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| Fund profile |
Objective
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Portfolio manager(s)
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| The Fund seeks to provide current income exempt from both regular federal income tax and Colorado state income tax, consistent with the preservation of capital. |
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Denise A. Franchetti (2004)
Joseph R. Baxter (2004)
Stephen J. Czepiel (2007)
Delaware Management Company
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Main investment strategies
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The Fund seeks to achieve its objective by investing substantially all (in excess of 80%) of its net assets in tax-exempt Colorado municipal obligations un-insured, investment grade. The Fund may invest up to 20% of its net assets in non-investment grade municipal securities 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 advisor. 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. Up to 20% of the securities owned by the Fund may generate interest that is subject to federal alternative minimum tax ("AMT"). The Fund intends to emphasize investments in Colorado municipal obligations with long-term maturities in order to maintain an average portfolio maturity of 20 to 30 years. The average portfolio maturity, however, may be shortened from time to time depending on market conditions. As a result, the Fund's portfolio at any given time may include both long- and intermediate-term Colorado municipal obligations.
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| Fund information as of 10/31/09 |
| Trading exchange |
American Stock Exchange |
| Ticker symbol |
VCF |
| SEC yield |
3.62% |
| YTD distributions declared |
$0.52 |
| Expense ratio |
1.01% |
| Turnover ratio |
16.0% |
| Total net assets |
$67,017,115 |
| Inception date |
07/29/93 |
| Historic pricing |
| NAV date |
NAV |
Market price |
Premium/ Discount |
| 11/22/09 |
$13.82 |
$13.08 |
-5.35% |
| 11/21/09 |
$13.82 |
$13.08 |
-5.35% |
| 11/20/09 |
$13.82 |
$13.08 |
-5.35% |
| 11/19/09 |
$13.81 |
$13.01 |
-5.79% |
| 11/18/09 |
$13.79 |
$13.22 |
-4.13% |
| 11/17/09 |
$13.78 |
$12.93 |
-6.17% |
| 11/16/09 |
$13.79 |
$12.95 |
-6.09% |
The U.S. Supreme Court is reviewing the constitutionality of state tax laws that provide preferential tax treatment to in-state municipal bonds versus out-of-state municipal bonds. A ruling against such state tax laws could impact the state tax treatment of municipal bond interest, and by extension, the interest earned within a municipal bond fund. States may be compelled to change their statutes and provide equal treatment to interest earned from all municipal bonds, in-state as well as out-of-state. These changes could include either exempting interest earned on all municipal bonds from state taxes or subjecting interest earned on all municipal bonds to state taxes - regardless of the issuer's state. A decision is expected mid-2008.
The information on this Web site is intended for U.S. residents only. The information provided does not constitute a solicitation of an offer to buy, or an offer to sell securities in any jurisdiction to any person.
Performance results reflect past performance and are no guarantee of future results. Current yields may be higher or lower than performance quoted. The market value and net asset value (NAV) of a fund's shares will fluctuate with market conditions. Closed-end funds may trade at a premium to NAV but often trade at a discount.
Investment return, price, yields and NAV 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. There is no assurance that a fund will meet its investment objective.
Some funds 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 or shares of preferred stock, or a combination thereof. However, these objectives cannot be achieved in all interest rate environments. While leverage may result in a higher yield for the fund, the use of leverage involves risk, including the potential for higher volatility 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. Certain funds may invest assets in securities of issuers domiciled outside the United States, including issuers from emerging markets. Foreign investing involves special risks, including foreign currency risk and the possibility of substantial volatility due to adverse political, economic or other developments.
Some Delaware Investments funds make distributions of ordinary income and capital gains at calendar year end. Those distributions temporarily cause extraordinarily high yields. There is no assurance that a fund will repeat that yield in the future. Subsequent monthly distributions that do not include ordinary income or capital gains in the form of dividends will likely be lower.
Note that all dividend and yield data is based on the current month's distributions.
Net asset value (NAV) is 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.
Yield on stock price is calculated by dividing the most recent rate at which the Fund distributed dividend and interest income by the Fund's current stock price and annualizing the results.
A rise/fall in the interest rates can have a significant impact on bond prices and the NAV (net asset value) of the fund. Funds that invest in bonds can lose their value as interest rates rise and an investor can lose principal.
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