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0000906236 vmf:C000135926Member country:VI 2026-08-31 0000906236 vmf:WaterAndSewerRevenueBondsMember vmf:C000135926Member 2026-08-31 iso4217:USD pure vmf:Holding 10000 10206.31 11049.13 11254.39 10828.91 10960.69 12073.37 11591.91 12066.54 10080 12242.72 10000 10598.18 11081.76 9982.66 10007.68 10734.64 10825.02 11478.51 10210.23 10222.71 11147.61 9702 12085 10932 11407 11384 10645 11305 11598 11378 11765 10000 10088 10191 11022 10828 10749 11607 9550 9606 10279 10138 10477 0000906236 false N-1A N-CSR Voyageur Mutual Funds 2026-08-31 Nomura Tax‑Free California Fund(formerly, Macquarie Tax‑Free California Fund) Class A DVTAX This annual shareholder report contains important information about Nomura Tax‑Free California Fund (Fund) for the period of September 1, 2025, to August 31, 2026. annual shareholder report You can find additional information about the Fund at nomuraassetmanagement.com/literature. You can also request this information by contacting us at 800 523‑1918, weekdays from 8:30am to 6:00pm ET. nomuraassetmanagement.com/literature 800 523‑1918 <div style="margin-top: 12pt; margin-bottom: 0pt; font-size: 10pt; font-family: arial; font-weight: bold;">This report describes changes to the Fund that occurred during the reporting period.</div> <div style="margin-top: 12pt; margin-bottom: 0pt; font-size: 10pt; font-family: arial; font-weight: bold;">What were the Fund’s costs for the last 12 months?</div> <div style="margin-top: 6pt; margin-bottom: 0pt; font-size: 10pt; font-family: arial;"><span style="font-style: italic;">(Based on a hypothetical $10,000 investment) </span></div> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; font-family: arial; font-size: 10pt; width: 100%; border-spacing: 0px; margin: 0 auto;"> <tr> <td style="width: 15%;"></td> <td style="vertical-align: bottom; width: 1%;"></td> <td style="width: 37%;"></td> <td style="vertical-align: bottom; width: 1%;"></td> <td style="width: 46%;"></td> </tr> <tr style="page-break-inside: avoid; font-family: arial; font-size: 10pt;"> <td style="border-bottom: 0.75pt solid #000000; vertical-align: bottom;">  Class</td> <td style="border-bottom: 0.75pt solid #000000; vertical-align: bottom;"> </td> <td style="border-bottom: 0.75pt solid #000000; vertical-align: bottom; text-align: center;">Costs of a $10,000 investment</td> <td style="border-bottom: 0.75pt solid #000000; vertical-align: bottom;"> </td> <td style="border-bottom: 0.75pt solid #000000; vertical-align: bottom; text-align: center;">Costs paid as a percentage of a $10,000 investment<sup style="font-size: 75%; vertical-align: top;">1</sup>  </td> </tr> <tr style="page-break-inside: avoid; font-family: arial; font-size: 10pt; background-color: #cceeff;"> <td style="vertical-align: top;"> <div style="margin-top: 0pt; margin-bottom: 0pt; margin-left: 1.00em; text-indent: -1.00em; font-size: 10pt; font-family: arial;"> Class A</div> </td> <td style="vertical-align: bottom;"> </td> <td style="vertical-align: bottom; white-space: nowrap; text-align: center;">$84</td> <td style="vertical-align: bottom;"> </td> <td style="vertical-align: bottom; white-space: nowrap; text-align: center;">0.82%</td> </tr> </table> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; font-family: arial; font-size: 10pt; border-spacing: 0px; width: 100%;"> <tr style="page-break-inside: avoid;"> <td style="width: 1%;"> </td> <td style="width: 1%; vertical-align: top; text-align: left;"><sup style="font-size: 75%; vertical-align: top;">1</sup> </td> <td style="vertical-align: top; text-align: left;"> <div style="margin-top: 0pt; margin-bottom: 0pt; font-size: 10pt; font-family: arial; text-align: left;">Costs paid as a percentage of a $10,000 investment would have been 0.80% if distressed investment expenses were not included.</div> </td> </tr> </table> 84 0.0082 <div style="margin-top: 12pt; margin-bottom: 0pt; font-size: 12pt; font-family: arial; font-weight: bold;">Management’s discussion of Fund performance</div><div style="margin-top: 6pt; margin-bottom: 0pt; font-size: 10pt; font-family: arial; font-weight: bold;">Performance highlights</div><div style="margin-top: 6pt; margin-bottom: 0pt; font-size: 10pt; font-family: arial;">Nomura Tax‑Free California Fund (Class A) returned 5.35% (excluding sales charge) for the 12 months ended August 31, 2026. During the same period, the Bloomberg Municipal Bond Index, the Fund’s broad-based securities market index (benchmark), returned 4.12%.</div><div style="margin-top: 12pt; margin-bottom: 0pt; font-size: 10pt; font-family: arial; font-weight: bold;">Market highlights</div> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; font-family: arial; font-size: 10pt; border-spacing: 0px; width: 100%;"> <tr style="page-break-inside: avoid;"> <td style="width: 3%;"> </td> <td style="width: 1%; vertical-align: top; text-align: left;">•</td> <td style="width: 1%; vertical-align: top;"> </td> <td style="vertical-align: top; text-align: left;"> <div style="margin-top: 0pt; margin-bottom: 0pt; font-family: arial; font-size: 10pt; text-align: left;">During the reporting period, monetary policy and geopolitical uncertainty impacted the municipal bond market. US Federal Reserve (Fed) cuts in 4Q25 and legislative clarity contributed to performance. However, the US‑Iran conflict and subsequent inflation concerns applied pressure to the market. Additionally, market technicals impacted performance.</div> </td> </tr> </table> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; font-family: arial; font-size: 10pt; border-spacing: 0px; width: 100%;"> <tr style="page-break-inside: avoid;"> <td style="width: 3%;"> </td> <td style="width: 1%; vertical-align: top; text-align: left;">•</td> <td style="width: 1%; vertical-align: top;"> </td> <td style="vertical-align: top; text-align: left;"> <div style="margin-top: 0pt; margin-bottom: 0pt; font-family: arial; font-size: 10pt; text-align: left;">Supply was elevated but met with strong demand as municipal mutual funds took in a near record amount in the first eight months of 2026. More importantly, the flows were evenly distributed between open-ended funds and exchange-traded funds (ETFs) in calendar year 2026.</div> </td> </tr> </table> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; font-family: arial; font-size: 10pt; border-spacing: 0px; width: 100%;"> <tr style="page-break-inside: avoid;"> <td style="width: 3%;"> </td> <td style="width: 1%; vertical-align: top; text-align: left;">•</td> <td style="width: 1%; vertical-align: top;"> </td> <td style="vertical-align: top; text-align: left;"> <div style="margin-top: 0pt; margin-bottom: 0pt; font-family: arial; font-size: 10pt; text-align: left;">Municipal bond yields rose on the front end of the curve and fell in the intermediate and long segments. For example, the MMD AAA 2‑year yield rose 33 basis points (bps) while the 20‑year yield fell 15 bps and the 30‑year yield fell 1 bp (a basis point equals one‑hundredth of a percentage point). As a result, the 2‑year/30‑year curve flattened, starting the period at 241 bps and ending the period at 207 bps.</div> </td> </tr> </table> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; font-family: arial; font-size: 10pt; border-spacing: 0px; width: 100%;"> <tr style="page-break-inside: avoid;"> <td style="width: 3%;"> </td> <td style="width: 1%; vertical-align: top; text-align: left;">•</td> <td style="width: 1%; vertical-align: top;"> </td> <td style="vertical-align: top; text-align: left;"> <div style="margin-top: 0pt; margin-bottom: 0pt; font-family: arial; font-size: 10pt; text-align: left;">The long end of the curve outperformed as did lower investment grade BBB‑rated and below-investment-grade securities during the reporting period, in part, driven by the strong fund flows into long mutual funds. For example, the Bloomberg Municipal Bond Index returned 4.12% while the long segment (22+ years) returned 6.45%; BBB‑rated and below-investment-grade securities returned 6.08% and 6.66%, respectively. Conversely, the front end of the curve detracted from performance for the period with the Bloomberg Municipal Bond Index’s 1‑year (1‑2 years) segment only up 2.36%.</div> </td> </tr> </table><div style="margin-top: 12pt; margin-bottom: 0pt; font-size: 10pt; font-family: arial; font-weight: bold;">Top contributors to performance:</div> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; font-family: arial; font-size: 10pt; border-spacing: 0px; width: 100%;"> <tr style="page-break-inside: avoid;"> <td style="width: 3%;"> </td> <td style="width: 1%; vertical-align: top; text-align: left;">•</td> <td style="width: 1%; vertical-align: top;"> </td> <td style="vertical-align: top; text-align: left;"> <div style="margin-top: 0pt; margin-bottom: 0pt; font-family: arial; font-size: 10pt; text-align: left;">An overweight to the long end of the curve contributed to performance.</div> </td> </tr> </table> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; font-family: arial; font-size: 10pt; border-spacing: 0px; width: 100%;"> <tr style="page-break-inside: avoid;"> <td style="width: 3%;"> </td> <td style="width: 1%; vertical-align: top; text-align: left;">•</td> <td style="width: 1%; vertical-align: top;"> </td> <td style="vertical-align: top; text-align: left;"> <div style="margin-top: 0pt; margin-bottom: 0pt; font-family: arial; font-size: 10pt; text-align: left;">An overweight to BBB‑rated securities contributed for the period.</div> </td> </tr> </table><div style="margin-top: 0pt; margin-bottom: 0pt; font-size: 10pt; font-family: arial; font-weight: bold;">Top detractors from performance:</div> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; font-family: arial; font-size: 10pt; border-spacing: 0px; width: 100%;"> <tr style="page-break-inside: avoid;"> <td style="width: 3%;"> </td> <td style="width: 1%; vertical-align: top; text-align: left;">•</td> <td style="width: 1%; vertical-align: top;"> </td> <td style="vertical-align: top; text-align: left;"> <div style="margin-top: 0pt; margin-bottom: 0pt; font-family: arial; font-size: 10pt; text-align: left;">A modest out‑of‑benchmark allocation to the front end of the curve (0‑1 years) was a drag on performance as this part of the curve lagged the overall market.</div> </td> </tr> </table> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; font-family: arial; font-size: 10pt; border-spacing: 0px; width: 100%;"> <tr style="page-break-inside: avoid;"> <td style="width: 3%;"> </td> <td style="width: 1%; vertical-align: top; text-align: left;">•</td> <td style="width: 1%; vertical-align: top;"> </td> <td style="vertical-align: top; text-align: left;"> <div style="margin-top: 0pt; margin-bottom: 0pt; font-family: arial; font-size: 10pt; text-align: left;">The Fund’s allocation to the Industrial Development Revenue (IDR)/Pollution Control Revenue (PCR) sector was a detractor, underperforming the benchmark’s IDR/PCR return of 3.03%.</div> </td> </tr> </table> <div style="margin-top: 12pt; margin-bottom: 0pt; font-size: 12pt; font-family: arial; font-weight: bold;">Fund performance</div> <div style="margin-top: 6pt; margin-bottom: 0pt; font-size: 10pt; font-family: arial;">The following graph compares the initial and subsequent account values at the end of each of the most recently completed 10 fiscal years of the Class. It also assumes a $10,000 initial investment at the beginning of the first full fiscal year in a broad-based securities market index for the same period and the deduction of the maximum applicable sales charge for Class A shares.</div> <div style="margin-top: 12pt; margin-bottom: 0pt; font-size: 10pt; font-family: arial; font-weight: bold;">Growth of $10,000 investment</div> <div style="margin-top: 2pt; margin-bottom: 0pt; font-size: 10pt; font-family: arial;">For the period August 31, 2016, through August 31, 2026</div> <div style="margin-top: 0pt; margin-bottom: 0pt; text-align: center;"> <img alt="LOGO" src="g180905g02g02.jpg" style="width: 6.27294in; height: 1.85971in;"/> </div> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; font-family: arial; font-size: 10pt; width: 100%; border-spacing: 0px; margin: 0 auto;"> <tr> <td style="width: 81%;"></td> <td style="vertical-align: bottom; width: 1%;"></td> <td></td> <td></td> <td></td> <td style="vertical-align: bottom; width: 1%;"></td> <td></td> <td></td> <td></td> <td style="vertical-align: bottom; width: 1%;"></td> <td></td> <td></td> <td></td> </tr> <tr style="font-size: 1pt;"> <td style="height: 3pt;"></td> <td colspan="4" style="height: 3pt;"></td> <td colspan="4" style="height: 3pt;"></td> <td colspan="4" style="height: 3pt;"></td> </tr> <tr style="page-break-inside: avoid; font-family: arial; font-size: 10pt;"> <td style="padding-bottom: 3pt; border-bottom: 0.75pt solid #000000; vertical-align: bottom;"> <div style="margin-top: 0pt; margin-bottom: 0pt; margin-left: 1.00em; text-indent: -1.00em; font-size: 10pt; font-family: arial;"><span style="font-weight: bold;">  Average annual total returns </span>(<span style="font-weight: bold;">as of August 31, 2026</span>)</div> </td> <td style="border-bottom: 0.75pt solid #000000; vertical-align: bottom;">  </td> <td style="padding-bottom: 3pt; border-bottom: 0.75pt solid #000000; vertical-align: bottom;"><span style="font-weight: bold;"> </span></td> <td style="padding-bottom: 3pt; border-bottom: 0.75pt solid #000000; vertical-align: bottom; text-align: right;"><span style="font-weight: bold;">1 year</span></td> <td style="padding-bottom: 3pt; border-bottom: 0.75pt solid #000000; white-space: nowrap; vertical-align: bottom;"><span style="font-weight: bold;"> </span></td> <td style="border-bottom: 0.75pt solid #000000; vertical-align: bottom;"> </td> <td style="padding-bottom: 3pt; border-bottom: 0.75pt solid #000000; vertical-align: bottom;"><span style="font-weight: bold;"> </span></td> <td style="padding-bottom: 3pt; border-bottom: 0.75pt solid #000000; vertical-align: bottom; text-align: right;"><span style="font-weight: bold;">5 year</span></td> <td style="padding-bottom: 3pt; border-bottom: 0.75pt solid #000000; white-space: nowrap; vertical-align: bottom;"><span style="font-weight: bold;"> </span></td> <td style="border-bottom: 0.75pt solid #000000; vertical-align: bottom;"> </td> <td style="padding-bottom: 3pt; border-bottom: 0.75pt solid #000000; vertical-align: bottom;"><span style="font-weight: bold;"> </span></td> <td style="padding-bottom: 3pt; border-bottom: 0.75pt solid #000000; vertical-align: bottom; text-align: right;"><span style="font-weight: bold;">10 year</span></td> <td style="padding-bottom: 3pt; border-bottom: 0.75pt solid #000000; white-space: nowrap; vertical-align: bottom;"><span style="font-weight: bold;"> </span></td> </tr> <tr style="font-size: 1pt;"> <td style="height: 3pt;"></td> <td colspan="4" style="height: 3pt;"></td> <td colspan="4" style="height: 3pt;"></td> <td colspan="4" style="height: 3pt;"></td> </tr> <tr style="page-break-inside: avoid; font-family: arial; font-size: 10pt; background-color: #cceeff;"> <td style="padding-bottom: 3pt; border-bottom: 0.75pt solid #000000; vertical-align: top;"> <div style="margin-top: 0pt; margin-bottom: 0pt; margin-left: 1.00em; text-indent: -1.00em; font-size: 10pt; font-family: arial;">  Nomura Tax‑Free California Fund (Class A) – including sales charge</div> </td> <td style="border-bottom: 0.75pt solid #000000; vertical-align: bottom;">  </td> <td style="padding-bottom: 3pt; border-bottom: 0.75pt solid #000000; white-space: nowrap; vertical-align: bottom;"> </td> <td style="padding-bottom: 3pt; border-bottom: 0.75pt solid #000000; white-space: nowrap; vertical-align: bottom; text-align: center;">0.64%</td> <td style="padding-bottom: 3pt; border-bottom: 0.75pt solid #000000; white-space: nowrap; vertical-align: bottom;"> </td> <td style="border-bottom: 0.75pt solid #000000; vertical-align: bottom;"> </td> <td style="padding-bottom: 3pt; border-bottom: 0.75pt solid #000000; white-space: nowrap; vertical-align: bottom;"> </td> <td style="padding-bottom: 3pt; border-bottom: 0.75pt solid #000000; white-space: nowrap; vertical-align: bottom; text-align: center;">-0.88%</td> <td style="padding-bottom: 3pt; border-bottom: 0.75pt solid #000000; white-space: nowrap; vertical-align: bottom;"> </td> <td style="border-bottom: 0.75pt solid #000000; vertical-align: bottom;"> </td> <td style="padding-bottom: 3pt; border-bottom: 0.75pt solid #000000; white-space: nowrap; vertical-align: bottom;"> </td> <td style="padding-bottom: 3pt; border-bottom: 0.75pt solid #000000; white-space: nowrap; vertical-align: bottom; text-align: center;">1.33%</td> <td style="padding-bottom: 3pt; border-bottom: 0.75pt solid #000000; white-space: nowrap; vertical-align: bottom;"> </td> </tr> <tr style="font-size: 1pt;"> <td style="height: 3pt;"></td> <td colspan="4" style="height: 3pt;"></td> <td colspan="4" style="height: 3pt;"></td> <td colspan="4" style="height: 3pt;"></td> </tr> <tr style="page-break-inside: avoid; font-family: arial; font-size: 10pt;"> <td style="padding-bottom: 3pt; border-bottom: 0.75pt solid #000000; vertical-align: top;"> <div style="margin-top: 0pt; margin-bottom: 0pt; margin-left: 1.00em; text-indent: -1.00em; font-size: 10pt; font-family: arial;">  Nomura Tax‑Free California Fund (Class A) – excluding sales charge</div> </td> <td style="border-bottom: 0.75pt solid #000000; vertical-align: bottom;">  </td> <td style="padding-bottom: 3pt; border-bottom: 0.75pt solid #000000; white-space: nowrap; vertical-align: bottom;"> </td> <td style="padding-bottom: 3pt; border-bottom: 0.75pt solid #000000; white-space: nowrap; vertical-align: bottom; text-align: center;">5.35%</td> <td style="padding-bottom: 3pt; border-bottom: 0.75pt solid #000000; white-space: nowrap; vertical-align: bottom;"> </td> <td style="border-bottom: 0.75pt solid #000000; vertical-align: bottom;"> </td> <td style="padding-bottom: 3pt; border-bottom: 0.75pt solid #000000; white-space: nowrap; vertical-align: bottom;"> </td> <td style="padding-bottom: 3pt; border-bottom: 0.75pt solid #000000; white-space: nowrap; vertical-align: bottom; text-align: center;">0.04%</td> <td style="padding-bottom: 3pt; border-bottom: 0.75pt solid #000000; white-space: nowrap; vertical-align: bottom;"> </td> <td style="border-bottom: 0.75pt solid #000000; vertical-align: bottom;"> </td> <td style="padding-bottom: 3pt; border-bottom: 0.75pt solid #000000; white-space: nowrap; vertical-align: bottom;"> </td> <td style="padding-bottom: 3pt; border-bottom: 0.75pt solid #000000; white-space: nowrap; vertical-align: bottom; text-align: center;">1.79%</td> <td style="padding-bottom: 3pt; border-bottom: 0.75pt solid #000000; white-space: nowrap; vertical-align: bottom;"> </td> </tr> <tr style="font-size: 1pt;"> <td style="height: 3pt;"></td> <td colspan="4" style="height: 3pt;"></td> <td colspan="4" style="height: 3pt;"></td> <td colspan="4" style="height: 3pt;"></td> </tr> <tr style="page-break-inside: avoid; font-family: arial; font-size: 10pt; background-color: #cceeff;"> <td style="padding-bottom: 3pt; border-bottom: 0.75pt solid #000000; vertical-align: top;"> <div style="margin-top: 0pt; margin-bottom: 0pt; margin-left: 1.00em; text-indent: -1.00em; font-size: 10pt; font-family: arial;">  Bloomberg Municipal Bond Index</div> </td> <td style="border-bottom: 0.75pt solid #000000; vertical-align: bottom;">  </td> <td style="padding-bottom: 3pt; border-bottom: 0.75pt solid #000000; white-space: nowrap; vertical-align: bottom;"> </td> <td style="padding-bottom: 3pt; border-bottom: 0.75pt solid #000000; white-space: nowrap; vertical-align: bottom; text-align: center;">4.12%</td> <td style="padding-bottom: 3pt; border-bottom: 0.75pt solid #000000; white-space: nowrap; vertical-align: bottom;"> </td> <td style="border-bottom: 0.75pt solid #000000; vertical-align: bottom;"> </td> <td style="padding-bottom: 3pt; border-bottom: 0.75pt solid #000000; white-space: nowrap; vertical-align: bottom;"> </td> <td style="padding-bottom: 3pt; border-bottom: 0.75pt solid #000000; white-space: nowrap; vertical-align: bottom; text-align: center;">0.54%</td> <td style="padding-bottom: 3pt; border-bottom: 0.75pt solid #000000; white-space: nowrap; vertical-align: bottom;"> </td> <td style="border-bottom: 0.75pt solid #000000; vertical-align: bottom;"> </td> <td style="padding-bottom: 3pt; border-bottom: 0.75pt solid #000000; white-space: nowrap; vertical-align: bottom;"> </td> <td style="padding-bottom: 3pt; border-bottom: 0.75pt solid #000000; white-space: nowrap; vertical-align: bottom; text-align: center;">1.91%</td> <td style="padding-bottom: 3pt; border-bottom: 0.75pt solid #000000; white-space: nowrap; vertical-align: bottom;"> </td> </tr> </table> Nomura Tax‑Free California Fund (Class A) – including sales charge 0.0064 -0.0088 0.0133 Nomura Tax‑Free California Fund (Class A) – excluding sales charge 0.0535 0.0004 0.0179 Bloomberg Municipal Bond Index 0.0412 0.0054 0.0191 Keep in mind that the Fund’s past performance is not a good predictor of how the Fund will perform in the future. Visit nomuraassetmanagement.com/performance for the most recent performance information. The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares. <div style="margin-top: 12pt; margin-bottom: 0pt; font-size: 12pt; font-family: arial;"><span style="font-weight: bold;">Fund statistics </span><span style="font-family: arial; font-size: 10pt;">(as of August 31, 2026)</span><span style="font-family: arial; font-size: 12pt;"> </span></div> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; font-family: arial; font-size: 10pt; width: 100%; border-spacing: 0px; margin: 0 auto;"> <tr> <td style="width: 88%;"></td> <td style="vertical-align: bottom; width: 2%;"></td> <td></td> <td></td> <td></td> </tr> <tr style="font-size: 1pt;"> <td style="height: 3.75pt;"></td> <td colspan="4" style="height: 3.75pt;"></td> </tr> <tr style="page-break-inside: avoid; font-family: arial; font-size: 10pt; background-color: #cceeff;"> <td style="padding-bottom: 4pt; border-bottom: 0.75pt solid #000000; vertical-align: top;"> <div style="margin-top: 0pt; margin-bottom: 0pt; margin-left: 1.00em; text-indent: -1.00em; font-size: 10pt; font-family: arial;">Fund net assets</div> </td> <td style="border-bottom: 0.75pt solid #000000; vertical-align: bottom;">  </td> <td style="padding-bottom: 4pt; border-bottom: 0.75pt solid #000000; white-space: nowrap; vertical-align: bottom;">$</td> <td style="padding-bottom: 4pt; border-bottom: 0.75pt solid #000000; white-space: nowrap; vertical-align: bottom; text-align: right;">261,616,481</td> <td style="padding-bottom: 4pt; border-bottom: 0.75pt solid #000000; white-space: nowrap; vertical-align: bottom;"> </td> </tr> <tr style="font-size: 1pt;"> <td style="height: 3.75pt;"></td> <td colspan="4" style="height: 3.75pt;"></td> </tr> <tr style="page-break-inside: avoid; font-family: arial; font-size: 10pt;"> <td style="padding-bottom: 4pt; border-bottom: 0.75pt solid #000000; vertical-align: top;"> <div style="margin-top: 0pt; margin-bottom: 0pt; margin-left: 1.00em; text-indent: -1.00em; font-size: 10pt; font-family: arial;">Total number of portfolio holdings*</div> </td> <td style="border-bottom: 0.75pt solid #000000; vertical-align: bottom;">  </td> <td style="padding-bottom: 4pt; border-bottom: 0.75pt solid #000000; white-space: nowrap; vertical-align: bottom;"> </td> <td style="padding-bottom: 4pt; border-bottom: 0.75pt solid #000000; white-space: nowrap; vertical-align: bottom; text-align: right;">196</td> <td style="padding-bottom: 4pt; border-bottom: 0.75pt solid #000000; white-space: nowrap; vertical-align: bottom;"> </td> </tr> <tr style="font-size: 1pt;"> <td style="height: 3.75pt;"></td> <td colspan="4" style="height: 3.75pt;"></td> </tr> <tr style="page-break-inside: avoid; font-family: arial; font-size: 10pt; background-color: #cceeff;"> <td style="padding-bottom: 4pt; border-bottom: 0.75pt solid #000000; vertical-align: top;"> <div style="margin-top: 0pt; margin-bottom: 0pt; margin-left: 1.00em; text-indent: -1.00em; font-size: 10pt; font-family: arial;">Total net advisory fees paid (during reporting period)</div> </td> <td style="border-bottom: 0.75pt solid #000000; vertical-align: bottom;">  </td> <td style="padding-bottom: 4pt; border-bottom: 0.75pt solid #000000; white-space: nowrap; vertical-align: bottom;"> </td> <td style="padding-bottom: 4pt; border-bottom: 0.75pt solid #000000; white-space: nowrap; vertical-align: bottom; text-align: right;">$1,062,148</td> <td style="padding-bottom: 4pt; border-bottom: 0.75pt solid #000000; white-space: nowrap; vertical-align: bottom;"> </td> </tr> <tr style="font-size: 1pt;"> <td style="height: 3.75pt;"></td> <td colspan="4" style="height: 3.75pt;"></td> </tr> <tr style="page-break-inside: avoid; font-family: arial; font-size: 10pt;"> <td style="padding-bottom: 4pt; border-bottom: 0.75pt solid #000000; vertical-align: top;"> <div style="margin-top: 0pt; margin-bottom: 0pt; margin-left: 1.00em; text-indent: -1.00em; font-size: 10pt; font-family: arial;">Portfolio turnover rate</div> </td> <td style="border-bottom: 0.75pt solid #000000; vertical-align: bottom;">  </td> <td style="padding-bottom: 4pt; border-bottom: 0.75pt solid #000000; white-space: nowrap; vertical-align: bottom;"> </td> <td style="padding-bottom: 4pt; border-bottom: 0.75pt solid #000000; white-space: nowrap; vertical-align: bottom; text-align: right;">27%</td> <td style="padding-bottom: 4pt; border-bottom: 0.75pt solid #000000; white-space: nowrap; vertical-align: bottom;"> </td> </tr> </table> <div style="margin-top: 6pt; margin-bottom: 0pt; margin-left: 2%; text-indent: -2%; font-size: 10pt; font-family: arial;">* Excludes cash and cash equivalents.</div> 261616481 196 1062148 0.27 <div style="margin-top: 0pt; margin-bottom: 0pt; font-size: 12pt; font-family: arial;"><span style="font-weight: bold;">Fund holdings </span><span style="font-family: arial; font-size: 10pt;">(as of August 31, 2026)</span><span style="font-family: arial; font-size: 12pt;"> </span></div> <div style="margin-top: 6pt; margin-bottom: 0pt; font-size: 10pt; font-family: arial;">The tables below show the investment makeup of the Fund, with each category representing a percentage of the total net assets of the Fund.</div> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; font-family: arial; font-size: 10pt; width: 70%; border-spacing: 0px;"> <tr> <td style="width: 47%;"></td> <td style="vertical-align: bottom; width: 1%;"></td> <td></td> <td></td> <td></td> <td style="vertical-align: bottom; width: 1%;"></td> <td></td> <td style="vertical-align: bottom; width: 1%;"></td> <td></td> <td style="vertical-align: bottom; width: 1%;"></td> <td style="width: 31%;"></td> <td style="vertical-align: bottom; width: 1%;"></td> <td></td> </tr> <tr style="page-break-inside: avoid; font-family: arial; font-size: 10pt;"> <td colspan="4" style="border-bottom: 0.75pt solid #000000; vertical-align: top;"> <div style="margin-top: 0pt; margin-bottom: 0pt; font-size: 10pt; font-family: arial; text-align: center;">Sector allocation</div> <div style="font-size: 4pt; margin-top: 0pt; margin-bottom: 1pt; text-align: left;"> </div> </td> <td style="border-bottom: 0.75pt solid #000000; vertical-align: top;"> <div style="margin-top: 0pt; margin-bottom: 0pt; margin-left: 0em; text-indent: 0em; font-size: 10pt; font-family: arial;"> </div> <div style="font-size: 4pt; margin-top: 0pt; margin-bottom: 1pt;"> </div> </td> <td style="vertical-align: bottom;"> </td> <td style="vertical-align: bottom;"></td> <td style="border-left: 0.75pt solid #000000; vertical-align: bottom;"> </td> <td style="vertical-align: bottom;"></td> <td style="border-bottom: 0.75pt solid #000000; vertical-align: bottom;">  </td> <td colspan="3" style="border-bottom: 0.75pt solid #000000; vertical-align: bottom; white-space: nowrap;"> <div style="margin-top: 0pt; margin-bottom: 0pt; font-size: 10pt; font-family: arial; text-align: center;">State and territory allocation</div> <div style="font-size: 4pt; margin-top: 0pt; margin-bottom: 1pt; text-align: left;"> </div> </td> </tr> <tr style="font-size: 1pt;"> <td style="height: 3.75pt;"></td> <td colspan="4" style="height: 3.75pt;"></td> <td colspan="2" style="height: 3.75pt;"></td> <td colspan="2" style="border-left: 0.75pt solid #000000; height: 3.75pt;"> </td> <td colspan="2" style="height: 3.75pt;"></td> <td colspan="2" style="height: 3.75pt;"></td> </tr> <tr style="page-break-inside: avoid; font-family: arial; font-size: 10pt; background-color: #cceeff;"> <td style="vertical-align: top;">Education Revenue Bonds</td> <td style="vertical-align: bottom;">  </td> <td style="white-space: nowrap; vertical-align: bottom;"> </td> <td style="white-space: nowrap; vertical-align: bottom;">23.32%</td> <td style="white-space: nowrap; vertical-align: bottom;"> </td> <td style="vertical-align: bottom;"> </td> <td style="vertical-align: bottom;"></td> <td style="border-left: 0.75pt solid #000000; vertical-align: bottom;"> </td> <td style="vertical-align: bottom;"></td> <td style="vertical-align: bottom;">  </td> <td style="vertical-align: bottom; white-space: nowrap;">California</td> <td style="vertical-align: bottom;">  </td> <td style="vertical-align: bottom; white-space: nowrap;">83.33%</td> </tr> <tr style="page-break-inside: avoid; font-family: arial; font-size: 10pt;"> <td style="vertical-align: top;"> <div style="font-size: 4pt; margin-top: 0pt; margin-bottom: 0pt;"> </div> <div style="margin-top: 0pt; margin-bottom: 1pt; font-size: 10pt; font-family: arial;">Transportation Revenue Bonds</div> </td> <td style="vertical-align: bottom;">  </td> <td style="white-space: nowrap; vertical-align: bottom;"> </td> <td style="white-space: nowrap; vertical-align: bottom;">15.88%</td> <td style="white-space: nowrap; vertical-align: bottom;"> </td> <td style="vertical-align: bottom;"> </td> <td style="vertical-align: bottom;"></td> <td style="border-left: 0.75pt solid #000000; vertical-align: bottom;"> </td> <td style="vertical-align: bottom;"></td> <td style="vertical-align: bottom;">  </td> <td style="vertical-align: bottom; white-space: nowrap;">Puerto Rico</td> <td style="vertical-align: bottom;">  </td> <td style="vertical-align: bottom; white-space: nowrap;">14.39%</td> </tr> <tr style="page-break-inside: avoid; font-family: arial; font-size: 10pt; background-color: #cceeff;"> <td style="vertical-align: top;"> <div style="font-size: 4pt; margin-top: 0pt; margin-bottom: 0pt;"> </div> <div style="margin-top: 0pt; margin-bottom: 1pt; font-size: 10pt; font-family: arial;">Healthcare Revenue Bonds</div> </td> <td style="vertical-align: bottom;">  </td> <td style="white-space: nowrap; vertical-align: bottom;"> </td> <td style="white-space: nowrap; vertical-align: bottom;">13.37%</td> <td style="white-space: nowrap; vertical-align: bottom;"> </td> <td style="vertical-align: bottom;"> </td> <td style="vertical-align: bottom;"></td> <td style="border-left: 0.75pt solid #000000; vertical-align: bottom;"> </td> <td style="vertical-align: bottom;"></td> <td style="vertical-align: bottom;">  </td> <td style="vertical-align: bottom; white-space: nowrap;">New Hampshire</td> <td style="vertical-align: bottom;">  </td> <td style="vertical-align: bottom; white-space: nowrap;"> 0.70%</td> </tr> <tr style="page-break-inside: avoid; font-family: arial; font-size: 10pt;"> <td style="vertical-align: top;"> <div style="font-size: 4pt; margin-top: 0pt; margin-bottom: 0pt;"> </div> <div style="margin-top: 0pt; margin-bottom: 1pt; font-size: 10pt; font-family: arial;">Industrial Development</div> </td> <td style="vertical-align: bottom;">  </td> <td style="vertical-align: bottom;"></td> <td style="vertical-align: bottom;"></td> <td style="vertical-align: bottom;"></td> <td style="vertical-align: bottom;"> </td> <td style="vertical-align: bottom;"></td> <td style="border-left: 0.75pt solid #000000; vertical-align: bottom;"> </td> <td style="vertical-align: bottom;"></td> <td style="vertical-align: bottom;">  </td> <td style="vertical-align: bottom; white-space: nowrap;">Guam</td> <td style="vertical-align: bottom;">  </td> <td style="vertical-align: bottom; white-space: nowrap;"> 0.39%</td> </tr> <tr style="page-break-inside: avoid; font-family: arial; font-size: 10pt; background-color: #cceeff;"> <td style="vertical-align: top;"> <div style="font-size: 2pt; margin-top: 0pt; margin-bottom: 0pt;"> </div> <div style="margin-top: 0pt; margin-bottom: 1pt; font-size: 10pt; font-family: arial;"> Revenue/Pollution Control</div> </td> <td style="vertical-align: bottom;">  </td> <td style="vertical-align: bottom;"></td> <td style="vertical-align: bottom;"></td> <td style="vertical-align: bottom;"></td> <td style="vertical-align: bottom;"> </td> <td style="vertical-align: bottom;"></td> <td style="border-left: 0.75pt solid #000000; vertical-align: bottom;"> </td> <td style="vertical-align: bottom;"></td> <td style="border-bottom: 0.75pt solid #000000; vertical-align: bottom;">  </td> <td style="border-bottom: 0.75pt solid #000000; vertical-align: bottom; white-space: nowrap;"> <div style="font-size: 2pt; margin-top: 0pt; margin-bottom: 0pt;"> </div> <div style="margin-top: 0pt; margin-bottom: 0pt; font-size: 10pt; font-family: arial;">US Virgin Islands</div> <div style="font-size: 2pt; margin-top: 0pt; margin-bottom: 1pt;"> </div> </td> <td style="border-bottom: 0.75pt solid #000000; vertical-align: bottom;">  </td> <td style="border-bottom: 0.75pt solid #000000; vertical-align: bottom; white-space: nowrap;"> 0.20% <div style="font-size: 2pt; margin-top: 0pt; margin-bottom: 1pt;"> </div> </td> </tr> <tr style="font-size: 1pt;"> <td style="height: 1.5pt;"></td> <td colspan="4" style="height: 1.5pt;"></td> <td colspan="2" style="height: 1.5pt;"></td> <td colspan="2" style="border-left: 0.75pt solid #000000; height: 1.5pt;"> </td> <td colspan="4" style="height: 1.5pt;"></td> </tr> <tr style="page-break-inside: avoid; font-family: arial; font-size: 10pt;"> <td style="vertical-align: top;"> Revenue Bonds</td> <td style="vertical-align: bottom;">  </td> <td style="white-space: nowrap; vertical-align: bottom;"> </td> <td style="white-space: nowrap; vertical-align: bottom;">13.00%</td> <td style="white-space: nowrap; vertical-align: bottom;"> </td> <td style="vertical-align: bottom;"> </td> <td style="vertical-align: bottom;"></td> <td rowspan="8" style="border-left: 0.75pt solid #000000; vertical-align: bottom;"> </td> <td rowspan="8" style="vertical-align: bottom;"></td> <td rowspan="8" style="vertical-align: bottom;">  </td> <td colspan="3" rowspan="8" style="vertical-align: bottom; white-space: nowrap;"> <div style="margin-top: 0pt; margin-bottom: 0pt; font-size: 10pt; font-family: arial;"> </div> <div style="margin-top: 0pt; margin-bottom: 1pt; font-size: 10pt; font-family: arial; font-weight: bold; text-align: right;"> </div> </td> </tr> <tr style="page-break-inside: avoid; font-family: arial; font-size: 10pt; background-color: #cceeff;"> <td style="vertical-align: top;"> <div style="font-size: 4pt; margin-top: 0pt; margin-bottom: 0pt;"> </div> <div style="margin-top: 0pt; margin-bottom: 1pt; font-size: 10pt; font-family: arial;">Special Tax Revenue Bonds</div> </td> <td style="vertical-align: bottom;">  </td> <td style="white-space: nowrap; vertical-align: bottom;"> </td> <td style="white-space: nowrap; vertical-align: bottom;">10.48%</td> <td style="white-space: nowrap; vertical-align: bottom;"> </td> <td style="vertical-align: bottom;"> </td> <td style="vertical-align: bottom;"></td> </tr> <tr style="page-break-inside: avoid; font-family: arial; font-size: 10pt;"> <td style="vertical-align: top;"> <div style="font-size: 4pt; margin-top: 0pt; margin-bottom: 0pt;"> </div> <div style="margin-top: 0pt; margin-bottom: 1pt; font-size: 10pt; font-family: arial;">State General Obligation Bonds</div> </td> <td style="vertical-align: bottom;">  </td> <td style="white-space: nowrap; vertical-align: bottom;"> </td> <td style="white-space: nowrap; vertical-align: bottom;"> 6.77%</td> <td style="white-space: nowrap; vertical-align: bottom;"> </td> <td style="vertical-align: bottom;"> </td> <td style="vertical-align: bottom;"></td> </tr> <tr style="page-break-inside: avoid; font-family: arial; font-size: 10pt; background-color: #cceeff;"> <td style="vertical-align: top;"> <div style="font-size: 4pt; margin-top: 0pt; margin-bottom: 0pt;"> </div> <div style="margin-top: 0pt; margin-bottom: 1pt; font-size: 10pt; font-family: arial;">Electric Revenue Bonds</div> </td> <td style="vertical-align: bottom;">  </td> <td style="white-space: nowrap; vertical-align: bottom;"> </td> <td style="white-space: nowrap; vertical-align: bottom;"> 6.04%</td> <td style="white-space: nowrap; vertical-align: bottom;"> </td> <td style="vertical-align: bottom;"> </td> <td style="vertical-align: bottom;"></td> </tr> <tr style="page-break-inside: avoid; font-family: arial; font-size: 10pt;"> <td style="vertical-align: top;"> <div style="font-size: 4pt; margin-top: 0pt; margin-bottom: 0pt;"> </div> <div style="margin-top: 0pt; margin-bottom: 1pt; font-size: 10pt; font-family: arial;">Housing Revenue Bonds</div> </td> <td style="vertical-align: bottom;">  </td> <td style="white-space: nowrap; vertical-align: bottom;"> </td> <td style="white-space: nowrap; vertical-align: bottom;"> 3.04%</td> <td style="white-space: nowrap; vertical-align: bottom;"> </td> <td style="vertical-align: bottom;"> </td> <td style="vertical-align: bottom;"></td> </tr> <tr style="page-break-inside: avoid; font-family: arial; font-size: 10pt; background-color: #cceeff;"> <td style="vertical-align: top;"> <div style="font-size: 4pt; margin-top: 0pt; margin-bottom: 0pt;"> </div> <div style="margin-top: 0pt; margin-bottom: 1pt; font-size: 10pt; font-family: arial;">Lease Revenue Bonds</div> </td> <td style="vertical-align: bottom;">  </td> <td style="white-space: nowrap; vertical-align: bottom;"> </td> <td style="white-space: nowrap; vertical-align: bottom;"> 2.88%</td> <td style="white-space: nowrap; vertical-align: bottom;"> </td> <td style="vertical-align: bottom;"> </td> <td style="vertical-align: bottom;"></td> </tr> <tr style="page-break-inside: avoid; font-family: arial; font-size: 10pt;"> <td style="vertical-align: top;"> <div style="font-size: 4pt; margin-top: 0pt; margin-bottom: 0pt;"> </div> <div style="margin-top: 0pt; margin-bottom: 1pt; font-size: 10pt; font-family: arial;">Water &amp; Sewer Revenue Bonds</div> </td> <td style="vertical-align: bottom;">  </td> <td style="white-space: nowrap; vertical-align: bottom;"> </td> <td style="white-space: nowrap; vertical-align: bottom;"> 2.34%</td> <td style="white-space: nowrap; vertical-align: bottom;"> </td> <td style="vertical-align: bottom;"> </td> <td style="vertical-align: bottom;"></td> </tr> <tr style="font-size: 10pt; font-family: arial;"> <td style="border-bottom: 0.75pt solid #000000; vertical-align: top;"> </td> <td style="border-bottom: 0.75pt solid #000000; vertical-align: bottom;">  </td> <td style="border-bottom: 0.75pt solid #000000; vertical-align: bottom;"> </td> <td style="border-bottom: 0.75pt solid #000000; vertical-align: bottom;"> </td> <td style="border-bottom: 0.75pt solid #000000; vertical-align: bottom;"> </td> <td style="vertical-align: bottom;"> </td> <td style="vertical-align: bottom;"></td> </tr> </table> 0.2332 0.8333 0.1588 0.1439 0.1337 0.0070 0.0039 0.0020 0.1300 0.1048 0.0677 0.0604 0.0304 0.0288 0.0234 <div style="margin-top: 18pt; margin-bottom: 0pt; font-size: 12pt; font-family: arial; font-weight: bold;">Material Fund changes</div><div style="margin-top: 10pt; margin-bottom: 0pt; font-size: 10pt; font-family: arial;">Effective December 1, 2025, the Fund was renamed Nomura Tax‑Free California Fund.</div><div style="margin-top: 6pt; margin-bottom: 0pt; font-size: 10pt; font-family: arial;">This is a summary of certain changes to the Fund that occurred during the reporting period. For more complete information, you may review the Fund’s next prospectus, which we expect to be available by December 30, 2026, at nomuraassetmanagement.com/literature or upon request at 800 523‑1918, weekdays from 8:30am to 6:00pm ET.</div> <div style="margin-top: 10pt; margin-bottom: 0pt; font-size: 10pt; font-family: arial;">Effective December 1, 2025, the Fund was renamed Nomura Tax‑Free California Fund.</div> 2025-12-01 <div style="margin-top: 6pt; margin-bottom: 0pt; font-size: 10pt; font-family: arial;">This is a summary of certain changes to the Fund that occurred during the reporting period. For more complete information, you may review the Fund’s next prospectus, which we expect to be available by December 30, 2026, at nomuraassetmanagement.com/literature or upon request at 800 523‑1918, weekdays from 8:30am to 6:00pm ET.</div> nomuraassetmanagement.com/literature 800 523‑1918 <div style="margin-top: 6pt; margin-bottom: 0pt; font-size: 12pt; font-family: arial; font-weight: bold;">Changes in and disagreements with accountants</div> <div style="margin-top: 12pt; margin-bottom: 0pt; font-size: 10pt; font-family: arial;">During the reporting period, there was a change in the Fund’s independent registered public accounting firm. On May 20, 2026, the Fund’s Board of Trustees, upon the recommendation of its Audit Committee, approved the appointment of Cohen &amp; Company, Ltd. as the independent registered public accounting firm for the Fund, effectively dismissing PricewaterhouseCoopers LLP (PwC) as the Fund’s independent registered public accounting firm. There were no disagreements with PwC during the Fund’s two most recent fiscal years or the subsequent interim period through May 20, 2026.</div> During the reporting period, there was a change in the Fund’s independent registered public accounting firm. On May 20, 2026, the Fund’s Board of Trustees, upon the recommendation of its Audit Committee, approved the appointment of Cohen &amp; Company, Ltd. as the independent registered public accounting firm for the Fund, effectively dismissing PricewaterhouseCoopers LLP (PwC) as the Fund’s independent registered public accounting firm. 2026-05-20 Nomura Tax‑Free California Fund (formerly, Macquarie Tax‑Free California Fund) Class C DVFTX This annual shareholder report contains important information about Nomura Tax‑Free California Fund (Fund) for the period of September 1, 2025, to August 31, 2026. annual shareholder report You can find additional information about the Fund at nomuraassetmanagement.com/literature. You can also request this information by contacting us at 800 523‑1918, weekdays from 8:30am to 6:00pm ET. nomuraassetmanagement.com/literature 800 523‑1918 <div style="margin-top:10pt;margin-bottom:0pt;font-size:10pt;font-family:arial;font-weight:bold;">This report describes changes to the Fund that occurred during the reporting period. </div> <div style="margin-top:12pt;margin-bottom:0pt;font-size:10pt;font-family:arial;font-weight:bold;">What were the Fund’s costs for the last 12 months? </div><div style="margin-top:6pt;margin-bottom:0pt;font-size:10pt;font-family:arial;"><span style="font-style:italic">(Based on a hypothetical $10,000 investment) </span></div> <table cellpadding="0" cellspacing="0" style="border-collapse:collapse;font-family:arial;font-size:10pt;width:100%;border-spacing:0px;margin:0 auto"> <tr> <td style="width:15%;"></td> <td style="vertical-align:bottom;width:1%;"></td> <td style="width:37%;"></td> <td style="vertical-align:bottom;width:1%;"></td> <td style="width:46%;"></td> </tr> <tr style="page-break-inside:avoid;font-family:arial;font-size:10pt"> <td style="BORDER-BOTTOM:0.75pt solid #000000;vertical-align:bottom;">  Class</td> <td style=" BORDER-BOTTOM:0.75pt solid #000000;vertical-align:bottom;"> </td> <td style="BORDER-BOTTOM:0.75pt solid #000000;vertical-align:bottom;text-align:center;">Costs of a $10,000 investment</td> <td style=" BORDER-BOTTOM:0.75pt solid #000000;vertical-align:bottom;"> </td> <td style="BORDER-BOTTOM:0.75pt solid #000000;vertical-align:bottom;text-align:center;">  Costs paid as a percentage of a $10,000 investment<sup style="font-size:75%;vertical-align:top">1</sup>  </td> </tr> <tr style="page-break-inside:avoid;font-family:arial;font-size:10pt;background-color:#cceeff"> <td style="vertical-align:top;"> <div style="margin-top:0pt;margin-bottom:0pt;margin-left:1.00em;text-indent:-1.00em;font-size:10pt;font-family:arial;"> Class C</div></td> <td style="vertical-align:bottom;"> </td> <td style="vertical-align:bottom;white-space:nowrap;text-align:center;">$161</td> <td style="vertical-align:bottom;"> </td> <td style="vertical-align:bottom;white-space:nowrap;text-align:center;">1.57%</td> </tr> </table> <table cellpadding="0" cellspacing="0" style="border-collapse:collapse;font-family:arial;font-size:10pt;border-spacing:0px;width:100%"> <tr style="page-break-inside:avoid"> <td style="width:0%;"> </td> <td style="width:1%;vertical-align:top;text-align:left;"><sup style="font-size:75%;vertical-align:top">1</sup></td> <td style="vertical-align:top;text-align:left;"> <div style="margin-top:0pt;margin-bottom:0pt;font-size:10pt;font-family:arial;text-align:left;">Costs paid as a percentage of a $10,000 investment would have been 1.55% if distressed investment expenses were not included. </div></td> </tr></table> 161 0.0157 <div style="margin-top:12pt;margin-bottom:0pt;font-size:12pt;font-family:arial;font-weight:bold;">Management’s discussion of Fund performance </div><div style="margin-top:10pt;margin-bottom:0pt;font-size:10pt;font-family:arial;font-weight:bold;">Performance highlights </div><div style="margin-top:6pt;margin-bottom:0pt;font-size:10pt;font-family:arial;">Nomura Tax‑Free California Fund (Class C) returned 4.56% (excluding sales charge) for the 12 months ended August 31, 2026. During the same period, the Bloomberg Municipal Bond Index, the Fund’s broad-based securities market index (benchmark), returned 4.12%. </div><div style="margin-top:12pt;margin-bottom:0pt;font-size:10pt;font-family:arial;font-weight:bold;">Market highlights </div> <table cellpadding="0" cellspacing="0" style="border-collapse:collapse;font-family:arial;font-size:10pt;border-spacing:0px;width:100%"> <tr style="page-break-inside:avoid"> <td style="width:3%;"> </td> <td style="width:1%;vertical-align:top;text-align:left;">•</td> <td style="width:1%;vertical-align:top;"> </td> <td style="vertical-align:top;text-align:left;"> <div style="margin-top:0pt;margin-bottom:0pt;font-family:arial;font-size:10pt;text-align:left;">During the reporting period, monetary policy and geopolitical uncertainty impacted the municipal bond market. US Federal Reserve (Fed) cuts in 4Q25 and legislative clarity contributed to performance. However, the US‑Iran conflict and subsequent inflation concerns applied pressure to the market. Additionally, market technicals impacted performance. </div></td> </tr></table> <table cellpadding="0" cellspacing="0" style="border-collapse:collapse;font-family:arial;font-size:10pt;border-spacing:0px;width:100%"> <tr style="page-break-inside:avoid"> <td style="width:3%;"> </td> <td style="width:1%;vertical-align:top;text-align:left;">•</td> <td style="width:1%;vertical-align:top;"> </td> <td style="vertical-align:top;text-align:left;"> <div style="margin-top:0pt;margin-bottom:0pt;font-family:arial;font-size:10pt;text-align:left;">Supply was elevated but met with strong demand as municipal mutual funds took in a near record amount in the first eight months of 2026. More importantly, the flows were evenly distributed between open-ended funds and exchange-traded funds (ETFs) in calendar year 2026. </div></td> </tr></table> <table cellpadding="0" cellspacing="0" style="border-collapse:collapse;font-family:arial;font-size:10pt;border-spacing:0px;width:100%"> <tr style="page-break-inside:avoid"> <td style="width:3%;"> </td> <td style="width:1%;vertical-align:top;text-align:left;">•</td> <td style="width:1%;vertical-align:top;"> </td> <td style="vertical-align:top;text-align:left;"> <div style="margin-top:0pt;margin-bottom:0pt;font-family:arial;font-size:10pt;text-align:left;">Municipal bond yields rose on the front end of the curve and fell in the intermediate and long segments. For example, the MMD AAA 2‑year yield rose 33 basis points (bps) while the 20‑year yield fell 15 bps and the 30‑year yield fell 1 bp (a basis point equals one‑hundredth of a percentage point). As a result, the 2‑year/30‑year curve flattened, starting the period at 241 bps and ending the period at 207 bps. </div></td> </tr></table> <table cellpadding="0" cellspacing="0" style="border-collapse:collapse;font-family:arial;font-size:10pt;border-spacing:0px;width:100%"> <tr style="page-break-inside:avoid"> <td style="width:3%;"> </td> <td style="width:1%;vertical-align:top;text-align:left;">•</td> <td style="width:1%;vertical-align:top;"> </td> <td style="vertical-align:top;text-align:left;"> <div style="margin-top:0pt;margin-bottom:0pt;font-family:arial;font-size:10pt;text-align:left;">The long end of the curve outperformed as did lower investment grade BBB‑rated and below-investment-grade securities during the reporting period, in part, driven by the strong fund flows into long mutual funds. For example, the Bloomberg Municipal Bond Index returned 4.12% while the long segment (22+ years) returned 6.45%; BBB‑rated and below-investment-grade securities returned 6.08% and 6.66%, respectively. Conversely, the front end of the curve detracted from performance for the period with the Bloomberg Municipal Bond Index’s 1‑year (1‑2 years) segment only up 2.36%. </div></td> </tr></table><div style="margin-top:12pt;margin-bottom:0pt;font-size:10pt;font-family:arial;font-weight:bold;">Top contributors to performance: </div> <table cellpadding="0" cellspacing="0" style="border-collapse:collapse;font-family:arial;font-size:10pt;border-spacing:0px;width:100%"> <tr style="page-break-inside:avoid"> <td style="width:3%;"> </td> <td style="width:1%;vertical-align:top;text-align:left;">•</td> <td style="width:1%;vertical-align:top;"> </td> <td style="vertical-align:top;text-align:left;"> <div style="margin-top:0pt;margin-bottom:0pt;font-family:arial;font-size:10pt;text-align:left;">An overweight to the long end of the curve contributed to performance. </div></td> </tr></table> <table cellpadding="0" cellspacing="0" style="border-collapse:collapse;font-family:arial;font-size:10pt;border-spacing:0px;width:100%"> <tr style="page-break-inside:avoid"> <td style="width:3%;"> </td> <td style="width:1%;vertical-align:top;text-align:left;">•</td> <td style="width:1%;vertical-align:top;"> </td> <td style="vertical-align:top;text-align:left;"> <div style="margin-top:0pt;margin-bottom:0pt;font-family:arial;font-size:10pt;text-align:left;">An overweight to BBB‑rated securities contributed for the period. </div></td> </tr></table><div style="margin-top:0pt;margin-bottom:0pt;font-size:10pt;font-family:arial;font-weight:bold;">Top detractors from performance: </div> <table cellpadding="0" cellspacing="0" style="border-collapse:collapse;font-family:arial;font-size:10pt;border-spacing:0px;width:100%"> <tr style="page-break-inside:avoid"> <td style="width:3%;"> </td> <td style="width:1%;vertical-align:top;text-align:left;">•</td> <td style="width:1%;vertical-align:top;"> </td> <td style="vertical-align:top;text-align:left;"> <div style="margin-top:0pt;margin-bottom:0pt;font-family:arial;font-size:10pt;text-align:left;">A modest out‑of‑benchmark allocation to the front end of the curve (0‑1 years) was a drag on performance as this part of the curve lagged the overall market. </div></td> </tr></table> <table cellpadding="0" cellspacing="0" style="border-collapse:collapse;font-family:arial;font-size:10pt;border-spacing:0px;width:100%"> <tr style="page-break-inside:avoid"> <td style="width:3%;"> </td> <td style="width:1%;vertical-align:top;text-align:left;">•</td> <td style="width:1%;vertical-align:top;"> </td> <td style="vertical-align:top;text-align:left;"> <div style="margin-top:0pt;margin-bottom:0pt;font-family:arial;font-size:10pt;text-align:left;">The Fund’s allocation to the Industrial Development Revenue (IDR)/Pollution Control Revenue (PCR) sector was a detractor, underperforming the benchmark’s IDR/PCR return of 3.03%. </div></td> </tr></table> <div style="margin-top:12pt;margin-bottom:0pt;font-size:12pt;font-family:arial;font-weight:bold;">Fund performance </div><div style="margin-top:12pt;margin-bottom:0pt;font-size:10pt;font-family:arial;">The following graph compares the initial and subsequent account values at the end of each of the most recently completed 10 fiscal years of the Class. It also assumes a $10,000 initial investment at the beginning of the first full fiscal year in a broad-based securities market index for the same period. </div><div style="margin-top:12pt;margin-bottom:0pt;font-size:10pt;font-family:arial;font-weight:bold;">Growth of $10,000 investment </div><div style="margin-top:2pt;margin-bottom:0pt;font-size:10pt;font-family:arial;">For the period August 31, 2016, through August 31, 2026 </div><div style="margin-top:0pt;margin-bottom:0pt;text-align:center;"> <img alt="LOGO" src="g180905g06g06.jpg" style="width:6.30555in;height:1.86939in;"/> </div> <table cellpadding="0" cellspacing="0" style="border-collapse:collapse;font-family:arial;font-size:10pt;width:100%;border-spacing:0px;margin:0 auto"> <tr> <td style="width:81%;"></td> <td style="vertical-align:bottom;width:3%;"></td> <td></td> <td style="vertical-align:bottom;width:3%;"></td> <td></td> <td style="vertical-align:bottom;width:3%;"></td> <td></td> </tr> <tr style="page-break-inside:avoid;font-family:arial;font-size:10pt"> <td style="BORDER-BOTTOM:0.75pt solid #000000;vertical-align:bottom;"><span style="font-weight:bold">  Average annual total returns (as of August 31, 2026)</span></td> <td style=" BORDER-BOTTOM:0.75pt solid #000000;vertical-align:bottom;">  </td> <td style="BORDER-BOTTOM:0.75pt solid #000000;vertical-align:bottom;text-align:center;"><span style="font-weight:bold">1 year</span></td> <td style=" BORDER-BOTTOM:0.75pt solid #000000;vertical-align:bottom;"> </td> <td style="BORDER-BOTTOM:0.75pt solid #000000;vertical-align:bottom;text-align:center;"><span style="font-weight:bold">5 year</span></td> <td style=" BORDER-BOTTOM:0.75pt solid #000000;vertical-align:bottom;"> </td> <td style="BORDER-BOTTOM:0.75pt solid #000000;vertical-align:bottom;text-align:center;"><span style="font-weight:bold">10 year</span></td> </tr> <tr style="font-size:1pt"> <td style="height:3pt;"></td> <td colspan="2" style="height:3pt;"></td> <td colspan="2" style="height:3pt;"></td> <td colspan="2" style="height:3pt;"></td> </tr> <tr style="page-break-inside:avoid;font-family:arial;font-size:10pt;background-color:#cceeff"> <td style="padding-bottom:3pt ;BORDER-BOTTOM:0.75pt solid #000000;vertical-align:top;"> <div style="margin-top:0pt;margin-bottom:0pt;margin-left:1.00em;text-indent:-1.00em;font-size:10pt;font-family:arial;">  Nomura Tax‑Free California Fund (Class C) – including sales charge</div></td> <td style=" BORDER-BOTTOM:0.75pt solid #000000;vertical-align:bottom;">  </td> <td style="padding-bottom:3pt ;BORDER-BOTTOM:0.75pt solid #000000;vertical-align:bottom;white-space:nowrap;text-align:center;">3.56%</td> <td style=" BORDER-BOTTOM:0.75pt solid #000000;vertical-align:bottom;"> </td> <td style="padding-bottom:3pt ;BORDER-BOTTOM:0.75pt solid #000000;vertical-align:bottom;white-space:nowrap;text-align:center;">-0.70%</td> <td style=" BORDER-BOTTOM:0.75pt solid #000000;vertical-align:bottom;"> </td> <td style="padding-bottom:3pt ;BORDER-BOTTOM:0.75pt solid #000000;vertical-align:bottom;white-space:nowrap;text-align:center;">1.03%</td> </tr> <tr style="font-size:1pt"> <td style="height:3pt;"></td> <td colspan="2" style="height:3pt;"></td> <td colspan="2" style="height:3pt;"></td> <td colspan="2" style="height:3pt;"></td> </tr> <tr style="page-break-inside:avoid;font-family:arial;font-size:10pt"> <td style="padding-bottom:3pt ;BORDER-BOTTOM:0.75pt solid #000000;vertical-align:top;"> <div style="margin-top:0pt;margin-bottom:0pt;margin-left:1.00em;text-indent:-1.00em;font-size:10pt;font-family:arial;">  Nomura Tax‑Free California Fund (Class C) – excluding sales charge</div></td> <td style=" BORDER-BOTTOM:0.75pt solid #000000;vertical-align:bottom;">  </td> <td style="padding-bottom:3pt ;BORDER-BOTTOM:0.75pt solid #000000;vertical-align:bottom;white-space:nowrap;text-align:center;">4.56%</td> <td style=" BORDER-BOTTOM:0.75pt solid #000000;vertical-align:bottom;"> </td> <td style="padding-bottom:3pt ;BORDER-BOTTOM:0.75pt solid #000000;vertical-align:bottom;white-space:nowrap;text-align:center;">-0.70%</td> <td style=" BORDER-BOTTOM:0.75pt solid #000000;vertical-align:bottom;"> </td> <td style="padding-bottom:3pt ;BORDER-BOTTOM:0.75pt solid #000000;vertical-align:bottom;white-space:nowrap;text-align:center;">1.03%</td> </tr> <tr style="font-size:1pt"> <td style="height:3pt;"></td> <td colspan="2" style="height:3pt;"></td> <td colspan="2" style="height:3pt;"></td> <td colspan="2" style="height:3pt;"></td> </tr> <tr style="page-break-inside:avoid;font-family:arial;font-size:10pt;background-color:#cceeff"> <td style="padding-bottom:3pt ;BORDER-BOTTOM:0.75pt solid #000000;vertical-align:top;"> <div style="margin-top:0pt;margin-bottom:0pt;margin-left:1.00em;text-indent:-1.00em;font-size:10pt;font-family:arial;">  Bloomberg Municipal Bond Index</div></td> <td style=" BORDER-BOTTOM:0.75pt solid #000000;vertical-align:bottom;">  </td> <td style="padding-bottom:3pt ;BORDER-BOTTOM:0.75pt solid #000000;vertical-align:bottom;white-space:nowrap;text-align:center;">4.12%</td> <td style=" BORDER-BOTTOM:0.75pt solid #000000;vertical-align:bottom;"> </td> <td style="padding-bottom:3pt ;BORDER-BOTTOM:0.75pt solid #000000;vertical-align:bottom;white-space:nowrap;text-align:center;">0.54%</td> <td style=" BORDER-BOTTOM:0.75pt solid #000000;vertical-align:bottom;"> </td> <td style="padding-bottom:3pt ;BORDER-BOTTOM:0.75pt solid #000000;vertical-align:bottom;white-space:nowrap;text-align:center;">1.91%</td> </tr> </table> Nomura Tax‑Free California Fund (Class C) – including sales charge 0.0356 -0.0070 0.0103 Nomura Tax‑Free California Fund (Class C) – excluding sales charge 0.0456 -0.0070 0.0103 Bloomberg Municipal Bond Index 0.0412 0.0054 0.0191 Keep in mind that the Fund’s past performance is not a good predictor of how the Fund will perform in the future. Visit nomuraassetmanagement.com/performance for the most recent performance information. The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares. <div style="margin-top:12pt;margin-bottom:0pt;font-size:12pt;font-family:arial;"><span style="font-weight:bold">Fund statistics </span><span style="font-family:arial;font-size:10pt">(as of August 31, 2026)</span><span style="font-family:arial;font-size:12pt"> </span></div> <table cellpadding="0" cellspacing="0" style="border-collapse:collapse;font-family:arial;font-size:10pt;width:100%;border-spacing:0px;margin:0 auto"> <tr> <td style="width:88%;"></td> <td style="vertical-align:bottom;width:2%;"></td> <td></td> <td></td> <td></td> </tr> <tr style="font-size:1pt"> <td style="height:3.75pt;"></td> <td colspan="4" style="height:3.75pt;"></td> </tr> <tr style="page-break-inside:avoid;font-family:arial;font-size:10pt;background-color:#cceeff"> <td style="padding-bottom:4pt ;BORDER-BOTTOM:0.75pt solid #000000;vertical-align:top;"> <div style="margin-top:0pt;margin-bottom:0pt;margin-left:1.00em;text-indent:-1.00em;font-size:10pt;font-family:arial;">Fund net assets</div></td> <td style=" BORDER-BOTTOM:0.75pt solid #000000;vertical-align:bottom;">  </td> <td style="padding-bottom:4pt ;BORDER-BOTTOM:0.75pt solid #000000;white-space:nowrap;vertical-align:bottom;">$</td> <td style="padding-bottom:4pt ;BORDER-BOTTOM:0.75pt solid #000000;white-space:nowrap;vertical-align:bottom;text-align:right;">261,616,481</td> <td style="padding-bottom:4pt ;BORDER-BOTTOM:0.75pt solid #000000;white-space:nowrap;vertical-align:bottom;"> </td> </tr> <tr style="font-size:1pt"> <td style="height:3.75pt;"></td> <td colspan="4" style="height:3.75pt;"></td> </tr> <tr style="page-break-inside:avoid;font-family:arial;font-size:10pt"> <td style="padding-bottom:4pt ;BORDER-BOTTOM:0.75pt solid #000000;vertical-align:top;"> <div style="margin-top:0pt;margin-bottom:0pt;margin-left:1.00em;text-indent:-1.00em;font-size:10pt;font-family:arial;">Total number of portfolio holdings*</div></td> <td style=" BORDER-BOTTOM:0.75pt solid #000000;vertical-align:bottom;">  </td> <td style="padding-bottom:4pt ;BORDER-BOTTOM:0.75pt solid #000000;white-space:nowrap;vertical-align:bottom;"> </td> <td style="padding-bottom:4pt ;BORDER-BOTTOM:0.75pt solid #000000;white-space:nowrap;vertical-align:bottom;text-align:right;">196</td> <td style="padding-bottom:4pt ;BORDER-BOTTOM:0.75pt solid #000000;white-space:nowrap;vertical-align:bottom;"> </td> </tr> <tr style="font-size:1pt"> <td style="height:3.75pt;"></td> <td colspan="4" style="height:3.75pt;"></td> </tr> <tr style="page-break-inside:avoid;font-family:arial;font-size:10pt;background-color:#cceeff"> <td style="padding-bottom:4pt ;BORDER-BOTTOM:0.75pt solid #000000;vertical-align:top;"> <div style="margin-top:0pt;margin-bottom:0pt;margin-left:1.00em;text-indent:-1.00em;font-size:10pt;font-family:arial;">Total net advisory fees paid (during reporting period)</div></td> <td style=" BORDER-BOTTOM:0.75pt solid #000000;vertical-align:bottom;">  </td> <td style="padding-bottom:4pt ;BORDER-BOTTOM:0.75pt solid #000000;white-space:nowrap;vertical-align:bottom;"> </td> <td style="padding-bottom:4pt ;BORDER-BOTTOM:0.75pt solid #000000;white-space:nowrap;vertical-align:bottom;text-align:right;">$1,062,148</td> <td style="padding-bottom:4pt ;BORDER-BOTTOM:0.75pt solid #000000;white-space:nowrap;vertical-align:bottom;"> </td> </tr> <tr style="font-size:1pt"> <td style="height:3.75pt;"></td> <td colspan="4" style="height:3.75pt;"></td> </tr> <tr style="page-break-inside:avoid;font-family:arial;font-size:10pt"> <td style="padding-bottom:4pt ;BORDER-BOTTOM:0.75pt solid #000000;vertical-align:top;"> <div style="margin-top:0pt;margin-bottom:0pt;margin-left:1.00em;text-indent:-1.00em;font-size:10pt;font-family:arial;">Portfolio turnover rate</div></td> <td style=" BORDER-BOTTOM:0.75pt solid #000000;vertical-align:bottom;">  </td> <td style="padding-bottom:4pt ;BORDER-BOTTOM:0.75pt solid #000000;white-space:nowrap;vertical-align:bottom;"> </td> <td style="padding-bottom:4pt ;BORDER-BOTTOM:0.75pt solid #000000;white-space:nowrap;vertical-align:bottom;text-align:right;">27%</td> <td style="padding-bottom:4pt ;BORDER-BOTTOM:0.75pt solid #000000;white-space:nowrap;vertical-align:bottom;"> </td> </tr> </table><div style="margin-top:6pt;margin-bottom:0pt;margin-left:2%;text-indent:-2%;font-size:10pt;font-family:arial;">* Excludes cash and cash equivalents. </div> 261616481 196 1062148 0.27 <div style="margin-top:0pt;margin-bottom:0pt;font-size:12pt;font-family:arial;"><span style="font-weight:bold">Fund holdings </span><span style="font-family:arial;font-size:10pt">(as of August 31, 2026)</span><span style="font-family:arial;font-size:12pt"> </span></div><div style="margin-top:12pt;margin-bottom:0pt;font-size:10pt;font-family:arial;">The tables below show the investment makeup of the Fund, with each category representing a percentage of the total net assets of the Fund. </div> <table cellpadding="0" cellspacing="0" style="border-collapse:collapse;font-family:arial;font-size:10pt;width:70%;border-spacing:0px"> <tr> <td style="width:45%;"></td> <td style="vertical-align:bottom;width:1%;"></td> <td></td> <td></td> <td></td> <td style="vertical-align:bottom;width:1%;"></td> <td></td> <td style="vertical-align:bottom;width:1%;"></td> <td></td> <td style="vertical-align:bottom;width:1%;"></td> <td style="width:33%;"></td> <td style="vertical-align:bottom;width:1%;"></td> <td></td> <td></td> <td></td> </tr> <tr style="page-break-inside:avoid;font-family:arial;font-size:8pt"> <td colspan="4" style="BORDER-BOTTOM:0.75pt solid #000000;vertical-align:bottom;"> <div style="margin-top:0pt;margin-bottom:0pt;font-size:10pt;font-family:arial;text-align:center;">Sector allocation</div> <div style="font-size:4pt;margin-top:0pt;margin-bottom:1pt;text-align:left;"> </div></td> <td style=" BORDER-BOTTOM:0.75pt solid #000000;vertical-align:bottom;"> </td> <td style="vertical-align:bottom;"> </td> <td style="vertical-align:bottom;"> </td> <td style=" BORDER-LEFT:0.75pt solid #000000;vertical-align:bottom;"> </td> <td style="vertical-align:bottom;"> </td> <td style=" BORDER-BOTTOM:0.75pt solid #000000;vertical-align:bottom;"> </td> <td colspan="4" style="BORDER-BOTTOM:0.75pt solid #000000;vertical-align:bottom;"> <div style="margin-top:0pt;margin-bottom:0pt;font-size:10pt;font-family:arial;text-align:center;">State and territory allocation</div> <div style="font-size:4pt;margin-top:0pt;margin-bottom:1pt;text-align:left;"> </div></td> <td style=" BORDER-BOTTOM:0.75pt solid #000000;vertical-align:bottom;"> </td> </tr> <tr style="page-break-inside:avoid;font-family:arial;font-size:10pt;background-color:#cceeff"> <td style="vertical-align:top;"> <div style="font-size:4pt;margin-top:0pt;margin-bottom:0pt;"> </div> <div style="margin-top:0pt;margin-bottom:1pt;margin-left:1.00em;text-indent:-1.00em;font-size:10pt;font-family:arial;">Education Revenue Bonds</div></td> <td style="vertical-align:bottom;">  </td> <td style="white-space:nowrap;vertical-align:bottom;"> </td> <td style="white-space:nowrap;vertical-align:bottom;text-align:right;">23.32%</td> <td style="white-space:nowrap;vertical-align:bottom;"> </td> <td style="vertical-align:bottom;"> </td> <td style="vertical-align:bottom;"></td> <td style=" BORDER-LEFT:0.75pt solid #000000;vertical-align:bottom;"> </td> <td style="vertical-align:bottom;"></td> <td style="vertical-align:bottom;"> </td> <td style="vertical-align:bottom;white-space:nowrap;">California</td> <td style="vertical-align:bottom;">  </td> <td style="white-space:nowrap;vertical-align:bottom;"> </td> <td style="white-space:nowrap;vertical-align:bottom;text-align:right;">83.33%</td> <td style="white-space:nowrap;vertical-align:bottom;"> </td> </tr> <tr style="page-break-inside:avoid;font-family:arial;font-size:10pt"> <td style="vertical-align:top;"> <div style="font-size:4pt;margin-top:0pt;margin-bottom:0pt;"> </div> <div style="margin-top:0pt;margin-bottom:1pt;margin-left:1.00em;text-indent:-1.00em;font-size:10pt;font-family:arial;">Transportation Revenue Bonds</div></td> <td style="vertical-align:bottom;">  </td> <td style="white-space:nowrap;vertical-align:bottom;"> </td> <td style="white-space:nowrap;vertical-align:bottom;text-align:right;">15.88%</td> <td style="white-space:nowrap;vertical-align:bottom;"> </td> <td style="vertical-align:bottom;"> </td> <td style="vertical-align:bottom;"></td> <td style=" BORDER-LEFT:0.75pt solid #000000;vertical-align:bottom;"> </td> <td style="vertical-align:bottom;"></td> <td style="vertical-align:bottom;"> </td> <td style="vertical-align:bottom;white-space:nowrap;">Puerto Rico</td> <td style="vertical-align:bottom;">  </td> <td style="white-space:nowrap;vertical-align:bottom;"> </td> <td style="white-space:nowrap;vertical-align:bottom;text-align:right;">14.39%</td> <td style="white-space:nowrap;vertical-align:bottom;"> </td> </tr> <tr style="page-break-inside:avoid;font-family:arial;font-size:10pt;background-color:#cceeff"> <td style="vertical-align:top;"> <div style="font-size:4pt;margin-top:0pt;margin-bottom:0pt;"> </div> <div style="margin-top:0pt;margin-bottom:1pt;margin-left:1.00em;text-indent:-1.00em;font-size:10pt;font-family:arial;">Healthcare Revenue Bonds</div></td> <td style="vertical-align:bottom;">  </td> <td style="white-space:nowrap;vertical-align:bottom;"> </td> <td style="white-space:nowrap;vertical-align:bottom;text-align:right;">13.37%</td> <td style="white-space:nowrap;vertical-align:bottom;"> </td> <td style="vertical-align:bottom;"> </td> <td style="vertical-align:bottom;"></td> <td style=" BORDER-LEFT:0.75pt solid #000000;vertical-align:bottom;"> </td> <td style="vertical-align:bottom;"></td> <td style="vertical-align:bottom;"> </td> <td style="vertical-align:bottom;white-space:nowrap;">New Hampshire</td> <td style="vertical-align:bottom;">  </td> <td style="white-space:nowrap;vertical-align:bottom;"> </td> <td style="white-space:nowrap;vertical-align:bottom;text-align:right;">0.70%</td> <td style="white-space:nowrap;vertical-align:bottom;"> </td> </tr> <tr style="page-break-inside:avoid;font-family:arial;font-size:10pt"> <td style="vertical-align:top;"> <div style="font-size:4pt;margin-top:0pt;margin-bottom:0pt;"> </div> <div style="margin-top:0pt;margin-bottom:1pt;margin-left:1.00em;text-indent:-1.00em;font-size:10pt;font-family:arial;">Industrial Development</div></td> <td style="vertical-align:bottom;">  </td> <td style="vertical-align:bottom;"></td> <td style="vertical-align:bottom;"></td> <td style="vertical-align:bottom;"></td> <td style="vertical-align:bottom;"> </td> <td style="vertical-align:bottom;"></td> <td style=" BORDER-LEFT:0.75pt solid #000000;vertical-align:bottom;"> </td> <td style="vertical-align:bottom;"></td> <td style="vertical-align:bottom;"> </td> <td style="vertical-align:bottom;white-space:nowrap;">Guam</td> <td style="vertical-align:bottom;">  </td> <td style="white-space:nowrap;vertical-align:bottom;"> </td> <td style="white-space:nowrap;vertical-align:bottom;text-align:right;">0.39%</td> <td style="white-space:nowrap;vertical-align:bottom;"> </td> </tr> <tr style="page-break-inside:avoid;font-family:arial;font-size:10pt;background-color:#cceeff"> <td style="vertical-align:top;"> <div style="font-size:2pt;margin-top:0pt;margin-bottom:0pt;"> </div> <div style="margin-top:0pt;margin-bottom:1pt;margin-left:1.50em;text-indent:-1.00em;font-size:10pt;font-family:arial;">Revenue/Pollution Control</div></td> <td style="vertical-align:bottom;">  </td> <td style="vertical-align:bottom;"></td> <td style="vertical-align:bottom;"></td> <td style="vertical-align:bottom;"></td> <td style="vertical-align:bottom;"> </td> <td style="vertical-align:bottom;"></td> <td style=" BORDER-LEFT:0.75pt solid #000000;vertical-align:bottom;"> </td> <td style="vertical-align:bottom;"></td> <td style=" BORDER-BOTTOM:0.75pt solid #000000;vertical-align:bottom;"> </td> <td style="BORDER-BOTTOM:0.75pt solid #000000;vertical-align:bottom;white-space:nowrap;"> <div style="font-size:2pt;margin-top:0pt;margin-bottom:0pt;"> </div> <div style="margin-top:0pt;margin-bottom:0pt;font-size:10pt;font-family:arial;">US Virgin Islands</div> <div style="font-size:2pt;margin-top:0pt;margin-bottom:1pt;"> </div></td> <td style=" BORDER-BOTTOM:0.75pt solid #000000;vertical-align:bottom;">  </td> <td style="BORDER-BOTTOM:0.75pt solid #000000;white-space:nowrap;vertical-align:bottom;">   <div style="font-size:2pt;margin-top:0pt;margin-bottom:1pt;"> </div></td> <td style="BORDER-BOTTOM:0.75pt solid #000000;white-space:nowrap;vertical-align:bottom;text-align:right;"> 0.20% <div style="font-size:2pt;margin-top:0pt;margin-bottom:1pt;text-align:left;"> </div></td> <td style="BORDER-BOTTOM:0.75pt solid #000000;white-space:nowrap;vertical-align:bottom;">   <div style="font-size:2pt;margin-top:0pt;margin-bottom:1pt;"> </div></td> </tr> <tr style="font-size:1pt"> <td style="height:1.5pt;"></td> <td colspan="4" style="height:1.5pt;"></td> <td colspan="2" style="height:1.5pt;"></td> <td colspan="2" style="BORDER-LEFT:0.75pt solid #000000;height:1.5pt;"> </td> <td colspan="6" style="height:1.5pt;"></td> </tr> <tr style="page-break-inside:avoid;font-family:arial;font-size:10pt"> <td style="vertical-align:top;"> <div style="font-size:2pt;margin-top:0pt;margin-bottom:0pt;"> </div> <div style="margin-top:0pt;margin-bottom:1pt;margin-left:1.50em;text-indent:-1.00em;font-size:10pt;font-family:arial;">Revenue Bonds</div></td> <td style="vertical-align:bottom;">  </td> <td style="white-space:nowrap;vertical-align:bottom;"> </td> <td style="white-space:nowrap;vertical-align:bottom;text-align:right;">13.00%</td> <td style="white-space:nowrap;vertical-align:bottom;"> </td> <td style="vertical-align:bottom;"> </td> <td style="vertical-align:bottom;"></td> <td rowspan="8" style=" BORDER-LEFT:0.75pt solid #000000;vertical-align:bottom;"> </td> <td rowspan="8" style="vertical-align:bottom;"></td> <td rowspan="8" style="vertical-align:bottom;"> </td> <td colspan="4" rowspan="8" style="vertical-align:bottom;"></td> <td rowspan="8" style="vertical-align:bottom;"></td> </tr> <tr style="page-break-inside:avoid;font-family:arial;font-size:10pt;background-color:#cceeff"> <td style="vertical-align:top;"> <div style="font-size:4pt;margin-top:0pt;margin-bottom:0pt;"> </div> <div style="margin-top:0pt;margin-bottom:1pt;margin-left:1.00em;text-indent:-1.00em;font-size:10pt;font-family:arial;">Special Tax Revenue Bonds</div></td> <td style="vertical-align:bottom;">  </td> <td style="white-space:nowrap;vertical-align:bottom;"> </td> <td style="white-space:nowrap;vertical-align:bottom;text-align:right;">10.48%</td> <td style="white-space:nowrap;vertical-align:bottom;"> </td> <td style="vertical-align:bottom;"> </td> <td style="vertical-align:bottom;"></td> </tr> <tr style="page-break-inside:avoid;font-family:arial;font-size:10pt"> <td style="vertical-align:top;"> <div style="font-size:4pt;margin-top:0pt;margin-bottom:0pt;"> </div> <div style="margin-top:0pt;margin-bottom:1pt;margin-left:1.00em;text-indent:-1.00em;font-size:10pt;font-family:arial;">State General Obligation Bonds</div></td> <td style="vertical-align:bottom;">  </td> <td style="white-space:nowrap;vertical-align:bottom;"> </td> <td style="white-space:nowrap;vertical-align:bottom;text-align:right;">6.77%</td> <td style="white-space:nowrap;vertical-align:bottom;"> </td> <td style="vertical-align:bottom;"> </td> <td style="vertical-align:bottom;"></td> </tr> <tr style="page-break-inside:avoid;font-family:arial;font-size:10pt;background-color:#cceeff"> <td style="vertical-align:top;"> <div style="font-size:4pt;margin-top:0pt;margin-bottom:0pt;"> </div> <div style="margin-top:0pt;margin-bottom:1pt;margin-left:1.00em;text-indent:-1.00em;font-size:10pt;font-family:arial;">Electric Revenue Bonds</div></td> <td style="vertical-align:bottom;">  </td> <td style="white-space:nowrap;vertical-align:bottom;"> </td> <td style="white-space:nowrap;vertical-align:bottom;text-align:right;">6.04%</td> <td style="white-space:nowrap;vertical-align:bottom;"> </td> <td style="vertical-align:bottom;"> </td> <td style="vertical-align:bottom;"></td> </tr> <tr style="page-break-inside:avoid;font-family:arial;font-size:10pt"> <td style="vertical-align:top;"> <div style="font-size:4pt;margin-top:0pt;margin-bottom:0pt;"> </div> <div style="margin-top:0pt;margin-bottom:1pt;margin-left:1.00em;text-indent:-1.00em;font-size:10pt;font-family:arial;">Housing Revenue Bonds</div></td> <td style="vertical-align:bottom;">  </td> <td style="white-space:nowrap;vertical-align:bottom;"> </td> <td style="white-space:nowrap;vertical-align:bottom;text-align:right;">3.04%</td> <td style="white-space:nowrap;vertical-align:bottom;"> </td> <td style="vertical-align:bottom;"> </td> <td style="vertical-align:bottom;"></td> </tr> <tr style="page-break-inside:avoid;font-family:arial;font-size:10pt;background-color:#cceeff"> <td style="vertical-align:top;"> <div style="font-size:4pt;margin-top:0pt;margin-bottom:0pt;"> </div> <div style="margin-top:0pt;margin-bottom:1pt;margin-left:1.00em;text-indent:-1.00em;font-size:10pt;font-family:arial;">Lease Revenue Bonds</div></td> <td style="vertical-align:bottom;">  </td> <td style="white-space:nowrap;vertical-align:bottom;"> </td> <td style="white-space:nowrap;vertical-align:bottom;text-align:right;">2.88%</td> <td style="white-space:nowrap;vertical-align:bottom;"> </td> <td style="vertical-align:bottom;"> </td> <td style="vertical-align:bottom;"></td> </tr> <tr style="page-break-inside:avoid;font-family:arial;font-size:10pt"> <td style="vertical-align:top;"> <div style="font-size:4pt;margin-top:0pt;margin-bottom:0pt;"> </div> <div style="margin-top:0pt;margin-bottom:1pt;margin-left:1.00em;text-indent:-1.00em;font-size:10pt;font-family:arial;">Water &amp; Sewer Revenue Bonds</div></td> <td style="vertical-align:bottom;">  </td> <td style="white-space:nowrap;vertical-align:bottom;"> </td> <td style="white-space:nowrap;vertical-align:bottom;text-align:right;">2.34%</td> <td style="white-space:nowrap;vertical-align:bottom;"> </td> <td style="vertical-align:bottom;"> </td> <td style="vertical-align:bottom;"></td> </tr> <tr style="font-size:10pt;font-family:arial"> <td style="BORDER-BOTTOM:0.75pt solid #000000;vertical-align:top;"> </td> <td style=" BORDER-BOTTOM:0.75pt solid #000000;vertical-align:bottom;">  </td> <td style="BORDER-BOTTOM:0.75pt solid #000000;vertical-align:bottom;"> </td> <td style="BORDER-BOTTOM:0.75pt solid #000000;vertical-align:bottom;"> </td> <td style="BORDER-BOTTOM:0.75pt solid #000000;vertical-align:bottom;"> </td> <td style="vertical-align:bottom;"> </td> <td style="vertical-align:bottom;"></td> </tr> </table> 0.2332 0.8333 0.1588 0.1439 0.1337 0.0070 0.0039 0.0020 0.1300 0.1048 0.0677 0.0604 0.0304 0.0288 0.0234 <div style="margin-top:18pt;margin-bottom:0pt;font-size:12pt;font-family:arial;font-weight:bold;">Material Fund changes </div><div style="margin-top:10pt;margin-bottom:0pt;font-size:10pt;font-family:arial;">Effective December 1, 2025, the Fund was renamed Nomura Tax‑Free California Fund. </div><div style="margin-top:4pt;margin-bottom:0pt;font-size:10pt;font-family:arial;">This is a summary of certain changes to the Fund that occurred during the reporting period. For more complete information, you may review the Fund’s next prospectus, which we expect to be available by December 30, 2026, at nomuraassetmanagement.com/literature or upon request at 800 523‑1918, weekdays from 8:30am to 6:00pm ET. </div> <div style="margin-top:10pt;margin-bottom:0pt;font-size:10pt;font-family:arial;">Effective December 1, 2025, the Fund was renamed Nomura Tax‑Free California Fund. </div> 2025-12-01 <div style="margin-top:4pt;margin-bottom:0pt;font-size:10pt;font-family:arial;">This is a summary of certain changes to the Fund that occurred during the reporting period. For more complete information, you may review the Fund’s next prospectus, which we expect to be available by December 30, 2026, at nomuraassetmanagement.com/literature or upon request at 800 523‑1918, weekdays from 8:30am to 6:00pm ET. </div> nomuraassetmanagement.com/literature 800 523‑1918 <div style="margin-top:6pt;margin-bottom:0pt;font-size:12pt;font-family:arial;font-weight:bold;">Changes in and disagreements with accountants </div><div style="margin-top:10pt;margin-bottom:0pt;font-size:10pt;font-family:arial;">During the reporting period, there was a change in the Fund’s independent registered public accounting firm. On May 20, 2026, the Fund’s Board of Trustees, upon the recommendation of its Audit Committee, approved the appointment of Cohen &amp; Company, Ltd. as the independent registered public accounting firm for the Fund, effectively dismissing PricewaterhouseCoopers LLP (PwC) as the Fund’s independent registered public accounting firm. There were no disagreements with PwC during the Fund’s two most recent fiscal years or the subsequent interim period through May 20, 2026. </div> During the reporting period, there was a change in the Fund’s independent registered public accounting firm. On May 20, 2026, the Fund’s Board of Trustees, upon the recommendation of its Audit Committee, approved the appointment of Cohen &amp; Company, Ltd. as the independent registered public accounting firm for the Fund, effectively dismissing PricewaterhouseCoopers LLP (PwC) as the Fund’s independent registered public accounting firm. 2026-05-20 Nomura Tax‑Free California Fund(formerly, Macquarie Tax‑Free California Fund) Institutional Class DCTIX This annual shareholder report contains important information about Nomura Tax‑Free California Fund (Fund) for the period of September 1, 2025, to August 31, 2026. annual shareholder report You can find additional information about the Fund at nomuraassetmanagement.com/literature. You can also request this information by contacting us at 800 523‑1918, weekdays from 8:30am to 6:00pm ET. nomuraassetmanagement.com/literature 800 523‑1918 <div style="margin-top: 12pt; margin-bottom: 0pt; font-size: 10pt; font-family: arial; font-weight: bold;">This report describes changes to the Fund that occurred during the reporting period.</div> <div style="margin-top: 12pt; margin-bottom: 0pt; font-size: 10pt; font-family: arial; font-weight: bold;">What were the Fund’s costs for the last 12 months?</div> <div style="margin-top: 6pt; margin-bottom: 0pt; font-size: 10pt; font-family: arial;"><span style="font-style: italic;">(Based on a hypothetical $10,000 investment) </span></div> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; font-family: arial; font-size: 10pt; width: 100%; border-spacing: 0px; margin: 0 auto;"> <tr> <td style="width: 15%;"></td> <td style="vertical-align: bottom; width: 1%;"></td> <td style="width: 37%;"></td> <td style="vertical-align: bottom; width: 1%;"></td> <td style="width: 46%;"></td> </tr> <tr style="page-break-inside: avoid; font-family: arial; font-size: 10pt;"> <td style="border-bottom: 0.75pt solid #000000; vertical-align: bottom;">    Class</td> <td style="border-bottom: 0.75pt solid #000000; vertical-align: bottom;"> </td> <td style="border-bottom: 0.75pt solid #000000; vertical-align: bottom; text-align: center;">Costs of a $10,000 investment</td> <td style="border-bottom: 0.75pt solid #000000; vertical-align: bottom;"> </td> <td style="border-bottom: 0.75pt solid #000000; vertical-align: bottom; text-align: center;">Costs paid as a percentage of a $10,000 investment<sup style="font-size: 75%; vertical-align: top;">1</sup>  </td> </tr> <tr style="page-break-inside: avoid; font-family: arial; font-size: 10pt; background-color: #cceeff;"> <td style="vertical-align: top;"> <div style="margin-top: 0pt; margin-bottom: 0pt; margin-left: 1.00em; text-indent: -1.00em; font-size: 10pt; font-family: arial;"> Institutional Class</div> </td> <td style="vertical-align: bottom;"> </td> <td style="vertical-align: bottom; white-space: nowrap; text-align: center;">$59</td> <td style="vertical-align: bottom;"> </td> <td style="vertical-align: bottom; white-space: nowrap; text-align: center;">0.57%</td> </tr> </table> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; font-family: arial; font-size: 10pt; border-spacing: 0px; width: 100%;"> <tr style="page-break-inside: avoid;"> <td style="width: 1%;"> </td> <td style="width: 1%; vertical-align: top; text-align: left;"><sup style="font-size: 75%; vertical-align: top;">1</sup> </td> <td style="vertical-align: top; text-align: left;"> <div style="margin-top: 0pt; margin-bottom: 0pt; font-size: 10pt; font-family: arial; text-align: left;"> Costs paid as a percentage of a $10,000 investment would have been 0.55% if distressed investment expenses were not included.</div> </td> </tr> </table> 59 0.0057 <div style="margin-top: 12pt; margin-bottom: 0pt; font-size: 12pt; font-family: arial; font-weight: bold;">Management’s discussion of Fund performance</div> <div style="margin-top: 6pt; margin-bottom: 0pt; font-size: 10pt; font-family: arial; font-weight: bold;">Performance highlights</div> <div style="margin-top: 6pt; margin-bottom: 0pt; font-size: 10pt; font-family: arial;">Nomura Tax‑Free California Fund (Institutional Class) returned 5.61% (excluding sales charge) for the 12 months ended August 31, 2026. During the same period, the Bloomberg Municipal Bond Index, the Fund’s broad-based securities market index (benchmark), returned 4.12%.</div> <div style="margin-top: 12pt; margin-bottom: 0pt; font-size: 10pt; font-family: arial; font-weight: bold;">Market highlights</div> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; font-family: arial; font-size: 10pt; border-spacing: 0px; width: 100%;"> <tr style="page-break-inside: avoid;"> <td style="width: 3%;"> </td> <td style="width: 1%; vertical-align: top; text-align: left;">•</td> <td style="width: 1%; vertical-align: top;"> </td> <td style="vertical-align: top; text-align: left;"> <div style="margin-top: 0pt; margin-bottom: 0pt; font-family: arial; font-size: 10pt; text-align: left;">During the reporting period, monetary policy and geopolitical uncertainty impacted the municipal bond market. US Federal Reserve (Fed) cuts in 4Q25 and legislative clarity contributed to performance. However, the US‑Iran conflict and subsequent inflation concerns applied pressure to the market. Additionally, market technicals impacted performance.</div> </td> </tr> </table> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; font-family: arial; font-size: 10pt; border-spacing: 0px; width: 100%;"> <tr style="page-break-inside: avoid;"> <td style="width: 3%;"> </td> <td style="width: 1%; vertical-align: top; text-align: left;">•</td> <td style="width: 1%; vertical-align: top;"> </td> <td style="vertical-align: top; text-align: left;"> <div style="margin-top: 0pt; margin-bottom: 0pt; font-family: arial; font-size: 10pt; text-align: left;">Supply was elevated but met with strong demand as municipal mutual funds took in a near record amount in the first eight months of 2026. More importantly, the flows were evenly distributed between open-ended funds and exchange-traded funds (ETFs) in calendar year 2026.</div> </td> </tr> </table> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; font-family: arial; font-size: 10pt; border-spacing: 0px; width: 100%;"> <tr style="page-break-inside: avoid;"> <td style="width: 3%;"> </td> <td style="width: 1%; vertical-align: top; text-align: left;">•</td> <td style="width: 1%; vertical-align: top;"> </td> <td style="vertical-align: top; text-align: left;"> <div style="margin-top: 0pt; margin-bottom: 0pt; font-family: arial; font-size: 10pt; text-align: left;">Municipal bond yields rose on the front end of the curve and fell in the intermediate and long segments. For example, the MMD AAA 2‑year yield rose 33 basis points (bps) while the 20‑year yield fell 15 bps and the 30‑year yield fell 1 bp (a basis point equals one‑hundredth of a percentage point). As a result, the 2‑year/30‑year curve flattened, starting the period at 241 bps and ending the period at 207 bps.</div> </td> </tr> </table> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; font-family: arial; font-size: 10pt; border-spacing: 0px; width: 100%;"> <tr style="page-break-inside: avoid;"> <td style="width: 3%;"> </td> <td style="width: 1%; vertical-align: top; text-align: left;">•</td> <td style="width: 1%; vertical-align: top;"> </td> <td style="vertical-align: top; text-align: left;"> <div style="margin-top: 0pt; margin-bottom: 0pt; font-family: arial; font-size: 10pt; text-align: left;">The long end of the curve outperformed as did lower investment grade BBB‑rated and below-investment-grade securities during the reporting period, in part, driven by the strong fund flows into long mutual funds. For example, the Bloomberg Municipal Bond Index returned 4.12% while the long segment (22+ years) returned 6.45%; BBB‑rated and below-investment-grade securities returned 6.08% and 6.66%, respectively. Conversely, the front end of the curve detracted from performance for the period with the Bloomberg Municipal Bond Index’s 1‑year (1‑2 years) segment only up 2.36%.</div> </td> </tr> </table> <div style="margin-top: 12pt; margin-bottom: 0pt; font-size: 10pt; font-family: arial; font-weight: bold;">Top contributors to performance:</div> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; font-family: arial; font-size: 10pt; border-spacing: 0px; width: 100%;"> <tr style="page-break-inside: avoid;"> <td style="width: 3%;"> </td> <td style="width: 1%; vertical-align: top; text-align: left;">•</td> <td style="width: 1%; vertical-align: top;"> </td> <td style="vertical-align: top; text-align: left;"> <div style="margin-top: 0pt; margin-bottom: 0pt; font-family: arial; font-size: 10pt; text-align: left;">An overweight to the long end of the curve contributed to performance.</div> </td> </tr> </table> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; font-family: arial; font-size: 10pt; border-spacing: 0px; width: 100%;"> <tr style="page-break-inside: avoid;"> <td style="width: 3%;"> </td> <td style="width: 1%; vertical-align: top; text-align: left;">•</td> <td style="width: 1%; vertical-align: top;"> </td> <td style="vertical-align: top; text-align: left;"> <div style="margin-top: 0pt; margin-bottom: 0pt; font-family: arial; font-size: 10pt; text-align: left;">An overweight to BBB‑rated securities contributed for the period.</div> </td> </tr> </table> <div style="margin-top: 0pt; margin-bottom: 0pt; font-size: 10pt; font-family: arial; font-weight: bold;">Top detractors from performance:</div> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; font-family: arial; font-size: 10pt; border-spacing: 0px; width: 100%;"> <tr style="page-break-inside: avoid;"> <td style="width: 3%;"> </td> <td style="width: 1%; vertical-align: top; text-align: left;">•</td> <td style="width: 1%; vertical-align: top;"> </td> <td style="vertical-align: top; text-align: left;"> <div style="margin-top: 0pt; margin-bottom: 0pt; font-family: arial; font-size: 10pt; text-align: left;">A modest out‑of‑benchmark allocation to the front end of the curve (0‑1 years) was a drag on performance as this part of the curve lagged the overall market.</div> </td> </tr> </table> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; font-family: arial; font-size: 10pt; border-spacing: 0px; width: 100%;"> <tr style="page-break-inside: avoid;"> <td style="width: 3%;"> </td> <td style="width: 1%; vertical-align: top; text-align: left;">•</td> <td style="width: 1%; vertical-align: top;"> </td> <td style="vertical-align: top; text-align: left;"> <div style="margin-top: 0pt; margin-bottom: 0pt; font-family: arial; font-size: 10pt; text-align: left;">The Fund’s allocation to the Industrial Development Revenue (IDR)/Pollution Control Revenue (PCR) sector was a detractor, underperforming the benchmark’s IDR/PCR return of 3.03%.</div> </td> </tr> </table> <div style="margin-top: 12pt; margin-bottom: 0pt; font-size: 12pt; font-family: arial; font-weight: bold;">Fund performance</div> <div style="margin-top: 6pt; margin-bottom: 0pt; font-size: 10pt; font-family: arial;">The following graph compares the initial and subsequent account values at the end of each of the most recently completed 10 fiscal years of the Class. It also assumes a $10,000 initial investment at the beginning of the first full fiscal year in a broad-based securities market index for the same period.</div> <div style="margin-top: 12pt; margin-bottom: 0pt; font-size: 10pt; font-family: arial; font-weight: bold;">Growth of $10,000 investment</div> <div style="margin-top: 2pt; margin-bottom: 0pt; font-size: 10pt; font-family: arial;">For the period August 31, 2016, through August 31, 2026</div> <div style="margin-top: 0pt; margin-bottom: 0pt; text-align: center;"> <img alt="LOGO" src="g180905g10g10.jpg" style="width: 6.30554in; height: 1.86938in;"/> </div> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; font-family: arial; font-size: 10pt; width: 100%; border-spacing: 0px; margin: 0 auto;"> <tr> <td style="width: 81%;"></td> <td style="vertical-align: bottom; width: 1%;"></td> <td></td> <td></td> <td></td> <td style="vertical-align: bottom; width: 1%;"></td> <td></td> <td></td> <td></td> <td style="vertical-align: bottom; width: 1%;"></td> <td></td> <td></td> <td></td> </tr> <tr style="font-size: 1pt;"> <td style="height: 3pt;"></td> <td colspan="4" style="height: 3pt;"></td> <td colspan="4" style="height: 3pt;"></td> <td colspan="4" style="height: 3pt;"></td> </tr> <tr style="page-break-inside: avoid; font-family: arial; font-size: 10pt;"> <td style="padding-bottom: 3pt; border-bottom: 0.75pt solid #000000; vertical-align: bottom;"> <div style="margin-top: 0pt; margin-bottom: 0pt; margin-left: 1.00em; text-indent: -1.00em; font-size: 10pt; font-family: arial;"><span style="font-weight: bold;">  Average annual total returns </span>(<span style="font-weight: bold;">as of August 31, 2026</span>)</div> </td> <td style="border-bottom: 0.75pt solid #000000; vertical-align: bottom;">  </td> <td style="padding-bottom: 3pt; border-bottom: 0.75pt solid #000000; vertical-align: bottom;"><span style="font-weight: bold;"> </span></td> <td style="padding-bottom: 3pt; border-bottom: 0.75pt solid #000000; vertical-align: bottom; text-align: right;"><span style="font-weight: bold;">1 year</span></td> <td style="padding-bottom: 3pt; border-bottom: 0.75pt solid #000000; white-space: nowrap; vertical-align: bottom;"><span style="font-weight: bold;"> </span></td> <td style="border-bottom: 0.75pt solid #000000; vertical-align: bottom;"> </td> <td style="padding-bottom: 3pt; border-bottom: 0.75pt solid #000000; vertical-align: bottom;"><span style="font-weight: bold;"> </span></td> <td style="padding-bottom: 3pt; border-bottom: 0.75pt solid #000000; vertical-align: bottom; text-align: right;"><span style="font-weight: bold;">5 year</span></td> <td style="padding-bottom: 3pt; border-bottom: 0.75pt solid #000000; white-space: nowrap; vertical-align: bottom;"><span style="font-weight: bold;"> </span></td> <td style="border-bottom: 0.75pt solid #000000; vertical-align: bottom;"> </td> <td style="padding-bottom: 3pt; border-bottom: 0.75pt solid #000000; vertical-align: bottom;"><span style="font-weight: bold;"> </span></td> <td style="padding-bottom: 3pt; border-bottom: 0.75pt solid #000000; vertical-align: bottom; text-align: right;"><span style="font-weight: bold;">10 year</span></td> <td style="padding-bottom: 3pt; border-bottom: 0.75pt solid #000000; white-space: nowrap; vertical-align: bottom;"><span style="font-weight: bold;"> </span></td> </tr> <tr style="font-size: 1pt;"> <td style="height: 3pt;"></td> <td colspan="4" style="height: 3pt;"></td> <td colspan="4" style="height: 3pt;"></td> <td colspan="4" style="height: 3pt;"></td> </tr> <tr style="page-break-inside: avoid; font-family: arial; font-size: 10pt; background-color: #cceeff;"> <td style="padding-bottom: 3pt; border-bottom: 0.75pt solid #000000; vertical-align: top;"> <div style="margin-top: 0pt; margin-bottom: 0pt; margin-left: 1.00em; text-indent: -1.00em; font-size: 10pt; font-family: arial;">  Nomura Tax‑Free California Fund (Institutional Class) – including sales charge</div> </td> <td style="border-bottom: 0.75pt solid #000000; vertical-align: bottom;">  </td> <td style="padding-bottom: 3pt; border-bottom: 0.75pt solid #000000; white-space: nowrap; vertical-align: bottom;"> </td> <td style="padding-bottom: 3pt; border-bottom: 0.75pt solid #000000; white-space: nowrap; vertical-align: bottom; text-align: center;">5.61%</td> <td style="padding-bottom: 3pt; border-bottom: 0.75pt solid #000000; white-space: nowrap; vertical-align: bottom;"> </td> <td style="border-bottom: 0.75pt solid #000000; vertical-align: bottom;"> </td> <td style="padding-bottom: 3pt; border-bottom: 0.75pt solid #000000; white-space: nowrap; vertical-align: bottom;"> </td> <td style="padding-bottom: 3pt; border-bottom: 0.75pt solid #000000; white-space: nowrap; vertical-align: bottom; text-align: center;">0.29%</td> <td style="padding-bottom: 3pt; border-bottom: 0.75pt solid #000000; white-space: nowrap; vertical-align: bottom;"> </td> <td style="border-bottom: 0.75pt solid #000000; vertical-align: bottom;"> </td> <td style="padding-bottom: 3pt; border-bottom: 0.75pt solid #000000; white-space: nowrap; vertical-align: bottom;"> </td> <td style="padding-bottom: 3pt; border-bottom: 0.75pt solid #000000; white-space: nowrap; vertical-align: bottom; text-align: center;">2.04%</td> <td style="padding-bottom: 3pt; border-bottom: 0.75pt solid #000000; white-space: nowrap; vertical-align: bottom;"> </td> </tr> <tr style="font-size: 1pt;"> <td style="height: 3pt;"></td> <td colspan="4" style="height: 3pt;"></td> <td colspan="4" style="height: 3pt;"></td> <td colspan="4" style="height: 3pt;"></td> </tr> <tr style="page-break-inside: avoid; font-family: arial; font-size: 10pt;"> <td style="padding-bottom: 3pt; border-bottom: 0.75pt solid #000000; vertical-align: top;"> <div style="margin-top: 0pt; margin-bottom: 0pt; margin-left: 1.00em; text-indent: -1.00em; font-size: 10pt; font-family: arial;">  Nomura Tax‑Free California Fund (Institutional Class) – excluding sales charge</div> </td> <td style="border-bottom: 0.75pt solid #000000; vertical-align: bottom;">  </td> <td style="padding-bottom: 3pt; border-bottom: 0.75pt solid #000000; white-space: nowrap; vertical-align: bottom;"> </td> <td style="padding-bottom: 3pt; border-bottom: 0.75pt solid #000000; white-space: nowrap; vertical-align: bottom; text-align: center;">5.61%</td> <td style="padding-bottom: 3pt; border-bottom: 0.75pt solid #000000; white-space: nowrap; vertical-align: bottom;"> </td> <td style="border-bottom: 0.75pt solid #000000; vertical-align: bottom;"> </td> <td style="padding-bottom: 3pt; border-bottom: 0.75pt solid #000000; white-space: nowrap; vertical-align: bottom;"> </td> <td style="padding-bottom: 3pt; border-bottom: 0.75pt solid #000000; white-space: nowrap; vertical-align: bottom; text-align: center;">0.29%</td> <td style="padding-bottom: 3pt; border-bottom: 0.75pt solid #000000; white-space: nowrap; vertical-align: bottom;"> </td> <td style="border-bottom: 0.75pt solid #000000; vertical-align: bottom;"> </td> <td style="padding-bottom: 3pt; border-bottom: 0.75pt solid #000000; white-space: nowrap; vertical-align: bottom;"> </td> <td style="padding-bottom: 3pt; border-bottom: 0.75pt solid #000000; white-space: nowrap; vertical-align: bottom; text-align: center;">2.04%</td> <td style="padding-bottom: 3pt; border-bottom: 0.75pt solid #000000; white-space: nowrap; vertical-align: bottom;"> </td> </tr> <tr style="font-size: 1pt;"> <td style="height: 3pt;"></td> <td colspan="4" style="height: 3pt;"></td> <td colspan="4" style="height: 3pt;"></td> <td colspan="4" style="height: 3pt;"></td> </tr> <tr style="page-break-inside: avoid; font-family: arial; font-size: 10pt; background-color: #cceeff;"> <td style="padding-bottom: 3pt; border-bottom: 0.75pt solid #000000; vertical-align: top;"> <div style="margin-top: 0pt; margin-bottom: 0pt; margin-left: 1.00em; text-indent: -1.00em; font-size: 10pt; font-family: arial;">  Bloomberg Municipal Bond Index</div> </td> <td style="border-bottom: 0.75pt solid #000000; vertical-align: bottom;">  </td> <td style="padding-bottom: 3pt; border-bottom: 0.75pt solid #000000; white-space: nowrap; vertical-align: bottom;"> </td> <td style="padding-bottom: 3pt; border-bottom: 0.75pt solid #000000; white-space: nowrap; vertical-align: bottom; text-align: center;">4.12%</td> <td style="padding-bottom: 3pt; border-bottom: 0.75pt solid #000000; white-space: nowrap; vertical-align: bottom;"> </td> <td style="border-bottom: 0.75pt solid #000000; vertical-align: bottom;"> </td> <td style="padding-bottom: 3pt; border-bottom: 0.75pt solid #000000; white-space: nowrap; vertical-align: bottom;"> </td> <td style="padding-bottom: 3pt; border-bottom: 0.75pt solid #000000; white-space: nowrap; vertical-align: bottom; text-align: center;">0.54%</td> <td style="padding-bottom: 3pt; border-bottom: 0.75pt solid #000000; white-space: nowrap; vertical-align: bottom;"> </td> <td style="border-bottom: 0.75pt solid #000000; vertical-align: bottom;"> </td> <td style="padding-bottom: 3pt; border-bottom: 0.75pt solid #000000; white-space: nowrap; vertical-align: bottom;"> </td> <td style="padding-bottom: 3pt; border-bottom: 0.75pt solid #000000; white-space: nowrap; vertical-align: bottom; text-align: center;">1.91%</td> <td style="padding-bottom: 3pt; border-bottom: 0.75pt solid #000000; white-space: nowrap; vertical-align: bottom;"> </td> </tr> </table> Nomura Tax‑Free California Fund (Institutional Class) – including sales charge 0.0561 0.0029 0.0204 Nomura Tax‑Free California Fund (Institutional Class) – excluding sales charge 0.0561 0.0029 0.0204 Bloomberg Municipal Bond Index 0.0412 0.0054 0.0191 Keep in mind that the Fund’s past performance is not a good predictor of how the Fund will perform in the future. Visit nomuraassetmanagement.com/performance for the most recent performance information. The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares. <div style="margin-top: 12pt; margin-bottom: 0pt; font-size: 12pt; font-family: arial;"><span style="font-weight: bold;">Fund statistics </span><span style="font-family: arial; font-size: 10pt;">(as of August 31, 2026)</span><span style="font-family: arial; font-size: 12pt;"> </span></div> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; font-family: arial; font-size: 10pt; width: 100%; border-spacing: 0px; margin: 0 auto;"> <tr> <td style="width: 88%;"></td> <td style="vertical-align: bottom; width: 2%;"></td> <td></td> <td></td> <td></td> </tr> <tr style="font-size: 1pt;"> <td style="height: 3.75pt;"></td> <td colspan="4" style="height: 3.75pt;"></td> </tr> <tr style="page-break-inside: avoid; font-family: arial; font-size: 10pt; background-color: #cceeff;"> <td style="padding-bottom: 4pt; border-bottom: 0.75pt solid #000000; vertical-align: top;"> <div style="margin-top: 0pt; margin-bottom: 0pt; margin-left: 1.00em; text-indent: -1.00em; font-size: 10pt; font-family: arial;">Fund net assets</div> </td> <td style="border-bottom: 0.75pt solid #000000; vertical-align: bottom;">  </td> <td style="padding-bottom: 4pt; border-bottom: 0.75pt solid #000000; white-space: nowrap; vertical-align: bottom;">$</td> <td style="padding-bottom: 4pt; border-bottom: 0.75pt solid #000000; white-space: nowrap; vertical-align: bottom; text-align: right;">261,616,481</td> <td style="padding-bottom: 4pt; border-bottom: 0.75pt solid #000000; white-space: nowrap; vertical-align: bottom;"> </td> </tr> <tr style="font-size: 1pt;"> <td style="height: 3.75pt;"></td> <td colspan="4" style="height: 3.75pt;"></td> </tr> <tr style="page-break-inside: avoid; font-family: arial; font-size: 10pt;"> <td style="padding-bottom: 4pt; border-bottom: 0.75pt solid #000000; vertical-align: top;"> <div style="margin-top: 0pt; margin-bottom: 0pt; margin-left: 1.00em; text-indent: -1.00em; font-size: 10pt; font-family: arial;">Total number of portfolio holdings*</div> </td> <td style="border-bottom: 0.75pt solid #000000; vertical-align: bottom;">  </td> <td style="padding-bottom: 4pt; border-bottom: 0.75pt solid #000000; white-space: nowrap; vertical-align: bottom;"> </td> <td style="padding-bottom: 4pt; border-bottom: 0.75pt solid #000000; white-space: nowrap; vertical-align: bottom; text-align: right;">196</td> <td style="padding-bottom: 4pt; border-bottom: 0.75pt solid #000000; white-space: nowrap; vertical-align: bottom;"> </td> </tr> <tr style="font-size: 1pt;"> <td style="height: 3.75pt;"></td> <td colspan="4" style="height: 3.75pt;"></td> </tr> <tr style="page-break-inside: avoid; font-family: arial; font-size: 10pt; background-color: #cceeff;"> <td style="padding-bottom: 4pt; border-bottom: 0.75pt solid #000000; vertical-align: top;"> <div style="margin-top: 0pt; margin-bottom: 0pt; margin-left: 1.00em; text-indent: -1.00em; font-size: 10pt; font-family: arial;">Total net advisory fees paid (during reporting period)</div> </td> <td style="border-bottom: 0.75pt solid #000000; vertical-align: bottom;">  </td> <td style="padding-bottom: 4pt; border-bottom: 0.75pt solid #000000; white-space: nowrap; vertical-align: bottom;"> </td> <td style="padding-bottom: 4pt; border-bottom: 0.75pt solid #000000; white-space: nowrap; vertical-align: bottom; text-align: right;">$1,062,148</td> <td style="padding-bottom: 4pt; border-bottom: 0.75pt solid #000000; white-space: nowrap; vertical-align: bottom;"> </td> </tr> <tr style="font-size: 1pt;"> <td style="height: 3.75pt;"></td> <td colspan="4" style="height: 3.75pt;"></td> </tr> <tr style="page-break-inside: avoid; font-family: arial; font-size: 10pt;"> <td style="padding-bottom: 4pt; border-bottom: 0.75pt solid #000000; vertical-align: top;"> <div style="margin-top: 0pt; margin-bottom: 0pt; margin-left: 1.00em; text-indent: -1.00em; font-size: 10pt; font-family: arial;">Portfolio turnover rate</div> </td> <td style="border-bottom: 0.75pt solid #000000; vertical-align: bottom;">  </td> <td style="padding-bottom: 4pt; border-bottom: 0.75pt solid #000000; white-space: nowrap; vertical-align: bottom;"> </td> <td style="padding-bottom: 4pt; border-bottom: 0.75pt solid #000000; white-space: nowrap; vertical-align: bottom; text-align: right;">27%</td> <td style="padding-bottom: 4pt; border-bottom: 0.75pt solid #000000; white-space: nowrap; vertical-align: bottom;"> </td> </tr> </table> <div style="margin-top: 6pt; margin-bottom: 0pt; margin-left: 2%; text-indent: -2%; font-size: 10pt; font-family: arial;">* Excludes cash and cash equivalents.</div> 261616481 196 1062148 0.27 <div style="margin-top: 0pt; margin-bottom: 0pt; font-size: 12pt; font-family: arial;"><span style="font-weight: bold;">Fund holdings </span><span style="font-family: arial; font-size: 10pt;">(as of August 31, 2026)</span><span style="font-family: arial; font-size: 12pt;"> </span></div> <div style="margin-top: 12pt; margin-bottom: 0pt; font-size: 10pt; font-family: arial;">The tables below show the investment makeup of the Fund, with each category representing a percentage of the total net assets of the Fund.</div> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; font-family: arial; font-size: 10pt; width: 70%; border-spacing: 0px;"> <tr> <td style="width: 45%;"></td> <td style="vertical-align: bottom; width: 1%;"></td> <td></td> <td></td> <td></td> <td style="vertical-align: bottom; width: 1%;"></td> <td></td> <td style="vertical-align: bottom; width: 1%;"></td> <td></td> <td style="vertical-align: bottom; width: 1%;"></td> <td style="width: 33%;"></td> <td style="vertical-align: bottom; width: 1%;"></td> <td></td> <td></td> <td></td> </tr> <tr style="page-break-inside: avoid; font-family: arial; font-size: 8pt;"> <td colspan="4" style="border-bottom: 0.75pt solid #000000; vertical-align: bottom;"> <div style="margin-top: 0pt; margin-bottom: 0pt; font-size: 10pt; font-family: arial; text-align: center;">Sector allocation</div> <div style="font-size: 4pt; margin-top: 0pt; margin-bottom: 1pt; text-align: left;"> </div> </td> <td style="border-bottom: 0.75pt solid #000000; vertical-align: bottom;"> </td> <td style="vertical-align: bottom;"> </td> <td style="vertical-align: bottom;"> </td> <td style="border-left: 0.75pt solid #000000; vertical-align: bottom;"> </td> <td style="vertical-align: bottom;"> </td> <td style="border-bottom: 0.75pt solid #000000; vertical-align: bottom;"> </td> <td colspan="4" style="border-bottom: 0.75pt solid #000000; vertical-align: bottom;"> <div style="margin-top: 0pt; margin-bottom: 0pt; font-size: 10pt; font-family: arial; text-align: center;">State and territory allocation</div> <div style="font-size: 4pt; margin-top: 0pt; margin-bottom: 1pt; text-align: left;"> </div> </td> <td style="border-bottom: 0.75pt solid #000000; vertical-align: bottom;"> </td> </tr> <tr style="page-break-inside: avoid; font-family: arial; font-size: 10pt; background-color: #cceeff;"> <td style="vertical-align: top;"> <div style="font-size: 4pt; margin-top: 0pt; margin-bottom: 0pt;"> </div> <div style="margin-top: 0pt; margin-bottom: 1pt; margin-left: 1.00em; text-indent: -1.00em; font-size: 10pt; font-family: arial;">Education Revenue Bonds</div> </td> <td style="vertical-align: bottom;">  </td> <td style="white-space: nowrap; vertical-align: bottom;"> </td> <td style="white-space: nowrap; vertical-align: bottom; text-align: right;">23.32%</td> <td style="white-space: nowrap; vertical-align: bottom;"> </td> <td style="vertical-align: bottom;"> </td> <td style="vertical-align: bottom;"></td> <td style="border-left: 0.75pt solid #000000; vertical-align: bottom;"> </td> <td style="vertical-align: bottom;"></td> <td style="vertical-align: bottom;"> </td> <td style="vertical-align: bottom; white-space: nowrap;">California</td> <td style="vertical-align: bottom;">  </td> <td style="white-space: nowrap; vertical-align: bottom;"> </td> <td style="white-space: nowrap; vertical-align: bottom; text-align: right;">83.33%</td> <td style="white-space: nowrap; vertical-align: bottom;"> </td> </tr> <tr style="page-break-inside: avoid; font-family: arial; font-size: 10pt;"> <td style="vertical-align: top;"> <div style="font-size: 4pt; margin-top: 0pt; margin-bottom: 0pt;"> </div> <div style="margin-top: 0pt; margin-bottom: 1pt; margin-left: 1.00em; text-indent: -1.00em; font-size: 10pt; font-family: arial;">Transportation Revenue Bonds</div> </td> <td style="vertical-align: bottom;">  </td> <td style="white-space: nowrap; vertical-align: bottom;"> </td> <td style="white-space: nowrap; vertical-align: bottom; text-align: right;">15.88%</td> <td style="white-space: nowrap; vertical-align: bottom;"> </td> <td style="vertical-align: bottom;"> </td> <td style="vertical-align: bottom;"></td> <td style="border-left: 0.75pt solid #000000; vertical-align: bottom;"> </td> <td style="vertical-align: bottom;"></td> <td style="vertical-align: bottom;"> </td> <td style="vertical-align: bottom; white-space: nowrap;">Puerto Rico</td> <td style="vertical-align: bottom;">  </td> <td style="white-space: nowrap; vertical-align: bottom;"> </td> <td style="white-space: nowrap; vertical-align: bottom; text-align: right;">14.39%</td> <td style="white-space: nowrap; vertical-align: bottom;"> </td> </tr> <tr style="page-break-inside: avoid; font-family: arial; font-size: 10pt; background-color: #cceeff;"> <td style="vertical-align: top;"> <div style="font-size: 4pt; margin-top: 0pt; margin-bottom: 0pt;"> </div> <div style="margin-top: 0pt; margin-bottom: 1pt; margin-left: 1.00em; text-indent: -1.00em; font-size: 10pt; font-family: arial;">Healthcare Revenue Bonds</div> </td> <td style="vertical-align: bottom;">  </td> <td style="white-space: nowrap; vertical-align: bottom;"> </td> <td style="white-space: nowrap; vertical-align: bottom; text-align: right;">13.37%</td> <td style="white-space: nowrap; vertical-align: bottom;"> </td> <td style="vertical-align: bottom;"> </td> <td style="vertical-align: bottom;"></td> <td style="border-left: 0.75pt solid #000000; vertical-align: bottom;"> </td> <td style="vertical-align: bottom;"></td> <td style="vertical-align: bottom;"> </td> <td style="vertical-align: bottom; white-space: nowrap;">New Hampshire</td> <td style="vertical-align: bottom;">  </td> <td style="white-space: nowrap; vertical-align: bottom;"> </td> <td style="white-space: nowrap; vertical-align: bottom; text-align: right;">0.70%</td> <td style="white-space: nowrap; vertical-align: bottom;"> </td> </tr> <tr style="page-break-inside: avoid; font-family: arial; font-size: 10pt;"> <td style="vertical-align: top;"> <div style="font-size: 4pt; margin-top: 0pt; margin-bottom: 0pt;"> </div> <div style="margin-top: 0pt; margin-bottom: 1pt; margin-left: 1.00em; text-indent: -1.00em; font-size: 10pt; font-family: arial;">Industrial Development</div> </td> <td style="vertical-align: bottom;">  </td> <td style="vertical-align: bottom;"></td> <td style="vertical-align: bottom;"></td> <td style="vertical-align: bottom;"></td> <td style="vertical-align: bottom;"> </td> <td style="vertical-align: bottom;"></td> <td style="border-left: 0.75pt solid #000000; vertical-align: bottom;"> </td> <td style="vertical-align: bottom;"></td> <td style="vertical-align: bottom;"> </td> <td style="vertical-align: bottom; white-space: nowrap;">Guam</td> <td style="vertical-align: bottom;">  </td> <td style="white-space: nowrap; vertical-align: bottom;"> </td> <td style="white-space: nowrap; vertical-align: bottom; text-align: right;">0.39%</td> <td style="white-space: nowrap; vertical-align: bottom;"> </td> </tr> <tr style="page-break-inside: avoid; font-family: arial; font-size: 10pt; background-color: #cceeff;"> <td style="vertical-align: top;"> <div style="font-size: 4pt; margin-top: 0pt; margin-bottom: 0pt;"> </div> <div style="margin-top: 0pt; margin-bottom: 1pt; margin-left: 1.50em; text-indent: -1.00em; font-size: 10pt; font-family: arial;">Revenue/Pollution Control</div> </td> <td style="vertical-align: bottom;">  </td> <td style="vertical-align: bottom;"></td> <td style="vertical-align: bottom;"></td> <td style="vertical-align: bottom;"></td> <td style="vertical-align: bottom;"> </td> <td style="vertical-align: bottom;"></td> <td style="border-left: 0.75pt solid #000000; vertical-align: bottom;"> </td> <td style="vertical-align: bottom;"></td> <td style="border-bottom: 0.75pt solid #000000; vertical-align: bottom;"> </td> <td style="border-bottom: 0.75pt solid #000000; vertical-align: bottom; white-space: nowrap;"> <div style="font-size: 4pt; margin-top: 0pt; margin-bottom: 0pt;"> </div> <div style="margin-top: 0pt; margin-bottom: 0pt; font-size: 10pt; font-family: arial;">US Virgin Islands</div> <div style="font-size: 2pt; margin-top: 0pt; margin-bottom: 1pt;"> </div> </td> <td style="border-bottom: 0.75pt solid #000000; vertical-align: bottom;">  </td> <td style="border-bottom: 0.75pt solid #000000; white-space: nowrap; vertical-align: bottom;">  <div style="font-size: 2pt; margin-top: 0pt; margin-bottom: 1pt;"> </div> </td> <td style="border-bottom: 0.75pt solid #000000; white-space: nowrap; vertical-align: bottom; text-align: right;">0.20% <div style="font-size: 2pt; margin-top: 0pt; margin-bottom: 1pt; text-align: left;"> </div> </td> <td style="border-bottom: 0.75pt solid #000000; white-space: nowrap; vertical-align: bottom;">  <div style="font-size: 2pt; margin-top: 0pt; margin-bottom: 1pt;"> </div> </td> </tr> <tr style="page-break-inside: avoid; font-family: arial; font-size: 10pt;"> <td style="vertical-align: top;"> <div style="font-size: 2pt; margin-top: 0pt; margin-bottom: 0pt;"> </div> <div style="margin-top: 0pt; margin-bottom: 1pt; margin-left: 1.50em; text-indent: -1.00em; font-size: 10pt; font-family: arial;">Revenue Bonds</div> </td> <td style="vertical-align: bottom;">  </td> <td style="white-space: nowrap; vertical-align: bottom;"> </td> <td style="white-space: nowrap; vertical-align: bottom; text-align: right;">13.00%</td> <td style="white-space: nowrap; vertical-align: bottom;"> </td> <td style="vertical-align: bottom;"> </td> <td style="vertical-align: bottom;"></td> <td rowspan="8" style="border-left: 0.75pt solid #000000; vertical-align: bottom;"> </td> <td rowspan="8" style="vertical-align: bottom;"></td> <td rowspan="8" style="vertical-align: bottom;"> </td> <td colspan="4" rowspan="8" style="vertical-align: bottom;"></td> <td rowspan="8" style="vertical-align: bottom;"></td> </tr> <tr style="page-break-inside: avoid; font-family: arial; font-size: 10pt; background-color: #cceeff;"> <td style="vertical-align: top;"> <div style="font-size: 4pt; margin-top: 0pt; margin-bottom: 0pt;"> </div> <div style="margin-top: 0pt; margin-bottom: 1pt; margin-left: 1.00em; text-indent: -1.00em; font-size: 10pt; font-family: arial;">Special Tax Revenue Bonds</div> </td> <td style="vertical-align: bottom;">  </td> <td style="white-space: nowrap; vertical-align: bottom;"> </td> <td style="white-space: nowrap; vertical-align: bottom; text-align: right;">10.48%</td> <td style="white-space: nowrap; vertical-align: bottom;"> </td> <td style="vertical-align: bottom;"> </td> <td style="vertical-align: bottom;"></td> </tr> <tr style="page-break-inside: avoid; font-family: arial; font-size: 10pt;"> <td style="vertical-align: top;"> <div style="font-size: 4pt; margin-top: 0pt; margin-bottom: 0pt;"> </div> <div style="margin-top: 0pt; margin-bottom: 1pt; margin-left: 1.00em; text-indent: -1.00em; font-size: 10pt; font-family: arial;">State General Obligation Bonds</div> </td> <td style="vertical-align: bottom;">  </td> <td style="white-space: nowrap; vertical-align: bottom;"> </td> <td style="white-space: nowrap; vertical-align: bottom; text-align: right;">6.77%</td> <td style="white-space: nowrap; vertical-align: bottom;"> </td> <td style="vertical-align: bottom;"> </td> <td style="vertical-align: bottom;"></td> </tr> <tr style="page-break-inside: avoid; font-family: arial; font-size: 10pt; background-color: #cceeff;"> <td style="vertical-align: top;"> <div style="font-size: 4pt; margin-top: 0pt; margin-bottom: 0pt;"> </div> <div style="margin-top: 0pt; margin-bottom: 1pt; margin-left: 1.00em; text-indent: -1.00em; font-size: 10pt; font-family: arial;">Electric Revenue Bonds</div> </td> <td style="vertical-align: bottom;">  </td> <td style="white-space: nowrap; vertical-align: bottom;"> </td> <td style="white-space: nowrap; vertical-align: bottom; text-align: right;">6.04%</td> <td style="white-space: nowrap; vertical-align: bottom;"> </td> <td style="vertical-align: bottom;"> </td> <td style="vertical-align: bottom;"></td> </tr> <tr style="page-break-inside: avoid; font-family: arial; font-size: 10pt;"> <td style="vertical-align: top;"> <div style="font-size: 4pt; margin-top: 0pt; margin-bottom: 0pt;"> </div> <div style="margin-top: 0pt; margin-bottom: 1pt; margin-left: 1.00em; text-indent: -1.00em; font-size: 10pt; font-family: arial;">Housing Revenue Bonds</div> </td> <td style="vertical-align: bottom;">  </td> <td style="white-space: nowrap; vertical-align: bottom;"> </td> <td style="white-space: nowrap; vertical-align: bottom; text-align: right;">3.04%</td> <td style="white-space: nowrap; vertical-align: bottom;"> </td> <td style="vertical-align: bottom;"> </td> <td style="vertical-align: bottom;"></td> </tr> <tr style="page-break-inside: avoid; font-family: arial; font-size: 10pt; background-color: #cceeff;"> <td style="vertical-align: top;"> <div style="font-size: 4pt; margin-top: 0pt; margin-bottom: 0pt;"> </div> <div style="margin-top: 0pt; margin-bottom: 1pt; margin-left: 1.00em; text-indent: -1.00em; font-size: 10pt; font-family: arial;">Lease Revenue Bonds</div> </td> <td style="vertical-align: bottom;">  </td> <td style="white-space: nowrap; vertical-align: bottom;"> </td> <td style="white-space: nowrap; vertical-align: bottom; text-align: right;">2.88%</td> <td style="white-space: nowrap; vertical-align: bottom;"> </td> <td style="vertical-align: bottom;"> </td> <td style="vertical-align: bottom;"></td> </tr> <tr style="page-break-inside: avoid; font-family: arial; font-size: 10pt;"> <td style="vertical-align: top;"> <div style="font-size: 4pt; margin-top: 0pt; margin-bottom: 0pt;"> </div> <div style="margin-top: 0pt; margin-bottom: 1pt; margin-left: 1.00em; text-indent: -1.00em; font-size: 10pt; font-family: arial;">Water &amp; Sewer Revenue Bonds</div> </td> <td style="vertical-align: bottom;">  </td> <td style="white-space: nowrap; vertical-align: bottom;"> </td> <td style="white-space: nowrap; vertical-align: bottom; text-align: right;">2.34%</td> <td style="white-space: nowrap; vertical-align: bottom;"> </td> <td style="vertical-align: bottom;"> </td> <td style="vertical-align: bottom;"></td> </tr> <tr style="font-size: 10pt; font-family: arial;"> <td style="border-bottom: 0.75pt solid #000000; vertical-align: top;"> </td> <td style="border-bottom: 0.75pt solid #000000; vertical-align: bottom;">  </td> <td style="border-bottom: 0.75pt solid #000000; vertical-align: bottom;"> </td> <td style="border-bottom: 0.75pt solid #000000; vertical-align: bottom;"> </td> <td style="border-bottom: 0.75pt solid #000000; vertical-align: bottom;"> </td> <td style="vertical-align: bottom;"> </td> <td style="vertical-align: bottom;"></td> </tr> </table> 0.2332 0.8333 0.1588 0.1439 0.1337 0.0070 0.0039 0.0020 0.1300 0.1048 0.0677 0.0604 0.0304 0.0288 0.0234 <div style="margin-top: 18pt; margin-bottom: 0pt; font-size: 12pt; font-family: arial; font-weight: bold;">Material Fund changes</div> <div style="margin-top: 10pt; margin-bottom: 0pt; font-size: 10pt; font-family: arial;">Effective December 1, 2025, the Fund was renamed Nomura Tax‑Free California Fund.</div> <div style="margin-top: 4pt; margin-bottom: 0pt; font-size: 10pt; font-family: arial;">This is a summary of certain changes to the Fund that occurred during the reporting period. For more complete information, you may review the Fund’s next prospectus, which we expect to be available by December 30, 2026, at nomuraassetmanagement.com/literature or upon request at 800 523‑1918, weekdays from 8:30am to 6:00pm ET.</div> <div style="margin-top: 10pt; margin-bottom: 0pt; font-size: 10pt; font-family: arial;">Effective December 1, 2025, the Fund was renamed Nomura Tax‑Free California Fund.</div> 2025-12-01 <div style="margin-top: 4pt; margin-bottom: 0pt; font-size: 10pt; font-family: arial;">This is a summary of certain changes to the Fund that occurred during the reporting period. For more complete information, you may review the Fund’s next prospectus, which we expect to be available by December 30, 2026, at nomuraassetmanagement.com/literature or upon request at 800 523‑1918, weekdays from 8:30am to 6:00pm ET.</div> nomuraassetmanagement.com/literature 800 523‑1918 <div style="margin-top: 6pt; margin-bottom: 0pt; font-size: 12pt; font-family: arial; font-weight: bold;">Changes in and disagreements with accountants</div> <div style="margin-top: 10pt; margin-bottom: 0pt; font-size: 10pt; font-family: arial;">During the reporting period, there was a change in the Fund’s independent registered public accounting firm. On May 20, 2026, the Fund’s Board of Trustees, upon the recommendation of its Audit Committee, approved the appointment of Cohen &amp; Company, Ltd. as the independent registered public accounting firm for the Fund, effectively dismissing PricewaterhouseCoopers LLP (PwC) as the Fund’s independent registered public accounting firm. There were no disagreements with PwC during the Fund’s two most recent fiscal years or the subsequent interim period through May 20, 2026.</div> During the reporting period, there was a change in the Fund’s independent registered public accounting firm. On May 20, 2026, the Fund’s Board of Trustees, upon the recommendation of its Audit Committee, approved the appointment of Cohen &amp; Company, Ltd. as the independent registered public accounting firm for the Fund, effectively dismissing PricewaterhouseCoopers LLP (PwC) as the Fund’s independent registered public accounting firm. 2026-05-20 Excludes cash and cash equivalents. Costs paid as a percentage of a $10,000 investment would have been 1.55% if distressed investment expenses were not included. Costs paid as a percentage of a $10,000 investment would have been 0.80% if distressed investment expenses were not included. Excludes cash and cash equivalents. Costs paid as a percentage of a $10,000 investment would have been 0.55% if distressed investment expenses were not included. Excludes cash and cash equivalents.