Delaware Investments National Municipal Income Fund
Objective
The Fund seeks to provide current income exempt from regular federal income tax, consistent with the preservation of capital.
Strategy
Under normal circumstances the Fund will invest at least 80% of its net assets in securities from which is exempt from federal income taxes. The Fund will be able to invest up to 20% of its net assets in municipal bonds with an investment rating of Ba/BB or lower, or that are unrated but judged to be of comparable quality by the Fund's investment adviser. Investment in municipal bonds of below investment grade quality involves special risks as compared with investment in higher grade municipal bonds. These risks include greater sensitivity to general economic downturns. Securities rated below investment grade are commonly known as "junk bonds." These securities are regarded as predominantly speculative with respect to the issuer's ability to pay interest and repay principal owed.
Historic pricing
| NAV date | NAV | Market price | Premium/Discount |
|---|---|---|---|
| 05/16/2012 | $14.43 | $13.56 | -6.03% |
| 05/15/2012 | $14.48 | $13.61 | -6.01% |
| 05/14/2012 | $14.50 | $13.62 | -6.07% |
| 05/13/2012 | $14.47 | $13.65 | -5.67% |
| 05/12/2012 | $14.47 | $13.65 | -5.67% |
| 05/11/2012 | $14.47 | $13.65 | -5.67% |
| 05/10/2012 | $14.45 | $13.70 | -5.19% |
| Fund information as of 04/30/2012 | |
|---|---|
| Ticker symbol | XVFLX |
| SEC yield | 3.82% |
| YTD distributions declared | $0.23 |
| Expense ratio | 0.65% |
| Turnover ratio | 50.00% |
| Inception date | 02/26/1993 |
Holdings are as of the date indicated and subject to change.
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 Vice President, Portfolio Manager, Head of Convertible Bond and Municipal Bond Trading
Gregory A. Gizzi is a member of the firm’s municipal fixed income portfolio management team and municipal trading team, and head of the municipal bond trading staff. Additionally, Gizzi serves as portfolio manager and head of the convertible bond trading staff. 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 served in the same capacity at Dillon Read. Gizzi earned his bachelor’s degree in economics from Harvard University.
Ratios and supplemental data Year ended
| 3/31/11 | 3/31/10 | 3/31/09 | 3/31/08 | 3/31/07 | |
|---|---|---|---|---|---|
| Net assets applicable to common shares, end of period (000 omitted) | $30,559 | $31,650 | $28,967 | $32,365 | $35,256 |
| Ratio of expenses to average net assets applicable to common shares1 | 0.65% | 0.63% | 1.06% | 1.16% | 1.10% |
| Ratio of net investment income to average net assets applicable to common shares1 | 4.64% | 4.48% | 5.63% | 6.54% | 6.58% |
| Ratio of net investment income to average net assets applicable to common shares net of dividends to preferred shares2 | 4.64% | 4.48% | 4.25% | 4.22% | 4.51% |
| Portfolio turnover | 50% | 69% | 36% | 17% | 9% |
1Ratios do not reflect the effect of dividend payments to preferred shareholders.
2Ratio reflects total net investment income less dividends paid to preferred shareholders divided by average net assets applicable to common shareholders.
Investing involves risk, including the possible loss of principal.
High yielding, noninvestment grade bonds (junk bonds) involve higher risk than investment grade bonds.
Fixed income securities and bond funds can lose value, and investors can lose principal, as interest rates rise. They also may be affected by economic conditions that hinder an issuer's ability to make interest and principal payments on its debt.
The Fund may also be subject to prepayment risk, the risk that the principal of a fixed income security that is held by the Fund may be prepaid prior to maturity, potentially forcing the Fund to reinvest that money at a lower interest rate.
Substantially all dividend income derived from tax-free funds is exempt from federal income tax. Some income may be subject to the federal alternative minimum tax (AMT) that applies to certain investors. Capital gains, if any, are taxable.
NAV, market price, and premium or discount will fluctuate with changes in market conditions. At the time of sale, your shares may have a market price that is above or below net asset value, and may be worth more or less than your original investment.
The Fund fund may utilize leveraging to seek to enhance the yield and net asset value of its common stock through bank borrowings, issuance of short term debt securities of shares of preferred stock, or a combination thereof. However, these objectives cannot be achieved in all interest rate environments. While leverage may result in higher yield for the Fund, the use of leverage involves risk, including the potential for higher volitility of the NAV, fluctuations of dividends and other distributions paid by the Fund and the market price of the Fund's common stock, among others.
Market Price is the price an investor would pay for shares of a fund on the secondary market. Market price shown is the market closing price as of the previous business day.
Net asset value (NAV) is the total assets less total liabilities divided by the number of shares outstanding.
Premium/Discount is the amount by which the market price trades above or below the NAV.
Not FDIC Insured | No Bank Guarantee | May Lose Value