Delaware Tax-Free New York Fund

Objective

Delaware Tax-Free New York Fund seeks as high a level of current income exempt from federal income tax and from New York state personal income taxes as is consistent with preservation of capital.

Strategy

The Fund primarily invests in New York state and local municipal bonds with various maturities, the income from which is exempt from federal income tax and New York state personal income taxes.

Fund information
Inception date11/06/1987
Dividends paid*Monthly
Capital gains paid*December

*If any.

Fund identifiers
NASDAQFTNYX
CUSIP928928274
Investment minimums
Initial investment$1,000
Subsequent Investments$100
Systematic withdrawal balance$5,000
Account features
CheckwritingNo
Payroll DeductionYes
IRAsNo

The performance quoted represents past performance and does not guarantee future results. Investment return and principal value of an investment will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance quoted.

Total returns may reflect waivers and/or expense reimbursements by the manager and/or distributor for some or all of the periods shown. Performance would have been lower without such waivers and reimbursements.

Average annual total return as of month-end (03/31/2014)
YTD1 year3 year5 year10 yearLifetimeInception date
NAV (view definition)3.92%-1.91%6.04%5.94%4.44%5.79%11/06/1987
Max offer pricen/a-6.33%4.41%4.96%3.96%5.60%
Barclays Municipal Bond Index3.32%0.39%5.79%5.71%4.45%n/a
Average annual total return as of quarter-end (03/31/2014)
QTDYTD1 year3 year5 year10 yearLifetimeInception date
NAV (view definition)3.92%3.92%-1.91%6.04%5.94%4.44%5.79%11/06/1987
Max offer price-0.72%-0.72%-6.33%4.41%4.96%3.96%5.60%
Barclays Municipal Bond Index3.32%3.32%0.39%5.79%5.71%4.45%n/a

Returns for less than one year are not annualized.

Class A shares have a maximum up-front sales charge of 4.50% and are subject to an annual distribution fee.

Expense ratio
Gross1.03%
Net0.80%

Net expense ratio reflects a contractual waiver of certain fees and/or expense reimbursements from Dec. 27, 2013 through Dec. 29, 2014. Please see the fee table in the Fund’s prospectus for more information.

Quarterly total returns @ NAV
Year1st quarter2nd quarter3rd quarter4th quarterAnnual return
20143.92%n/an/an/an/a
20130.07%-4.40%-1.43%0.18%-5.53%
20122.76%2.73%3.19%0.92%9.93%
2011-0.47%3.97%4.01%2.17%9.96%
20102.04%1.91%3.54%-5.10%2.17%
20094.03%2.52%8.61%-1.18%14.46%
2008-0.38%0.69%-2.94%-0.58%-3.20%
20070.83%-0.23%0.65%0.90%2.17%
20060.47%-0.07%3.33%1.17%4.95%
20050.32%3.17%-0.10%0.69%4.11%
20042.08%-2.62%4.02%1.69%5.14%
Portfolio characteristics - as of 03/31/2014
Share assets$53.5 million
Number of holdings135
Effective maturity (weighted average) (view definition)7.36 years
Modified duration (view definition)5.54 years
Annualized standard deviation, 3 years (view definition)5.23
SEC 30-day yield with waiver (view definition)2.62%
SEC 30-day yield without waiver (view definition)2.41%
Portfolio turnover (last fiscal year)33%
Portfolio composition as of 03/31/2014Total may not equal 100% due to rounding.
Municipal bonds99.2%
Cash and cash equivalents0.8%
Top 10 holdings as of 03/31/2014
Holdings are as of the date indicated and subject to change.
List excludes cash and cash equivalents.
Holding% of portfolio
New York City Industrial Development Agency 5.000 7/1/20282.1%
Triborough Bridge & Tunnel Authority 5.000 11/15/20201.7%
City of New York NY 5.000 8/1/20271.6%
Hudson Yards Infrastructure Corp. 5.750 2/15/20471.5%
City of New York NY 5.000 8/1/20311.5%
New York City Transitional Finance Authority Building Aid Revenue 5.250 7/15/20371.5%
Suffolk County Economic Development Corp. 5.000 7/1/20281.5%
Niagara Area Development Corp. 4.000 11/1/20241.4%
New York Liberty Development Corp. 6.375 7/15/20491.3%
New York City Trust for Cultural Resources 5.000 4/1/20311.3%
Total % Portfolio in Top 10 holdings15.4%
Top sectors as of 03/31/2014
List excludes cash, accruals on bonds, and cash equivalents.
Sector% of portfolio
Education22.4%
Special tax16.5%
Hospital16.3%
Leasing9.4%
Transportation9.0%
Local general obligation7.9%
Corporate7.7%
Water/sewer4.0%
Electric1.7%
Pre-refunded/ETM1.5%
Distribution history - annual distributions (Class A)
Distributions ($ per share)
YearCapital gainsDividends
20140.0000.089
20130.0000.361
20120.0190.417
20110.0000.408
20100.0000.420
20090.0000.417
20080.0000.407
20070.0000.425
20060.0000.449
20050.0000.448
20040.0000.476
Joe Baxter

Joe Baxter  

Head of Municipal Bond Department, Senior Portfolio Manager

Start date on the Fund: May 2003

(View bio)


Steve Czepiel

Steve Czepiel  

Senior Portfolio Manager

Start date on the Fund: July 2007

(View bio)


Greg Gizzi

Greg Gizzi 

Senior Portfolio Manager

Start date on the Fund: December 2012

(View bio)


You may qualify for sales-charge discounts if you and your family invest, or agree to invest in the future, at least $100,000 in Delaware Investments® Funds. More information about these and other discounts is available from your financial advisor, in the Fund's prospectus under the section entitled "About your account," and in the Fund's statement of additional information under the section entitled "Purchasing shares."

The following table describes the fees and expenses that you may pay if you buy and hold shares of the Fund.

Shareholder fees
Maximum sales charge (load) imposed on purchases as a percentage of offering price4.50%
Maximum contingent deferred sales charge (load) as a percentage of original purchase price or redemption price, whichever is lowernone
Annual fund operating expenses
Management fees0.55%
Distribution and service (12b-1) fees0.25%
Other expenses0.23%
Total annual fund operating expenses1.03%
Fee waivers and expense reimbursements(0.23%)
Total annual fund operating expenses after fee waivers and expense reimbursements0.80%

1The Fund's investment manager, Delaware Management Company (Manager), is contractually waiving its investment advisory fees and/or paying expenses (excluding any 12b-1 fees, taxes, interest, inverse floater program expenses, acquired fund fees and expenses, short sale and dividend interest expenses, brokerage fees, certain insurance costs, and nonroutine expenses or costs, including, but not limited to, those relating to reorganizations, litigation, conducting shareholder meetings, and liquidations) to the extent necessary to prevent total annual fund operating expenses from exceeding 0.55% of the Fund's average daily net assets from Dec. 27, 2013 through Dec. 29, 2014. These waivers and reimbursements may only be terminated by agreement of the Manager or Distributor, as applicable, and the Fund.

Carefully consider the Fund’s investment objectives, risk factors, charges, and expenses before investing. This and other information can be found in the Fund’s prospectus and its summary prospectus, which may be obtained by clicking the prospectus link located in the right-hand sidebar or calling 800 523-1918. Investors should read the prospectus and the summary prospectus carefully before investing.

Investing involves risk, including the possible loss of principal.

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.

Funds that invest primarily in one state may be more susceptible to the economic, regulatory, and other factors of that state than funds that invest more broadly.

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.

Duration number will change as market conditions change. Therefore, duration should not be solely relied upon to indicate a municipal bond fund’s potential volatility.

Not FDIC Insured | No Bank Guarantee | May Lose Value

Fund Finder

Daily pricing (as of 04/17/2014)

Class APriceNet changeYTD
NAV$11.170.015.30%
Max offer price$11.70n/an/a

Total net assets (as of 03/31/2014)

$71.7 million all share classes

Overall Morningstar RatingTM

Load waived

With load

Class A shares (as of 03/31/2014)

Load waivedWith loadNo. of funds
Overall43108
3 Yrs42108
5 Yrs3296
10 Yrs5489
Morningstar categoryMuni New York Long

(View Morningstar disclosure)

Lipper ranking (as of 03/31/2014)

YTD ranking34 / 103
1 year63 / 99
3 years25 / 92
5 years30 / 81
10 years1 / 71
Lipper classificationNY Muni Debt Funds

(View Lipper disclosure)

Benchmark, peer group

Barclays Municipal Bond Index (view)

Lipper New York Municipal Debt Funds Average (view)

Additional information