-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, i7SLwoMXaeo4sDnxl8VUyabhsmjHW+wW7PO0Sk4lzLpHm0D7Vx8A5ScHvINv6tnE ddhB2oOMUpdVdKdOfT6ndQ== 0000897101-95-000322.txt : 19950830 0000897101-95-000322.hdr.sgml : 19950830 ACCESSION NUMBER: 0000897101-95-000322 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19950630 FILED AS OF DATE: 19950829 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: VOYAGEUR INTERMEDIATE TAX FREE FUNDS INC CENTRAL INDEX KEY: 0000773675 STANDARD INDUSTRIAL CLASSIFICATION: [] FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-04364 FILM NUMBER: 95568602 BUSINESS ADDRESS: STREET 1: 100 S FIFTH ST STE 2200 CITY: MINNEAPOLIS STATE: MN ZIP: 55402 BUSINESS PHONE: 6123718684 MAIL ADDRESS: STREET 2: 100 S FIFTH ST STE 2200 CITY: MINNEAPOLIS STATE: MN ZIP: 55402 FORMER COMPANY: FORMER CONFORMED NAME: VOYAGEUR MINNESOTA INTERMEDIATE TAX FREE FUNDS INC DATE OF NAME CHANGE: 19920305 FORMER COMPANY: FORMER CONFORMED NAME: DOUBLE EXEMPT CAPITAL CONSERVATION FUND INC DATE OF NAME CHANGE: 19900131 FORMER COMPANY: FORMER CONFORMED NAME: DOUBLE EXEMPT INTERMEDIATE TERM FUND INC DATE OF NAME CHANGE: 19860310 FILER: COMPANY DATA: COMPANY CONFORMED NAME: VOYAGEUR TAX FREE FUNDS INC CENTRAL INDEX KEY: 0000733362 STANDARD INDUSTRIAL CLASSIFICATION: [] FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-03910 FILM NUMBER: 95568603 BUSINESS ADDRESS: STREET 1: 90 S 7TH ST STREET 2: STE 4400 CITY: MINNEAPOLIS STATE: MN ZIP: 55402 BUSINESS PHONE: 6123718684 FORMER COMPANY: FORMER CONFORMED NAME: VOYAGEUR MINNESOTA TAX FREE FUNDS INC DATE OF NAME CHANGE: 19910226 FORMER COMPANY: FORMER CONFORMED NAME: DOUBLE EXEMPT FLEX FUND INC DATE OF NAME CHANGE: 19900131 FILER: COMPANY DATA: COMPANY CONFORMED NAME: VOYAGEUR INSURED FUNDS INC CENTRAL INDEX KEY: 0000809064 STANDARD INDUSTRIAL CLASSIFICATION: [] FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-04973 FILM NUMBER: 95568604 BUSINESS ADDRESS: STREET 1: 100 S FIFTH ST STE 2200 CITY: MINNEAPOLIS STATE: MN ZIP: 55402 BUSINESS PHONE: 6123718684 MAIL ADDRESS: STREET 2: 100 S FIFTH ST STE 2200 CITY: MINNEAPOLIS STATE: MN ZIP: 55402 FORMER COMPANY: FORMER CONFORMED NAME: VOYAGEUR MINNESOTA INSURED FUNDS INC DATE OF NAME CHANGE: 19910926 FORMER COMPANY: FORMER CONFORMED NAME: MINNESOTA INSURED FUND INC DATE OF NAME CHANGE: 19900131 FORMER COMPANY: FORMER CONFORMED NAME: MINNESOTA ALTERNATIVE FUND INC DATE OF NAME CHANGE: 19881227 N-30D 1 MINNESOTA TAX FREE FUND MINNESOTA INSURED FUND MINNESOTA LIMITED TERM TAX FREE FUND SEMI-ANNUAL REPORT Dated June 30, 1995 Voyageur offers a family of mutual funds, each with an individual objective stated in its prospectus. Investment objectives of the funds range from high current income to long-term capital appreciation. Exchange privileges allow you to change your investment between Voyageur Funds as your objectives or market conditions change. VOYAGEUR TAX FREE FUNDS seek high current income free from both Federal income taxes and state income taxes (where applicable). The Funds invest in investment grade municipal bonds. Voyageur ARIZONA Tax Free Fund Voyageur KANSAS Tax Free Fund Voyageur CALIFORNIA Tax Free Fund Voyageur MINNESOTA Tax Free Fund Voyageur COLORADO Tax Free Fund Voyageur NEW MEXICO Tax Free Fund Voyageur FLORIDA Tax Free Fund Voyageur NORTH DAKOTA Tax Free Fund Voyageur IDAHO Tax Free Fund Voyageur UTAH Tax Free Fund Voyageur IOWA Tax Free Fund Voyageur WISCONSIN Tax Free Fund VOYAGEUR INSURED TAX FREE FUNDS seek high current income free from both Federal income taxes and state income taxes (where applicable) with the added safety of an insured portfolio. The Funds invest in insured municipal bonds. Voyageur ARIZONA Insured Tax Free Fund Voyageur MISSOURI Insured Tax Free Fund Voyageur CALIFORNIA Insured Tax Free Fund Voyageur NATIONAL Insured Tax Free Fund Voyageur FLORIDA Insured Tax Free Fund Voyageur OREGON Insured Tax Free Fund Voyageur MINNESOTA Insured Fund Voyageur WASHINGTON Insured Tax Free Fund
VOYAGEUR LIMITED TERM FUNDS seek to preserve original investment principal while providing income free from both Federal income taxes and state income taxes (where applicable). The Funds invest in intermediate term investment grade municipal bonds. Voyageur FLORIDA Limited Term Tax Free Fund Voyageur MINNESOTA Limited Term Tax Free Fund
VOYAGEUR EQUITY FUNDS seek long term capital appreciation by investing in common stocks. Voyageur AGGRESSIVE GROWTH Fund Voyageur INTERNATIONAL Equity Fund Voyageur GROWTH Stock Fund VOYAGEUR INCOME FUNDS seek high current income from investments issued, guaranteed or otherwise backed by the full faith and credit of the U.S. Government. Voyageur U.S. GOVERNMENT SECURITIES Fund VOYAGEUR CASH TRUST SERIES MONEY MARKET FUNDS seek high current income, principal protection and liquidity by investing in money market instruments. Voyageur CALIFORNIA MUNICIPAL CASH Series Voyageur MUNICIPAL CASH Series Voyageur FLORIDA MUNICIPAL CASH Series Voyageur OHIO MUNICIPAL CASH Series Voyageur GOVERNMENT CASH Series Voyageur PRIME CASH Series Voyageur MINNESOTA MUNICIPAL CASH Series Voyageur TREASURY CASH Series For more complete information regarding the investment objectives, fees and expenses of the Funds, please obtain a prospectus from your Investment Representative or from Voyageur, 90 South Seventh Street, Suite 4400, Minneapolis, MN 55402-4115; (612) 376-7044 (local); 800-525-6584 (MKTG). Dear Shareholder: The municipal bond market's dramatic rebound in the first half of 1995 caused many mutual funds to recover much of the ground they lost in last year's bear market. This strong rally was evidenced by the Fund's performance. I am pleased to present a considerably brighter picture of the municipal bond market and the Fund's performance than was presented in my last letter to you. The results below summarize the Fund's net asset value, dividends paid and total net assets for the reporting period. VOYAGEUR MINNESOTA TAX FREE FUND
NET ASSET NET ASSET TOTAL NET VALUE VALUE DIVIDENDS ASSETS BEGINNING END PAID PER END OF PERIOD OF PERIOD OF PERIOD SHARE PERIOD (000'S) Period ended June 30, 1995: Class A Shares $11.33 $12.09 $0.33 $444,580 Class B Shares 11.90* 12.09 0.17 803 Class C Shares 11.33 12.09 0.29 1,872
* Net asset value at March 11, 1995 (commencement of operations) VOYAGEUR MINNESOTA INSURED FUND
NET ASSET NET ASSET TOTAL NET VALUE VALUE DIVIDENDS ASSETS BEGINNING END PAID PER END OF PERIOD OF PERIOD OF PERIOD SHARE PERIOD (000'S) Period ended June 30, 1995: Class A Shares $9.61 $10.34 $0.28 $304,360 Class B Shares 10.12* 10.33 0.15 1,659 Class C Shares 9.61 10.34 0.24 2,510
* Net asset value at March 7, 1995 (commencement of operations) VOYAGEUR MINNESOTA LIMITED TERM TAX FREE FUND
NET ASSET NET ASSET TOTAL NET VALUE VALUE DIVIDENDS ASSETS BEGINNING END PAID PER END OF PERIOD OF PERIOD OF PERIOD SHARE PERIOD (000'S) Period ended June 30, 1995: Class A Shares $10.50 $10.96 $0.26 $71,293 Class C Shares 10.50 10.96 0.22 472
In the pages that follow, the Fund's Manager will update you on how the economy and the municipal bond market affected the Fund during this reporting period. The manager will discuss the Fund's performance and some strategies used to maximize performance. We assert that a long-range view of investing provides the greatest benefit to our shareholders. We encourage you to maintain a long-range view of investing; we believe that you will derive the greatest benefit by doing so. Thank-you for investing with Voyageur. Sincerely, John G. Taft President Voyageur Minnesota Tax Free Fund Voyageur Minnesota Insured Fund Voyageur Minnesota Limited Term Tax Free Fund DISCUSSION OF FUND MANAGEMENT BY ELIZABETH H. HOWELL, PORTFOLIO MANAGER Ms. Howell is Senior Vice President and Tax Exempt Portfolio Manager for the Voyageur Minnesota Tax Free Fund, the Voyageur Minnesota Insured Fund, and the Voyageur Minnesota Limited Term Tax Free Fund. She has over ten years experience as a securities analyst and portfolio manager. In general, Minnesota bonds tend to trade at a "premium" (lower yield) than bonds issued by other states in the country. This premium reflects the high state tax rates. On an after-tax basis, the in-state bonds are especially appealing to Minnesota residents. LONG FUNDS: The Voyageur Minnesota Tax Free and Voyageur Minnesota Insured funds are the long term funds in our Minnesota group. They are at the long end of the yield curve, although the Minnesota Insured Fund is shorter than the Minnesota Tax Free. During the first six months of the year, we implemented our "cover the yield curve" strategy. Under this strategy, the Minnesota Tax Free Fund's duration and average maturity were extended to make it the longest fund in the Minnesota family. By positioning the Funds along the yield curve, investors can tailor their bond portfolios to achieve a measured approach to interest rate exposure. Somewhat aggressive, long term investors will generally have a preference for the Voyageur Minnesota Tax Free Fund. Less aggressive, long term investors will typically prefer the Voyageur Minnesota Insured Fund. The following factors contributed to the strong performance of the long funds: * The long durations and long maturities enabled both funds to capture substantial price appreciation and strong total returns in an environment of declining interest rates. We had been anticipating a rally after the sharp sell off in 1994 and had positioned the funds to excel in the bull market scenario we were forecasting. Specifically, we were longer (maturity and duration) than most of our Minnesota competitors. (Specific information on duration and maturity for each Fund is shown below.) * Strong call protection boosted performance. The Funds held quality bonds with excellent call protection. We buy strong call protection because it allows investors to lock in to favorable yields for a longer period of time. We were constantly swapping bonds within the market to maintain adequate call protection within the portfolio. Maintaining adequate call protection remains a key component of our investment strategy. * Low supply conditions in the state of Minnesota also contributed favorably to strong total returns. * We're a high quality manager, 93% of the Voyageur Minnesota Tax Free Fund was comprised of bonds rated in the three highest categories by Standard & Poor's Corporation and Moody's Investors Service (AAA/Aaa, AA/Aa, A/A). The Voyageur Minnesota Insured Fund was comprised 100% of AAA/Aaa-rated, insured municipal bonds. In the current market environment, quality bonds outperformed "junk" bonds. THE VOYAGEUR MINNESOTA TAX FREE FUND The Fund's (A shares) posted a total return based on net asset value of 9.59% at the end of the reporting period. The Fund ranked 11th among its 32 fund competitors in its Lipper objective of Minnesota municipal debt funds for one year, 6/30/94 through 6/30/95. (Note: This Lipper Analytical Services ranking and the total return information that follow represent past performance which is no guarantee of future results. Shares may be worth more or less than their original cost. The total return based on net asset value for the Fund's A-shares was 9.59% at one year, 7.58% at five years and and 9.31% since inception.) At the end of the reporting period, the duration on the Minnesota Tax Free Fund was 9.4 years, and the average maturity was 16 years. THE VOYAGEUR MINNESOTA INSURED FUND The Fund's (A shares) posted a total return based on net asset value of 10.45 at the end of the reporting period. The Fund ranked 10th among its 32 fund competitors in its Lipper objective of Minnesota municipal debt funds for one year, 6/30/94 through 6/30/95. (Note: This Lipper Analytical Services ranking and the total return information that follow represent past performance which is no guarantee of future results. Shares may be worth more or less than their original cost. The total return based on net asset value for the Fund's A-shares was 7.53% at one year, 7.80% at five years and and 7.69 since inception.) At the end of the reporting period, the Minnesota Insured Fund had a duration of 8.1 years and an average maturity of 13 years. INTERMEDIATE FUND: The Voyageur Minnesota Limited Term Fund performed well in the first half of the year, and shareholders benefitted from sharply declining interest rates. We have traditionally managed the Fund conservatively and for low volatility. We have never had a ten-year average maturity, unlike most other funds in this universe. Instead, we manage it defensively for risk-averse bond investors who seek more income than available in tax exempt money market funds. We will continue to manage it conservatively and consistently within our "cover the yield curve" strategy. The Limited Term Fund covers the middle part of the yield curve, or what is sometimes called the belly of the curve, by owning bonds with maturities ranging from one year to 12 years. The following factors contributed to the performance of the Fund: * We modestly extended the average maturity of the Fund over the reporting period, from 5.4 years at 12/31/94 to 6.2 years at 6/30/95. * The Fund was comprised mainly of securities that are non-callable. This enables us to lock in higher yields in a declining rate environment. * We continue to stress quality. Nearly 90% of the portfolio is in bonds rated A or higher. We also hold 57% of the portfolio in "pre-refunded" bonds that are backed by the U.S. Treasury and are AAA rated. Pre-re's are well-known for their high credit quality and defensive performance attributes in volatile markets. They make an excel haven for conservative investors. THE MINNESOTA LIMITED TERM The Fund's (A shares) posted a total return based on net asset value of 6.77 at the end of the reporting period. The Fund ranked 42th among its 67 fund competitors in its Lipper objective of other states intermediate municipal debt funds for one year, 6/30/94 through 6/30/95. (Note: This Lipper Analytical Services ranking and the total return information that follow represent past performance which is no guarantee of future results. Shares may be worth more or less than their original cost. The total return based on net asset value for the Fund's A-shares was 6.82% at one year, 6.42% at five years and 6.40 since inception.) The total return for the Lipper objective was 6.99% for one year. The Voyageur Minnesota Limited Term Fund slightly underperformed the Lipper objective for that period. We attributed this to two factors: 1) the Fund's duration and average maturity profiles were below that of other funds in the objective; 2) the Fund had a lower relative yield compared to funds of other states. The lower yield is directly related to the higher-than-average state income tax that Minnesota residents pay. OUTLOOK FOR THE MINNESOTA FUNDS * The future for the Minnesota funds looks bright. Inflation is low and real rates of return are still rewarding to tax-exempt bond investors. * The funds are well positioned (duration/maturity/call protection/credit quality) to take advantage of the continuing bull market for bonds. * Supply is low and is anticipated to remain low through 1995. * "Cover the yield curve" is working well and will aid investors in their bond fund allocations and their effort to manage personal investment risk. * House Bill 1380 was eliminated from legislative consideration. This bill proposed taxing in-state municipal bonds which would have eliminated the state tax exemption for Minnesota bonds. We believe House Bill 1380 no longer poses a risk to the tax exempt status of Minnesota municipal bonds. * Federal tax reform discussions are likely to move towards realistic reform and away from radical reform in the coming months. The chances of enacting radical reform, such as a flat tax or national sales tax, are slim. In our opinion, we are likely to see some minor changes in the tax code to encourage a higher savings rate, and the tax-exempt status of municipals will remain intact. In any case, tax reform legislation is two to three years away. (Intentionally Blank Page)
THE VOYAGEUR FUNDS STATEMENTS OF ASSETS AND LIABILITIES (UNAUDITED) JUNE 30, 1995 VOYAGEUR VOYAGEUR VOYAGEUR MINNESOTA MINNESOTA MINNESOTA TAX FREE INSURED LIMITED TERM FUND FUND TAX FREE FUND ASSETS Investments in securities, at market value (note 1) (identified costs, $432,973,439, $296,926,382 and $67,745,889, respectively) ................................... $ 441,840,997 $ 302,899,654 $ 70,351,256 Cash in bank on demand deposit .................................. -- -- 2,495 Accrued interest receivable ..................................... 8,893,912 6,874,595 1,578,856 Receivable for investment securities sold ....................... 4,895,636 -- -- Receivable for Fund shares sold ................................. 70,833 60,682 -- Total assets ................................................. 455,701,378 309,834,931 71,932,607 LIABILITIES Disbursements in excess of cash in bank on demand deposit ....... 2,553,400 465,255 -- Dividends payable to shareholders ............................... 490,872 330,778 69,755 Payable for investment securities purchased ..................... 4,802,098 -- -- Payable for Fund shares redeemed ................................ 237,391 249,272 20,505 Other accrued expenses .......................................... 362,681 260,909 77,964 Total liabilities ............................................ 8,446,442 1,306,214 168,224 NET ASSETS APPLICABLE TO OUTSTANDING CAPITAL STOCK .............. $ 447,254,936 $ 308,528,717 $ 71,764,383 Represented by: Capital Stock - $.01 par value (note 1) ...................... $ 369,961 $ 298,507 $ 65,478 Additional paid-in capital ................................... 440,244,624 309,243,259 70,192,733 Distributions in excess of net investment income ............. (81,150) (2,702) (11,372) Accumulated net realized loss on investments ................. (2,146,057) (6,983,619) (1,087,823) Unrealized appreciation of investments ....................... 8,867,558 5,973,272 2,605,367 TOTAL NET ASSETS ........................................... $ 447,254,936 $ 308,528,717 $ 71,764,383 Net assets applicable to outstanding Class A shares ............. $ 444,580,341 $ 304,359,539 $ 71,292,641 Net assets applicable to outstanding Class B shares ............. $ 802,944 $ 1,659,025 N/A Net assets applicable to outstanding Class C shares ............. $ 1,871,651 $ 2,510,153 $ 471,742 SHARES OUTSTANDING AND NET ASSET VALUE PER SHARE Class A - Shares of Capital Stock outstanding: 36,774,898; 29,447,269; and 6,504,771; respectively (note 4) $ 12.09 $ 10.34 $ 10.96 Class B - Shares of Capital Stock outstanding: 66,415; 160,628; and N/A; respectively (note 4) ............ $ 12.09 $ 10.33 N/A Class C - Shares of Capital Stock outstanding: 154,746; 242,807; and 43,041; respectively (note 4) ........ $ 12.09 $ 10.34 $ 10.96
See accompanying notes to financial statements.
THE VOYAGEUR FUNDS STATEMENTS OF OPERATIONS (UNAUDITED) SIX MONTHS ENDED JUNE 30, 1995 VOYAGEUR VOYAGEUR VOYAGEUR MINNESOTA MINNESOTA MINNESOTA TAX FREE INSURED LIMITED TERM FUND FUND TAX FREE FUND Investment income: Interest ....................................................... $ 13,531,958 $ 9,021,526 $ 2,139,229 Expenses (note 3): Investment advisory and management fee ......................... 1,092,634 756,238 150,819 Dividend-disbursing, administrative and accounting services fees 245,579 167,436 66,880 Printing, postage and supplies ................................. 51,056 26,383 10,218 Audit and accounting fees ...................................... 22,216 17,400 18,359 Legal fees ..................................................... 20,342 9,295 7,132 Distribution fees - Class A .................................... 544,216 375,019 93,752 Distribution fees - Class B .................................... 512 2,408 N/A Distribution fees - Class C .................................... 7,641 10,626 2,045 Directors' fees ................................................ 18,668 6,535 2,664 Registration fees .............................................. 23,741 9,426 10,820 Custodian fees ................................................. 53,883 31,884 7,951 Other .......................................................... 23,576 582 2,881 Total expenses ............................................... 2,104,064 1,413,232 373,521 Less: Expenses waived, absorbed or reduced .................... -- (45,530) (7,591) Total net expenses ........................................... 2,104,064 1,367,702 365,570 Investment income - net ...................................... 11,427,894 7,653,824 1,773,659 Realized and unrealized gain (loss) on investments: Realized loss on security transactions (note 2) ................ (1,760,412) (6,983,619) (314,790) Net change in unrealized appreciation or depreciation of investments .............................................. 30,328,306 29,322,743 3,658,761 Net gain on investments .................................... 28,567,894 22,339,124 3,343,971 NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS .............. $ 39,995,788 $ 29,992,948 $ 5,117,630
See accompanying notes to financial statements.
THE VOYAGEUR FUNDS STATEMENTS OF CHANGES IN NET ASSETS (UNAUDITED) VOYAGEUR MINNESOTA TAX FREE FUND SIX MONTHS YEAR ENDED ENDED JUNE 30, 1995 DECEMBER 31, Operations: (UNAUDITED) 1994 Investment income - net ..................................................... $ 11,427,894 $ 23,704,596 Realized gain (loss) on investments - net ................................... (1,760,412) 1,273,350 Net change in unrealized appreciation or depreciation of investments ........ 30,328,306 (57,094,347) Net increase (decrease) in net assets resulting from operations .......... 39,995,788 (32,116,401) Distributions to shareholders from: Investment income - net: Class A ................................................................... (12,168,555) (22,948,453) Class B ................................................................... (3,017) N/A Class C ................................................................... (35,800) (16,674) Distributions in excess of net investment income: Class A ................................................................... (80,708) -- Class B ................................................................... -- N/A Class C ................................................................... (527) -- Net realized gain on investments: Class A ................................................................... -- (1,769,817) Class C ................................................................... -- (1,840) Excess distributions of net realized gains: Class A ................................................................... -- (385,244) Class C ................................................................... -- (401) Total distributions ..................................................... (12,288,607) (25,122,429) Capital share transactions (note 4): Proceeds from sale of shares: Class A (note 3) .......................................................... 30,122,131 64,943,542 Class B ................................................................... 812,819 N/A Class C ................................................................... 837,283 1,185,075 Net asset value of shares issued in reinvestment of net investment income distributions, distributions in excess of net investment income and realized gain distributions: Class A ............................................................... 9,046,665 20,135,429 Class B ............................................................... 2,140 N/A Class C ............................................................... 26,652 8,589 Payments for redemption of shares: Class A ................................................................... (28,720,531) (79,535,301) Class B ................................................................... (1,988) N/A Class C (note 3) .......................................................... (134,481) (86,392) Increase in net assets from capital share transactions ...................... 11,990,690 6,650,942 Total increase (decrease) in net assets ................................... 39,697,871 (50,587,888) Net assets at beginning of period .............................................. 407,557,065 458,144,953 Net assets at end of period (including undistributed net investment income or (distributions in excess of net investment income) of $(81,150) and $779,563; $(2,702) and $684,791; and $(11,372) and $29,883; respectively) ........... $ 447,254,936 $ 407,557,065
See accompanying notes to financial statements. (TABLE CONTINUED)
THE VOYAGEUR FUNDS STATEMENTS OF CHANGES IN NET ASSETS (UNAUDITED) VOYAGEUR MINNESOTA VOYAGEUR MINNESOTA INSURED FUND LIMITED TERM TAX FREE FUND SIX MONTHS YEAR SIX MONTHS PERIOD FROM ENDED ENDED ENDED MARCH 1, 1994 JUNE 30, 1995 DECEMBER 31, JUNE 30, 1995 TO DECEMBER 31, (UNAUDITED) 1994 (UNAUDITED) 1994 (NOTE 1) $ 7,653,824 $ 16,515,252 $ 1,773,659 $ 2,882,638 (6,983,619) 1,246,807 (314,790) (773,033) 29,322,743 (43,905,801) 3,658,761 (2,865,769) 29,992,948 (26,143,742) 5,117,630 (756,164) (8,280,572) (15,803,903) (1,795,464) (2,848,207) (9,367) N/A N/A N/A (48,676) (26,558) (8,078) (4,548) (1,819) -- (11,362) -- (336) N/A N/A N/A (547) -- (10) -- -- (1,244,392) -- -- -- (2,415) -- -- -- -- -- -- -- -- -- -- (8,341,317) (17,077,268) (1,814,914) (2,852,755) 17,810,125 65,030,846 3,155,476 30,487,684 1,655,398 N/A N/A N/A 901,637 1,825,218 245,337 381,811 6,607,412 11,637,921 1,486,186 1,735,212 7,937 N/A N/A N/A 44,486 19,210 7,889 2,923 (25,709,617) (60,585,547) (20,801,614) (23,276,387) -- N/A N/A N/A (97,187) (237,069) (140,196) (36,878) 1,220,191 17,690,579 (16,046,922) 9,294,365 22,871,822 (25,530,431) (12,744,206) 5,685,446 285,656,895 311,187,326 84,508,589 78,823,143 $308,528,717 $285,656,895 $71,764,383 $84,508,589
THE VOYAGEUR FUNDS NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Voyageur Minnesota Tax Free Fund (Minnesota Tax Free Fund) a fund within Voyageur Tax Free Funds, Inc.; Voyageur Minnesota Insured Fund (Minnesota Insured Fund) a fund within Voyageur Insured Funds, Inc., and Voyageur Minnesota Limited Term Tax Free Fund (Minnesota Limited Term Tax Free Fund), a fund within Voyageur Intermediate Tax Free Funds, Inc., (the Funds) are registered under the Investment Company Act of 1940 (as amended) as diversified, open-end management investment companies. The Funds offer Class A, Class B and Class C Shares. Class A Shares are sold with a front-end sales charge. Class B Shares (first offered on March 1, 1995) may be subject to a contingent deferred sales charge and such shares automatically convert to Class A after eight years. Class C Shares may be subject to a contingent deferred sales charge and have no conversion feature. As of June 30, 1995 there were no Class B Shares outstanding for Minnesota Limited Term Tax Free Fund. All classes of shares have identical voting, dividend, liquidation and other rights and the same terms and conditions, except that the level of distribution fees charged differs between classes. Income, expenses (other than expenses incurred under each class' Distribution Agreement) and realized and unrealized gains or losses on investments are allocated to each class of shares based upon its relative net assets. Pursuant to their amended articles of incorporation, Voyageur Tax Free Funds, Inc., Voyageur Insured Funds, Inc. and Voyageur Limited Term Tax Free Funds, Inc. each have 10 trillion shares of authorized capital stock that may be issued in one or more series. Effective February 28, 1994 Minnesota Limited Term Tax Free Fund changed its reporting year end to February 28 and effective December 31, 1994 changed back to December 31. The significant accounting policies followed by the Funds are summarized as follows: Investments in Securities Securities are valued at fair value as determined by the Board of Directors. Determination of fair value involves, among other things, using pricing services or prices quoted by independent brokers. Short-term securities are valued at amortized cost which approximates market value. Security transactions are accounted for on the trade date. Securities gains and losses are calculated on the identified-cost basis. Interest income, including level-yield amortization of premium and original issue discount, is accrued daily. Each of the Funds concentrate their investments in a single state, and therefore may have more credit risk related to the economic conditions of the state of Minnesota than a portfolio with broader geographical diversification. Securities Purchased on a When-Issued Basis Delivery and payment for securities which have been purchased by the Fund on a forward commitment or when-issued basis can take place up to a month or more after the transaction date. During this period, such securities are subject to market fluctuations and the portfolio maintains, in a segregated account with its custodian, assets with a market value equal to or greater than the amount of its purchase commitments. Federal Taxes The Funds' policy is to comply with the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute all of its taxable income to shareholders in amounts that will avoid or minimize federal income or excise taxes for the Funds. Net investment income and net realized gains (losses) for the Funds may differ for financial statement and tax purposes primarily because of losses deferred for tax purposes due to "wash sale" transactions. The character of distributions made during the year from net investment income or net realized gains may differ from their ultimate characterization for federal income tax purposes. The effect on dividend distributions on certain book-to-tax differences is reflected as excess distributions of net realized gains in the statement of changes in net assets. Also, due to the timing of dividend distributions, the fiscal year in which amounts are distributed may differ from the year that the income or realized gains (losses) were recorded by the fund. For federal income tax purposes, as of December 31, 1994, Minnesota Tax Free Fund had a capital loss carryover of $385,645 that will expire in 2003 and the Minnesota Limited Term Tax Free Fund had a capital loss carryover of $773,033 that will expire in 2002 and 2003 if not offset by subsequent capital gains. It is unlikely that the Board of Directors will authorize a distribution of any net realized capital gains until the available capital loss carryover has been offset or expires. Distributions to Shareholders Dividends declared daily from net investment income are payable monthly in cash or reinvested in additional shares of each Fund. Distribution of net short-term realized capital gains, if any, may be paid on a monthly or annual basis. Net long-term realized capital gains, when available, are distributed annually. (2) SECURITIES TRANSACTIONS Purchase cost and proceeds from sales of securities other than short-term securities aggregated $175,186,649 and $166,238,762 for Minnesota Tax Free Fund; $123,052,420 and $124,356,448 for Minnesota Insured Fund; and $20,352,909 and $35,971,225 for Minnesota Limited Term Tax Free Fund, respectively, during the six months ended June 30, 1995. (3) EXPENSES Each Fund has an investment advisory and management agreement with Voyageur Fund Managers, Inc. (Voyageur) under which Voyageur manages the Fund assets and provides other specified services. The fee for investment management and advisory services is paid monthly and is based on the average daily net assets of each Fund at the annual rate of .50% (.40% for Minnesota Limited Term Tax Free Fund). In addition, each Fund will pay most other operating expenses including directors' fees, registration fees, printing of shareholder reports, legal and auditing services and other miscellaneous expenses. The Minnesota Insured Fund incurred portfolio insurance expense of $637 for the six months ended June 30, 1995. Portfolio insurance expense, if any, is recognized over the premium period. Voyageur is obligated to pay all expenses of each Fund (excluding distribution fees, insurance premiums on portfolio securities, taxes, interest and brokerage commissions) which exceed 1% of average daily net assets, on an annual basis. Each Fund will also pay a fee to Voyageur for acting as the Fund's dividend disbursing, administrative and accounting services agent. The fee is paid monthly and is equal to the sum of $1.33 per shareholder account per month, a fixed monthly fee ranging from $1,000 to $1,500 based on the level of the Fund's average daily net assets and an annualized percentage of average daily net assets at reducing rates from .11% to .02%. Each Fund is also responsible for reimbursing Voyageur's out-of-pocket expense in connection with the performance of dividend-disbursing, administrative and accounting services. All classes of shares have a Distribution Agreement under Rule 12b-1 of the Investment Company Act of 1940 with Voyageur Fund Distributors, Inc. (Fund Distributors). Under this plan each Fund is obligated to pay Fund Distributors a monthly distribution fee at an annual rate of .25% of each Funds' average daily net assets of the Class A Shares and 1.00% of each Funds' average daily net assets of the Class B and Class C Shares. Fund Distributors may waive all or part of its distribution fee at its sole discretion. During the six months ended June 30, 1995, Fund Distributors voluntarily waived Class A distribution fees of $40,241 and Class B distribution fees of $636, for Minnesota Insured Fund. Minnesota Insured Fund and Minnesota Limited Term Tax Free Fund earned $4,653 and $8,143, respectively, in credits on uninvested cash balances held at the custodian during the six months ended June 30, 1995. Of these amounts, $4,653 and $7,951 were used to reduce certain fees for various custodial, pricing and accounting services provided by the custodian bank for Minnesota Insured Fund and Minnesota Limited Term Tax Free Fund, respectively. The remaining $192 credits in Minnesota Limited Term Tax Free Fund are included in interest income. Sales charges paid by Class A shareholders were $420,733 for Minnesota Tax Free Fund, $308,222 for Minnesota Insured Fund, and $19,575 for Minnesota Limited Term Tax Free Fund. Of these amounts, Fund Distributors received $58,665 for Minnesota Tax Free Fund, $42,246 for Minnesota Insured Fund and $3,432 for Minnesota Limited Term Tax Free Fund. Contingent deferred sales charges paid by Class C Shareholders were $1,294 for Minnesota Tax Free Fund, $567 for Minnesota Insured Fund and $258 for Minnesota Limited Term Tax Free Fund. (4) CAPITAL STOCK Transactions in shares of capital stock during the periods ended June 30, 1995 and December 31, 1994 were as follows:
MINNESOTA TAX FREE FUND CLASS A CLASS B CLASS C SIX MONTHS YEAR PERIOD FROM SIX MONTHS PERIOD FROM ENDED ENDED MARCH 11, 1995* ENDED MAY 4, 1994* JUNE 30, 1995 DECEMBER 31, TO JUNE 30, 1995 JUNE 30, 1995 TO DECEMBER 31, (UNAUDITED) 1994 (UNAUDITED) (UNAUDITED) 1994 Shares sold..................... 2,537,222 5,363,728 66,406 70,202 100,287 Shares issued for reinvested distributions..... 761,331 1,650,611 175 2,229 743 Shares redeemed................. (2,402,695) (6,775,465) (166) (11,296) (7,419) Increase in shares outstanding.. 895,858 238,874 66,415 61,135 93,611
MINNESOTA INSURED TAX FREE FUND CLASS A CLASS B CLASS C SIX MONTHS YEAR PERIOD FROM SIX MONTHS PERIOD FROM ENDED ENDED MARCH 7, 1995* ENDED MAY 4, 1994* JUNE 30, 1995 DECEMBER 31, TO JUNE 30, 1995 JUNE 30, 1995 TO DECEMBER 31, (UNAUDITED) 1994 (UNAUDITED) (UNAUDITED) 1994 Shares sold..................... 1,762,937 6,279,044 159,866 89,129 181,323 Shares issued for reinvested distributions..... 651,797 1,127,749 762 4,368 1,946 Shares redeemed................. (2,536,111) (6,080,410) -- (9,409) (24,550) Increase (decrease) in shares outstanding........... (121,377) 1,326,383 160,628 84,088 158,719
MINNESOTA LIMITED TERM TAX FREE FUND CLASS A CLASS C SIX MONTHS PERIOD FROM SIX MONTHS PERIOD FROM ENDED MARCH 1, 1994 ENDED MAY 4, 1994* JUNE 30, 1995 TO DECEMBER 31, JUNE 30, 1995 TO DECEMBER 31, (UNAUDITED) 1994 (UNAUDITED) 1994 Shares sold............................. 293,858 2,862,156 22,888 35,658 Shares issued for reinvested distributions............. 138,307 162,269 732 276 Shares redeemed......................... (1,943,790) (2,189,053) (13,052) (3,461) Increase (decrease) in shares outstanding (1,511,625) 835,372 10,568 32,473
* Commencement of operations. (5) FINANCIAL HIGHLIGHTS Per shares data (rounded to the nearest cent) for a share of capital stock outstanding and selected information for each period are as follows:
MINNESOTA TAX FREE FUND CLASS A SIX MONTHS ENDED JUNE 30, 1995 (UNAUDITED) 1994 1993 1992 1991 1990 Net asset value: Beginning of period ............. $ 11.33 $ 12.85 $ 12.21 $ 12.07 $ 11.67 $ 11.68 Operations: Net investment income ........... .31 .63 .64 .70 .75 .77 Net realized and unrealized gain (loss) on investments .... .78 (1.48) .87 .23 .49 .02 Total from operations ....... 1.09 (.85) 1.51 .93 1.24 .79 Distributions to shareholders: From net investment income ...... (.33) (.61)(a) (.64)(a) (.70)(a) (.75)(a) (.77)(a) From net realized gains ......... -- (.05) (.23) (.09) (.09) (.03) In excess of net realized gains . -- (.01) -- -- -- -- Total distributions ........... (.33) (.67) (.87) (.79) (.84) (.80) Net asset value: End of period ................... $ 12.09 $ 11.33 $ 12.85 $ 12.21 $ 12.07 $ 11.67 Total investment return (b) ........ 9.59% (6.73)% 12.70% 7.97% 11.04% 7.03% Net assets at end of period (000's omitted) .......... $444,580 $406,497 $458,145 $331,314 $251,594 $197,629 Ratios: Ratio of expenses to average daily net assets ...... .96%(e) .90% 1.02% .96% .83% .82% Ratio of net investment income to average daily net assets ... 5.23%(e) 5.29% 5.02% 5.73% 6.44% 6.68% Assuming no voluntary waivers and reimbursements: Expenses (c) ............ .96%(e) .90% 1.02% 1.04% .98% 1.02% Net investment income ... 5.23%(e) 5.29% 5.02% 5.65% 6.29% 6.48% Portfolio turnover rate (excluding short-term securities) ........ 38.94% 24.26% 31.77% 23.60% 26.40% 20.54%
See accompanying notes to Financial Highlights.
MINNESOTA TAX FREE FUND CLASS B CLASS C PERIOD FROM SIX MONTHS PERIOD FROM MARCH 11, 1995(d) ENDED MAY 4, 1994(d) TO JUNE 30, 1995 JUNE 30, 1995 DECEMBER 31, (UNAUDITED) (UNAUDITED) 1994 Net asset value: Beginning of period ............. $ 11.90 $ 11.33 $ 11.96 Operations: Net investment income ........... .17 .27 .34 Net realized and unrealized gain (loss) on investments .... .19 .78 (.61) Total from operations ....... .36 1.05 (.27) Distributions to shareholders: From net investment income ...... (.17) (.29) (.32)(a) From net realized gains ......... -- -- (.04) Total distributions ........... (.17) (.29) (.36) Net asset value: End of period ................... $ 12.09 $ 12.09 $ 11.33 Total investment return (b) ........ 2.94% 9.19% (2.30)% Net assets at end of period (000's omitted) .......... $ 803 $1,872 $1,061 Ratios: Ratio of expenses to average daily net assets ...... 1.39%(e) 1.70%(e) 1.72%(e) Ratio of net investment income to average daily net assets ... 4.40%(e) 4.45%(e) 4.56%(e) Assuming no voluntary waivers and reimbursements: Expenses (c) ............ 1.39%(e) 1.70%(e) 1.72%(e) Net investment income ... 4.40%(e) 4.45%(e) 4.56%(e) Portfolio turnover rate (excluding short-term securities) ........ 38.94% 38.94% 24.26%
See accompanying notes to Financial Highlights.
MINNESOTA INSURED FUND CLASS A SIX MONTHS ENDED JUNE 30, 1995 YEAR ENDED DECEMBER 31, (UNAUDITED) 1994 1993 1992 1991 1990 Net asset value: Beginning of period ................. $ 9.61 $ 11.02 $ 10.27 $ 10.07 $ 9.65 $ 9.64 Operations: Net investment income ............... .26 .54 .54 .59 .60 .61 Net realized and unrealized gain (loss) on investments ........ .75 (1.39) .84 .25 .48 .02 Total from operations ........... 1.01 (.85) 1.38 .84 1.08 .63 Distributions to shareholders: From net investment income .......... (.28) (.52)(a) (.54)(a) (.59)(a) (.60)(a) (.61)(a) From net realized gains ............. -- (.04) (.09) (.05) (.06) (.01) Total distributions ............... (.28) (.56) (.63) (.64) (.66) (.62) Net asset value: End of period ....................... $ 10.34 $ 9.61 $ 11.02 $ 10.27 $ 10.07 $ 9.65 Total investment return (b) ............ 10.45% (7.88)% 13.80% 8.57% 11.59% 6.63% Net assets at end of period (000's omitted) .............. $304,360 $284,132 $311,187 $162,728 $68,250 $29,394 Ratios: Ratio of expenses to average daily net assets .......... .90%(e) .61% .70% .37% .78% .74% Ratio of net investment income to average daily net assets ....... 5.07%(e) 5.29% 4.93% 5.66% 6.13% 6.30% Assuming no voluntary waivers and reimbursements and reductions: Expenses (c) ................ .93%(e) .94% 1.02% 1.06% 1.16% 1.25% Net investment income ....... 5.04%(e) 4.96% 4.61% 4.97% 5.75% 5.79% Portfolio turnover rate (excluding short-term securities) ............ 39.38% 24.75% 18.25% 14.11% 43.68% 15.12%
See accompnaying notes to Financial Highlights.
MINNESOTA INSURED FUND CLASS B CLASS C PERIOD FROM SIX MONTHS PERIOD FROM MARCH 7, 1995(d) ENDED MAY 4, 1994(d) TO JUNE 30, 1995 JUNE 30, 1995 DECEMBER 31, (UNAUDITED) (UNAUDITED) 1994 Net asset value: Beginning of period ................. $ 10.12 $ 9.61 $ 10.23 Operations: Net investment income ............... .15 .22 .30 Net realized and unrealized gain (loss) on investments ........ .21 .75 (.62) Total from operations ........... .36 .97 (.32) Distributions to shareholders: From net investment income .......... (.15) (.24) (.28)(a) From net realized gains ............. -- -- (.02) Total distributions ............... (.15) (.24) (.30) Net asset value: End of period ....................... $ 10.33 $ 10.34 $ 9.61 Total investment return (b) ............ 3.28% 10.03% (3.14)% Net assets at end of period (000's omitted) .............. $1,659 $2,510 $1,525 Ratios: Ratio of expenses to average daily net assets .......... 1.37%(e) 1.68%(e) 1.36%(e) Ratio of net investment income to average daily net assets ....... 3.89%(e) 4.26%(e) 4.68%(e) Assuming no voluntary waivers and reimbursements and reductions: Expenses (c) ................ 1.64%(e) 1.69%(e) 1.68%(e) Net investment income ....... 3.62%(e) 4.25%(e) 4.36%(e) Portfolio turnover rate (excluding short-term securities) ............ 39.38% 39.38% 24.75%
See accompanying notes Financial Highlights.
MINNESOTA LIMITED TERM TAX FREE FUND CLASS A SIX MONTHS PERIOD FROM TWO MONTHS ENDED MARCH 1, 1994 ENDED JUNE 30, 1995 TO DECEMBER 31,FEBRUARY 28, YEAR ENDED DECEMBER 31, (UNAUDITED) 1994 1994 1993 1992 1991 1990 Net asset value: Beginning of period ................. $ 10.50 $ 10.98 $ 11.16 $ 10.83 $ 10.69 $ 10.32 $ 10.26 Operations: Net investment income ............... .26 .37 .08 .47 .51 .55 .60 Net realized and unrealized gain (loss) on investments ........ .46 (.48) (.18) .37 .18 .37 .06 Total from operations ........... .72 (.11) (.10) .84 .69 .92 .66 Distributions to shareholders: From net investment income .......... (.26) (.37)(a) (.08)(a) (.47)(a) (.51)(a) (.55)(a) (.60) (a) From net realized gains ............. -- -- -- (.04) (.04) -- -- Total distributions ............... (.26) (.37) (.08) (.51) (.55) (.55) (.60) Net asset value: End of period ....................... $ 10.96 $ 10.50 $ 10.98 $ 11.16 $ 10.83 $ 10.69 $ 10.32 Total investment return (b) ............ 6.77% (0.98)% (.95)% 7.88% 6.62% 9.24% 6.59% Net assets at end of period (000's omitted) .............. $71,293 $84,168 $78,823 $75,374 $48,210 $27,268 $22,526 Ratios: Ratio of expenses to average daily net assets .......... .97%(e) .92%(e) .88%(e) .99% 1.09% 1.23% 1.18% Ratio of net investment income to average daily net assets ....... 4.71%(e) 4.20%(e) 4.02%(e) 4.18% 4.71% 5.35% 5.81% Assuming no voluntary waivers and reimbursements and reductions: Expenses (c) ................ .99%(e) .92%(e) .88%(e) .99% 1.09% 1.23% 1.18% Net investment income ....... 4.69%(e) 4.20%(e) 4.02%(e) 4.18% 4.71% 5.35% 5.81% Portfolio turnover rate (excluding short-term securities) ............ 27.65% 42.05% .01% 19.13% 25.56% 43.39% 51.47%
See accompanying notes to Financial Highlights.
MINNESOTA LIMITED TERM TAX FREE FUND CLASS C SIX MONTHS PERIOD FROM ENDED APRIL 30, 1994(d) JUNE 30, 1995 DECEMBER 31, (UNAUDITED) 1994 Net asset value: Beginning of period ................. $ 10.50 $ 10.74 Operations: Net investment income ............... .22 .24 Net realized and unrealized gain (loss) on investments ........ .46 (.24) Total from operations ........... .68 -- Distributions to shareholders: From net investment income .......... (.22) (.24)(a) Net asset value: End of period ....................... $ 10.96 $ 10.50 Total investment return (b) ............ 6.37% (0.03)% Net assets at end of period (000's omitted) .............. $ 472 $ 341 Ratios: Ratio of expenses to average daily net assets .......... 1.71%(e) 1.71%(e) Ratio of net investment income to average daily net assets ....... 3.90%(e) 3.35%(e) Assuming no voluntary waivers and reimbursements and reductions: Expenses (c) ................ 1.73%(e) 1.71%(e) Net investment income ....... 3.88%(e) 3.35%(e) Portfolio turnover rate (excluding short-term securities) ............ 27.65% 42.05%
See accompanying notes to Financial Highlights. NOTES TO FINANCIAL HIGHLIGHTS (a) For federal income tax purposes, all of the distributions from net investment income were derived from interest on securities exempt from federal income tax. For Class A Shares for the year ended December 31, 1990, $.01 and $.02 per share of the distributions from net investment income were subject to state income tax for Minnesota Tax Free Fund and Minnesota Insured Fund, respectively. (b) Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of distributions at net asset value and does not reflect the impact of a sales charge. (c) Voyageur and Fund Distributors voluntarily waived or reimbursed expenses during several periods presented. The annual contractual expense limit for the Funds (excluding distribution fees, insurance premiums on portfolio securities, taxes, interest and brokerage commissions) is 1.00% of average daily net assets. The maximum distribution fee is .25% of each Fund's average daily net assets for Class A Shares and 1.00% of each Fund's average daily net assets for Class B and Class C Shares. (d) Commencement of operations. (e) Annualized.
VOYAGEUR MINNESOTA TAX FREE FUND INVESTMENTS IN SECURITIES (UNAUDITED) JUNE 30, 1995 PRINCIPAL AMOUNT COUPON MARKET ($000) NAME OF ISSUER (d) RATE MATURITY VALUE (a) (PERCENTAGE OF EACH INVESTMENT CATEGORY RELATES TO TOTAL NET ASSETS.) MINNESOTA MUNICIPAL BONDS (98.8%): ESCROWED WITH U.S. GOVERNMENT BONDS (4.9%): $ 1,000 Anoka County Capital Improvement....................................... 7.20% 02-01-99 $ 1,081,230 250 Blaine IDR (Ball Corp)................................................. 8.25 12-01-99 284,378 300 Blaine IDR (Ball Corp)................................................. 8.25 12-01-00 347,949 390 Brainerd Independent School District #181.............................. 7.00 06-01-01 431,515 575 Kimball Independent School District #739............................... 7.70 02-01-98 619,568 525 Kimball Independent School District #739............................... 7.60 02-01-98 564,432 575 Little Falls Independent School District #482 (AMBAC Insured).......... 6.80 02-01-99 539,220 860 Northfield College Facility Revenue - St. Olaf College................. 8.00 10-01-98 947,247 1,255 Northfield College Facility Revenue - St. Olaf College................. 7.88 10-01-98 1,377,651 1,000 Owatonna Public Utilities.............................................. 6.75 01-01-01 1,098,120 750 Rockford Independent School District #833.............................. 7.20 12-15-98 814,170 990 Southern Minnesota Muni Power Agency Power Supply...................... 5.50 01-01-15 955,588 4,790 Southern Minnesota Muni Power Agency Power Supply...................... 5.75 01-01-18 4,715,755 1,000 St. Cloud Independent School District #742............................. 7.50 02-01-98 1,068,950 775 St. Louis Park Methodist Hospital (AMBAC Insured)...................... 7.25 07-01-00 877,928 2,175 St. Paul Sewer Revenue Series 88A...................................... 8.00 12-01-98 2,421,863 1,500 University of Minnesota Revenue Refunding ETM.......................... 6.00 02-01-11 1,517,760 1,560 Wayzata Independent School District #284............................... 7.10 02-01-99 1,678,997 625 Wayzata Independent School District #284............................... 7.05 02-01-99 671,656 22,013,977 GENERAL OBLIGATION (34.5%): 2,325 Austin Independent School District #492 (FSA Insured).................. 5.10 02-01-12 2,146,115 1,450 Becker Independent School District #726 (Capital Guaranty Insured)..... 5.30 02-01-11 1,387,708 1,235 Becker Independent School District #726 (Capital Guaranty Insured)..... 5.38 02-01-14 1,175,337 500 Bloomington Tax Increment.............................................. 9.75 02-01-08 661,290 1,000 Byron Independent School District #531 (AMBAC Insured)................. 5.30 06-01-14 942,660 1,805 Centennial Independent School District #12 (FGIC Insured).............. 4.88 02-01-10 1,659,048 1,305 Centennial Independent School District #12 (FGIC Insured).............. 4.88 02-01-12 1,177,528 2,850 Chaska Independent School District #112 (FGIC Insured)................. 5.25 02-01-11 2,698,409 5,085 Chaska Independent School District #112 (FGIC Insured)................. 5.38 02-01-14 4,811,732 3,055 Dover Eyota Independent School District #533 (AMBAC Insured)........... 5.25 02-01-20 2,806,354 6,980 Edina Independent School District #273................................. 5.75 02-01-13 7,019,786 1,000 Faribault Independent School District #656 (MN School District Credit Enhanced)...................................................... 6.10 06-01-10 1,026,720 3,500 Farmington Independent School District #192 (AMBAC Insured)............ 5.13 02-01-15 3,214,050 1,760 Fergus Falls Independent School District #544 (MBIA Insured)........... 5.30 02-01-14 1,660,102 4,050 Hennepin County........................................................ 5.63 10-01-07 4,144,770 11,290 Hennepin County........................................................ 5.75 10-01-10 11,401,658 3.675 Hopkins Independent School District #270 (MBIA Insured)................ 4.88 02-01-13 3,297,026 1,000 Lake of the Woods Independent School District #390 (MBIA Insured)...... 5.10 02-01-16 910,690 1,180 Lake of the Woods Independent School District #390 (MBIA Insured)...... 5.13 02-01-20 1,063,640 5,600 Lakeville Independent School District #194 (MBIA Insured).............. 5.13 02-01-13 5,188,456 8,705 Lakeville Independent School District #194 (MBIA Insured).............. 5.15 02-01-15 8,019,046 9,700 Lakeville Independent School District #194 (FGIC Insured).............. 5.60 02-01-18 9,386,011 1,540 Mahtomedi Independent School District #832 Zero Coupon (MBIA Insured). 5.90(g) 02-01-14 510,710 3,870 Mankato Independent School District #77 (Capital Guaranty Insured)..... 5.30 02-01-13 3,663,690 10,000 Maplewood Independent School District #622 (Capital Guaranty Insured).. 7.10 02-01-25 10,943,900 1,015 Milaca Independent School District #921 (FSA Insured).................. 5.50 02-01-20 960,119 1,000 Minneapolis Convention Center Facilities............................... 5.45 04-01-13 979,110 2,000 Minneapolis G.O........................................................ 5.20 03-01-13 1,902,920 1,750 Minneapolis Unlimited Tax Series 1992 G.O.............................. 6.30 10-01-08 1,872,203 3,495 Minnesota State G.O.................................................... 5.50 08-01-09 3,471,199 3,745 Minnesota State G.O.................................................... 5.40 08-01-09 3,683,282 2,000 Minnesota State G.O.................................................... 4.90 08-01-11 1,823,160 1,140 New York Mills Independent School District #53 (AMBAC Insured)......... 5.05 02-01-15 1,035,234 240 Pine Island Independent School District #255 (Capital Guaranty Insured) 6.63 06-01-12 251,345 310 Pine Island Independent School District #255 (Capital Guaranty Insured) 6.63 06-01-13 324,387 330 Pine Island Independent School District #255 (Capital Guaranty Insured) 6.63 06-01-14 345,886 355 Pine Island Independent School District #255 (Capital Guaranty Insured) 6.63 06-01-15 370,879 380 Pine Island Independent School District #255 (Capital Guaranty Insured) 6.63 06-01-16 396,667 385 Plainview Independent School District #810............................. 6.70 02-01-06 415,800 420 Plainview Independent School District #810............................. 6.75 02-01-07 454,650 445 Plainview Independent School District #810............................. 6.75 02-01-08 481,712 1,000 Rochester Tax Increment................................................ 6.50 12-01-04 1,040,900 2,760 Rockford Independent School District #883 (Capital Guaranty Insured)... 5.25 12-15-14 2,581,842 9,375 Rosemount - Apple Valley Independent School District #196 (Capital Guaranty Insured)........................................... 5.88 04-01-15 9,414,750 2,600 Rosemount Independent School District #196 Zero Coupon (Capital Guaranty Insured)........................................... 5.93(g) 04-01-11 1,033,422 1,850 Rosemount Independent School District #196 Zero Coupon (Capital Guaranty Insured)........................................... 5.96(g) 04-01-12 687,830 1,915 Rosemount Independent School District #196 Zero Coupon (Capital Guaranty Insured)........................................... 6.01(g) 04-01-13 669,158 1,850 Sartell Independent School District #748 (MBIA Insured)................ 5.75 02-01-15 1,834,904 1,655 South Washington County Independent School District #833 (FGIC Insured) 4.88 06-01-10 1,519,191 1,400 South Washington County Independent School District #833 (FGIC Insured) 4.88 06-01-11 1,253,182 1,310 South Washington County Independent School District #833 (FGIC Insured) 4.88 06-01-12 1,180,493 1,350 South Washington County Independent School District #833 (FGIC Insured) 4.88 06-01-13 1,209,627 2,170 South Washington County Independent School District #833 (FGIC Insured) 4.88 06-01-14 1,933,687 1,540 St. Paul Housing & Redevelopment Authority St. Paul Academy Series 93.. 5.45 10-01-23 1,403,895 3,000 Stillwater Independent School District #834 (MBIA Insured)............. 5.75 02-01-15 2,975,520 1,500 Thief River Falls Independent School District #564 (FSA Insured)....... 5.35 04-01-13 1,419,810 1,680 Washington County...................................................... 5.90 02-01-10 1,696,010 7,625 White Bear Lake Independent School District #624 (FSA Insured)......... 5.30 02-01-11 7,259,763 5,750 White Bear Lake Independent School District #624 (FSA Insured)......... 5.30 02-01-14 5,392,580 154,191,553 UTILITIES (15.1%): 1,750 Bass Brook PCR Minnesota Power & Light (MBIA Insured).................. 6.00% 07-01-22 1,750,578 21,005 Bass Brook PCR Minnesota Power & Light................................. 6.00 07-01-22 20,350,694 1,000 Moorhead Public Utilities Revenue (MBIA Insured)....................... 6.25 11-01-12 1,027,510 3,815 Northern Minnesota Municipal Power Agency Zero Coupon (AMBAC Insured).. 5.85(g) 01-01-09 1,752,993 9,200 Northern Minnesota Municipal Power Agency (AMBAC Insured).............. 5.50 01-01-18 8,788,944 5,875 Northern Minnesota Municipal Power Agency.............................. 7.25 01-01-16 6,396,406 3,880 Southern Minnesota Municipal Power Agency Series A (FGIC Insured)...... 5.00 01-01-12 3,536,387 2,000 Southern Minnesota Municipal Power Agency Series B (FGIC Insured)...... 5.00 01-01-13 1,812,560 1,560 Southern Minnesota Municipal Power Agency Supply System (AMBAC Insured) 5.50 01-01-15 1,493,497 8,200 Southern Minnesota Municipal Power Agency (MBIA Insured)............... 4.75 01-01-16 7,074,140 5,770 Southern Minnesota Municipal Power Agency (FGIC Insured)............... 5.75 01-01-18 5,655,869 5,770 Southern Minnesota Municipal Power Agency (MBIA Insured)............... 5.75 01-01-18 5,655,870 4,785 Southern Minnesota Municipal Power Agency Zero Coupon(MBIA Insured).... 6.77(g) 01-01-19 1,166,774 5,000 Southern Minnesota Municipal Power Agency Zero Coupon (MBIA Insured)... 6.14(g) 01-01-21 1,078,500 67,540,722 INDUSTRIAL (5.1%): 1,000 Anoka Resource Recovery Revenue for NSP................................ 7.15 12-01-08 1,079,830 1,000 Apple Valley CDR Development Project................................... 8.00 07-01-15(c)1,000,000 2,000 Becker Pollution Control Revenue for NSP............................... 6.80 04-01-07 2,155,000 1,430 Minneapolis Community Development Agency (Fireman's Fund Insured)...... 7.63 06-01-06 1,499,713 1,990 Minnesota Public Facilities Authority.................................. 7.10 03-01-12 2,184,025 5,220 Minnesota Public Facilities Authority.................................. 6.95 03-01-13 5,755,050 4,400 Minnesota Public Facilities Authority Water Control.................... 6.25 03-01-16 4,542,428 745 Red Wing IDR K-Mart.................................................... 5.50 07-01-08 705,932 2,200 Richfield CDR for Richfield Shoppes.................................... 8.38(j) 10-01-13 2,227,500 1,300 St. Paul Port Authority Fort Road Medical/Twin Parks (Asset Guaranty Reinsurance)......................................... 7.50 09-01-02 1,415,050 22,564,528 HEALTH CARE (23.9%): 1,000 Albert Lea St. John's Lutheran Home Project............................ 8.50 11-01-19 1,094,100 2,685 Bloomington Masonic Home Care Center (AMBAC Insured)................... 5.88 07-01-22 2,661,641 2,250 Brainerd Benedictine Health Systems (Connie Lee Insured)............... 6.00 02-15-12 2,254,230 9,450 Duluth Benedictine/St. Mary's Health (Connie Lee Insured).............. 6.00 02-15-20 9,407,191 4,295 Duluth Economic Development Authority St. Luke's Hospital (Connie Lee Insured)................................................. 6.40 05-01-18 4,413,843 2,500 Edina Fairview Hospital Revenue........................................ 7.13 07-01-19 2,718,750 1,000 Faribault St. Luke's Hospital Housing Facility ........................ 9.00 02-01-21 1,000,000 500 Glencoe/McLeod County Health Care...................................... 8.50 12-01-15 527,020 1,000 Little Canada Health Care (Presbyterian Homes Guaranteed).............. 7.25 07-01-12 953,750 3,000 Minneapolis Fairview Hospital Revenue (MBIA Insured)................... 6.50 01-01-11 3,152,670 6,800 Minneapolis Fairview Hospital Revenue Series 1993A (MBIA Insured)...... 5.25 11-15-13 6,350,520 1,360 Minneapolis/St. Paul HRA HealthOne Group (MBIA Insured)................ 7.40 08-15-11 1,521,500 20,725 Robbinsdale North Memorial Medical Center (AMBAC Insured).............. 5.50% 05-15-23 19,328,964 1,500 Rochester Mayo Health Care Revenue..................................... 5.90 11-15-10 1,521,090 6,000 Rochester Mayo Health Care Revenue Series 92H.......................... 6.03 11-15-15 6,032,700 5,900 Rochester Mayo Foundation, Series 1992 D............................... 6.25 11-15-21 5,987,025 5,500 Rochester Mayo Foundation, Series 1992 I............................... 5.75 11-15-21 5,332,745 2,000 Roseville Presbyterian Homes, Inc. Health Care Proj. (Presbyterian Homes Guaranteed)...................................... 7.50 05-01-07 2,081,720 600 Spring Park Twin Birch Nursing Home (Presbyterian Homes Guaranteed).... 8.25 08-01-11 639,132 750 Springfield St. John's Lutheran Home Project........................... 8.50 11-01-19 798,637 10,250 St. Cloud Hospital Revenue (AMBAC Insured)............................. 5.30 10-01-20 9,412,985 22,220 St. Louis Park Methodist Hospital (AMBAC Insured)...................... 5.20 07-01-23 19,768,690 106,958,903 HOUSING (12.2%): 2,500 Brooklyn Center Multifamily Housing Revenue (Section 8)................ 5.90 01-01-20 2,323,150 1,000 Burnsville Coventry Court Apartments Project (FHA Insured)............. 7.50 09-01-17 1,052,510 3,370 Burnsville Multifamily - Bridgeway Apartments.......................... 7.63 02-01-24 3,411,283 235 Dakota County Housing and Redevelopment Authority (GNMA Backed)........ 8.10 03-01-16 250,390 1,000 Eagan Forest Ridge Apartments Project (FHA Insured).................... 7.50 09-01-17 1,052,510 400 Eden Prairie Multifamily Revenue, Eden Investments (FHA Insured)....... 7.40 08-01-25 418,968 1,585 Eden Prairie Multifamily Windslope Apartments (Section 8).............. 7.10 11-01-17 1,645,167 1,725 Edina Park Plaza (FHA Insured)......................................... 7.50 12-01-09 1,832,536 1,250 Edina Park Plaza (FHA Insured)......................................... 7.70 12-01-28 1,315,425 1,000 Hopkins Augustana Home Project......................................... 9.00 07-01-20 1,052,020 250 Little Canada Housing Facility 1992 (Presbyterian Homes Guaranteed).... 7.25 07-01-12 238,438 1,000 Maplewood Hazel Ridge Apartments....................................... 9.25 12-01-00(c)1,060,110 2,135 Minneapolis Community Development Agency and St. Paul Housing Redevelopment Agency Family Housing Phase II........................ 7.75 07-01-06 2,211,561 1,000 Minneapolis Housing Facility Revenue 1993 Augustana Chapel View........ 7.00 04-01-18 964,870 865 Minneapolis Housing and Redevelopment Authority........................ 7.10 12-01-10 867,024 4,000 Minneapolis Multifamily Mortgage Seward Towers (GNMA Backed)........... 7.38 12-20-30 4,180,040 1,000 Minnesota Housing Finance Agency Housing Development................... 7.80 08-01-18 1,025,090 1,500 Minnesota Housing Finance Agency Multifamily Housing................... 6.95 02-01-14 1,549,620 745 Minnesota Housing Finance Agency Multifamily Housing................... 6.95 08-01-17 761,807 1,400 Minnesota Housing Finance Agency Residential Mortgage.................. 9.28 07-01-05 1,442,112 495 Minnesota Housing Finance Agency Single Family Mortgage................ 7.65 07-01-08 533,783 460 Minnesota Housing Finance Agency Single Family Mortgage................ 7.30 07-01-09 482,641 235 Minnesota Housing Finance Agency Single Family Mortgage................ 7.30 07-01-10 245,972 1,010 Minnesota Housing Finance Agency Single Family Mortgage................ 7.10 07-01-11 1,052,430 1,140 Minnesota Housing Finance Agency Single Family Mortgage................ 7.25 07-01-16 1,163,621 2,000 Minnetonka Multifamily - Beacon Hill Project........................... 7.70 06-01-25 2,032,180 1,500 Red Wing Housing and Redevelopment Agency Jordan Tower (Section 8)..... 7.00 01-01-19 1,545,360 2,250 St. Cloud Germain Towers Housing Series 1993 (Section 8)............... 5.90 09-01-20 2,060,302 2,045 St. Cloud Housing and Redevelopment Agency Northway A&B Project (Section 8).......................................................... 7.50 12-01-18 2,122,178 3,865 St. Louis Park Multifamily Housing (GNMA Backed)....................... 5.75 01-01-29 3,559,279 1,890 St. Louis Park Single Family (GNMA Backed)............................. 7.25 04-20-23 1,972,839 1,000 St. Paul Housing and Redevelopment Agency Como Lake Project (FHA Insured)........................................................ 7.01(i) 03-01-26 930,000 80 St. Paul Housing and Redevelopment Agency Single Family Mortgage (FNMA Backed)........................................................ 6.90 12-01-11 83,300 1,885 St. Paul Housing and Redevelopment Agency Single Family Mortgage (FNMA Backed)........................................................ 6.90 12-01-21 1,942,907 1,100 Twin Valley First Mortgage (FHA Insured)............................... 8.50 02-01-11 1,113,244 2,130 Wadena Housing and Redevelopment Agency Humphrey Manor (Section 8)..... 6.00 02-01-19 1,974,553 1,130 Wells Housing and Redevelopment Agency Broadway Apartment Project (Section 8).......................................................... 7.00 01-01-19 1,150,736 2,050 Willmar Housing and Redevelopment Agency Highland Apartments (Section 8).......................................................... 5.85 06-01-19 1,927,061 54,547,017 EDUCATION (1.4%): 4,000 Minnesota Higher Education Carleton College............................ 5.75 11-01-12 3,969,320 1,000 Minnesota Higher Education St. Thomas University....................... 5.60 09-01-14 959,890 1,290 Minnesota State University Board Series 1993 C (MBIA Insured) ......... 5.50 06-30-12 1,252,590 6,181,800 CERTIFICATE OF PARTICIPATION (0.4%): 1,896 West St. Paul Commercial Mortgage (K-Mart Lessee)...................... 7.00(j) 11-01-07 1,872,452 OTHER (1.3%): 5,750 Minneapolis Community Development Agency Zero Coupon................... 6.70 (g) 09-01-09 2,542,478 510 Minneapolis Community Development Agency Common Bond Fund.............. 7.13 12-01-05 542,288 855 Minneapolis Community Development Agency Common Bond Fund.............. 7.95 12-01-11 906,300 795 Minneapolis Community Development Agency Common Bond Fund.............. 7.40 12-01-21 828,795 1,120 St. Louis Park Refunding Revenue G & K Partner, Methodist Hospital Guaranteed........................................................... 7.25 06-01-13 1,150,184 5,970,045 TOTAL INVESTMENT IN SECURITIES (cost: $432,973,439) (f) $441,840,997
See accompanying notes to investments in securities.
VOYAGEUR MINNESOTA INSURED FUND INVESTMENTS IN SECURITIES (UNAUDITED) JUNE 30, 1995 PRINCIPAL AMOUNT COUPON MARKET ($000) NAME OF ISSUER (d) RATE MATURITY VALUE (a) (PERCENTAGE OF EACH INVESTMENT CATEGORY RELATES TO TOTAL NET ASSETS.) MINNESOTA MUNICIPAL BONDS (98.2%): ESCROWED WITH U.S. GOVERNMENT BONDS (21.8%): $ 1,065 Brainerd Independent School District #181 ((FGIC Insured).............. 7.00% 06-01-01 $ 1,181,255 700 Centennial Independent School District #12 (Capital Guaranty Insured).. 7.15 02-01-00 774,298 200 Centennial Independent School District #12 (Capital Guaranty Insured).. 7.10 02-01-00 220,820 9,000 Dakota, Washington & Anoka Single Family Housing (GNMA Insured)........ 8.45 09-01-19 11,792,430 10,115 Dakota & Washington Counties HRA Single Family Mortgage Revenue........ 8.38(e) 09-01-21 13,236,590 405 Dakota & Washington Counties HRA (MBIA Insured)........................ 8.15(e) 09-01-16 512,811 500 Delano Independent School District #879 (AMBAC Insured)................ 7.25 02-01-01 557,930 3,000 Duluth Benedictine St. Mary's Health .................................. 8.38 02-15-00 3,513,900 200 Elk River Independent School District #728 (Capital Guaranty Insured).. 7.00 02-01-00 218,280 1,165 Elk River Independent School District #728 (Capital Guaranty Insured).. 6.30 02-01-02 1,255,625 450 Lake of the Woods Independent School District #390 (AMBAC Insured)..... 7.35 02-01-99 492,611 3,715 Minneapolis - St. Paul HRA HealthOne................................... 8.00 08-15-00 4,342,835 2,470 Minneapolis Special School District #1................................. 7.38 02-01-98 2,654,608 1,000 Minnesota State........................................................ 7.00 08-01-00 1,109,760 1,000 Minnesota State........................................................ 6.63 08-01-00 1,103,360 760 Minnesota State University System (MBIA Insured)....................... 7.40 06-30-99 841,062 2,700 Robbinsdale North Memorial Medical Center (AMBAC Insured).............. 7.38 01-01-99 2,994,084 520 South Washington County Independent School District #833 (FGIC Insured) 6.88 06-01-00 567,793 670 Southern Minnesota Municipal Power Agency (AMBAC Insured).............. 5.75 01-01-18 659,615 1,000 St. Cloud Multifamily Housing for St. Cloud Hospital................... 8.38 07-01-96 1,058,850 250 St. Francis Independent School District #15 (FGIC Insured)............. 7.60 02-01-98 269,092 500 St. Louis Park Methodist Hospital (AMBAC Insured)...................... 7.25 07-01-00 566,405 2,550 St. Michael - Albertville Independent School District #885 (AMBAC Insured)...................................................... 7.25 02-01-98 2,696,625 2,775 Stillwater Independent School District #834(FGIC Insured).............. 6.75 02-01-99 2,964,505 3,925 University of Minnesota Regents........................................ 7.75 02-01-96 4,087,691 500 Washington County HRA Jail Facilities (MBIA Insured).................. 7.00 02-01-02 562,830 2,000 Western Minnesota Municipal Power Agency Escrowed to Maturity.......... 6.60 01-01-10 2,196,660 2,580 Western Minnesota Municipal Power Agency (AMBAC Insured)............... 9.50 01-01-96 2,700,796 715 Western Minnesota Municipal Power Agency (MBIA Insured)................ 9.75 01-01-16 1,048,176 1,000 Wright County (Capital Guaranty Insured)............................... 7.20 12-01-99 1,102,500 67,283,797 GENERAL OBLIGATION (38.6%): 1,575 Alexandria Independent School District #206 (MBIA Insured)............. 6.30 02-01-11 1,634,330 1,675 Alexandria Independent School District #206 (MBIA Insured)............. 6.30 02-01-12 1,730,292 1,775 Alexandria Independent School District #206 (MBIA Insured)............. 6.30 02-01-13 1,830,842 8,045 Anoka County (FGIC Insured)............................................ 5.90 02-01-11 8,105,498 1,625 Anoka/Hennepin Independent School District #11 (FGIC Insured).......... 5.00 02-01-10 1,516,418 6,300 Becker (MBIA Insured).................................................. 6.25 08-01-15 6,403,320 2,760 Big Lake Independent School District #727 (AMBAC Insured).............. 5.70 02-01-13 2,733,614 1,910 Blackduck Independent School District #32 (AMBAC Insured).............. 5.60 01-01-14 1,866,376 1,030 Buffalo Independent School District #887 (Capital Guaranty Insured).... 6.10 02-01-15 1,043,750 515 Carver County HRA Jail Facility (MBIA Insured)......................... 6.40 02-01-10 537,820 550 Carver County HRA Jail Facility (MBIA Insured)......................... 6.40 02-01-11 572,473 585 Carver County HRA Jail Facility (MBIA Insured)......................... 6.40 02-01-12 606,791 625 Carver County HRA Jail Facility (MBIA Insured)......................... 6.40 02-01-13 647,519 670 Carver County HRA Jail Facility (MBIA Insured)......................... 6.40 02-01-14 693,329 1,000 Centennial Independent School District #12 (FGIC Insured).............. 4.88 02-01-09 931,770 1,135 Dakota County (AMBAC Insured).......................................... 6.40 02-01-08 1,190,331 1,000 Dakota County (AMBAC Insured).......................................... 6.45 02-01-09 1,050,000 2,500 Dakota County (AMBAC Insured).......................................... 6.45 02-01-10 2,625,000 2,500 Eden Prairie Independent School District #272 (FGIC Insured)........... 5.85 02-01-13 2,508,375 6,200 Eden Prairie Independent School District #272 (FGIC Insured)........... 5.65 02-01-13 6,106,814 5,025 Elk River Independent School District #728 (AMBAC Insured)............. 6.00 02-01-09 5,148,531 230 Ellendale-Geneva Independent School District #762 (AMBAC Insured)...... 6.00 02-01-10 233,758 245 Ellendale-Geneva Independent School District #762 (AMBAC Insured)...... 6.00 02-01-11 248,285 265 Ellendale-Geneva Independent School District #762 (AMBAC Insured)...... 6.00 02-01-12 267,825 280 Ellendale-Geneva Independent School District #762 (AMBAC Insured)...... 6.00 02-01-13 282,730 300 Ellendale-Geneva Independent School District #762 (AMBAC Insured)...... 6.00 02-01-14 302,688 320 Ellendale-Geneva Independent School District #762 (AMBAC Insured)...... 6.00 02-01-15 322,691 850 Farmington Independent School District #192 (MBIA Insured)............. 6.80 02-01-11 898,178 1,800 Hennepin County (MBIA Insured)......................................... 5.75 10-01-10 1,810,062 1,900 Hopkins Independent School District #270 (MBIA Insured)................ 4.80 02-01-10 1,732,211 2,500 Hopkins Independent School District #270 (MBIA Insured................. 4.85 02-01-12 2,249,200 3,875 Hopkins Independent School District #270 (MBIA Insured)................ 4.88 02-01-14 3,457,236 6,175 Lakeville Independent School District #194 (MBIA Insured).............. 5.13 02-01-13 5,721,199 1,100 Mankato Independent School District #77 (Capital Guaranty Insured)..... 5.20 02-01-10 1,049,147 5,935 Maplewood Independent School District #622 (MBIA Insured).............. 7.10 02-01-19 6,518,054 11,525 Maplewood Independent School District #622 (MBIA Insured).............. 7.10 02-01-25 12,612,845 475 Moorhead Independent School District #152 (AMBAC Insured).............. 5.90 02-01-10 478,938 505 Moorhead Independent School District #152 (AMBAC Insured).............. 5.90 02-01-11 508,303 540 Moorhead Independent School District #152 (AMBAC Insured).............. 5.90 02-01-12 542,894 575 Moorhead Independent School District #152 (AMBAC Insured).............. 6.00 02-01-13 579,347 220 Preston-Fountain Independent School District #233 (Capital Guaranty Insured)........................................... 5.75 03-01-12 219,514 235 Preston-Fountain Independent School District #233 (Capital Guaranty Insured)........................................... 5.75 03-01-13 234,025 250 Preston-Fountain Independent School District #233 (Capital Guaranty Insured)........................................... 5.80 03-01-14 249,892 270 Preston-Fountain Independent School District #233 (Capital Guaranty Insured)........................................... 5.80 03-01-15 269,349 2,640 Rockford Independent School District #833 (Capital Guaranty Insured)... 5.20 12-15-11 2,494,325 500 Roseau Independent School District #682 (AMBAC Insured)................ 7.00 02-01-16 539,375 1,860 Rosemount Independent School District #196 Zero Coupon (Capital Guaranty Insured)........................................... 5.80(g) 04-01-09 842,431 2,240 Rosemount Independent School District #196 Series B Zero Coupon (Capital Guaranty Insured)........................................... 5.85(g) 04-01-10 950,880 625 South St. Paul Independent School District #6 (FGIC Insured)........... 6.25 02-01-10 640,388 500 South St. Paul Independent School District #6 (FGIC Insured)........... 6.45 02-01-11 516,210 300 South St. Paul Independent School District #6 (FGIC Insured)........... 6.45 02-01-12 308,973 1,430 South Washington County Independent School District #833 (FGIC Insured) 6.13 06-01-09 1,468,353 2,720 South Washington County Independent School District #833 (FGIC Insured) 6.13 06-01-11 2,766,594 1,000 St. Cloud Independent School District #742 (FGIC Insured)............. 6.05 02-01-09 1,027,280 1,845 St. Francis Independent School District #15 (FGIC Insured)............. 5.90 04-01-10 1,865,000 1,595 Stillwater Independent School District #834 (FGIC Insured)............. 5.50 02-01-08 1,592,065 5,995 Stillwater Independent School District #834 (FGIC Insured)............. 5.50 02-01-10 5,865,508 3,960 Warroad Independent School District #690 (AMBAC Insured)............... 5.20 02-01-13 3,701,848 4,100 Willmar Independent School District #347 (AMBAC Insured)............... 6.25 02-01-15 4,185,485 119,036,279 UTILITIES (7.8%): 5,250 Bass Brook PCR for Minnesota Power & Light Company (MBIA Insured)...... 6.00 07-01-22 5,251,732 500 Marshall Utility Revenue (Capital Guaranty Insured).................... 6.45 07-01-10 527,920 100 Marshall Utility Revenue (Capital Guaranty Insured).................... 6.45 07-01-11 105,189 500 Marshall Utility Revenue (Capital Guaranty Insured).................... 6.50 07-01-12 525,895 500 Marshall Utility Revenue (Capital Guaranty Insured).................... 6.50 07-01-13 525,240 735 Moorhead Public Utilities (MBIA Insured)............................... 6.25 11-01-12 755,220 6,700 Northern Minnesota Municipal Power Agency (AMBAC Insured).............. 5.50 01-01-18 6,400,644 1,330 Southern Minnesota Municipal Power Agency (AMBAC Insured).............. 5.75 01-01-18 1,303,693 4,000 Southern Minnesota Municipal Power Agency (MBIA Insured)............... 5.75 01-01-18 3,920,880 3,300 Southern Minnesota Municipal Power Agency (FGIC Insured)............... 5.75 01-01-18 3,234,726 1,605 Western Minnesota Municipal Power Agency (MBIA Insured)................ 5.50 01-01-15 1,545,583 24,096,722 INDUSTRIAL (0.5%): 1,500 Minnesota Public Facility Authority Water Pollution Control (MBIA Insured)....................................................... 6.50 03-01-14 1,571,640 HEALTH CARE (21.4%): 1,250 Bloomington Masonic Home Care Center (AMBAC Insured)................... 5.90 07-01-09 1,270,275 1,500 Brainerd Benedictine Health (Connie Lee Insured)....................... 6.00 02-15-12 1,502,820 2,000 Brainerd Benedictine Health (Connie Lee Insured)....................... 6.00 02-15-20 1,990,940 1,630 Detroit Lakes Benedictine Health (Connie Lee Insured).................. 6.00 02-15-12 1,633,064 2,135 Detroit Lakes Benedictine Health (Connie Lee Insured).................. 6.00 02-15-19 2,125,499 3,750 Duluth for Duluth Clinic, Ltd. (AMBAC Insured)......................... 6.30 11-01-22 3,830,625 10,000 Duluth Benedictine/St. Mary's Health (Connie Lee Insured).............. 6.00 02-15-17 9,969,300 3,335 Duluth St. Luke's Hospital (Connie Lee Insured)........................ 6.40 05-01-10 3,486,743 2,000 Duluth St. Luke's Hospital (Connie Lee Insured)........................ 6.40 05-01-18 2,055,340 3,000 Minneapolis Fairview Hospital Series 91B (MBIA Insured)................ 6.50 01-01-11 3,152,670 2,750 Minneapolis Fairview Hospital Series 93A (MBIA Insured)................ 5.25 11-15-19 2,510,393 2,370 Minneapolis HRA HealthOne (MBIA Insured)............................... 7.40 08-15-11 2,651,437 19,490 Minneapolis/Saint Paul Healthspan Series 93A (AMBAC Insured)........... 5.00 11-15-13 17,610,774 3,100 Robbinsdale North Memorial Medical (AMBAC Insured)..................... 5.45 05-15-13 2,951,293 5,650 Robbinsdale North Memorial Medical (AMBAC Insured)..................... 5.50 05-15-23 5,269,416 500 St. Cloud Hospital Facility Revenue (AMBAC Insured).................... 7.00 07-01-07 549,340 2,000 St. Cloud Hospital Facility Revenue (AMBAC Insured).................... 5.25 10-01-13 1,878,940 500 St. Cloud Hospital Facility Revenue (AMBAC Insured).................... 6.75 07-01-15 531,195 1,200 St. Paul Ramsey Medical (AMBAC Insured)................................ 5.50 05-15-13 1,155,420 66,125,484 HOUSING (7.4%): 3,257 Chaska Waters Edge Multifamily Revenue (GNMA Insured).................. 7.30 01-20-30 3,501,275 6,450 Dakota County HRA Single Family Mortgage Revenue (FNMA Insured)........ 6.70 10-01-17 6,572,679 240 Dakota, Washington and Stearns Counties Single Family Mortgage Revenue (MBIA Insured)...................................................... 7.85 (e) 12-01-30 254,309 400 Minnesota Housing Finance Agency Single Family Housing (MBIA Insured).. 9.00(e)(h)08-01-18 425,048 185 Minnesota Housing Finance Agency Single Family Mortgage Revenue (MBIA Insured)...................................................... 8.50(e)(h)07-01-19 195,867 1,435 Minnesota Housing Finance Agency Single Family Mortgage Revenue (AMBAC Insured)..................................................... 7.45(e) 07-01-22 1,500,106 510 Minnesota Housing Finance Agency Single Family Mortgage Revenue (AMBAC Insured)..................................................... 7.05(e) 07-01-22 523,556 365 Minnesota Housing Finance Agency Single Family Mortgage Revenue (MBIA Insured)...................................................... 7.95(e) 07-01-22 389,802 130 Minneapolis and St. Paul Housing Finance Board Housing Project Phase V (GNMA Collateral) .................................................. 8.88(e) 11-01-18 139,525 1,380 Minneapolis and St. Paul Housing Finance Board Housing Project Phase IX (GNMA Collateral)................................................... 7.25(e) 08-01-21 1,430,356 925 Minneapolis and St. Paul Housing Finance Board Housing Project Phase IX (GNMA Collateral)................................................... 7.30(e) 08-01-31 955,146 205 Minneapolis and St. Paul Housing Finance Board Single Family Mortgage Revenue (GNMA Backed)....................................................... 8.13(e) 12-01-14 219,253 160 Minneapolis and St. Paul Housing Finance Board Single Family Mortgage Revenue (GNMA Backed)....................................................... 8.30(e) 08-01-21 169,781 4,000 St. Paul HRA Multifamily Housing (FNMA Backed)......................... 6.60 10-01-12 4,088,160 2,410 South St. Paul HRA Single Family Mortgage Series 1993 (FNMA Insured)... 5.75 09-01-20 2,260,869 22,625,732 OTHER REVENUE (0.7%): 2,000 Stearns County HRA Courthouse Project (AMBAC Insured).................. 7.00 02-01-11 2,160,000 TOTAL INVESTMENT IN SECURITIES (cost: $296,926,382) (f) $302,899,654
See accompanying notes to investments in securities.
VOYAGEUR MINNESOTA LIMITED TERM TAX FREE FUND INVESTMENTS IN SECURITIES (UNAUDITED) JUNE 30, 1995 PRINCIPAL AMOUNT COUPON MARKET ($000) NAME OF ISSUER (d) RATE MATURITY VALUE (a) (PERCENTAGE OF EACH INVESTMENT CATEGORY RELATES TO TOTAL NET ASSETS.) MINNESOTA MUNICIPAL BONDS (98.0%): ESCROWED WITH U.S. GOVERNMENT BONDS (57.0%): $ 1,205 Austin Independent School District #492 (MBIA Insured)................. 6.88% 02-01-01 $ 1,322,789 3,015 Braham Independent School District #314 (AMBAC Insured)................ 6.30 02-01-01 3,226,020 250 Duluth EDA St. Mary's.................................................. 7.80 02-15-97 263,967 250 Duluth EDA St. Mary's.................................................. 7.90 02-15-98 271,768 150 Duluth EDA St. Mary's.................................................. 7.90 02-15-99 166,538 615 Eden Valley Watkins Independent School District #463 (Capital Guaranty Insured)........................................... 6.60 02-01-02 673,093 250 Eden Valley Watkins Independent School District #463 (Capital Guaranty Insured)........................................... 6.55 02-01-02 272,920 2,570 Mankato Independent School District #77 G.O............................ 6.35 02-01-02 2,777,065 1,000 Minneapolis Hennepin Avenue Series C................................... 6.70 03-01-02 1,113,050 1,410 Minneapolis Hennepin Avenue Series C G.O............................... 6.70 03-01-02 1,569,400 400 Minneapolis/Saint Paul HealthOne....................................... 7.45 08-15-99 442,996 325 Minneapolis/Saint Paul HealthOne....................................... 7.55 08-15-00 367,396 4,000 Minnesota State........................................................ 6.25 08-01-02 4,369,120 950 Olmsted County......................................................... 6.95 02-01-01 1,056,087 900 Olmsted County......................................................... 6.90 02-01-01 998,316 1,175 Olmsted County Minnesota Resource Recovery Series A G.O................ 5.90 02-01-05 1,218,240 800 Olmsted County Solid Waste Recovery.................................... 6.85 02-01-01 885,456 1,500 Rush City Independent School District #139 (AMBAC Insured)............. 6.30 02-01-01 1,604,985 5,660 St. Cloud Hospital..................................................... 7.00 07-01-01 6,418,100 215 St. James IDR Tony Downs Food Company Project.......................... 8.00 08-01-96 223,591 3,500 St. Louis Park Methodist Hospital (AMBAC Insured)...................... 7.25 07-01-00 3,964,835 3,000 Waconia Independent School District #110 (FGIC Insured)................ 6.40 02-01-00 3,201,060 4,000 Washington County Jail................................................. 7.00 02-01-02 4,502,640 40,909,432 GENERAL OBLIGATION (10.6%): 1,000 Eden Prairie Independent School District #272.......................... 5.25 02-01-02 1,014,370 500 Edina Independent School District #273................................. 5.40 02-01-03 515,070 675 Hennepin County........................................................ 4.50 12-01-01 668,682 1,000 Hopkins Independent School District #270 (MBIA Insured)................ 4.80 02-01-03 989,350 2,530 Minnesota State........................................................ 5.30 08-01-10 2,435,884 465 Minnetonka Independent School District #276............................ 5.75 02-01-99 485,200 500 Ramsey County.......................................................... 5.30 12-01-01 516,035 750 St. Cloud Independent School District #742 (FGIC Insured).............. 5.15 02-01-00 763,710 225 Western Lake Superior Sanitation District.............................. 6.10 10-01-00 233,514 7,621,815 UTILITIES (6.2%): 2,500 Eveleth IDR for Minnesota Power & Light Company........................ 6.13% 01-01-04 2,588,875 860 Northern Minnesota Municipal Power Agency.............................. 7.20 01-01-99 927,811 1,000 Southern Minnesota Municipal Power Agency Rev (FGIC Insured)........... 5.00 01-01-08 957,000 4,473,686 INDUSTRIAL (10.9%): 260 Duluth Convention Center............................................... 5.75 12-01-97 262,821 275 Duluth Convention Center............................................... 6.00 12-01-98 280,374 1,250 Duluth Convention Center............................................... 7.00 12-01-03 1,351,150 500 Metropolitan Council Sports Facilities Metrodome Project............... 5.40 10-01-01 514,390 1,720 Minnesota Public Facilities Authority Revenue Series A................. 6.55 03-01-03 1,882,884 830 Minnesota Public Facilities Authority Water Pollution Control.......... 6.10 03-01-02 889,793 300 St. Paul HRA Minnesota Public Radio, First Bank Letter of Credit....... 6.40 06-01-98 313,581 100 St. Paul HRA Minnesota Public Radio, First Bank Letter of Credit....... 6.60 06-01-99 106,441 2,000 St. Paul Minnesota CDR Fort Rd Med (Asset Guaranty).................... 7.50 09-01-02 2,177,000 7,778,434 HOUSING (7.8%): 580 Burnsville Multifamily Housing Revenue Burnsville Apts Project, TCF Letter of Credit................................................. 7.00 09-01-99(c) 591,600 2,500 Eden Prairie Multifamily Mortgage Revenue - Tanager Creek.............. 6.90 05-01-21 2,569,875 105 Eden Prairie Multifamily Mortgage Revenue - Windslope Project.......... 5.60 11-01-95 105,224 115 Eden Prairie Multifamily Mortgage Revenue - Windslope Project.......... 5.80 11-01-96 116,018 215 Mankato Rental Housing Revenue Stadium Housing Project, Asset Guaranty Reinsurance.......................................................... 7.75 10-01-97(c) 219,313 400 Minneapolis Community Development Agency Laurel Village Project (Capital Guaranty Insured)........................................... 7.50 12-01-99(c) 408,000 980 Minnesota HFA Multifamily Mortgage Revenue Series B.................... 6.90 02-01-04 1,020,170 70 Minnesota HFA Single Family Mortgage Revenue........................... 6.30 01-01-99 72,021 500 Minnesota HFA State Assisted Home Improvement.......................... 6.65 08-01-97 512,175 5,614,396 EDUCATION (4.8%): 515 Minnesota State University Board Revenue Series 1993C (MBIA Insured)... 4.80 06-30-01 515,793 3,000 Regents of University of Minnesota..................................... 4.66 08-15-03 2,917,500 3,433,293 CERTIFICATES OF PARTICIPATION (0.1%): 77 Red Wing Pottery Project............................................... 7.75(k) 12-15-97 76,924 OTHER REVENUE (0.6%): 190 Minneapolis CDA Limited Tax Revenue - Common Bond Fund................. 7.75 06-01-96 194,231 225 Minneapolis CDA Limited Tax Revenue - Common Bond Fund................. 7.90 06-01-97 235,145 429,376 TOTAL MINNESOTA MUNICIPAL BONDS (cost: $67,731,989) $70,337,356 SHORT-TERM SECURITIES (0.1%): 14 Federated Minnesota Municipal Cash Trust (cost: $13,900)............... 3.90(b) $ 13,900 TOTAL INVESTMENT IN SECURITIES (cost: $67,745,889) (f) $70,351,256
VOYAGEUR MINNESOTA TAX FREE FUND VOYAGEUR MINNESOTA INSURED FUND VOYAGEUR MINNESOTA LIMITED TERM TAX FREE FUND NOTES TO INVESTMENTS IN SECURITIES (UNAUDITED) (a) Securities are valued by procedures described in note 1 to the financial statements. (b) Dividend yields change daily to reflect current market conditions. Rate shown is the quoted yield as of June 30, 1995. (c) The maturity dates for these issues represent mandatory puts or dates on which, in the opinion of the Fund's investment advisor, the issue is likely to be called. (d) Investments in bonds, by rating category as a percentage of total bonds, are as follows:
Non- Aaa/AAA Aa/AA A/A Baa/BBB rated Total Minnesota Tax Free Fund..................... 64% 11% 18% 2% 5% 100% Minnesota Insured Fund...................... 100% -- -- -- -- 100% Minnesota Limited Term Tax Free Fund........ 67% 14% 8% 7% 4% 100%
(e) These securities are subject to the Alternative Minimum Tax. (f) Also represents the cost of securities for federal income tax purposes and the aggregate gross unrealized appreciation and depreciation in securities based on these costs were as follows:
Gross Gross Net Unrealized Unrealized Unrealized Appreciation Depreciation Appreciation Minnesota Tax Free Fund..................... $13,334,218 $(4,466,660) $8,867,558 Minnesota Insured Tax Free Fund............. 8,158,815 (2,185,543) 5,973,272 Minnesota Limited Term Tax Free Fund........ 2,693,696 (88,329) 2,605,367
(g) The interest rate disclosed for zero coupon issues represents the effective yield on the date of acquisition. (h) Identifies issue covered under portfolio insurance purchased by the Fund. (i) At June 30, 1995 the principal amount of issue in default amounted to $1,000,000 for Minnesota Tax Free Fund. However, this issue in default as to timely receipt of principal are current as to interest including interest at the stated rate since the maturity dates. This issue is being valued based on procedures selected in good faith by the Board of Directors. (j) Minnesota Tax Free Fund entered into the following restricted security transactions: on September 2, 1986, the Fund purchased $2,148,650 par of West St. Paul Commercial Mortgage with a cost basis of $1,891,822, and on April 20, 1994, the Fund purchased $2,200,000 par of Richfield Commercial Development Revenue for Richfield Shoppes with a cost basis of $2,200,000. These private placements represent all of the restricted illiquid securities owned by the Fund are equal to 0.9% of net assets. (k) Minnesota Limited Term Tax Free Fund entered into the following restricted security transactions: on October 2, 1985 the Fund purchased $165,531 par of Red Wing Pottery Project with a cost basis of $165,531. This private placement represents all of the restricted illiquid securities owned by the Fund and is equal to 0.1% of net assets. INVESTMENT ADVISER, TRANSFER AGENT, DIVIDEND DISBURSING AGENT AND ACCOUNTING SERVICES AGENT Voyageur Fund Managers, Inc. 90 South Seventh Street, Suite 4400 Minneapolis, Minnesota 55402 UNDERWRITER Voyageur Fund Distributors, Inc. 90 South Seventh Street, Suite 4400 Minneapolis, Minnesota 55402 CUSTODIAN Norwest Bank Minnesota, N.A. Sixth Street & Marquette Avenue Minneapolis, Minnesota 55479 GENERAL COUNSEL Dorsey & Whitney P.L.L.P. Minneapolis, Minnesota 55402 AUDITORS KPMG Peat Marwick LLP Minneapolis, Minnesota 55402 VOYAGEUR MINNESOTA TAX FREE FUND MINNESOTA INSURED FUND MINNESOTA LIMITED TERM TAX FREE FUND SEMI-ANNUAL REPORT Dated June 30, 1995 INVESTMENT ADVISER, TRANSFER AGENT, DIVIDEND DISBURSING AGENT AND ACCOUNTING SERVICES AGENT Voyageur Fund Managers, Inc. 90 South Seventh Street, Suite 4400 Minneapolis, Minnesota 55402 UNDERWRITER Voyageur Fund Distributors, Inc. 90 South Seventh Street, Suite 4400 Minneapolis, Minnesota 55402 CUSTODIAN Norwest Bank Minnesota, N.A. Sixth Street & Marquette Avenue Minneapolis, Minnesota 55479 GENERAL COUNSEL Dorsey & Whitney P.L.L.P. Minneapolis, Minnesota 55402 AUDITORS KPMG Peat Marwick LLP Minneapolis, Minnesota 55402 BULK RATE U.S. Postage PAID Minneapolis, MN. Permit #3322 VOYAGEUR 90 SOUTH SEVENTH STREET, SUITE 4400 MINNEAPOLIS, MINNESOTA 55402.4115 -----END PRIVACY-ENHANCED MESSAGE-----