UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number:	811-04547
Exact name of registrant as specified in charter:	Voyageur Mutual Funds III
Address of principal executive offices:	2005 Market Street
	Philadelphia, PA 19103
Name and address of agent for service:	David F. Connor, Esq.
	2005 Market Street
	Philadelphia, PA 19103
Registrant’s telephone number, including area code:	(800) 523-1918
Date of fiscal year end:	October 31
Date of reporting period:	January 31, 2016

Item 1. Schedule of Investments.

Schedule of investments
Delaware Select Growth Fund	January 31, 2016 (Unaudited)

		Number of shares	Value (U.S. $)
Common Stock – 100.62%✧
Consumer Discretionary – 23.33%
	DineEquity	128,316	$	10,896,595
	Discovery Communications Class A †	335,480		9,255,893
	Discovery Communications Class C †	113,795		3,096,362
	Dunkin’ Brands Group	309,140		12,167,750
	eBay †	572,684		13,435,167
	Grupo Televisa ADR	63,722		1,687,359
	L Brands	48,953		4,706,831
	Liberty Global Class C †	109,063		3,632,888
	Liberty Interactive QVC Group Class A †	588,913		15,347,073
	Liberty TripAdvisor Holdings Class A †	447,306		9,988,343
	Nielsen Holdings	231,039		11,126,838
	Outfront Media	615,059		13,377,533
	Pandora Media †	947,198		9,206,765
	Quotient Technology †	689,630		4,186,054
	Restoration Hardware Holdings †	7,128		439,227
	Sally Beauty Holdings †	729,441		20,103,394
	Shutterstock †	442,377		12,780,271
	Start Today	118,298		3,767,731
	TripAdvisor †	172,401		11,509,491
				170,711,565
Consumer Staples – 1.92%
	Walgreens Boots Alliance	175,808		14,015,414
				14,015,414
Energy – 0.54%
	Core Laboratories	23,132		2,276,189
	EOG Resources	10,878		772,556
	Kinder Morgan	27,669		455,155
	Williams	21,509		415,124
				3,919,024
Financial Services – 16.66%
	Affiliated Managers Group †	58,019		7,785,570
	Crown Castle International	139,293		12,007,057
	Equinix	42,176		13,098,600
	Equity Commonwealth †	563,067		15,140,872
	Intercontinental Exchange	38,843		10,246,783
	MasterCard Class A	141,685		12,614,216
	MSCI Class A	140,076		9,642,832
	PayPal Holdings †	680,306		24,586,259
	Visa Class A	199,112		14,831,853
	WisdomTree Investments	162,141		1,945,692
				121,899,734

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Schedule of investments
Delaware Select Growth Fund (Unaudited)

		Number of shares	Value (U.S. $)
Common Stock✧ (continued)
Healthcare – 21.34%
	ABIOMED †	125,119	$	10,676,404
	Allergan †	116,562		33,153,730
	athenahealth †	37,769		5,355,644
	Biogen †	102,676		28,036,708
	Celgene †	349,021		35,013,787
	DENTSPLY International	21,433		1,262,189
	Novo Nordisk ADR	181,353		10,132,192
	Roche Holding	19,889		5,151,735
	Sirona Dental Systems †	42,544		4,522,002
	Valeant Pharmaceuticals International †	252,643		22,793,451
				156,097,842
Producer Durables – 5.92%
	Expeditors International of Washington	174,627		7,879,170
	Experian	97,576		1,664,536
	Localiza Rent a Car	118,350		648,886
	Zebra Technologies †	548,228		33,112,971
				43,305,563
Technology – 29.44%
	Alphabet Class A †	23,487		17,881,827
	Alphabet Class C †	21,188		15,741,625
	Arista Networks †	77,254		4,637,558
	ARM Holdings	476,664		6,799,792
	Baidu ADR †	41,392		6,758,072
	Electronic Arts †	189,107		12,205,911
	Ellie Mae †	42,656		2,978,668
	Facebook Class A †	117,446		13,178,616
	Intuit	54,750		5,229,173
	LendingClub †	1,478,763		10,913,271
	Logitech International Class R	656,041		10,409,516
	Microsoft	646,319		35,605,714
	NIC	106,961		2,116,758
	NXP Semiconductors †	170,980		12,785,884
	QUALCOMM	790,752		35,852,696
	Tencent Holdings	358,660		6,738,038
	VeriFone Systems †	483,620		11,311,872
	Yelp †	202,010		4,232,109
				215,377,100

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(Unaudited)

		Number of shares	Value (U.S. $)
Common Stock✧ (continued)
Utilities – 1.47%
	j2 Global	148,446	$	10,763,819
				10,763,819
Total Common Stock (cost $727,753,229)				736,090,061
		Principal amount°
Short-Term Investments – 0.28%
Discount Notes – 0.28%≠
	Federal Home Loan Bank
	0.14% 2/18/16	686,643		686,562
	0.154% 2/3/16	158,128		158,125
	0.18% 3/7/16	125,399		125,364
	0.18% 2/26/16	635,571		635,460
	0.295% 3/2/16	437,033		436,928
Total Short-Term Investments (cost $2,042,517)				2,042,439
Total Value of Securities – 100.90%
	(cost $729,795,746)			738,132,500
Liabilities Net of Receivables and Other Assets – (0.90%)				(6,577,988	)
Net Assets Applicable to 20,559,392 Shares Outstanding – 100.00%			$	731,554,512

✧	Narrow industries are utilized for compliance purposes for diversification whereas broad sectors are used for financial reporting.
≠	The rate shown is the effective yield at the time of purchase.
°	Principal amount shown is stated in U.S. dollars unless noted that the security is denominated in another currency.
†	Non-income-producing security.

The following foreign currency exchange contracts were outstanding at Jan. 31, 2016:

Foreign Currency Exchange Contracts

								Unrealized
	Contracts to							Appreciation
Counterparty	Receive (Deliver)			In Exchange For			Settlement Date	(Depreciation)
BNYM	CHF	(459,110	)	USD	448,783		2/2/16	$	516
BNYM	GBP	247,634		USD	(356,028	)	2/1/16		(3,173	)
BNYM	JPY	(132,621,142	)	USD	1,095,464		2/3/16		(77	)
								$	(2,734	)

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Schedule of investments
Delaware Select Growth Fund (Unaudited)

The use of foreign currency exchange contracts involves elements of market risk and risks in excess of the amounts disclosed in the financial statements. The foreign currency exchange contracts presented above represent the Fund’s total exposure in such contracts, whereas only the net unrealized appreciation (depreciation) is reflected in the Fund’s net assets.

Summary of abbreviations:
ADR – American Depositary Receipt
BNYM – BNY Mellon
CHF – Swiss Franc
GBP – British Pound Sterling
JPY – Japanese Yen
USD – United States Dollar

4     NQ-316 [1/16] 3/16 (16179)

Notes
Delaware Select Growth Fund	January 31, 2016 (Unaudited)

1. Significant Accounting Policies

The following accounting policies are in accordance with U.S. generally accepted accounting principles (U.S. GAAP) and are consistently followed by Voyageur Mutual Funds III (Trust) – Delaware Select Growth Fund (Fund). This report covers the period of time since the Fund’s last fiscal year end.

Security Valuation — Equity securities, except those traded on the Nasdaq Stock Market LLC (Nasdaq), are valued at the last quoted sales price as of the time of the regular close of the New York Stock Exchange on the valuation date. Equity securities traded on the Nasdaq are valued in accordance with the Nasdaq Official Closing Price, which may not be the last sales price. If, on a particular day, an equity security does not trade, then the mean between the bid and ask prices will be used, which approximates fair value. Securities listed on a foreign exchange are normally valued at the last quoted sales price on the valuation date. U.S. government and agency securities are valued at the mean between the bid and ask prices, which approximates fair value. Foreign currency exchange contracts and foreign cross currency exchange contracts are valued at the mean between the bid and ask prices, which approximates fair value. Interpolated values are derived when the settlement date of the contract is an interim date for which quotations are not available. Generally, other securities and assets for which market quotations are not readily available are valued at fair value as determined in good faith under the direction of the Trust’s Board of Trustees. In determining whether market quotations are readily available or fair valuation will be used, various factors will be taken into consideration, such as market closures or suspension of trading in a security. The Fund may use fair value pricing more frequently for securities traded primarily in non-U.S. markets because, among other things, most foreign markets close well before the Fund values its securities, generally as of 4:00 p.m. Eastern time. The earlier close of these foreign markets gives rise to the possibility that significant events, including broad market moves, government actions or pronouncements, aftermarket trading, or news events may have occurred in the interim. Whenever such a significant event occurs, the Fund may frequently value foreign securities using fair value prices based on third-party vendor modeling tools (international fair value pricing).

2. Investments

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

NQ-316 [1/16] 3/16 (16179)     5

(Unaudited)

Level 1 –	Inputs are quoted prices in active markets for identical investments. (Examples: equity securities, open-end investment companies, futures contracts, exchange-traded options contracts)
Level 2 –	Other observable inputs, including, but not limited to: quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, and default rates), or other market-corroborated inputs. (Examples: debt securities, government securities, swap contracts, foreign currency exchange contracts, foreign securities utilizing international fair value pricing, broker-quoted securities, fair valued securities)
Level 3 –	Significant unobservable inputs, including the Fund’s own assumptions used to determine the fair value of investments. (Examples: broker-quoted securities, fair valued securities)

Level 3 investments are valued using significant unobservable inputs. The Fund may also use an income-based valuation approach in which the anticipated future cash flows of the investment are discounted to calculate fair value. Discounts may also be applied due to the nature or duration of any restrictions on the disposition of the investments. Valuations may also be based upon current market prices of securities that are comparable in coupon, rating, maturity, and industry. The derived value of a Level 3 investment may not represent the value which is received upon disposition and this could impact the results of operations.

The following table summarizes the valuation of the Fund’s investments by fair value hierarchy levels as of Jan. 31, 2016:

Securities	Level 1		Level 2			Total
Common Stock	$	701,558,713	$	34,531,348		$	736,090,061
Short-Term Investments		—		2,042,439			2,042,439
Total Value of Securities	$	701,558,713	$	36,573,787		$	738,132,500
Foreign Currency Exchange Contracts	$	—	$	(2,734	)	$	(2,734	)

During the period ended Jan. 31, 2016, there were no transfers between Level 1 investments, Level 2 investments, or Level 3 investments that had a significant impact to the Fund. This does not include transfers between Level 1 investments and Level 2 investments due to the Fund utilizing international fair value pricing during the period. In accordance with the fair valuation procedures described in Note 1, international fair value pricing of securities occurs when market volatility exceeds an established rolling threshold. If the threshold is exceeded on a given date, then prices of international securities (those that traded on exchanges that close at a different time than the time that the Fund’s net asset value is determined) are established using a separate pricing feed from a third party vendor designed to establish a price for each such security as of the time that the Fund’s net asset value is determined. Further, international fair value pricing uses other observable market-based inputs in place of the closing exchange price due to the events occurring after the close of the exchange or market on which the investment is principally traded, causing a change in classification between levels. The Fund’s policy is to recognize transfers between levels at the beginning of the reporting period.

6     NQ-316 [1/16] 3/16 (16179)

(Unaudited)

A reconciliation of Level 3 investments is presented when the Fund has a significant amount of Level 3 investments at the beginning, interim, or end of the period in relation to net assets. At Jan. 31, 2016, there were no Level 3 investments.

3. Subsequent Events

Management has determined that no material events or transactions occurred subsequent to Jan. 31, 2016 that would require recognition or disclosure in the Fund’s “Schedule of investments.”

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Item 2. Controls and Procedures.

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

There were no significant changes in the registrant’s internal control over financial reporting that occurred during the registrant’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 3. Exhibits.

File as exhibits as part of this Form a separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the Act (17 CFR 270.30a-2(a)), exactly as set forth below: