-----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, VYaA//C3pX1MhsQJaZGTvL07PeUAq4Sfu8SBfzdafZAN4fmMRxC5gaLQnE6o8gle Lwq+D4T3LjDEkqy4onYnvw== 0000897101-97-000232.txt : 19970303 0000897101-97-000232.hdr.sgml : 19970303 ACCESSION NUMBER: 0000897101-97-000232 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19961231 FILED AS OF DATE: 19970228 SROS: NONE 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: 97546568 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 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: 97546569 BUSINESS ADDRESS: STREET 1: 90 SOUTH SEVENTH STREET STREET 2: SUITE 4400 CITY: MINNEAPOLIS STATE: MN ZIP: 55402 BUSINESS PHONE: 6123767000 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 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: 97546570 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: 97546571 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 N-30D 1 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 ANNUAL REPORT DATED DECEMBER 31, 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 NATIONAL 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 NEW YORK Tax Free Fund Voyageur IDAHO Tax Free Fund Voyageur NORTH DAKOTA Tax Free Fund Voyageur IOWA Tax Free Fund Voyageur UTAH Tax Free Fund Voyageur KANSAS Tax Free Fund Voyageur WISCONSIN Tax Free Fund
VOYAGEUR INSURED TAX FREE FUNDS seek high current income free from both Federal income taxes and state income taxes (where applicable) with the added safety of an insured portfolio. The Funds invest in insured municipal bonds. Voyageur ARIZONA Insured Tax Free Fund Voyageur MISSOURI Insured Tax Free Fund Voyageur CALIFORNIA Insured Tax Free Fund Voyageur NATIONAL Insured Tax Free Fund Voyageur FLORIDA Insured Tax Free Fund Voyageur OREGON Insured Tax Free Fund Voyageur MINNESOTA Insured Fund Voyageur WASHINGTON Insured Tax Free Fund
VOYAGEUR LIMITED TERM FUNDS seek to preserve original investment principal while providing income free from both Federal income taxes and state income taxes (where applicable). The Funds invest in intermediate term investment grade municipal bonds. Voyageur FLORIDA Limited Term Tax Free Fund Voyageur 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: The year 1996 was marked with mixed economic events. During the first half of the year, interest rates rose steadily, propelled by market fears that faster Gross Domestic Product (GDP) growth would ignite inflation. Once these fears abated in June, interest rates began a descent that lasted throughout most of the remainder of the year. In comparison to their peer group of funds, the overall performance of the Voyageur Tax Free Funds was excellent in 1996. The main reason for this strong performance was Voyageur portfolio managers' subtle shift toward adding income to the portfolios. This additional income allowed us to better position the Funds during the first half of the year when interest rates were rising and municipal bond prices were falling. Within all of our Tax Free Funds, we continued to extend call protection, where possible, in order to better provide for income for longer periods of time. In January 1997, Lincoln National Corporation (NYSE: LNC) announced that it planned to acquire the parent company of Voyageur Fund Managers, Inc. -- the investment adviser for the Voyageur Tax Free Funds. LNC, with headquarters in Fort Wayne, Indiana, is a diversified organization with operations in many aspects of the financial services industry, including insurance and investment management. Delaware Management Company, Inc. (DMC), an indirect wholly owned subsidiary of LNC, and its affiliate, Delaware International Advisers Ltd., serve as the investment advisers to the investment companies in the Delaware Group of Funds (the Delaware Group), which currently includes 16 open-end funds and two closed-end funds (comprising 48 separate investment portfolios). DMC through its Delaware Investment Advisers division, Delaware International Advisers Ltd. and certain other subsidiaries of Delaware Management Holdings, Inc. (DMH) also provides investment advice with respect to separately managed accounts of institutional and other clients. DMH, through its subsidiaries, is responsible for the management of approximately $32 billion. Voyageur Fund shareholders should benefit from this acquisition by being able to select from a wider variety of mutual funds in the expanded Delaware-Voyageur fund family. Delaware Management, like Voyageur, has a conservative, long-term investment philosophy. The continuity in the Voyageur Tax Free Funds' management styles should also be further maintained since Andrew M. McCullagh and Elizabeth Howell, two of the senior municipal bond portfolio managers for the Voyageur Tax Free Funds, will continue to play a key role in the management of the Voyageur Tax Free Funds after the transition. We appreciate your patronage and confidence in Voyageur Fund Managers. If at any time you have questions about your Voyageur fund investment, I urge you to contact your personal financial adviser or Voyageur Client Service representatives are available from 7 a.m. to 6 p.m. (Central Standard Time) to answer any questions you may have concerning this transaction or your Voyageur fund investment. Sincerely, /s/ John G. Taft John G. Taft President Voyageur Minnesota High Yield Municipal Bond Fund Voyageur Minnesota Tax Free Fund Voyageur Minnesota Insured Fund Voyageur 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 YEARS OF INVESTMENT INDUSTRY EXPERIENCE. In the first half of the year, bond prices fell as yields rose. Economic data during this period showed surprising strength in the domestic economy and raised the specter of inflation. During the summer, bond yields stabilized as investors became increasingly confident that Federal Reserve Chairman Alan Greenspan would monitor and tweak short-term interest rates in order to achieve a moderate economic growth and low inflation. The flat tax debate which stimulated a great deal of discussion and speculation in political and economic circles in 1995 and early 1996, lost momentum and largely faded away after the election. The tax-exempt bond market finished the year with modest, positive total returns. Municipal securities outperformed taxable bonds throughout 1996. The high yield sector and short duration funds produced the best performance within the fixed income markets. For the period ended December 31, 1996, the total return at net asset value (NAV) for the class A shares of the Voyageur Minnesota High Yield Municipal Bond Fund was 5.40%* (inception June 4, 1996 through December 31, 1996). Since inception in June 1996, this Fund has produced competitive total returns. In a year when the general level of interest rates fluctuated up and down, this Fund was able to produce an above market rate of income and thereby post better-than-average total returns. In the time since its inception, we have been able to identify and purchase several high-yield issues in the Minnesota marketplace. We have chosen to purchase higher-yielding, lower-rated securities that we believe offer good long-term investment prospects. The securities we have bought are ones that we believe -- based on our credit research and continuous monitoring of credit risk -- are economically viable. The projects in which we have made an investment are well diversified across municipal industries as well as geographically within the state of Minnesota. The Fund's holdings are diversified in a variety of municipal sectors within the state of Minnesota with the strongest emphasis on the health care and housing sectors. OUTLOOK Overall, the U.S. economy is still showing signs of moderate growth and moderate inflation. Our outlook for the municipal market continues to be favorable, and we expect interest rates to decline over the long term. The Minnesota economy continues to be strong. The economy is well diversified in comparison to other states and has historically been less cyclical than that of the coasts. As a result, the overall credit quality of Minnesota bonds is very good. *PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. HIGH YIELDING INVESTING INVOLVES UNIQUE RISKS. REFER TO THE "RISKS AND SPECIAL INVESTMENT CONSIDERATIONS" SECTION OF THE FUND'S PROSPECTUS FOR A MORE COMPLETE DESCRIPTION OF CREDIT RISK. 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. *PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. INSURANCE PERTAINS ONLY TO THE TIMELY PAYMENT OF PRINCIPAL AND INTEREST BY THE SECURITIES IN THE VOYAGEUR MINNESOTA INSURED 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. In the first half of the year, bond prices fell as yields rose. Economic data during this period showed surprising strength in the domestic economy and raised the specter of inflation. During the summer, bond yields stabilized as investors became increasingly confident that Federal Reserve Chairman Alan Greenspan would monitor and tweak short-term interest rates in order to achieve a moderate economic growth and low inflation. The flat tax debate which stimulated a great deal of discussion and speculation in political and economic circles in 1995 and early 1996, lost momentum and largely faded away after the election. The tax-exempt bond market finished the year with modest, positive total returns. Municipal securities outperformed taxable bonds throughout 1996. The high yield sector and short duration funds produced the best performance within the fixed income markets. VOYAGEUR MINNESOTA TAX FREE FUNDS For the year ended December 31, 1996, the total returns at net asset value (NAV) for the class A shares of the Voyageur Minnesota Tax Free Funds were as follows: Voyageur Minnesota Insured Fund 3.75%*; Voyageur Minnesota Tax Free Fund 3.33%*; and Voyageur Minnesota Limited Term Tax Free Fund 3.46%.* VOYAGEUR MINNESOTA INSURED FUND A key objective in 1996 for the Voyageur Minnesota Insured Fund was to add incremental yield to the portfolios. To achieve this objective, we allocated a greater percentage of the Fund's assets to housing bonds. Housing bonds are generally believed to produce a greater amount of coupon income to the portfolio. The state of Minnesota has an active market for housing bonds; we were able to purchase both new issue insured housing bonds as well as insured housing bonds in the secondary market for the Voyageur Minnesota Insured Fund. The portfolio remains well diversified by sector and individual issues, and the average credit quality is Aaa/AAA. VOYAGEUR MINNESOTA TAX FREE FUND Adding incremental yield to the portfolio was an important objective for the Voyageur Minnesota Tax Free Fund. We achieved this objective by purchasing more housing bonds which are known to produce a greater amount of coupon income; we also purchased a select number of higher yielding municipal revenue bonds for the portfolio. By increasing these two sector allocations, we were able to add more income and reduce a corresponding amount of price volatility. In addition to this important strategy, the portfolio remains well diversified by sector and individual issues.-inue to maintain an average credit quality of A+ to AA. VOYAGEUR MINNESOTA LIMITED TERM TAX FREE FUND The Voyageur Minnesota Limited Term Tax Free Fund performed very well in 1996. Given the volatility in the bond market, short and intermediate -- including the Voyageur Minnesota Limited Term Tax Free Fund -- municipal bond funds performed as well as longer-term bond funds, but did so with considerably less price volatility. Throughout the year, we maintained high average credit quality of Aa/AA, held non-callable bonds, and held high coupon bonds. All of these factors contributed to our strong total return and helped the portfolio minimize price volatility. The Fund has a high -- more than 50% -- allocation in pre-refunded bonds. These pre-refunded bonds, which are backed by U.S. Treasury bonds, are noted for their extremely high credit quality and defensive performance characteristics. OUTLOOK Overall, the U.S. economy is still showing signs of moderate growth and moderate inflation. Our outlook for the municipal market continues to be favorable, and we expect interest rates to decline over the long term. The Minnesota economy continues to be strong. The economy is well diversified in comparison to other states and has historically been less cyclical than that of the coasts. As a result, the credit quality of our Minnesota bonds remains excellent, and these Funds' holdings are diversified in a wide variety of municipal sectors within the state of Minnesota. VOYAGEUR MINNESOTA HIGH YIELD MUNICIPAL BOND FUND Portfolio Abstract For the Period Ended December 31, 1996 CLASS A SHARES [GRAPH]
MN High Yield Municipal Bond MN High Yield Municipal Bond Lehman Bros. 20 Without Sales Charge With Sales Charge Year Municipal Bond Index June-96 10000 9625 10000 10094 9715 10000 10137 9757 10186 10109 9730 10184 10254 9870 10326 10400 10010 10443 10516 10122 10634 Dec-96 10539 10144 10589
Voyageur Minnesota High Yield Fund Without Sales Charge - Ending Value $10,540 Voyageur Minnesota High Yield Fund With Sales Charge - Ending Value $10,145 Lehman Bros. Municipal Bond Index - Ending Value $10,590 The Lehman Bros. Municipal Bond Index is a broad, unmanaged index of securities of United States Municipalities. The index assumes that no operating expenses, transaction fees or sales loads are incurred by a hypothetical investor who directly owns the securities maintained in the index. In order to outperform an index over any specific time frame, a fund must return to investors an amount greater than that provided by the index plus total operating expenses. For this reason, few fixed income funds are able to outperform broad market indices over the long term. The chart above is comprised of data that represents the cumulative total return of a hypothetical investment in Class A Shares of $10,000 made on the date the Fund commenced operations through December 31, 1996. The performance of separate classes will vary based on the differences in sales loads and distribution fees paid by shareholders investing in the different classes. Performance quoted represents past performance and is not indicative of future results. * Average annual total returns include the maximum 3.75% sales charge. ** Commencement of operations. *** Assumes redemption on December 31, 1996 Voyageur Minnesota High Yield Municipal Bond Fund Total Returns (Class A Shares) Since 6/4/96** Without Sales Charge 5.40% With Sales Charge* 1.45% Lehman Bros. 5.90% Municipal Bond Index Voyageur Minnesota High Yield Municipal Bond Fund Total Returns (Class B Shares) Since 6/12/96** Without Contingent 7.29% Deferred Sales Charge With Contingent 2.29% Deferred Sales Charge*** Voyageur Minnesota High Yield Municipal Bond Fund Total Returns (Class C Shares) Since 6/7/96** 5.02% Quality Breakdown [PIE GRAPH] Ba/BB 3% B/B 7% Aa/AA 7% Aaa/AAA 9% A/A 16% Baa/BBB 17% NR/NR 41% Sector Breakdown (shown as % of total net assets) Health Care 43.9% Housing 38.3% Utilities 10.4% Lease/C.O.P. 6.0% General Obligation 4.2% Other Revenue 3.8% Industrial 2.9% Education 2.1% Statistics Average Maturity 12.5 Years Average Coupon 6.57% Portfolio Duration 7.8 Years Average Quality B/B VOYAGEUR MINNESOTA TAX FREE FUND Portfolio Abstract For the Period Ended December 31, 1996 Class A Shares [GRAPH]
MN Tax Free MN Tax Free Lehman Bros. 20 Without Sales Charge With Sales Charge Year Municipal Bond Index 10000 9625 10000 Feb-84 10029 9653 9989 10096 9717 9969 9949 9576 10008 9881 9511 9320 10285 9899 9505 10484 10091 10031 10594 10197 10258 10828 10421 10214 10679 10278 10320 Dec-84 11063 10648 10463 11369 10943 10676 11448 11019 11289 11420 10992 11000 11868 11423 11098 12157 11701 11513 12326 11864 11970 12184 11727 12120 12408 11942 12096 12349 11885 12030 12621 12148 11934 12941 12456 12333 Dec-85 13239 12743 12782 13620 13109 13008 13859 13339 13831 14095 13567 14458 14158 13627 14407 14082 13554 14386 14093 13565 14100 14232 13699 14198 14523 13978 14320 14644 14095 15095 14903 14344 15056 15060 14495 15282 Dec-86 15244 14672 15627 15452 14873 15582 15584 15000 16135 15604 15019 16151 15065 14500 15993 14945 14385 15059 15219 14648 14944 15356 14780 15369 15427 14849 15513 15085 14519 15581 14843 14287 15052 15259 14687 15065 Dec-87 15409 14832 15455 15850 15256 15686 16008 15408 16373 15959 15360 16591 16031 15430 16292 16067 15464 16432 16358 15745 16429 16398 15783 16747 16496 15877 16890 16742 16114 16913 16964 16328 17309 16958 16322 17697 Dec-88 16998 16360 17554 17291 16642 17787 17203 16558 18244 17206 16561 18024 17419 16766 17982 17702 17038 18477 17992 17317 18916 18135 17455 19160 18131 17451 19427 18065 17388 19221 18261 17576 19079 18395 17705 19374 Dec-89 18545 17850 19729 18554 17858 19871 18649 17950 19708 18743 18040 19903 18664 17964 19945 18851 18144 19753 19023 18310 20259 19210 18490 20421 19082 18366 20762 19159 18441 20341 19319 18595 20316 19627 18891 20690 Dec-90 19849 19104 21183 19959 19210 21286 20155 19399 21544 20250 19490 21721 20361 19598 21738 20530 19760 22053 20646 19872 22283 20831 20050 22218 21070 20280 22542 21310 20511 22844 21480 20674 23155 21614 20803 23382 Dec-91 22039 21212 23419 22065 21237 23918 22182 21351 23968 22207 21375 23978 22324 21487 24036 22459 21616 24262 22780 21926 24579 23441 22562 25032 23291 22418 25928 23445 22566 25604 23199 22329 25732 23585 22701 25366 Dec-92 23795 22902 26011 24147 23241 26351 24814 23884 26633 24835 23904 27763 24973 24037 27521 25212 24267 27868 25532 24575 28099 25492 24536 28616 26015 25039 28651 26419 25428 29335 26498 25505 29705 26353 25364 29758 Dec-93 26815 25809 29431 26997 25985 30140 26425 25434 30520 25532 24575 29614 25418 24465 28053 25684 24721 28283 25545 24587 28617 25879 24908 28331 25933 24960 28979 25576 24617 29061 25107 24166 28479 24549 23628 27727 Dec-94 25009 24071 27079 25769 24803 27929 26644 25645 29021 26829 25823 30074 26857 25850 30417 27719 26679 30411 27408 26380 31558 27506 26474 31072 27741 26701 31233 28046 26994 31661 28444 27377 31911 29028 27940 32591 Dec-95 29383 28281 33311 29553 28445 33778 29369 28267 33950 28738 27660 33563 28646 27572 33026 28674 27599 32864 28896 27812 32933 29166 28072 33398 29244 28147 33725 29637 28525 33671 29959 28835 34351 30476 29333 34763 Dec-96 30361 29223 35490
Voyageur Minnesota Tax Free Fund Without Sales Charge - Ending Value $30,362 Voyageur Minnesota Tax Free Fund With Sales Charge - Ending Value $29,223 Lehman Bros. 20 Year Municipal Bond Index - Ending Value $35,281 The Lehman Bros. 20 Year Municipal Bond Index is a broad, unmanaged index of securities of United States Municipalities. The index assumes that no operating expenses, transaction fees or sales loads are incurred by a hypothetical investor who directly owns the securities maintained in the index. In order to outperform an index over any specific time frame, a fund must return to investors an amount greater than that provided by the index plus total operating expenses. For this reason, few fixed income funds are able to outperform broad market indices over the long term. The chart above is comprised of data that represents the cumulative total return of a hypothetical investment in Class A Shares of $10,000 made on the date the Fund commenced operations through December 31, 1996. The performance of separate classes will vary based on the differences in sales loads and distribution fees paid by shareholders investing in the different classes. Performance quoted represents past performance and is not indicative of future results. * Average annual total returns include the maximum 3.75% sales charge. ** Commencement of operations. *** Assumes redemption on December 31, 1996 Voyageur Minnesota Tax Free Fund Average Annual Total Returns (Class A Shares) 1 5 10 Since Year Years Years 2/27/84** Without Sales Charge 3.33% 6.61% 7.12% 9.03% With Sales Charge* (0.54%) 5.80% 6.72% 8.70% Lehman Bros. 20 4.45% 8.08% 8.52% 10.32% Year Municipal Bond Index Voyageur Minnesota Tax Free Fund Average Annual Total Returns (Class B Shares) Since 1 Year 3/11/95** Without Contingent 2.83% 7.00% Deferred Sales Charge With Contingent (2.17%) 4.90% Deferred Sales Charge*** Voyageur Minnesota Tax Free Fund Average Annual Total Returns (Class C Shares) Since 1 Year 5/4/94** 2.64% 6.04% Quality Breakdown [PIE CHART] Baa/BBB 9% NR/NR 10% Aa/AA 12% A/A 15% Aaa/AAA 54% Sector Breakdown (shown as % of total net assets) Health Care 22.8% General Obligation 20.4% Utilities 17.7% Housing 15.5% Pre-Refunded/Escrow 9.2% Industrial 8.8% Education 2.9% Other Revenue 1.7% Lease/C.O.P. 0.4% Statistics Average Maturity 13.3 Years Average Coupon 6.05% Portfolio Duration 8.3 Years Average Quality A/A VOYAGEUR MINNESOTA INSURED FUND Portfolio Abstract For the Period Ended December 31, 1996 Class A Shares [GRAPH]
MN Insured MN Insured Lehman Bros. Long Without Sales Charge With Sales Charge Insured Municipal Bond Index 10000 9625 10000 May-87 9912 9540 9924 10131 9751 10205 10209 9826 10301 10244 9859 10347 10029 9653 9995 9793 9426 10004 10072 9695 10263 Dec-87 10148 9767 10416 10454 10062 10872 10558 10162 11017 10515 10120 10818 10560 10164 10911 10589 10192 10909 10763 10360 11121 10795 10390 11215 10861 10453 11231 11055 10640 11494 11196 10776 11751 11202 10782 11656 Dec-88 11233 10812 11811 11405 10977 12115 11380 10953 11968 11363 10937 11941 11540 11107 12269 11734 11294 12561 11899 11452 12723 11984 11535 12900 12013 11563 12763 11968 11519 12669 12085 11632 12865 12163 11707 13101 Dec-89 12240 11781 13195 12294 11833 13087 12355 11892 13216 12413 11947 13244 12358 11895 13117 12488 12019 13453 12582 12110 13560 12708 12232 13787 12626 12153 13507 12607 12134 13491 12703 12227 13739 12942 12457 14066 Dec-90 13057 12567 14135 13103 12612 14306 13232 12736 14423 13279 12781 14435 13354 12853 14644 13471 12965 14796 13532 13024 14753 13691 13177 14969 13850 13331 15169 14052 13525 15376 14184 13653 15526 14245 13711 15551 Dec-91 14570 14024 15883 14574 14027 15916 14621 14073 15922 14640 14091 15960 14746 14193 16111 14852 14295 16322 15092 14526 16622 15587 15002 17217 15438 14859 17002 15545 14962 17087 15394 14817 16844 15668 15081 17272 Dec-92 15818 15225 17498 16096 15492 17686 16576 15954 18435 16513 15894 18275 16621 15998 18505 16809 16179 18659 17061 16421 19002 17028 16390 19025 17393 16741 19480 17664 17002 19725 17759 17093 19761 17660 16998 19543 Dec-93 18000 17325 20014 18128 17448 20266 17747 17082 19665 17100 16458 18628 17012 16374 18781 17139 16496 19003 17032 16393 18813 17329 16679 19243 17256 16609 19297 17012 16374 18911 16630 16007 18412 16213 15605 17981 Dec-94 16582 15960 18546 17161 16518 19271 17795 17128 19971 17925 17252 20198 17966 17293 20194 18466 17774 20955 18315 17628 20633 18393 17703 20740 18419 17728 21024 18713 18011 21190 18954 18243 21642 19284 18561 22120 Dec-95 19488 18757 22430 19639 18903 22544 19533 18800 22287 19170 18451 21930 19118 18401 21843 19141 18423 21869 19278 18555 22177 19452 18722 22395 19514 18782 22359 19708 18969 22810 19960 19211 23084 20269 19509 23567 Dec-96 20219 19461 23428
Voyageur Minnesota Insured Tax Free Fund Without Sales Charge - Ending Value $20,219 Voyageur Minnesota Insured Tax Free Fund With Sales Charge - Ending Value $19,461 Lehman Bros. 20 Year Municipal Bond Index - Ending Value $23,428 The Lehman Bros. 20 Year Municipal Bond Index is a broad, unmanaged index of securities of United States Municipalities. The index assumes that no operating expenses, transaction fees or sales loads are incurred by a hypothetical investor who directly owns the securities maintained in the index. In order to outperform an index over any specific time frame, a fund must return to investors an amount greater than that provided by the index plus total operating expenses. For this reason, few fixed income funds are able to outperform broad market indices over the long term. The chart above is comprised of data that represents the cumulative total return of a hypothetical investment in Class A Shares of $10,000 made on the date the Fund commenced operations through December 31, 1996. The performance of separate classes will vary based on the differences in sales loads and distribution fees paid by shareholders investing in the different classes. Performance quoted represents past performance and is not indicative of future results. * Average annual total returns include the maximum 3.75% sales charge. ** Commencement of operations. *** Assumes redemption on December 31, 1996 Voyageur Minnesota Insured Fund Average Annual Total Returns (Class A Shares) 1 5 Since Year Years 5/1/87** Without Sales Charge 3.75% 6.76% 7.54% With Sales Charge* (0.14%) 5.95% 7.12% Lehman Bros. 20 4.45% 8.08% 9.19% Year Municipal Bond Index Voyageur Minnesota Insured Fund Average Annual Total Returns (Class B Shares) Since 1 Year 3/7/95** Without Contingent 3.03% 6.88% Deferred Sales Charge With Contingent (1.97%) 4.79% Deferred Sales Charge*** Voyageur Minnesota Insured Fund Average Annual Total Returns (Class C Shares) Since 1 Year 5/4/94** 2.98% 5.84% Quality Breakdown [PIE CHART] Aa/AA 1% Aaa/AAA 99% Sector Breakdown (shown as % of total net assets) General Obligation 32.2% Pre-Refunded/Escrow 24.2% Health Care 18.2% Utilities 11.9% Housing 10.1% Lease/C.O.P. 0.7% Industrial 0.5% Other 0.4% Statistics Average Maturity 11.5 Years Average Coupon 6.34% Portfolio Duration 7.4 Years Average Quality Aaa/AAA VOYAGEUR MINNESOTA LIMITED TERM TAX FREE FUND Portfolio Abstract For the Period Ended December 31, 1996 Class A Shares [GRAPH]
MN Limited Term Tax MN Limited Term Tax Lehman Bros. 3 Free Without Sales Charge Free With Sales Charge Year Municipal Bond Index Oct-95 10000 9725 10000 10004 9728 10020 10274 9991 10128 Dec-85 10324 10040 10015 10417 10130 10407 10511 10222 10523 10609 10317 10656 10664 10371 10717 10721 10426 10715 10755 10459 10814 10818 10521 10795 10947 10646 10907 11006 10703 10969 11091 10786 11120 11158 10851 11187 Dec-86 11209 10901 11176 11310 10999 11320 11365 11053 11380 11392 11078 11390 11214 10906 11209 11223 10914 11225 11305 10994 11446 11393 11080 11495 11464 11149 11491 11381 11068 11324 11360 11048 11473 11489 11173 11529 Dec-87 11543 11225 11621 11651 11331 11840 11721 11399 11918 11788 11464 11918 11845 11520 12006 11861 11534 11930 11934 11606 11992 11974 11645 12030 12002 11671 11970 12055 11723 12081 12151 11817 12152 12180 11845 12141 Dec-88 12201 11865 12157 12255 11918 12291 12258 11921 12221 12246 11909 12166 12324 11985 12327 12459 12116 12495 12571 12225 12637 12653 12305 12783 12718 12368 12769 12759 12408 12804 12846 12493 12906 12908 12553 13025 Dec-89 12985 12628 13099 13041 12682 13137 13100 12739 13215 13166 12804 13212 13160 12798 13219 13250 12886 13385 13343 12976 13489 13447 13077 13604 13481 13110 13610 13540 13168 13655 13619 13245 13791 13737 13359 13949 Dec-90 13841 13460 14023 13902 13520 14204 14031 13645 14321 14093 13706 14335 14171 13781 14469 14263 13871 14545 14328 13934 14560 14433 14037 14674 14568 14167 14813 14689 14285 14941 14767 14361 15037 14872 14463 15124 Dec-91 15119 14703 15415 15155 14738 15491 15240 14821 15489 15188 14770 15471 15264 14844 15585 15368 14945 15710 15501 15075 15884 15738 15305 16199 15801 15366 16113 15908 15470 16235 15914 15476 16214 16035 15594 16350 Dec-92 16120 15676 16453 16283 15836 16575 16538 16083 16834 16537 16083 16780 16657 16199 16872 16685 16226 16924 16789 16327 17024 16771 16310 17021 16982 16515 17176 17102 16632 17246 17131 16660 17281 17100 16629 17267 Dec-93 17391 16913 17452 17512 17030 17600 17226 16753 17420 16892 16428 17213 16965 16499 17339 17055 16586 17420 17050 16581 17413 17204 16731 17554 17263 16788 17619 17161 16689 17577 17061 16592 17547 16898 16433 17547 Dec-94 17058 16589 17586 17236 16762 17702 17544 17062 17874 17691 17205 18077 17792 17302 18137 18159 17659 18424 18213 17712 18468 18335 17831 18682 18475 17967 18820 18582 18071 18860 18690 18176 18931 18863 18345 19051 Dec-95 18936 18415 19138 19145 18618 19324 19095 18570 19310 18891 18372 19278 18859 18340 19297 18863 18344 19299 18939 18418 19420 19050 18526 19527 19109 18583 19560 19221 18692 19682 19386 18853 19821 19568 19030 20008 Dec-96 19590 19052 20018
Voyageur Minnesota Limited Term Tax Free Fund Without Sales Charge - Ending Value $19,591 Voyageur Minnesota Limited Term Tax Free Fund With Sales Charge - Ending Value $19,052 Lehman Bros. 3 Year Municipal Government Obligation Index - Ending Value $20,018 The Lehman Bros. 3 Year Municipal Government Obligation Index is a broad, unmanaged index of securities of United States Municipalities. The index assumes that no operating expenses, transaction fees or sales loads are incurred by a hypothetical investor who directly owns the securities maintained in the index. In order to outperform an index over any specific time frame, a fund must return to investors an amount greater than that provided by the index plus total operating expenses. For this reason, few fixed income funds are able to outperform broad market indices over the long term. The chart above is comprised of data that represents the cumulative total return of a hypothetical investment in Class A Shares of $10,000 made on the date the Fund commenced operations through December 31, 1996. The performance of separate classes will vary based on the differences in sales loads and distribution fees paid by shareholders investing in the different classes. Performance quoted represents past performance and is not indicative of future results. * Average annual total returns include the maximum 2.75% sales charge. ** Commencement of operations. *** Assumes redemption on December 31, 1996 Voyageur Minnesota Limited Term Tax Free Fund Average Annual Total Returns (Class A Shares) 1 5 10 Since Year Years Years 10/27/85** Without Sales Charge 3.46% 5.31% 5.74% 6.19% With Sales Charge* 0.61% 4.72% 5.44% 5.93% Lehman Bros. 3 4.60% 5.36% 6.00% 6.40% Year Municipal Goverment Obligation Index Voyageur Minnesota Limited Term Tax Free Fund Average Annual Total Returns (Class B Shares) Since 1 Year 8/15/95** Without Contingent 2.74% 4.37% Deferred Sales Charge With Contingent (1.26%) 2.22% Deferred Sales Charge*** Voyageur Minnesota Limited Term Tax Free Fund Average Annual Total Returns (Class C Shares) Since 1 Year 5/4/94** 2.69% 4.73% Quality Breakdown [PIE CHART] A/A 9% Aa/AA 10% NR/NR 10% Baa/BBB 18% Aaa/AAA 53% Sector Breakdown (shown as % of total net assets) Pre-Refunded/Escrow 51.2% Industrial 16.6% Health Care 9.2% Education 8.3% Utilities 5.2% Lease/C.O.P. 3.7% General Obligation 3.7% Other Revenue 2.2% Housing 1.3% Statistics Average Maturity 5.7 Years Average Coupon 6.49% Portfolio Duration 4.6 Years Average Quality A/A (This page left blank intentionally.) INDEPENDENT AUDITORS' REPORT The Board of Directors and Shareholders Voyageur Mutual Funds, Inc. Voyageur Tax Free Funds, Inc. Voyageur Insured Funds, Inc. Voyageur Intermediate Tax Free Funds, Inc.: We have audited the accompanying statements of assets and liabilities, including the schedules of investments in securities, of Voyageur Minnesota High Yield Municipal Bond Fund (a Fund within Voyageur Mutual Funds, Inc.), Voyageur Minnesota Tax Free Fund (a Fund within Voyageur Tax Free Funds, Inc.), Voyageur Minnesota Insured Fund (a Fund within Voyageur Insured Funds, Inc.), and Voyageur Minnesota Limited Term Tax Free Fund (a fund within Voyageur Intermediate Tax Free Funds, Inc.) as of December 31, 1996, and the related statements of operations for the year then ended (for the period from June 14, 1996, commencement of operations, to December 31, 1996 for Voyageur Minnesota High Yield Municipal Bond Fund), the statements of changes in net assets for each of the years in the two-year period ended December 31, 1996 (for the period from June 4, 1996 to December 31, 1996 for Voyageur Minnesota High Yield Municipal Bond Fund), and the financial highlights for each of the years in the five-year period ended December 31, 1996 (for the period from June 4, 1996 to December 31, 1996 for Voyageur Minnesota High Yield Municipal Bond Fund). These financial statements and the financial highlights are the responsibility of Fund management. Our responsibility is to express an opinion on these financial statements and the financial highlights based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Investment securities held in custody are confirmed to us by the custodian. As to securities purchased and sold but not received or delivered, we request confirmations from brokers, and where replies are not received, we carry out other appropriate auditing procedures. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Voyageur Minnesota High Yield Municipal Bond Fund, Voyageur Minnesota Tax Free Fund, Voyageur Minnesota Insured Fund, and Voyageur Minnesota Limited Term Tax Free Fund as of December 31, 1996 and the results of their operations, changes in their net assets and the financial highlights for the periods stated in the first paragraph above, in conformity with generally accepted accounting principles. KPMG Peat Marwick LLP Minneapolis, Minnesota February 14, 1997
VOYAGEUR FUNDS STATEMENTS OF ASSETS AND LIABILITIES DECEMBER 31, 1996 - ---------------------------------------------------------------------------------------------------------------------------------- VOYAGEUR VOYAGEUR VOYAGEUR VOYAGEUR MINNESOTA HIGH MINNESOTA MINNESOTA MINNESOTA YIELD MUNICIPAL TAX FREE INSURED LIMITED TERM BOND FUND FUND FUND TAX FREE FUND --------------- --------- --------- ------------- ASSETS Investments in securities, at market value (note 1) (identified costs, $10,739,767, $414,868,560, $294,856,518 and $66,062,034, respectively) ....... $ 10,828,628 $ 435,206,282 $ 309,148,795 $ 68,501,743 Accrued interest receivable ............................ 164,581 8,293,447 6,526,973 1,434,335 Receivable for investment securities sold .............. -- -- 991,793 2,831 Receivable for Fund shares sold ........................ -- 72,031 1,084 58,928 Organizational costs (note 1) .......................... 6,077 -- -- -- ------------- ------------- ------------- ------------- Total assets ........................................ 10,999,286 443,571,760 316,668,645 69,997,837 ------------- ------------- ------------- ------------- LIABILITIES Bank overdraft ......................................... 555,007 1,542,534 225,355 2,123,141 Dividends payable to shareholders ...................... 44,685 1,860,148 1,283,418 259,539 Payable for investment securities purchased ............ 678,716 1,963,966 -- -- Payable for Fund shares redeemed ....................... -- 235,758 120,152 -- Distribution fees payable .............................. 5,727 227,977 183,556 25,508 Other accrued expenses ................................. 9,600 45,201 35,873 19,758 ------------- ------------- ------------- ------------- Total liabilities ................................... 1,293,735 5,875,584 1,848,354 2,427,946 ------------- ------------- ------------- ------------- NET ASSETS APPLICABLE TO OUTSTANDING CAPITAL STOCK ..... $ 9,705,551 $ 437,696,176 $ 314,820,291 $ 67,569,891 ============= ============= ============= ============= Represented by: Capital Stock - $.01 par value (note 1) ............. $ 9,534 $ 352,892 $ 297,118 $ 61,508 Additional paid-in capital .......................... 9,610,762 419,422,854 308,172,941 65,852,835 Undistributed net investment income ................. 3,203 87,594 61,231 5,102 Accumulated net realized loss on investments (note 1) (6,809) (2,504,886) (8,003,276) (789,263) Unrealized appreciation of investments .............. 88,861 20,337,722 14,292,277 2,439,709 ------------- ------------- ------------- ------------- TOTAL NET ASSETS .................................. $ 9,705,551 $ 437,696,176 $ 314,820,291 $ 67,569,891 ============= ============= ============= ============= Net assets applicable to outstanding Class A shares .... $ 6,067,647 $ 428,379,970 $ 304,876,891 $ 66,024,295 ============= ============= ============= ============= Net assets applicable to outstanding Class B shares .... $ 2,737,647 $ 6,233,411 $ 6,817,309 $ 408,320 ============= ============= ============= ============= Net assets applicable to outstanding Class C shares .... $ 900,257 $ 3,082,795 $ 3,126,091 $ 1,137,276 ============= ============= ============= ============= SHARES OUTSTANDING AND NET ASSET VALUE PER SHARE Class A - Shares of Capital Stock outstanding: 596,194; 34,538,091; 28,772,685 and 6,010,087, respectively (note 6) ........................... $ 10.18 $ 12.40 $ 10.60 $ 10.99 ============= ============= ============= ============= Class B - Shares of Capital Stock outstanding: 268,787; 502,673; 644,114 and 37,154, respectively (note 6) ........................... $ 10.19 $ 12.40 $ 10.58 $ 10.99 ============= ============= ============= ============= Class C - Shares of Capital Stock outstanding: 88,448; 248,473; 295,018 and 103,528, respectively (note 6) ........................... $ 10.18 $ 12.41 $ 10.60 $ 10.99 ============= ============= ============= =============
VOYAGEUR FUNDS STATEMENTS OF OPERATIONS PERIOD ENDED DECEMBER 31, 1996 - ----------------------------------------------------------------------------------------------------------------------------------- VOYAGEUR VOYAGEUR VOYAGEUR VOYAGEUR MINNESOTA HIGH MINNESOTA MINNESOTA MINNESOTA YIELD MUNICIPAL TAX FREE INSURED LIMITED TERM BOND FUND* FUND FUND TAX FREE FUND --------------- --------- --------- ------------- Investment income: Interest .............................................. $ 156,337 $ 26,899,147 $ 17,763,069 $ 3,913,199 ------------ ------------ ------------ ------------ Expenses (note 3): Investment advisory and management fee ................ 17,203 2,222,690 1,518,301 281,038 Dividend-disbursing, administrative and accounting services fees ....................................... 13,721 472,689 355,578 110,484 Printing, postage and supplies ........................ 241 66,930 46,415 7,788 Audit and accounting fees ............................. 5,928 31,256 27,548 18,523 Legal fees ............................................ 28 14,400 11,763 705 Distribution fees - Class A ........................... 3,846 1,093,043 736,300 172,919 Distribution fees - Class B ........................... 8,177 45,609 58,570 2,048 Distribution fees - Class C ........................... 2,636 27,693 32,890 8,875 Directors' fees ....................................... 178 30,236 20,626 4,236 Registration fees ..................................... 3,274 11,229 12,036 5,433 Custodian fees ........................................ 3,267 103,170 27,024 17,352 Amortization of organizational costs .................. 803 -- -- -- Other ................................................. 654 41,639 28,629 2,713 ------------ ------------ ------------ ------------ Total expenses ...................................... 59,956 4,160,584 2,875,680 632,114 Less: Expenses waived or absorbed .................... (45,653) (8,024) (6,996) (124) ------------ ------------ ------------ ------------ Net expenses before earnings credits on uninvested cash 14,303 4,152,560 2,868,684 631,990 Less: Earnings credits on uninvested cash ............ (3,267) -- -- -- ------------ ------------ ------------ ------------ Total net expenses .................................. 11,036 4,152,560 2,868,684 631,990 ------------ ------------ ------------ ------------ Investment income - net ............................. 145,301 22,746,587 14,894,385 3,281,209 ------------ ------------ ------------ ------------ Realized and unrealized gain (loss) on investments: Realized gain (loss) on security transactions (note 2) (6,809) 515,784 293,417 58,144 Net change in unrealized appreciation or depreciation of investments ..................................... 88,861 (8,943,154) (4,586,047) (1,060,245) ------------ ------------ ------------ ------------ Net gain (loss) on investments .................... 82,052 (8,427,370) (4,292,630) (1,002,101) ------------ ------------ ------------ ------------ NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS ...................................... $ 227,353 $ 14,319,217 $ 10,601,755 $ 2,279,108 ============ ============ ============ ============
- ----------------------------------------------------- * Period from June 4, 1996 (commencement of operations) to December 31, 1996.
VOYAGEUR FUNDS STATEMENTS OF CHANGES IN NET ASSETS - ---------------------------------------------------------------------------------------------------------------------------------- VOYAGEUR MINNESOTA HIGH YIELD MUNICIPAL VOYAGEUR MINNESOTA BOND FUND TAX FREE FUND -------------------- ----------------------------- PERIOD FROM YEAR YEAR JUNE 4, 1996* TO ENDED ENDED DECEMBER 31, DECEMBER 31, DECEMBER 31, Operations: 1996 1996 1995 -------------------- -------------- ------------- Investment income - net ................................ $ 145,301 $ 22,746,587 $ 22,782,919 Realized gain (loss) on security transactions .......... (6,809) 515,784 (2,635,025) Net change in unrealized appreciation or depreciation of investments .......................................... 88,861 (8,943,154) 50,741,624 ------------- ------------- ------------- Net increase in net assets resulting from operations .. 227,353 14,319,217 70,889,518 ------------- ------------- ------------- Distributions to shareholders from: Investment income - net: Class A .............................................. (88,229) (22,406,019) (23,374,008) Class B .............................................. (41,302) (203,627) (37,979) Class C .............................................. (13,370) (120,510) (79,332) ------------- ------------- ------------- Total distributions ................................ (142,901) (22,730,156) (23,491,319) ------------- ------------- ------------- Capital share transactions (note 6): Proceeds from sale of shares: Class A (note 3) ..................................... 7,102,907 28,935,567 44,321,375 Class B .............................................. 2,696,693 3,893,971 2,627,889 Class C .............................................. 948,440 1,575,266 1,563,516 Net asset value of shares issued in connection with acquisition of Great Hall Minnesota Insured Tax-Exempt Fund (note 4): Class A .......................................... N/A N/A N/A Net asset value of shares issued in reinvestment of net investment income distributions: Class A .......................................... 43,874 14,510,299 15,300,068 Class B .......................................... 13,064 159,491 26,876 Class C .......................................... 7,823 95,792 54,270 Payments for redemption of shares: Class A .............................................. (1,124,003) (61,934,519) (58,049,869) Class B (note 3) ..................................... -- (500,598) (26,205) Class C (note 3) ..................................... (67,699) (867,298) (534,040) ------------- ------------- ------------- Increase (decrease) in net assets from capital share transactions ......................................... 9,621,099 (14,132,029) 5,283,880 ------------- ------------- ------------- Total increase (decrease) in net assets .............. 9,705,551 (22,542,968) 52,682,079 Net assets at beginning of period ......................... -- 460,239,144 407,557,065 ------------- ------------- ------------- Net assets at end of period (including undistributed net investment income of $3,203; $87,594 and $71,163; $61,231 and $4,200; and $5,102 and $47; respectively) $ 9,705,551 $ 437,696,176 $ 460,239,144 ============= ============= ============= - ----------------------------------------------------- * Commencement of operations.
[WIDE TABLE CONTINUED]
VOYAGEUR MINNESOTA VOYAGEUR MINNESOTA INSURED FUND LIMITED TERM TAX FREE FUND --------------------------------- ----------------------------- YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31, Operations: 1996 1995 1996 1995 --------------- --------------- ------------- ------------- Investment income - net ................................ $ 14,894,385 $ 15,149,888 $ 3,281,209 $ 3,437,702 Realized gain (loss) on security transactions .......... 293,417 (7,669,506) 58,144 (74,374) Net change in unrealized appreciation or depreciation of investments .......................................... (4,586,047) 41,831,089 (1,060,245) 4,553,348 ------------- ------------- ------------- ------------- Net increase in net assets resulting from operations .. 10,601,755 49,311,471 2,279,108 7,916,676 ------------- ------------- ------------- ------------- Distributions to shareholders from: Investment income - net: Class A .............................................. (14,451,758) (15,642,473) (3,233,948) (3,447,763) Class B .............................................. (248,884) (79,826) (7,825) (311) Class C .............................................. (136,712) (108,180) (34,381) (19,464) ------------- ------------- ------------- ------------- Total distributions ................................ (14,837,354) (15,830,479) (3,276,154) (3,467,538) ------------- ------------- ------------- ------------- Capital share transactions (note 6): Proceeds from sale of shares: Class A (note 3) ..................................... 19,743,497 29,732,432 8,813,544 9,137,036 Class B .............................................. 2,213,483 4,508,245 372,719 27,011 Class C .............................................. 962,058 1,728,614 862,998 567,207 Net asset value of shares issued in connection with acquisition of Great Hall Minnesota Insured Tax-Exempt Fund (note 4): Class A .......................................... 23,310,124 N/A N/A N/A Net asset value of shares issued in reinvestment of net investment income distributions: Class A .......................................... 10,183,091 11,225,363 2,225,412 2,503,920 Class B .......................................... 198,159 59,610 5,862 72 Class C .......................................... 118,019 89,137 27,628 16,872 Payments for redemption of shares: Class A .............................................. (51,938,099) (50,442,997) (16,425,703) (27,826,010) Class B (note 3) ..................................... (213,150) (57,331) -- (11) Class C (note 3) ..................................... (1,076,363) (425,889) (441,733) (257,614) ------------- ------------- ------------- ------------- Increase (decrease) in net assets from capital share ... 3,500,819 (3,582,816) (4,559,273) (15,831,517) transactions ......................................... -- -- -- -- (734,780) 29,898,176 (5,556,319) (11,382,379) Total increase (decrease) in net assets .............. 315,555,071 285,656,895 73,126,210 84,508,589 Net assets at beginning of period ......................... -- -- -- -- Net assets at end of period (including undistributed net investment income of $3,203; $87,594 and $71,163; .... $ 314,820,291 $ 315,555,071 $ 67,569,891 $ 73,126,210 $61,231 and $4,200; and $5,102 and $47; respectively) ============= ============= ============= =============
THE VOYAGEUR FUNDS NOTES TO FINANCIAL STATEMENTS - ------------------------------------------------------------------------------- (1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Voyageur Minnesota High Yield Municipal Bond Fund (Minnesota High Yield Fund) a fund within Voyageur 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 resulting from operations during the reporting period. Actual results could differ from those estimates. INVESTMENTS IN SECURITIES The values of fixed income securities are determined using pricing services or prices quoted by independent brokers. When market quotations are not readily available, or in certain other circumstances, securities are valued at fair value according to methods selected in good faith by the Board of Directors. 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. 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. 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, 1996, Minnesota High Yield Fund had a capital loss carryover of $6,809 that will expire in 2004, Minnesota Tax Free Fund had a capital loss carryover of $2,504,886 that will expire in 2003, Minnesota Insured Fund had a capital loss carryover of $7,559,777 that will expire in 2001 through 2003 and Minnesota Limited Term Tax Free Fund had a capital loss carryover of $789,263 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. On the statement of assets and liabilities, as a result of permanent book-to-tax differences, reclassification adjustments have been made to increase undistributed net investment income and decrease additional paid-in capital $803 for Minnesota High Yield Fund. 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. ILLIQUID SECURITIES At December 31, 1996, investments in securities for the Funds may include issues that are illiquid. The Funds currently limit investments in illiquid securities to 15% of net assets, at market value, at the date of purchase. The aggregate value of such securities at December 31, 1996, was $580,538 (6.0% of net assets) for Minnesota High Yield Fund, $32,635,511 (7.5% of net assets) for Minnesota Tax Free Fund, $15,528,137 (4.9% of net assets) for Minnesota Insured Fund and $1,286,501 (1.9% of net assets) for Minnesota Limited Term Tax Free Fund. (2) SECURITIES TRANSACTIONS Purchase cost and proceeds from sales of securities other than short-term securities aggregated $11,535,053 and $788,477 for Minnesota High Yield Fund; $123,288,810 and $135,820,083 for Minnesota Tax Free Fund; $64,526,526 and $59,371,079 for Minnesota Insured Fund and $19,444,151 and $22,814,613 for Minnesota Limited Term Tax Free Fund, respectively, during the period ended December 31, 1996. Included in the cost of purchases for Minnesota Insured Fund is the cost of securities that were purchased in association with the acquisition of Great Hall Minnesota Insured Tax-Exempt Fund of $22,423,620. (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 $1,228 for the year ended December 31, 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 December 31, 1996, Voyageur absorbed $18,827 pursuant to the contractual 1% expense limitation and, excluding waiver of distribution fees, voluntarily absorbed $26,826 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 December 31, 1996, Fund Distributors voluntarily waived Class B distribution fees of $8,024 for Minnesota Tax Free Fund, $6,996 for Minnesota Insured Fund and $124 for Minnesota Limited Term Tax Free Fund. Minnesota High Yield Fund earned $3,267 in credits on uninvested cash balances held at the custodian during the period ended December 31, 1996 which were used to reduce certain fees for various custodial services provided by the custodian bank. Sales charges paid by Class A shareholders were $88,450 for Minnesota High Yield Fund, $650,734 for Minnesota Tax Free Fund, $454,762 for Minnesota Insured Fund and $71,429 for Minnesota Limited Term Tax Free Fund. Of these amounts, Fund Distributors received $20 for Minnesota High Yield Fund, $69,682 for Minnesota Tax Free Fund, $33,673 for Minnesota Insured Fund and $5,306 for Minnesota Limited Term Tax Free Fund. Contingent deferred sales charges paid by Class B shareholders were $11,641 for Minnesota Tax Free Fund and $3,613 forMinnesota Insured Fund. Contingent deferred sales charges paid by Class C shareholders were $15 for Minnesota Tax Free Fund, $411 for Minnesota Insured Fund and $421 for Minnesota Limited Term Tax Free Fund. (4) FUND MERGER On November 9, 1996, Voyageur Minnesota Insured Fund acquired all of the net assets of Great Hall Minnesota Insured Tax-Exempt Fund (Great Hall Fund) pursuant to an Agreement and Plan of Reorganization approved by the Great Hall shareholders on November 6, 1996. The acquisition was accompanied to by a tax-free exchange of 2,317,110 Great Hall shares for 2,205,310 Class A shares of Minnesota Insured Fund. The aggregate net assets of Minnesota Insured Fund and Great Hall Fund before the acquisition were $295,563,851 and $23,310,124 (including $396,706 of net unrealized appreciation of investments, $627,187 of accumulated net realized loss on investments and $23,540,605 of paid-in capital for Great Hall Fund), respectively, resulting in combined net assets of $318,873,975 on November 9, 1996. (5) PROPOSED FUND REORGANIZATION On January 15, 1997 Voyageur's parent, Dougherty Financial Group, Inc. ("DFG"), executed an agreement and plan of merger with Lincoln National Corporation ("LNC") pursuant to which LNC would acquire DFG, including the mutual fund investment advisory business of DFG conducted by Voyageur. This merger is subject to approval of the Fund's Board of Directors and shareholders. (6) 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 DECEMBER 31, DECEMBER 31, DECEMBER 31, 1996 1996 1996 ---------------------- ---------------------- ------------------ Shares sold .................. 703,876 267,494 94,294 Shares issued for reinvested distributions .. 4,348 1,293 775 Shares redeemed .............. 112,030) -- (6,621) ------- -------- -------- Increase in shares outstanding 596,194 268,787 88,448 ======== ======== ========
MINNESOTA TAX FREE FUND ------------------------------------------------------------------------------------ CLASS A CLASS B CLASS C ------------------------- --------------------------- ------------------------- YEAR YEAR YEAR PERIOD FROM YEAR YEAR ENDED ENDED ENDED MARCH 11, 1995* ENDED ENDED DECEMBER 31, DECEMBER 31, DECEMBER 31, TO DECEMBER 31, DECEMBER 31, DECEMBER 31, 1996 1995 1996 1995 1996 1995 ------------ ----------- ----------- -------------- ----------- ----------- Shares sold ................. 2,351,584 3,694,812 316,743 213,827 127,900 129,328 Shares issued for reinvested distributions 1,180,162 1,273,503 12,994 2,195 7,795 4,487 Shares redeemed ............. (5,048,128) (4,792,882) (40,979) (2,107) (70,822) (43,826) ---------- ---------- ---------- ---------- ---------- ---------- Increase (decrease) in shares outstanding ....... (1,516,382) 175,433 288,758 213,915 64,873 89,989 ========== ========== ========== ========== ========== ==========
- ------------------------------------ * Commencement of operations.
MINNESOTA INSURED FUND ------------------------------------------------------------------------------------ CLASS A CLASS B CLASS C ------------------------- --------------------------- ------------------------- YEAR YEAR YEAR PERIOD FROM YEAR YEAR ENDED ENDED ENDED MARCH 7, 1995* ENDED ENDED DECEMBER 31, DECEMBER 31, DECEMBER 31, TO DECEMBER 31, DECEMBER 31, DECEMBER 31, 1996 1995 1996 1995 1996 1995 ------------ ----------- ----------- -------------- ----------- ----------- Shares sold .................... 1,875,386 2,902,567 211,514 433,849 91,722 168,194 Shares issued in connection with acquisition of Great Hall Minnesota Insured Tax- Exempt Fund ................. 2,205,310 N/A N/A N/A N/A N/A Shares issued for reinvested distributions .... 969,663 1,094,655 18,904 5,709 11,243 8,646 Shares redeemed ................ (4,947,642) (4,895,900) (20,425) (5,437) (102,914) (40,592) ---------- ---------- ---------- ---------- ---------- ---------- Increase (decrease) in shares outstanding .......... 102,717 (898,678) 209,993 434,121 51 136,248 ========== ========== ========== ========== ========== ==========
MINNESOTA LIMITED TERM TAX FREE FUND ------------------------------------------------------------------------------------ CLASS A CLASS B CLASS C ---------------------- ----------------------------- ------------------------- YEAR YEAR YEAR PERIOD FROM YEAR YEAR ENDED ENDED ENDED AUGUST 15, 1995* ENDED ENDED DECEMBER 31, DECEMBER 31, DECEMBER 31, TO DECEMBER 31, DECEMBER 31, DECEMBER 31, 1996 1995 1996 1995 1996 1995 ------------ ----------- ----------- --------------- ----------- ----------- Shares sold ................. 803,384 834,844 34,174 2,438 78,645 51,965 Shares issued for reinvested distributions . 202,700 230,452 536 7 2,520 1,545 Shares redeemed ............. (1,498,234) (2,579,455) -- (1) (39,981) (23,639) ---------- ---------- ---------- ---------- ---------- ---------- Increase (decrease) in shares outstanding ....... (492,150) (1,514,159) 34,710 2,444 41,184 29,871 ========== ========== ========== ========== ========== ==========
- ----------------------------------- * Commencement of operations. (7) 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 DECEMBER 31, TO DECEMBER 31, TO DECEMBER 31, 1996 1996 1996 ------------------- ---------------- ------------------- Net asset value: Beginning of period................................ $10.00 $9.78 $9.99 --------- --------- --------- Operations: Net investment income.............................. .35 .29 .30 Net realized and unrealized gain on investments.... .18 .41 .19 --------- --------- --------- Total from operations.......................... .53 .70 .49 --------- --------- --------- Distributions to shareholders: From net investment income (a)..................... (.35) (.29) (.30) --------- --------- --------- Net asset value: End of period...................................... $10.18 $10.19 $10.18 ========= ========= ========= Total investment return (b)........................... 5.40% 7.29% 5.02% Net assets at end of period (000's omitted)........... $6,068 $2,738 $900 Ratios: Ratio of expenses to average daily net assets (f)..................... .24%(e) .95%(e) .99%(e) Ratio of net investment income to average daily net assets...................... 5.78%(e) 5.14%(e) 4.90%(e) Assuming no voluntary waivers and reimbursements: Expenses (c)............................... 1.25%(e) 2.00%(e) 2.00%(e) Net investment income...................... 4.77%(e) 4.09%(e) 3.89%(e) Portfolio turnover rate (excluding short-term securities)........................... 14.97% 14.97% 14.97%
See accompanying notes to Financial Highlights.
MINNESOTA TAX FREE FUND ---------------------------------------------------------- CLASS A ---------------------------------------------------------- YEAR ENDED DECEMBER 31 , ---------------------------------------------------------- 1996 1995 1994 1993 1992 ------------ ---------- --------- --------- --------- Net asset value: Beginning of period......................... $12.63 $11.33 $12.85 $12.21 $12.07 ------ ------ ------ ------ ------ Operations: Net investment income....................... .63 .62 .63 .64 .70 Net realized and unrealized gain (loss) on investments................ (.23) 1.32 (1.48) .87 .23 ------ ------ ------ ------ ------ Total from operations................... .40 1.94 (.85) 1.51 .93 ------ ------ ------ ------ ------ Distributions to shareholders: From net investment income (a).............. (.63) (.64) (.61) (.64) (.70) From net realized gains..................... -- -- (.05) (.23) (.09) In excess of net realized gains............. -- -- (.01) -- -- ------ ------ ------ ------ ------ Total distributions....................... (.63) (.64) (.67) (.87) (.79) ------ ------ ------ ------ ------ Net asset value: End of period............................... $12.40 $12.63 $11.33 $12.85 $12.21 ====== ====== ====== ====== ====== Total investment return (b).................... 3.33% 17.49% (6.73)% 12.70% 7.97% Net assets at end of period (000's omitted)...................... $428,380 $455,220 $406,497 $458,145 $331,314 Ratios: Ratio of expenses to average daily net assets (f).............. .92% .93% .90% 1.02% .96% Ratio of net investment income to average daily net assets............... 5.13% 5.11% 5.29% 5.02% 5.73% Assuming no voluntary waivers and reimbursements: Expenses (c)........................ .92% .93% .90% 1.02% 1.04% Net investment income............... 5.13% 5.11% 5.29% 5.02% 5.65% Portfolio turnover rate (excluding short-term securities).................... 27.67% 50.84% 24.26% 31.77% 23.60%
See accompanying notes to Financial Highlights.
MINNESOTA TAX FREE FUND --------------------------------------------------------------------- CLASS B CLASS C -------------------------- ----------------------------------------- PERIOD FROM PERIOD FROM YEAR MARCH 11, YEAR YEAR MAY 4, ENDED 1995(d) TO ENDED ENDED 1994(d) TO DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31, 1996 1995 1996 1995 1994 ----------- ----------- ----------- ----------- ------------ Net asset value: Beginning of period................... $12.62 $11.90 $12.63 $11.33 $11.96 ------ ------ ------ ------ ------ Operations: Net investment income................. .56 .45 .54 .53 .34 Net realized and unrealized gain (loss) on investments.......... (.22) .71 (.22) 1.32 (.61) ------ ------ ------ ------ ------ Total from operations............. .34 1.16 .32 1.85 (.27) ------ ------ ------ ------ ------ Distributions to shareholders: From net investment income (a)........ (.56) (.44) (.54) (.55) (.32) From net realized gains............... -- -- -- -- (.04) ------ ------ ------ ------ ------ Total distributions................. (.56) (.44) (.54) (.55) (.36) ------ ------ ------ ------ ------ Net asset value: End of period......................... $12.40 $12.62 $12.41 $12.63 $11.33 ====== ====== ====== ====== ====== Total investment return (b).............. 2.83% 9.95% 2.64% 16.62% (2.30)% Net assets at end of period (000's omitted)................ $6,233 $2,701 $3,083 $2,319 $1,061 Ratios: Ratio of expenses to average daily net assets (f)........ 1.50% 1.38%(e) 1.67% 1.67% 1.72%(e) Ratio of net investment income to average daily net assets......... 4.53% 4.43%(e) 4.38% 4.33% 4.56%(e) Assuming no voluntary waivers and reimbursements: Expenses (c).................. 1.67% 1.63%(e) 1.67% 1.67% 1.72%(e) Net investment income......... 4.36% 4.18%(e) 4.38% 4.33% 4.56%(e) Portfolio turnover rate (excluding short-term securities).............. 27.67% 50.84% 27.67% 50.84% 24.26%
See accompanying notes to Financial Highlights.
MINNESOTA INSURED FUND -------------------------------------------------------- CLASS A -------------------------------------------------------- YEAR ENDED DECEMBER 31 , -------------------------------------------------------- 1996 1995 1994 1993 1992 ----------- --------- --------- -------- -------- Net asset value: Beginning of period........................ $10.73 $ 9.61 $11.02 $10.27 $10.07 ------ ------ ------ ------ ------ Operations: Net investment income....................... .52 .51 .54 .54 .59 Net realized and unrealized gain (loss) on investments................ (.13) 1.14 (1.39) .84 .25 ------ ------ ------ ------ ------ Total from operations................... .39 1.65 (.85) 1.38 .84 ------ ------ ------ ------ ------ Distributions to shareholders: From net investment income (a).............. (.52) (.53) (.52) (.54) (.59) From net realized gains.................... -- -- (.04) (.09) (.05) ------ ------ ------ ------ ------ Total distributions....................... (.52) (.53) (.56) (.63) (.64) ------ ------ ------ ------ ------ Net asset value: End of period............................... $10.60 $10.73 $ 9.61 $11.02 $10.27 ====== ====== ====== ====== ====== Total investment return (b).................... 3.75% 17.52 % (7.88)% 13.80% 8.57% Net assets at end of period (000's omitted)...................... $304,877 $307,734 $284,132 $311,187 $162,728 Ratios: Ratio of expenses to average daily net assets (f).............. .92% .87% .61% .70% .37% Ratio of net investment income to average daily net assets............... 4.93% 4.92% 5.29% 4.93% 5.66% Assuming no voluntary waivers and reimbursements: Expenses (c)........................ .92% .92% .94% 1.02% 1.06% Net investment income............... 4.93% 4.87% 4.96% 4.61% 4.97% Portfolio turnover rate (excluding short-term securities).................... 14.04% 53.72% 24.75% 18.25% 14.11%
See accompanying notes to Financial Highlights.
MINNESOTA INSURED FUND --------------------------------------------------------------------- CLASS B CLASS C -------------------------- ----------------------------------------- PERIOD FROM PERIOD FROM YEAR MARCH 7, YEAR YEAR MAY 4, ENDED 1995(D) TO ENDED ENDED 1994(D) TO DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31, 1996 1995 1996 1995 1994 ----------- ----------- ----------- ----------- ------------ Net asset value: Beginning of period.................... $10.72 $10.14 $10.73 $9.61 $10.23 ------ ------ ------ ----- ------ Operations: Net investment income.................. .45 .38 .44 .43 .30 Net realized and unrealized gain (loss) on investments........... (.14) .58 (.13) 1.14 (.62) ------ ------ ------ ----- ------ Total from operations.............. .31 .96 .31 1.57 (.32) ------ ------ ------ ----- ------ Distributions to shareholders: From net investment income (a)......... (.45) (.38) (.44) (.45) (.28) From net realized gains................ -- -- -- -- (.02) ------ ------ ------ ----- ------ Total distributions.................. (.45) (.38) (.44) (.45) (.30) ------ ------ ------ ----- ------ Net asset value: End of period.......................... $10.58 $10.72 $10.60 $10.73 $9.61 ====== ====== ====== ====== ===== Total investment return (b)............... 3.03% 9.59% 2.98% 16.63% (3.14)% Net assets at end of period (000's omitted)................. $6,817 $4,655 $3,126 $3,166 $1,525 Ratios: Ratio of expenses to average daily net assets (f)......... 1.56% 1.34%(e) 1.68% 1.66% 1.36%(e) Ratio of net investment income to average daily net assets.......... 4.29% 4.15%(e) 4.18% 4.11% 4.68%(e) Assuming no voluntary waivers and reimbursements: Expenses (c)................... 1.68% 1.64%(e) 1.68% 1.67% 1.68%(e) Net investment income.......... 4.17% 3.85%(e) 4.18% 4.10% 4.36%(e) Portfolio turnover rate (excluding short-term securities)............... 14.04% 53.72% 14.04% 53.72% 24.75%
See accompanying notes to Financial Highlights.
MINNESOTA LIMITED TERM TAX FREE FUND -------------------------------------------------------- CLASS A -------------------------------------------------------- YEAR ENDED DECEMBER 31 , -------------------------------------------------------- 1996 1995 1994 1993 1992 ----------- --------- --------- -------- -------- Net asset value: Beginning of period......................... $11.14 $10.50 $11.16 $10.83 $10.69 ------ ------ ------ ------ ------ Operations: Net investment income....................... .51 .51 .45 .47 .51 Net realized and unrealized gain (loss) on investments................ (.15) .64 (.66) .37 .18 ------ ------ ------ ------ ------ Total from operations................... .36 1.15 (.21) .84 .69 ------ ------ ------ ------ ------ Distributions to shareholders: From net investment income (a).............. (.51) (.51) (.45) (.47) (.51) From net realized gains..................... -- -- -- (.04) (.04) ------ ------ ------ ------ ------ Total distributions....................... (.51) (.51) (.45) (.51) (.55) ------ ------ ------ ------ ------ Net asset value: End of period............................... $10.99 $11.14 $10.50 $11.16 $10.83 ====== ====== ====== ====== ====== Total investment return (b).................... 3.46% 11.00% (1.91)% 7.88% 6.62% Net assets at end of period (000's omitted)...................... $66,024 $72,405 $84,168 $75,374 $48,210 Ratios: Ratio of expenses to average daily net assets (f).............. .89% .91% .92% .99% 1.09% Ratio of net investment income to average daily net assets............... 4.69% 4.61% 4.18% 4.18% 4.71% Assuming no voluntary waivers and reimbursements: Expenses (c)........................ .89% .91% .92% .99% 1.09% Net investment income............... 4.69% 4.61% 4.18% 4.18% 4.71% Portfolio turnover rate (excluding short-term securities).................... 28.18% 40.28% 42.06% 19.13% 25.56%
See accompanying notes to Financial Highlights.
MINNESOTA LIMITED TERM TAX FREE FUND ----------------------------------------------------------------------------------- CLASS B CLASS C -------------------------- ----------------------------------------- PERIOD FROM PERIOD FROM YEAR AUGUST 15, YEAR YEAR APRIL 30, ENDED 1995(d) TO ENDED ENDED 1994(d) TO DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31, 1996 1995 1996 1995 1994 ----------- ----------- ----------- ----------- ------------ Net asset value: Beginning of period.................... $11.14 $10.95 $11.13 $10.50 $10.74 ------ ------ ------ ------ ------ Operations: Net investment income.................. .44 .17 .43 .42 .24 Net realized and unrealized gain (loss) on investments........... (.15) .19 (.14) .63 (.24) ------ ------ ------ ------ ------ Total from operations.............. .29 .36 .29 1.05 -- ------ ------ ------ ------ ------ Distributions to shareholders: From net investment income (a)......... (.44) (.17) (.43) (.42) (.24) ------ ------ ------ ------ ------ Total distributions................ (.44) (.17) (.43) (.42) (.24) ------ ------ ------ ------ ------ Net asset value: End of period.......................... $10.99 $11.14 $10.99 $11.13 $10.50 ====== ====== ====== ====== ====== Total investment return (b)............... 2.74% 3.26% 2.69% 10.18% (0.03)% Net assets at end of period (000's omitted)................. $408 $27 $1,137 $694 $341 Ratios: Ratio of expenses to average daily net assets (f)......... 1.56% 1.30%(e) 1.64% 1.63% 1.71%(e) Ratio of net investment income to average daily net assets.......... 3.99% 3.93%(e) 3.94% 3.82% 3.35%(e) Assuming no voluntary waivers and reimbursements: Expenses (c)................... 1.62% 1.55%(e) 1.64% 1.63% 1.71%(e) Net investment income.......... 3.93% 3.68%(e) 3.94% 3.82% 3.35%(e) Portfolio turnover rate (excluding short-term securities)............... 28.18% 40.28% 28.18% 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 DECEMBER 31, 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 (111.6%): GENERAL OBLIGATION (4.2%): ------------------------------------------------------------------------------------------------------ $ 100 Esko Independent School District #99 (FSA Insured)............... 5.75% 04-01-17 $ 101,500 100 Inver Grove Heights Series A..................................... 5.75 02-01-13 101,500 100 Stewartville Independent School District Series A................ 5.75 02-01-12 102,375 100 Waconia Independent School District Series 93A (FSA Insured)..... 5.45 02-01-15 100,250 ------- 405,625 ------- EDUCATION (2.1%): ------------------------------------------------------------------------------------------------------ 100 Minnesota Higher Education Facility Macalaster College 4C........ 5.50 03-01-12 99,000 100 Minnesota State University System Revenue Bonds 93A.............. 6.10 06-30-23 101,250 ------- 200,250 ------- HEALTH CARE (43.9%): ------------------------------------------------------------------------------------------------------- 125 Cambridge Healthcare Facility Revenue-Grandview Christian Home... 7.25 09-01-26 126,250 100 Cannon Falls Nursing Home-Fransican Health Community Project..... 7.25 07-01-21 102,375 325 Duluth St. Francis Health Care Facility.......................... 6.75 12-01-17 324,188 750 Fergus Falls Health Care Facility Revenue-Lake Region Hospital... 6.50 09-01-18 766,875 250 Little Canada Senior Facility Residence 1992-Pres. Home.......... 7.25 07-01-12 252,500 300 Mankato Health Facilities Revenue Series A-Lutheran Homes........ 6.88 10-01-26 299,625 150 Minneapolis Health Care American Baptist Homes................... 8.70 11-01-09 165,375 100 Robbinsdale North Memorial Medical Center (AMBAC Insured) . . . . 5.50 05-15-23 97,250 300 St. Louis Park Methodist Hospital (AMBAC Insured)................ 5.10 07-01-13 278,062 750 St. Paul Housing and Redevelopment Hospital Health East.......... 6.63 11-01-17 765,000 150 Springfield St. John's Lutheran Home Revenue..................... 8.50 11-01-19 158,438 660 Waconia Good Samaritan Housing and Redevelopment................. 6.00 06-01-14 662,475 250 Wadena County Health Care Facility............................... 7.75 09-01-24 263,125 --------- 4,261,538 --------- HOUSING (38.3%): ------------------------------------------------------------------------------------------------------ 370 Brooklyn Center Four Court Multifamily Housing...................7.50(e) 06-01-25 370,925 300 Chanhassen Multifamily Housing Heritage Park.....................6.20(e) 07-01-30 301,875 293 Eden Prairie Multifamily Housing Subordinated-Tanager Creek . . . .8.00(b) 06-20-31 296,663 250 Minneapolis Multifamily Housing Olson Townhomes..................6.00(e) 12-01-19 246,562 300 Minneapolis Multifamily Housing Nicollet Towers Section 8........ 6.00 12-01-19 299,625 100 Minnesota Housing Finance Authority Single Family Mortgage Series E............................................. 6.25(e) 01-01-23 100,875 100 Minnesota Housing Finance Authority Single Family Housing........ 5.88 01-01-17 99,250 200 Minnetonka Multifamily Housing Beacon Hill....................... 7.55 06-01-19 212,250 300 New Brighton Multifamily Polynesian Village......................7.60(e) 04-01-25 303,750 135 St. Anthony Multifamily Housing Chandler (GNMA Insured).......... 6.05 11-20-16 136,856 125 St. Louis Park Multifamily Mortgage Revenue...................... 5.50 11-01-13 121,250 205 Stillwater Multifamily Housing Cottages.......................... 6.75 11-01-11 203,719 680 Stillwater Multifamily Housing Cottages..........................7.00(l) 11-01-16 680,000 340 Stillwater Multifamily Housing Cottages.......................... 7.00 11-01-27 340,000 --------- 3,713,600 --------- UTILITIES (10.4%): ------------------------------------------------------------------------------------------------------ 605 Bass Brook PCR for Minnesota Power and Light Revenue............. 6.00% 07-01-22 $ 608,025 100 Southern Minnesota Municipal Power Agency Revenue (FGIC Insured)................................................ 5.75 01-01-18 100,375 300 Western Municipal Power Agency Revenue........................... 6.13 01-01-16 300,453 --------- 1,008,853 --------- INDUSTRIAL (2.9%): ------------------------------------------------------------------------------------------------------ 300 Red Wing IDR Kmart (First Mortgage).............................. 5.50(b) 07-01-08 283,875 ---------- CERTIFICATES OF PARTICIPATION (6.0%): ------------------------------------------------------------------------------------------------------ 400 Beltrami County.................................................. 6.10 02-01-12 455,400 125 Rice County...................................................... 6.00 12-01-21 127,187 ---------- 582,587 ---------- OTHER (3.8%): ---------------------------------------------------------------------------------------------------- 365 Woodbury Golf Course Revenue..................................... 6.75 02-01-22 372,300 ---------- TOTAL INVESTMENTS IN SECURITIES (cost:$10,739,767) (f) $ 10,828,628 ============
See accompanying notes to investments in securities.
VOYAGEUR MINNESOTA TAX FREE FUND INVESTMENTS IN SECURITIES DECEMBER 31, 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 (99.4%): ESCROWED WITH U.S. GOVERNMENT BONDS (9.2%): ------------------------------------------------------------------------------------------------------ $ 1,000 Anoka County Capital Improvement.................................... 7.20% 02-01-99 $ 1,054,970 250 Blaine IDR (Ball Corp) ............................................. 8.25 12-01-99 274,800 300 Blaine IDR (Ball Corp).............................................. 8.25 12-01-00 337,778 500 Bloomington Tax Increment .......................................... 9.75 02-01-05 654,140 390 Brainerd Independent School District #181........................... 7.00 06-01-01 427,712 1,000 Hopkins Senior Multifamily Facilities Augustana Home................ 9.00 07-01-97 1,043,170 575 Kimball Independent School District #739 ........................... 7.70 02-01-98 595,619 525 Kimball Independent School District #739............................ 7.60 02-01-98 543,283 500 Little Falls Independent School District #482 (AMBAC Insured)....... 6.80 02-01-99 526,120 1,990 Minnesota Public Facility Authority Water PCA....................... 7.10 03-01-00 2,183,586 5,220 Minnesota Public Facility Authority Water PCA ...................... 6.95 03-01-01 5,792,216 10,000 Maplewood Independent School District #622 (FSA Insured)............ 7.10 02-01-25 11,516,100 1,255 Northfield College Facility Revenue - St. Olaf College.............. 7.88 10-01-98 1,330,676 860 Northfield College Facility Revenue - St. Olaf College.............. 8.00 10-01-98 913,637 1,000 Owatonna Public Utilities........................................... 6.75 01-01-01 1,080,880 750 Rockford Independent School District #883........................... 7.20 12-15-98 793,230 1,000 Southern Minnesota Muni Power Agency Power Supply (MBIA Insured)................................................... 5.75 01-01-16 1,011,470 990 Southern Minnesota Municipal Power Agency (AMBAC Insured)........... 5.50 01-01-15 987,188 1,000 St. Cloud Independent School District #742 ......................... 7.50 02-01-98 1,032,200 775 St. Louis Park Methodist Hospital (AMBAC Insured)................... 7.25 07-01-00 860,041 825 St. Paul Civic Center Revenue Sales Tax (MBIA Insured).............. 5.55 11-01-23 809,135 2,175 St. Paul Sewer Revenue Series 88A................................... 8.00 12-01-98 2,343,345 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 1,641,120 625 Wayzata Independent School District #284 ........................... 7.05 02-01-99 656,888 185 Western Minnesota Municipal Power Agency (MBIA Insured)............. 9.75 01-01-16 276,923 ---------- 40,186,227 ---------- GENERAL OBLIGATION (20.4%): ------------------------------------------------------------------------------------------------------ 1,805 Centennial Independent School District #12 (FGIC Insured).......... 4.88 02-01-10 1,713,649 2,850 Chaska Independent School District #112 (FGIC Insured)............. 5.25 02-01-11 2,797,104 5,085 Chaska Independent School District #112 (FGIC Insured)............. 5.38 02-01-14 4,992,911 1,000 Faribault Independent School District #656 (MN School District Credit Enhanced)....................................... 6.10 06-01-10 1,059,060 3,500 Farmington Independent School District #192 (AMBAC Insured)........ 5.13 02-01-15 3,314,325 Hennepin County 7,990.............................................. 5.75 10-01-10 8,240,566 3,675 Hopkins Independent School District #270 (MBIA Insured)............ 4.88 02-01-13 3,443,071 1,700 Hutchinson Independent School District Series A (MN School District Enhanced).............................................. 5.85% 02-01-18 1,731,127 2,350 Kenyon Wanamingo Independent School District (MBIA Insured)........ 6.00 02-01-18 2,413,309 4,250 Lakeville Independent School District #194, Inverse Floater (MBIA Insured).................................................. 5.67(m) 02-01-15 3,883,523 1,540 Mahtomedi Independent School District #832 Series B Zero Coupon (MBIA Insured)........................................... 5.90(g) 02-01-14 602,910 1,015 Milaca Independent School District #912 (FSA Insured).............. 5.50 02-01-20 1,010,615 850 Minneapolis Convention Center Facilities, Inverse Floater ......... 6.27(m) 04-01-14 853,366 2,000 Minneapolis Series B............................................... 5.20 03-01-13 1,966,200 4,220 Minneapolis Sports Arena Project, Inverse Floater.................. 5.62(m) 10-01-20 3,810,069 580 Minneapolis Sports Arena Project, Inverse Floater.................. 5.57(m) 04-01-14 543,709 1,750 Minneapolis Unlimited Tax Series 1992 ............................. 6.30 10-01-08 1,880,533 4,550 Minnetonka Independent School District #276 (FSA Insured).......... 5.75 02-02-22 4,609,287 1,555 New Ulm Independent School District #88 (FSA Insured).............. 5.50 02-01-17 1,555,435 1,540 North Branch Independent School District #138 (FGIC Insured)....... 5.50 02-01-12 1,545,898 2,000 North Branch Independent School District #138 (FGIC Insured)....... 5.63 02-01-17 2,010,460 2,250 North St. Paul, Maplewood Independent School District #622, Inverse Floater................................................. 5.62(m) 02-01-20 1,876,298 240 Pine Island Independent School District #255 (FSA Insured)......... 6.63 06-01-12 253,385 310 Pine Island Independent School District #255 (FSA Insured)......... 6.63 06-01-13 326,979 330 Pine Island Independent School District #255 (FSA Insured)......... 6.63 06-01-14 348,404 355 Pine Island Independent School District #255 (FSA Insured)......... 6.63 06-01-15 373,375 380 Pine Island Independent School District #255 (FSA Insured)......... 6.63 06-01-16 399,669 385 Plainview Independent School District #810......................... 6.70 02-01-06 416,763 420 Plainview Independent School District #810......................... 6.75 02-01-07 456,225 445 Plainview Independent School District #810......................... 6.75 02-01-08 483,381 1,000 Rochester Tax Increment............................................ 6.50 12-01-04 1,026,910 4,000 Rosemount Independent School District #196, Inverse Floater........ 7.12(m) 04-01-15 4,156,160 1,375 Rosemount - Apple Valley Independent School District #196 (FSA Insured)................................................... 5.88 04-01-15 1,406,818 2,600 Rosemount Independent School District #196 Series B Zero Coupon (FSA Insured)............................................ 5.93(g) 04-01-11 1,214,330 1,850 Rosemount Independent School District #196 Zero Coupon (FSA Insured)............................................ 5.96(g) 04-01-12 812,983 1,915 Rosemount Independent School District #196 Zero Coupon (FSA Insured)............................................ 6.01(g) 04-01-13 791,067 540 Sartell Independent School District #748 Zero Coupon (MBIA Insured)................................................. 5.98(g) 02-01-13 225,104 1,075 Sartell Independent School District #748 Zero Coupon (MBIA Insured).................................................. 6.10(g) 02-01-15 396,621 1,750 Sartell Independent School District #748 Zero Coupon (MBIA Insured)................................................. 6.15(g) 02-01-16 608,160 1,600 Sartell Independent School District #748 Zero Coupon (MBIA Insured).................................................. 6.15(g)% 02-01-17 523,504 1,850 Sartell Independent School District #748 Series A (MBIA Insured).................................................. 5.75 02-01-15 1,882,597 1,310 South Washington County Independent School District #833 (FGIC Insured).................................................. 4.88 06-01-12 1,222,387 1,350 South Washington County Independent School District #833 (FGIC Insured).................................................. 4.88 06-01-13 1,251,950 2,170 South Washington County Independent School District #833 (FGIC Insured).................................................. 4.88 06-01-14 2,000,241 1,000 Spring Lake Park Independent School District #16, Inverse Floater (MBIA Insured).................................................. 5.87(m) 02-01-17 944,340 3,000 Stillwater Independent School District #834 (MBIA Insured)......... 5.75 02-01-15 3,048,210 1,025 Stillwater Series A (FSA Insured).................................. 5.38 02-01-17 1,013,182 1,025 Stillwater Series A (FSA Insured).................................. 5.38 02-01-21 1,002,358 3,250 Waseca Independent School District #829 (MBIA Insured)............. 5.50 04-01-17 3,251,820 1,680 Washington County ................................................. 5.90 02-01-10 1,733,256 2,000 White Bear Lake Independent School District #624 (FSA Insured)..... 5.30 02-01-14 1,948,440 ---------- 89,372,044 ---------- UTILITIES (17.7%): ------------------------------------------------------------------------------------------------------ 1,750 Bass Brook Pollution Control Revenue, Minnesota Power & Light (MBIA Insured)................................................ 6.00 07-01-22 1,783,320 17,490 Bass Brook Pollution Control Revenue Rfg., Minnesota Power and Light ........................................................ 6.00 07-01-22 17,476,183 3,815 Northern Minnesota Municipal Power Agency Zero Coupon (AMBAC Insured)............................................... 5.85(g) 01-01-09 2,035,570 5,875 Northern Minnesota Municipal Power Agency Series 89A............. 7.25 01-01-16 6,271,563 13,500 Northern Minnesota Municipal Power Agency Series B (AMBAC Insured)............................................... 5.50 01-01-18 13,326,255 2,000 Puerto Rico Aqueduct & Sewer Authority........................... 5.00 07-01-15 1,870,540 3,000 Puerto Rico Aqueduct & Sewer Authority........................... 5.00 07-01-19 2,742,750 1,500 Puerto Rico Electric Power Authority............................. 5.25 07-01-21 1,387,290 2,930 Puerto Rico Electric Power Authority............................. 5.50 07-01-25 2,800,289 3,880 Southern Minnesota Municipal Power Agency Revenue Series A (FGIC Insured)....................................... 5.75 01-01-18 3,695,079 1,125 Southern Minnesota Municipal Power Agency Series B (FGIC Insured)................................................ 5.00 01-01-13 1,066,253 1,560 Southern Minnesota Municipal Power Agency Supply System (AMBAC Insured)............................................... 5.50 01-01-15 1,537,240 7,200 Southern Minnesota Municipal Power Agency (MBIA Insured)......... 4.75 01-01-16 6,474,456 2,000 Southern Minnesota Municipal Power Agency (FGIC Insured)......... 5.75 01-01-18 2,010,780 9,770 Southern Minnesota Municipal Power Agency (MBIA Insured)......... 5.75 01-01-18 9,822,660 4,785 Southern Minnesota Municipal Power Agency Zero Coupon (MBIA Insured)................................................ 6.77(g)% 01-01-19 1,358,365 5,000 Southern Minnesota Municipal Power Agency Zero Coupon (MBIA Insured)................................................ 6.14(g) 01-01-21 1,265,800 550 Western Minnesota Municipal Power Agency Revenue ................ 6.13 01-01-16 550,017 ---------- 77,474,410 ---------- INDUSTRIAL (8.8%): ------------------------------------------------------------------------------------------------------- 1,000 Anoka Resource Recovery Revenue for NSP Series 85................ 7.15 12-01-08 1,071,040 2,000 Becker Pollution Control Revenue for NSP Series 89A.............. 6.80 04-01-07 2,132,500 14,000 Cloquet Pollution Control Revenue for Potlatch Corporation....... 5.90 10-01-26 14,033,740 4,500 Duluth Seaway Port Authority Revenue for Cargill, Inc............ 6.13 05-01-14 4,686,840 1,000 East Grand Forks for American Crystal Sugar Pollution Control Revenue....................................................... 7.75 04-01-18 1,079,070 1,430 Minneapolis Community Development Agency Common Bond Fund Series 86-1 (Fireman's Fund Insured).......................... 7.63 06-01-06 1,471,113 1,000 Minnesota Public Facilities Water Pollution Control.............. 5.38 03-01-14 992,730 4,400 Minnesota Public Facilities Water Pollution Control.............. 6.25 03-01-16 4,670,468 2,200 Richfield CDR for Richfield Shoppes.............................. 8.38(j) 10-01-13 2,395,250 4,574 St. Cloud CDR for Northwest Center Association................... 7.50(b) 08-01-12 4,716,908 1,300 St. Paul Port Authority Fort Road Medical/Twin Parks (Asset Guaranty Reinsurance).................................. 7.50 09-01-02 1,380,977 ---------- 38,630,636 ---------- HEALTH CARE (22.8%): ------------------------------------------------------------------------------------------------------ 1,000 Albert Lea St. John's Lutheran Home Project...................... 8.50 11-01-19 1,067,500 600 Bemidji Hospital Facilities Revenue North County Health.......... 6.05 09-01-16 606,990 1,825 Bemidji Hospital Facilities Revenue North County Health.......... 6.05 09-01-24 1,832,135 1,760 Bemidji Hospital Facilities Revenue North County Health.......... 5.63 09-01-15 1,726,982 2,435 Bemidji Hospital Facilities Revenue North County Health.......... 5.63 09-01-21 2,344,686 2,250 Brainerd Benedictine Health Systems for St. Joseph's Hospital (Connie Lee Insured).......................................... 6.00 02-15-12 2,321,168 9,450 Duluth Benedictine/St. Mary's Health (Connie Lee Insured)........ 6.00 02-15-20 9,636,921 4,295 Duluth Economic Development Authority St. Luke's Hospital (Connie Lee Insured).......................................... 6.40 05-01-18 4,526,243 2,500 Edina Fairview Hospital Revenue.................................. 7.13 07-01-19 2,687,500 500 Glencoe/McLeod County Health Care................................ 8.50 12-01-15 542,335 1,000 Little Canada Health Care 1992 (Presbyterian Homes Guaranteed)... 7.25 07-01-12 1,010,000 3,000 Minneapolis Fairview Hospital Revenue (MBIA Insured)............. 6.50 01-01-11 3,206,220 4,000 Minneapolis Fairview Hospital Revenue Series 1993A (MBIA Insured)................................................ 5.25 11-15-13 3,874,960 2,485 Minneapolis Health Care-American Baptist Homes................... 8.70% 11-01-09 2,690,013 1,360 Minneapolis/St. Paul HRA HealthOne Obligated Group (MBIA Insured)................................................ 7.40 08-15-11 1,504,500 1,045 Minneapolis/St. Paul HRA Children's Hospital (FSA Insured)................................................. 5.50 08-15-25 1,014,173 6,500 Minneapolis/St. Paul HRA Children's Hospital Health Care, Inverse Floater....................................................... 6.37(m) 08-15-25 6,206,070 10,725 Robbinsdale North Memorial Medical Center (AMBAC Insured)........ 5.50 05-15-23 10,419,123 6,000 Rochester Mayo Health Care Revenue Series 92H.................... 6.03 11-15-15 6,208,740 5,900 Rochester Mayo Foundation, Series 1992 D......................... 6.25 11-15-21 6,159,659 2,000 Roseville Presbyterian Homes, Inc. Health Care Project (Presbyterian Homes Guaranteed)............................... 7.50 05-01-07 2,022,500 600 Spring Park Twin Birch Nursing Home (Presbyterian Homes Guaranteed)............................... 8.25 08-01-11 637,500 600 Springfield St. John's Lutheran Home Project..................... 8.50 11-01-19 636,126 10,250 St. Cloud Hospital Facilities Revenue for St. Cloud Hospital (AMBAC Insured)............................................... 5.30 10-01-20 9,753,798 7,300 St. Louis Park Methodist Hospital (AMBAC Insured)................ 5.10 07-01-13 6,743,375 11,220 St. Louis Park Methodist Hospital (AMBAC Insured)................ 5.20 07-01-23 10,457,825 ----------- 99,837,042 ----------- HOUSING (15.5%): ------------------------------------------------------------------------------------------------------ 500 Austin Housing and Redevelopment Authority Courtyard Residence Series 95A.......................................... 7.25 01-01-26 509,080 1,010 Beltrami County ................................................. 6.20 02-01-14 1,002,385 2,500 Brooklyn Center Multifamily Housing Revenue Ponds Family Housing Project-Section 8..................................... 5.90 01-01-20 2,451,300 3,370 Burnsville Multifamily - Bridgeway Apartments (FHA Insured)...... 7.63 02-01-24 3,491,084 1,000 Burnsville Multifamily- Coventry Court Apartments Project (FHA Insured)................................................. 7.50 09-01-17 1,050,120 175 Dakota County Housing and Redevelopment Authority Single Family (GNMA Backed).......................................... 8.10 03-01-16 183,717 1,000 Eagan Forest Ridge Apartments Project (FHA Insured).............. 7.50 09-01-17 1,050,120 400 Eden Prairie Multifamily Revenue, Eden Investments (FHA Insured). 7.40 08-01-25 422,224 1,585 Eden Prairie Multifamily Windslope Apartments -Section 8......... 7.10 11-01-17 1,651,110 7,605 Eden Prairie Multifamily Homes, Tanager Creek (GNMA Insured)..... 8.05 06-20-31 8,728,030 497 Eden Prairie Multifamily Homes Subordinated Tanager Creek........ 8.00(b) 06-20-31 505,076 1,615 Edina Park Plaza Multifamily Housing (FHA Insured)............... 7.50 12-01-09 1,726,322 1,250 Edina Park Plaza Multifamily Housing (FHA Insured)............... 7.70 12-01-28 1,317,213 1,000 Hopkins Renaissance Multifamily Housing-Section 8................ 6.38 04-01-20 1,016,020 1,000 Maplewood Hazel Ridge Apartments Multifamily Housing............. 9.25 12-01-00(c) 1,036,990 1,000 Minneapolis Housing Facility Revenue 1993 Augustana Chapel View 7.00 04-01-18 1,002,670 4,000 Minneapolis Multifamily Mortgage Seward Towers (GNMA Backed) 7.38 12-20-30 4,226,760 2,000 Minneapolis-Nicollet Multifamily Housing ....................... 6.00 12-01-19 2,006,620 1,000 Minnesota Housing Finance Agency Housing Development Series A -Section 8........................................... 7.80% 08-01-18 1,031,720 1,500 Minnesota Housing Finance Agency Multifamily Housing............. 6.95 02-01-14 1,569,225 745 Minnesota Housing Finance Agency Multifamily Housing Series 92A 6.95 08-01-17 771,507 1,205 Minnesota Housing Finance Agency Rental Housing Series B......... 6.25 08-01-22 1,211,856 450 Minnesota Housing Finance Agency Single Family Mortgage Series C...................................................... 7.65 07-01-08 481,685 360 Minnesota Housing Finance Agency Single Family Mortgage.......... 7.30 07-01-09 377,212 180 Minnesota Housing Finance Agency Single Family Mortgage Series B...................................................... 7.30 07-01-10 188,606 1,010 Minnesota Housing Finance Agency Single Family Mortgage Series 91C.................................................... 7.10 07-01-11 1,064,449 955 Minnesota Housing Finance Agency Single Family Mortgage 86 Series B................................................... 7.25 07-01-16 968,876 2,000 Minnetonka Multifamily - Beacon Hill Project (Presbyterian Homes Guaranteed)................................................... 7.70 06-01-25 2,078,320 1,500 Red Wing Housing and Redevelopment Agency Jordan Tower -Section 8 Series 1992.................................. 7.00 01-01-19 1,553,880 2,250 St. Cloud Germain Towers Housing Series 1993 -Section 8.......... 5.90 09-01-20 2,170,913 2,045 St. Cloud Housing and Redevelopment Agency Northway A&B Project -Section 8........................................ 7.50 12-01-18 2,083,344 1,000 Stillwater Multifamily Housing Stillwater Cottages............... 7.00 11-01-27 1,002,250 3,855 St. Louis Park Multifamily Housing Revenue (FHA Insured)......... 6.25 12-01-28 3,913,789 3,865 St. Louis Park Multifamily Westwind Apartments Housing (GNMA Backed)................................................. 5.75 01-01-29 3,792,879 1,848 St. Louis Park Single Family (GNMA Backed)....................... 7.25 04-20-23 1,951,876 1,000 St. Paul Housing and Redevelopment Agency Como Lake Project (FHA Insured)................................................. 7.01(i) 03-01-26 930,000 71 St. Paul Housing and Redevelopment Agency Single Family Mortgage (FNMA Backed)........................................ 6.90 12-01-11 74,973 1,735 St. Paul Housing and Redevelopment Agency Single Family Mortgage (FNMA Backed)........................................ 6.90 12-01-21 1,811,323 2,130 Wadena Housing and Redevelopment Agency Humphrey Manor -Section 8.............................................. 6.00 02-01-19 2,079,519 1,100 Wells Housing and Redevelopment Agency Broadway Apartment Project -Section 8........................................... 7.00 01-01-19 1,155,506 2,050 Willmar Housing and Redevelopment Agency Highland Apartments -Section 8......................................... 5.85 06-01-19 2,000,411 ---------- 67,640,960 ---------- EDUCATION (2.9%): ------------------------------------------------------------------------------------------------------ $ 1,000 Minnesota Higher Education Augsburg College Series 4F1........... 6.25% 05-01-23 $1,009,580 4,000 Minnesota Higher Education Carleton College...................... 5.75 11-01-12 4,086,440 1,250 Minnesota Higher Education Facilities Revenue-Hamline............ 6.00 10-01-12 1,271,050 1,000 Minnesota Higher Education Facilities Revenue-Hamline............ 6.00 10-01-16 1,010,460 1,000 Minnesota Higher Education St. Benedicts College................. 6.20 03-01-16 1,016,650 1,000 Minnesota Higher Education St. Thomas University Series R2....... 5.60 09-01-14 1,000,600 1,540 St. Paul HRA St. Paul Academy Series 1993 ....................... 5.45 10-01-23 1,449,171 2,000 University of Minnesota Series A................................. 5.50(l) 07-01-21 1,958,640 ---------- 12,802,591 ---------- CERTIFICATES OF PARTICIPATION (0.4%): ------------------------------------------------------------------------------------------------------ 1,764 West St. Paul Commercial Mortgage (K-Mart Lessee)................ 7.00 (j) 11-01-07 1,814,742 ----------- OTHER REVENUE (1.7%): ------------------------------------------------------------------------------------------------------ 5,750 Minneapolis Community Development Agency Zero Coupon (MBIA Insured)................................................ 6.70(g) 09-01-09 2,977,350 855 Minneapolis Community Development Agency Common Bond Fund........ 7.95 12-01-11 923,981 795 Minneapolis Community Development Agency Common Bond Fund........ 7.40 12-01-21 833,772 510 Minneapolis Community Development Agency Common Bond Fund 1991-4 Opportunity Workshop Project........................... 7.13 12-01-05 547,011 1,000 Seaway Port Authority Rfdg. Series 93A for Cargill, Inc.......... 5.75 12-01-16 975,650 1,120 St. Louis Park Refunding Revenue G & K Partner, Methodist Hospital Guaranteed........................................... 7.25 06-01-13 1,189,866 --------- 7,447,630 --------- TOTAL INVESTMENTS IN SECURITIES (cost: $414,868,560) (f) $ 435,206,282 =============
See accompanying notes to investments in securities.
VOYAGEUR MINNESOTA INSURED FUND INVESTMENTS IN SECURITIES DECEMBER 31, 1996 - ------------------------------------------------------------------------------------------------------------------- (PERCENTAGE OF EACH INVESTMENT CATEGORY RELATES TO TOTAL NET ASSETS.) MINNESOTA MUNICIPAL BONDS (98.2%): ESCROWED WITH U.S. GOVERNMENT BONDS (24.2%): ------------------------------------------------------------------------------------------------------ $ 1,065 Brainerd Independent School District #181 (FGIC Insured)......... 7.00% 06-01-01 $ 1,170,211 700 Centennial Independent School District #12 (FSA Insured)......... 7.15 02-01-00 756,553 200 Centennial Independent School District #12 (FSA Insured)......... 7.10 02-01-00 215,874 9,000 Dakota, Washington & Anoka Single Family Housing (GNMA Insured)................................................ 8.45(e) 09-01-19 12,082,950 14,115 Dakota & Washington Counties HRA Single Family Mortgage Revenue (GNMA Insured)........................................ 8.38(e) 09-01-21 19,010,364 405 Dakota & Washington Counties HRA (MBIA Insured).................. 8.15(e) 09-01-16 520,777 500 Delano Independent School District #879 (AMBAC Insured).......... 7.25 02-01-01 550,590 1,060 Duluth EDA Healthcare-Duluth Clinic (AMBAC Insured).............. 6.30 11-01-04 1,165,459 200 Elk River Independent School District #728 (FSA Insured)......... 7.00 02-01-00 214,414 1,165 Elk River Independent School District #728 (FSA Insured)......... 6.30 02-01-02 1,253,598 450 Lake of the Woods Independent School District #390 (AMBAC Insured)............................................... 7.35 02-01-99 477,887 5,935 Maplewood Independent School District #622 (MBIA Insured)........ 7.10 02-01-05 6,834,805 11,525 Maplewood Independent School District #622 (FSA Insured)......... 7.10 02-01-05 13,272,305 760 Minnesota State University System (MBIA Insured)................. 7.40 06-30-99 817,023 510 Mora Series A (AMBAC Insured).................................... 6.85 02-01-10 547,913 520 South Washington County Independent School District #833 (FGIC Insured)................................................ 6.88 06-01-00 559,213 5,460 Southern Minnesota Municipal Power Agency (AMBAC Insured)........ 5.75 07-01-16 5,529,748 500 St. Cloud Hospital Facility Revenue (AMBAC Insured).............. 7.00 07-01-01 559,105 500 St. Cloud Hospital Facility Revenue (AMBAC Insured)............ 6.75 07-01-01 554,075 250 St. Francis Independent School District #15 (FGIC Insured)....... 7.60 02-01-98 258,840 500 St. Louis Park Methodist Hospital (AMBAC Insured)................ 7.25 07-01-00 554,865 300 St. Louis Park Multifamily Housing Community Housing Service Revenue (FHA Insured)......................................... 7.38 06-01-97 310,101 2,550 St. Michael-Albertville Independent School District (AMBAC Insured)............................................... 7.25 02-01-98 2,626,500 1,000 Stillwater Independent School District #834 (FGIC Insured)....... 6.75 02-01-99 1,047,170 500 Warroad Independent School District #690 (AMBAC Insured)......... 6.85 02-01-00 534,940 500 Washington County HRA Jail Facilities (MBIA Insured)............ 7.00 02-01-02 553,690 2,000 Western Minnesota Municipal Power Agency, Escrowed to Maturity... 6.60 01-01-10 2,239,840 530 Western Minnesota Municipal Power Agency (MBIA Insured).......... 9.75 01-01-16 793,346 1,000 Wright County (FSA Insured)...................................... 7.20(e) 12-01-99 1,077,160 ---------- 76,089,316 ---------- GENERAL OBLIGATION (32.2%): ------------------------------------------------------------------------------------------------------ 1,575 Alexandria Independent School District #206 (MBIA Insured)....... 6.30 02-01-11 1,669,154 1,675 Alexandria Independent School District #206 (MBIA Insured)....... 6.30 02-01-12 1,770,659 1,775 Alexandria Independent School District #206 (MBIA Insured)....... 6.30 02-01-13 1,874,009 1,030 Anoka-Hennepin Independent School District #11 Series C (FGIC Insured)................................................ 5.00% 02-01-09 1,008,957 1,000 Anoka-Hennepin Independent School District #11 Series C (FGIC Insured)................................................ 5.10 02-01-11 977,390 8,045 Anoka County (FGIC Insured)...................................... 5.90 02-01-11 8,281,925 500 Becker Wastewater Treatment Facility Series A (MBIA Insured)..... 5.95 02-01-14 513,305 6,300 Becker (MBIA Insured) ........................................... 6.25(e) 08-01-15 6,604,920 2,000 Big Lake Independent School District #727 (AMBAC Insured)........ 5.70 02-01-13 2,019,600 1,030 Buffalo Independent School District #887 (FSA Insured)........... 6.10 02-01-15 1,069,274 515 Carver County HRA Jail Facility (MBIA Insured)................... 6.40 02-01-10 544,082 550 Carver County HRA Jail Facility (MBIA Insured)................... 6.40 02-01-11 580,558 585 Carver County HRA Jail Facility (MBIA Insured)................... 6.40 02-01-12 616,169 625 Carver County HRA Jail Facility (MBIA Insured)................... 6.40 02-01-13 657,594 670 Carver County HRA Jail Facility (MBIA Insured)................... 6.40 02-01-14 704,177 545 Cass Lake Independent School District #115 (FSA Insured)......... 5.00 02-01-16 515,499 1,135 Dakota County (AMBAC Insured).................................... 6.40 02-01-08 1,190,331 1,000 Dakota County (AMBAC Insured).................................... 6.45 02-01-09 1,050,000 2,500 Dakota County (AMBAC Insured).................................... 6.45 02-01-10 2,625,000 1,000 Duluth Independent School District #709 Series A (FSA Insured)... 5.20 02-01-11 981,390 1,125 Eden Prairie Independent School District #272, Inverse Floater (MBIA Insured)................................................ 5.62(m) 02-01-15 1,049,164 1,000 Eden Prairie Independent School District #272, Inverse Floater (MBIA Insured)................................................ 5.62(m) 02-01-14 919,130 2,500 Eden Prairie Independent School District #272 (FGIC Insured)..... 5.85 02-01-13 2,542,550 4,200 Eden Prairie Independent School District #272 (FGIC Insured)..... 5.65 02-01-13 4,237,338 3,950 Elk River Independent School District #728 Series 92 B (AMBAC Insured)............................................... 6.00 02-01-09 4,133,398 230 Ellendale-Geneva Independent School District #762 (AMBAC Insured)............................................... 6.00 02-01-10 240,069 245 Ellendale-Geneva Independent School District #762 (AMBAC Insured)............................................... 6.00 02-01-11 255,339 265 Ellendale-Geneva Independent School District #762 (AMBAC Insured)............................................... 6.00 02-01-12 275,134 280 Ellendale-Geneva Independent School District #762 (AMBAC Insured).............................................. 6.00 02-01-13 290,150 300 Ellendale-Geneva Independent School District #762 (AMBAC Insured)............................................... 6.00 02-01-14 310,293 320 Ellendale-Geneva Independent School District #762 (AMBAC Insured).............................................. 6.00 02-01-15 329,642 850 Farmington Independent School District #192 (MBIA Insured)....... 6.80 02-01-11 901,178 1,800 Hennepin County (MBIA Insured)................................... 5.75 10-01-10 1,857,600 1,900 Hopkins Independent School District #270 (MBIA Insured).......... 4.80 02-01-10 1,806,007 2,500 Hopkins Independent School District #270 (MBIA Insured).......... 4.85 02-01-12 2,348,300 3,875 Hopkins Independent School District #270 (MBIA Insured).......... 4.88 02-01-14 3,607,703 1,100 Lakeville Independent School District (FGIC Insured)............. 5.40 02-01-13 1,086,580 475 Moorhead Independent School District #152 (AMBAC Insured)........ 5.90% 02-01-10 487,383 505 Moorhead Independent School District #152 (AMBAC Insured)........ 5.90 02-01-11 517,236 540 Moorhead Independent School District #152 (AMBAC Insured)........ 5.90 02-01-12 551,497 575 Moorhead Independent School District #152 (AMBAC Insured)........ 6.00 02-01-13 589,680 750 Mora Series A (AMBAC Insured).................................... 5.13 02-01-11 738,308 965 North Branch Independent School District #138, Inverse Floater (FGIC Insured)................................................ 6.37(m) 02-01-11 978,037 265 Perham Independent School District #549 (FSA Insured)............ 5.25 02-01-10 263,259 295 Perham Independent School District #549 (FSA Insured)............ 5.30 02-01-11 292,967 1,000 Prior Lake Independent School District #719, Inverse Floater (FGIC Insured)................................................ 5.62(m) 02-01-14 932,590 500 Roseau Independent School District #682 (AMBAC Insured).......... 7.00 02-01-16 532,500 1,860 Rosemount Independent School District #196 Zero Coupon (FSA Insured)................................................. 5.80(g) 04-01-09 984,200 2,240 Rosemount Independent School District #196 Series B Zero Coupon (FSA Insured)................................................. 5.85(g) 04-01-10 1,110,794 625 South St. Paul Independent School District #6 (FGIC Insured)..... 6.25 02-01-10 644,800 500 South St. Paul Independent School District #6 (FGIC Insured)..... 6.45 02-01-11 518,355 300 South St. Paul Independent School District #6 (FGIC Insured)..... 6.45 02-01-12 310,584 1,430 South Washington County Independent School District #833 (FGIC Insured)................................................ 6.13 06-01-09 1,487,071 2,720 South Washington County Independent School District #833 (FGIC Insured)................................................ 6.13 06-01-11 2,822,571 2,175 Spring Lake Park Independent School District #16, Inverse Floater (MBIA Insured)............................................... 5.87(m) 02-01-14 2,088,392 1,000 St. Cloud Independent School District #742 (FGIC Insured)....... 6.05 02-01-09 1,049,010 1,845 St. Francis Independent School District #15 (FGIC Insured)....... 5.90 04-01-10 1,914,852 2,995 Stillwater Independent School District #834 (FGIC Insured)....... 5.50 02-01-10 3,007,998 600 Waconia Independent School District #110 Series A (FSA Insured).. 5.15 02-01-08 600,750 3,960 Warroad Independent School District #690 (AMBAC Insured)......... 5.20 02-01-13 3,893,393 400 Western Lake Superior Series A (MBIA Insured).................... 6.00(e) 10-01-08 412,000 425 Western Lake Superior Series A (MBIA Insured).................... 6.10(e) 10-01-09 437,219 450 Western Lake Superior Series A (MBIA Insured).................... 6.20(e) 10-01-10 464,625 475 Western Lake Superior Series A (MBIA Insured).................... 6.20(e) 10-01-11 488,656 7,625 White Bear Lake Independent School District #624 (FSA Insured)... 5.30 02-01-11 7,520,690 4,100 Willmar Independent School District #347 (AMBAC Insured)......... 6.25 02-01-15 4,269,125 ----------- 101,352,110 ----------- UTILITIES (11.9%): ------------------------------------------------------------------------------------------------------ 5,250 Bass Brook Pollution Control Revenue for Minnesota Power & Light Company (MBIA Insured).......................... 6.00 07-01-22 5,349,960 500 Marshall Utility Revenue (FSA Insured)........................... 6.45 07-01-10 535,170 100 Marshall Utility Revenue (FSA Insured)........................... 6.45 07-01-11 106,920 500 Marshall Utility Revenue (FSA Insured)........................... 6.50 07-01-12 534,545 500 Marshall Utility Revenue (FSA Insured)........................... 6.50 07-01-13 533,835 300 Marshall Utility Revenue (FSA Insured)........................... 5.25 01-01-10 296,937 325 Marshall Utility Revenue (FSA Insured)........................... 5.25 01-01-11 319,940 735 Moorhead Public Utilities (MBIA Insured)......................... 6.25 11-01-12 772,132 4,200 Northern Minnesota Municipal Power Agency Series B (AMBAC Insured)............................................... 5.50% 01-01-18 4,145,946 700 Northern Municipal Power Agency Electric System Revenue (AMBAC Insured)............................................... 5.90 01-01-08 737,905 750 Shakopee Public Utilities Commission Revenue (AMBAC Insured)..... 5.60 08-01-18 745,973 1,000 Southern Minnesota Municipal Power Agency Revenue (MBIA Insured)................................................ 4.75 01-01-16 899,230 1,330 Southern Minnesota Municipal Power Agency (AMBAC Insured)........ 5.75 01-01-18 1,337,169 4,570 Southern Minnesota Municipal Power Agency (FGIC Insured)......... 5.75 01-01-18 4,594,632 750 Southern Minnesota Municipal Power Agency, Inverse Floater (FGIC Insured)................................................ 6.87(m) 01-01-18 753,503 2,000 St. Paul Sewer Revenue (AMBAC Insured)........................... 5.60 12-01-08 2,058,980 300 Western Municipal Power Agency Series A (MBIA Insured)........... 6.88 01-01-09 305,955 1,025 Western Municipal Power Agency (AMBAC Insured)................... 5.50 01-01-11 1,026,251 2,000 Western Municipal Power Agency (AMBAC Insured)................... 5.50 01-01-12 1,993,920 10,490 Western Municipal Power Agency (AMBAC Insured)................... 5.50 01-01-13 10,443,528 ---------- 37,492,431 ---------- INDUSTRIAL (0.5%): ------------------------------------------------------------------------------------------------------ 1,500 Minnesota Public Facility Authority Water Pollution Control (MBIA Insured)................................................ 6.50 03-01-14 1,607,235 ----------- HEALTH CARE (18.2%): ------------------------------------------------------------------------------------------------------ 1,250 Bloomington Masonic Home Care Center (AMBAC Insured)............. 5.90 07-01-09 1,298,025 1,500 Brainerd Benedictine Health Care Systems (Connie Lee Insured).... 6.00 02-15-12 1,547,445 2,000 Brainerd Benedictine Health Care Systems(Connie Lee Insured)..... 6.00 02-15-20 2,029,180 1,630 Detroit Lakes Benedictine Health (Connie Lee Insured)............ 6.00 02-15-12 1,689,642 2,135 Detroit Lakes Benedictine Health (Connie Lee Insured)............ 6.00 02-15-19 2,180,134 2,690 Duluth EDA HealthCare-Duluth Clinic (AMBAC Insured) ............. 6.30 11-01-22 2,827,109 1,300 Duluth EDA Health Care Facility Revenue (Connie Lee Insured)..... 6.00 02-15-20 1,325,714 5,000 Duluth EDA HealthCare Revenue, Inverse Floater (Connie Lee Insured).......................................... 7.37(m) 02-15-17 5,263,700 3,335 Duluth St. Luke's Hospital (Connie Lee Insured).................. 6.40 05-01-10 3,553,309 500 Duluth St. Luke's Hospital (Connie Lee Insured).................. 6.40 05-01-18 526,920 3,000 Minneapolis Fairview Hospital Series 91B (MBIA Insured).......... 6.50 01-01-11 3,206,220 3,750 Minneapolis Fairview Hospital Series 93A (MBIA Insured).......... 5.25 11-15-19 3,553,912 2,370 Minneapolis HRA HealthOne (MBIA Insured)......................... 7.40 08-15-11 2,621,813 600 Minneapolis HRA HealthOne (MBIA Insured)......................... 7.40 08-15-05 663,750 13,240 Minneapolis/Saint Paul Healthspan Series 93A (AMBAC Insured)..... 5.00 11-15-13 12,469,167 1,005 Minneapolis/St. Paul HRA Childrens Hospital (FSA Insured)........ 5.70 08-15-16 1,006,518 1,310 Minneapolis/St. Paul HRA Health Care, Inverse Floater (FSA Insured)................................................. 6.77(m) 08-15-16 1,318,096 5,400 Robbinsdale North Memorial Medical (AMBAC Insured)............... 5.50 05-15-23 5,245,992 435 Robbinsdale Hospital Revenue Series B (AMBAC Insured)............ 5.30 05-15-06 440,951 750 Robbinsdale Hospital Revenue Series B (AMBAC Insured)............ 5.30 05-15-07 755,483 150 Robbinsdale Hospital Revenue Series A (AMBAC Insured)............ 5.30 05-15-07 151,097 400 St. Cloud Hospital Revenue Series C (AMBAC Insured).............. 6.75% 07-01-11 443,260 145 St. Cloud Nursing Home Revenue Series A (AMBAC Insured).......... 5.35 10-01-16 140,437 2,500 St. Louis Park Healthcare, Inverse Floater (AMBAC Insured)....... 5.77(m) 07-01-23 2,225,525 1,000 St. Paul Ramsey Medical (AMBAC Insured).......................... 5.50 05-15-13 991,200 ---------- 57,474,599 ---------- HOUSING (10.1%): ------------------------------------------------------------------------------------------------------ 3,257 Chaska Waters Edge Multifamily Revenue (GNMA Insured)............ 7.30 01-20-30 3,561,823 6,450 Dakota County HRA Single Family Mortgage Revenue (FNMA Insured)................................................ 6.70 10-01-17 6,700,002 200 Dakota, Washington and Stearns Counties HRA Single Family Mortgage Revenue (MBIA Insured).............................. 7.85 12-01-30 211,638 3,790 Hopkins Multi Family Housing-Auburn Apartments (GNMA Insured)................................................ 8.05 06-20-31 4,349,669 80 Minneapolis and St. Paul Housing Finance Board Housing Project Phase V (GNMA Collateral) .................................... 8.88(e) 11-01-18 82,404 1,300 Minneapolis and St. Paul Housing Finance Board Housing Project Phase IX (GNMA Collateral).................................... 7.25(e) 08-01-21 1,365,520 870 Minneapolis and St. Paul Housing Finance Board Housing Project Phase IX (GNMA Collateral).................................... 7.30(e) 08-01-31 911,038 170 Minneapolis and St. Paul Housing Finance Board Single Family Mortgage Revenue (GNMA Backed)................................ 8.13(e) 12-01-14 179,692 130 Minneapolis and St. Paul Housing Finance Board Single Family Mortgage Revenue (GNMA Backed)................................ 8.30 08-01-21 135,958 2,480 Minnesota Housing Finance Agency Single Family Housing Rental (AMBAC Insured)............................................... 5.95 02-01-15 2,502,295 400 Minnesota Housing Finance Agency Single Family Housing Series C (MBIA Insured)....................................... 9.00(e)(h) 08-01-18 413,640 170 Minnesota Housing Finance Agency Single Family Mortgage Revenue Series 1988C (MBIA Insured)........................... 8.50(e)(h) 07-01-19 176,718 330 Minnesota Housing Finance Agency Single Family Mortgage Revenue (AMBAC Insured)....................................... 7.95(e) 07-01-22 352,117 1,435 Minnesota Housing Finance Agency Single Family Mortgage Revenue (AMBAC Insured)....................................... 7.45(e) 07-01-22 1,514,772 510 Minnesota Housing Finance Agency Single Family Mortgage Revenue (AMBAC Insured)....................................... 7.05(e) 07-01-22 530,104 80 Minnesota Housing Finance Agency Single Family Mortgage Revenue Series A (FHA Insured)................................ 8.38(h) 02-01-15 83,816 150 Minnesota Housing Finance Agency Single Family Mortgage Revenue Series B (MBIA Insured)............................... 7.25(h) 07-01-06 153,006 65 Minnesota Housing Finance Agency Single Family Mortgage Revenue Series A (FHA Insured)................................ 8.50(h) 02-01-17 67,062 500 Minnetonka Multifamily Housing Cedar Hills Project (FHA Insured). 7.50(h) 12-01-27 520,580 400 Minnetonka Multifamily Housing Cedar Hills Project (FHA Insured). 7.50(h)% 12-01-17 416,732 4,000 St. Paul HRA Multifamily Housing (FNMA Backed)................... 6.60 10-01-12 4,158,880 2,410 South St. Paul HRA Single Family Mortgage Series 1993 (FNMA Insured)................................................ 5.75 09-01-20 2,379,128 1,055 White Bear Lake Multifamily Housing Lake Square (FHA Insured).... 5.88 02-01-15 1,063,735 ---------- 31,830,329 ---------- OTHER REVENUE (0.4%): ------------------------------------------------------------------------------------------------------ 1,140 Minneapolis Tax Increment Revenue (MBIA Insured)................. 7.00 03-01-03 1,172,775 --------- CERTIFICATES OF PARTICIPATION (0.7%): ------------------------------------------------------------------------------------------------------ 2,000 Stearns County HRA Courthouse Project (AMBAC Insured)............ 7.00 02-01-11 2,130,000 --------- TOTAL INVESTMENTS IN SECURITIES (cost: $294,856,518) (f) 309,148,795 ============
See accompanying notes to investments in securities.
VOYAGEUR MINNESOTA LIMITED TERM TAX FREE FUND INVESTMENTS IN SECURITIES (CONTINUED) DECEMBER 31, 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 (101.4%): ESCROWED WITH U.S. GOVERNMENT BONDS (51.2%): ------------------------------------------------------------------------------------------------------ $1,205 Austin Independent School District #492 (MBIA Insured)........... 6.88% 02-01-01 $1,307,027 3,015 Braham Independent School District #314 (AMBAC Insured).......... 6.30 02-01-01 3,214,653 250 Duluth EDA St. Mary's Hospital................................... 7.80 02-15-97 251,107 250 Duluth EDA St. Mary's Hospital................................... 7.90 02-15-98 260,092 150 Duluth EDA St. Mary's Hospital................................... 7.90 02-15-99 160,794 615 Eden Valley Watkins Independent School District #463 (FSA Insured)................................................. 6.60 02-01-02 670,030 250 Eden Valley Watkins Independent School District #463 (FSA Insured)................................................ 6.55 02-01-02 271,810 2,570 Mankato Independent School District #77 (FSA Insured)........... 6.35 02-01-02 2,762,801 1,410 Minneapolis Series C ............................................ 6.70 03-01-02(c) 1,549,787 400 Minneapolis/Saint Paul HealthOne Series C........................ 7.45 08-15-99 430,852 325 Minneapolis/Saint Paul HealthOne Series B........................ 7.55 08-15-00 358,680 4,000 Minnesota State.................................................. 6.25 08-01-02 4,337,200 800 Olmsted County................................................... 6.85 02-01-01 871,648 900 Olmsted County................................................... 6.90 02-01-01 982,260 950 Olmsted County................................................... 6.95 02-01-01 1,038,587 1,500 Rush City Independent School District #139 (AMBAC Insured)....... 6.30 02-01-01 1,599,330 2,740 St. Cloud Hospital Facility Revenue (AMBAC Insured).............. 7.00 07-01-01 3,063,895 3,500 St. Louis Park Methodist Hospital (AMBAC Insured)................ 7.25 07-01-00 3,884,055 3,000 Waconia Independent School District #110 (FGIC Insured).......... 6.40 02-01-00 3,165,120 4,000 Washington County Jail (MBIA Insured)............................ 7.00 02-01-02 4,429,520 ---------- 34,609,248 ---------- GENERAL OBLIGATION (3.7%): ------------------------------------------------------------------------------------------------------ 1,000 Eden Prairie Independent School District #272.................... 5.25 02-01-02 1,029,970 1,175 Olmsted County Resource Recovery Series A........................ 5.90 02-01-05 1,229,273 225 Western Lake Superior Sanitation District........................ 6.10 10-01-00 230,891 ---------- 2,490,134 ---------- UTILITIES (5.2%): ------------------------------------------------------------------------------------------------------ 2,500 Eveleth IDR for Minnesota Power & Light Company.................. 6.13 01-01-04 2,623,550 860 Northern Minnesota Municipal Power Agency........................ 7.20 01-01-99 905,812 ---------- 3,529,362 ---------- INDUSTRIAL (16.6%): ------------------------------------------------------------------------------------------------------ 1,000 Brooklyn Center CDR Brookdale Association (NWNL Guaranteed)...... 5.70 06-01-01 1,000,900 260 Duluth Gross Revenue Bond-Duluth Entertainment Project........... 5.75 12-01-97 262,002 275 Duluth Gross Revenue Bond-Duluth Entertainment Project........... 6.00 12-01-98 279,502 1,250 Duluth Gross Revenue Bond-Duluth Entertainment Project........... 7.00 12-01-03 1,345,263 250 Duluth Gross Revenue Rec. Facility Duluth Entertainment.......... 7.30 12-01-06 273,827 3,520 Metropolitan Council HHH Metrodome Sports Facility Revenue 1992 6.00 10-01-09 3,615,955 1,720 Minnesota Public Facilities Authority Revenue Series A........... 6.55 03-01-03 1,874,508 300 St. Paul HRA Minnesota Public Radio, (LOC: First Bank)........... 6.40% 06-01-98 308,541 100 St. Paul HRA Minnesota Public Radio, (LOC: First Bank)........... 6.60 06-01-99 104,843 2,000 St. Paul Minnesota CDR Fort Rd Medical (Asset Guaranty).......... 7.50 09-01-02 2,124,580 ---------- 11,189,921 ---------- HEALTH CARE (9.2%): ------------------------------------------------------------------------------------------------------ 100 Fergus Falls Health Care Facility Broer Memorial Home Project.... 6.20 11-01-05 100,124 200 Fergus Falls Health Care Facility Broer Memorial Home Project.... 6.30 11-01-06 200,268 200 Fergus Falls Health Care Facility Broer Memorial Home Project.... 6.40 11-01-07 200,932 240 Fergus Falls Health Care Facility Broer Memorial Home Project.... 6.60 11-01-09 240,485 260 Fergus Falls Health Care Facility Broer Memorial Home Project.... 6.70 11-01-10 261,638 1,000 Maplewood Healthcare Facility Healtheast......................... 5.70 11-15-02 1,003,670 2,200 Maplewood Healthcare Facility Healtheast......................... 5.95 11-15-06 2,214,058 905 Minneapolis Health Care Facility Jones-Harrison Project.......... 8.35 09-01-21 978,359 200 Rochester Nursing Home & Multifamily Housing Revenue Samaritan Bethany, Inc................................................. 5.60 05-01-02 199,854 250 Rochester Nursing Home & Multifamily Housing Revenue Samaritan Bethany, Inc.................................................. 5.85 05-01-03 251,120 300 Rochester Nursing Home & Multifamily Housing Revenue Samaritan Bethany, Inc.................................................. 6.00 05-01-04 301,734 250 Rochester Nursing Home & Multifamily Housing Revenue Samaritan Bethany, Inc.................................................. 6.10 05-01-05 251,440 --------- 6,203,682 --------- HOUSING (1.3%): ------------------------------------------------------------------------------------------------------ 580 Burnsville Multifamily Housing Revenue Burnsville Apts Project, (LOC: TCF).................................................... 7.00 09-01-99(c) 585,800 215 Mankato Multifamily Housing Hi Hills (Asset Guaranty)............ 7.75 10-01-97(c) 215,720 70 Minnesota HFA Single Family Mortgage Revenue Series C............ 6.30 01-01-99 72,086 ------- 873,606 ------- EDUCATION (8.3%): ------------------------------------------------------------------------------------------------------ 3,700 Minnesota Higher Education Facility Authority Augsburg Series 4F2.................................................... 5.75 05-01-16 3,738,628 495 Minnesota Higher Education Facility Authority Hamline............ 5.35 10-01-04 500,298 1,400 University of Minnesota ......................................... 4.80 08-15-03 1,401,750 --------- 5,640,676 --------- CERTIFICATES OF PARTICIPATION (3.7%): ------------------------------------------------------------------------------------------------------ 245 Beltrami County Housing and Redevelopment Authority Revenue...... 5.60 02-01-05 243,922 315 Beltrami County Housing and Redevelopment Authority Revenue...... 5.70 02-01-06 313,488 335 Beltrami County Housing and Redevelopment Authority Revenue...... 5.80 02-01-07 334,377 355 Beltrami County Housing and Redevelopment Authority Revenue...... 5.90 02-01-08 354,297 380 Beltrami County Housing and Redevelopment Authority Revenue ..... 6.00% 02-01-09 378,241 405 Beltrami County Housing and Redevelopment Authority Revenue...... 6.00 02-01-10 400,148 430 Beltrami County Housing and Redevelopment Authority Revenue...... 6.10 02-01-11 426,139 32 Red Wing Pottery Project......................................... 7.75(k) 12-15-97 31,882 --------- 2,482,494 --------- OTHER REVENUE (2.2%): ------------------------------------------------------------------------------------------------------ 225 Minneapolis CDA - Common Bond Fund............................... 7.90 06-01-97 228,001 1,185 Richfield Shoppes CDR-Richfield Shoppes Project.................. 7.50(b) 10-01-04 1,254,619 --------- 1,482,620 --------- TOTAL INVESTMENTS IN SECURITIES (cost: $66,062,034) (f) $68,501,743 ===========
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 - -------------------------------------------------------------------------------- (a) Securities are valued by procedures described in note 1 to the financial statements. (b) These securities have been identified by portfolio management as illiquid. The total of such securities is equal to 6.0%, 1.2% and 1.9% of total net assets for Minnesota High Yield Fund, Minnesota Tax Free Fund and Minnesota Limited Term Tax Free Fund, respectively. Such determinations are reviewed from time to time by Fund management and are subject to change. (c) The maturity date for this issue represents a mandatory put or date 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- investment Non- Aaa/AAA Aa/AA A/A Baa/BBB grade rated Total ------- ----- --- ------- ----- ----- ----- Minnesota High Yield Fund............. 9% 7% 16% 17% 10% 41% 100% Minnesota Tax Free Fund............... 54% 12% 15% 9% -- 10% 100% Minnesota Insured Fund ............... 99% 1% -- -- -- -- 100% Minnesota Limited Term Tax Free Fund.. 53% 10% 9% 18% -- 10% 100%
(e) These securities are subject to the Alternative Minimum Tax. As of December 31, 1996, the aggregate market value of securities subject to the Alternative Minimum Tax is equal to 14.8% of total net assets for Minnesota Insured Fund and 13.6% of total net assets for Minnesota High Yield Fund. (f) Also represents the cost of securities for federal income tax purposes for Minnesota High Yield Fund, 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 $295,300,017. 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................... $104,091 $(15,230) $88,861 Minnesota Tax Free Fund..................... $20,707,905 $(370,183) $20,337,722 Minnesota Insured Fund...................... $14,143,863 $(295,085) $13,848,778 Minnesota Limited Term Tax Free Fund........ $2,459,629 $(19,950) $ 2,439,709
(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 December 31, 1996 the principal amount of issue in default amounted to $1,000,000 for Minnesota Tax Free Fund and is equal to .2% of the Fund's total net assets. 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 considered illiquid and 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 .96% of total net assets. (k) Minnesota Limited Term Tax Free Fund entered into the following restricted security transaction: 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 $31,882 as of December 31, 1996. This private placement is considered illiquid and is equal to .05% of the Fund's total net assets. (l) At December 31, 1996, the cost of securities purchased on a when issued basis was $678,716 for Minnesota High Yield Fund and $1,952,660 for Minnesota Tax Free 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 December 31, 1996. As of December 31, 1996, the total of such securities is equal to 5.1% and 4.9% of total net assets for Minnesota Tax Free Fund and Minnesota Insured Fund, respectively. Inverse floaters are considered illiquid securities. FEDERAL INCOME TAX INFORMATION - -------------------------------------------------------------------------------- Information for federal income tax purposes is presented as an aid to shareholders in reporting the dividend distributions for the year ended December 31, 1996 shown below. Exempt interest dividends are exempt from federal income tax and should not be included in shareholder's gross income, but need to be reported on the income tax return for informational purposes. Each shareholder should consult a tax adviser about reporting this income for state and local purposes. In January 1997, the Fund separately provided each shareholder with tax information for calendar year 1996. VOYAGEUR MINNESOTA HIGH YIELD FUND --------------------------------------------------- PER CLASS PER CLASS PER CLASS A SHARE B SHARE C SHARE ---------------- ---------------- ----------------- PERIOD FROM PERIOD FROM PERIOD FROM JUNE 4, 1996 JUNE 12, 1996 JUNE 7, 1996 TO DECEMBER 31, TO DECEMBER 31, TO DECEMBER 31, 1996 1996 1996 ---------------- ---------------- ----------------- Net investment income distributions (none qualifying for corporate dividend received deduction)...................... $.3508 $.2926 $.2976 ====== ====== ======
VOYAGEUR MINNESOTA TAX FREE FUND --------------------------------------------------- PER CLASS PER CLASS PER CLASS A SHARE B SHARE C SHARE ---------------- ---------------- ----------------- YEAR YEAR YEAR ENDED ENDED ENDED DECEMBER 31, DECEMBER 31, DECEMBER 31, 1996 1996 1996 ---------------- ---------------- ----------------- Net investment income distributions (none qualifying for corporate dividend received deduction)...................... $.6292 $.5596 $.5370 ====== ====== ======
VOYAGEUR MINNESOTA INSURED FUND --------------------------------------------------- PER CLASS PER CLASS PER CLASS A SHARE B SHARE C SHARE ---------------- ---------------- ----------------- YEAR YEAR YEAR ENDED ENDED ENDED DECEMBER 31, DECEMBER 31, DECEMBER 31, 1996 1996 1996 ---------------- ---------------- ----------------- Net investment income distributions (none qualifying for corporate dividend received deduction)...................... $.5151 $.4503 $.4363 ====== ====== ======
VOYAGEUR MINNESOTA LIMITED TERM TAX FREE FUND --------------------------------------------------- PER CLASS PER CLASS PER CLASS A SHARE B SHARE C SHARE ---------------- ---------------- ----------------- YEAR YEAR YEAR ENDED ENDED ENDED DECEMBER 31, DECEMBER 31, DECEMBER 31, 1996 1996 1996 ---------------- ---------------- ----------------- Net investment income distributions (none qualifying for corproate dividend received deduction)...................... $.5125 $.4449 $.4301 ====== ====== ======
For federal income tax purposes, 100.00%, 99.54%, 99.82%, and 99.98% of the above net investment income distributions for Voyageur Minnesota High Yield Fund, Voyageur Minnesota Tax Free Fund, Voyageur Minnesota Insured Fund and Voyageur Minnesota Limited Term Tax Free Fund, respectively, were derived from interest exempt from federal income tax. VOY-MNAR 3/97 -----END PRIVACY-ENHANCED MESSAGE-----