UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES

Investment Company Act file number:       811-07410
 
Exact name of registrant as specified in charter: Delaware Investments® National Municipal Income Fund
 
Address of principal executive offices: 2005 Market Street
  Philadelphia, PA 19103
     
Name and address of agent for service: David F. Connor, Esq.
  2005 Market Street
    Philadelphia, PA 19103
     
Registrant’s telephone number, including area code: (800) 523-1918
   
Date of fiscal year end: March 31
   
Date of reporting period: September 30, 2012



Item 1. Reports to Stockholders

     
     
     Semiannual Report
 
     
     Delaware
     Investments®
     Closed-End
     Municipal Bond
     Funds
  
September 30, 2012  
     
   
   
        
   
   
     
 
The figures in the semiannual report for Delaware Investments Closed-End Municipal Bond Funds represent past results, which are not a guarantee of future results. A rise or fall in interest rates can have a significant impact on bond prices. Funds that invest in bonds can lose their value as interest rates rise.
 

 
 
   
  Closed-end funds  
     

 



Table of contents

       > Fund basics 1
 
> Security type/Sector/State allocations 2
 
> Statements of net assets 4
 
> Statements of assets and liabilities 17
 
> Statements of operations 18
 
> Statements of changes in net assets 19
   
> Financial highlights 20
 
> Notes to financial statements 23
 
> Other Fund information 30
 
> About the organization 36
 
 
 
 
 
 
 

Delaware Management Holdings, Inc. and its subsidiaries (collectively known by the marketing name of  Delaware Investments) are wholly owned subsidiaries of Macquarie Group Limited, a global provider of banking, financial, advisory, investment and funds management services. For more information, including press releases, please visit delawareinvestments.com.

Unless otherwise noted, views expressed herein are current as of Sept. 30, 2012, and subject to change. Information is as of the date indicated and subject to change.

Funds are not FDIC insured and are not guaranteed. It is possible to lose the principal amount invested.

Mutual fund advisory services are provided by Delaware Management Company, a series of Delaware Management Business Trust, which is a registered investment advisor. Delaware Investments, a member of Macquarie Group, refers to Delaware Management Holdings, Inc. and its subsidiaries. Macquarie Group refers to Macquarie Group Limited and its subsidiaries and affiliates worldwide.

Investments in Delaware Investments® Closed-End Municipal Bond Funds are not and will not be deposits with or liabilities of Macquarie Bank Limited ABN 46 008 583 542 and its holding companies, including their subsidiaries or related companies (Macquarie Group), and are subject to investment risk, including possible delays in repayment and loss of income and capital invested. No Macquarie Group company guarantees or will guarantee the performance of the Funds, the repayment of capital from the Funds, or any particular rate of return.

© 2012 Delaware Management Holdings, Inc.

All third-party marks cited are the property of their respective owners.



Fund basics

Delaware Investments®
Colorado Municipal Income Fund, Inc.

As of September 30, 2012

Fund objective

The Fund seeks to provide current income exempt from both regular federal income tax and Colorado state personal income tax, consistent with the preservation of capital.


Total Fund net assets
$75 million

Number of holdings
77

Fund start date
July 29, 1993

CUSIP number
246101109

Delaware Investments
National Municipal Income Fund

As of September 30, 2012

Fund objective

The Fund seeks to provide current income exempt from regular federal income tax, consistent with the preservation of capital.


Total Fund net assets
$68 million

Number of holdings
161

Fund start date
Feb. 26, 1993

CUSIP number
24610T108

Delaware Investments
Minnesota Municipal Income Fund II, Inc.

As of September 30, 2012

Fund objective

The Fund seeks to provide current income exempt from both regular federal income tax and Minnesota state personal income tax, consistent with the preservation of capital.


Total Fund net assets
$179 million

Number of holdings
136

Fund start date
Feb. 26, 1993

CUSIP number
24610V103

1



Security type/Sector/State allocations

As of September 30, 2012

Sector designations may be different than the sector designations presented in other Fund materials.

Delaware Investments®
Colorado Municipal Income Fund, Inc.

Percentage
Security type/Sector of Net Assets
Municipal Bonds 138.45 %
Corporate-Backed Revenue Bond 1.27 %
Education Revenue Bonds 21.12 %
Electric Revenue Bonds 5.81 %
Healthcare Revenue Bonds 30.35 %
Housing Revenue Bonds 2.48 %
Lease Revenue Bonds 10.62 %
Local General Obligation Bonds 13.77 %
Pre-Refunded Bonds 3.16 %
Special Tax Revenue Bonds 34.27 %
State & Territory General Obligation Bonds 2.48 %
Transportation Revenue Bonds 8.37 %
Water & Sewer Revenue Bonds 4.75 %
Total Value of Securities 138.45 %
Liquidation Value of Preferred Stock (39.74 %)
Receivables and Other Assets Net of Liabilities 1.29 %
Total Net Assets 100.00 %

Delaware Investments
Minnesota Municipal Income Fund II, Inc.

Percentage
Security type/Sector of Net Assets
Municipal Bonds 142.88 %
Corporate-Backed Revenue Bonds 11.58 %
Education Revenue Bonds 16.56 %
Electric Revenue Bonds 6.44 %
Healthcare Revenue Bonds 38.09 %
Housing Revenue Bonds 6.65 %
Lease Revenue Bonds 8.72 %
Local General Obligation Bonds 10.20 %
Pre-Refunded/Escrowed to Maturity Bonds 21.75 %
Special Tax Revenue Bonds 9.27 %
State & Territory General Obligation Bonds 9.85 %
Transportation Revenue Bonds 2.16 %
Water & Sewer Revenue Bonds 1.61 %
Total Value of Securities 142.88 %
Liquidation Value of Preferred Stock (42.01 %)
Liabilities Net of Receivables and Other Assets (0.87 %)
Total Net Assets 100.00 %

2



Sector designations may be different than the sector designations presented in other Fund materials.

Delaware Investments®
National Municipal Income Fund

Percentage
Security type/Sector of Net Assets
Municipal Bonds 142.25 %
Corporate-Backed Revenue Bonds 17.22 %
Education Revenue Bonds 22.15 %
Electric Revenue Bonds 5.13 %
Healthcare Revenue Bonds 24.18 %
Housing Revenue Bonds 2.47 %
Lease Revenue Bonds 12.59 %
Local General Obligation Bonds 3.61 %
Pre-Refunded Bond 1.86 %
Special Tax Revenue Bonds 18.41 %
State & Territory General Obligation Bonds 9.53 %  
Transportation Revenue Bonds 19.44 %
Water & Sewer Revenue Bonds 5.66 %
Short-Term Investments 1.10 %
Total Value of Securities 143.35 %
Liquidation Value of Preferred Stock (44.15 %)
Receivables and Other Assets Net of Liabilities 0.80 %
Total Net Assets 100.00 %

State (as a % of fixed income investments)
Alaska 0.34 %
Arizona 15.12 %
California 13.09 %
Colorado   1.11 %
Delaware 0.56 %
Florida 4.13 %
Georgia 1.61 %
Guam 1.14 %
Hawaii 0.34 %
Idaho   1.14 %
Illinois 1.13 %
Iowa 0.54 %
Kansas 0.17 %
Louisiana 1.76 %
Maine 0.36 %
Maryland 2.56 %
Massachusetts 1.03 %
Minnesota 0.26 %
Missouri 2.26 %
New Hampshire 0.36 %
New Jersey 3.83 %
New Mexico 0.56 %
New York 18.75 %
Ohio 1.75 %
Oregon 2.59 %
Pennsylvania 7.80 %
Puerto Rico 6.45 %
Tennessee 0.58 %
Texas 5.62 %
Virginia 1.86 %
Washington D.C. 0.28 %
West Virginia 0.63 %
Wyoming 0.29 %
Total 100.00 %

3



Statements of net assets

Delaware Investments® Colorado Municipal Income Fund, Inc.
September 30, 2012 (Unaudited)

Principal      
          Amount Value
Municipal Bonds – 138.45%
Corporate-Backed Revenue Bond – 1.27%
Public Authority for Colorado Energy
          Natural Gas Revenue Series 2008
          6.50% 11/15/38 $ 750,000   $ 958,343
958,343
Education Revenue Bonds – 21.12%
Colorado Educational & Cultural
          Facilities Authority Revenue
          (Academy Charter School Project)
          5.50% 5/1/36 (SGI) 1,720,000 1,752,542
          (Bromley Charter School Project)
          5.25% 9/15/32 (SGI) 3,245,000 3,350,398
          (Johnson & Wales University Project)
          Series A 5.00% 4/1/28 (SGI) 3,000,000 3,011,700
          (Littleton Charter School Project)
          4.375% 1/15/36 (ASSURED GTY) 1,200,000 1,193,856
          (Student Housing - Campus
            Village Apartments) 5.00% 6/1/23 1,065,000   1,196,400
Colorado State Board of Governors
          Revenue (University Enterprise
          System) Series A 5.00% 3/1/39 700,000 774,137
University of Colorado 5.00% 6/1/31 3,185,000 3,776,486
University of Colorado Enterprise
          Systems Revenue Series A
          5.375% 6/1/38 750,000 884,558
15,940,077
Electric Revenue Bonds – 5.81%
Colorado Springs Utilities System
          Improvement Revenue Series C
          5.50% 11/15/48 750,000 882,165
Platte River Power Authority Revenue
          Series HH 5.00% 6/1/28 1,500,000 1,748,730
Puerto Rico Electric Power
          Authority Revenue
          Series TT 5.00% 7/1/37 685,000 685,952
          Series WW 5.50% 7/1/38 300,000 314,661
          Series XX 5.25% 7/1/40 750,000 755,880
4,387,388
Healthcare Revenue Bonds – 30.35%
Aurora Hospital Revenue (Children’s
          Hospital Association Project)
          Series A 5.00% 12/1/40 2,000,000 2,208,080
Colorado Health Facilities
          Authority Revenue
          (Boulder Community Hospital
          Project) 5.00% 10/1/32 500,000 559,505
          (Catholic Health Initiatives)
          Series A 5.00% 7/1/39 750,000 809,415
          Series A 5.00% 2/1/41 2,400,000 2,630,184
          Series A 5.25% 2/1/33 1,625,000 1,881,945
          Series C-1 5.10% 10/1/41 (AGM) 1,000,000 1,072,380
          Series D 6.125% 10/1/28 750,000 889,073
          (Christian Living
          Communities Project)
          6.375% 1/1/41 615,000 680,030
          Series A 5.75% 1/1/37 885,000 912,833
          (Covenant Retirement
          Communities) 5.00% 12/1/33 1,000,000 1,055,030
          (Evangelical Lutheran Good
          Samaritan Society) 5.25% 6/1/23 1,000,000 1,076,610
          (National Jewish Health Project)
          5.00% 1/1/27 500,000 536,140
          (Sisters of Charity of Leavenworth
          Health System) 5.00% 1/1/40 4,750,000 5,175,932
          (Total Long-Term Care) Series A
          6.00% 11/15/30 400,000 452,224
Colorado Springs Hospital Revenue
          6.25% 12/15/33 750,000 856,050
Denver Health & Hospital Authority
          Revenue (Recovery Zone Facilities)
          5.625% 12/1/40 750,000 820,275
University of Colorado Hospital
          Authority Revenue Series A
          5.00% 11/15/37 500,000 533,910
          6.00% 11/15/29 650,000 758,199
22,907,815
Housing Revenue Bonds – 2.48%
Colorado Housing & Finance
          Authority (Single Family
          Mortgage - Class 1) Series A
          5.50% 11/1/29 (FHA) (VA) (HUD) 400,000 415,184
Puerto Rico Housing Finance
          Authority Subordinated-Capital
          Fund Modernization
          5.125% 12/1/27 1,000,000 1,106,870
          5.50% 12/1/18 300,000 351,135
1,873,189
Lease Revenue Bonds – 10.62%
Aurora Certificates of Participation
          Refunding Series A
          5.00% 12/1/30 630,000 715,775
Colorado State Building Excellent
          Schools Today Certificates of
          Participation Series G
          5.00% 3/15/32 2,000,000 2,294,599
Glendale Certificates of Participation
          5.00% 12/1/25 (SGI) 1,500,000 1,624,065
Pueblo County Certificates of
          Participation (County Judicial
          Complex Project)
          5.00% 9/15/42 (AGM) 2,000,000 2,267,600

4



Principal      
          Amount Value
Municipal Bonds (continued)
Lease Revenue Bonds (continued)
Puerto Rico Public Buildings
          Authority Revenue (Guaranteed
          Government Facilities) Series M-2
          5.50% 7/1/35 (AMBAC) $ 550,000 $ 590,563
Regional Transportation District
          Certificates of Participation
          Series A 5.375% 6/1/31 460,000 528,264
8,020,866
Local General Obligation Bonds – 13.77%
Arapahoe County School District #1
          Englewood 5.00% 12/1/31 2,935,000 3,534,502
Boulder, Larimer & Weld Counties
          St. Vrain Valley School District
            No. Re-1J 5.00% 12/15/33 750,000 863,558
Bowles Metropolitan District
          5.00% 12/1/33 (AGM) 2,000,000 2,042,139
Denver City & County
          (Better Denver & Zoo)
          Series A 5.00% 8/1/25   1,150,000 1,379,966
Denver International Business Center
          Metropolitan District #1  
          5.00% 12/1/30 650,000 685,861
Jefferson County School District #R-1
          5.25% 12/15/24 750,000 995,423
Rangely Hospital District  
          6.00% 11/1/26 750,000 894,585
10,396,034
§Pre-Refunded Bonds – 3.16%
Adams & Arapahoe Counties Joint
          School District #28J (Aurora)
          6.00% 12/1/28-18 600,000 780,120
Arapahoe County Water &
          Wastewater Public Improvement
          District Series A 5.125%
          12/1/32-12 (NATL-RE) 635,000 640,499
Colorado Health Facilities Authority
          Revenue (Evangelical Lutheran
          Good Samaritan Society) Series A
          6.125% 6/1/38-14 750,000 822,292
Sand Creek Metropolitan District
          5.00% 12/1/31-13 (SGI) 135,000 142,362
2,385,273
Special Tax Revenue Bonds – 34.27%
Denver Convention Center Hotel
          Authority Revenue Refunding
          5.00% 12/1/35 (SGI) 2,795,000 2,874,965
Guam Government Business Privilege
          Tax Revenue Series A
          5.125% 1/1/42 435,000 486,269
          5.25% 1/1/36 565,000 641,388
Puerto Rico Infrastructure Financing
          Authority Special Tax Revenue
          Series B 5.00% 7/1/41 2,475,000 2,472,921
Puerto Rico Sales Tax Financing
          Revenue First Subordinate
          Series A 5.50% 8/1/37 700,000 752,591
          Series A 5.50% 8/1/42 1,000,000 1,067,990
          Series A 5.75% 8/1/37 590,000 654,399
          Series A-1 5.00% 8/1/43 2,000,000 2,084,760
          Series C 5.00% 8/1/40 1,000,000 1,080,380
          Series C 5.00% 8/1/46 750,000 804,893
          Series C 6.00% 8/1/39 500,000 562,235
Regional Transportation District
          Revenue (FasTracks Project) Series A
          4.375% 11/1/31 (AMBAC) 1,250,000 1,316,425
          4.50% 11/1/36 (AGM) 3,000,000 3,170,970
          5.00% 11/1/28 (AMBAC) 2,500,000 2,870,950
          5.00% 11/1/38 4,085,000 4,660,126
Sand Creek Metropolitan District
          5.00% 12/1/31 (SGI) 365,000 367,894
25,869,156
State & Territory General Obligation Bonds – 2.48%
Puerto Rico Commonwealth
          (Public Improvement)
          Series A 5.00% 7/1/41 500,000 502,455
          Series C 6.00% 7/1/39 505,000 534,058
Western State College 5.00% 5/15/34 750,000 838,365
1,874,878
Transportation Revenue Bonds – 8.37%
Denver City & County Airport System
          Revenue Series A 5.25% 11/15/36 750,000 847,050
E-470 Public Highway Authority
          Revenue Series C 5.25% 9/1/25 310,000 339,391
Puerto Rico Highway & Transportation
          Authority Revenue Series K
          5.00% 7/1/30 2,580,000 2,602,601
Regional Transportation District
          Revenue (Denver Transit Partners)
          6.00% 1/15/41 2,175,000 2,526,197
6,315,239
Water & Sewer Revenue Bonds – 4.75%
Colorado Water Resources & Power
          Development Authority Revenue
          (Parker Water & Sanitation
          District) Series D
          5.125% 9/1/34 (NATL-RE) 1,500,000 1,537,500
          5.25% 9/1/43 (NATL-RE) 2,000,000 2,047,120
3,584,620
Total Municipal Bonds
(cost $96,709,911) 104,512,878

(continues)       5



Statements of net assets

Delaware Investments® Colorado Municipal Income Fund, Inc.

 

 
Total Value of Securities – 138.45%
       (cost $96,709,911) $ 104,512,878
†Liquidation Value of Preferred
       Stock – (39.74%) (30,000,000 )
Receivables and Other Assets
       Net of Liabilities – 1.29% 976,219
Net Assets Applicable to 4,837,100
       Shares Outstanding; Equivalent to
       $15.61 Per Share – 100.00% $ 75,489,097
 
Components of Net Assets at September 30, 2012:
Common stock, $0.01 par value, 200 million shares
       authorized to the Fund $ 66,918,121
Undistributed net investment income 711,778
Accumulated net realized gain on investments 56,231
Net unrealized appreciation of investments   7,802,967
Total net assets $ 75,489,097

Variable rate security. The rate shown is the rate as of September 30, 2012. Interest rates reset periodically.

§

Pre-refunded bonds. Municipal bonds that are generally backed or secured by U.S. Treasury bonds. For pre-refunded bonds, the stated maturity is followed by the year in which the bond is pre-refunded. See Note 9 in “Notes to financial statements.”

See Note 6 in “Notes to financial statements.”

Summary of Abbreviations:
AGM — Insured by Assured Guaranty Municipal Corporation
AMBAC — Insured by AMBAC Assurance Corporation
ASSURED GTY — Insured by Assured Guaranty Corporation
FHA — Federal Housing Administration
HUD — Housing & Urban Development Section 8
NATL-RE — Insured by National Public Finance Guarantee Corporation
SGI — Insured by Syncora Guarantee Inc.
VA — Veterans Administration collateral

See accompanying notes, which are an integral part of the financial statements.

6



Delaware Investments® Minnesota Municipal Income Fund II, Inc.
September 30, 2012 (Unaudited)

          Principal
Amount       Value
Municipal Bonds – 142.88%
Corporate-Backed Revenue Bonds – 11.58%
Cloquet Pollution Control Revenue  
          (Potlatch Project) 5.90% 10/1/26 $ 5,500,000 $ 5,515,620
Laurentian Energy Authority
          Cogeneration Revenue
          Series A 5.00% 12/1/21 3,325,000 3,490,851
Sartell Environmental Improvement
          Revenue (International Paper)  
          Series A 5.20% 6/1/27 1,000,000 1,017,250
Tobacco Securitization Authority
          Revenue (Tobacco Settlement)
          Series B 5.25% 3/1/26 2,000,000 2,289,060
          5.25% 3/1/31   7,400,000 8,365,182
20,677,963
Education Revenue Bonds – 16.56%
Baytown Township Lease Revenue
          (St. Croix Preparatory Academy)
          5.75% 8/1/42 300,000 301,746
Minnesota Higher Education
          Facilities Authority Revenue
          (Augsburg College)
          Series 6-J1 5.00% 5/1/28 1,500,000 1,546,035
          (Carleton College)
          Series D 5.00% 3/1/30 1,120,000 1,289,165
          Series 6-T 5.00% 1/1/28 1,000,000 1,159,020
          (College of St. Benedict)
          Series 5-W 5.00% 3/1/20 2,000,000 2,019,160
          Series 7-M
          5.00% 3/1/31 300,000 320,988
          5.125% 3/1/36 275,000 292,245
          (St. Catherine University)
          Series 7-Q 5.00% 10/1/32 700,000 795,291
          (St. Mary’s University)
          Series 5-U 4.80% 10/1/23 1,400,000 1,423,226
          (St. Scholastic College)
          Series H 5.25% 12/1/35 1,000,000 1,101,800
          (University of St. Thomas)
          Series 6-X 5.00% 4/1/29 2,250,000 2,459,768
          Series 7-A 5.00% 10/1/39 1,000,000 1,121,200
Minnesota State
          Colleges & Universities
          Series A 4.00% 10/1/17 750,000 864,683
St. Paul Housing & Redevelopment
          Authority Charter School
          Lease Revenue
          (Nova Classical Academy)
          Series A 6.375% 9/1/31 750,000 822,068
University of Minnesota
          Series A
          5.00% 12/1/27 1,110,000 1,375,867
          5.00% 12/1/28 1,880,000 2,321,292
          5.00% 12/1/29 2,265,000 2,781,850
          5.00% 12/1/31 1,000,000 1,216,150
          5.00% 12/1/36 3,000,000 3,547,979
          5.25% 4/1/29 1,000,000 1,187,010
          Series C 5.00% 12/1/19 1,290,000 1,609,804
29,556,347
Electric Revenue Bonds – 6.44%
Central Minnesota Municipal
          Power Agency Revenue
          (Brookings Southeast Twin
          Cities Transportation)
          5.00% 1/1/32 1,130,000 1,307,998
Chaska Electric Revenue
          (Generating Facilities)
          Series A 5.25% 10/1/25 250,000 269,843
  Minnesota Municipal Power Agency
          Electric Revenue Series A
          5.00% 10/1/34 1,900,000 2,037,142
          5.25% 10/1/19 1,610,000 1,745,111
Southern Minnesota Municipal
          Power Agency Supply Revenue
          Series A 5.25% 1/1/30 1,000,000 1,143,720
Western Minnesota Municipal Power
          Agency Supply Revenue Series A
          5.00% 1/1/25 3,000,000 3,747,209
          5.00% 1/1/26 1,000,000 1,238,730
11,489,753
Healthcare Revenue Bonds – 38.09%
Anoka Health Care Facility
          Revenue (Homestead
          Anoka Income Project)
          Series A 7.00% 11/1/46 1,200,000 1,281,588
Center City Health Care
          Facilities Revenue (Hazelden
          Foundation Project)
          4.75% 11/1/31 850,000 912,603
          5.00% 11/1/41 1,600,000 1,740,608
Duluth Economic Development
          Authority Revenue
          (St. Lukes Hospital
          Authority Obligation Group)
          5.75% 6/15/32 200,000 206,746
          6.00% 6/15/39 800,000 830,320
Fergus Falls Health Care Facilities
          Revenue (Lake Region Healthcare)
          5.00% 8/1/30 1,000,000 1,048,730
Glencoe Health Care Facilities
          Revenue (Glencoe Regional
          Health Services Project)
          5.00% 4/1/25 2,000,000 2,030,460
Maple Grove Health Care System
          Revenue (Maple Grove Hospital)
          5.25% 5/1/37 1,100,000 1,156,881
Minneapolis Health Care System
          Revenue (Fairview Health Services)
          Series A 6.375% 11/15/23 605,000 732,909
          Series A 6.625% 11/15/28 850,000 1,024,242
          Series B 6.50% 11/15/38
          (ASSURED GTY) 2,295,000 2,851,744
          Series D 5.00% 11/15/34
          (AMBAC) 2,000,000 2,074,600

(continues)       7



Statements of net assets

Delaware Investments® Minnesota Municipal Income Fund II, Inc.

Principal
          Amount       Value
Municipal Bonds (continued)
Healthcare Revenue Bonds (continued)
Minneapolis Revenue (National
          Marrow Donor Program Project)
          4.875% 8/1/25 $ 1,000,000 $ 1,040,530
Minnesota Agricultural & Economic
          Development Board Revenue
          Un-Refunded Balance Series A
          5.75% 11/15/26 (NATL-RE) 100,000 100,180
          6.375% 11/15/29   195,000 195,421
Rochester Health Care & Housing
          Revenue (Samaritan Bethany)  
          Series A 7.375% 12/1/41 1,220,000 1,378,417
Rochester Health Care Facilities
          Revenue (Mayo Clinic)
          4.00% 11/15/41 8,780,000 9,264,743
        Series C 4.50% 11/15/38 2,000,000 2,433,580
Sartell Health Care Facility Revenue
          (Country Manor Campus Project)
          5.25% 9/1/30 1,000,000 1,015,810
Shakopee Health Care Facilities
          Revenue (St. Francis Regional
          Medical Center) 5.25% 9/1/34 1,560,000 1,594,710
St. Cloud Health Care Revenue
          (Centracare Health System Project)  
            5.50% 5/1/39 (ASSURED GTY) 1,500,000 1,672,560
          Series A 5.125% 5/1/30 4,425,000 4,917,767
St. Louis Park Health Care
          Facilities Revenue
          (Park Nicollet Health Services)
          5.75% 7/1/39 3,315,000 3,746,414
          Series C 5.50% 7/1/23 1,000,000 1,127,310
St. Paul Housing & Redevelopment
          Authority Health Care Revenue
          (Allina Health System)
          Series A 5.00% 11/15/18 (NATL-RE) 1,380,000 1,613,165
          Series A-1 5.25% 11/15/29 1,395,000 1,568,887
          (Childrens Health Care Facilities)
          Series A1 5.00% 8/15/34 (AGM) 500,000 551,790
          (Franciscan Health Elderly Project)
          5.40% 11/20/42 (GNMA) (FHA) 2,700,000 2,705,373
          (Health East Project)
          6.00% 11/15/30 2,775,000 2,931,621
          6.00% 11/15/35 2,500,000 2,626,075
          (Health Partners Obligation Group
          Project) 5.25% 5/15/36 2,000,000 2,090,740
          (Regions Hospital Project)
          5.30% 5/15/28 1,000,000 1,001,110
          (Senior Carondelet Village Project)
          Series A 6.00% 8/1/42 770,000 820,212
Washington County Housing &
          Redevelopment Authority
          Revenue (Birchwood & Woodbury
          Projects) Series A 5.625% 6/1/37 1,500,000 1,529,460
Wayzata Senior Housing Revenue
          (Folkestone Senior Living
          Community) Series A
          5.50% 11/1/32 420,000 434,204
          5.75% 11/1/39 945,000 987,251
          6.00% 5/1/47 1,475,000 1,555,845
Winona Health Care Facilities
          Revenue (Winona Health
          Obligated Group)
          4.65% 7/1/26 465,000 488,492
          4.75% 7/1/27 785,000 824,540
          5.00% 7/1/23 1,010,000 1,099,607
          5.00% 7/1/34 750,000 793,823
68,001,068
Housing Revenue Bonds – 6.65%
Minneapolis Multifamily
          Housing Revenue
        (Gaar Scott Loft Project)
          5.95% 5/1/30 (AMT)
          (LOC-U.S. Bank N.A.) 845,000 847,527
          (Olson Townhomes Project)
          6.00% 12/1/19 (AMT) 655,000 655,269
          (Seward Towers Project)
          5.00% 5/20/36 (GNMA) 2,000,000 2,057,320
          (Sumner Housing Project) Series A
          5.15% 2/20/45 (GNMA) (AMT) 2,000,000 2,021,840
Minnesota State Housing Finance
          Agency Revenue (Mortgage
          Backed Securities Program)
          4.40% 7/1/32 (GNMA)
          (FNMA) (FHLMC) 1,485,000 1,532,772
          (Rental Housing)
          Series A 5.00% 2/1/35 (AMT) 1,000,000 1,008,600
          (Residential Housing)
        Series D 4.75% 7/1/32 (AMT) 915,000 943,026
          Series I 5.15% 7/1/38 (AMT) 635,000 655,396
          Series L 5.10% 7/1/38 (AMT) 1,345,000 1,397,778
Washington County Housing &
          Redevelopment Authority
          Revenue (Woodland Park
          Apartments Project)
          4.70% 10/1/32 750,000 752,430
11,871,958
Lease Revenue Bonds – 8.72%
Andover Economic Development
          Authority Public Facilities
          Lease Revenue (Andover
          Community Center)
          5.125% 2/1/24 205,000 216,347
          5.20% 2/1/29 410,000 433,104

8



Principal
          Amount       Value
Municipal Bonds (continued)
Lease Revenue Bonds (continued)
St. Paul Port Authority Lease Revenue
          (Cedar Street Office Building Project)
          5.00% 12/1/22 $ 2,385,000 $ 2,404,080
          5.25% 12/1/27 2,800,000 2,820,804
          (Robert Street Office
          Building Project)  
          Series 3-11 5.00% 12/1/27 2,000,000 2,083,740
University of Minnesota
          Special Purpose Revenue
          (State Supported Biomed  
          Science Research)  
            5.00% 8/1/35 1,040,000 1,202,822
          5.00% 8/1/36 4,000,000   4,690,000
Virginia Housing & Redevelopment
          Authority Health Care Facility
          Lease Revenue  
          5.25% 10/1/25 680,000 707,778
          5.375% 10/1/30 965,000 1,014,688
15,573,363
Local General Obligation Bonds – 10.20%
City of Willmar (Rice Memorial  
          Hospital Project)
          Series A 4.00% 2/1/32 2,940,000 3,213,331
Dakota County Community
          Development Agency
          (Senior Housing Facilities)
          Series A 5.00% 1/1/23 1,100,000 1,203,565
Hopkins Independent School
          District #270 Series A 5.00% 2/1/28 1,000,000 1,212,720
Minneapolis Special School
          District #1 5.00% 2/1/19 (AGM) 1,175,000 1,191,920
Morris Independent School
          District #769 5.00% 2/1/28
          (NATL-RE) 3,750,000 3,803,999
Rocori Independent School District #750
          (School Building) Series B
          5.00% 2/1/22 1,010,000 1,202,052
          5.00% 2/1/24 1,075,000 1,264,125
          5.00% 2/1/25 1,115,000 1,306,167
          5.00% 2/1/26 1,155,000 1,347,943
Thief River Falls Independent School
          District # 564 (School Building)
          Series A 4.00% 2/1/32 1,160,000 1,288,296
Washington County Housing &
          Redevelopment Authority Series B
          5.50% 2/1/22 (NATL-RE) 525,000 526,901
          5.50% 2/1/32 (NATL-RE) 655,000 656,369
18,217,388
§Pre-Refunded/Escrowed to Maturity Bonds – 21.75%
Dakota-Washington Counties
          Housing & Redevelopment
          Authority Revenue
          (Bloomington Single Family
          Residential Mortgage)
          Series B 8.375% 9/1/21
          (GNMA) (FHA) (VA) (AMT) 7,055,000 10,387,570
Minneapolis-St. Paul Metropolitan
          Airports Commission Revenue
          Series A 5.00% 1/1/22-13 (NATL-RE) 600,000 607,488
Southern Minnesota Municipal
          Power Agency Supply
          Revenue Refunding
          Series A 5.75% 1/1/18-13 3,715,000 3,981,886
St. Paul Housing & Redevelopment
          Authority Sales Tax
          (Civic Center Project)
          5.55% 11/1/23 2,300,000 2,659,904
          5.55% 11/1/23 (NATL-RE) (IBC) 4,200,000 4,857,216
University of Minnesota Hospital &
          Clinics 6.75% 12/1/16 2,580,000 3,093,523
University of Minnesota Series A
          5.50% 7/1/21 4,000,000 5,047,280
          5.75% 7/1/18 2,500,000 3,134,175
Western Minnesota Municipal Power
          Agency Supply Revenue Series A
          5.00% 1/1/30-13 (NATL-RE) 5,000,000 5,062,250
38,831,292
Special Tax Revenue Bonds – 9.27%
Guam Government Business
          Privilege Tax Revenue
          Series A 5.25% 1/1/36 500,000 567,600
Hennepin County Sales Tax Revenue
          (Second Lien-Ballpark Project)
          Series B 4.75% 12/15/27 1,905,000 2,176,805
Minneapolis Community Planning &
          Economic Development
          Department (Limited Tax
          Supported Common Bond Fund)
          6.25% 12/1/30 1,000,000 1,240,980
          Series 1 5.50% 12/1/24 (AMT) 1,000,000 1,047,860
          Series 1 6.75% 12/1/25 (AMT) 865,000 869,377
          Series 5 5.70% 12/1/27 375,000 377,370
Minnesota Public Safety Radio
          5.00% 6/1/23 2,845,000 3,371,069
Puerto Rico Sales Tax
          Financing Revenue
        ^(Capital Appreciation) Series A
          5.73% 8/1/44 (NATL-RE) 8,485,000 1,398,498
          5.82% 8/1/45 (NATL-RE) 8,690,000 1,345,212
          First Subordinate
          Series A 5.75% 8/1/37 1,200,000 1,330,980
          Series A-1 5.00% 8/1/43 1,750,000 1,824,165

(continues)       9



Statements of net assets

Delaware Investments® Minnesota Municipal Income Fund II, Inc.

Principal
           Amount       Value  
Municipal Bonds (continued)
Special Tax Revenue Bonds (continued)            
St. Paul Port Authority (Brownsfields
          Redevelopment Tax) Series 2
            5.00% 3/1/37 $ 895,000 $ 1,007,627
16,557,543
State & Territory General Obligation Bonds – 9.85%
Minnesota State Refunding  
          (State Various Purpose)
          Series D 5.00% 8/1/24 2,700,000 3,441,744
Minnesota State (State Trunk Highway)
          Series B  
          5.00% 10/1/22 5,500,000 7,007,385
          5.00% 10/1/29 3,715,000 4,559,122
Puerto Rico Commonwealth
          Public Improvement Series A
          5.00% 7/1/41 1,000,000 1,004,910
          5.75% 7/1/41 1,500,000 1,572,915
17,586,076
Transportation Revenue Bonds – 2.16%
Minneapolis - St. Paul Metropolitan
          Airports Commission
          Revenue Series A
          5.00% 1/1/28 (NATL-RE) 1,335,000 1,342,676
          5.00% 1/1/35 (AMBAC) 2,000,000 2,081,061
St. Paul Port Authority Revenue
          (Amherst H. Wilder Foundation)
          Series 3 5.00% 12/1/36 380,000 424,642
3,848,379
Water & Sewer Revenue Bonds – 1.61%
Metropolitan Council Wastewater
          Series B 4.00% 9/1/27 1,145,000 1,288,469
St. Paul Sewer Revenue
          Series D 5.00% 12/1/21 1,325,000 1,582,328
2,870,797
 
Total Municipal Bonds
(cost $236,711,360) 255,081,927
 
Total Value of Securities – 142.88%
(cost $236,711,360) 255,081,927
†Liquidation Value of Preferred
Stock – (42.01%) (75,000,000 )
Liabilities Net of Receivables and
Other Assets – (0.87%) (1,549,431 )
Net Assets Applicable to 11,504,975
Shares Outstanding; Equivalent to
$15.52 Per Share – 100.00% $ 178,532,496
 
Components of Net Assets at September 30, 2012:
Common stock, $0.01 par value, 200 million shares
authorized to the Fund $ 157,931,075
Undistributed net investment income 1,716,382
Accumulated net realized gain on investments 514,472
Net unrealized appreciation of investments 18,370,567
Total net assets $ 178,532,496

Variable rate security. The rate shown is the rate as of September 30, 2012. Interest rates reset periodically.

§

Pre-refunded bonds. Municipal bonds that are generally backed or secured by U.S. Treasury bonds. For pre-refunded bonds, the stated maturity is followed by the year in which the bond is pre-refunded. See Note 9 in “Notes to financial statements.”

^

Zero coupon security. The rate shown is the yield at the time of purchase.

See Note 6 in “Notes to financial statements.”


Summary of Abbreviations:
AGM — Insured by Assured Guaranty Municipal Corporation
AMBAC — Insured by AMBAC Assurance Corporation
AMT — Subject to Alternative Minimum Tax
ASSURED GTY — Insured by Assured Guaranty Corporation
FHA — Federal Housing Administration
FHLMC — Federal Home Loan Mortgage Corporation collateral
FNMA — Federal National Mortgage Association collateral
GNMA — Government National Mortgage Association collateral
IBC — Insured Bond Certificate
LOC — Letter of Credit
NATL-RE — Insured by National Public Finance Guarantee Corporation
VA — Veterans Administration collateral

See accompanying notes, which are an integral part of the financial statements.

10



Delaware Investments® National Municipal Income Fund
September 30, 2012 (Unaudited)

Principal
          Amount       Value
Municipal Bonds – 142.25%
Corporate-Backed Revenue Bonds – 17.22%  
Buckeye, Ohio Tobacco Settlement
          Financing Authority Asset-Backed  
          Senior Turbo Series A-2
          5.875% 6/1/47 $ 480,000 $ 388,483
          6.50% 6/1/47 430,000 381,371
Delaware State Economic
          Development Authority Exempt  
          Facilities (Indian River Power)  
          5.375% 10/1/45 500,000 548,150
Golden State, California Tobacco
            Securitization Corporate Settlement  
          Revenue (Asset-Backed Senior
          Notes) Series A-1
          5.125% 6/1/47 370,000 286,003
          5.75% 6/1/47 1,615,000 1,382,456
Harris County, Texas Industrial  
          Development Solid Waste
          Disposal Revenue (Deer Park
          Refining Project) 5.00% 2/1/23 150,000 167,700
Illinois Railsplitter Tobacco Settlement  
          Authority 6.25% 6/1/24 500,000 563,060
Louisiana Local Government
          Environmental Facilities &
          Community Development  
          Authority (Westlake Chemical)
          Series A 6.50% 8/1/29 645,000 761,139
          Series A-1 6.50% 11/1/35 255,000 298,110
Maryland Economic Development
          Port Facilities Revenue (CNX
          Marine Terminals) 5.75% 9/1/25   260,000 283,442
M-S-R Energy Authority California
          Gas Series C 7.00% 11/1/34 1,000,000 1,378,730
Navajo County, Arizona Pollution
          Control Revenue
          Series D 5.75% 6/1/34 500,000 564,715
New Jersey Economic Development  
          Authority Special Facilities
          Revenue (Continental Airlines
          Project) 5.25% 9/15/29 (AMT) 500,000 511,080
New Jersey Tobacco Settlement
          Financing Series 1A 5.00% 6/1/41   1,000,000 835,320
New York Liberty Development
          Revenue (Goldman Sachs
          Headquarters) 5.25% 10/1/35 500,000 587,180
Ohio State Air Quality Development  
          Authority Revenue (First Energy
          Generation) Series A
          5.70% 8/1/20 260,000 304,556
Pennsylvania Economic Development  
          Financing Authority Exempt
          Facilities Revenue (Allegheny
          Energy Supply) 7.00% 7/15/39 345,000 414,062
Pima County, Arizona Industrial
          Development Authority Pollution  
          Control Revenue (Tucson Electric  
          Power San Juan) 5.75% 9/1/29 250,000 266,890
Salt Verde Financial, Arizona Gas
          Revenue Senior Note
          5.00% 12/1/37 400,000 440,116
St. John the Baptist Parish, Louisiana
          (Marathon Oil)
          Series A 5.125% 6/1/37 500,000 532,295
Suffolk County, New York Tobacco
          Asset Securitization
          Series B 5.00% 6/1/32 750,000 804,968
11,699,826
Education Revenue Bonds – 22.15%
Arizona Board of Regents System
          Revenue (University of Arizona)
          Series A 5.00% 6/1/39 500,000 554,795
Bowling Green, Ohio Student
          Housing Revenue (CFP I State
          University Project) 6.00% 6/1/45 270,000 291,835
California Statewide Communities
          Development Authority School
          Facility Revenue (Aspire Public
          Schools) 6.125% 7/1/46 625,000 647,056
California Statewide Communities
          Development Authority Student
          Housing Revenue (Irvine, LLC -
          UCI East Campus) 6.00% 5/15/23 470,000 525,986
Iowa Higher Education Loan
          Authority Revenue (Private
          College Facility) 5.00% 10/1/38 500,000 529,360
Lakeland Florida Educational Facilities
          Revenue (Florida Southern
          College) 5.00% 9/1/42 1,110,000 1,185,612
Marietta, Georgia Development
          Authority Revenue (Life University
          Project) 7.00% 6/15/39 430,000 452,184
Maryland Health & Higher
          Educational Facilities Authority
          (Loyola University) Series A
          5.00% 10/1/39 650,000 747,422
Maryland State Economic
          Development Student Housing
          Revenue (University of Maryland
          College Park Projects)
          5.75% 6/1/33 370,000 406,993
Massachusetts State Health &
          Educational Facilities Authority
          Revenue (Harvard University)
          Series A 5.00% 12/15/29 600,000 732,462
Metropolitan Government Nashville &
          Davidson Counties, Tennessee
          Health and Educational Facilities
          Building (Belmont University
          Project) 5.00% 11/1/29 515,000 565,645
Missouri State Health & Educational
          Facilities Authority Revenue
          (Washington University)
          Series B 5.00% 11/15/30 600,000 738,546

(continues)       11



Statements of net assets

Delaware Investments® National Municipal Income Fund

Principal
          Amount       Value
Municipal Bonds (continued)
Education Revenue Bonds (continued)
Monroe County, New York Industrial
          Development Revenue (Nazareth
          College Rochester Project)  
          5.50% 10/1/41 $ 500,000 $ 558,065
Montgomery County, Pennsylvania
          Higher Education & Health
            Authority Revenue (Arcadia  
          University) 5.25% 4/1/30 550,000 600,732
New Jersey Economic Development
          Authority Revenue (MSU Student
          Housing Project) 5.875% 6/1/42 735,000 819,606
New York City, New York Trust for
          Cultural Resources (Whitney
          Museum of American Art)
          5.00% 7/1/31   500,000 567,750
New York State Dormitory Authority  
          (Columbia University)
          5.00% 10/1/41 600,000 701,052
Oregon State Facilities Authority
          Revenue (CHF–Ashland)
          5.00% 7/1/44 (AGM) 1,000,000 1,082,180
        #(Concordia University Project)
          144A Series A 6.125% 9/1/30 135,000 147,227
Pennsylvania State Higher
          Educational Facilities Authority
          Student Housing Revenue
          (Edinboro University Foundation)
          5.80% 7/1/30 400,000 449,292
          (University Properties – East
          Stroudsburg University)
          5.25% 7/1/19 510,000 570,104
Phoenix, Arizona Industrial
          Development Authority Revenue
          (Rowan University) 5.00% 6/1/42 1,000,000 1,084,120
Private Colleges & Universities
          Authority Revenue (Mercer
          University Project) Series A
          5.00% 10/1/32 135,000 146,349
Troy, New York Capital Resource
          Revenue (Rensselaer Polytechnic)
          Series A 5.125% 9/1/40 600,000 667,176
Wyoming Community Development
          Authority Student Housing
          Revenue (CHF-Wyoming LLC)
          6.50% 7/1/43 250,000 277,433
15,048,982
Electric Revenue Bonds – 5.13%
Long Island, New York Power
          Authority Series A 5.00% 9/1/42 1,000,000 1,120,820
Puerto Rico Electric Power
          Authority Revenue
          Series A 5.00% 7/1/42 1,000,000 994,550
          Series WW 5.50% 7/1/38 200,000 209,774
          Series XX 5.25% 7/1/40 805,000 811,311
          Series ZZ 5.25% 7/1/26 330,000 348,688
3,485,143
Healthcare Revenue Bonds – 24.18%
Arizona Health Facilities Authority
          Revenue (Catholic Healthcare
          West) Series D 5.00% 7/1/28 500,000 547,445
Brevard County, Florida Health
          Facilities Authority Revenue
          (Heath First Project) 7.00% 4/1/39 90,000 112,014
Butler County, Pennsylvania Hospital
          Authority Revenue (Butler Health
          System Project) 7.125% 7/1/29 300,000 360,822
California State Health Facilities
          Financing Authority Revenue
          (Stanford Hospital Clinics)
          5.00% 8/15/42 1,000,000 1,123,899
California Statewide Communities
          Development Authority (Kaiser
          Permanente) Series A
          5.00% 4/1/42 1,000,000 1,102,980
Dauphin County, Pennsylvania
          General Authority Revenue
          (Pinnacle Health System Project)
          5.00% 6/1/42 770,000 832,840
Hawaii Pacific Health Special Purpose
          Revenue Series A 5.50% 7/1/40 300,000 329,007
Illinois Finance Authority Revenue
          (Silver Cross & Medical Centers)
          7.00% 8/15/44 450,000 540,212
Koyukuk, Alaska Revenue (Tanana
          Chiefs Conference Health Care
          Facility Project) 7.75% 10/1/41 300,000 329,499
Louisiana Public Facilities Authority
          Revenue (Ochsner Clinic
          Foundation Project) 6.50% 5/15/37 105,000 126,504
Lycoming County, Pennsylvania
          Authority Health System Revenue
          (Susquehanna Health System
          Project) Series A 5.50% 7/1/28 500,000 548,495
Maine Health & Higher Educational
          Facilities Authority Revenue
          (Maine General Medical Center)
          6.75% 7/1/41 300,000 353,505
Maricopa County, Arizona Industrial
          Development Authority Health
          Facilities Revenue (Catholic
          Healthcare West) Series A
          6.00% 7/1/39 500,000 577,060
Maryland Health & Higher Educational
          Facilities Authority Revenue
          (Carroll Hospital) Series A
          5.00% 7/1/37 500,000 554,320
Monroe County, Pennsylvania
          Hospital Authority Revenue
          (Pocono Medical Center) Series A
          5.00% 1/1/41 500,000 536,540
Montgomery County, Pennsylvania
          Industrial Development Authority
          Revenue (Mtg-Whitemarsh
          Continuing Care) 6.25% 2/1/35 675,000 686,516

12



Principal
          Amount       Value
Municipal Bonds (continued)
Healthcare Revenue Bonds (continued)
New Hampshire Health & Education
          Facilities Authority Revenue
          (Dartmouth-Hitchcock Medical
          Center) 6.00% 8/1/38 $ 300,000 $ 353,757
New Jersey Health Care Facilities    
          Financing Authority Revenue
          Refunding (St. Peters University
          Hospital) 6.25% 7/1/35 300,000 339,372
New Mexico State Hospital
          Equipment Loan Council Revenue
          (Presbyterian Healthcare)
          5.00% 8/1/39 500,000 541,935
New York State Dormitory Authority
          Revenue Non State Supported
            Debt (Orange Regional Medical
          Center) 6.25% 12/1/37 500,000 547,810
Ohio State Hospital Facilities Revenue
          Refunding (Cleveland Clinic
          Health) Series A 5.50% 1/1/39 300,000 337,479
Orange County Health Facilities  
          Authority Revenue (Mayflower
          Retirement Center)
          5.00% 6/1/32 400,000 419,628
          5.00% 6/1/36 250,000 259,883
          5.125% 6/1/42 750,000 786,330
Pennsylvania Higher Educational
          Facilities Authority Revenue
          (University of Pennsylvania Health
          System) Series A 5.00% 8/15/42 1,000,000 1,115,939
Philadelphia, Pennsylvania Hospitals &
          Higher Education Facilities
          Authority Revenue (Temple
          University Health System) Series A
          5.50% 7/1/30 300,000 314,139
University Medical Center, Tucson,
          Arizona Hospital Revenue
          6.50% 7/1/39 500,000 582,840
West Virginia Hospital Finance
          Authority (Highland Hospital
          Obligation Group) 9.125% 10/1/41 500,000 617,120
Yavapai County, Arizona Industrial
          Development Authority Revenue
          (Yavapai Regional Medical Center)
          Series A 5.25% 8/1/21 (RADIAN) 1,500,000 1,554,254
16,432,144
Housing Revenue Bonds – 2.47%
California Municipal Finance Authority
          Mobile Home Park Revenue
          (Caritas Projects) Series A
          5.50% 8/15/47 750,000 793,905
          6.40% 8/15/45 430,000 475,266
Florida Housing Finance Homeowner
          Mortgage Revenue Series 2
          5.90% 7/1/29 (NATL-RE) (AMT) 205,000 207,327
Puerto Rico Housing Finance
          Authority (Subordinated-Capital
          Fund Modernization)
          5.50% 12/1/18 175,000 204,829
1,681,327
Lease Revenue Bonds – 12.59%
California State Public Works Board
          Lease Revenue (Various Capital
          Projects) Series A 5.00% 4/1/37 1,000,000 1,090,420
Capital Area, Austin, Texas Cultural
          Education Facilities Finance
          Revenue (Roman Catholic
          Diocese) Series B 6.125% 4/1/45 105,000 115,910
Hudson Yards, New York
          Infrastructure Revenue Series A
          5.75% 2/15/47 1,100,000 1,301,080
Idaho State Building Authority
          Revenue (Health & Welfare
          Project) Series A 5.00% 9/1/24 135,000 167,597
          (State Police) Series I
          5.00% 9/1/23 760,000 944,596
New Jersey Economic Development
          Authority (School Facilities
          Construction) Series EE
          5.00% 9/1/18 100,000 121,192
New York City, New York Industrial
          Development Agency (Senior Trips)
          Series A 5.00% 7/1/28 (AMT) 250,000 265,143
New York Liberty Development
          Revenue (4 World Trade Center)
          5.75% 11/15/51 1,970,000 2,333,228
          (7 World Trade Center)
          Class 1 5.00% 9/15/40 360,000 411,124
          Class 2 5.00% 9/15/43 640,000 705,645
Pima County, Arizona Industrial
          Development Authority Metro
          Police Facility Revenue
          (Nevada Project) Series A
          5.25% 7/1/31 500,000 547,035
          5.375% 7/1/39 500,000 550,275
8,553,245
Local General Obligation Bonds – 3.61%
Gila County, Arizona Unified School
          District #10 (Payson School
          Improvement Project of 2006)
          Series A 5.25% 7/1/27 (AMBAC) 500,000 556,910
Maricopa County, Arizona School
          District #6 (Washington)
          Refunding Series A
          5.375% 7/1/13 (AGM) 1,250,000 1,297,375
New York City, New York
          Series A-1 5.25% 8/15/21 250,000 307,015
          Series I-1 5.375% 4/1/36 250,000 290,560
2,451,860

(continues)       13



Statements of net assets

Delaware Investments® National Municipal Income Fund

Principal
          Amount       Value
Municipal Bonds (continued)
§Pre-Refunded Bond – 1.86%
Salt River Project, Arizona
          Agricultural Improvement &  
          Power District Revenue Series B    
          5.00% 1/1/25-13 $ 1,250,000 $ 1,265,600
  1,265,600
Special Tax Revenue Bonds – 18.41%
Anne Arundel County, Maryland
          Special Obligation Revenue
          (National Business Park-North
          Project) 6.10% 7/1/40 200,000 217,132
Brooklyn Arena Local Development,
          New York Pilot Revenue
          (Barclays Center Project)
          6.25% 7/15/40 940,000 1,096,585
          6.50% 7/15/30 300,000 360,495
California State Economic Recovery
          Series A 5.25% 7/1/21 260,000 320,874
California Statewide Communities
          Development Authority Revenue
          (Statewide Inland Regional Center
            Project) 5.375% 12/1/37 500,000 511,390
Glendale, Arizona Municipal Property
          Series A 5.00% 7/1/33 (AMBAC) 1,000,000 1,014,880
Guam Government Business Privilege
          Tax Revenue Series B-1
          5.00% 1/1/42 1,000,000 1,108,100
Massachusetts Bay Transportation
          Authority Senior Series A
          5.25% 7/1/29 200,000 271,128
Miami-Dade County, Florida Special
          Obligation (Capital Appreciation &
          Income) 5.00% 10/1/35 (NATL-RE) 1,000,000 1,050,210
Mosaic District, Virginia Community
          Development Authority Series A
          6.875% 3/1/36 520,000 588,635
New York City, New York Industrial
          Development Agency Civic Facility
          Revenue (YMCA of Greater New
          York Project) 5.00% 8/1/36 1,000,000 1,050,310
New York State Dormitory Authority
          (State Personal Income Tax
          Revenue-Education) Series A
          5.00% 3/15/38 570,000 657,427
Peoria, Arizona Municipal
          Development Authority Sales Tax &
          Excise Shared Revenue (Senior
          Lien & Subordinate Lien)
          5.00% 1/1/18 1,085,000 1,286,863
Puerto Rico Sales Tax Financing
          Revenue Series C 5.00% 8/1/40 600,000 648,228
          First Subordinated
          Series A 5.75% 8/1/37 245,000 271,742
          Series C 6.00% 8/1/39 300,000 337,341
       W(Convertible Capital Appreciation
          Bonds) 6.75% 8/1/32 220,000 228,012
San Mateo, California Special Tax
          Community Facilities District
        #2008-1 (Bay Meadows)
          6.00% 9/1/42 95,000 103,756
Virginia Public Building Authority
          Series A 5.00% 8/1/26 1,000,000 1,218,900
^ Wyandotte County, Kansas City,
          Kansas Unified Government
          Special Obligation Revenue
          (Capital Appreciation) Sales Tax
          Subordinate Lien Series B
          6.07% 6/1/21 250,000 170,093
12,512,101
State & Territory General Obligation Bonds – 9.53%
California State Various Purposes
          5.00% 9/1/41 460,000 510,071
          5.00% 10/1/41 440,000 488,286
          5.25% 11/1/40 320,000 367,536
          6.00% 4/1/38 105,000 125,658
New Jersey Economic Development
          Authority Revenue
          5.00% 6/15/28 200,000 222,164
          5.00% 6/15/29 800,000 883,144
New York State Series A
          5.00% 2/15/39 300,000 351,261
Oregon State Series K 5.00% 5/1/22 1,000,000 1,296,970
Puerto Rico Commonwealth
          (Public Improvement) Series A
          5.00% 7/1/41 1,100,000 1,105,401
          5.50% 7/1/39 235,000 243,140
          5.75% 7/1/41 500,000 524,305
          Series C 6.00% 7/1/39 335,000 354,276
6,472,212
Transportation Revenue Bonds – 19.44%
Bay Area, California Toll Authority
          Revenue (San Francisco Bay Area)
          5.00% 4/1/27 750,000 915,825
Central Texas Regional Mobility
          Authority Revenue Senior Lien
          6.00% 1/1/41 520,000 608,436
Harris County, Texas Metropolitan
          Transit Authority Series A
          5.00% 11/1/24 500,000 613,025
Maryland State Economic
          Development Revenue
          (Transportation Facilities Project)
          Series A 5.75% 6/1/35 255,000 279,898
Metropolitan Transportation
          Authority, New York
          Series A 5.00% 11/15/41 500,000 556,305
          Series E 4.00% 11/15/38 1,000,000 1,030,150

14



Principal
          Amount       Value  
Municipal Bonds (continued)
Transportation Revenue Bonds (continued)
Metropolitan Washington D.C.
          Airports Authority Dulles Toll
          Road Revenue (First Senior Lien)
          Series A 5.25% 10/1/44 $ 245,000 $ 272,648  
New York Liberty Development
          Revenue (1 World Trade Center
          Port Authority Construction)
          5.00% 12/15/41 500,000 563,435
North Texas Tollway Authority Special
          Projects System Series A
          5.00% 9/1/20 250,000 311,720
Pennsylvania Turnpike Commission    
          Subordinate (Special Motor
          License Fund)
          5.00% 12/1/22 500,000 600,980
          Series B 5.00% 12/1/41 500,000 564,470
Phoenix, Arizona Civic Improvement
          Airport Revenue (Senior Lien)  
          Series B 5.25% 7/1/27 (NATL-RE)
          (FGIC) (AMT) 1,000,000 1,001,570
Port Authority of New York & New  
          Jersey Special Obligation Revenue
          (JFK International Air Terminal)
          6.00% 12/1/42 230,000 268,691
          6.50% 12/1/28 500,000 548,540
Regional Transportation, Colorado
          District Revenue (Denver Transit
          Partners) 6.00% 1/15/41 500,000 580,735
St. Louis, Missouri Airport Revenue
          (Lambert St. Louis International)
          5.00% 7/1/32 (AMT) 1,000,000 1,073,800
          Series A-1 6.625% 7/1/34 325,000 385,739
Texas Private Activity Bond Surface
          Transportation Senior
          Lien Revenue
          (LBJ Infrastructure)
          7.00% 6/30/40 285,000 349,610
          7.50% 6/30/33 665,000 847,888
          (NTE Mobility Partners)
          6.875% 12/31/39 1,000,000 1,206,001
          7.50% 12/31/31 500,000 628,230
13,207,696
Water & Sewer Revenue Bonds – 5.66%
Atlanta, Georgia Water &
          Wastewater Revenue Series A
          6.25% 11/1/39 800,000 964,952
New York City, New York Municipal
          Water Finance Authority (Second
          Generation Resolution) Fiscal
          2012 Series BB 5.25% 6/15/44 525,000 616,912
Phoenix, Arizona Civic Improvement
          Wastewater Systems Revenue
          (Junior Lien) Series A
          5.00% 7/1/39 900,000 1,037,142
San Francisco, California City &
          County Public Utilities
          Commission Subordinate Series F
          5.00% 11/1/27 500,000 600,660
Texas State Series C 5.00% 8/1/22 500,000 628,555
3,848,221
Total Municipal Bonds
(cost $88,585,350) 96,658,357
   
Short-Term Investments – 1.10%
¤Variable Rate Demand Notes – 1.10%
Colorado Educational & Cultural
          Facilities Authority Revenue
          (National Jewish Federation
          Bond Program) Series D-7 0.20%
          2/1/35 (LOC-JPMorgan Chase
          Bank N.A.) 500,000 500,000
St. Paul, Minnesota Port Authority
          Revenue (Minnesota Public Radio
          Project) Series 7 0.21% 5/1/25
          (LOC-JPMorgan Chase Bank N.A.) 250,000 250,000
Total Short-Term Investments
(cost $750,000) 750,000
 
Total Value of Securities – 143.35%
  (cost $89,335,350) 97,408,357
†Liquidation Value of Preferred
Stock – (44.15%) (30,000,000 )
Receivables and Other Assets
Net of Liabilities – 0.80% 541,671
Net Assets Applicable to 4,528,443
Shares Outstanding; Equivalent to
$15.01 Per Share – 100.00% $ 67,950,028
 
Components of Net Assets at September 30, 2012:
Common stock, $0.01 par value, unlimited shares
authorized to the Fund $ 60,617,476
Undistributed net investment income 648,862
Accumulated net realized loss on investments (1,389,317 )
Net unrealized appreciation of investments 8,073,007
Total net assets $ 67,950,028

(continues)       15



Statements of net assets

Delaware Investments® National Municipal Income Fund

   
Variable rate security. The rate shown is the rate as of September 30, 2012. Interest rates reset periodically.
# Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended. At September 30, 2012, the aggregate value of Rule 144A securities was $147,227, which represented 0.22% of the Fund’s net assets. See Note 9 in “Notes to financial statements.”
§ Pre-refunded bonds. Municipal bonds that are generally backed or secured by U.S. Treasury bonds. For pre-refunded bonds, the stated maturity is followed by the year in which the bond is pre-refunded. See Note 9 in “Notes to financial statements.”
Ω Step coupon bond. Indicates security that has a zero coupon that remains in effect until a predetermined date at which time the stated interest rate becomes effective.
^ Zero coupon security. The rate shown is the yield at the time of purchase.
¤ Tax-exempt obligations that contain a floating or variable interest rate adjustment formula and an unconditional right of demand to receive payment of the unpaid principal balance plus accrued interest upon a short notice period (generally up to 30 days) prior to specified dates either from the issuer or by drawing on a bank letter of credit, a guarantee or insurance issued with respect to such instrument.
See Note 6 in “Notes to financial statements.”

Summary of Abbreviations:
AGM — Insured by Assured Guaranty Municipal Corporation
AMBAC — Insured by AMBAC Assurance Corporation
AMT — Subject to Alternative Minimum Tax
FGIC — Insured by Financial Guaranty Insurance Company
LOC — Letter of Credit
NATL-RE — Insured by National Public Finance Guarantee Corporation
RADIAN — Insured by Radian Asset Assurance

See accompanying notes, which are an integral part of the financial statements.

16



Statements of assets and liabilities

Delaware Investments® Closed-End Municipal Bond Funds
September 30, 2012 (Unaudited)

Delaware Delaware Delaware
Investments Investments Investments
Colorado Minnesota National
Municipal Municipal Municipal
Income Income Income
      Fund, Inc.       Fund II, Inc.       Fund
Assets:
       Investments, at value $ 104,512,878 $ 255,081,927 $ 96,658,357
       Short-term investments, at value 750,000
       Cash 206,904 1,342,667 165,765
       Receivable for securities sold 2,447,240 15,221
       Interest income receivable 1,370,568 3,518,020 1,291,741
       Organization expense for preferred shareholders 211,242 362,284 60,212
       Other assets 218,403
       Total assets 106,301,592 262,752,138 99,159,699
 
Liabilities:
       Liquidation value of preferred stock 30,000,000 75,000,000 30,000,000
       Payable for securities purchased 8,367,462 893,558
       Due to manager and affiliates 36,099 86,615 33,412
       Other accrued expenses 19,613 19,938
       Distributions payable 756,783 745,627 282,701
       Total liabilities 30,812,495 84,219,642 31,209,671
 
Total net assets $ 75,489,097 $ 178,532,496 $ 67,950,028
 
       Investments, at cost $ 96,709,911 $ 236,711,360 $ 88,585,350
       Short-term investments, at cost 750,000

See accompanying notes, which are an integral part of the financial statements.

17



Statements of operations

Delaware Investments® Closed-End Municipal Bond Funds
Six Months Ended September 30, 2012 (Unaudited)

Delaware Delaware Delaware
Investments Investments Investments
Colorado Minnesota National
Municipal Municipal Municipal
Income Income Income
      Fund, Inc.       Fund II, Inc.       Fund
Investment Income:
       Interest $ 2,319,932 $ 5,444,837 $ 2,122,895
 
Expenses:
       Management fees 209,552 502,631 192,547
       Legal fees 31,205 69,796 60,517
       Accounting and administration expenses 20,392 48,912 18,737
       Dividend disbursing and transfer agent fees and expenses 18,065 36,428 21,649
       Rating agency fees 15,848 15,631 15,835
       Audit and tax 8,762 10,539 8,813
       Reports and statements to shareholders 7,456 12,644 8,518
       Pricing fees 3,508 5,648 6,936
       Taxes (Pennsylvania franchise tax) 2,500 6,000
       Stock exchange fees 2,339 5,616 2,045
       Directors’/Trustees’ fees 1,624 3,828 1,435
       Dues and services 702 1,954 1,006
       Custodian fees 653 1,602 739
       Insurance fees 511 1,883 607
       Consulting fees 390 906 311
       Registration fees 308 308 308
       Directors’/Trustees’ expenses 57 143 48
       Total operating expenses 323,872 724,469 340,051
Net Investment Income 1,996,060 4,720,368 1,782,844
 
Net Realized and Unrealized Gain:
       Net realized gain on investments 20,905 642,526 333,320
       Net change in unrealized appreciation (depreciation) of investments 3,183,782 5,823,264 3,821,951
Net Realized and Unrealized Gain 3,204,687 6,465,790 4,155,271
 
Dividends and Distributions to Preferred Shareholders (211,226 ) (519,009 ) (207,603 )
Net Increase in Net Assets Resulting from Operations $ 4,989,521 $ 10,667,149 $ 5,730,512

See accompanying notes, which are an integral part of the financial statements.

18



Statements of changes in net assets

Delaware Investments® Closed-End Municipal Bond Funds

Delaware Investments Delaware Investments
Colorado Municipal Minnesota Municipal
Income Fund, Inc. Income Fund II, Inc.
Six Months Year Six Months Year
      Ended       Ended       Ended       Ended
9/30/12 3/31/12 9/30/12 3/31/12
(Unaudited) (Unaudited)
Increase (Decrease) in Net Assets from Operations:
       Net investment income $ 1,996,060 $ 3,233,923 $ 4,720,368 $ 7,747,076
       Net realized gain 20,905 976,769 642,526 1,701,330
       Net change in unrealized appreciation (depreciation) 3,183,782 6,668,604 5,823,264 11,778,378
       Dividends and distributions to preferred shareholders (211,226 ) (149,762 ) (519,009 ) (374,404 )
       Net increase in net assets resulting from operations 4,989,521 10,729,534 10,667,149 20,852,380
 
Dividends and Distributions to Common Shareholders from:
       Net investment income (1,668,800 ) (2,805,518 ) (3,969,216 ) (6,672,886 )
       Net realized gain (445,013 )
  (2,113,813 ) (2,805,518 ) (3,969,216 ) (6,672,886 )
 
Net Increase in Net Assets 2,875,708 7,924,016 6,697,933 14,179,494
 
Net Assets:
       Beginning of period 72,613,389 64,689,373 171,834,563 157,655,069
       End of period $ 75,489,097 $ 72,613,389 $ 178,532,496 $ 171,834,563
 
       Undistributed net investment income $ 711,778 $ 598,215 $ 1,716,382 $ 1,504,205

Delaware Investments
National Municipal
Income Fund
Six Months Year
Ended Ended
      9/30/12       3/31/12
(Unaudited)
Increase (Decrease) in Net Assets from Operations:
       Net investment income $ 1,782,844 $ 2,343,640
       Net realized gain 333,320 909,697
       Net change in unrealized appreciation (depreciation) 3,821,951 4,515,112
       Dividends and distributions to preferred shareholders (207,603 ) (18,904 )
       Net increase in net assets resulting from operations 5,730,512 7,749,545
 
Dividends and Distributions to Common Shareholders from:
       Net investment income (1,267,964 ) (2,295,215 )
       Net realized gain
  (1,267,964 ) (2,295,215 )
 
Capital Share Transactions:
       Net assets from merger to Common Shareholders* 40,715,147
       Tender offer** (13,240,759 )
  27,474,388
 
Net Increase in Net Assets 4,462,548 32,928,718
 
Net Assets:
       Beginning of period 63,487,480 30,558,762
       End of period $ 67,950,028 $ 63,487,480
 
       Undistributed net investment income $ 648,862 $ 376,432

* See Note 7 in “Notes to financial statements.”
** See Note 6 in “Notes to financial statements.”

See accompanying notes, which are an integral part of the financial statements.

19



Financial highlights

Delaware Investments® Colorado Municipal Income Fund, Inc.

Selected data for each share of the Fund outstanding throughout each period were as follows:

Six Months
Ended Year Ended
9/30/121 3/31/12 3/31/11 3/31/10 3/31/09 3/31/08
(Unaudited)
Net asset value, beginning of period          $15.010               $13.370      $13.990      $13.220      $14.260      $15.100     
 
Income (loss) from investment operations:
Net investment income 0.413 0.669 0.601 0.607 0.755 0.937
Net realized and unrealized gain (loss) 0.668 1.582 (0.651 ) 0.733 (0.965 ) (0.604 )
Dividends and distributions on preferred stock from:
       Net investment income (0.044 ) (0.031 ) (0.173 ) (0.264 )
       Net realized gain (0.050 )
Total dividends and distributions on preferred stock (0.044 ) (0.031 ) (0.173 ) (0.314 )
Total from investment operations 1.037 2.220 (0.050 ) 1.340 (0.383 ) 0.019
 
Less dividends and distributions to common shareholders from:
Net investment income (0.345 ) (0.580 ) (0.570 ) (0.570 ) (0.657 ) (0.720 )
Net realized gain (0.092 ) (0.139 )
Total dividends and distributions (0.437 ) (0.580 ) (0.570 ) (0.570 ) (0.657 ) (0.859 )
 
Net asset value, end of period $15.610 $15.010 $13.370 $13.990 $13.220 $14.260
 
Market value, end of period $15.150 $14.600 $12.450 $13.390 $11.240 $15.060
 
Total investment return based on:2
Market value 6.72% 22.41% (3.00% ) 24.49% (21.63% ) (0.14% )
Net asset value 6.96% 17.19% (0.30% ) 10.55% (2.66% ) (0.19% )
 
Ratios and supplemental data:
Net assets applicable to common shares, end of period (000 omitted) $75,489 $72,613 $64,689 $67,651 $63,952 $68,973
Ratio of expenses to average net assets applicable to common shares3 0.87% 0.73% 0.56% 0.56% 0.91% 1.03%
Ratio of net investment income to average net assets
       applicable to common shares3 5.34% 4.68% 4.31% 4.41% 5.55% 6.37%
Ratio of net investment income to average net assets
       applicable to common shares net of dividends to preferred shares4 4.78% 4.46% 4.31% 4.41% 4.28% 4.23%
Portfolio turnover 2% 64% 10% 20% 16% 16%
 
Leverage analysis:
Value of preferred shares outstanding (000 omitted)5 $30,000 $30,000 $— $— $— $40,000
Net asset coverage per share of preferred shares, end of period5 $351,630 $342,045 $— $— $— $136,216
Liquidation value per share of preferred shares5,6 $100,000 $100,000 $— $— $— $50,000

1 Ratios have been annualized and total return and portfolio turnover have not been annualized.
2 Total investment return is calculated assuming a purchase of common stock on the opening of the first day and a sale on the closing of the last day of each period reported. Dividends and distributions, if any, are assumed for the purposes of this calculation to be reinvested at prices obtained under the Fund’s dividend reinvestment plan. Generally, total investment return based on net asset value will be higher than total investment return based on market value in periods where there is an increase in the discount or a decrease in the premium of the market value to the net asset value from the beginning to the end of such periods. Conversely, total investment return based on net asset value will be lower than total investment return based on market value in periods where there is a decrease in the discount or an increase in the premium of the market value to the net asset value from the beginning to the end of such periods.
3 Ratios do not reflect the effect of dividend payments to preferred shareholders, if applicable.
4 Ratio reflects total net investment income less dividends paid to preferred shareholders, if applicable, divided by average net assets applicable to common shareholders.
5 In 2008, the Fund redeemed all of its preferred shares at par plus accumulated dividends amounting to $40,042,778. In November 2011, the Fund issued a new series of 300 variable rate preferred shares, with a liquidation preference of $100,000 per share.
6 Excluding any accumulated but unpaid dividends.

See accompanying notes, which are an integral part of the financial statements.

20



Delaware Investments® Minnesota Municipal Income Fund II, Inc.

Selected data for each share of the Fund outstanding throughout each period were as follows:

    Six Months                              
Ended Year Ended
9/30/121 3/31/12 3/31/11 3/31/10 3/31/09 3/31/08
     (Unaudited)                                   
Net asset value, beginning of period     $14.940     $13.700 $14.060 $13.140 $14.190 $14.880
 
Income (loss) from investment operations:
Net investment income 0.410 0.673 0.612 0.602 0.776 0.962
Net realized and unrealized gain (loss) 0.560 1.180 (0.402 ) 0.888 (1.013 ) (0.674 )
Dividends and distributions on preferred stock from:
       Net investment income (0.045 ) (0.033 ) (0.175 ) (0.318 )
Total dividends and distributions on preferred stock (0.045 ) (0.033 ) (0.175 ) (0.318 )
Total from investment operations 0.925 1.820 0.210 1.490 (0.412 ) (0.030 )
 
Less dividends to common shareholders from:
Net investment income (0.345 ) (0.580 ) (0.570 ) (0.570 ) (0.638 ) (0.660 )
Total dividends (0.345 ) (0.580 ) (0.570 ) (0.570 ) (0.638 ) (0.660 )
 
Net asset value, end of period $15.520 $14.940 $13.700 $14.060 $13.140 $14.190
 
Market value, end of period $15.420 $14.230 $12.600 $12.740 $11.250 $13.450
 
Total investment return based on:2
Market value 10.87% 17.95% 3.32% 18.58% (11.91% ) (3.58% )
Net asset value 6.29% 13.90% 1.80% 12.04% (2.48% ) 0.08%
 
Ratios and supplemental data:
Net assets applicable to common shares, end of period (000 omitted) $178,532 $171,835 $157,655 $161,723 $151,184 $163,305
Ratio of expenses to average net assets applicable to common shares3,5 0.82% 0.70% 0.56% 0.56% 0.98% 1.18%
Ratio of net investment income to average net assets
       applicable to common shares3 5.36% 4.67% 4.35% 4.36% 5.74% 6.61%
Ratio of net investment income to average net assets
       applicable to common shares net of dividends to preferred shares4 4.77% 4.44% 4.35% 4.36% 4.45% 4.43%
Portfolio turnover 11% 44% 9% 19% 15% 6%
 
Leverage analysis:
Value of preferred shares outstanding (000 omitted)6 $75,000 $75,000 $— $— $— $95,000
Net asset coverage per share of preferred shares, end of period6 $338,043 $329,113 $— $— $— $135,950
Liquidation value per share of preferred shares6,7 $100,000 $100,000 $— $— $— $50,000

1 Ratios have been annualized and total return and portfolio turnover have not been annualized.
2 Total investment return is calculated assuming a purchase of common stock on the opening of the first day and a sale on the closing of the last day of each period reported. Dividends and distributions, if any, are assumed for the purposes of this calculation to be reinvested at prices obtained under the Fund’s dividend reinvestment plan. Generally, total investment return based on net asset value will be higher than total investment return based on market value in periods where there is an increase in the discount or a decrease in the premium of the market value to the net asset value from the beginning to the end of such periods. Conversely, total investment return based on net asset value will be lower than total investment return based on market value in periods where there is a decrease in the discount or an increase in the premium of the market value to the net asset value from the beginning to the end of such periods.
3 Ratios do not reflect the effect of dividend payments to preferred shareholders, if applicable.
4 Ratio reflects total net investment income less dividends paid to preferred shareholders, if applicable, divided by average net assets applicable to common shareholders.
5 The ratio of expenses to average net assets applicable to common shares includes interest and related expenses which include, but are not limited to, interest expense, remarketing fees, liquidity fees, and trustees’ fees in connection with the Fund’s participation in inverse floater programs for the years ended March 31, 2009 and 2008. See Notes 1 and 8 in “Notes to financial statements.”
6 In 2008, the Fund redeemed all of its preferred shares at par plus accumulated dividends amounting to $95,083,577. In November 2011, the Fund issued a new series of 750 variable rate preferred shares, with a liquidation preference of $100,000 per share.
7 Excluding any accumulated but unpaid dividends.

See accompanying notes, which are an integral part of the financial statements.

(continues)       21



Financial highlights

Delaware Investments® National Municipal Income Fund

Selected data for each share of the Fund outstanding throughout each period were as follows:

Six Months
Ended Year Ended
9/30/121 3/31/12 3/31/11 3/31/10 3/31/09 3/31/08
(Unaudited)
Net asset value, beginning of period          $14.020               $12.620      $13.070      $11.960      $13.360      $14.560     
 
Income (loss) from investment operations:
Net investment income 0.394 0.535 0.610 0.571 0.704 0.919
Net realized and unrealized gain (loss) 0.922 1.409 (0.532 ) 1.049 (1.367 ) (1.081 )
Dividends and distributions on preferred stock from:
       Net investment income (0.046 ) (0.004 ) (0.172 ) (0.311 )
       Net realized gain (0.015 )
Total dividends and distributions on preferred stock (0.046 ) (0.004 ) (0.172 ) (0.326 )
Total from investment operations 1.270 1.940 0.078 1.620 (0.835 ) (0.488 )
 
Less dividends and distributions to common shareholders from:
Net investment income (0.280 ) (0.540 ) (0.528 ) (0.510 ) (0.565 ) (0.668 )
Net realized gain (0.044 )
Total dividends and distributions (0.280 ) (0.540 ) (0.528 ) (0.510 ) (0.565 ) (0.712 )
 
Net asset value, end of period $15.010 $14.020 $12.620 $13.070 $11.960 $13.360
 
Market value, end of period $14.180 $13.240 $12.200 $12.140 $10.850 $11.950
 
Total investment return based on:2
Market value 9.28% 13.19% 4.78% 16.69% (4.31% ) (13.11% )
Net asset value 9.24% 15.87% 0.67% 13.97% (5.65% ) (3.05% )
 
Ratios and supplemental data:
Net assets applicable to common shares, end of period (000 omitted) $67,950 $63,487 $30,559 $31,650 $28,967 $32,365
Ratio of expenses to average net assets applicable to common shares3 1.03% 0.99% 0.65% 0.63% 1.06% 1.16%
Ratio of net investment income to average net assets
       applicable to common shares3 5.39% 3.99% 4.64% 4.48% 5.63% 6.54%
Ratio of net investment income to average net assets
       applicable to common shares net of dividends to preferred shares4 4.76% 3.96% 4.64% 4.48% 4.25% 4.22%
Portfolio turnover 19% 101% 50% 69% 36% 17%
 
Leverage analysis:
Value of preferred shares outstanding (000 omitted)5 $30,000 $30,000 $— $— $— $20,000
Net asset coverage per share of preferred shares, end of period5 $326,500 $311,625 $— $— $— $130,914
Liquidation value per share of preferred shares5,6 $100,000 $100,000 $— $— $— $50,000

1 Ratios have been annualized and total return and portfolio turnover have not been annualized.
2 Total investment return is calculated assuming a purchase of common stock on the opening of the first day and a sale on the closing of the last day of each period reported. Dividends and distributions, if any, are assumed for the purposes of this calculation to be reinvested at prices obtained under the Fund’s dividend reinvestment plan. Generally, total investment return based on net asset value will be higher than total investment return based on market value in periods where there is an increase in the discount or a decrease in the premium of the market value to the net asset value from the beginning to the end of such periods. Conversely, total investment return based on net asset value will be lower than total investment return based on market value in periods where there is a decrease in the discount or an increase in the premium of the market value to the net asset value from the beginning to the end of such periods.
3 Ratios do not reflect the effect of dividend payments to preferred shareholders, if applicable.
4 Ratio reflects total net investment income less dividends paid to preferred shareholders, if applicable, divided by average net assets applicable to common shareholders.
5 In 2008, the Fund redeemed all of its preferred shares at par plus accumulated dividends amounting to $20,019,516. In March 2012, the Fund issued a new series of 300 variable rate preferred shares, with a liquidation preference of $100,000 per share.
6 Excluding any accumulated but unpaid dividends.

See accompanying notes, which are an integral part of the financial statements.

22



Notes to financial statements

Delaware Investments® Closed-End Municipal Bond Funds
September 30, 2012 (Unaudited)

Delaware Investments Colorado Municipal Income Fund, Inc. (Colorado Municipal Fund) and Delaware Investments Minnesota Municipal Income Fund II, Inc. (Minnesota Municipal Fund II) are organized as Minnesota corporations and Delaware Investments National Municipal Income Fund (National Municipal Fund) is organized as a Massachusetts business trust (each referred to as a Fund and collectively as the Funds). Colorado Municipal Fund, Minnesota Municipal Fund II and National Municipal Fund are considered diversified closed-end management investment companies under the Investment Company Act of 1940, as amended. The Funds’ shares trade on the NYSE MKT, the successor to the American Stock Exchange.

The investment objective of each Fund is to provide current income exempt from federal income tax and from state personal income tax, if any, consistent with the preservation of capital. Each of Colorado Municipal Fund and Minnesota Municipal Fund II seek to achieve its investment objective by investing substantially all of its net assets in investment grade, tax-exempt municipal obligations of its respective state at the time of investment. The National Municipal Fund seeks to achieve its investment objective by investing at least 80% of its net assets in securities the income from which is exempt from federal income tax.

1. Significant Accounting Policies

The following accounting policies are in accordance with U.S. generally accepted accounting principles (U.S. GAAP) and are consistently followed by the Funds.

Security Valuation — Debt securities are valued based upon valuations provided by an independent pricing service or broker and reviewed by management. To the extent current market prices are not available, the pricing service may take into account developments related to the specific security, as well as transactions in comparable securities. Valuations for fixed income securities utilize matrix systems, which reflect such factors as security prices, yields, maturities, and ratings, and are supplemented by dealer and exchange quotations. Generally, other securities and assets for which market quotations are not readily available are valued at fair value as determined in good faith under the direction of each Fund’s Board of Directors/Trustees (each a Board, and collectively, the Boards). In determining whether market quotations are readily available or fair valuation will be used, various factors will be taken into consideration, such as market closures or suspension of trading in a security.

Federal Income Taxes — No provision for federal income taxes has been made as each Fund intends to continue to qualify for federal income tax purposes as a regulated investment company under Subchapter M of the Internal Revenue Code of 1986, as amended, and make the requisite distributions to shareholders. The Funds evaluate tax positions taken or expected to be taken in the course of preparing the Funds’ tax returns to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold are recorded as a tax benefit or expense in the current year. Management has analyzed the Funds’ tax positions taken for all open federal income tax years and has concluded that no provision for federal income tax is required in the Funds’ financial statements.

Interest and Related Expenses — Interest and related expenses include, but are not limited to, interest expense, remarketing fees, liquidity fees, and trustees’ fees from the Funds’ participation in inverse floater programs where a Fund has transferred its own bonds to a trust that issues floating rate securities with an aggregate principal amount equal to the principal of the transferred bonds. In conveyance of the bond, the Funds receive the inverse floating rate securities and cash from the trust. As a result of certain rights retained by the Funds, the transfer of the bond is not considered a sale, but rather a form of financing for accounting purposes whereby the cash received is recorded as a liability and interest expense is recorded based on the interest rate of the floating rate securities. Remarketing fees, liquidity fees, and trustees’ expenses are recorded on the accrual basis. There were no interest and related expenses for the six months ended September 30, 2012.

Use of Estimates — The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the fair value of investments, the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates and the differences could be material.

Other — Expenses directly attributable to a Fund are charged directly to that Fund. Other expenses common to various funds within the Delaware Investments® Family of Funds are generally allocated amongst such funds on the basis of average net assets. Management fees and some other expenses are paid monthly. Security transactions are recorded on the date the securities are purchased or sold (trade date) for financial reporting purposes. Costs used in calculating realized gains and losses on the sale of investment securities are those of the specific securities sold. Interest income is recorded on the accrual basis. Discounts and premiums on debt securities are amortized to interest income over the lives of the respective securities using the effective interest method. Each Fund declares and pays dividends from net investment income monthly and distributions from net realized gain on investments, if any, annually. Each Fund may distribute income dividends and capital gains more frequently, if necessary for tax purposes. Dividends and distributions, if any, are recorded on the ex-dividend date.

The Funds may receive earnings credits from their custodian when positive cash balances are maintained, which are used to offset custody fees. There were no earnings credits for the six months ended September 30, 2012.

The Funds may receive earnings credits from their transfer agent when positive cash balances are maintained, which are used to offset transfer agent fees. There were no earnings credits for the six months ended September 30, 2012.

(continues)       23



Notes to financial statements

Delaware Investments® Closed-End Municipal Bond Funds

2. Investment Management, Administration Agreements and Other Transactions with Affiliates

In accordance with the terms of its respective investment management agreement, each Fund pays Delaware Management Company (DMC), a series of Delaware Management Business Trust and the investment manager, an annual fee of 0.40% which is calculated daily based on the adjusted average daily net assets of each Fund.

Delaware Service Company, Inc. (DSC), an affiliate of DMC, provides fund accounting and financial administration oversight services to the Funds. For these services, the Funds pay DSC fees based on the aggregate daily net assets of the Delaware Investments® Family of Funds at the following annual rate: 0.0050% of the first $30 billion; 0.0045% of the next $10 billion; 0.0040% of the next $10 billion; and 0.0025% of aggregate average daily net assets in excess of $50 billion. The fees payable to DSC under the service agreement described above are allocated among all Funds in the Delaware Investments Family of Funds on a relative net asset value basis. For the six months ended September 30, 2012, the Funds were charged as follows:

Colorado Minnesota National
             Municipal                            Municipal                            Municipal          
Fund Fund II Fund
$2,556 $6,132 $2,349

At September 30, 2012, each Fund had liabilities payable to affiliates as follows:

      Colorado       Minnesota       National
           Municipal                      Municipal                      Municipal          
Fund Fund II Fund
Investment management fees payable to DMC           $ 34,542                     $ 82,925                     $ 32,008          
Accounting administration and other expenses
       payable to DSC 420 1,009 389
Other expenses payable to DMC and affiliates* 1,137 2,681 1,015

*DMC, as part of its administrative services, pays operating expenses on behalf of each Fund and is reimbursed on a periodic basis. Expenses include items such as printing of shareholder reports, fees for audit, legal and tax services, registration fees and directors/trustees’ fees.

As provided in the investment management agreement, each Fund bears the cost of certain legal and tax services, including internal legal and tax services provided to each Fund by DMC and/or its affiliates’ employees. For the six months ended September 30, 2012, each Fund was charged for internal legal and tax services provided by DMC and/or its affiliates’ employees as follows:

Colorado Minnesota National
                 Municipal                            Municipal                            Municipal          
  Fund Fund II Fund
$5,377 $12,633 $13,230

Directors’/Trustees’ fees include expenses accrued by the Funds for each Director’s/Trustee’s retainer and meeting fees. Certain officers of DMC and DSC are officers and/or Directors/Trustees of the Trust. These officers and Directors/Trustees are paid no compensation by the Funds.

3. Investments

For the six months ended September 30, 2012, the Funds made purchases and sales of investment securities other than short-term investments as follows:

Colorado Minnesota National
                 Municipal                            Municipal                            Municipal          
Fund Fund II Fund
Purchases          $ 2,535,022                  $ 31,203,565                 $ 33,546,545        
Sales 1,759,456 27,020,189 17,398,713

At September 30, 2012, the cost of investments for federal income tax purposes has been estimated since final tax characteristics cannot be determined until fiscal year end. At September 30, 2012, the cost of investments and unrealized appreciation (depreciation) for each Fund were as follows:

Colorado Minnesota National
           Municipal                      Municipal                      Municipal          
      Fund       Fund II       Fund
Cost of investments         $ 96,696,237                $ 236,583,479                $ 89,339,508        
Aggregate unrealized appreciation $ 7,816,641 $ 18,510,003 $ 8,094,838
Aggregate unrealized depreciation (11,555 ) (25,989 )
Net unrealized appreciation $ 7,816,641 $ 18,498,448 $ 8,068,849

24



U.S. GAAP defines fair value as the price that the Funds would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date under current market conditions. A three level hierarchy for fair value measurements has been established based upon the transparency of inputs to the valuation of an asset or liability. Inputs may be observable or unobservable and refer broadly to the assumptions that market participants would use in pricing the asset or liability. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the reporting entity’s own assumptions about the assumptions that market participants would use in pricing the asset or liability developed based on the best information available under the circumstances. Each Fund’s investment in its entirety is assigned a level based upon the observability of the inputs which are significant to the overall valuation. The three level hierarchy of inputs is summarized below.

Level 1 – 

inputs are quoted prices in active markets for identical investments (e.g., equity securities, open-end investment companies, futures contracts, exchange-traded options contracts)

 

Level 2 –

other observable inputs (including, but not limited to: quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs) (e.g., debt securities, government securities, swap contracts, foreign currency exchange contracts, foreign securities utilizing international fair value pricing, broker-quoted securities, fair valued securities)

 

Level 3 –

inputs are significant unobservable inputs (including the Fund’s own assumptions used to determine the fair value of investments) (e.g., broker-quoted securities, fair valued securities)

Level 3 investments are valued using significant unobservable inputs, which may include prior transaction prices (acquisition cost) that did not occur during the period, financial or news information released by the company, and other relevant information for the investment to determine the fair value of the investment. The Fund may also use an income-based valuation approach in which the anticipated future cash flows of the investment are discounted to calculate fair value. Discounts may also be applied due to the nature or duration of any restrictions on the disposition of the investments. Valuations may also be based upon current market prices of securities that are comparable in coupon, rating, maturity and industry. The derived value of a Level 3 investment may not represent the value which is received upon disposition and this could impact the results of operations.

The following table summarizes the valuation of each Fund’s investments by fair value hierarchy levels as of September 30, 2012:

      Colorado Municipal Fund
Level 2
Municipal Bonds           $ 104,512,878          
   
Minnesota Municipal Fund II
Level 2
Municipal Bonds $ 255,081,927
   
National Municipal Fund
Level 2
Municipal Bonds $ 96,658,357  
Short-Term Investments     750,000  
Total $ 97,408,357

During the six months ended September 30, 2012, there were no transfers between Level 1 investments, Level 2 investments or Level 3 investments that had a material impact to the Funds. The Funds’ policy is to recognize transfers between levels at the beginning of the reporting period.

(continues)       25



Notes to financial statements

Delaware Investments® Closed-End Municipal Bond Funds

4. Dividend and Distribution Information

Income and long-term capital gain distributions are determined in accordance with federal income tax regulations, which may differ from U.S. GAAP. Additionally, distributions from net short-term gains on sales of investment securities are treated as ordinary income for federal income tax purposes. The tax character of dividends and distributions paid during the six months ended September 30, 2012 and the year ended March 31, 2012 was as follows:

Colorado Minnesota National
Municipal Municipal Municipal
      Fund       Fund II       Fund
Six Months Ended 9/30/12*
Ordinary income $ 5,144 $ 89,753 $ 7,263
Tax-exempt income 1,663,656 3,879,463 1,260,701
Long-term capital gain 445,013
Total $ 2,113,813 $ 3,969,216 $ 1,267,964
  
Year Ended 3/31/12  
Ordinary income $ 959 $ 533 $ 8,868
Tax-exempt income 2,804,559 6,672,353     2,286,347
Total $ 2,805,518   $ 6,672,886 $ 2,295,215

*Tax information for the six months ended September 30, 2012 is an estimate and the tax character of dividends and distributions may be redesigned at fiscal year end.

5. Components of Net Assets on a Tax Basis

Colorado Minnesota National
Municipal Municipal Municipal
      Fund       Fund II       Fund
Shares of beneficial interest $ 66,918,121 $ 157,931,075 $ 60,617,476
Undistributed tax-exempt income   1,468,561 2,462,009 897,927
Undistributed ordinary income 19,828 316,780
Undistributed long-term capital gains 22,729 69,811    
Distribution payable   (756,783 ) (745,627 ) (249,065 )
Realized gains 4/1/12 – 9/30/12   257,166   362,677
Capital loss carryforwards as of 3/31/12     (257,166 ) (1,747,836 )
Unrealized appreciation 7,816,641 18,498,448 8,068,849
Net assets $ 75,489,097 $ 178,532,496 $ 67,950,028

The differences between book basis and tax basis components of net assets are primarily attributable to tax treatment of market discount on debt instruments.

For financial reporting purposes, capital accounts are adjusted to reflect the tax character of permanent book/tax differences. Reclassifications are primarily due to tax treatment of market discount on debt instruments. Results of operations and net assets were not affected by these reclassifications. For the six months ended September 30, 2012, the Funds recorded an estimate of these differences since final tax characteristics cannot be determined until fiscal year end.

Colorado Minnesota National
Municipal Municipal Municipal
      Fund       Fund II       Fund
Undistributed net investment income     $ (2,471   $ (19,966 )   $ (34,847 )
Accumulated net realized gain (loss) 2,471     19,966   34,847

For federal income tax purposes, capital loss carryforwards may be carried forward and applied against future capital gains. Capital loss carryforwards remaining at March 31, 2012 will expire as follows:

Colorado Minnesota National
Municipal Municipal Municipal
Year of Expiration         Fund       Fund II       Fund
2017 $  

$

 — $ 888,041
2018           257,166     859,795
Total $   $ 257,166 $ 1,747,836

26



On December 22, 2010, the Regulated Investment Company Modernization Act of 2010 (Act) was enacted, which changed various technical rules governing the tax treatment of regulated investment companies. The changes are generally effective for taxable years beginning after the date of enactment. Under the Act, the Funds are permitted to carry forward capital losses incurred in taxable years beginning after the date of enactment for an unlimited period. However, any losses incurred during those future taxable years will be required to be utilized prior to the losses incurred in pre-enactment taxable years, which carry an expiration date. As a result of this ordering rule, pre-enactment capital loss carryforwards may be more likely to expire unused. Additionally, post-enactment capital loss carryforwards will retain their character as either short-term or long-term capital losses rather than being considered all short-term as permitted under previous regulation.

For the six months ended September 30, 2012, the Funds had capital gains, as follows, which may reduce the capital loss carryforwards:

Colorado Minnesota National
Municipal Municipal Municipal
Fund       Fund II       Fund
$—   $257,166 $362,677

6. Capital Stock

Pursuant to their articles of incorporation, Colorado Municipal Fund and Minnesota Municipal Fund II each have 200 million shares of $0.01 par value common shares authorized. National Municipal Fund has been authorized to issue an unlimited amount of $0.01 par value common shares. The Funds did not repurchase any shares under the Share Repurchase Program during the six months ended September 30, 2012. Shares issuable under the Funds’ dividend reinvestment plan are purchased by the Funds’ transfer agent, Computershare Shareowner Services LLC (Computershare), in the open market.

On February 18, 2011, the National Municipal Fund’s Board approved a tender offer for shares of the Arizona Municipal Fund’s common stock. The tender offer authorized the National Municipal Fund to purchase for cash up to 18% of the then-outstanding shares of the Arizona Municipal Fund’s common stock after the reorganization (Common Stock) at a per share price equal to 99% of the net asset value per share of the Common Stock at the expiration of the tender offer.

In connection with the tender offer, the National Municipal Fund purchased 994,051 shares of capital stock at a total cost of approximately $13,240,759. The tender offer was oversubscribed and all tenders of shares were subject to pro-ration (at a ratio of approximately 0.58504231) in accordance with the terms of its tender offer.

On November 15, 2011, Colorado Municipal Fund and Minnesota Municipal Fund II, issued $30,000,000 and $75,000,000, respectively, of Series 2016 Variable Rate MuniFund Term Preferred (VMTP) Shares, with $100,000 liquidation value per share in a privately negotiated offering. On March 15, 2012, National Municipal Fund (VFL) issued $30,000,000 Series 2017 VMTP Shares, with $100,000 liquidation value per share in a privately negotiated offering. Proceeds from the issuance of VMTP Shares, net of offering expenses, were invested in accordance with each fund’s investment objective. The VMTP Shares were offered to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933.

Colorado Municipal Fund and Minnesota Municipal Fund II are obligated to redeem their VMTP Shares on December 1, 2016, unless earlier redeemed or repurchased by the Fund. National Municipal Fund is obligated to redeem its VMTP Shares on April 1, 2017, unless earlier redeemed or repurchased by the Fund. VMTP Shares are subject to optional and mandatory redemption in certain circumstances. The VMTP Shares may be redeemed at the option of a Fund, subject to payment of a premium until December 1, 2013 (with respect to VMM and VCF) and April 1, 2014 (with respect to VFL), and at par thereafter. A Fund may be obligated to redeem certain of the VMTP Shares if the Fund fails to maintain certain asset coverage and leverage ratio requirements and such failures are not cured by the applicable cure date. The redemption price per share is equal to the sum of the liquidation value per share plus any accumulated but unpaid dividends. Dividends on the VMTP Shares (which are treated as interest payments for financial reporting purposes) are set weekly.

The Funds use leverage because their managers believe that, over time, leveraging may provide opportunities for additional income and total return for common shareholders. However, the use of leverage also can expose common shareholders to additional volatility. For example, as the prices of securities held by a fund decline, the negative impact of these valuation changes on common share net asset value and common shareholder total return is magnified by the use of leverage; accordingly, the use of structural leverage may hurt a fund’s overall performance.

Leverage may also cause the Funds to incur certain costs. In the event that a Fund is unable to meet certain criteria (including, but not limited to, maintaining certain ratings with Fitch Ratings and Moody’s Investor Service, funding dividend payments or funding redemptions), that Fund will pay additional fees with respect to the leverage.

(continues)       27



Notes to financial statements

Delaware Investments® Closed-End Municipal Bond Funds

7. Fund Merger

On June 20, 2011, the National Municipal Fund acquired all of the assets of the Delaware Investments Arizona Municipal Fund, Inc. (Acquired Fund), a closed-end investment company, in exchange for the shares of the National Municipal Fund (Acquiring Fund) pursuant to a Plan and Agreement of Reorganization (Reorganization). The shareholders of the Acquired Fund received shares of the Acquiring Fund equal to the aggregate net asset value of their share in the Acquired Fund prior to the Reorganization, as shown in the following table:

Acquiring Acquired
Fund   Fund
      Shares       Shares       Value
Common Stock 2,422,200 3,100,925 $40,715,147

The Reorganization was treated as a non-taxable event and, accordingly, the Acquired Fund’s basis in securities acquired reflected historical cost basis as of the date of transfer. The net assets and net unrealized appreciation of the Acquired Fund as of the close of business on June 17, 2011, were as follows:

Net assets       $40,715,147
Net unrealized appreciation 65,229

The net assets of the Acquiring Fund before the acquisition were $31,792,649. The net assets of the Acquiring Fund immediately following the acquisition were $72,507,796.

Assuming that the acquisition had been completed on April 1, 2011, the beginning of the Acquiring Fund’s reporting period, the Acquiring Fund’s pro forma results of operations for the year ended March 31, 2012, are as follows:

Net investment income       $ 2,611,659
Net realized gain on investments   909,699
Change in unrealized appreciation   5,974,605
Net increase in net assets resulting from operations 9,477,059

Because the combined investment portfolios have been managed as a single integrated portfolio since the acquisition was completed, it is not practicable to separate the amounts of revenue and earnings of the Acquired Fund that have been included in the National Municipal Fund’s statement of operations since June 20, 2011.

8. Derivatives

U.S. GAAP requires disclosures that enable investors to understand: 1) how and why an entity uses derivatives; 2) how they are accounted for; and 3) how they affect an entity’s results of operations and financial position.

Inverse Floaters — Each Fund may participate in inverse floater programs where a fund transfers its own bonds to a trust that issues floating rate securities and inverse floating rate securities (inverse floaters) with an aggregate principal amount equal to the principal of the transferred bonds. The inverse floaters received by the Funds are derivative tax-exempt obligations with floating or variable interest rates that move in the opposite direction of short-term interest rates, usually at an accelerated speed. Consequently, the market values of the inverse floaters will generally be more volatile than other tax-exempt investments. The Funds typically use inverse floaters to adjust the duration of their portfolio. Duration measures a portfolio’s sensitivity to changes in interest rates. By holding inverse floaters with a different duration than the underlying bonds that a Fund transferred to the trust, the Fund seeks to adjust its portfolio’s sensitivity to changes in interest rates. The Funds may also invest in inverse floaters to add additional income to the Funds or to adjust the Funds’ exposure to a specific segment of the yield curve. At September 30, 2012, and during the period then ended, the Funds held no investments in inverse floaters.

9. Credit and Market Risk

The Funds concentrate their investments in securities issued by municipalities. The value of these investments may be adversely affected by new legislation within the states, regional or local and national economic conditions, as applicable and differing levels of supply and demand for municipal bonds. Many municipalities insure repayment for their obligations. Although bond insurance may reduce the risk of loss due to default by an issuer, such bonds remain subject to the risk that market value may fluctuate for other reasons and there is no assurance that the insurance company will meet its obligations. A real or perceived decline in creditworthiness of a bond insurer can have an adverse impact on the value of insured bonds held in each Fund. At September 30, 2012, the percentages of each Fund’s net assets insured by insurers are listed below and these securities have been identified in the statements of net assets.

Colorado Municipal Fund       41%
Minnesota Municipal Fund II 12%
National Municipal Fund 11%

28



The Funds invest a portion of their assets in high yield fixed income securities, which are securities rated BB or lower by Standard & Poor’s (S&P) and/or Ba or lower by Moody’s Investors Service, Inc. (Moody’s), or similarly rated by another nationally recognized statistical rating organization. Investments in these higher yielding securities are generally accompanied by a greater degree of credit risk than higher rated securities. Additionally, lower rated securities may be more susceptible to adverse economic and competitive industry conditions than investment grade securities.

The Funds may invest in advanced refunded bonds, escrow secured bonds or defeased bonds. Under current federal tax laws and regulations, state and local government borrowers are permitted to refinance outstanding bonds by issuing new bonds. The issuer refinances the outstanding debt to either reduce interest costs or to remove or alter restrictive covenants imposed by the bonds being refinanced. A refunding transaction where the municipal securities are being refunded within 90 days from the issuance of the refunding issue is known as a “current refunding.” “Advance refunded bonds” are bonds in which the refunded bond issue remains outstanding for more than 90 days following the issuance of the refunding issue. In an advance refunding, the issuer will use the proceeds of a new bond issue to purchase high grade interest bearing debt securities which are then deposited in an irrevocable escrow account held by an escrow agent to secure all future payments of principal and interest and bond premium of the advance refunded bond. Bonds are “escrowed to maturity” when the proceeds of the refunding issue are deposited in an escrow account for investment sufficient to pay all of the principal and interest on the original interest payment and maturity dates.

Bonds are considered “pre-refunded” when the refunding issue’s proceeds are escrowed only until a permitted call date or dates on the refunded issue with the refunded issue being redeemed at the time, including any required premium. Bonds become “defeased” when the rights and interests of the bondholders and of their lien on the pledged revenues or other security under the terms of the bond contract are substituted with an alternative source of revenues (the escrow securities) sufficient to meet payments of principal and interest to maturity or to the first call dates. Escrowed secured bonds will often receive a rating of AAA from Moody’s, S&P, and/or Fitch Ratings due to the strong credit quality of the escrow securities and the irrevocable nature of the escrow deposit agreement.

Each Fund may invest up to 15% of its net assets in illiquid securities, which may include securities with contractual restrictions on resale, securities exempt from registration under Rule 144A of the Securities Act of 1933, as amended, and other securities which may not be readily marketable. The relative illiquidity of these securities may impair each Fund from disposing of them in a timely manner and at a fair price when it is necessary or desirable to do so. While maintaining oversight, each Fund’s Board has delegated to DMC the day-to-day functions of determining whether individual securities are liquid for purposes of each Fund’s limitation on investments in illiquid securities. Securities eligible for resale pursuant to Rule 144A, which are determined to be liquid, are not subject to the Funds’ 15% limit on investments in illiquid securities. As of September 30, 2012, no securities have been determined to be illiquid under the Funds’ Liquidity Procedures. Rule 144A securities have been identified on the statements of net assets.

10. Contractual Obligations

The Funds enter into contracts in the normal course of business that contain a variety of indemnifications. The Funds’ maximum exposure under these arrangements is unknown. However, the Funds have not had prior claims or losses pursuant to these contracts. Management has reviewed each Fund’s existing contracts and expects the risk of loss to be remote.

11. Investments in Municipal Securities Issued by the State of Arizona

On May 23, 2011, shareholders of the National Municipal Fund and shareholders of the Delaware Investments Arizona Municipal Income Fund, Inc. (Arizona Muni Fund) approved the acquisition of substantially all of the assets of Arizona Muni Fund in exchange for newly issued common shares of the National Municipal Fund, which was structured as a tax-free transaction. This acquisition was completed after the close of business on June 17, 2011. As of September 30, 2012, municipal bonds issued by the state of Arizona constitute approximately 15% of the Fund’s portfolio. These investments could make the National Municipal Fund more sensitive to economic conditions in Arizona than other more geographically diversified national municipal income funds.

12. Subsequent Events

Management has determined that no material events or transactions occurred subsequent to September 30, 2012 that would require recognition or disclosure in the Funds’ financial statements.

29



Other Fund information
(Unaudited)

Delaware Investments® Closed-End Municipal Bond Funds

Fund management

Joseph R. Baxter
Senior Vice President, Head of Municipal Bond Department, Senior Portfolio Manager

Joseph R. Baxter is the head of the municipal bond department and is responsible for setting the department’s investment strategy. He is also a co-portfolio manager of the firm’s municipal bond funds and several client accounts. Before joining Delaware Investments in 1999 as head municipal bond trader, he held investment positions with First Union, most recently as a municipal portfolio manager with the Evergreen Funds. Baxter received a bachelor’s degree in finance and marketing from La Salle University.

Stephen J. Czepiel
Senior Vice President, Senior Portfolio Manager

Stephen J. Czepiel is a member of the firm’s municipal fixed income portfolio management team with primary responsibility for portfolio construction and strategic asset allocation. He is a co-portfolio manager of the firm’s municipal bond funds and client accounts. He joined Delaware Investments in July 2004 as a senior bond trader. Previously, he was vice president at both Mesirow Financial and Loop Capital Markets. He began his career in the securities industry in 1982 as a municipal bond trader at Kidder Peabody and now has more than 20 years of experience in the municipal securities industry. Czepiel earned his bachelor’s degree in finance and economics from Duquesne University.

Denise A. Franchetti, CFA
Vice President, Portfolio Manager, Senior Research Analyst

Denise A. Franchetti is a senior research analyst for the municipal bond department. Currently, she is responsible for following the airport, education, hotel, cogeneration, and cargo sectors for the group. In 2003, she was also named as portfolio manager on the tax-exempt closed-end funds in addition to her research duties. Prior to joining Delaware Investments in 1997 as a municipal bond analyst, she was a fixed income trader at Provident Mutual Life Insurance and an investment analyst at General Accident Insurance. Franchetti received her bachelor’s degree and an MBA from La Salle University. She is a member of the Financial Analysts of Philadelphia.

Gregory A. Gizzi
Senior Vice President, Portfolio Manager,
Head of Convertible Bond and Municipal Bond Trading

Gregory A. Gizzi is a member of the firm’s municipal fixed income portfolio management team and municipal trading team, and head of the municipal bond trading staff. Additionally, Gizzi serves as portfolio manager and head of the convertible bond trading staff. Before joining Delaware Investments in January 2008 as head of municipal bond trading, he spent six years as a vice president at Lehman Brothers for the firm’s tax-exempt institutional sales effort. Prior to that, he spent two years trading corporate bonds for UBS before joining Lehman Brothers in a sales capacity. Gizzi has more than 20 years of trading experience in the municipal securities industry, beginning at Kidder Peabody in 1984, where he started as a municipal bond trader and worked his way up to institutional block trading desk manager. He later worked in the same capacity at Dillon Read. Gizzi earned his bachelor’s degree in economics from Harvard University.

30



Proxy Results

At the Annual Meeting on August 22, 2012, the Funds’ Shareholders elected nine directors/trustees. The results of the voting at the meeting were as follows:

Delaware Investments® Colorado Municipal Income Fund, Inc.

Common Shareholders Preferred Shareholders
Shares voted Shares voted
Shares Withheld Shares Withheld
      Voted For       Authority       Voted For       Authority
Thomas L. Bennett 4,464,878.156 106,130.539 300 0
Patrick P. Coyne 4,465,008.087 106,000.608 300 0
John A. Fry 4,453,631.108 117,377.587 300 0
Anthony D. Knerr 4,401,636.130 169,372.565 300 0
Lucinda S. Landreth 4,464,878.156 106,130.539 300 0
Ann R. Leven 4,460,660.482 110,348.213 300 0
Frances Sevilla-Sacasa 4,405,872.358 165,136.337 300 0
Janet L. Yeomans 300 0
J. Richard Zecher 300   0
  
Delaware Investments Minnesota Municipal Income Fund II, Inc.
 
Common Shareholders Preferred Shareholders
Shares voted Shares voted
Shares Withheld Shares Withheld
      Voted For       Authority       Voted For       Authority
Thomas L. Bennett 10,197,036.559 274,443.055 750 0
Patrick P. Coyne 10,124,676.956 346,802.658 750 0
John A. Fry 10,188,434.342   283,045.272   750 0
Anthony D. Knerr 10,147,425.018 324,054.596 750 0
Lucinda S. Landreth   10,207,627.569 263,852.045   750 0
Ann R. Leven 10,182,214.447 289,265.167 750 0
Frances Sevilla-Sacasa 10,136,010.616 335,468.998 750 0
Janet L. Yeomans 750 0
J. Richard Zecher 750 0
  
Delaware Investments National Municipal Income Fund
  
Common Shareholders Preferred Shareholders
Shares voted Shares voted
Shares Withheld Shares Withheld
      Voted For       Authority       Voted For       Authority
Thomas L. Bennett 4,040,259.193 264,632.122 300 0
Patrick P. Coyne 4,041,180.676 263,710.639 300 0
John A. Fry 4,041,660.668 263,230.647 300 0
Anthony D. Knerr 4,041,831.165 263,060.150 300 0
Lucinda S. Landreth 4,040,198.694 264,692.621 300 0
Ann R. Leven 4,039,257.023 265,634.292 300 0
Frances Sevilla-Sacasa 4,040,395.691 264,495.624 300 0
Janet L. Yeomans 300 0
J. Richard Zecher 300 0

(continues)       31



Other Fund information
(Unaudited)

Delaware Investments® Closed-End Municipal Bond Funds

Dividend Reinvestment Plan

Each Fund offers an automatic dividend reinvestment program (“Plan”). Under the current policies of Minnesota Municipal Income Fund II and National Municipal Income Fund all distributions of net investment income and capital gains to common shareholders are automatically reinvested in additional shares unless shareholders elect to receive all dividends and other distributions in cash paid by check mailed directly to shareholders by the dividend plan agent. Under the current policies of Colorado Municipal Income Fund, distributions of net investment income and capital gains to common shareholders will be paid in cash unless shareholders notify Computershare Shareowner Services LLC (formerly BNY Mellon Shareowner Services LLC) (“Computershare”) of their desire to participate in the dividend reinvestment program. Shareholders who hold their shares through a bank, broker or other nominee should request the bank, broker or nominee to participate in the Plan on their behalf. This can be done as long as the bank, broker or nominee provides a dividend reinvestment service for the Funds. If the bank, broker or nominee does not provide this service, such shareholders must have their shares taken out of “street” or nominee name and re-registered in their own name in order to participate in the Plan.

Computershare will apply all cash dividends, capital gains and other distributions (collectively, “Distributions”) on each Fund’s shares of common stock which become payable to each Plan participant to the purchase of outstanding shares of each Fund’s common stock for such participant. These purchases may be made on a securities exchange or in the over-the-counter market, and may be subject to such terms of price, delivery and related matters to which Computershare may agree. The Funds will not issue new shares in connection with the Plan.

Distributions reinvested for participants are subject to income taxes just as if they had been paid directly to the shareholder in cash. Participants will receive a year-end statement showing distributions reinvested, and any brokerage commissions paid on such participant’s behalf.

Shareholders holding shares of a Fund in their own names who wish to terminate their participation in the Plan may do so by sending written instruction to Computershare so that Computershare receives such instructions at least 10 days prior to the Distribution record date. Shareholders with shares held in account by a bank, broker or other nominee should contact such bank, broker or other nominee to determine the procedure for withdrawal from the Plan.

If written instructions are not received by Computershare at least 10 days prior to the record date for a particular Distribution, that Distribution may be reinvested at the sole discretion of Computershare. After a shareholder’s instructions to terminate participation in the Plan become effective, Distributions will be paid to shareholders in cash. Upon termination, a shareholder may elect to receive either stock or cash for all the full shares in the account. If cash is elected, Computershare will sell such shares at the then current market value and then send the net proceeds to the shareholder, after deducting brokerage commissions and related expenses. Any fractional shares at the time of termination will be paid in cash at the current market price, less brokerage commissions and related expenses, if any. Shareholders may at any time request a full or partial withdrawal of shares from the Plan, without terminating participation in the Plan. When shares outside of the Plan are liquidated, Distributions on shares held under the Plan will continue to be reinvested unless Computershare is notified of the shareholder’s withdrawal from the Plan.

An investor holding shares that participate in the Plan in a brokerage account may not be able to transfer the shares to another broker and continue to participate in the Plan. Please contact your broker/dealer for additional details.

Computershare will charge participants their proportional share of brokerage commissions on market purchases. Participants may obtain a certificate or certificates for all or part of the full shares credited to their accounts at any time by making a request in writing to Computershare. A fee may be charged to the participant for each certificate issuance.

If you have any questions and shares are registered in “street” name, contact the broker/dealer holding the shares or your financial advisor. If you have any questions and shares are registered in your name, contact Computershare at 866 437-0252.

32



Board Consideration of Delaware Investments® Colorado Municipal Income Fund, Inc.; Delaware Investments National Municipal Income Fund; and Delaware Investments Minnesota Municipal Income Fund II, Inc. Investment Advisory Agreement

At a meeting held on August 21-23, 2012 (the “Annual Meeting”), the Board of Directors (the “Board”), including a majority of disinterested or independent Directors, approved the renewal of the Investment Advisory Agreements for each of the Delaware Investments Colorado Municipal Income Fund, Inc.; Delaware Investments National Municipal Income Fund; and Delaware Investments Minnesota Municipal Income Fund II, Inc. (each, a “Fund” and together, the “Funds”). In making its decision, the Board considered information furnished at regular quarterly Board meetings, including reports detailing Fund performance, investment strategies and expenses, as well as information prepared specifically in connection with the renewal of the investment advisory and sub-advisory contracts. Information furnished specifically in connection with the renewal of the Investment Advisory Agreements with Delaware Management Company (“DMC”) included materials provided by DMC and its affiliates (“Delaware Investments”) concerning, among other things, the nature, extent and quality of services provided to the Funds, the costs of such services to the Funds, economies of scale and the financial condition and profitability of Delaware Investments. In addition, in connection with the Annual Meeting, reports were provided in May 2012 and included independent historical and comparative reports provided by Lipper, Inc., an independent statistical compilation organization (“Lipper”). The Lipper reports compared each Fund’s investment performance and expenses with those of other comparable mutual funds. The Independent Directors reviewed and discussed the Lipper reports with independent legal counsel to the Independent Directors. The Board requested and received information regarding DMC’s policy with respect to advisory fee levels and its breakpoint philosophy; the structure of portfolio manager compensation; the investment manager’s profitability; comparative client fee information; and any constraints or limitations on the availability of securities in certain investment styles, which had in the past year inhibited, or which were likely in the future to inhibit, DMC’s ability to invest fully in accordance with Fund policies.

In considering information relating to the approval of each Fund’s advisory agreement, the Independent Directors received assistance and advice from and met separately with independent legal counsel to the Independent Directors. Although the Board gave attention to all information furnished, the following discussion identifies, under separate headings, the primary factors taken into account by the Board during its contract renewal considerations.

Nature, Extent And Quality of Service. The Board considered the services provided by Delaware Investments to the Funds and their shareholders. In reviewing the nature, extent and quality of services, the Board considered reports furnished to it throughout the year, which covered matters such as the relative performance of the Funds, compliance of portfolio managers with the investment policies, strategies and restrictions for the Funds, compliance by DMC (“Management”) personnel with the Code of Ethics adopted throughout the Delaware Investments Family of Funds complex and adherence to fair value pricing procedures as established by the Board. The Board was pleased with the current staffing of the Funds’ investment advisor and the emphasis placed on research in the investment process. The Board recognized DMC’s receipt of several industry distinctions. The Board gave favorable consideration to DMC’s efforts to control expenditures while maintaining service levels committed to fund matters. The Board was satisfied with the nature, extent and quality of the overall services provided by Delaware Investments.

Investment Performance. The Board placed significant emphasis on the investment performance of the Funds in view of the importance of investment performance to shareholders. Although the Board gave appropriate consideration to performance reports and discussions with portfolio managers at Board meetings throughout the year, the Board gave particular weight to the Lipper reports furnished for the Annual Meeting. The Lipper reports prepared for each Fund showed the investment performance of its shares in comparison to a group of similar funds as selected by Lipper (the “Performance Universe”). A fund with the highest performance ranked first, and a fund with the lowest ranked last. The highest/best performing 25% of funds in the Performance Universe make up the first quartile; the next 25%, the second quartile; the next 25%, the third quartile; and the lowest/worst performing 25% of funds in the Performance Universe make up the fourth quartile. Comparative annualized performance for each Fund was shown for the past one-, three-, five- and ten-year periods ended March 31, 2012. The Board’s objective is that each Fund’s performance for the periods considered be at or above the median of its Performance Universe. The following paragraphs summarize the performance results for the Funds and the Board’s view of such performance.

Delaware Investments Colorado Municipal Income Fund, Inc. – The Performance Universe for the Fund consisted of the Fund and all closed–end other state municipal debt funds as selected by Lipper. The Lipper report comparison showed that the Fund’s total return for the one-year period was in the third quartile of its Performance Universe. The report further showed that the Fund’s total return for the three-, five- and ten- year periods was in the fourth quartile. The Fund’s performance results were not in line with the Board’s objective. In evaluating the Fund’s performance, the Board considered the numerous investment and performance reports delivered by Management personnel to the Board’s Investments Committee. The Board was satisfied that Management was taking action to improve Fund performance and meet the Board’s performance objective.

Delaware Investments Minnesota Municipal Income Fund II, Inc. – The Performance Universe for the Fund consisted of the Fund and all closed–end other state municipal debt funds as selected by Lipper. The Lipper report comparison showed that the Fund’s total return for the one-, three-, five- and ten-year periods was in the fourth quartile of its Performance Universe. The Fund’s performance results were not in line with the Board’s objective. In evaluating the Fund’s performance, the Board considered the numerous investment and performance reports delivered by Management personnel to the Board’s Investments Committee. The Board was satisfied that Management was taking action to improve Fund performance and to meet the Board’s performance objective.

(continues)       33



Other Fund information
(Unaudited)

Delaware Investments® Closed-End Municipal Bond Funds

Board Consideration of Delaware Investments Colorado Municipal Income Fund, Inc.; Delaware Investments National Municipal Income Fund; and Delaware Investments Minnesota Municipal Income Fund II, Inc. Investment Advisory Agreement (continued)

Delaware Investments National Municipal Income Fund – The Performance Universe for the Fund consisted of the Fund and all non-leveraged closed–end general and insured municipal debt funds as selected by Lipper. The Lipper report comparison showed that the Fund’s total return for the one-year period was in the first quartile of its Performance Universe. The report further showed that the Fund’s total return for the three-year period was in the second quartile and that the Fund’s total return for the five- and ten-year periods was ranked fourth and third of the four funds in the Performance Universe, respectively. In evaluating the Fund’s performance, the Board considered the limited size of the Fund’s Performance Universe. The Board also considered the numerous investment and performance reports delivered by Management personnel to the Board’s Investments Committee. The Board was satisfied that Management was taking effective action to enhance Fund performance and meet the Board’s performance objective.

Comparative Expenses. The Board considered expense comparison data for the Delaware Investments Family of Funds. Management provided the Board with information on pricing levels and fee structures for each Fund as of its most recently completed fiscal year. The Board also focused on the comparative analysis of effective management fees and total expense ratios of each Fund versus effective management fees and expense ratios of a group of similar closed-end funds as selected by Lipper (the “Expense Group”). In reviewing comparative costs, each Fund’s contractual management fee and the actual management fee incurred by the Fund were compared with the contractual management fees (assuming all funds in the Expense Group were similar in size to the Fund) and actual management fees (as reported by each fund) within the Expense Group, taking into account any applicable breakpoints and fee waivers. Each Fund’s total expenses were also compared with those of its Expense Group. The Board considered fees paid to Delaware Investments for non-management services. The Board’s objective is to limit each Fund’s total expense ratio to be competitive with that of the Expense Group. The following paragraphs summarize the expense results for the Funds and the Board’s view of such expenses.

Delaware Investments Colorado Municipal Income Fund, Inc. – The expense comparisons for the Fund showed that its actual management fee and total expenses were in the quartile with the lowest expenses of its Expense Group. The Board was satisfied with the management fee and total expenses of the Fund in comparison to those of its Expense Group.

Delaware Investments Minnesota Municipal Income Fund II, Inc. – The expense comparisons for the Fund showed that its management fee and total expenses were in the quartile with the lowest expenses of its Expense Group. The Board was satisfied with the management fee and total expenses of the Fund in comparison to those of its Expense Group.

Delaware Investments National Municipal Income Fund – The expense comparisons for the Fund showed that its management fee was ranked first of the three funds in the Expense Group and its total expenses were ranked second of the three funds in the Expense Group. In evaluating the Fund’s total expenses, the Board considered the limited number of funds in the Expense Group. The Board was satisfied with Management’s efforts to improve the Fund’s total expense ratio and bring it in line with the Board’s objective.

Management Profitability. The Board considered the level of profits, if any, realized by Delaware Investments in connection with the operation of the Funds. In this respect, the Board reviewed the Investment Management Profitability Analysis that addressed the overall profitability of Delaware Investments’ business in providing management and other services to each of the individual funds and the Delaware Investments Family of Funds as a whole. Specific attention was given to the methodology followed in allocating costs for the purpose of determining profitability. Management stated that the level of profits of Delaware Investments, to a certain extent, reflects recent operational cost savings and efficiencies initiated by Delaware Investments. The Board considered Delaware Investments’ efforts to improve services provided to fund shareholders and to meet additional regulatory and compliance requirements resulting from recent industry-wide Securities and Exchange Commission initiatives. The Board also considered the extent to which Delaware Investments might derive ancillary benefits from fund operations, including the potential for procuring additional business as a result of the prestige and visibility associated with its role as service provider to the Delaware Investments Family of Funds and the benefits from allocation of fund brokerage to improve trading efficiencies. The Board found that the management fees were reasonable in light of the services rendered and the profitability of Delaware Investments.

Economies of Scale. As closed-end funds, the Funds do not issue shares on a continuous basis. Fund assets increase only to the extent that the values of the underlying securities in the Fund increase. Accordingly, the Board determined that the Funds were not likely to experience significant economies of scale due to asset growth and, therefore, a fee schedule with breakpoints to pass the benefit of economies of scale on to shareholders was not likely to provide the intended effect.

34



Change in Independent Registered Public Accounting Firm

Due to independence matters under the Securities and Exchange Commission’s auditor independence rules relating to the January 4, 2010 acquisition of Delaware Investments (including DMC) by Macquarie Group, Ernst & Young LLP (E&Y) has resigned as the independent registered public accounting firm for Delaware Investments® Colorado Municipal Income Fund, Inc., Delaware Investments Minnesota Municipal Income Fund II, Inc., and Delaware Investments National Municipal Income Fund (the Funds) effective May 27, 2010. At a meeting held on February 18, 2010, the Board of Directors/Trustees of the Funds, upon recommendation of the Audit Committee, selected PricewaterhouseCoopers LLP (PwC) to serve as the independent registered public accounting firm for the Funds for the fiscal year ending March 31, 2011. During the fiscal years ended March 31, 2010 and 2009, E&Y’s audit reports on the financial statements of the Funds did not contain any adverse opinion or disclaimer of opinion, nor were they qualified or modified as to uncertainty, audit scope, or accounting principles. In addition, there were no disagreements between the Funds and E&Y on accounting principles, financial statements disclosures or audit scope, which, if not resolved to the satisfaction of E&Y, would have caused them to make reference to the disagreement in their reports. None of the Funds nor anyone on its behalf has consulted with PwC at any time prior to their selection with respect to the application of accounting principles to a specified transaction, either completed or proposed or the type of audit opinion that might be rendered on the Funds’ financial statements.

35



About the organization
 
This semiannual report is for the information of Delaware Investments® Closed-End Municipal Bond Funds shareholders. Notice is hereby given in accordance with Section 23(c) of the Investment Company Act of 1940 that the Funds may, from time to time, purchase shares of their common stock on the open market at market prices.
 
Board of directors/trustees

Patrick P. Coyne
Chairman, President,
and Chief Executive Officer
Delaware Investments Family of Funds
Philadelphia, PA

Thomas L. Bennett
Private Investor
Rosemont, PA

John A. Fry
President
Drexel University
Philadelphia, PA

Anthony D. Knerr
Founder and Managing Director
Anthony Knerr & Associates
New York, NY

Lucinda S. Landreth
Former Chief Investment Officer
Assurant, Inc.
Philadelphia, PA

Frances A. Sevilla-Sacasa
Chief Executive Officer
Banco Itaú Europa International
Miami, FL

Janet L. Yeomans
Vice President and Treasurer
3M Corporation
St. Paul, MN

J. Richard Zecher
Founder
Investor Analytics
Scottsdale, AZ

Your reinvestment options
Each of the Funds offers an automatic dividend reinvestment program. If you would like to reinvest dividends, and shares are registered in your name, contact Computershare Shareowner Services LLC at 866 437-0252. You will be asked to put your request in writing. If you have shares registered in “street” name, contact the broker/dealer holding the shares or your financial advisor.

Affiliated officers

David F. Connor
Vice President, Deputy General
Counsel, and Secretary
Delaware Investments Family of Funds
Philadelphia, PA

Daniel V. Geatens
Vice President and Treasurer
Delaware Investments Family of Funds
Philadelphia, PA

David P. O’Connor
Executive Vice President, General Counsel and Chief Legal Officer
Delaware Investments Family of Funds
Philadelphia, PA

Richard Salus
Senior Vice President and
Chief Financial Officer
Delaware Investments Family of Funds
Philadelphia, PA

Each Fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-Q. Each Fund’s Forms N-Q, as well as a description of the policies and procedures that each Fund uses to determine how to vote proxies (if any) relating to portfolio securities are available without charge (i) upon request, by calling 800 523-1918; and (ii) on the SEC’s website at sec.gov. In addition, a description of the policies and procedures that the Fund uses to determine how to vote proxies (if any) relating to portfolio securities and each Fund’s Schedule of Investments are available without charge on the Funds’ website at delawareinvestments.com. Each Fund’s Forms N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, D.C.; information on the operation of the Public Reference Room may be obtained by calling 800 SEC-0330. Information (if any) regarding how each Fund voted proxies relating to portfolio securities during the most recently disclosed 12-month period ended June 30 is available without charge (i) through the Funds’ website at delawareinvestments.com; and (ii) on the SEC’s website at sec.gov.

Contact information

Investment manager
Delaware Management Company,
a series of Delaware Management
Business Trust
Philadelphia, PA

Principal office of the Funds
2005 Market Street
Philadelphia, PA 19103-7057

Independent registered public
accounting firm
PricewaterhouseCoopers LLP
2001 Market Street
Philadelphia, PA 19103

Registrar and stock transfer
agent
Computershare Shareowner Services LLC
480 Washington Blvd.
Jersey City, NJ 07310
866 437-0252

For securities dealers
and financial institutions
representatives
800 362-7500

Website
delawareinvestments.com

Delaware Investments is the marketing name of Delaware Management Holdings, Inc. and its subsidiaries.

Number of recordholders as of        
September 30, 2012
 
   
Colorado Municipal    
Income Fund   88
Minnesota Municipal Income    
Fund II   455
National Municipal Income Fund   109


36



Item 2. Code of Ethics

     Not applicable.

Item 3. Audit Committee Financial Expert

     Not applicable.

Item 4. Principal Accountant Fees and Services

     Not applicable.

Item 5. Audit Committee of Listed Registrants

     Not applicable.

Item 6. Investments

     (a) Included as part of report to shareholders filed under Item 1 of this Form N-CSR.

     (b) Divestment of securities in accordance with Section 13(c) of the Investment Company Act of 1940.

     Not applicable.

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies

     Not applicable.

Item 8. Portfolio Managers of Closed-End Management Investment Companies

     Applicable to Form N-CSRs filed after fiscal years ending on or after December 31, 2005.

     Not applicable.

Item 9. Purchases of Equity Securities by Closed-End Management Investment Companies and Affiliated Purchasers

     Not applicable.

Item 10. Submission of Matters to a Vote of Security Holders

     Not applicable.



Item 11. Controls and Procedures

     The registrant’s principal executive officer and principal financial officer have evaluated the registrant’s disclosure controls and procedures within 90 days of the filing of this report and have concluded that they are effective in providing reasonable assurance that the information required to be disclosed by the registrant in its reports or statements filed under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the Securities and Exchange Commission.

     There were no significant changes in the registrant’s internal control over financial reporting that occurred during the second fiscal quarter of the period covered by the report to stockholders included herein (i.e., the registrant’s second fiscal quarter) that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 12. Exhibits

(a)  (1) Code of Ethics
 
         Not applicable.
 
  (2) Certifications of Principal Executive Officer and Principal Financial Officer pursuant to Rule 30a-2 under the Investment Company Act of 1940 are attached hereto as Exhibit 99.CERT.
 
  (3) Written solicitations to purchase securities pursuant to Rule 23c-1 under the Securities Exchange Act of 1934.
 
         Not applicable.
 
(b) Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 are furnished herewith as Exhibit 99.906CERT.



SIGNATURES

     Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf, by the undersigned, thereunto duly authorized.

Name of Registrant: DELAWARE INVESTMENTS® NATIONAL MUNICIPAL INCOME FUND

/s/ PATRICK P. COYNE
By: Patrick P. Coyne
Title:   Chief Executive Officer
Date: December 3, 2012

     Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

/s/ PATRICK P. COYNE
By: Patrick P. Coyne
Title:   Chief Executive Officer
Date: December 3, 2012
 
/s/ RICHARD SALUS
By: Richard Salus
Title: Chief Financial Officer
Date: December 3, 2012