-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, RfIoakHKrhrgIh7zoKdq1G7QzTuf0Ig5Xk8yYs3B0z+TLwwF729Cd3gtV4FHp9sB 5CfGZayS0O1wzCVr2ybzFA== 0000897101-96-000761.txt : 19960830 0000897101-96-000761.hdr.sgml : 19960830 ACCESSION NUMBER: 0000897101-96-000761 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19960630 FILED AS OF DATE: 19960829 SROS: NONE 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: 96623477 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 INTERMEDIATE TAX FREE FUNDS INC CENTRAL INDEX KEY: 0000773675 STANDARD INDUSTRIAL CLASSIFICATION: [] FISCAL YEAR END: 0228 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-04364 FILM NUMBER: 96623478 BUSINESS ADDRESS: STREET 1: 90 SOUTH SEVENTH STREET STREET 2: SUITE 4400 CITY: MINNEAPOLIS STATE: MN ZIP: 55402 BUSINESS PHONE: 6123718684 MAIL ADDRESS: STREET 1: 90 SOUTH SEVENTH STREET STREET 2: SUITE 4400 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 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: 96623479 BUSINESS ADDRESS: STREET 1: 90 SOUTH SEVENTH STREET STREET 2: SUITE 4400 CITY: MINNEAPOLIS STATE: MN ZIP: 55402 BUSINESS PHONE: 6123718684 MAIL ADDRESS: STREET 1: 90 SOUTH SEVENTH STREET STREET 2: SUITE 4400 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 FILER: COMPANY DATA: COMPANY CONFORMED NAME: VOYAGEUR MUTUAL FUNDS INC CENTRAL INDEX KEY: 0000906236 STANDARD INDUSTRIAL CLASSIFICATION: UNKNOWN SIC - 0000 [0000] IRS NUMBER: 411756458 STATE OF INCORPORATION: MN FISCAL YEAR END: 0831 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-07742 FILM NUMBER: 96623480 BUSINESS ADDRESS: STREET 1: 90 SOUTH SEVENTH ST STREET 2: STE 4400 CITY: MINNEAPOLIS STATE: MN ZIP: 55402-4115 BUSINESS PHONE: 6123767129 MAIL ADDRESS: STREET 1: 90 SOUTH SEVENTH ST STREET 2: STE 4400 CITY: MINNEAPOLIS STATE: MN ZIP: 55402-4115 N-30D 1 [LOGO] VOYAGEUR YOUR TAX SENSITIVE INVESTMENT MANAGER MINNESOTA HIGH YIELD MUNICIPAL BOND FUND MINNESOTA TAX FREE FUND MINNESOTA INSURED FUND MINNESOTA LIMITED TERM TAX FREE FUND SEMI-ANNUAL REPORT DATED JUNE 30, 1996 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 HIGH YIELD FUNDS seek high current income free from both Federal income taxes and state income taxes (where applicable). The Funds invest in medium and lower grade municipal bonds. Voyageur MINNESOTA High Yield Municipal Bond Fund 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 MINNESOTA Tax Free Fund Voyageur CALIFORNIA Tax Free Fund Voyageur NATIONAL 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 KANSAS 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 NATIONAL 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 GROWTH Stock Fund Voyageur GROWTH AND INCOME Fund Voyageur INTERNATIONAL Equity 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). LETTER FROM THE PRESIDENT [PHOTO] JOHN G. TAFT PRESIDENT Dear Shareholder: Since our last report, the headline story in the municipal bond market has been the demise of a radical tax reform. One of the best ways to illustrate this demise is to look at how municipal bonds have traded in relation to Treasury securities. At the height of the tax reform scare -- when Steve Forbes was campaigning on his Flat Tax platform in January 1996 -- long municipal securities were trading at a very cheap 90% of Treasuries. At the time of this report, market fears have abated and municipal bonds are trading at a more traditional 81%. We believe the issue of reforming the tax code is far from thoroughly closed. And it is likely -- in this a U.S. presidential election year -- that we may see renewed discussions about less radical tax reforms. However, as is often the case in the financial markets, we believe these times of short-term volatility and uncertainty represent good opportunities for long-term investors. At Voyageur, we continue to stress the importance of maintaining a long-term view -- in both the investment horizons of our shareholders and in our approach to purchasing securities for the Voyageur Tax Free Funds. In order to select the best long-term securities for the funds, we favor purchasing negotiated new municipal issues over those in the secondary or competitive market. Unlike the taxable bond market where the structure of new bond issues are frequently predetermined and fixed, we have more flexibility and negotiating power in determining how a municipal bond issue will be structured. In many cases, our credit research analysts -- who are experienced experts in the area of municipal bond transactions -- work closely with municipal bond issuers to determine the appropriate structure for new bond issues. Our analysts' intimate knowledge of what's in the market and their ability to actually dissect individual municipal securities helps us to determine appropriate prices that accurately reflect an issuer's strength and value while assisting us in protecting our shareholders' interests. They also help us pinpoint rising and falling stars -- bonds whose credits may be upgraded or downgraded -- in the municipal market. We remain committed to providing our clients with the best investment products and services available in today's financial markets. The Voyageur Tax Free Funds allow you access to a wide variety of national and state-specific municipal bonds funds, all of which are actively managed to meet their individual fund objectives. As part of our commitment to you, we have also redesigned our shareholder reports to provide you with more in-depth information about your Voyageur fund investments in an easier-to-read format. We welcome any comments you may have about these changes and encourage you to call our Voyageur Shareholder Services at 800.543.3863. If at any time you have questions about your Voyageur fund investments, please contact your personal financial advisor or Voyageur Shareholder Services. Our Voyageur Shareholder Services 800 number -- known as Voyageur On Call(TM) -- allows you 24-hour access, seven days a week to an automated voice response service with shareholder services representatives available from 8 a.m. to 5 p.m. Central Standard Time. We appreciate your continued patronage of Voyageur Funds and look forward to working with you and your financial advisors in creating products and services designed to bring you closer to your investment goals. Sincerely, /s/ John G. Taft John G. Taft President Minnesota High Yield Municipal Bond Fund Minnesota Tax Free Fund Minnesota Insured Fund Minnesota Limited Term Tax Free Fund VOYAGEUR MINNESOTA HIGH YIELD MUNICIPAL BOND FUND [PHOTO] ELIZABETH H. HOWELL IS THE SENIOR MUNICIPAL BOND MANAGER FOR THE VOYAGEUR MINNESOTA HIGH YIELD MUNICIPAL BOND FUND. MS. HOWELL HAS MORE THAN 10 YEAR OF INVESTMENT INDUSTRY EXPERIENCE. The newest addition to Voyageur Minnesota Tax Free Fund offerings is the Voyageur Minnesota Municipal High Yield Bond Fund, which started operations in early June 1996. In the Voyageur Minnesota High Yield Municipal Bond Fund, we remain committed to building a diversified portfolio of high-yield bonds containing a wide range of issuers, sectors, maturities and quality rankings. Unlike its more conservative high-quality siblings, the Voyageur Minnesota High Yield Municipal Bond Fund invests in high yield bonds in order to offer its shareholders the opportunity to earn higher dividends. Because the credit risk of high yield bonds is more speculative, these issues generally pay a higher interest rate. Such bonds are often subject to more price volatility than higher quality bonds. VOYAGEUR MINNESOTA TAX FREE FUNDS [PHOTO] ELIZABETH H. HOWELL IS THE SENIOR MUNICIPAL BOND MANAGER FOR THE VOYAGEUR MINNESOTA TAX FREE FUND, THE VOYAGEUR MINNESOTA INSURED FUND, AND THE VOYAGEUR MINNESOTA LIMITED TERM TAX FREE FUND. MS. HOWELL HAS MORE THAN 10 YEARS OF INVESTMENT INDUSTRY EXPERIENCE. For the six months ended June 30, 1996, the total returns at net asset value (NAV) for the Class A shares of Voyageur Minnesota Tax Free Funds were as follows: Voyageur Minnesota Limited Term Tax Free Fund 0.02%; Voyageur Minnesota Insured Fund -1.08%; and Voyageur Minnesota Tax Free Fund -1.66%.* Within these Funds, we maintained our long-term outlook for lower interest rates by keeping our Funds' durations long as compared to the industry average. Although this caused the Funds' performance to lag somewhat when interest rates rose, we believe the worst is over and are expecting to see a turnaround in the bond market later this year or early 1997. All other commentary is applicable for the Voyageur Minnesota Limited Term, Voyageur Minnesota Insured and the Voyageur Minnesota Tax Free Funds only. AREAS OF OPPORTUNITY In the Funds, we remain committed to purchasing municipal bonds that our credit research staff has identified as having investment grade credit ratings -- with the Voyageur Minnesota Insured Fund invested in insured municipal securities.** During the past six months, we continued to search for areas or sectors where we could add value to the Funds' portfolios. One such area has been to include investments that have added income to the portfolios. Although we still maintain our commitment to total return, we believe this addition of income will help dampen the effects of market volatility while allowing our shareholders to benefit from higher income streams. In order to attempt to protect our shareholders' current income level for a longer period of time, we have continued to take advantage of opportunities to extend the Funds' call protection. This focus on establishing extended call protection has led to the majority of Funds in Voyageur Minnesota Limited Term Tax Free Fund to be noncallable. It has also led to the Voyageur Minnesota Insured Fund and Voyageur Minnesota Tax Free Fund to have an average call protection of approximately eight years. OUTLOOK FOR THE MUNICIPAL MARKET The U.S. economy is still showing signs of moderate growth with moderate inflation -- a trend we expect to see continue for the remainder of the year. Our outlook for the municipal market continues to be favorable, and we expect interest rates to decline over the long term. This has caused us to position the Funds to take advantage of this trend -- staggering the length of duration in each of the Voyageur Minnesota Tax Free Funds (with the exception of the Voyageur High Yield Municipal Bond Fund) in order to maintain our cover the yield curve strategy. *Past performance is no guarantee of future results. **Insurance pertains only to the timely payment of principal and interest by the securities in the fund's portfolio. The value of the insured securities and the Fund itself will fluctuate due to changing market conditions. No representation is made as to any insurer's ability to meet its commitment.
THE VOYAGEUR FUNDS STATEMENTS OF ASSETS AND LIABILITIES (UNAUDITED) JUNE 30, 1996 - ---------------------------------------------------------------------------------------------------------------------------------- VOYAGEUR VOYAGEUR VOYAGEUR VOYAGEUR MINNESOTA MINNESOTA MINNESOTA MINNESOTA HIGH YIELD TAX FREE INSURED LIMITED TERM FUND FUND FUND TAX FREE FUND ------------- ------------- ------------- ------------- ASSETS Investments in securities, at market value (note 1) (identified costs, $1,065,278, $424,335,368, $285,371,590 and $65,668,620, respectively) ......... $ 1,079,502 $ 435,275,077 $ 293,065,384 $ 67,675,097 Cash in bank on demand deposit ............................ 986,372 58,762 -- 260,849 Accrued interest receivable ............................... 6,806 8,339,119 6,347,986 1,485,353 Receivable for investment securities sold ................. -- -- 2,070,964 -- Receivable for Fund shares sold ........................... 86,192 161,972 4,863 778 Organizational costs (note 1) ............................. 19,667 -- -- -- ------------- ------------- ------------- ------------- Total assets ........................................... 2,178,539 443,834,930 301,489,197 69,422,077 ------------- ------------- ------------- ------------- LIABILITIES Bank overdraft ............................................ -- -- 2,408,934 -- Dividends payable to shareholders ......................... 825 494,482 318,471 70,723 Payable for investment securities purchased ............... 782,753 2,350,783 1,757,152 -- Payable for Fund shares redeemed .......................... -- 245,133 115,364 25,258 Other accrued expenses .................................... 19,793 316,025 185,109 58,435 ------------- ------------- ------------- ------------- Total liabilities ...................................... 803,371 3,406,423 4,785,030 154,416 ------------- ------------- ------------- ------------- NET ASSETS APPLICABLE TO OUTSTANDING CAPITAL STOCK ........ $ 1,375,168 $ 440,428,507 $ 296,704,167 $ 69,267,661 ============= ============= ============= ============= Represented by: Capital Stock - $.01 par value (note 1) ................ $ 1,367 $ 363,759 $ 286,520 $ 63,670 Additional paid-in capital ............................. 1,360,180 432,760,607 296,664,585 68,222,542 Distributions in excess of net investment income ....... (603) (462,398) (298,489) (72,822) Accumulated net realized loss on investments (note 1) .. -- (3,173,170) (7,642,243) (952,206) Unrealized appreciation of investments ................. 14,224 10,939,709 7,693,794 2,006,477 ------------- ------------- ------------- ------------- TOTAL NET ASSETS .................................... $ 1,375,168 $ 440,428,507 $ 296,704,167 $ 69,267,661 ============= ============= ============= ============= Net assets applicable to outstanding Class A shares ....... $ 1,046,143 $ 433,371,979 $ 287,566,520 $ 68,199,384 ============= ============= ============= ============= Net assets applicable to outstanding Class B shares ....... $ 204,475 $ 4,235,091 $ 5,887,283 $ 141,756 ============= ============= ============= ============= Net assets applicable to outstanding Class C shares ....... $ 124,550 $ 2,821,437 $ 3,250,364 $ 926,521 ============= ============= ============= ============= SHARES OUTSTANDING AND NET ASSET VALUE PER SHARE Class A - Shares of Capital Stock outstanding: 104,039; 35,793,206; 27,769,192 and 6,268,846, respectively (note 4) ............................. $ 10.06 $ 12.11 $ 10.36 $ 10.88 ============= ============= ============= ============= Class B - Shares of Capital Stock outstanding: 20,323; 349,787; 569,030 and 13,022, respectively (note 4) ............................. $ 10.06 $ 12.11 $ 10.35 $ 10.89 ============= ============= ============= ============= Class C - Shares of Capital Stock outstanding: 12,374; 232,913; 313,817 and 85,150, respectively (note 4) ............................. $ 10.07 $ 12.11 $ 10.36 $ 10.88 ============= ============= ============= =============
See accompanying notes to financial statements.
THE VOYAGEUR FUNDS STATEMENTS OF OPERATIONS (UNAUDITED) PERIOD ENDED JUNE 30, 1996 - ----------------------------------------------------------------------------------------------------------------------------------- VOYAGEUR VOYAGEUR VOYAGEUR VOYAGEUR MINNESOTA MINNESOTA MINNESOTA MINNESOTA HIGH YIELD TAX FREE INSURED LIMITED TERM FUND* FUND FUND TAX FREE FUND ------------ ------------ ------------ ------------ Investment income: Interest .............................................. $ 850 $ 13,413,448 $ 8,825,773 $ 1,969,219 ------------ ------------ ------------ ------------ Expenses (note 3): Investment advisory and management fee ................ 134 1,117,794 760,565 142,887 Dividend-disbursing, administrative and accounting services fees ...................................... -- 228,448 161,679 48,103 Printing, postage and supplies ........................ -- 40,680 25,189 7,290 Audit and accounting fees ............................. -- 15,299 8,885 12,623 Legal fees ............................................ -- 4,105 1,614 496 Distribution fees - Class A ........................... 27 551,120 369,538 88,322 Distribution fees - Class B ........................... 63 18,287 26,575 282 Distribution fees - Class C ........................... 30 12,862 16,442 3,647 Directors' fees ....................................... -- 11,396 7,960 1,990 Registration fees ..................................... -- 8,516 6,694 5,846 Custodian fees ........................................ -- 68,335 34,089 13,161 Amortization of organizational costs .................. 333 -- -- -- Other ................................................. -- 3,369 2,680 1,227 ------------ ------------ ------------ ------------ Total expenses ..................................... 587 2,080,211 1,421,910 325,874 Less: Expenses waived or absorbed .................... (363) (3,880) (5,638) (58) ------------ ------------ ------------ ------------ Net expenses before earnings credits on uninvested cash 224 2,076,331 1,416,272 325,816 Less: Earnings credits on uninvested cash ............ -- -- (4,139) -- ------------ ------------ ------------ Total net expenses ................................. 224 2,076,331 1,412,133 325,816 ------------ ------------ ------------ ------------ Investment income - net ............................ 626 11,337,117 7,413,640 1,643,403 ------------ ------------ ------------ ------------ Realized and unrealized gain (loss) on investments: Realized gain (loss) on security transactions (note 2) -- (152,500) 27,263 (104,799) Net change in unrealized appreciation or depreciation of investments .................................... 14,224 (18,341,167) (10,787,824) (1,493,477) ------------ ------------ ------------ ------------ Net gain (loss) on investments ................... 14,224 (18,493,667) (10,760,561) (1,598,276) ------------ ------------ ------------ ------------ NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS ...................................... $ 14,850 $ (7,156,550) $ (3,346,921) $ 45,127 ============ ============ ============ ============
* Period from June 4, 1996 (commencement of operations) to June 30, 1996. See accompanying notes to financial statements.
THE VOYAGEUR FUNDS STATEMENTS OF CHANGES IN NET ASSETS (UNAUDITED) - ----------------------------------------------------------------------------------------------------------------------------------- VOYAGEUR MINNESOTA VOYAGEUR MINNESOTA HIGH YIELD FUND TAX FREE FUND --------------- ------------- PERIOD FROM SIX MONTHS YEAR JUNE 4, 1996* TO ENDED ENDED JUNE 30, 1996 JUNE 30, 1996 DECEMBER 31, Operations: (UNAUDITED) (UNAUDITED) 1995 ------------- ------------- ------------- Investment income - net ................................................. $ 626 $ 11,337,117 $ 22,782,919 Realized gain (loss) on investments - net ............................... -- (152,500) (2,635,025) Net change in unrealized appreciation or depreciation of investments .......................................................... 14,224 (18,341,167) 50,741,624 ------------- ------------- ------------- Net increase (decrease) in net assets resulting from operations ........ 14,850 (7,156,550) 70,889,518 ------------- ------------- ------------- Distributions to shareholders from: Investment income - net: Class A .............................................................. (340) (11,268,515) (23,374,008) Class B .............................................................. (212) (84,016) (37,979) Class C .............................................................. (74) (55,749) (79,332) Distributions in excess of net investment income: Class A .............................................................. (455) (458,141) -- Class B .............................................................. (89) (1,875) -- Class C .............................................................. (59) (2,382) -- ------------- ------------- ------------- Total distributions ................................................ (1,229) (11,870,678) (23,491,319) ------------- ------------- ------------- Capital share transactions (note 4): Proceeds from sale of shares: Class A (note 3) ..................................................... 1,038,493 18,334,305 44,321,375 Class B .............................................................. 199,720 1,798,717 2,627,889 Class C .............................................................. 123,018 1,078,443 1,563,516 Netasset value of shares issued in reinvestment of net investment income, distributions in excess of net investment income and realized gain distributions: Class A ......................................................... 242 8,509,412 15,300,068 Class B ......................................................... 74 78,950 26,876 Class C ......................................................... -- 51,722 54,270 Payments for redemption of shares: Class A .............................................................. -- (29,923,889) (58,049,869) Class B (note 3) ..................................................... -- (192,433) (26,205) Class C (note 3) ..................................................... -- (518,636) (534,040) ------------- ------------- ------------- Increase (decrease) in net assets from capital share transactions ....... 1,361,547 (783,409) 5,283,880 ------------- ------------- ------------- Total increase (decrease) in net assets .............................. 1,375,168 (19,810,637) 52,682,079 Net assets at beginning of period .......................................... -- 460,239,144 407,557,065 ------------- ------------- ------------- Net assets at end of period (including undistributed or (distributions in excess of) net investment income of $(603); $(462,398) and $71,163; $(298,489) and $4,200; and $(72,822) and $47; respectively) ........................................................ $ 1,375,168 $ 440,428,507 $ 460,239,144 ============= ============= =============
* Commencement of operations. See accompanying notes to financial statements.
THE VOYAGEUR FUNDS - --------------------------------------------------------------------------------------------------------- VOYAGEUR MINNESOTA VOYAGEUR MINNESOTA INSURED FUND LIMITED TERM TAX FREE FUND ------------ -------------------------- SIX MONTHS YEAR SIX MONTHS YEAR ENDED ENDED ENDED ENDED JUNE 30, 1996 DECEMBER 31, JUNE 30, 1996 DECEMBER 31, (UNAUDITED) 1995 (UNAUDITED) 1995 ------------- -------------- ------------ ------------- $ 7,413,640 $ 15,149,888 $ 1,643,403 $ 3,437,702 27,263 (7,669,506) (104,799) (74,374) (10,787,824) 41,831,089 (1,493,477) 4,553,348 ------------- -------------- ------------ ------------- (3,346,921) 49,311,471 45,127 7,916,676 ------------- -------------- ------------ ------------- (7,234,044) (15,642,473) (1,628,116) (3,447,763) (116,256) (79,826) (1,152) (311) (67,540) (108,180) (14,182) (19,464) (292,072) -- (72,424) -- (3,332) -- (8) -- (3,085) -- (390) -- ------------- -------------- ------------ ------------- (7,716,329) (15,830,479) (1,716,272) (3,467,538) ------------- -------------- ------------ ------------- 9,565,925 29,732,432 4,466,200 9,137,036 1,356,766 4,508,245 114,784 27,011 621,348 1,728,614 497,088 567,207 5,985,162 11,225,363 1,316,218 2,503,920 109,608 59,610 852 72 68,013 89,137 15,318 16,872 (24,964,387) (50,442,997) (8,333,494) (27,826,010) (45,906) (57,331) -- (11) (484,183) (425,889) (264,370) (257,614) ------------- -------------- ------------ ------------- (7,787,654) (3,582,816) (2,187,404) (15,831,517) ------------- -------------- ------------ ------------- (18,850,904) 29,898,176 (3,858,549) (11,382,379) 315,555,071 285,656,895 73,126,210 84,508,589 ------------- -------------- ------------ ------------- $296,704,167 $315,555,071 $69,267,661 $73,126,210 ============ ============ =========== ===========
See accompanying notes to financial statements. THE VOYAGEUR FUNDS NOTES TO FINANCIAL STATEMENTS (UNAUDITED) - -------------------------------------------------------------------------------- (1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Voyageur Minnesota High Yield Municipal Bond Fund (Minnesota High Yield Fund) a fund within Yoyageur Mutual Funds, Inc.; 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 open-end management investment companies. Minnesota High Yield Fund is registered as a non-diversified fund. Minnesota Tax Free Fund, Minnesota Insured Fund and Minnesota Limited Term Tax Free Fund are registered as diversified funds. Minnesota High Yield Fund seeks high current income free from both federal and state income taxes by investing in medium- and lower-grade municipal bonds. The Minnesota Tax Free Fund seeks high current income free from both federal and state income taxes by investing in investment grade municipal bonds. Minnesota Insured Fund seeks high current income free from both federal and state income taxes with the added safety of an insured portfolio by investing in insured municipal bonds. Minnesota Limited Term Tax Free Fund seeks to preserve original investment principal while providing income free from both federal and state income taxes by investing in intermediate term investment grade municipal bonds. 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 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. 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 Mutual Funds, Inc., 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. The significant accounting policies followed by the Funds are summarized as follows: USE OF ESTIMATES The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of net increases (decreases) in net assets from operations during the reporting period. Actual results could differ from those estimates. 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 limited geographical areas, and therefore may have more credit risk related to the economic conditions of these areas 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. ORGANIZATIONAL COSTS Organizational costs are being amortized over 60 months on a straight line basis for Minnesota High Yield Fund. 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, 1995, Minnesota Tax Free Fund had a capital loss carryover of $3,020,670 that will expire in 2003, Minnesota Insured Fund had a capital loss carryover of $7,226,007 that will expire in 2003 and 2004 and Minnesota Limited Term Tax Free Fund had a capital loss carryover of $847,407 that will expire in 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 $1,065,278 and $0 for Minnesota High Yield Fund; $86,581,722 and $88,977,903 for Minnesota Tax Free Fund; $27,662,691 and $31,726,018 for Minnesota Insured Fund and $7,970,026 and $11,570,959 for Minnesota Limited Term Tax Free Fund, respectively, during the period ended June 30, 1996. (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 .65% for Minnesota High Yield Fund, .50% for Minnesota Tax Free Fund and Minnesota Insured Fund and .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 $378 for the six months ended June 30, 1996. 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. During the period ended June 30, 1996, Voyageur absorbed $223 pursuant to the contractual 1% expense limitation and, excluding waiver of distribution fees, voluntarily absorbed $140 for Minnesota High Yield Fund. 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 period ended June 30, 1996, Fund Distributors voluntarily waived Class B distribution fees of $3,880 for Minnesota Tax Free Fund, $5,638 for Minnesota Insured Fund and $58 for Minnesota Limited Term Tax Free Fund. Minnesota Insured Fund earned $4,139 in credits on uninvested cash balances held at the custodian during the six months ended June 30, 1996 which were used to reduce certain fees for various custodial, pricing and accounting services provided by the custodian bank. Sales charges paid by Class A shareholders were $4,860 for Minnesota High Yield Fund, $468,771 for Minnesota Tax Free Fund, $272,753 for Minnesota Insured Fund,and $39,837 for Minnesota Limited Term Tax Free Fund. Of these amounts, Fund Distributors received $648 for Minnesota High Yield Fund, $60,079 for Minnesota Tax Free Fund, $36,748 for Minnesota Insured Fund and $7,110 for Minnesota Limited Term Tax Free Fund. Contingent deferred sales charges paid by Class B shareholders were $2,425 for Minnesota Tax Free Fund and $1,698 for Minnesota Insured Fund. Contingent deferred sales charges paid by Class C shareholders were $14 for Minnesota Tax Free Fund and $100 for Minnesota Insured Fund. (4) SHARE TRANSACTIONS Transactions in shares of capital stock during the periods shown were as follows:
MINNESOTA HIGH YIELD FUND ------------------------- ---------------------------------------------------------------------------------- CLASS A CLASS B CLASS C ---------------- ----------------- ----------------- PERIOD FROM PERIOD FROM PERIOD FROM JUNE 4, 1996* TO JUNE 12, 1996* TO JUNE 7, 1996* TO JUNE 30, 1996 JUNE 30, 1996 JUNE 30, 1996 (UNAUDITED) (UNAUDITED) (UNAUDITED) ---------------------------------------------------------------------------------- Shares sold............................ 104,015 20,316 12,374 Shares issued for reinvested distributions............ 24 7 -- Shares redeemed........................ -- -- -- --------- -------- --------- Increase in shares outstanding......... 104,039 20,323 12,374 ========= ======== =========
* Commencement of operations.
MINNESOTA TAX FREE FUND -------------------------------------------------------------------------------------------- CLASS A CLASS B CLASS C ----------------------------- ----------------------------------- -------------------------- SIX MONTHS YEAR SIX MONTHS PERIOD FROM SIX MONTHS YEAR ENDED ENDED ENDED MARCH 11, 1995* ENDED ENDED JUNE 30, 1996 DECEMBER 31, JUNE 30, 1996 TO DECEMBER 31, JUNE 30, 1996 DECEMBER 31, (UNAUDITED) 1995 (UNAUDITED) 1995 (UNAUDITED) 1995 ----------------------------- ----------------------------------- --------------- ---------- Shares sold....................... 1,489,062 3,694,812 145,155 213,827 87,415 129,328 Shares issued for reinvested distributions....... 690,457 1,273,503 6,424 2,195 4,201 4,487 Shares redeemed................... (2,440,786) (4,792,882) (15,707) (2,107) (42,303) (43,826) ----------- ----------- ---------- ----------- --------- --------- Increase (decrease) in shares outstanding............. (261,267) 175,433 135,872 213,915 49,313 89,989 =========== ============ ========== ========== ========== ========
MINNESOTA INSURED FUND ----------------------------------------------------------------------------------------------- CLASS A CLASS B CLASS C ---------------------------- --------------------------------- ----------------------------- SIX MONTHS YEAR SIX MONTHS PERIOD FROM SIX MONTHS YEAR ENDED ENDED ENDED MARCH 7, 1995* ENDED ENDED JUNE 30, 1996 DECEMBER 31, JUNE 30, 1996 TO DECEMBER 31, JUNE 30, 1996 DECEMBER 31, (UNAUDITED) 1995 (UNAUDITED) 1995 (UNAUDITED) 1995 ---------------------------- --------------------------------- ------------------------------ Shares sold....................... 909,338 2,902,567 128,896 433,849 58,919 168,194 Shares issued for reinvested distributions....... 568,931 1,094,655 10,443 5,709 6,470 8,646 Shares redeemed................... (2,379,045) (4,895,900) (4,430) (5,437) (46,539) (40,592) ----------- ----------- ----------- ----------- ---------- ---------- Increase (decrease) in shares outstanding............. (900,776) (898,678) 134,909 434,121 18,850 136,248 =========== =========== =========== =========== ========== ==========
MINNESOTA LIMITED TERM TAX FREE FUND ------------------------------------------------------------------------------------------------- CLASS A CLASS B CLASS C ---------------------------- --------------------------------- ------------------------------- SIX MONTHS YEAR SIX MONTHS PERIOD FROM SIX MONTHS YEAR ENDED ENDED ENDED AUGUST 5, 1995* ENDED ENDED JUNE 30, 1996 DECEMBER 31, JUNE 30, 1996 TO DECEMBER 31, JUNE 30, 1996 DECEMBER 31, (UNAUDITED) 1995 (UNAUDITED) 1995 (UNAUDITED) 1995 ---------------------------------------------------------------------------------------------- Shares sold....................... 404,886 834,844 10,500 2,438 45,198 51,965 Shares issued for reinvested distributions....... 119,439 230,452 78 7 1,392 1,545 Shares redeemed................... (757,716) (2,579,455) -- (1) (23,784) (23,639) --------- ----------- ------------- -------- ---------- ---------- Increase (decrease) in shares outstanding............. (233,391) (1,514,159) 10,578 2,444 22,806 29,871 ============ ============= ============= ======== =========== ==========
* 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 HIGH YIELD FUND ---------------------------------------------------- CLASS A CLASS B CLASS C ---------------- ---------------- ---------------- PERIOD FROM PERIOD FROM PERIOD FROM JUNE 4, 1996(D) JUNE 12, 1996(D) JUNE 7, 1996(D) TO JUNE 30, 1996 TO JUNE 30, 1996 TO JUNE 30, 1996 (UNAUDITED) (UNAUDITED) (UNAUDITED) ---------------- ---------------- ---------------- Net asset value: Beginning of period................................ $10.00 $ 9.78 $ 9.99 ------ ------ ------ Operations: Net investment income.............................. .05 .03 .03 Net realized and unrealized gain on investments.... .06 .28 .08 ------ ------ ------ Total from operations.......................... .11 .31 .11 ------ ------ ------ Distributions to shareholders: From net investment income (a)..................... (.05) (.03) (.03) ------ ------ ------ Net asset value: End of period...................................... $10.06 $10.06 $10.07 ====== ====== ====== Total investment return (b)........................... .94% 3.04% 1.05% Net assets at end of period (000's omitted)........... $1,046 $204 $125 Ratios: Ratio of expenses to average daily net assets (f)..................... .63%(e) 1.33%(e) 1.26%(e) Ratio of net investment income to average daily net assets...................... 2.39%(e) 3.06%(e) 2.25%(e) Assuming no voluntary waivers and reimbursements: Expenses (c)............................... 1.25%(e) 2.00%(e) 2.00%(e) Net investment income...................... 1.77%(e) 2.39%(e) 1.51%(e) Portfolio turnover rate (excluding short-term securities)........................... 0.00% 0.00% 0.00%
See accompanying notes to Financial Highlights.
MINNESOTA TAX FREE FUND -------------------------------------------------------------- CLASS A -------------------------------------------------------------- SIX MONTHS ENDED JUNE 30, 1996 YEAR ENDED DECEMBER 31, ---------------------------------------------- (UNAUDITED) 1995 1994 1993 1992 1991 ------------------------------------------------------------- Net asset value: Beginning of period......................... $12.63 $11.33 $12.85 $12.21 $12.07 $11.67 ------ ------ ------ ------ ------ ------ Operations: Net investment income....................... .31 .62 .63 .64 .70 .75 Net realized and unrealized gain (loss) on investments................ (.51) 1.32 (1.48) .87 .23 .49 ------ ------ ------ ------ ------ ------ Total from operations................... (.20) 1.94 (.85) 1.51 .93 1.24 ------ ------ ------ ------ ------ ------ Distributions to shareholders: From net investment income (a).............. (.31) (.64) (.61) (.64) (.70) (.75) In excess of net investment income.......... (.01) -- -- -- -- -- From net realized gains..................... -- -- (.05) (.23) (.09) (.09) In excess of net realized gains............. -- -- (.01) -- -- -- ------ ------ ------ ------ ------ ------ Total distributions....................... (.32) (.64) (.67) (.87) (.79) (.84) ------ ------ ------ ------ ------ ------ Net asset value: End of period............................... $12.11 $12.63 $11.33 $12.85 $12.21 $12.07 ====== ====== ====== ====== ====== ====== Total investment return (b).................... (1.66)% 17.49% (6.73)% 12.70% 7.97% 11.04% Net assets at end of period (000's omitted)...................... $433,372 $455,220 $406,497 $458,145 $331,314 $251,594 Ratios: Ratio of expenses to average daily net assets (f).............. .92%(e) .93% .90% 1.02% .96% .83% Ratio of net investment income to average daily net assets............... 5.08%(e) 5.11% 5.29% 5.02% 5.73% 6.44% Assuming no voluntary waivers and reimbursements: Expenses (c)........................ .92%(e) .93% .90% 1.02% 1.04% .98% Net investment income............... 5.08%(e) 5.11% 5.29% 5.02% 5.65% 6.29% Portfolio turnover rate (excluding short-term securities).................... 19.50% 50.84% 24.26% 31.77% 23.60% 26.40%
See accompanying notes to Financial Highlights.
MINNESOTA TAX FREE FUND ------------------------------------------------------------------ CLASS B CLASS C -------------------------- -------------------------------------- SIX MONTHS PERIOD FROM SIX MONTHS PERIOD FROM ENDED MARCH 11, ENDED YEAR MAY 4, JUNE 30, 1995(D) TO JUNE 30, ENDED 1994(D) TO 1996 DECEMBER 31, 1996 DECEMBER 31, DECEMBER 31, (UNAUDITED) 1995 (UNAUDITED) 1995 1994 ------------------------------------------------------------------ Net asset value: Beginning of period................... $12.62 $11.90 $12.63 $11.33 $11.96 ------ ------ ------ ------ ------ Operations: Net investment income................. .28 .45 .27 .53 .34 Net realized and unrealized gain (loss) on investments.......... (.50) .71 (.51) 1.32 (.61) ------ ------ ------ ------ ------ Total from operations............. (.22) 1.16 (.24) 1.85 (.27) ------ ------ ------ ------ ------ Distributions to shareholders: From net investment income (a)........ (.28) (.44) (.27) (.55) (.32) In excess of net investment income.... (.01) -- (.01) -- -- From net realized gains............... -- -- -- -- (.04) ------ ------ ------ ------ ------ Total distributions................. (.29) (.44) (.28) (.55) (.36) ------ ------ ------ ------ ------ Net asset value: End of period......................... $12.11 $12.62 $12.11 $12.63 $11.33 ====== ====== ====== ====== ====== Total investment return (b).............. (1.84)% 9.95% (2.03)% 16.62% (2.30)% Net assets at end of period (000's omitted)................ $4,235 $2,701 $2,821 $2,319 $1,061 Ratios: Ratio of expenses to average daily net assets (f)........ 1.46%(e) 1.38%(e) 1.67%(e) 1.67% 1.72%(e) Ratio of net investment income to average daily net assets......... 4.52%(e) 4.43%(e) 4.33%(e) 4.33% 4.56%(e) Assuming no voluntary waivers and reimbursements: Expenses (c).................. 1.67%(e) 1.63%(e) 1.67%(e) 1.67% 1.72%(e) Net investment income......... 4.31%(e) 4.18%(e) 4.33%(e) 4.33% 4.56%(e) Portfolio turnover rate (excluding short-term securities).............. 19.50% 50.84% 19.50% 50.84% 24.26%
See accompanying notes to Financial Highlights.
MINNESOTA INSURED FUND ------------------------------------------------------------------- CLASS A ------------------------------------------------------------------- SIX MONTHS ENDED JUNE 30, 1996 YEAR ENDED DECEMBER 31, --------------------------------------------------- (UNAUDITED) 1995 1994 1993 1992 1991 ------------- ---------- ---------------------------------------- Net asset value: Beginning of period...................... $10.73 $ 9.61 $11.02 $10.27 $10.07 $ 9.65 ------ ------ ------ ------ ------ ------ Operations: Net investment income.................... .26 .51 .54 .54 .59 .60 Net realized and unrealized gain (loss) on investments............. (.36) 1.14 (1.39) .84 .25 .48 ------ ------ ------ ------ ------ ------ Total from operations................ (.10) 1.65 (.85) 1.38 .84 1.08 ------ ------ ------ ------ ------ ------ Distributions to shareholders: From net investment income (a)........... (.26) (.53) (.52) (.54) (.59) (.60) In excess of net investment income....... (.01) -- -- -- -- -- From net realized gains.................. -- -- (.04) (.09) (.05) (.06) ------ ------ ------ ------ ------ ------ Total distributions.................... (.27) (.53) (.56) (.63) (.64) (.66) ------ ------ ------ ------ ------ ------ Net asset value: End of period............................ $10.36 $10.73 $ 9.61 $11.02 $10.27 $10.07 ====== ====== ====== ====== ====== ====== Total investment return (b)................. (1.08)% 17.52 % (7.88)% 13.80% 8.57% 11.59% Net assets at end of period (000's omitted)................... $287,567 $307,734 $284,132 $311,187 $162,728 $68,250 Ratios: Ratio of expenses to average daily net assets (f)........... .91%(e) .87% .61% .70% .37% .78% Ratio of net investment income to average daily net assets............ 4.89%(e) 4.92% 5.29% 4.93% 5.66% 6.13% Assuming no voluntary waivers and reimbursements: Expenses (c)..................... .91%(e) .92% .94% 1.02% 1.06% 1.16% Net investment income............ 4.89%(e) 4.87% 4.96% 4.61% 4.97% 5.75% Portfolio turnover rate (excluding short-term securities)................. 9.20% 53.72% 24.75% 18.25% 14.11% 43.68%
See accompanying notes to Financial Highlights.
MINNESOTA INSURED FUND ----------------------------------------------------------------- CLASS B CLASS C -------------------------- ------------------------------------ SIX MONTHS PERIOD FROM SIX MONTHS PERIOD FROM ENDED MARCH 7, ENDED YEAR MAY 4, JUNE 30, 1995(d) TO JUNE 30, ENDED 1994(d) TO 1996 DECEMBER 31, 1996 DECEMBER 31, DECEMBER 31, (UNAUDITED) 1995 (UNAUDITED) 1995 1994 ----------------------------------------------------------------- Net asset value: Beginning of period.................... $10.72 $10.14 $10.73 $9.61 $10.23 ------ ------ ------ ----- ------ Operations: Net investment income.................. .23 .38 .22 .43 .30 Net realized and unrealized gain (loss) on investments........... (.36) .58 (.36) 1.14 (.62) ------ ------ ------ ----- ------ Total from operations.............. (.13) .96 (.14) 1.57 (.32) ------ ------ ------ ----- ------ Distributions to shareholders: From net investment income (a)......... (.23) (.38) (.22) (.45) (.28) In excess of net investment income..... (.01) -- (.01) -- -- From net realized gains................ -- -- -- -- (.02) ------ ------ ------ ----- ------ Total distributions.................. (.24) (.38) (.23) (.45) (.30) ------ ------ ------ ----- ------ Net asset value: End of period.......................... $10.35 $10.72 $10.36 $10.73 $9.61 ====== ====== ====== ====== ===== Total investment return (b)............... (1.34)% 9.59% (1.45)% 16.63% (3.14)% Net assets at end of period (000's omitted)................. $5,887 $4,655 $3,250 $3,166 $1,525 Ratios: Ratio of expenses to average daily net assets (f)......... 1.45%(e) 1.34%(e) 1.67%(e) 1.66% 1.36%(e) Ratio of net investment income to average daily net assets.......... 4.35%(e) 4.15%(e) 4.15%(e) 4.11% 4.68%(e) Assuming no voluntary waivers and reimbursements: Expenses (c)................... 1.66%(e) 1.64%(e) 1.67%(e) 1.67% 1.68%(e) Net investment income.......... 4.14%(e) 3.85%(e) 4.15%(e) 4.10% 4.36%(e) Portfolio turnover rate (excluding short-term securities)............... 9.20% 53.72% 9.20% 53.72% 24.75%
See accompanying notes to Financial Highlights.
MINNESOTA LIMITED TERM TAX FREE FUND --------------------------------------------------------------- CLASS A --------------------------------------------------------------- SIX MONTHS ENDED JUNE 30, 1996 YEAR ENDED DECEMBER 31, ------------------------------------------------ (UNAUDITED) 1995 1994 1993 1992 1991 ---------------------------------------------------------------- Net asset value: Beginning of period.......................... $11.14 $10.50 $11.16 $10.83 $10.69 $10.32 ------ ------ ------ ------ ------ ------ Operations: Net investment income........................ .25 .51 .45 .47 .51 .55 Net realized and unrealized gain (loss) on investments................. (.25) .64 (.66) .37 .18 .37 ------ ------ ------ ------ ------ ------ Total from operations.................... -- 1.15 (.21) .84 .69 .92 ------ ------ ------ ------ ------ ------ Distributions to shareholders: From net investment income (a)............... (.25) (.51) (.45) (.47) (.51) (.55) In excess of net investment income........... (.01) -- -- -- -- -- From net realized gains...................... -- -- -- (.04) (.04) -- ------ ------ ------ ------ ------ ------ Total distributions........................ (.26) (.51) (.45) (.51) (.55) (.55) ------ ------ ------ ------ ------ ------ Net asset value: End of period................................ $10.88 $11.14 $10.50 $11.16 $10.83 $10.69 ====== ====== ====== ====== ====== ====== Total investment return (b)..................... .02% 11.00% (1.91)% 7.88% 6.62% 9.24% Net assets at end of period (000's omitted)....................... $68,199 $72,405 $84,168 $75,374 $48,210 $27,268 Ratios: Ratio of expenses to average daily net assets (f)............... .90%(e) .91% .92% .99% 1.09% 1.23% Ratio of net investment income to average daily net assets................ 4.61%(e) 4.61% 4.18% 4.18% 4.71% 5.35% Assuming no voluntary waivers and reimbursements: Expenses (c)......................... .90%(e) .91% .92% .99% 1.09% 1.23% Net investment income................ 4.61%(e) 4.61% 4.18% 4.18% 4.71% 5.35% Portfolio turnover rate (excluding short-term securities)..................... 6.40% 40.28% 42.06% 19.13% 25.56% 43.39%
See accompanying notes to Financial Highlights.
MINNESOTA LIMITED TERM TAX FREE FUND ----------------------------------------------------------------- CLASS B CLASS C ---------------------------- ----------------------------------- SIX MONTHS PERIOD FROM SIX MONTHS PERIOD FROM ENDED AUGUST 15, ENDED YEAR APRIL 30, JUNE 30, 1995(d) TO JUNE 30, ENDED 1994(d) TO 1996 DECEMBER 31, 1996 DECEMBER 31, DECEMBER 31, (UNAUDITED) 1995 (UNAUDITED) 1995 1994 ----------------------------------------------------------------- Net asset value: Beginning of period.................... $11.14 $10.95 $11.13 $10.50 $10.74 ------ ------ ------ ------ ------ Operations: Net investment income.................. .24 .17 .22 .42 .24 Net realized and unrealized gain (loss) on investments........... (.25) .19 (.24) .63 (.24) ------ ------ ------ ------ ------ Total from operations.............. (.01) .36 (.02) 1.05 -- ------ ------ ------ ------ ------ Distributions to shareholders: From net investment income (a)......... (.23) (.17) (.22) (.42) (.24) In excess of net investment income..... (.01) -- (.01) -- -- ------ ------ ------ ------ ------ Total distributions................ (.24) (.17) (.23) (.42) (.24) ------ ------ ------ ------ ------ Net asset value: End of period.......................... $10.89 $11.14 $10.88 $11.13 $10.50 ====== ====== ====== ====== ====== Total investment return (b)............... (.25)% 3.26% (.36)% 10.18% (0.03)% Net assets at end of period (000's omitted)................. $142 $27 $927 $694 $341 Ratios: Ratio of expenses to average daily net assets (f)......... 1.44%(e) 1.30%(e) 1.65%(e) 1.63% 1.71%(e) Ratio of net investment income to average daily net assets.......... 4.03%(e) 3.93%(e) 3.84%(e) 3.82% 3.35%(e) Assuming no voluntary waivers and reimbursements: Expenses (c)................... 1.64%(e) 1.55%(e) 1.65%(e) 1.63% 1.71%(e) Net investment income.......... 3.83%(e) 3.68%(e) 3.84%(e) 3.82% 3.35%(e) Portfolio turnover rate (excluding short-term securities)............... 6.40% 40.28% 6.40% 40.28% 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. (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 a portion of 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. (f) Beginning in the year ended December 31, 1995, the expense ratio reflects the effect of gross expenses attributable to earnings credits on uninvested cash balances received by the Funds. Prior period expense ratios have not been adjusted.
VOYAGEUR MINNESOTA HIGH YIELD MUNICIPAL BOND FUND INVESTMENTS IN SECURITIES (UNAUDITED) JUNE 30, 1996 - ------------------------------------------------------------------------------------------------------------------- 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 (78.5%) GENERAL OBLIGATION (28.9%): ------------------------------------------------------------------------------------------------------- $ 100 Esko Independent School District (FSA Insured)................... 5.75% 04-01-17 $ 100,061 100 Inver Grove Heights Series A..................................... 5.75 02-01-13 100,000 100 Stewartville Independent School District Series A................ 5.75 02-01-12 100,125 100 Waconia Independent School District Series 93A (FSA Insured)..... 5.45 02-01-15 96,264 ---------- 396,450 ---------- EDUCATION (14.3%): ------------------------------------------------------------------------------------------------------- 100 Minnesota Higher Education Facility Macalaster College 4C........ 5.50 03-01-12 95,838 100 Minnesota State University System Revenue........................ 6.10 06-30-23 101,301 ---------- 197,139 ---------- HEALTH CARE (13.5%): ------------------------------------------------------------------------------------------------------- 100 Robbinsdale North Memorial Medical Center (AMBAC Insured) . . . . 5.50 05-15-23 94,762 100 St. Louis Park Methodist Hospital (AMBAC Insured)................ 5.10 07-01-13 91,125 ---------- 185,887 ---------- HOUSING (14.6%): ------------------------------------------------------------------------------------------------------- 100 Eden Prairie Multi Family Housing Sub.-Tanger Creek ..... . . . . 8.00 06-20-31 100,875 100 Minnesota State Housing Finance Authority Single Family Mortgage Series E............................................. 6.25 01-01-23 100,125 ---------- 201,000 ---------- UTILITIES (7.2%): ------------------------------------------------------------------------------------------------------- 100 Southern Minnesota Municipal Power Agency Revenue (FGIC Insured)................................................ 5.75 01-01-18 99,026 ---------- TOTAL INVESTMENTS IN SECURITIES (cost:$1,065,278) (f) $1,079,502 ==========
See accompanying notes to investments in securities.
VOYAGEUR MINNESOTA TAX FREE FUND INVESTMENTS IN SECURITIES (UNAUDITED) JUNE 30, 1996 - ------------------------------------------------------------------------------------------------------------------- PRINCIPAL AMOUNT COUPON MARKET ($000) NAME OF ISSUER (D) RATE MATURITY VALUE (A) - ------------------------------------------------------------------------------------------------------------------- (PERCENTAGE OF EACH INVESTMENT CATEGORY RELATES TO TOTAL NET ASSETS.) MUNICIPAL BONDS (98.8%): ESCROWED WITH U.S. GOVERNMENT BONDS (10.6%): ------------------------------------------------------------------------------------------------------- $ 1,000 Anoka County Capital Improvement.................................... 7.20% 02-01-99 $ 1,060,230 250 Blaine IDR (Ball Corp) ............................................. 8.25 12-01-99 276,660 300 Blaine IDR (Ball Corp).............................................. 8.25 12-01-00 338,529 500 Bloomington Tax Increment .......................................... 9.75 02-01-05 650,530 390 Brainerd Independent School District #181........................... 7.00 06-01-01 426,231 1,000 Hopkins Senior Multi Family Facilities Augustana Home............... 9.00 07-01-97 1,065,730 575 Kimball Independent School District #739 ........................... 7.70 02-01-98 604,038 525 Kimball Independent School District #739 ........................... 7.60 02-01-98 550,720 500 Little Falls Independent School District #482 (AMBAC Insured)....... 6.80 02-01-99 528,445 1,990 Minnesota Public Facility Authority Water PCA....................... 7.10 03-01-12 2,183,030 5.220 Minnesota Public Facility Authority Water PCA ...................... 6.95 03-01-01 5,773,946 10,000 Maplewood Independent School District #622 (FSA Insured)............ 7.10 02-01-25 11,382,500 860 Northfield College Facility Revenue - St. Olaf College.............. 8.00 10-01-98 926,349 1,255 Northfield College Facility Revenue - St. Olaf College.............. 7.88 10-01-98 1,348,497 1,000 Owatonna Public Utilities........................................... 6.75 01-01-01 1,079,250 750 Rockford Independent School District #883........................... 7.20 12-15-98 801,840 1,000 Southern Minnesota Muni Power Agency Power Supply (MBIA Insured)................................................... 5.75 01-01-18 1,000,000 1,000 St. Cloud Independent School District #742 ......................... 7.50 02-01-98 1,045,150 775 St. Louis Park Methodist Hospital (AMBAC Insured)................... 7.25 07-01-00 859,390 7,825 St. Paul Civic Center Revenue Sales Tax (MBIA Insured).............. 5.55 11-01-23 7,324,200 2,175 St. Paul Sewer Revenue Series 88A................................... 8.00 12-01-98 2,374,339 990 Southern Minnesota Municipal Power Agency (AMBAC Insured)........... 5.50 01-01-15 956,033 1,500 University of Minnesota Revenue Refunding........................... 6.00 02-01-11 1,500,000 1,560 Wayzata Independent School District #284............................ 7.10 02-01-99 1,648,265 625 Wayzata Independent School District #284 ........................... 7.05 02-01-99 659,613 185 Western Minnesota Municipal Power Agency (MBIA Insured)............. 9.75 01-01-16 268,814 ------------- 46,632,329 ------------- GENERAL OBLIGATION (22.4%): ------------------------------------------------------------------------------------------------------- 1,450 Becker Independent School District #726 (FSA Insured).............. 5.30 02-01-11 1,414,026 1,235 Becker Independent School District #726 (FSA Insured).............. 5.38 02-01-14 1,190,738 1,000 Byron Independent School District #531 (AMBAC Insured)............. 5.30 06-01-14 954,120 1,805 Centennial Independent School District #12 (FGIC Insured).......... 4.88 02-01-10 1,658,344 2,850 Chaska Independent School District #112 (FGIC Insured)............. 5.25 02-01-11 2,700,375 5,085 Chaska Independent School District #112 (FGIC Insured)............. 5.38 02-01-14 4,824,394 1,000 Fairbault Independent School District #656 (MN School District Credit Enhanced)....................................... 6.10 06-01-10 1,039,310 3,500 Farmington Independent School District #192 (AMBAC Insured)........ 5.13 02-01-15 3,251,360 Hennepin County 7,990.............................................. 5.75 10-01-10 8,114,883 3,675 Hopkins Independent School District #270 (MBIA Insured)............ 4.88 02-01-13 3,326,794 2,350 Kenyon Wanamingo Independent School District (MBIA Insured)........ 6.00(l) 02-01-18 2,364,570 8,500 Lakeville Independent School District #194 (MBIA Insured).......... 5.13 02-01-15 7,809,290 1,540 Mahtomedi Independent School District #832 Series B Zero Coupon (MBIA Insured)........................................... 5.90(g) 02-01-14 557,957 1,015 Milaca Independent School District #921 (FSA Insured).............. 5.50 02-01-20 975,202 1,000 Minneapolis Convention Center Facilities........................... 5.45 04-01-13 978,430 850 Minneapolis Convention Center Facilities, Inverse Floater ......... 6.97(m) 04-01-14 789,905 8,440 Minneapolis GO..................................................... 5.11 10-01-20 7,645,374 2,000 Minneapolis G.O. Series B.......................................... 5.20 03-01-13 1,897,920 580 Minneapolis Sports Arena Project, Inverse Floater.................. 6.27(m) 04-01-14 495,175 1,750 Minneapolis Unlimited Tax Series 1992 G.O.......................... 6.30 10-01-08 1,863,225 1,540 North Branch Independent School District #138 (FGIC Insured)....... 5.50 02-01-12 1,516,207 1,000 North Branch Independent School District #138 (FGIC Insured)....... 5.63 02-01-17 982,020 2,250 North St. Paul, Maplewood Independent School District #622, Inverse Floater................................................. 6.32(m) 02-01-20 1,706,468 240 Pine Island Independent School District #255 (FSA Insured)......... 6.63 06-01-12 251,993 310 Pine Island Independent School District #255 (FSA Insured)......... 6.63 06-01-13 324,811 330 Pine Island Independent School District #255 (FSA Insured)......... 6.63 06-01-14 345,695 355 Pine Island Independent School District #255 (FSA Insured)......... 6.63 06-01-15 371,110 380 Pine Island Independent School District #255 (FSA Insured)......... 6.63 06-01-16 397,244 385 Plainview Independent School District #810......................... 6.70 02-01-06 412,431 420 Plainview Independent School District #810......................... 6.75 02-01-07 450,975 445 Plainview Independent School District #810......................... 6.75 02-01-08 477,819 2,000 Puerto Rico Aqueduct & Sewer Authority............................. 5.00 07-01-15 1,781,340 1,000 Rochester Tax Increment............................................ 6.50 12-01-04 1,026,350 2,000 Rockford Independent School District #883 (FSA Insured)............ 5.25 12-15-14 1,892,120 4,000 Rosemount Independent School District #196 Inverse Floater......... 7.82(m) 04-01-15 4,017,960 1,375 Rosemount - Apple Valley Independent School District #196 (FSA Insured)................................................... 5.88 04-01-15 1,383,168 2,600 Rosemount Independent School District #196 Series B Zero Coupon (FSA Insured)............................................ 5.93(g) 04-01-11 1,133,600 1,850 Rosemount Independent School District #196 Zero Coupon (FSA Insured)............................................ 5.96(g) 04-01-12 756,632 1,915 Rosemount Independent School District #196 Zero Coupon (FSA Insured)............................................ 6.01(g) 04-01-13 733,981 540 Sartell Independent School District #748 Zero Coupon (MBIA Insured)................................................. 5.98(g) 02-01-13 208,958 1,075 Sartell Independent School District #748 Zero Coupon (MBIA Insured).................................................. 6.10(g) 02-01-15 365,973 1,750 Sartell Independent School District #748 Zero Coupon (MBIA Insured)................................................. 6.15(g) 02-01-16 559,528 1,600 Sartell Independent School District #748 Zero Coupon (MBIA Insured).................................................. 6.15(g) 02-01-17 480,224 1,850 Sartell Independent School District #748 Series A (MBIA Insured).................................................. 5.75 02-01-15 1,855,975 1,310 South Washington County Independent School District #833 (FGIC Insured).................................................. 4.88 06-01-12 1,187,188 1,350 South Washington County Independent School District #833 (FGIC Insured).................................................. 4.88 06-01-13 1,211,625 2,170 South Washington County Independent School District #833 (FGIC Insured).................................................. 4.88 06-01-14 1,931,300 2,000 Spring Lake Park Independent School District #16 (MBIA Insured).................................................. 5.23 02-01-17 1,859,900 3,000 Stillwater Independent School District #834 (MBIA Insured)......... 5.75 02-01-15 3,008,910 1,025 Stillwater Series A (FSA Insured).................................. 5.38 02-01-17 978,321 1,025 Stillwater Series A (FSA Insured).................................. 5.38 02-01-21 963,541 3,250 Waseca Independent School District #834 GO (MBIA Insured).......... 5.50 04-01-17 3,142,425 1,680 Washington County GO............................................... 5.90 02-01-10 1,706,981 5,750 White Bear Lake Independent School District #624 (FSA Insured)..... 5.30 02-01-14 5,470,722 ------------ 98,744,887 ------------- UTILITIES (16.1%): ------------------------------------------------------------------------------------------------------- 1,750 Bass Brook Pollution Control Revenue Power & Light (MBIA Insured)................................................ 6.00 07-01-22 1,754,725 17,490 Bass Brook Pollution Control Revenue Rfg. Power & Light ......... 6.00 07-01-22 17,107,319 3,815 Northern Minnesota Municipal Power Agency Zero Coupon (AMBAC Insured)............................................... 5.85(g) 01-01-09 1,922,684 5,875 Northern Minnesota Municipal Power Agency Series 89A............. 7.25 01-01-16 6,286,250 13,500 Northern Minnesota Municipal Power Agency Series B (AMBAC Insured)............................................... 5.00 01-01-18 13,006,035 1,500 Puerto Rico Electric Power Authority......................... 5.25 07-01-21 1,354,740 2,930 Puerto Rico Electric Power Authority............................. 5.50 07-01-25 2,743,505 3,880 Southern Minnesota Municipal Power Agency Revenue Series A (FGIC Insured)....................................... 5.75 01-01-18 3,559,900 1,125 Southern Minnesota Municipal Power Agency Series B (FGIC Insured)................................................ 5.00 01-01-13 1,028,688 1,560 Southern Minnesota Municipal Power Agency Supply System (AMBAC Insured)............................................... 5.50 01-01-15 1,507,334 7,200 Southern Minnesota Municipal Power Agency (MBIA Insured)......... 4.75 01-01-16 6,228,000 2,000 Southern Minnesota Municipal Power Agency (FGIC Insured)......... 5.75 01-01-18 1,975,700 9,770 Southern Minnesota Municipal Power Agency (MBIA Insured)......... 5.75 01-01-18 9,651,295 4,785 Southern Minnesota Municipal Power Agency (MBIA Insured)......... 6.77(g) 01-01-19 1,249,268 5,000 Southern Minnesota Municipal Power Agency Zero Coupon (MBIA Insured)................................................ 6.14(g) 01-01-21 1,158,500 550 Western Minnesota Municipal Power Agency Revenue ................ 6.13 01-01-16 549,967 ------------- 71,083,910 ------------- INDUSTRIAL (5.5%): ------------------------------------------------------------------------------------------------------- 1,000 Anoka Resource Recovery Revenue for NSP Series 85................ 7.15 12-01-08 1,071,110 2,000 Becker Pollution Control Revenue for Sherborne County General Station............................................... 6.80 04-01-07 2,125,000 4,500 Duluth Seaway Port Authority Revenue Cargill .................... 6.13 05-01-14 4,550,490 1,000 East Grand Forks Amer Crystal Sugar Pollution Control Revenue.... 7.75 04-01-18 1,073,000 1,430 Minneapolis Community Development Agency (Fireman's Fund Insured)...................................... 7.63 06-01-06 1,478,263 4,400 Minnesota Public Facilities Authority Water Control.............. 6.25% 03-01-16 4,562,272 745 Red Wing IDR K-Mart.............................................. 5.50 07-01-08 658,394 2,200 Richfield CDR for Richfield Shoppes.............................. 8.38(j) 10-01-13 2,389,750 4,704 St. Cloud Revenue Northwest Center Association................... 7.50(b) 08-01-12 4,780,410 1,300 St. Paul Port Authority Fort Road Medical/Twin Parks (Asset Guaranty Reinsurance).................................. 7.50 09-01-02 1,390,142 ------------- 24,078,831 ------------- HEALTH CARE (24.6%): ------------------------------------------------------------------------------------------------------- 1,000 Albert Lea St. John's Lutheran Home Project...................... 8.50 11-01-19 1,065,000 600 Bemidji Hospital Facilities Revenue North County................. 6.05 09-01-16 597,864 1,825 Bemidji Hospital Facilities Revenue North County................. 6.05 09-01-24 1,802,936 1,760 Bemidji Hospital Facilities Revenue North County................. 5.63 09-01-15 1,675,661 2,435 Bemidji Hospital Facilities Revenue North County................. 5.63 09-01-21 2,270,126 2,250 Brainerd Benedictine Health Systems (Connie Lee Insured)......... 6.00 02-15-12 2,263,342 9,450 Duluth Benedictine/St. Mary's Health (Connie Lee Insured)........ 6.00 02-15-20 9,407,853 4,295 Duluth Economic Development Authority St. Luke's Hospital (Connie Lee Insured).......................................... 6.40 05-01-18 4,431,452 2,500 Edina Fairview Hospital Revenue.................................. 7.13 07-01-19 2,681,250 500 Glencoe/McLeod County Health Care................................ 8.50 12-01-15 540,850 1,000 Little Canada Health Care 1992 (Presbyterian Homes Guaranteed)... 7.25 07-01-12 995,000 250 Little Canada Senior Housing Facilities (Presbyterian Homes Guaranteed)............................... 7.25 07-01-12 248,750 13,000 Minneapolis & St. Paul HRA Revenue (FSA Insured)................. 5.50 08-15-25 12,180,870 3,000 Minneapolis Fairview Hospital Revenue (MBIA Insured)............. 6.50 01-01-11 3,170,550 6,800 Minneapolis Fairview Hospital Revenue Series 1993A (MBIA Insured)................................................ 5.25 11-15-13 6,339,300 2,635 Minneapolis Health Care American Baptist Homes................... 8.70 11-01-09 2,826,037 1,360 Minneapolis/St. Paul HRA HealthOne Group (MBIA Insured).......... 7.40 08-15-11 1,492,600 1,045 Minneapolis/St. Paul HRA Childrens Hospital (FSA Insured)................................................. 5.50 08-15-25 981,600 10,725 Robbinsdale North Memorial Medical Center (AMBAC Insured)........ 5.50 05-15-23 10,094,585 1,500 Rochester Mayo Health Care Revenue............................... 5.90 11-15-10 1,550,640 6,000 Rochester Mayo Health Care Revenue Series 92H.................... 6.03 11-15-15 6,044,940 5,900 Rochester Mayo Foundation, Series 1992 D......................... 6.25 11-15-21 5,995,403 2,000 Roseville Presbyterian Homes, Inc. Health Care Project (Presbyterian Homes Guaranteed)............................... 7.50 05-01-07 2,012,500 600 Spring Park Twin Birch Nursing Home (Presbyterian Homes Guaranteed)............................... 8.25 08-01-11 630,750 750 Springfield St. John's Lutheran Home Project..................... 8.50 11-01-19 792,555 10,250 St. Cloud Hospital Revenue (AMBAC Insured)....................... 5.30 10-01-20 9,448,860 7,500 St. Louis Park Methodist Hospital (AMBAC Insured)................ 5.10 07-01-13 6,712,500 11,220 St. Louis Park Methodist Hospital (AMBAC Insured)................ 5.20 07-01-23 10,105,854 ------------- 108,359,628 ------------- HOUSING (14.9%): ------------------------------------------------------------------------------------------------------- 500 Austin Housing and Redevelopment Authority Courtyard Residence Series 95A.......................................... 7.25 01-01-26 503,015 2,500 Brooklyn Center Multifamily Housing Revenue (Section 8).......... 5.90 01-01-20 2,399,200 3,370 Burnsville Multifamily - Bridgeway Apartments (FHA Insured)...... 7.63 02-01-24 3,465,708 1,000 Burnsville Multifamily- Coventry Court Apartments Project (FHA Insured)................................................. 7.50 09-01-17 1,049,490 195 Dakota County Housing and Redevelopment Authority Single Family (GNMA Backed).......................................... 8.10 03-01-16 205,705 1,000 Eagan Forest Ridge Apartments Project (FHA Insured).............. 7.50 09-01-17 1,049,490 400 Eden Prairie Multifamily Revenue, Eden Investments (FHA Insured). 7.40 08-01-25 420,876 1,585 Eden Prairie Multifamily Windslope Apartments (Section 8)........ 7.10 11-01-17 1,640,285 7,605 Eden Prairie Multifamily Homes, Tanger Creek (GNMA Insured)...... 8.05 06-20-31 8,640,497 695 Eden Prairie Multifamily Homes Sub Tanager Creek................. 8.00 06-21-31 698,475 1,650 Edina Park Plaza (FHA Insured)................................... 7.50 12-01-09 1,758,108 1,250 Edina Park Plaza (FHA Insured)................................... 7.70 12-01-28 1,316,012 1,000 Hopkins Renaissance Section 8.................................... 6.38 04-01-20 1,004,810 1,000 Maplewood Hazel Ridge Apartments................................. 9.25 12-01-00 (c) 1,044,110 2,135 Minneapolis Community Development Agency and St. Paul Housing Redevelopment Agency Family Housing Phase II.......... 7.75 07-01-06 2,197,449 1,000 Minneapolis Housing Facility Revenue 1993 Augustana Chapel View.. 7.00 04-01-18 987,760 4,000 Minneapolis Multifamily Mortgage Seward Towers (GNMA Backed)..... 7.38 12-20-30 4,205,840 1,000 Minnesota Housing Finance Agency Housing Development (Section 8)................................................... 7.80 08-01-18 1,034,000 1,500 Minnesota Housing Finance Agency Multifamily Housing............. 6.95 02-01-14 1,561,605 745 Minnesota Housing Finance Agency Multifamily Housing............. 6.95 08-01-17 767,991 1,250 Minnesota Housing Finance Agency Rental Housing Series B......... 6.25 08-01-22 1,252,687 465 Minnesota Housing Finance Agency Single Family Mortgage Series C...................................................... 7.65 07-01-08 497,355 380 Minnesota Housing Finance Agency Single Family Mortgage.......... 7.30 07-01-09 398,020 190 Minnesota Housing Finance Agency Single Family Mortgage Series B...................................................... 7.30 07-01-10 199,010 1,010 Minnesota Housing Finance Agency Single Family Mortgage Series C...................................................... 7.10 07-01-11 1,057,440 1,045 Minnesota Housing Finance Agency Single Family Mortgage 86 Series B................................................... 7.25 07-01-16 1,061,187 2,000 Minnetonka Multifamily - Beacon Hill Project..................... 7.70 06-01-25 2,055,000 1,500 Red Wing Housing and Redevelopment Agency Jordan Tower (Section 8)............................................. 7.00 01-01-19 1,547,700 2,250 St. Cloud Germain Towers Housing Series 1993 (Section 8)......... 5.90 09-01-20 2,121,840 2,045 St. Cloud Housing and Redevelopment Agency Northway A&B Project (Section 8)....................................... 7.50 12-01-18 2,065,450 3,855 St. Louis Park Multifamily Housing Revenue (FHA Insured)......... 6.25 12-01-28 3,873,465 3,865 St. Louis Park Multifamily Westwind Apartments Housing (GNMA Backed)................................................. 5.75 01-01-29 3,699,887 1,890 St. Louis Park Single Family (GNMA Backed)....................... 7.25 04-20-23 1,982,477 1,000 St. Paul Housing and Redevelopment Agency Como Lake Project (FHA Insured)................................................. 7.01%(i) 03-01-26 930,000 73 St. Paul Housing and Redevelopment Agency Single Family Mortgage (FNMA Backed)........................................ 6.90 12-01-11 76,435 1,795 St. Paul Housing and Redevelopment Agency Single Family Mortgage (FNMA Backed)........................................ 6.90 12-01-21 1,861,164 2,130 Wadena Housing and Redevelopment Agency Humphrey Manor (Section 8)............................................. 6.00 02-01-19 2,035,194 1,110 Wells Housing and Redevelopment Agency Broadway Apartment Project (Section 8).......................................... 7.00 01-01-19 1,159,684 2,050 Willmar Housing and Redevelopment Agency Highland Apartments (Section 8)........................................ 5.85 06-01-19 1,956,930 ------------- 65,781,351 ------------- EDUCATION (1.8%): ------------------------------------------------------------------------------------------------------- 1,000 Minnesota Higher Education Augsburg College Series 4F1........... 6.25 05-01-23 987,090 4,000 Minnesota Higher Education Carleton College...................... 5.75 11-01-12 4,020,520 1,360 Minnesota Higher Education St. Thomas University Series R2....... 5.60 09-01-14 1,322,151 1,540 St. Paul HRA St. Paul Academy Series 1993 ....................... 5.45 10-01-23 1,416,076 ------------- 7,745,837 ------------- CERTIFICATE OF PARTICIPATION (0.4%): ------------------------------------------------------------------------------------------------------- 1,809 West St. Paul Commercial Mortgage (K-Mart Lessee)................ 7.00 11-01-07(j) 1,816,414 ------------- TRANSPORTATION (0.9%): ------------------------------------------------------------------------------------------------------- 3,000 Puerto Rico Commonwealth Highway & Transportation................ 5.50 07-01-26 2,806,620 1,000 Puerto Rico Highway Revenue...................................... 6.25 07-01-14 1,043,010 ------------- 3,849,630 ------------- OTHER REVENUE (1.6%): ------------------------------------------------------------------------------------------------------- 5,750 Minneapolis Community Development Agency Zero Coupon (MBIA Insured)................................................ 6.70(g) 09-01-09 2,793,867 855 Minneapolis Community Development Agency Common Bond Fund........ 7.95 12-01-11 917,586 795 Minneapolis Community Development Agency Common Bond Fund........ 7.40 12-01-21 826,554 510 Minneapolis Community Development Agency Limited Tax Series 1991-4 Opportunity............................................ 7.13 12-01-05 544,032 1,000 Seaway Port Authority Rfdg. Series A............................. 5.75 12-01-16 943,810 1,120 St. Louis Park Refunding Revenue G & K Partner, Methodist Hospital Guaranteed........................................... 7.25 06-01-13 1,156,411 ------------- 7,182,260 ------------- TOTAL INVESTMENTS IN SECURITIES (cost: $424,335,368) (f) $ 435,275,077 =============
See accompanying notes to investments in securities.
VOYAGEUR MINNESOTA INSURED FUND INVESTMENTS IN SECURITIES (UNAUDITED) JUNE 30, 1996 - ------------------------------------------------------------------------------------------------------------------- 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 (24.2%): ------------------------------------------------------------------------------------------------------- $ 1,065 Brainerd Independent School District #181 ((FGIC Insured)........ 7.00% 06-01-01 $ 1,166,367 700 Centennial Independent School District #12 (FSA Insured)......... 7.15 02-01-00 757,274 200 Centennial Independent School District #12 (FSA Insured)......... 7.10 02-01-00 216,038 9,000 Dakota, Washington & Anoka Single Family Housing (GNMA Insured)................................................ 8.45(e) 09-01-19 11,698,380 14,115 Dakota & Washington Counties HRA Single Family Mortgage Revenue (GNMA Insured)........................................ 8.38(e) 09-01-21 18,042,357 405 Dakota & Washington Counties HRA (MBIA Insured).................. 8.15(e) 09-01-16 501,613 500 Delano Independent School District #879 (AMBAC Insured).......... 7.25 02-01-01 549,785 1,060 Duluth EDA Healthcare-Duluth Clinic (AMBAC Insured).............. 6.30 11-01-04 1,149,835 200 Elk River Independent School District #728 (FSA Insured)......... 7.00 02-01-00 214,364 1165 Elk River Independent School District #728 (FSA Insured)......... 6.30 02-01-02 1,245,467 450 Lake of the Woods Independent School District #390 (AMBAC Insured)............................................... 7.35 02-01-99 480,978 5,935 Maplewood Independent School District #622 (MBIA Insured)........ 7.10 02-01-19 6,755,514 11,525 Maplewood Independent School District #622 (FSA Insured)......... 7.10 02-01-25 13,118,331 760 Minnesota State University System (MBIA Insured)................. 7.40 06-30-99 821,324 520 South Washington County Independent School District #833 (FGIC Insured)................................................ 6.88 06-01-00 558,225 670 Southern Minnesota Municipal Power Agency (AMBAC Insured)........ 5.75 01-01-18 659,448 3,790 Southern Minnesota Municipal Power Agency-Refunded/Series A (AMBAC Insured)............................................... 5.75 01-01-18 3,730,307 500 St. Cloud Hospital Facility Revenue (AMBAC Insured).............. 7.00 07-01-01 556,935 500 St. Cloud Hospital Facility Revenue (AMBAC Insured)............ 6.75 07-01-01 551,440 250 St. Francis Independent School District #15 (FGIC Insured)....... 7.60 02-01-98 262,442 500 St. Louis Park Methodist Hospital (AMBAC Insured)................ 7.25 07-01-00 554,445 725 St. Michael-Albert Independent School District (AMBAC Insured)... 7.25 02-01-98 754,000 775 St. Michael-Albert Independent School District (AMBAC Insured)... 7.25 02-01-98 806,000 255 St. Michael-Albert Independent School District (AMBAC Insured)... 7.25 02-01-98 265,200 795 St. Michael-Albert Independent School District (AMBAC Insured)... 7.25 02-01-98 826,800 1,000 Stillwater Independent School District #834 (FGIC Insured)....... 6.75 02-01-99 1,050,660 500 Washington County HRA Jail Facilities (MBIA Insured)............ 7.00 02-01-02 551,450 2,000 Western Minnesota Municipal Power Agency, Escrowed to Maturity... 6.60 01-01-10 2,181,680 530 Western Minnesota Municipal Power Agency (MBIA Insured).......... 9.75 01-01-16 770,117 1,000 Wright County (FSA Insured)...................................... 7.20(e) 12-01-99 1,079,850 ------------ 71,876,626 ------------ GENERAL OBLIGATION (35.5%): ------------------------------------------------------------------------------------------------------- 1,575 Alexandria Independent School District #206 (MBIA Insured)....... 6.30 02-01-11 1,648,269 1,675 Alexandria Independent School District #206 (MBIA Insured)....... 6.30 02-01-12 1,746,539 1,775 Alexandria Independent School District #206 (MBIA Insured)....... 6.30 02-01-13 1,843,870 8,045 Anoka County (FGIC Insured)...................................... 5.90 02-01-11 8,154,975 6,300 Becker (MBIA Insured)............................................ 6.25(e) 08-01-15 6,458,823 2,000 Big Lake Independent School District #727 (AMBAC Insured)........ 5.70 02-01-13 1,999,900 1,030 Buffalo Independent School District #887 (FSA Insured)........... 6.10 02-01-15 1,048,890 515 Carver County HRA Jail Facility (MBIA Insured)................... 6.40 02-01-10 539,792 550 Carver County HRA Jail Facility (MBIA Insured)................... 6.40 02-01-11 575,432 585 Carver County HRA Jail Facility (MBIA Insured)................... 6.40 02-01-12 610,307 625 Carver County HRA Jail Facility (MBIA Insured)................... 6.40 02-01-13 650,213 670 Carver County HRA Jail Facility (MBIA Insured)................... 6.40 02-01-14 694,817 1,135 Dakota County (AMBAC Insured).................................... 6.40 02-01-08 1,183,237 1,000 Dakota County (AMBAC Insured).................................... 6.45 02-01-09 1,043,750 2,500 Dakota County (AMBAC Insured).................................... 6.45 02-01-10 2,609,375 1,125 Eden Prairie Independent School District #272, Inverse Floater (MBIA Insured)................................................ 6.32(m) 02-01-14 954,203 1,000 Eden Prairie Independent School District #272, Inverse Floater (MBIA Insured)................................................ 6.32(m) 02-01-15 841,200 2,500 Eden Prairie Independent School District #272 (FGIC Insured)..... 5.85 02-01-13 2,511,525 6,200 Eden Prairie Independent School District #272 (FGIC Insured)..... 5.65 02-01-13 6,166,706 1,075 Elk River Independent School District #728 A (AMBAC Insured)..... 6.00 02-01-09 1,112,840 3,950 Elk River Independent School District #728 Series 92 B (AMBAC Insured)............................................... 6.00 02-01-09 4,066,999 230 Ellendale-Geneva Independent School District #762 (AMBAC Insured)............................................... 6.00 02-01-10 235,881 245 Ellendale-Geneva Independent School District #762 (AMBAC Insured)............................................... 6.00 02-01-11 250,250 265 Ellendale-Geneva Independent School District #762 (AMBAC Insured)............................................... 6.00 02-01-12 269,876 280 Ellendale-Geneva Independent School District #762 (AMBAC Insured).............................................. 6.00 02-01-13 284,385 300 Ellendale-Geneva Independent School District #762 (AMBAC Insured)............................................... 6.00 02-01-14 303,879 320 Ellendale-Geneva Independent School District #762 (AMBAC Insured).............................................. 6.00 02-01-15 324,137 850 Farmington Independent School District #192 (MBIA Insured)....... 6.80 02-01-11 897,651 1,800 Hennepin County (MBIA Insured)................................... 5.75 10-01-10 1,822,194 1,900 Hopkins Independent School District #270 (MBIA Insured).......... 4.80 02-01-10 1,753,472 2,500 Hopkins Independent School District #270 (MBIA Insured).......... 4.85 02-01-12 2,277,600 3,875 Hopkins Independent School District #270 (MBIA Insured).......... 4.88 02-01-14 3,475,139 1,100 Mankato Independent School District #77 (FSA Insured)............ 5.20 02-01-10 1,068,672 475 Moorhead Independent School District #152 (AMBAC Insured)........ 5.90 02-01-10 481,422 505 Moorhead Independent School District #152 (AMBAC Insured)........ 5.90 02-01-11 510,813 540 Moorhead Independent School District #152 (AMBAC Insured)........ 5.90 02-01-12 545,135 575 Moorhead Independent School District #152 (AMBAC Insured)........ 6.00 02-01-13 581,601 1,930 North Branch Independent School District (FGIC Insured)......... 5.49 02-01-11 1,907,612 2,000 Prior Lake Independent School District #719 (FGIC Insured)....... 5.13 02-01-14 1,846,960 500 Roseau Independent School District #682 (AMBAC Insured).......... 7.00 02-01-16 529,375 1,860 Rosemount Independent School District #196 Zero Coupon (FSA Insured)................................................. 5.80(g) 04-01-09 924,643 2,240 Rosemount Independent School District #196 Series B Zero Coupon (FSA Insured)................................................. 5.85(g) 04-01-10 1,040,122 625 South St. Paul Independent School District #6 (FGIC Insured)..... 6.25 02-01-10 641,675 500 South St. Paul Independent School District #6 (FGIC Insured)..... 6.45 02-01-11 516,650 300 South St. Paul Independent School District #6 (FGIC Insured)..... 6.45 02-01-12 309,351 1,430 South Washington County Independent School District #833 (FGIC Insured)................................................ 6.13 06-01-09 1,472,871 2,720 South Washington County Independent School District #833 (FGIC Insured)................................................ 6.13 06-01-11 2,787,918 4,350 Spring Lake Park Independent School District #16 (MBIA Insured)............................................... 5.23 02-01-14 4,084,302 1,580 Spring Lake Park Independent School District #16 (MBIA Insured).. 5.20 02-01-09 1,544,308 1,000 St. Cloud Independent School District #742 (FGIC Insured)....... 6.05 02-01-09 1,033,190 1,845 St. Francis Independent School District #15 (FGIC Insured)....... 5.90 04-01-10 1,879,704 5,995 Stillwater Independent School District #834 (FGIC Insured)....... 5.50 02-01-10 5,966,404 3,960 Warroad Independent School District #690 (AMBAC Insured)......... 5.20 02-01-13 3,758,634 400 Western Lake Superior Series A (MBIA Insured).................... 6.00(l) 10-01-08 403,000 425 Western Lake Superior Series A (MBIA Insured).................... 6.10(e)(l) 10-01-09 428,188 450 Western Lake Superior Series A (MBIA Insured).................... 6.20(e)(l) 10-01-10 453,375 475 Western Lake Superior Series A (MBIA Insured).................... 6.20(e)(l) 10-01-11 478,563 7,625 White Bear Lake Independent School District #624 (FSA Insured)... 5.30 02-01-11 7,413,559 4,100 Willmar Independent School District #347 (AMBAC Insured)......... 6.25 02-01-15 4,205,616 ------------- 105,169,789 ------------ UTILITIES (7.1%): ------------------------------------------------------------------------------------------------------- 5,250 Bass Brook Pollution Control Revenue for Minnesota Power & Light Company (MBIA Insured).......................... 6.00 07-01-22 5,264,175 500 Marshall Utility Revenue (FSA Insured)........................... 6.45 07-01-10 530,845 100 Marshall Utility Revenue (FSA Insured)........................... 6.45 07-01-11 105,978 500 Marshall Utility Revenue (FSA Insured)........................... 6.50 07-01-12 529,835 500 Marshall Utility Revenue (FSA Insured)........................... 6.50 07-01-13 527,905 1,735 Moorhead Public Utilities (MBIA Insured)......................... 6.25 11-01-12 1,800,219 4,200 Northern Minnesota Municipal Power Agency Series B (AMBAC Insured)............................................... 5.50 01-01-18 4,046,322 1,500 Southern Minnesota Municipal Power Agency Power Supply Revenue (FGIC Insured)................................................ 5.73 01-01-18 1,478,685 1,000 Southern Minnesota Municipal Power Agency Revenue (MBIA Insured)................................................ 4.75 01-01-16 865,000 1,330 Southern Minnesota Municipal Power Agency (AMBAC Insured)........ 5.75 01-01-18 1,313,841 4,570 Southern Minnesota Municipal Power Agency (FGIC Insured)......... 5.75 01-01-18 4,514,474 ------------ 20,977,279 ------------ INDUSTRIAL (0.5%): ------------------------------------------------------------------------------------------------------- 1,500 Minnesota Public Facility Authority Water Pollution Control (MBIA Insured)................................................ 6.50 03-01-14 1,584,165 ----------- ------------ HEALTH CARE (20.9%): ------------------------------------------------------------------------------------------------------- 1,250 Bloomington Masonic Home Care Center (AMBAC Insured)............. 5.90 07-01-09 1,270,675 1,500 Brainerd Benedictine Health Care Systems (Connie Lee Insured).... 6.00 02-15-12 1,508,895 2,000 Brainerd Benedictine Health Care Systems(Connie Lee Insured)..... 6.00 02-15-20 1,979,920 1,630 Detroit Lakes Benedictine Health (Connie Lee Insured)............ 6.00 02-15-12 1,645,143 2,135 Detroit Lakes Benedictine Health (Connie Lee Insured)............ 6.00 02-15-19 2,128,809 2,690 Duluth EDA HealthCare-Duluth Clinic. (AMBAC Insured) ............ 6.30 11-01-22 2,757,062 10,000 Duluth EDA HealthCare -Duluth Clinic (Connie Lee Insured)........ 5.99 02-15-17 9,996,900 3,335 Duluth St. Luke's Hospital (Connie Lee Insured).................. 6.40 05-01-10 3,504,485 2,000 Duluth St. Luke's Hospital (Connie Lee Insured).................. 6.40 05-01-18 2,063,540 3,000 Minneapolis Fairview Hospital Series 91B (MBIA Insured).......... 6.50 01-01-11 3,170,550 3,750 Minneapolis Fairview Hospital Series 93A (MBIA Insured).......... 5.25 11-15-19 3,441,000 2,370 Minneapolis HRA HealthOne (MBIA Insured)......................... 7.40 08-15-11 2,601,075 12,190 Minneapolis/Saint Paul Healthspan Series 93A (AMBAC Insured)..... 5.00 11-15-13 11,051,332 3,625 Minneapolis/St. Paul HRA Childrens Hospital (FSA Insured)........ 5.70 08-15-16 3,555,695 3,100 Robbinsdale North Memorial Medical (AMBAC Insured)............... 5.45 05-15-13 2,967,940 5,400 Robbinsdale North Memorial Medical (AMBAC Insured)............... 5.50 05-15-23 5,082,588 2,500 St. Louis Park Healthcare Inverse Floater (AMBAC Insured)........ 6.47(m) 07-01-23 1,969,700 1,200 St. Paul Ramsey Medical (AMBAC Insured).......................... 5.50 05-15-13 1,161,504 ------------ 61,856,813 ------------ HOUSING (9.9%): ------------------------------------------------------------------------------------------------------- 3,257 Chaska Waters Edge Multifamily Revenue (GNMA Insured)............ 7.30 01-20-30 3,507,496 6,450 Dakota County HRA Single Family Mortgage Revenue (FNMA Insured)................................................ 6.70 10-01-17 6,640,146 200 Dakota, Washington and Stearns Counties HRA Single Family Mortgage Revenue (MBIA Insured).............................. 7.85(e) 12-01-30 211,226 3,790 Hopkins Multi Finance Housing-Auburn Apartments (GNMA Insured)................................................ 8.05 06-20-31 4,306,046 2,600 Minnesota Housing Finance Agency Single Family Housing Rental (AMBAC Insured)............................................... 5.95 02-01-15 2,592,616 400 Minnesota Housing Finance Agency Single Family Housing Series C (MBIA Insured)....................................... 9.00(e)(h) 08-01-18 417,680 180 Minnesota Housing Finance Agency Single Family Mortgage Revenue Series 1988C (MBIA Insured)........................... 8.50(e)(h) 07-01-19 188,320 345 Minnesota Housing Finance Agency Single Family Mortgage Revenue (AMBAC Insured)....................................... 7.95(e) 07-01-22 367,694 1,435 Minnesota Housing Finance Agency Single Family Mortgage Revenue (AMBAC Insured)....................................... 7.45(e) 07-01-22 1,506,291 510 Minnesota Housing Finance Agency Single Family Mortgage Revenue (AMBAC Insured)....................................... 7.05(e) 07-01-22 525,565 90 Minneapolis and St. Paul Housing Finance Board Housing Project Phase V (GNMA Collateral) .................................... 8.88(e) 11-01-18 95,013 1,330 Minneapolis and St. Paul Housing Finance Board Housing Project Phase IX (GNMA Collateral).................................... 7.25(e) 08-01-21 1,385,780 890 Minneapolis and St. Paul Housing Finance Board Housing Project Phase IX (GNMA Collateral).................................... 7.30(e) 08-01-31 925,146 180 Minneapolis and St. Paul Housing Finance Board Single Family Mortgage Revenue (GNMA Backed)................................ 8.13(e) 12-01-14 190,568 140 Minneapolis and St. Paul Housing Finance Board Single Family Mortgage Revenue (GNMA Backed)................................ 8.30(e) 08-01-21 146,958 4,000 St. Paul HRA Multifamily Housing (FNMA Backed)................... 6.60 10-01-12 4,140,680 2,410 South St. Paul HRA Single Family Mortgage Series 1993 (FNMA Insured)................................................ 5.75 09-01-20 2,325,987 ------------- 29,473,212 ------------ OTHER REVENUE (0.7%): ------------------------------------------------------------------------------------------------------- 2,000 Stearns County HRA Courthouse Project (AMBAC Insured)............ 7.00 02-01-11 2,127,500 ------------ TOTAL INVESTMENTS IN SECURITIES (cost: $285,371,590) (f) $293,065,384 ============
See accompanying notes to investments in securities.
VOYAGEUR MINNESOTA LIMITED TERM TAX FREE FUND INVESTMENTS IN SECURITIES (UNAUDITED) JUNE 30, 1996 - ------------------------------------------------------------------------------------------------------------------- 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 (97.7%): ESCROWED WITH U.S. GOVERNMENT BONDS (55.8%): ------------------------------------------------------------------------------------------------------- $1,205 Austin Independent School District #492 (MBIA Insured)........... 6.88% 02-01-01 $ 1,303,015 3,015 Braham Independent School District #314 (AMBAC Insured).......... 6.30 02-01-01 3,198,734 250 Duluth EDA St. Mary's............................................ 7.80 02-15-97 255,800 250 Duluth EDA St. Mary's............................................ 7.90 02-15-98 264,093 150 Duluth EDA St. Mary's............................................ 7.90 02-15-99 162,099 615 Eden Valley Watkins Independent School District #463 (FSA Insured)................................................. 6.60 02-01-02 666,396 250 Eden Valley Watkins Independent School District #463 (FSA Insured)................................................ 6.55 02-01-02 270,288 2,570 Mankato Independent School District #77 G.O. (FSA Insured)....... 6.35 02-01-02 2,744,657 1,410 Minneapolis Hennepin Avenue Series C G.O......................... 6.70 03-01-02(c) 1,542,047 400 Minneapolis/Saint Paul HealthOne Series C........................ 7.45 08-15-99 432,840 325 Minneapolis/Saint Paul HealthOne Series B........................ 7.55 08-15-00 358,767 4,000 Minnesota State.................................................. 6.25 08-01-02 4,304,600 800 Olmsted County................................................... 6.85 02-01-01 869,384 900 Olmsted County................................................... 6.90 02-01-01 979,884 950 Olmsted County Solid Waste Recovery.............................. 6.95 02-01-01 1,036,260 1,500 Rush City Independent School District #139 (AMBAC Insured)....... 6.30 02-01-01 1,591,410 5,805 St. Cloud Hospital (AMBAC Insured)............................... 7.00 07-01-01 6,466,015 500 St. Cloud Hospital Facility Revenue (AMBAC Insured).............. 7.00 07-01-01 556,935 215 St. James IDR Tony Downs Food Company Project.................... 8.00 08-01-96 215,685 3,500 St. Louis Park Methodist Hospital (AMBAC Insured)................ 7.25 07-01-00 3,881,115 3,000 Waconia Independent School District #110 (FGIC Insured).......... 6.40 02-01-00 3,156,930 4,000 Washington County Jail (MBIA Insured)............................ 7.00 02-01-02 4,411,600 ------------ 38,668,554 ----------- GENERAL OBLIGATION (6.5%): ------------------------------------------------------------------------------------------------------- 1,000 Eden Prairie Independent School District #272.................... 5.25 02-01-02 1,017,540 500 Edina Independent School District #273........................... 5.40 02-01-03 512,370 3,260 Lakeville Independent School District Zero Coupon................ 5.22(g) 02-01-06 1,964,248 810 North Branch Independent School District #138 Series A (FGIC Insured)................................................ 5.20 02-01-07 806,711 225 Western Lake Superior Sanitation District........................ 6.10 10-01-00 231,230 ------------ 4,532,099 ----------- UTILITIES (6.4%): ------------------------------------------------------------------------------------------------------- 2,500 Eveleth IDR for Minnesota Power & Light Company.................. 6.13 01-01-04 2,585,600 860 Northern Minnesota Municipal Power Agency........................ 7.20 01-01-99 912,125 1,000 Southern Minnesota Municipal Power Agency Revenue (FGIC Insured)................................................ 5.00 01-01-08 961,270 ------------ 4,458,995 ----------- INDUSTRIAL (12.7%): ------------------------------------------------------------------------------------------------------- 1,000 Brooklyn Center CDR Brookdale Association........................ 5.70 06-01-01 1,000,050 260 Duluth Convention Center......................................... 5.75 12-01-97 262,132 275 Duluth Convention Center......................................... 6.00 12-01-98 278,960 1,250 Duluth Convention Center......................................... 7.00 12-01-03 1,329,950 250 Duluth Gross Revenue Rec. Facility Duluth Entertainment.......... 7.30 12-01-06 270,047 1,720 Minnesota Public Facilities Authority Revenue Series A........... 6.55 03-01-03 1,867,301 1,175 Olmsted County Resource Recovery Series A........................ 5.90 02-01-05 1,219,509 300 St. Paul HRA Minnesota Public Radio, First Bank Letter of Credit. 6.40 06-01-98 309,963 100 St. Paul HRA Minnesota Public Radio, First Bank Letter of Credit. 6.60 06-01-99 105,164 2,000 St. Paul Minnesota CDR Fort Rd Med (Asset Guaranty).............. 7.50 09-01-02 2,138,680 ---------- 8,781,756 ----------- HEALTH CARE (2.9%): ------------------------------------------------------------------------------------------------------- 100 Fergus Falls Health Care Facility ............................... 6.20 11-01-05 98,463 200 Fergus Falls Health Care Facility................................ 6.30 11-01-06 196,708 200 Fergus Falls Health Care Facility................................ 6.40 11-01-07 197,164 240 Fergus Falls Health Care Facility................................ 6.60 11-01-09 235,889 260 Fergus Falls Health Care Facility................................ 6.70 11-01-10 256,513 200 Rochester Nursing Home & Multi Family Housing Revenue............ 5.60 05-01-02 197,348 250 Rochester Nursing Home & Multi Family Housing Revenue............ 5.80 05-01-03 248,313 300 Rochester Nursing Home & Multi Family Housing Revenue............ 6.00 05-01-04 298,236 250 Rochester Nursing Home & Multi Family Housing Revenue............ 6.10 05-01-05 248,395 ----------- 1,977,029 ----------- HOUSING (1.4%): ------------------------------------------------------------------------------------------------------- 580 Burnsville Multifamily Housing Revenue Burnsville Apts Project, TCF Letter of Credit.......................................... 7.00 09-01-99(c) 591,600 115 Eden Prairie Multifamily Mortgage Revenue - Section 8 Series 91.. 5.80 11-01-96 115,428 215 Mankato Multifamily Housing Hi Hills (Asset Guaranty)............ 7.75 10-01-97(c) 217,068 70 Minnesota HFA Single Family Mortgage Revenue Series C............ 6.30 01-01-99 72,258 ---------- 996,354 ----------- EDUCATION (9.6%): ------------------------------------------------------------------------------------------------------- 3,700 Minnesota Higher Education Facility Authority Augsburg Series 4F2.................................................... 5.75 05-01-16 3,656,562 3,000 Regents of University of Minnesota............................... 4.80 08-15-03 2,962,500 ---------- 6,619,062 ----------- CERTIFICATES OF PARTICIPATION (0.1%): ------------------------------------------------------------------------------------------------------- 47 Red Wing Pottery Project......................................... 7.75(k) 12-15-97 47,456 ------------ OTHER REVENUE (2.3%): ------------------------------------------------------------------------------------------------------- 225 Minneapolis CDA Limited Tax Revenue - Common Bond Fund........... 7.90 06-01-97 231,230 1,290 Richfield Minnesota, Richfield Shoppes........................... 7.50 10-01-04 1,362,562 ----------- 1,593,792 TOTAL INVESTMENTS IN SECURITIES (cost: $65,668,620) (f) $67,675,097 ===========
See accompanying notes to investments in securities. VOYAGEUR MINNESOTA HIGH YIELD FUND 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) This security, representing 1.06% of total net assets, has been identified by portfolio management as an illiquid security. (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 (unaudited) as a percentage of total bonds, are as follows:
Non- Aaa/AAA Aa/AA A/A Baa/BBB rated Total ------- ----- --- ------- ----- ----- Minnesota High Yield Fund................... 49% 31% 10% -- 10% 100% Minnesota Tax Free Fund..................... 62% 10% 12% 7% 9% 100% Minnesota Insured Fund...................... 100% -- -- -- -- 100% Minnesota Limited Term Tax Free Fund........ 62% 15% 5% 9% 9% 100%
(e) These securities are subject to the Alternative Minimum Tax. The aggregate market value of securities subject to the Alternative Minimum Tax is equal to 15.2% of total net assets for Minnesota Insured Fund. (f) Also represents the cost of securities for federal income tax purposes for Minnesota Tax Free Fund and Minnesota Limited Term Tax Free Fund. The cost of securities for federal income tax purposes for Minnesota Insured Fund is $285,371,590. The aggregate gross unrealized appreciation and depreciation in securities based on these costs are as follows:
Gross Gross Net Unrealized Unrealized Unrealized Appreciation Depreciation Appreciation ------------ ------------ ------------ Minnesota High Yield Fund................... $ 15,206 $ (982) $ 14,224 Minnesota Tax Free Fund..................... 14,104,567 (3,164,858) 10,939,709 Minnesota Insured Fund...................... 9,318,319 (2,068,024) 7,250,295 Minnesota Limited Term Tax Free Fund........ 2,135,953 (129,476) 2,006,477
(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, 1996 the principal amount of issue in default amounted to $1,000,000 for Minnesota Tax Free Fund. However, this issue is in default as to the timely receipt of principal but is 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 of original par of West St. Paul Commercial Mortgage (K-Mart) 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 are considered illiquid and are equal to 1.0% of total 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 of original par of Red Wing Pottery Project with a par value and cost basis of $47,456 as of June 30, 1996. This private placement represents all of the restricted illiquid securities owned by the Fund and is equal to 0.1% of total net assets. (l) At June 30, 1996, the cost of securities purchased on a when issued basis was $197,160 for Minnesota High Yield Fund, $2,350,000 for Minnesota Tax Free Fund and $1,750,000 for Minnesota Insured Fund. (m) Inverse floater, represents a security that pays interest at rates that increase (decrease) with a decline (increase) in a general money market index. Interest rate disclosed is the rate in effect on June 30, 1996. INVESTMENT ADVISER, TRANSFER AGENT, DIVIDEND DISBURSING AGENT AND ACCOUNTING SERVICES AGENT Voyageur Fund Managers, Inc. 90 South Seventh Street, Suite 4400 Minneapolis, MN 55402 UNDERWRITER Voyageur Fund Distributors, Inc. 90 South Seventh Street, Suite 4400 Minneapolis, MN 55402 CUSTODIAN Norwest Bank Minnesota, N.A. Sixth Street & Marquette Avenue Minneapolis, MN 55479 GENERAL COUNSEL Dorsey & Whitney P.L.L.P. Minneapolis, MN 55402 AUDITORS KPMG Peat Marwick LLP Minneapolis, MN 55402 [LOGO] VOYAGEUR ON CALL (TM) [LINE DRAWING: TELEPHONE RINGING] 800.545.3863 We invite you to use the Voyageur interactive voice response system, Voyageur On Call (TM) (800.545.3863). The system is designed to give you information about the Fund(s) in your account. It can also provide price and yield information for the Fund(s). 24-hour access available to Touch Tone telephones only. [LOGO] Voyageur Your tax sensitive investment manager 90 South Seventh Street, Suite 4400 Minneapolis, Minnesota 55402-4115 -----END PRIVACY-ENHANCED MESSAGE-----