Shareholders of Delaware Investments Florida Insured Municipal Income Fund
have approved a change to the fundamental investment policies of the fund. As of October 15, the fund will no longer have to invest 80% of its net assets in insured, AAA-rated municipal bonds issued by the State of Florida.
Delaware Investments Florida Insured Municipal Income Fund (the "Fund") today announced that Fund shareholders had approved the proposal to change certain fundamental investment policies of the Fund at the Fund's reconvened annual shareholders meeting. The Fund currently anticipates that these changes will go into effect on Monday, October 15, 2007.
Shareholders of the Fund approved a proposal to eliminate a fundamental investment policy requiring the Fund to invest 80% of its net assets in insured, AAA-rated municipal bonds issued by the State of Florida. When this change goes into effect, the Fund may, as a non-fundamental policy, (1) invest without limitation in un-insured, investment grade municipal securities of states other than Florida (including those rated below AAA) and (2) invest up to 20% of its net assets in non-investment grade municipal securities. The Fund also will be renamed the Delaware Investments National Municipal Income Fund, consistent with its new, national investment strategy.
In addition, when this change goes into effect, the Fund's non-fundamental investment objective will be changed to provide current income exempt from regular federal income tax, consistent with the preservation of capital. As a fundamental policy, under normal circumstances the Fund will invest at least 80% of its net assets in securities the income 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.
It is anticipated that the Fund will transition its portfolio over time to include municipal bonds from other states and territories. During that transition period, the Fund may have significant investments in Florida municipal bonds. This could make the Fund more sensitive to economic conditions in Florida than other more geographically diversified national municipal income funds.
About Delaware Investments:
Delaware Investments, an affiliate of Lincoln Financial Group, is a Philadelphia-based diversified asset management firm with more than $164 billion in assets under management as of June 30, 2007. Through a broad range of managed accounts and portfolios, mutual funds, retirement accounts, sub- advised funds, education savings plans and other investment products, Delaware Investments provides investment services to individual investors and to institutional investors such as private and public pension funds, foundations, and endowment funds. Delaware Investments is the marketing name for Delaware Management Holdings, Inc. and its subsidiaries. For more information on Delaware Investments, visit the company at http://www.delawareinvestments.com/. Lincoln Financial Group is the marketing name for Lincoln National Corporation (NYSE:LNC) and its affiliates. For more information on Lincoln Financial Group, visit http://www.lfg.com/.
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