Of the 14 funds, 11 will merge with other similar funds, subject to shareholder approval, while the remainder will be liquidated, bringing Delaware?s range of funds to a total of 49 open-end retail mutual funds.
None of the 14 funds ever attracted enough assets to achieve any strong economies of scale, which made fund management problematic.
Shareholder in one or more of the funds that are being considered for merger will receive proxy material in early June, providing information concerning voting rights.
The reduction in funds on offer does not preclude Delaware from starting new funds in targeted areas, according to a spokesperson who cites Delaware American Services Fund, launched in March, as one of the company?s newest funds.
The Delaware Global Equity, Delaware Global Bond and Delaware New Pacific Funds are targeted to be liquidated.
Shareholders will be asked to consider merging the following into the Delaware Tax-Free USA Fund:
- Tax-Free Iowa
- Tax- Free Kansas
- Tax-Free North Dakota
- Tax-Free New Mexico
- Tax-Free Wisconsin
- Tax-Free New Jersey
- Montana Municipal Bond funds
Shareholders will also weigh in on merging the Delaware U.S. Government Securities Fund into the Delaware American Government Bond Fund, and the Delaware Tax-Efficient Equity Fund and the Delaware Blue Chip Fund into the Delaware Devon Fund.
Shareholders will be asked to consider merging the Delaware Overseas Equity Fund into the Delaware International Equity Fund.