       7



Schedules of investments

Delaware Investments® Minnesota Municipal Income Fund II, Inc.

          Principal
      Amount       Value
Municipal Bonds (continued)         
Healthcare Revenue Bonds (continued)
Minneapolis Health Care System
          Revenue (Fairview Health Services)
          Series A 6.375% 11/15/23 $ 605,000 $ 705,612
          Series A 6.625% 11/15/28 1,040,000 1,211,902
          Series B 6.50% 11/15/38
          (ASSURED GTY) 2,295,000 2,626,490
          Series D 5.00% 11/15/34 (AMBAC) 2,000,000 2,002,880
Minneapolis Revenue (National
          Marrow Donor Program Project)
          4.875% 8/1/25 1,000,000 1,003,280
Minneapolis - St. Paul Housing &
          Redevelopment Authority Health
          Care Revenue
          (Childrens Health Care Facilities)
          Series A1 5.00% 8/15/34 (AGM) 500,000 505,915
Minnesota Agricultural & Economic
          Development Board Revenue
          Un-Refunded Balance
          5.75% 11/15/26 (NATL-RE) 100,000 100,107
          6.375% 11/15/29 195,000 195,661
Rochester Health Care & Housing
          Revenue (Samaritan Bethany) Series A
          7.375% 12/1/41 1,220,000 1,287,783
Rochester Health Care Facilities
          Revenue (Mayo Clinic)
          4.00% 11/15/41 8,335,000 7,599,019
        Series A 4.00% 11/15/30 2,240,000 2,484,272
        Series C 4.50% 11/15/38 2,000,000 2,225,920
Sartell Health Care Facility Revenue
          (Country Manor Campus Project)
          5.25% 9/1/30 1,000,000 911,510
          5.30% 9/1/37 600,000 527,538
Shakopee Health Care Facilities
          Revenue (St. Francis Regional
          Medical Center) 5.25% 9/1/34 1,560,000 1,563,182
St. Cloud Health Care Revenue
          (Centracare Health System Project)
          5.50% 5/1/39 (ASSURED GTY) 1,500,000 1,571,040
          Series A 5.125% 5/1/30 5,175,000 5,459,935
St. Louis Park Health Care
          Facilities Revenue
          (Park Nicollet Health Services)
          5.75% 7/1/39 3,315,000 3,463,776
          Series C 5.50% 7/1/23 1,000,000 1,073,230
St. Paul Housing & Redevelopment
          Authority Health Care
          Facilities Revenue
          (Allina Health System)
          Series A 5.00% 11/15/18
          (NATL-RE) 1,380,000 1,556,612
          Series A-1 5.25% 11/15/29 1,395,000 1,467,163
          (Health Partners Obligation
          Group Project) 5.25% 5/15/36 2,000,000 2,027,740
          (Regions Hospital Project)
          5.30% 5/15/28 1,000,000 1,000,670
St. Paul Housing & Redevelopment
          Authority Hospital Revenue
          (Health East Project)
          6.00% 11/15/30 2,775,000 2,834,857
          6.00% 11/15/35 2,500,000 2,546,350
St. Paul Housing & Redevelopment
          Authority Housing & Health
          Care Facilities
          (Senior Carondelet Village
          Project) Series A 6.00% 8/1/42 770,000 776,468
          (Senior Episcopal Homes Project)
          5.125% 5/1/48 1,200,000 961,716
          Series A 4.75% 11/1/31 740,000 627,831
Washington County Housing
          & Redevelopment
          Authority Revenue
          (Birchwood & Woodbury Projects)
          Series A 5.625% 6/1/37 1,500,000 1,373,580
Wayzata Senior Housing
          Revenue (Folkestone Senior
          Living Community) Series A
          5.50% 11/1/32 420,000 410,760
          5.75% 11/1/39 945,000 933,622
          6.00% 5/1/47 1,475,000 1,484,425
Winona Health Care Facilities
          Revenue (Winona Health
          Obligated Group)
          4.65% 7/1/26 465,000 459,685
          4.75% 7/1/27 785,000 766,741
          5.00% 7/1/23 1,010,000 1,059,894
          5.00% 7/1/34 750,000 720,458
65,622,154
Housing Revenue Bonds – 6.67%
Minneapolis Multifamily
          Housing Revenue
        (Gaar Scott Loft Project)
          5.95% 5/1/30 (AMT)
          (LOC-U.S. Bank N.A.) 825,000 827,500
          (Olson Townhomes Project)
          6.00% 12/1/19 (AMT) 600,000 600,096
          (Seward Towers Project)
          5.00% 5/20/36 (GNMA) 2,000,000 2,013,480
          (Sumner Housing Project)
          Series A 5.15% 2/20/45
          (GNMA) (AMT) 2,000,000 2,000,100
Minnesota State Housing
          Finance Agency
          (Rental Housing) Series A
          5.00% 2/1/35 (AMT) 1,000,000 1,000,130
          (Residential Housing)
        Series D 4.75% 7/1/32 (AMT) 835,000 835,585
          Series I 5.15% 7/1/38 (AMT) 605,000 606,990
          Series L 5.10% 7/1/38 (AMT) 1,295,000 1,362,444

8



                Principal      
Amount Value
Municipal Bonds (continued)
Housing Revenue Bonds (continued)
Minnesota State Housing Finance
          Agency Homeownership
          Finance (Mortgage-Backed
          Securities Program)
          4.40% 7/1/32 (GNMA)
          (FNMA) (FHLMC) $ 1,440,000 $ 1,543,766
  10,790,091
Lease Revenue Bonds – 10.94%
Andover Economic Development
          Authority Public Facilities Lease
          Revenue (Andover
          Community Center)
          5.125% 2/1/24 205,000 208,280
          5.20% 2/1/29 410,000 416,667
Minnesota State General Fund
          Revenue Appropriations Series B
          4.00% 3/1/26 3,660,000 3,833,264
          5.00% 3/1/27 2,160,000 2,410,582
          5.00% 3/1/29 3,525,000 3,861,814
University of Minnesota Special
          Purpose Revenue
          (State Supported Biomed
          Science Research)
          5.00% 8/1/35 1,040,000 1,095,827
          5.00% 8/1/36 4,000,000 4,203,399
Virginia Housing & Redevelopment
          Authority Health Care Facility
          Lease Revenue
          5.25% 10/1/25 680,000 687,460
          5.375% 10/1/30 965,000 976,484
17,693,777
Local General Obligation Bonds – 9.35%
City of Willmar (Rice Memorial
          Hospital Project) Series A
          4.00% 2/1/32 2,940,000 2,928,504
Dakota County Community
          Development Agency (Senior
          Housing Facilities) Series A
          5.00% 1/1/23 1,100,000 1,159,950
Hopkins Independent School District
          No. 270 Series A 5.00% 2/1/28 1,000,000 1,105,800
Rocori Independent School District
          No. 750 (School Building) Series B
          5.00% 2/1/22 1,010,000 1,146,502
          5.00% 2/1/24 1,075,000 1,215,094
          5.00% 2/1/25 1,115,000 1,248,376
          5.00% 2/1/26 1,155,000 1,282,397
St. Paul Independent School District
          No. 625 (School Building) Series B
          5.00% 2/1/22 1,300,000 1,544,907
          5.00% 2/1/26 1,000,000 1,144,660
Thief River Falls Independent School
          District No. 564 (School Building)
          Series A 4.00% 2/1/32 1,160,000 1,166,496
Washington County Housing &
          Redevelopment Authority
          Series B
          5.50% 2/1/22 (NATL-RE) 525,000 526,969
          5.50% 2/1/32 (NATL-RE) 655,000 656,919
15,126,574
§Pre-Refunded/Escrowed to Maturity Bonds – 20.02%
Dakota-Washington Counties
          Housing & Redevelopment
          Authority Revenue (Bloomington
          Single Family Residential Mortgage)
          Series B 8.375% 9/1/21
          (GNMA) (FHA) (VA) (AMT) 7,055,000 9,657,166
Southern Minnesota Municipal
          Power Agency Supply
          Revenue Refunding Series A
          5.75% 1/1/18-13 3,350,000 3,536,059
St. Paul Housing & Redevelopment
          Authority Sales Tax
          (Civic Center Project)
          5.55% 11/1/23 2,300,000 2,489,612
          5.55% 11/1/23 (NATL-RE) (IBC) 4,200,000 4,546,248
St. Paul Port Authority Lease
          Revenue (Robert Street Office
          Building Project) Series 3-11
          5.00% 12/1/27-13 2,000,000 2,016,460
University of Minnesota Hospital &
          Clinics 6.75% 12/1/16 2,580,000 2,952,655
University of Minnesota Series A
          5.50% 7/1/21 4,000,000 4,778,560
          5.75% 7/1/18 2,000,000 2,406,360
32,383,120
Special Tax Revenue Bonds – 7.54%
Guam Government Business
          Privilege Tax Revenue Series A
          5.25% 1/1/36 150,000 154,647
Hennepin County Sales Tax Revenue
          (Second Lien-Ballpark Project)
          Series B 4.75% 12/15/27 1,905,000 2,001,755
Minneapolis Community Planning
          & Economic Development
          Department (Limited Tax
          Supported Common Bond Fund)
          6.25% 12/1/30 1,000,000 1,134,310
          Series 1 5.50% 12/1/24 (AMT) 1,000,000 1,045,320
          Series 5 5.70% 12/1/27 375,000 376,609
Minnesota Public Safety Radio
          5.00% 6/1/23 2,845,000 3,203,384
Puerto Rico Sales Tax Financing Revenue
        ^(Capital Appreciation) Series A
          5.73% 8/1/44 (NATL-RE) 8,480,000 1,144,885
          First Subordinate 6.00% 8/1/42 1,200,000 978,996
          Series C
          5.00% 8/1/40 985,000 833,566
          5.25% 8/1/40 485,000 420,544

(continues)       9



Schedules of investments

Delaware Investments® Minnesota Municipal Income Fund II, Inc.

                Principal      
Amount Value
Municipal Bonds (continued)
Special Tax Revenue Bonds (continued)
St. Paul Port Authority (Brownsfields
          Redevelopment Tax) Series 2
          5.00% 3/1/37 $ 895,000 $ 904,451
  12,198,467
State General Obligation Bonds – 8.29%
Minnesota State Refunding (State
          Various Purpose) Series D  
          5.00% 8/1/24 2,700,000 3,172,932
Minnesota State (State Trunk
          Highway) Series B
          5.00% 10/1/22 5,500,000 6,548,795
          5.00% 10/1/29 3,315,000 3,688,799
13,410,526
Transportation Revenue Bonds – 3.46%
Minneapolis - St. Paul Metropolitan
          Airports Commission Revenue
          5.00% 1/1/22 670,000 768,959
          Series A 5.00% 1/1/35 (AMBAC) 2,000,000 2,008,280
          Series B
          5.00% 1/1/26 540,000 597,186
          5.00% 1/1/27 1,190,000 1,296,446
          5.00% 1/1/30 500,000 531,925
St. Paul Port Authority Revenue
          Refunding (Amherst H
          Wilder Foundation) Series 3
          5.00% 12/1/36 380,000 390,336
5,593,132
Water & Sewer Revenue Bonds – 3.22%
Metropolitan Council Waste
          Water Revenue
          Series B 4.00% 9/1/27 1,145,000 1,182,006
          Series E 5.00% 9/1/21 2,100,000 2,524,579
St. Paul Sewer Revenue Series D
          5.00% 12/1/21 1,325,000 1,501,186
5,207,771
Total Municipal Bonds
(cost $231,270,570) 232,169,242
 
Short-Term Investments – 0.31%
¤Variable Rate Demand Notes – 0.31%
Minneapolis - St. Paul Housing &
          Redevelopment Authority
          Health Care Revenue
          (Allina Health System)
          Series B-2 0.03% 11/15/35 500,000 500,000
Total Short-Term Investments
(cost $500,000) 500,000
Total Value of Securities – 143.85%
(cost $231,770,570) $ 232,669,242

Variable rate security. The rate shown is the rate as of Sept. 30, 2013. Interest rates reset periodically.
§Pre-refunded bonds. Municipal bonds that are generally backed or secured by U.S. Treasury bonds. For pre-refunded bonds, the stated maturity is followed by the year in which the bond is pre-refunded. See Note 6 in “Notes to financial statements.”
^Zero coupon security. The rate shown is the yield at the time of purchase.
¤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. The rate shown is the rate as of Sept. 30, 2013.

Summary of Abbreviations:
AGM — Insured by Assured Guaranty Municipal Corporation
AMBAC — Insured by AMBAC Assurance Corporation
AMT — Subject to Alternative Minimum Tax
ASSURED GTY — Insured by Assured Guaranty Corporation
FHA — Federal Housing Administration
FHLMC — Federal Home Loan Mortgage Corporation collateral
FNMA — Federal National Mortgage Association collateral
GNMA — Government National Mortgage Association collateral
IBC — Insured Bond Certificate
LOC — Letter of Credit
NATL-RE — Insured by National Public Finance Guarantee Corporation
VA — Veterans Administration collateral

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

10



Delaware Investments® National Municipal Income Fund
September 30, 2013 (Unaudited)

                Principal      
Amount Value
Municipal Bonds – 147.89%
Corporate-Backed Revenue Bonds – 15.51%
Buckeye, Ohio Tobacco Settlement
          Financing Authority Asset-Backed
          Senior Turbo Series A-2
          5.875% 6/1/47 $ 480,000 $ 361,526
          6.50% 6/1/47 430,000 352,948
Golden State, California Tobacco
          Securitization Corporate
          Settlement Revenue
          (Asset-Backed Senior Notes)
          Series A-1 5.75% 6/1/47 1,615,000 1,245,714
Harris County, Texas Industrial
          Development Solid Waste
          Disposal Revenue
          (Deer Park Refining Project)
          5.00% 2/1/23 150,000 160,916
Illinois Railsplitter Tobacco Settlement
          Authority 6.25% 6/1/24 500,000 542,760
Louisiana Local Government
          Environmental Facilities &
          Community Development Authority
          (Westlake Chemical)
          Series A 6.50% 8/1/29 645,000 693,053
          Series A-1 6.50% 11/1/35 255,000 271,473
Maryland Economic Development Port
          Facilities Revenue (CNX Marine
          Terminals) 5.75% 9/1/25 260,000 269,815
M-S-R Energy Authority, California Gas
          Series C 7.00% 11/1/34 1,000,000 1,216,550
Navajo County, Arizona Pollution
          Control Revenue (Arizona Public
          Services-Cholla) Series D
          5.75% 6/1/34 500,000 555,100
New Jersey Economic Development
          Authority Special Facilities Revenue
          (Continental Airlines
          Project) 5.25% 9/15/29 (AMT) 500,000 459,410
Ohio State Air Quality Development
          Authority Revenue (First Energy
          Generation) Series A 5.70% 8/1/20 260,000 288,324
Pennsylvania Economic Development
          Financing Authority Exempt
          Facilities Revenue (Allegheny
          Energy Supply) 7.00% 7/15/39 220,000 225,029
Pima County, Arizona Industrial
          Development Authority Pollution
          Control Revenue (Tucson Electric
          Power San Juan) 5.75% 9/1/29 250,000 254,930
Salt Verde Financial, Arizona
          Gas Revenue Senior Note
          5.00% 12/1/37 400,000 394,804
St. John the Baptist Parish, Louisiana
          (Marathon Oil) Series A
          5.125% 6/1/37 500,000 496,235
Suffolk County, New York Tobacco
          Asset Securitization Series B
          5.00% 6/1/32 750,000 733,913
Tobacco Settlement Financing
          Corporation, Louisiana
          Asset-Backed Note Series A
          5.25% 5/15/35 460,000 451,228
Tobacco Settlement Financing
          Corporation, New Jersey Series 1A
          5.00% 6/1/41 500,000 359,500
  9,333,228
Education Revenue Bonds – 25.64%
Arizona Board of Regents System
          Revenue (University of Arizona)
          Series A 5.00% 6/1/39 500,000 521,245
Bowling Green, Ohio Student Housing  
          Revenue (CFP I State University
          Project) 6.00% 6/1/45 260,000 268,910
California Statewide Communities
          Development Authority School
          Facility Revenue (Aspire Public
          Schools) 6.125% 7/1/46 625,000 615,806
California Statewide Communities
          Development Authority Student
          Housing Revenue (Irvine, LLC - UCI
          East Campus) 6.00% 5/15/23 470,000 507,661
          (Lancer Plaza Project)
          5.625% 11/1/33 1,000,000 891,280
Deephaven, Minnesota Charter School
          (Eagle Ridge Academy Project)
          Series A 5.50% 7/1/43 500,000 459,635
Delaware County, Pennsylvania
          Authority (Villanova University)
          5.00% 8/1/20 390,000 450,992
Iowa Higher Education Loan Authority
          Revenue (Private College Facilities)
          5.00% 10/1/38 85,000 80,700
Marietta, Georgia Development
          Authority Revenue (Life University
          Income Project) 7.00% 6/15/39 430,000 439,937
Maryland Health & Higher Educational
          Facilities Authority (Loyola
          University) Series A 5.00% 10/1/39 650,000 663,702
Maryland State Economic
          Development Student Housing
          Revenue (University of
          Maryland College Park Projects)
          5.75% 6/1/33 370,000 378,617
Massachusetts State Health &
          Educational Facilities Authority
          Revenue (Harvard University)
          Series A 5.00% 12/15/29 600,000 659,280
Missouri State Health & Educational
          Facilities Authority Revenue
          (Washington University)
          Series B 5.00% 11/15/30 600,000 663,594

(continues)       11



Schedules of investments

Delaware Investments® National Municipal Income Fund

                Principal      
Amount Value
Municipal Bonds (continued)
Education Revenue Bonds (continued)
Monroe County, New York Industrial
          Development Revenue (Nazareth
          College Rochester Project)
          5.50% 10/1/41 $ 495,000 $ 505,593
Montgomery County, Pennsylvania
          Higher Education & Health
          Authority Revenue (Arcadia
          University) 5.25% 4/1/30 550,000 568,337
New Jersey Economic Development
          Authority Revenue (MSU Student
          Housing Project) 5.875% 6/1/42 735,000 773,801
New York City, New York Trust for
          Cultural Resources (Whitney
          Museum of American Art)
          5.00% 7/1/31 500,000 515,915
New York State Dormitory
          Authority (Columbia University)
          5.00% 10/1/41 600,000 637,362
# Oregon State Facilities Authority
          Revenue (Concordia University
          Project) Series A 144A
          6.125% 9/1/30 135,000 137,074
Pennsylvania State Higher
          Educational Facilities Authority
          Student Housing Revenue
          (Edinboro University Foundation)
          5.80% 7/1/30 400,000 397,420
          (University Properties - East
          Stoudsburg University)
          5.25% 7/1/19 510,000 545,486
Phoenix, Arizona Industrial
          Development Authority Revenue
          (Eagle College Prep Project)
          Series A 5.00% 7/1/43 500,000 425,480
          (Rowan University Project)
          5.00% 6/1/42 1,000,000 979,050
Pima County, Arizona Industrial
          Development Authority Education
          Revenue (Edkey Charter School
          Project) 6.00% 7/1/48 500,000 443,735
Private Colleges & Universities
          Authority Revenue, Georgia
          (Mercer University) Series A
          5.00% 10/1/32 135,000 131,131
St Lawrence County, New York
          Industrial Development Agency
          (St. Lawrence University Project)
          5.00% 7/1/26 270,000 299,851
Swarthmore Borough Authority,
          Pennsylvania (Swarthmore College
          Project) 5.00% 9/15/32 490,000 529,078
Troy, New York Capital Resource
          Revenue (Rensselaer Polytechnic)
          Series A 5.125% 9/1/40 600,000 606,066
University of California Series A1
          5.00% 5/15/32 1,000,000 1,076,709
Wyoming Community Development
          Authority Student Housing
          Revenue (CHF-Wyoming LLC)
          6.50% 7/1/43 250,000 256,800
15,430,247
Electric Revenue Bonds – 2.85%
Puerto Rico Electric Power
          Authority Revenue
          Series TT 5.00% 7/1/26 695,000 520,347
          Series WW 5.50% 7/1/38 200,000 143,454
          Series XX 5.25% 7/1/40 805,000 560,119
South Carolina State Public Service
          Authority Series E 5.00% 12/1/48 500,000 493,875
1,717,795
Healthcare Revenue Bonds – 25.17%
Arizona Health Facilities Authority
          Revenue (Catholic Healthcare
          West) Series D 5.00% 7/1/28 500,000 512,895
Brevard County, Florida Health
          Facilities Authority Revenue (Health
          First Project) 7.00% 4/1/39 90,000 97,734
Butler County, Pennsylvania Hospital
          Authority Revenue (Butler Health
          System Project) 7.125% 7/1/29 450,000 519,966
California Statewide Communities
          Development Authority Revenue
          (Kaiser Permanente)
          Series A 5.00% 4/1/42 1,000,000 1,003,779
Colorado Health Facilities Authority
          (Children's Hospital Project) Series A
          5.00% 12/1/36 1,000,000 1,005,079
Duluth, Minnesota Economic
          Development Authority Revenue
          (St. Luke’s Hospital Authority
          Obligation Group) 5.75% 6/15/32 400,000 394,108
Hawaii Pacific Health Special Purpose
          Revenue Series A 5.50% 7/1/40 300,000 307,359
Illinois Finance Authority Revenue
          (Silver Cross & Medical Centers)
          7.00% 8/15/44 950,000 1,027,310
Koyukuk, Alaska Revenue (Tanana
          Chiefs Conference Health Care
          Facility Project) 7.75% 10/1/41 300,000 318,393
Louisiana Public Facilities Authority
          Revenue (Ochsner Clinic
          Foundation Project) 6.50% 5/15/37 105,000 115,680
Lycoming County, Pennsylvania
          Authority Health System Revenue
          (Susquehanna Health System
          Project) Series A 5.50% 7/1/28 500,000 513,200
Maine Health & Higher Educational
          Facilities Authority Revenue
          (Maine General Medical Center)
          6.75% 7/1/41 300,000 316,602

12



           Principal
      Amount       Value
Municipal Bonds (continued)
Healthcare Revenue Bonds (continued)
Maricopa County, Arizona Industrial
          Development Authority Health
          Facilities Revenue (Catholic
          Healthcare West) Series A  
          6.00% 7/1/39 $ 500,000 $ 529,680
Maryland Health & Higher Educational
          Facilities Authority Revenue (Carroll
          Hospital) Series A 5.00% 7/1/37 340,000 340,092
Monroe County, Pennsylvania
          Hospital Authority Revenue  
          (Pocono Medical Center) Series A
          5.00% 1/1/41 500,000 488,680
Montgomery County, Pennsylvania
          Industrial Development Authority
          Revenue (Mortgage - Whitemarsh
          Continuing Care) 6.25% 2/1/35 675,000   657,113
  New Hampshire Health & Education
          Facilities Authority Revenue  
          (Dartmouth-Hitchcock Medical
          Center) 6.00% 8/1/38 300,000 324,690
New Jersey Health Care Facilities  
          Financing Authority Revenue
          (St. Peters University Hospital)  
          6.25% 7/1/35 300,000 300,054
New Mexico State Hospital Equipment  
          Loan Council Revenue (Presbyterian
          Healthcare) 5.00% 8/1/39   500,000 503,235
New York State Dormitory Authority
          Revenue Non State Supported
          Debt (Orange Regional Medical
          Center) 6.25% 12/1/37 500,000 499,325
Ohio State Hospital Facilities Revenue
          (Cleveland Clinic Health) Series A
          5.50% 1/1/39 300,000 325,875
Orange County, Florida Health
          Facilities Authority Revenue
          (Mayflower Retirement Center)
          5.00% 6/1/32 400,000 391,188
          5.00% 6/1/36 250,000 241,273
          5.125% 6/1/42 750,000 725,880
Oregon Health & Science University
          Series E 4.00% 7/1/29 800,000 772,696
Philadelphia, Pennsylvania Hospitals &
          Higher Education Facilities Authority
          Revenue (Temple University Health
          System) Series A 5.50% 7/1/30 300,000 270,186
St. Cloud, Minnesota Health Care
          Revenue (Centracare Health System
          Project) Series A 5.125% 5/1/30 740,000 780,744
University Medical Center, Tuscon,
          Arizona Hospital Revenue
          6.50% 7/1/39 500,000 538,730
West Virginia Hospital Finance
          Authority Revenue (Highland
          Hospital Obligation Group)
          9.125% 10/1/41 500,000 600,735
Yavapai County, Arizona Industrial
          Development Authority Revenue
          (Yavapai Regional Medical Center)
          Series A 5.00% 8/1/28 720,000 723,010
15,145,291
Housing Revenue Bonds – 2.56%
California Municipal Finance Authority
          Mobile Home Park Revenue
          (Caritas Projects) Series A
          5.50% 8/15/47 750,000 731,948
          6.40% 8/15/45 430,000 445,850
Florida Housing Finance Homeowner
          Mortgage Revenue Series 2
          5.90% 7/1/29 (NATL-RE) (AMT) 175,000 176,272
Puerto Rico Housing Finance Authority
          (Subordinated-Capital Fund
          Modernization) 5.50% 12/1/18 (HUD) 175,000 187,418
1,541,488
Lease Revenue Bonds – 15.50%
California State Public Works Board
          Lease Revenue (Various Capital
          Projects) Series A 5.00% 4/1/37 1,000,000 1,011,740
Hudson Yards, New York Infrastructure
          Revenue Series A 5.75% 2/15/47 1,100,000 1,165,901
Idaho State Building Authority
          Revenue (Health & Welfare Project)
          Series A 5.00% 9/1/24 135,000 157,873
          (State Police) Series I 5.00% 9/1/23 760,000 890,978
Minnesota State General Revenue
          Appropriations Series B
          5.00% 3/1/29 2,000,000 2,191,100
New Jersey Economic Development
          Authority (School Facilities
          Construction) Series EE
          5.00% 9/1/18 100,000 114,541
New York City, New York Industrial
          Development Agency (Senior Trips)
          Series A 5.00% 7/1/28 (AMT) 250,000 229,633
New York Liberty Development
          Revenue (World Trade Center
          Project) 5.75% 11/15/51 970,000 1,037,396
Pima County, Arizona Industrial
          Development Authority Metro
          Police Facility Revenue
          (Nevada Project) Series A
          5.25% 7/1/31 500,000 511,910
          5.375% 7/1/39 500,000 513,380
Public Finance Authority,
          Wisconsin Airport Facilities
          (AFCO Investors II Portfolio)
          5.75% 10/1/31 (AMT) 500,000 451,475
San Jose, California Financing
          Authority Series A 5.00% 6/1/28   500,000 534,775

(continues)       13



Schedules of investments

Delaware Investments® National Municipal Income Fund

           Principal
      Amount       Value
Municipal Bonds (continued)
Lease Revenue Bonds (continued)
Ventura County, California Public
          Financing Authority Series A
          5.00% 11/1/32 $ 500,000 $ 517,700
9,328,402
Local General Obligation Bonds – 2.52%
Gila County, Arizona Unified School
            District No. 10 (Payson School
          Improvement Project of 2006)
          Series A 5.25% 7/1/27 (AMBAC) 500,000 541,879
New York City, New York
          Series A-1 5.25% 8/15/21 250,000 285,828
          Series I-1 5.375% 4/1/36 250,000 275,895
Ramapo Local Development,
          New York Revenue Guaranteed
          5.00% 3/15/33 60,000 61,223
Ramsey County, Minnesota
          Capital Improvement Series B  
          5.00% 2/1/18 300,000 349,098
  1,513,923
Special Tax Revenue Bonds – 23.83%
Anne Arundel County, Maryland
          Special Obligation Revenue
          (National Business Park - North
          Project) 6.10% 7/1/40 200,000 205,874
Brooklyn Arena Local Development,
          New York Pilot Revenue (Barclays
          Center Project)
          6.25% 7/15/40 940,000   986,135
          6.50% 7/15/30 300,000 326,199
California State Economic Recovery
          Series A 5.25% 7/1/21 260,000 303,828
California Statewide Communities  
          Development Authority Revenue  
          (Statewide Inland Regional Center  
          Project) 5.375% 12/1/37 500,000 506,845
Guam Government Business Privilege
          Tax Revenue
          Series A 5.00% 1/1/22 775,000 881,462
          Series B-1 5.00% 1/1/42 980,000 981,891
Louisiana Stadium & Exposition
          District Senior Series A
          5.00% 7/1/36 415,000 417,195
Massachusetts Bay Transportation
          Authority Senior Series A
          5.25% 7/1/29 200,000 228,870
Miami-Dade County, Florida
          Special Obligation (Capital
          Appreciation & Income) Series B
          5.00% 10/1/35 (NAT-RE) 1,000,000 1,001,980
Mosaic District, Virginia Community
          Development Authority Revenue
          Series A 6.875% 3/1/36 520,000 574,293
New Jersey Economic Development
          Authority Revenue
          5.00% 6/15/28 200,000 201,812
          5.00% 6/15/29 800,000 795,640
New York City, New York Industrial
          Development Agency Civic Facility
          Revenue (YMCA of Greater New
          York Project) 5.00% 8/1/36 1,000,000 1,008,340
New York State Dormitory Authority
          (State Personal Income Tax
          Revenue-Education) Series A
          5.00% 3/15/38 570,000 589,500
Peoria, Arizona Municipal
          Development Authority Sales Tax &
          Excise Shared Revenue (Senior Lien
          & Subordinate Lien) 5.00% 1/1/18 1,085,000 1,230,792
Puerto Rico Sales Tax
          Financing Revenue
          Series C 5.00% 8/1/22 530,000 551,921
          Series C 5.00% 8/1/40 600,000 507,756
          First Subordinate
          Series A 6.00% 8/1/42 245,000 199,878
          Series C 6.00% 8/1/39 300,000 246,579
        Ω(Convertible Capital Appreciation
          Bonds) Series A 6.75% 8/1/32 220,000 163,834
Regional Transportation District,
          Colorado Tax Revenue
          (Denver Transit Partners)
          6.00% 1/15/41 500,000 503,965
          (FasTracks Project) Series A
          5.00% 11/1/26 500,000 568,765
San Mateo, California Special Tax
          Community Facilities District
          No. 2008-1 (Bay Meadows)
          6.00% 9/1/42 95,000 98,920
Virginia Public Building Authority
          Series A 5.00% 8/1/26 1,000,000 1,119,070
^ Wyandotte County, Kansas City,
          Kansas Unified Government
          Special Obligation Revenue (Capital
          Appreciation) Sales Tax Subordinate
          Lien Series B 6.07% 6/1/21 205,000 136,811
14,338,155
State General Obligation Bonds – 4.56%
California State Various Purposes
          5.00% 10/1/41 440,000 450,490
          5.25% 11/1/40 320,000 334,410
          6.00% 4/1/38 105,000 119,783
New York State Series A
          5.00% 2/15/39 300,000 318,300
Oregon State Series K 5.00% 5/1/22 1,275,000 1,523,956
2,746,939

14



           Principal
      Amount       Value
Municipal Bonds (continued)
Transportation Revenue Bonds – 22.63%
Bay Area, California Toll Authority
          Revenue (San Francisco Bay Area)
          5.00% 4/1/27 $ 750,000 $ 835,335
Central Texas Regional Mobility
          Authority Revenue Senior Lien
          6.00% 1/1/41 520,000 526,646
Dallas/Fort Worth, Texas International
          Airport Series G 5.00% 11/1/33 1,000,000 1,022,700
Grand Parkway Transportation
          Subordinate Tier Toll Revenue
          Series B 5.00% 4/1/53 460,000 451,444
Harris County, Texas Metropolitan
          Transit Authority Series A
          5.00% 11/1/24 500,000   566,955
Maryland State Economic  
          Development Revenue
            (Transportation Facilities Project)
          Series A 5.75% 6/1/35 255,000 257,690
Metropolitan Transportation
          Authority, New York
          Series A 5.00% 11/15/41   500,000 506,635
          Series C 5.00% 11/15/30 500,000 517,910
Metropolitan Washington D.C.  
          Airports Authority Dulles Toll Road
          Revenue (First Senior Lien)
          Series A 5.25% 10/1/44 245,000 248,396
New Jersey State Turnpike Authority
          Revenue Series A 5.00% 1/1/27   1,000,000 1,082,390
New Jersey Transportation Trust
          Fund Authority
          Series A 5.00% 6/15/42 110,000 111,935
          (Transportation Program) Series AA
          5.00% 6/15/44 340,000 345,732
New York Liberty Development
          Revenue (1 World Trade Center
          Port Authority Construction)
          5.00% 12/15/41 500,000 514,200
North Texas Tollway Authority
          Special Projects System Series A
          5.00% 9/1/20 250,000 293,408
Pennsylvania Turnpike Commission
          Subordinate (Special Motor
          License Foundation)
          5.00% 12/1/22 500,000 564,540
          Series B 5.00% 12/1/41 500,000 509,030
Port Authority of New York &
          New Jersey Special Project (JFK
          International Air Terminal)
          6.00% 12/1/42 230,000 247,135
          6.50% 12/1/28 500,000 525,255
St. Louis, Missouri Airport Revenue
          (Lambert St. Louis International)
          5.00% 7/1/32 (AMT) 1,000,000 978,490
          Series A-1 6.625% 7/1/34 325,000 363,474
Texas Private Activity Bond Surface
          Transportation Corporate Senior
          Lien Revenue (LBJ Infrastructure)
          7.00% 6/30/40 285,000 315,395
          7.50% 6/30/33 665,000 762,868
          (NTE Mobility Partners)
          6.75% 6/30/43 (AMT) 225,000 234,221
          6.875% 12/31/39 1,000,000 1,090,519
          7.00% 12/31/38 (AMT) 165,000 174,786
          7.50% 12/31/31 500,000 568,920
  13,616,009
Water & Sewer Revenue Bonds – 7.12%
Atlanta, Georgia Water & Wastewater
          Revenue Series A 6.25% 11/1/39 950,000 1,085,803
Los Angeles, California Wastewater
          System Revenue Series A
          5.00% 6/1/27 500,000 562,800
New York City, New York Municipal
          Water Finance Authority (Second
          Generation Resolution) Fiscal 2012
          Series BB 5.25% 6/15/44 525,000 554,321
Phoenix, Arizona Civic Improvement
          Wastewater Systems Revenue
          (Junior Lien) Series A
          5.00% 7/1/39 900,000 935,937
San Francisco, California City &
          County Public Utilities Commission
          Water Revenue Series F
          5.00% 11/1/27 500,000 552,705
Texas State Series C 5.00% 8/1/22 500,000 593,395
  4,284,961
Total Municipal Bonds
(cost $89,110,737) 88,996,438
 
Short-Term Investments – 1.64%
¤Variable Rate Demand Notes – 1.64%
Louisiana Public Facilities Authority
          0.02% 12/1/43 500,000 500,000
Saint Paul, Minnesota Port Authority
          0.07% 2/1/28 485,000 485,000
Total Short-Term Investments
(cost $985,000) 985,000
Total Value of Securities – 149.53%
(cost $90,095,737) $ 89,981,438

(continues)       15



Schedules of investments

Delaware Investments® National Municipal Income Fund

   
Variable rate security. The rate shown is the rate as of Sept. 30, 2013. Interest rates reset periodically.
# Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended. At Sept. 30, 2013, the aggregate value of Rule 144A securities was $137,074, which represented 0.23% of the Fund’s net assets. See Note 6 in “Notes to financial statements.”
Ω Step coupon bond. Indicates security that has a zero coupon that remains in effect until a predetermined date at which time the stated interest rate becomes effective.
^ Zero coupon security. The rate shown is the yield at the time of purchase.
¤ 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. The rate shown is the rate as of Sept. 30, 2013.

Summary of Abbreviations:
AMBAC — Insured by AMBAC Assurance Corporation
AMT — Subject to Alternative Minimum Tax
HUD — Housing & Urban Development Section 8
NATL-RE — Insured by National Public Finance Guarantee Corporation

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

16



Statements of assets and liabilities

Delaware Investments® Closed-End Municipal Bond Funds
September 30, 2013 (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 $ 96,016,321 $ 232,169,242 $ 88,996,438
       Short-term investments, at value2 250,000 500,000 985,000
       Cash 2,775,775 373,902 139,152
       Interest income receivable 1,320,713 3,500,914 1,311,114
       Receivable for securities sold 210,116 529,562 216,222
       Offering cost for preferred shareholders 177,426 317,447 247,617
       Total assets 100,750,351 237,391,067 91,895,543
 
Liabilities:
       Liquidation value of preferred stock 30,000,000 75,000,000 30,000,000
       Payable for securities purchased 3,188,852 512,598 1,645,088
       Investment management fees payable 31,622 76,863 29,212
       Directors’/Trustees’ fees payable 190 457 169
       Other affiliates payable 2,824 6,032 4,225
       Other accrued expenses 37,969 55,661 40,553
       Total liabilities 33,261,457 75,651,611 31,719,247
 
Total Net Assets Applicable to Common Shareholders $ 67,488,894 $ 161,739,456 $ 60,176,296
 
Net Assets Applicable to Common Shareholders Consist of:
       Paid-in capital ($0.01 par value)3,4 $ 66,918,121 $ 157,931,075 $ 60,617,476
       Undistributed net investment income 1,051,041 1,621,143 1,036,659
       Accumulated net realized gain (loss) on investments (478,569 ) 1,288,566 (1,363,629 )
       Net unrealized appreciation (depreciation) of investments (1,699 ) 898,672 (114,210 )
Total Net Assets Applicable to Common Shareholders $ 67,488,894 $ 161,739,456 $ 60,176,296
 
Net Asset Value per Common Share $ 13.95 $ 14.06 $ 13.29
 
1Investments, at cost $ 96,018,020 $ 231,270,570 $ 89,110,737
2Short-term investments, at cost 250,000 500,000 985,000
3Common shares outstanding 4,837,100 11,504,975 4,528,443
4Common shares authorized 200 million 200 million unlimited

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

17



Statements of operations

Delaware Investments® Closed-End Municipal Bond Funds
Six Months Ended September 30, 2013 (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 $ 2,243,217 $ 5,036,353 $ 2,120,242
 
Expenses:
       Management fees 201,689 485,271 187,536
       Rating agency fees 23,814 20,828 469
       Offering cost 20,143 42,586 27,602
       Accounting and administration expenses 19,542 47,018 18,170
       Audit and tax 14,608 14,973 18,393
       Dividend disbursing and transfer agent fees and expenses 12,938 32,868 15,794
       Reports and statements to shareholders 8,203 16,333 643
       Legal fees 6,884 23,033 9,148
       Pricing fees 4,489 8,128 9,223
       Taxes (Pennsylvania franchise tax) 4,000 6,957
       Stock exchange fees 2,375 5,307
       Directors’/Trustees’ fees 1,711 4,044 1,544
       Dues and services 942 2,232 856
       Insurance 707 1,499 616
       Custodian fees 659 1,439 812
       Registration fees 398 398 398
       Consulting fees 293 664 264
       Directors’/Trustees’ expenses 109 259 100
       Total operating expenses 323,504 713,837 291,568
Net Investment Income 1,919,713 4,322,516 1,828,674
 
Net Realized and Unrealized Loss:
       Net realized loss on investments (377,387 ) (340,474 ) (783,719 )
       Net change in unrealized appreciation (depreciation) of investments (6,537,147 ) (13,410,958 ) (6,963,159 )
Net Realized and Unrealized Loss (6,914,534 ) (13,751,432 ) (7,746,878 )
 
Dividends and Distributions to Preferred Shareholders (196,123 ) (491,632 ) (196,622 )
Net Decrease in Net Assets Resulting from Operations $ (5,190,944 ) $ (9,920,548 ) $ (6,114,826 )

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

18



Statements of changes in net assets

Delaware Investments® Closed-End Municipal Bond Funds

Delaware Investments Delaware Investments
Colorado Municipal Minnesota Municipal
Income Fund, Inc. Income Fund II, Inc.
      Six Months             Six Months      
Ended Year Ended Ended Year Ended
9/30/13 3/31/13 9/30/13 3/31/13
(Unaudited) (Unaudited)
Increase (Decrease) in Net Assets from Operations:
       Net investment income $ 1,919,713 $ 3,957,947 $ 4,322,516 $ 9,247,679
       Net realized gain (loss) (377,387 ) 89,037 (340,474 ) 2,208,718
       Net change in unrealized appreciation (depreciation) (6,537,147 ) 1,916,263 (13,410,958 ) 1,762,327
       Dividends and distributions to preferred shareholders (196,123 ) (411,526 ) (491,632 ) (1,025,435 )
       Net increase (decrease) in net assets applicable to common shareholders
              resulting from operations (5,190,944 ) 5,551,721 (9,920,548 ) 12,193,289
 
Dividends and Distributions to Common Shareholders from:
       Net investment income (1,668,800 ) (3,337,599 ) (3,969,216 ) (7,938,433 )
       Net realized gain (478,873 ) (460,199 )
  (1,668,800 ) (3,816,472 ) (3,969,216 ) (8,398,632 )
 
Net Increase (Decrease) in Net Assets Applicable to
       Common Shareholders (6,859,744 ) 1,735,249 (13,889,764 ) 3,794,657
 
Net Assets Applicable to Common Shareholders:
       Beginning of period 74,348,638 72,613,389 175,629,220 171,834,563
       End of period $ 67,488,894 $ 74,348,638 $ 161,739,456 $ 175,629,220
                                 
       Undistributed net investment income $ 1,051,041 $ 800,128 $ 1,621,143 $ 1,759,475

Delaware Investments
National Municipal
Income Fund
      Six Months      
Ended Year Ended
9/30/13 3/31/13
(Unaudited)
Increase (Decrease) in Net Assets from Operations:
       Net investment income $ 1,828,674 $ 3,678,465
       Net realized gain (loss) (783,719 ) 1,281,216
       Net change in unrealized appreciation (depreciation) (6,963,159 ) 2,597,893
       Dividends and distributions to preferred shareholders (196,622 ) (406,627 )
       Net increase (decrease) in net assets applicable to common shareholders
              resulting from operations (6,114,826 ) 7,150,947
 
Dividends and Distributions to Common Shareholders from:
       Net investment income (1,584,955 ) (2,762,350 )
       Net realized gain
  (1,584,955 ) (2,762,350 )
 
Net Increase (Decrease) in Net Assets Applicable to
       Common Shareholders (7,699,781 ) 4,388,597
 
Net Assets Applicable to Common Shareholders:
       Beginning of period 67,876,077 63,487,480
       End of period $ 60,176,296 $ 67,876,077
                 
       Undistributed net investment income $ 1,036,659 $ 792,940

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

19



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 Year Ended
9/30/131           3/31/13      3/31/12      3/31/11      3/31/10      3/31/09     
(Unaudited)
Net asset value, beginning of period $15.370 $15.010 $13.370 $13.990 $13.220 $14.260
 
Income (loss) from investment operations:
Net investment income 0.396 0.818 0.669 0.601 0.607 0.755
Net realized and unrealized gain (loss) (1.430 ) 0.416 1.582 (0.651 ) 0.733 (0.965 )
Dividends and distributions on preferred stock from:
       Net investment income (0.041 ) (0.085 ) (0.031 ) (0.173 )
Total dividends and distributions on preferred stock (0.041 ) (0.085 ) (0.031 ) (0.173 )
Total from investment operations (1.075 ) 1.149 2.220 (0.050 ) 1.340 (0.383 )
 
Less dividends and distributions to common shareholders from:
Net investment income (0.345 ) (0.690 ) (0.580 ) (0.570 ) (0.570 ) (0.657 )
Net realized gain (0.099 )
Total dividends and distributions (0.345 ) (0.789 ) (0.580 ) (0.570 ) (0.570 ) (0.657 )
 
Net asset value, end of period $13.950 $15.370 $15.010 $13.370 $13.990 $13.220
 
Market value, end of period $12.650 $14.840 $14.600 $12.450 $13.390 $11.240
 
Total investment return based on:2
Market value (12.56% ) 6.92% 22.41% (3.00% ) 24.49% (21.63% )
Net asset value (6.90% ) 7.71% 17.19% (0.30% ) 10.55% (2.66% )
 
Ratios and supplemental data:
Net assets applicable to common shares, end of period (000 omitted) $67,489 $74,349 $72,613 $64,689 $67,651 $63,952
Ratio of expenses to average net assets applicable to common shares3 0.91% 0.89% 0.73% 0.56% 0.56% 0.91%
Ratio of net investment income to average net assets
       applicable to common shares3 5.42% 5.27% 4.68% 4.31% 4.41% 5.55%
Ratio of net investment income to average net assets
       applicable to common shares net of dividends to preferred shares4 4.86% 4.72% 4.46% 4.31% 4.41% 4.28%
Portfolio turnover 11% 8% 64% 10% 20% 16%
  
Leverage analysis:
Value of preferred shares outstanding (000 omitted)5 $30,000 $30,000 $30,000 $— $— $—
Net asset coverage per share of preferred shares, end of period5 $324,963 $347,829 $342,045 $— $— $—
Liquidation value per share of preferred shares5,6 $100,000 $100,000 $100,000 $— $— $—

1 Ratios have been annualized and total return and portfolio turnover have not been annualized.
2 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.
3 Ratios do not reflect the effect of dividend payments to preferred shareholders, if applicable.
4 Ratio reflects total net investment income less dividends paid to preferred shareholders, if applicable, divided by average net assets applicable to common shareholders.
5 In November 2011, the Fund issued a new series of 300 variable rate preferred shares, with a liquidation preference of $100,000 per share.
6 Excluding any accumulated but unpaid dividends.

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

20



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 Year Ended
9/30/131           3/31/13      3/31/12      3/31/11      3/31/10      3/31/09     
(Unaudited)
Net asset value, beginning of period $15.270 $14.940 $13.700 $14.060 $13.140 $14.190
 
Income (loss) from investment operations:
Net investment income 0.374 0.804 0.673 0.612 0.602 0.776
Net realized and unrealized gain (loss) (1.196 ) 0.345 1.180 (0.402 ) 0.888 (1.013 )
Dividends and distributions on preferred stock from:
       Net investment income (0.043 ) (0.089 ) (0.033 ) (0.175 )
Total dividends and distributions on preferred stock (0.043 ) (0.089 ) (0.033 ) (0.175 )
Total from investment operations (0.865 ) 1.060 1.820 0.210 1.490 (0.412 )
 
Less dividends and distributions to common shareholders from:
Net investment income (0.345 ) (0.690 ) (0.580 ) (0.570 ) (0.570 ) (0.638 )
Net realized gain (0.040 )
Total dividends and distributions (0.345 ) (0.730 ) (0.580 ) (0.570 ) (0.570 ) (0.638 )
 
Net asset value, end of period $14.060 $15.270 $14.940 $13.700 $14.060 $13.140
 
Market value, end of period $12.880 $15.630 $14.230 $12.600 $12.740 $11.250
 
Total investment return based on:2
Market value (15.46% ) 15.18% 17.95% 3.32% 18.58% (11.91% )
Net asset value (5.54% ) 7.18% 13.90% 1.80% 12.04% (2.48% )
 
Ratios and supplemental data:
Net assets applicable to common shares, end of period (000 omitted) $161,739 $175,629 $171,835 $157,655 $161,723 $151,184
Ratio of expenses to average net assets applicable to common shares3,5 0.85% 0.82% 0.70% 0.56% 0.56% 0.98%
Ratio of net investment income to average net assets
       applicable to common shares3 5.14% 5.23% 4.67% 4.35% 4.36% 5.74%
Ratio of net investment income to average net assets
       applicable to common shares net of dividends to preferred shares4 4.56% 4.65% 4.44% 4.35% 4.36% 4.45%
Portfolio turnover 7% 24% 44% 9% 19% 15%
 
Leverage analysis:
Value of preferred shares outstanding (000 omitted)6 $75,000 $75,000 $75,000 $— $— $—
Net asset coverage per share of preferred shares, end of period6 $315,653 $334,172 $329,113 $— $— $—
Liquidation value per share of preferred shares6,7 $100,000 $100,000 $100,000 $— $— $—

1 Ratios have been annualized and total return and portfolio turnover have not been annualized.
2 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.
3 Ratios do not reflect the effect of dividend payments to preferred shareholders, if applicable.
4 Ratio reflects total net investment income less dividends paid to preferred shareholders, if applicable, divided by average net assets applicable to common shareholders.
5 The ratio of expenses to average net assets applicable to common shares includes interest and related expenses which include, but are not limited to, interest expense, remarketing fees, liquidity fees, and trustees’ fees in connection with the Fund’s participation in inverse floater programs for the year ended March 31, 2009. See Notes 1 and 6 in “Notes of financial statements.”
6 In November 2011, the Fund issued a new series of 750 variable rate preferred shares, with a liquidation preference of $100,000 per share.
7 Excluding any accumulated but unpaid dividends.

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

(continues)       21



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           Year Ended
9/30/131 3/31/13      3/31/12      3/31/11      3/31/10      3/31/09     
(Unaudited)
Net asset value, beginning of period $14.990 $14.020 $12.620 $13.070 $11.960 $13.360
 
Income (loss) from investment operations:
Net investment income 0.403 0.812 0.535 0.610 0.571 0.704
Net realized and unrealized gain (loss) (1.710 ) 0.858 1.409 (0.532 ) 1.049 (1.367 )
Dividends and distributions on preferred stock from:
       Net investment income (0.043 ) (0.090 ) (0.004 ) (0.172 )
Total dividends and distributions on preferred stock (0.043 ) (0.090 ) (0.004 ) (0.172 )
Total from investment operations (1.350 ) 1.580 1.940 0.078 1.620 (0.835 )
 
Less dividends and distributions to common shareholders from:
Net investment income (0.350 ) (0.610 ) (0.540 ) (0.528 ) (0.510 ) (0.565 )
Total dividends and distributions (0.350 ) (0.610 ) (0.540 ) (0.528 ) (0.510 ) (0.565 )
 
Net asset value, end of period $13.290 $14.990 $14.020 $12.620 $13.070 $11.960
 
Market value, end of period $11.900 $14.480 $13.240 $12.200 $12.140 $10.850
 
Total investment return based on:2
Market value (15.51% ) 14.12% 13.19% 4.78% 16.69% (4.31% )
Net asset value (8.85% ) 11.56% 15.87% 0.67% 13.97% (5.65% )
 
Ratios and supplemental data:
Net assets applicable to common shares, end of period (000 omitted) $60,176 $67,876 $63,487 $30,559 $31,650 $28,967
Ratio of expenses to average net assets applicable to common shares3 0.92% 0.96% 0.99% 0.65% 0.63% 1.06%
Ratio of net investment income to average net assets
       applicable to common shares3 5.74% 5.46% 3.99% 4.64% 4.48% 5.63%
Ratio of net investment income to average net assets
       applicable to common shares net of dividends to preferred shares4 5.13% 4.86% 3.96% 4.64% 4.48% 4.25%
Portfolio turnover 21% 42% 101% 50% 69% 36%
 
Leverage analysis:
Value of preferred shares outstanding (000 omitted)5 $30,000 $30,000 $30,000 $— $— $—
Net asset coverage per share of preferred shares, end of period5 $300,588 $326,254 $311,625 $— $— $—
Liquidation value per share of preferred shares5,6 $100,000 $100,000 $100,000 $— $— $—

1 Ratios have been annualized and total return and portfolio turnover have not been annualized.
2 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.
3 Ratios do not reflect the effect of dividend payments to preferred shareholders, if applicable.
4 Ratio reflects total net investment income less dividends paid to preferred shareholders, if applicable, divided by average net assets applicable to common shareholders.
5 In March 2012, the Fund issued a new series of 300 variable rate preferred shares, with a liquidation preference of $100,000 per share.
6 Excluding any accumulated but unpaid dividends.

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

22



Notes to financial statements

Delaware Investments® Closed-End Municipal Bond Funds
September 30, 2013 (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 New York Stock Exchange MKT, the successor to the American Stock Exchange.

The investment objective of each of the 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 the 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 seek 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. The 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

The following accounting policies are in accordance with U.S. generally accepted accounting principles (U.S. 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.

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 for all open federal income tax years (March 31, 2010–March 31, 2013), and has concluded that no provision for federal income tax is required in each Fund’s financial statements.

Interest and Related Expenses — Interest and related expenses include, but are not limited to, interest expense, remarketing fees, liquidity fees, and trustees’ fees from the Funds’ participation in inverse floater programs where a Fund has transferred its own bonds to a trust that issues floating rate securities with an aggregate principal amount equal to the principal of the transferred bonds. In conveyance of the bond, the Funds receive the inverse floating rate securities and cash from the trust. As a result of certain rights retained by the Funds, the transfer of the bond is not considered a sale, but rather a form of financing for accounting purposes whereby the cash received is recorded as a liability and interest expense is recorded based on the interest rate of the floating rate securities. Remarketing fees, liquidity fees, and trustees’ expenses are recorded on the accrual basis. There were no interest and related expenses for the six months ended Sept. 30, 2013.

Use of Estimates — The preparation of financial statements in conformity with U.S. 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 Investments® Family of Funds are generally allocated among such funds on the basis of average net assets. Management fees and some 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 amortized to interest income over the lives of the respective securities using the effective interest method. Each Fund declares and pays 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 may receive earnings credits from its custodian when positive cash balances are maintained, which are used to offset custody fees. There were no earnings credits for the six months ended Sept. 30, 2013.

(continues)       23



Notes to financial statements

Delaware Investments® Closed-End Municipal Bond Funds

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 Delaware 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 Service Company, Inc. (DSC), an affiliate of DMC, provides fund accounting and financial administration oversight services to each Fund. For these services, the Funds pay DSC fees based on the aggregate daily net assets of the Delaware Investments® Family of Funds at the following annual rate: 0.0050% of the first $30 billion; 0.0045% of the next $10 billion; 0.0040% of the next $10 billion; and 0.0025% of aggregate average daily net assets in excess of $50 billion. The fees payable to DSC under the service agreement described above are allocated among all funds in the Delaware Investments Family of Funds on a relative net asset value basis. For the six months ended Sept. 30, 2013, each Fund was charged for these services as follows:

Colorado Minnesota National
          Municipal                           Municipal                           Municipal          
Fund Fund II Fund
  $2,442 $5,875 $2,270

As provided in the investment management agreement, each Fund bears the cost of certain legal services, including internal legal services provided to each Fund by DMC and/or its affiliates’ employees. For the six months ended Sept. 30, 2013, each Fund was charged for internal legal services provided by DMC and/or its affiliates’ employees as follows:

Colorado Minnesota National
          Municipal                           Municipal                           Municipal          
Fund Fund II Fund
  $4,934 $16,150 $6,010

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

3. Investments

For the six months ended Sept. 30, 2013, each Fund made purchases and sales of investment securities other than short-term investments as follows:

Colorado Minnesota National
                Municipal                           Municipal                           Municipal          
Fund Fund II Fund
Purchases $10,882,366 $17,325,401 $19,386,844
Sales   10,421,799   17,128,223   19,911,727

At Sept. 30, 2013, the cost of investments for federal income tax purposes has been estimated since final tax characteristics cannot be determined until fiscal year end. At Sept. 30, 2013 the cost of investments and unrealized appreciation (depreciation) for each Fund were as follows:

      Colorado Minnesota National
Municipal             Municipal Municipal
Fund       Fund II                   Fund
Cost of investments $ 96,518,020 $ 231,770,570 $ 90,119,242      
Aggregate unrealized appreciation $ 2,648,484 $ 7,361,889 $ 2,401,398
Aggregate unrealized depreciation (2,650,183 ) (6,463,217 ) (2,539,113 )
Net unrealized appreciation (depreciation) $ (1,699 ) $ 898,672 $ (137,715 )

For federal income tax purposes, capital loss carryforwards may be carried forward and applied against future capital gains. Capital loss carryforwards remaining at March 31, 2013 will expire as follows:

Colorado Minnesota National
          Municipal                           Municipal                           Municipal          
Year of Expiration   Fund Fund II Fund
2018 $— $— $407,888

On Dec. 22, 2010, the Regulated Investment Company Modernization Act of 2010 (Act) was enacted, which changed various technical rules governing the tax treatment of regulated investment companies. The changes were generally effective for taxable years beginning after the date of enactment. Under the Act, the Funds are permitted to carry forward capital losses incurred in taxable years beginning after the date of enactment for an unlimited period.

24



However, any losses incurred during those future taxable years will be required to be utilized prior to the losses incurred in pre-enactment taxable years, which carry an expiration date. As a result of this ordering rule, pre-enactment capital loss carryforwards may be more likely to expire unused. Additionally, post-enactment capital loss carryforwards will retain their character as either short-term or long-term capital losses rather than being considered all short-term as permitted under previous regulation.

U.S. 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 developed 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.

Level 1 –  inputs are quoted prices in active markets for identical investments (e.g., equity securities, open-end investment companies, futures contracts, 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) (e.g., debt securities, government securities, swap contracts, foreign currency exchange contracts, foreign securities utilizing international fair value pricing, broker-quoted securities, fair valued securities)
 
Level 3 – inputs are significant unobservable inputs (including each Fund’s own assumptions used to determine the fair value of investments) (e.g., broker-quoted securities, 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, 2013:

Colorado Municipal Fund
Level 2
Municipal Bonds $ 96,016,321
Short-Term Investments   250,000
Total $ 96,266,321
 
Minnesota Municipal Fund II
Level 2
Municipal Bonds $ 232,169,242
Short-Term Investments 500,000
Total            $ 232,669,242           
 
National Municipal Fund
  Level 2
Municipal Bonds $ 88,996,438
Short-Term Investments 985,000
Total $ 89,981,438

During the six months ended Sept. 30, 2013, there were no transfers between Level 1 investments, Level 2 investments or Level 3 investments that had a material impact to each Fund. Each Fund’s policy is to recognize transfers between levels at the beginning of the reporting period.

(continues)       25



Notes to financial statements

Delaware Investments® Closed-End Municipal Bond Funds

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. The Funds did not repurchase any shares under the Share Repurchase Program during the six months ended Sept. 30, 2013. Shares issuable under each Fund’s dividend reinvestment plan are purchased by each Fund’s transfer agent, Computershare, Inc., in the open market.

On Nov. 15, 2011, Delaware Investments Colorado Municipal Income Fund, Inc. (VCF) and Delaware Investments Minnesota Municipal Income Fund II, Inc. (VMM), issued $30,000,000 and $75,000,000, respectively, of Series 2016 Variable Rate MuniFund Term Preferred (VMTP) Shares, with $100,000 liquidation value per share in a privately negotiated offering. On March 15, 2012, Delaware Investments National Municipal Income Fund (National Municipal Fund) issued $30,000,000 Series 2017 VMTP Shares, with $100,000 liquidation value per share in a privately negotiated offering. Proceeds from the issuance of VMTP Shares, net of offering expenses, were invested in accordance with each Fund’s investment objective. The VMTP Shares were offered to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933.

Colorado Municipal Fund and Minnesota Municipal Fund II are obligated to redeem their VMTP Shares on Dec. 1, 2016, unless earlier redeemed or repurchased by the Fund. National Municipal Fund is obligated to redeem its VMTP Shares on April 1, 2017, unless earlier redeemed or repurchased by the Fund. VMTP Shares are subject to optional and mandatory redemption in certain circumstances. The VMTP Shares may be redeemed at the option of a Fund, subject to payment of a premium until Dec. 1, 2013 (with respect to Minnesota Municipal Fund II and Colorado Municipal Fund) and April 1, 2014 (with respect to National Municipal Fund), and at par thereafter. A Fund may be obligated to redeem certain of the VMTP 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 the VMTP Shares are set weekly, subject to adjustments in certain circumstances. The weighted average dividend rates for the six months ended Sept. 30, 2013 were as follows:

Colorado Minnesota National
          Municipal                      Municipal                     Municipal          
Fund       Fund II       Fund
  1.3% 1.3% 1.3%

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 Ratings and Moody’s Investors Service, funding dividend payments or funding redemptions), that Fund will pay additional fees with respect to the leverage.

5. Derivatives

U.S. GAAP requires disclosures that enable investors to understand: 1) how and why an entity uses derivatives; 2) how they are accounted for; and 3) how they affect an entity’s results of operations and financial position.

Inverse Floaters — Each Fund may participate in inverse floater programs where a Fund transfers its own bonds to a trust that issues floating rate securities and inverse floating rate securities (inverse floaters) with an aggregate principal amount equal to the principal of the transferred bonds. The inverse floaters received by the Funds are derivative tax-exempt obligations with floating or variable interest rates that move in the opposite direction of short-term interest rates, usually at an accelerated speed. Consequently, the market values of the inverse floaters will generally be more volatile than other tax-exempt investments. The Funds typically use inverse floaters to adjust the duration of their portfolio. Duration measures a portfolio’s sensitivity to changes in interest rates. By holding inverse floaters with a different duration than the underlying bonds that a Fund transferred to the trust, the Fund seeks to adjust its portfolio’s sensitivity to changes in interest rates. The Funds may also invest in inverse floaters to add additional income to the Funds or to adjust the Funds’ exposure to a specific segment of the yield curve. At Sept. 30, 2013, and during the period then ended, the Funds held no investments in inverse floaters.

6. Geographic, Credit, and Market Risk

The Funds concentrate their investments in securities issued by municipalities. Because each of the Colorado Municipal Income Fund and the Minnesota Municipal Income Fund invest 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 the Colorado Municipal Income Fund and the Minnesota Municipal Fund. 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 U.S. government may result in a downgrade of securities issued by the states or U.S. territories. The 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

26



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, the National Municipal Income Fund may invest a considerable portion of its assets in certain municipalities. As of Sept. 30, 2013, the National Municipal Income Fund has invested 15.08%, 14.39%, and 10.68% (each as a percentage of fixed income investments), respectively, in securities issued by the State of California, the State of New York, and the State of Arizona, respectively. These investments could make the National Municipal Income 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 U.S. territories, commonwealths and possessions such as Puerto Rico, the U.S. 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 U.S. territories, commonwealths and possessions. In the recent past, Puerto Rico has experienced volatile economic conditions. If the situation in Puerto Rico changes, the volatility, credit quality and performance of the Funds could be affected to the extent a Fund holds Puerto Rican securities.

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, 2013, the percentages of each Fund’s net assets insured by insurers are listed below and these securities have been identified in the schedules of investments.

Colorado Minnesota National
          Municipal                            Municipal                           Municipal          
Fund Fund II Fund
  39.51% 10.66% 2.86%

Each Fund invests a portion of their 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 Investors Service (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.

Each Fund invests in certain obligations that may have liquidity protection 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 of 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. As of Sept. 30, 2013, no securities have been determined to be illiquid under the Funds’ Liquidity Procedures. Rule 144A securities have been identified on the schedules of investments.

(continues)       27



Notes to financial statements

Delaware Investments® Closed-End Municipal Bond Funds

7. 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.

8. Subsequent Events

Management has determined that no material events or transactions occurred subsequent to Sept. 30, 2013 that would require recognition or disclosure in the Funds’ financial statements.

28



Other Fund information
(Unaudited)

Delaware Investments® Closed-End Municipal Bond Funds

Fund management

Joseph R. Baxter
Senior Vice President, Head of Municipal Bond
Department, Senior Portfolio Manager

Joseph R. Baxter is the head of the municipal bond department and is responsible for setting the department’s investment strategy. He is also a co-portfolio manager of the firm’s municipal bond funds and several client accounts. Before joining Delaware Investments in 1999 as head municipal bond trader, he held investment positions with First Union, most recently as a municipal portfolio manager with the Evergreen Funds. Baxter received a bachelor’s degree in finance and marketing from La Salle University.

Stephen J. Czepiel
Senior Vice President, Senior Portfolio Manager

Stephen J. Czepiel is a member of the firm’s municipal fixed income portfolio management team with primary responsibility for portfolio construction and strategic asset allocation. He is a co-portfolio manager of the firm’s municipal bond funds and client accounts. He joined Delaware Investments 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.

Denise A. Franchetti, CFA
Vice President, Portfolio Manager, Senior Research Analyst

Denise A. Franchetti is a senior research analyst for the municipal bond department. Currently, she is responsible for following the airport, education, hotel, cogeneration, and cargo sectors for the group. 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 Delaware Investments 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 Financial Analysts of Philadelphia.

Gregory A. Gizzi
Senior Vice President, Senior Portfolio Manager

Gregory A. Gizzi is a member of the firm’s municipal fixed income portfolio management team. He is also a co-portfolio manager of the firm’s municipal bond funds and several client accounts. Before joining Delaware Investments 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.

(continues)       29



Other Fund information
(Unaudited)

Delaware Investments® Closed-End Municipal Bond Funds

Proxy Results

At the Annual Meeting on August 21, 2013, the Funds’ Shareholders elected nine directors/trustees. 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
Thomas L. Bennett        4,189,783        118,086 300 0
Joseph W. Chow 4,149,096 158,773 300 0
Patrick P. Coyne 4,169,896 137,973 300 0
John A. Fry 4,187,382 120,487 300 0
Anthony D. Knerr 4,113,470 194,399 300 0
Lucinda S. Landreth 4,184,056 123,813 300 0
Frances Sevilla-Sacasa 4,184,830 123,039 300 0
Thomas K. Whitford 4,190,491 117,378 300 0
Janet L. Yeomans 300 0
J. Richard Zecher 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
Thomas L. Bennett        9,797,383        245,033 750 0
Joseph W. Chow 9,801,368 241,048 750 0
Patrick P. Coyne 9,767,539 274,877 750 0
John A. Fry 9,802,035 240,381 750 0
Anthony D. Knerr 9,744,848 297,568 750 0
Lucinda S. Landreth 9,838,685 203,731 750 0
Frances Sevilla-Sacasa 9,837,579 204,837 750 0
Thomas K. Whitford 9,803,165 239,251 750 0
Janet L. Yeomans 750 0
J. Richard Zecher 750 0

Delaware Investments National Municipal Income Fund

Common Shareholders Preferred Shareholders
Shares voted Shares voted
Shares       Withheld       Shares       Withheld
Voted For Authority Voted For Authority
Thomas L. Bennett        3,928,568        141,019 300 0
Joseph W. Chow 3,936,207 133,380 300 0
Patrick P. Coyne 3,922,181 147,406 300 0
John A. Fry 3,936,207 133,380 300 0
Anthony D. Knerr 3,926,632 142,955 300 0
Lucinda S. Landreth 3,927,314 142,273 300 0
Frances Sevilla-Sacasa 3,931,781 137,806 300 0
Thomas K. Whitford 3,927,210 142,377 300 0
Janet L. Yeomans 300 0
J. Richard Zecher 300 0

30



Board Consideration of Delaware Investments Colorado Municipal Income Fund, Inc.; Delaware Investments National Municipal Income Fund; and Delaware Investments Minnesota Municipal Income Fund II, Inc.

At a meeting held on August 20-22, 2013 (the “Annual Meeting”), the Board of Directors (the “Board”), including a majority of disinterested or independent Directors, approved the renewal of the Investment Advisory Agreements for Delaware Investments Colorado Municipal Income Fund, Inc.; Delaware Investments National Municipal Income Fund; and Delaware Investments Minnesota Municipal Income Fund II, Inc. (each, a “Fund” and together, the “Funds”). In making its decision, the Board considered information furnished at regular quarterly Board meetings, including reports detailing Fund performance, investment strategies and expenses, as well as information prepared specifically in connection with the renewal of the investment advisory and sub-advisory contracts. Information furnished specifically in connection with the renewal of the Investment Advisory Agreements with Delaware Management Company (“DMC”) 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 financial condition and profitability of Delaware Investments. In addition, in connection with the Annual Meeting, reports were provided to the Directors in May 2013 and included reports provided by Lipper, Inc., an independent statistical compilation organization (“Lipper”). The Lipper reports compared each Fund’s investment performance and expenses with those of other comparable mutual funds. The Independent Directors reviewed and discussed the Lipper reports with independent legal counsel to the Independent Directors. The Board requested and received information regarding DMC’s policy with respect to advisory fee levels and its breakpoint philosophy; the structure of portfolio manager compensation; the investment manager’s profitability; 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, DMC’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 Directors received assistance and advice from and met separately with independent legal counsel to the Independent Directors. 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 Service. The Board considered the services provided by Delaware Investments to each Fund and its 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 each Fund, compliance of portfolio managers with the investment policies, strategies and restrictions for each Fund, compliance by DMC (“Management”) personnel with the Code of Ethics adopted throughout the Delaware Investments Family of Funds complex and adherence to fair value pricing procedures as established by the Board. The Board was pleased with the current staffing of the Funds’ investment advisor and the emphasis placed on research in the investment process. The Board recognized DMC’s recent receipt of several industry distinctions. The Board gave favorable consideration to DMC’s efforts to control expenditures while maintaining service levels committed to fund matters. The Board was satisfied with the nature, extent and quality of the overall services provided by Delaware Investments.

Investment Performance. The Board placed significant emphasis on the investment performance of each Fund in view of the importance of investment performance to shareholders. Although the Board gave appropriate consideration to performance reports and discussions with portfolio managers at Board meetings throughout the year, the Board gave particular weight to the Lipper reports furnished for the Annual Meeting. The Lipper reports prepared for each Fund showed the investment performance of its shares in comparison to a group of similar funds as selected by Lipper (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 one-, three-, five- and ten-year periods, to the extent applicable, ended March 31, 2013. The Board’s objective is that each Fund’s performance for the periods considered be at or above the median of its Performance Universe. The following paragraphs summarize the performance results for each Fund and the Board’s view of such performance.

Delaware Investments Colorado Municipal Income Fund, Inc. – The Performance Universe for the Fund consisted of the Fund and all leveraged closed-end other state municipal debt funds as selected by Lipper. The Lipper report comparison showed that the Fund’s total return for the one-year period was in the second quartile of its Performance Universe. The report further showed that the Fund’s total return for the three-year period was in the third quartile of its Performance Universe and the Fund’s total return for the five-and ten-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 improved one-year performance result and 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 Fund performance and meet the Board’s performance objective.

Delaware Investments Minnesota Municipal Income Fund II, Inc. – The Performance Universe for the Fund consisted of the Fund and all leveraged closed-end other state municipal debt funds as selected by Lipper. The Lipper report comparison showed that the Fund’s total return for the one-year period was in the third quartile of its Performance Universe. The report further showed that the Fund’s total return for the three-, five- and ten-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 Fund performance and to meet the Board’s performance objective.

(continues)       31



Other Fund information
(Unaudited)

Delaware Investments® Closed-End Municipal Bond Funds

Board Consideration of Delaware Investments Colorado Municipal Income Fund, Inc.; Delaware Investments National Municipal Income Fund; and Delaware Investments Minnesota Municipal Income Fund II, Inc. (continued)

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 Lipper. The Lipper report comparison showed that the Fund’s total return for the one-year period was in the second quartile of its Performance Universe. The report further showed that the Fund’s total return for the three-, five- and ten-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 improved one-year performance result and 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 Fund performance and meet the Board’s performance objective.

Comparative Expenses. The Board considered expense comparison data for the Delaware Investments Family of Funds. Management provided the Board with information on pricing levels and fee structures for each Fund 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 Lipper (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 considered fees paid to Delaware Investments for non-management services. The Board’s objective is to limit each Fund’s total expense ratio to be competitive with that of the Expense Group. The following paragraphs summarize the expense results for the Funds and the Board’s view of such expenses.

Delaware Investments Colorado Municipal Income Fund, 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 extremely satisfied with the management fee and total expenses 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 extremely 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 highest expenses of its Expense Group. The Board gave favorable consideration to the Fund’s management fee, but noted that the Fund’s total expenses were not in line with the Board’s objective. In evaluating total expenses, the Board considered the limited number of funds in the Expense Group. The Board was satisfied with Management’s efforts to improve the Fund’s total expense ratio and to bring it in line with the Board’s objective.

Management Profitability. The Board considered the level of profits, if any, realized by Delaware Investments 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 Delaware Investments’ business in providing management and other services to each of the individual funds and the Delaware Investments Family of Funds as a whole. Specific attention was given to the methodology followed in allocating costs for the purpose of determining profitability. Management stated that the level of profits of Delaware Investments, to a certain extent, reflects recent operational cost savings and efficiencies initiated by Delaware Investments. The Board considered Delaware Investments’ 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 Delaware Investments 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 Investments Family of Funds and the benefits from allocation of fund brokerage to improve trading efficiencies. The Board found that the management fees were reasonable in light of the services rendered and the profitability of Delaware Investments.

Economies of Scale. As closed-end funds, the Funds do not issue shares on a continuous basis. Each Fund’s assets increase only to the extent that the values of the underlying securities in the Fund increase. 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.

32



About the organization

This semiannual report is for the information of Delaware Investments Closed-End Municipal Bond Funds shareholders. Notice is hereby given in accordance with Section 23(c) of the Investment Company Act of 1940 that the Funds may, from time to time, purchase shares of their common stock on the open market at market prices.

Board of directors/trustees

Patrick P. Coyne
Chairman, President,
and Chief Executive Officer
Delaware Investments® Family of Funds
Philadelphia, PA

Thomas L. Bennett
Private Investor
Rosemont, PA

Joseph W. Chow
Former Executive Vice President
State Street Corporation
Brookline, MA

John A. Fry
President
Drexel University
Philadelphia, PA

Anthony D. Knerr
Founder and Managing Director
Anthony Knerr & Associates
New York, NY

Lucinda S. Landreth
Former Chief Investment Officer
Assurant, Inc.
Philadelphia, PA

Frances A. Sevilla-Sacasa
Chief Executive Officer
Banco Itaú Europa International
Miami, FL

Thomas K. Whitford
Former Vice Chairman
PNC Financial Services Group
Pittsburgh, PA

Janet L. Yeomans
Former Vice President and Treasurer
3M Corporation
St. Paul, MN

J. Richard Zecher
Founder
Investor Analytics
Scottsdale, AZ

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.

     

Affiliated officers

David F. Connor
Senior Vice President, Deputy General
Counsel, and Secretary
Delaware Investments Family of Funds
Philadelphia, PA

Daniel V. Geatens
Vice President and Treasurer
Delaware Investments Family of Funds
Philadelphia, PA

David P. O’Connor
Executive Vice President, General Counsel
and Chief Legal Officer
Delaware Investments Family of Funds
Philadelphia, PA

Richard Salus
Senior Vice President and
Chief Financial Officer
Delaware Investments Family of Funds
Philadelphia, PA

 

 

 

 

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. Each Fund’s Forms N-Q, as well as a description of the policies and procedures that each Fund uses 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 Fund uses to determine how to vote proxies (if any) relating to portfolio securities and each Fund’s Schedule of Investments are available without charge on the Funds’ website at delawareinvestments.com. Each Fund’s Forms N-Q 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 delawareinvestments.com; and (ii) on the SEC’s website at sec.gov.

     

Investment manager
Delaware Management Company,
a series of Delaware Management
Business Trust
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
delawareinvestments.com

Delaware Investments is the marketing
name of Delaware Management Holdings,
Inc. and its subsidiaries.

Number of recordholders as of
September 30, 2013

Colorado Municipal
Income Fund 80
Minnesota Municipal Income
Fund II 419
National Municipal Income Fund 98


33



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

         Applicable to Form N-CSRs filed after fiscal years ending on or after December 31, 2005.

         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 second fiscal quarter of the period covered by the report to stockholders included herein (i.e., the registrant’s second fiscal quarter) that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 12. 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® MINNESOTA MUNICIPAL INCOME FUND II, INC.

/s/ PATRICK P. COYNE
By: Patrick P. Coyne
Title: Chief Executive Officer
Date:     December 4, 2013

     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.

/s/ PATRICK P. COYNE
By: Patrick P. Coyne
Title: Chief Executive Officer
Date:     December 4, 2013
 
/s/ RICHARD SALUS
By: Richard Salus
Title: Chief Financial Officer
Date:     December 4, 2013