UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER
REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
| Investment Company Act file number: | 811-07810 |
| Exact name of registrant as specified in charter: | Delaware Investments® Colorado Municipal |
| Income Fund, Inc. | |
| Address of principal executive offices: | 2005 Market Street |
| Philadelphia, PA 19103 | |
| Name and address of agent for service: | David F. Connor, Esq. |
| 2005 Market Street | |
| Philadelphia, PA 19103 | |
| Registrant’s telephone number, including area code: | (800) 523-1918 |
| Date of fiscal year end: | March 31 |
| Date of reporting period: | September 30, 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 | ||||||||||||||||||