Delaware Tax-Free California Fund

Objective

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

Strategy

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

Fund information
Inception date12/31/2013
Dividends paid (if any)Monthly
Capital gains paid (if any)December
Fund identifiers
NASDAQDCTIX
CUSIP928928167

Institutional Class shares are only available to certain investors. See the prospectus for more information. 

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 (10/31/2014)
YTD1 year3 year5 year10 yearLifetimeInception date
NAV (view definition)11.41%n/an/an/an/a13.97%12/31/2013
Barclays Municipal Bond Index8.32%n/an/an/an/an/a
Average annual total return as of quarter-end (09/30/2014)
QTDYTD1 year3 year5 year10 yearLifetimeInception date
NAV (view definition)2.39%10.52%n/an/an/an/a14.44%12/31/2013
Barclays Municipal Bond Index1.49%7.58%n/an/an/an/an/a

Returns for less than one year are not annualized.

Expense ratio
Gross0.74%
Net0.57%

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
20144.44%3.36%2.39%n/an/a

Institutional Class shares are only available to certain investors. See the prospectus for more information. 

Portfolio characteristics - as of 10/31/2014
Share assets$10.0 million
Number of holdings97
Effective maturity (weighted average) (view definition)6.54 years
Modified duration (view definition)5.07 years
Annualized standard deviation, 3 years (view definition)5.45
SEC 30-day yield with waiver (view definition)2.27%
SEC 30-day yield without waiver (view definition)2.07%
Portfolio turnover (last fiscal year)13%
Portfolio composition as of 10/31/2014Total may not equal 100% due to rounding.
Municipal bonds98.9%
Cash and cash equivalents1.1%

Cash and cash equivalents include accruals on bonds and long-term receivables.

Top 10 holdings as of 10/31/2014
Holdings are as of the date indicated and subject to change.
List excludes cash and cash equivalents.
Holding% of portfolio
County of San Bernardino CA 5.900 9/1/20332.1%
California State Public Works Board 5.000 12/1/20251.7%
San Francisco Municipal Transportation Agency 5.000 3/1/20371.7%
Golden State Tobacco Securitization Corp. 5.750 6/1/20471.7%
California Municipal Finance Authority 6.500 11/1/20411.5%
California Statewide Communities Development Authority 5.375 12/1/20371.5%
Imperial Irrigation District 5.250 11/1/20311.4%
California Educational Facilities Authority 5.000 10/1/20231.3%
State of California 6.000 3/1/20331.3%
California State Public Works Board 6.250 4/1/20341.2%
Total % Portfolio in Top 10 holdings15.4%

Holdings are as of the date indicated and subject to change.

Top sectors as of 10/31/2014
List excludes cash, accruals on bonds, and cash equivalents.
Sector% of portfolio
Hospital14.9%
Education13.6%
Special tax11.9%
State general obligations10.2%
Leasing10.0%
Transportation9.0%
Local general obligations7.2%
Electric6.5%
Water & sewer4.4%
Housing4.3%
Distribution history - annual distributions (Institutional Class)1,2
Distributions ($ per share)
YearCapital gains3Net investment
income
20140.0000.417
20130.0000.000
20120.0000.000
20110.0000.000
20100.0000.000
20090.0000.000
20080.0000.000
20070.0000.000
20060.0000.000
20050.0000.000
20040.0000.000

1If a Fund makes a distribution from any source other than net income, it is required to provide shareholders with a notice disclosing the source of such distribution (each a "Notice"). The amounts and sources of distributions reported above and in each Notice are only estimates and are not provided for tax reporting purposes. Each Fund will send each shareholder a Form 1099 DIV for the calendar year that will provide definitive information on how to report the Fund's distributions for federal income tax purposes. The information in the table above will not be updated to reflect any subsequent recharacterization of dividends and distributions. Click here to see recent Notices pertaining to the Fund (if any).

2Information on return of capital distributions is only provided from June 1, 2014 onward.

3Includes both short- and long-term capital gains.

Institutional Class shares are only available to certain investors. See the prospectus for more information. 

Joe Baxter

Joe Baxter  

Senior Vice President, Head of Municipal Bond Department, Senior Portfolio Manager

Start date on the Fund: April 2004

Years of industry experience: 30

(View bio)


Steve Czepiel

Steve Czepiel  

Senior Vice President, Senior Portfolio Manager

Start date on the Fund: July 2007

Years of industry experience: 32

(View bio)


Greg Gizzi

Greg Gizzi 

Senior Vice President, Senior Portfolio Manager

Start date on the Fund: December 2012

Years of industry experience: 30

(View bio)


Institutional Class shares are only available to certain investors. See the prospectus for more information. 

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 pricenone
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) feesnone
Other expenses0.19%
Total annual fund operating expenses0.74%
Fee waivers and expense reimbursements(0.17%)
Total annual fund operating expenses after fee waivers and expense reimbursements0.57%

Institutional Class shares are only available to certain investors. See the prospectus for more information. 

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 0.57% 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 800 362-7500. 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.

The Funds are distributed by Delaware Distributors L.P., an affiliate of Delaware Management Holdings, Inc., and Macquarie Group Limited.

Not FDIC Insured | No Bank Guarantee | May Lose Value

Fund Finder

Daily pricing (as of 11/26/2014)

Institutional ClassPriceNet changeYTD
NAV$12.150.0111.62%
Max offer price$12.15n/an/a

Total net assets (as of 10/31/2014)

$97.1 million all share classes

Lipper ranking (as of 10/31/2014)

YTD ranking45 / 126
1 yearn/a
3 yearsn/a
5 yearsn/a
10 yearsn/a
Lipper classificationCA Muni Debt Funds

Benchmark, peer group

Barclays Municipal Bond Index (view)

Lipper California Municipal Debt Funds Average (view)

Additional information