Fund Description

The fund was incepted in June 1996 and is managed by Delaware Management Company. The objective of the fund is to seek as high a level of current income exempt from federal income tax and from Minnesota state personal income tax. The fund invests in municipal bonds and notes that are exempt from federal and Minnesota state personal income taxes. The fund focuses on lower rated municipal securities (junk bonds) that offer higher income potential and involve greater risk than higher quality securities. The fund derives at least 95% of its income from Minnesota obligations. The fund invests assets in securities with maturities of various lengths, depending on market conditions, but seeks to maintain the fund's average weighted maturity at approximately 15 to 25 years. The fund also strives to adjust the average maturity of the bonds in the portfolio to provide a high level of tax-exempt income consistent with preservation of capital. The fund concentrates investments in certain types of bonds or in a certain segment of the municipal bond market when the supply of bonds in other sectors does not suit the fund's investment needs. Dividends are distributed monthly. Capital gains are distributed in November.