-----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, Afq54rDozJzC0NWKsKjNZFOtrYOLYZq0gHbjv1i3I8QSxDO36Y+727iDpXrhWBeo afp2wevvXe++WzzFDjZY3Q== 0000950116-02-002189.txt : 20020920 0000950116-02-002189.hdr.sgml : 20020920 20020920161233 ACCESSION NUMBER: 0000950116-02-002189 CONFORMED SUBMISSION TYPE: 497 PUBLIC DOCUMENT COUNT: 1 FILED AS OF DATE: 20020920 FILER: COMPANY DATA: COMPANY CONFORMED NAME: VOYAGEUR TAX FREE FUNDS CENTRAL INDEX KEY: 0000733362 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 497 SEC ACT: 1933 Act SEC FILE NUMBER: 002-87910 FILM NUMBER: 02769041 BUSINESS ADDRESS: STREET 1: 90 SOUTH SEVENTH STREET STREET 2: SUITE 4400 CITY: MINNEAPOLIS STATE: MN ZIP: 55402 BUSINESS PHONE: 2152552127 MAIL ADDRESS: STREET 1: 90 SOUTH SEVENTH STREET STREET 2: SUITE 4400 CITY: MINNEAPOLIS STATE: MN ZIP: 55402 FORMER COMPANY: FORMER CONFORMED NAME: DOUBLE EXEMPT FLEX FUND INC DATE OF NAME CHANGE: 19900131 FORMER COMPANY: FORMER CONFORMED NAME: VOYAGEUR MINNESOTA TAX FREE FUNDS INC DATE OF NAME CHANGE: 19910226 FORMER COMPANY: FORMER CONFORMED NAME: VOYAGEUR TAX FREE FUNDS INC DATE OF NAME CHANGE: 19920703 FILER: COMPANY DATA: COMPANY CONFORMED NAME: VOYAGEUR INSURED FUNDS CENTRAL INDEX KEY: 0000809064 STATE OF INCORPORATION: DE FISCAL YEAR END: 0831 FILING VALUES: FORM TYPE: 497 SEC ACT: 1933 Act SEC FILE NUMBER: 033-11235 FILM NUMBER: 02769040 BUSINESS ADDRESS: STREET 1: ONE COMMERCE SQUARE STREET 2: 2005 MARKET STREET CITY: PHILADELPHIA STATE: PA ZIP: 19103 BUSINESS PHONE: (215) 2155-2127 MAIL ADDRESS: STREET 1: ONE COMMERCE SQUARE STREET 2: 2005 MARKET STREET CITY: PHILADELPHIA STATE: PA ZIP: 19103 FORMER COMPANY: FORMER CONFORMED NAME: MINNESOTA INSURED FUND INC DATE OF NAME CHANGE: 19900131 FORMER COMPANY: FORMER CONFORMED NAME: VOYAGEUR MINNESOTA INSURED FUNDS INC DATE OF NAME CHANGE: 19910926 FORMER COMPANY: FORMER CONFORMED NAME: VOYAGEUR INSURED FUNDS INC DATE OF NAME CHANGE: 19920703 FILER: COMPANY DATA: COMPANY CONFORMED NAME: VOYAGEUR MUTUAL FUNDS II CENTRAL INDEX KEY: 0000809872 IRS NUMBER: 841044878 STATE OF INCORPORATION: DE FISCAL YEAR END: 0831 FILING VALUES: FORM TYPE: 497 SEC ACT: 1933 Act SEC FILE NUMBER: 033-11495 FILM NUMBER: 02769042 BUSINESS ADDRESS: STREET 1: ONE COMMERCE SQUARE STREET 2: 2005 MARKET STREET CITY: PHILADELPHIA STATE: PA ZIP: 19103 BUSINESS PHONE: (215) 255-2127 MAIL ADDRESS: STREET 1: ONE COMMERCE SQUARE STREET 2: 2005 MARKET STREET CITY: PHILADELPHIA STATE: PA ZIP: 19103 FORMER COMPANY: FORMER CONFORMED NAME: COLORADO DOUBLE TAX EXEMPT FUND INC DATE OF NAME CHANGE: 19900625 FORMER COMPANY: FORMER CONFORMED NAME: VOYAGEUR COLORADO TAX FREE FUND INC DATE OF NAME CHANGE: 19920703 FORMER COMPANY: FORMER CONFORMED NAME: VOYAGEUR MUTUAL FUNDS INC-II DATE OF NAME CHANGE: 19940328 FILER: COMPANY DATA: COMPANY CONFORMED NAME: VOYAGEUR MUTUAL FUNDS CENTRAL INDEX KEY: 0000906236 IRS NUMBER: 411756458 STATE OF INCORPORATION: DE FISCAL YEAR END: 0831 FILING VALUES: FORM TYPE: 497 SEC ACT: 1933 Act SEC FILE NUMBER: 033-63238 FILM NUMBER: 02769043 BUSINESS ADDRESS: STREET 1: 90 SOUTH SEVENTH ST STREET 2: STE 4400 CITY: MINNEAPOLIS STATE: MN ZIP: 55402-4115 BUSINESS PHONE: 2152552127 MAIL ADDRESS: STREET 1: 90 SOUTH SEVENTH ST STREET 2: STE 4400 CITY: MINNEAPOLIS STATE: MN ZIP: 55402-4115 FORMER COMPANY: FORMER CONFORMED NAME: VOYAGEUR MUTUAL FUNDS INC DATE OF NAME CHANGE: 19930714 FILER: COMPANY DATA: COMPANY CONFORMED NAME: VOYAGEUR INVESTMENT TRUST CENTRAL INDEX KEY: 0000879342 STATE OF INCORPORATION: MA FISCAL YEAR END: 0831 FILING VALUES: FORM TYPE: 497 SEC ACT: 1933 Act SEC FILE NUMBER: 033-42827 FILM NUMBER: 02769044 BUSINESS ADDRESS: STREET 1: ONE COMMERCE SQUARE STREET 2: 2005 MARKET STREET CITY: PHILADELPHIA STATE: PA ZIP: 19103 BUSINESS PHONE: (215) 255-2127 MAIL ADDRESS: STREET 1: ONE COMMERCE SQUARE STREET 2: 2005 MARKET STREET CITY: PHILADELPHIA STATE: PA ZIP: 19103 FILER: COMPANY DATA: COMPANY CONFORMED NAME: VOYAGEUR INTERMEDIATE TAX FREE FUNDS CENTRAL INDEX KEY: 0000773675 STATE OF INCORPORATION: DE FISCAL YEAR END: 0228 FILING VALUES: FORM TYPE: 497 SEC ACT: 1933 Act SEC FILE NUMBER: 002-99266 FILM NUMBER: 02769045 BUSINESS ADDRESS: STREET 1: ONE COMMERCE SQUARE STREET 2: 2005 MARKET STREET CITY: PHILADELPHIA STATE: PA ZIP: 19103 BUSINESS PHONE: (215) 255-2127 MAIL ADDRESS: STREET 1: ONE COMMERCE SQUARE STREET 2: 2005 MARKET STREET CITY: PHILADELPHIA STATE: PA ZIP: 19103 FORMER COMPANY: FORMER CONFORMED NAME: DOUBLE EXEMPT CAPITAL CONSERVATION FUND INC DATE OF NAME CHANGE: 19900131 FORMER COMPANY: FORMER CONFORMED NAME: VOYAGEUR MINNESOTA INTERMEDIATE TAX FREE FUNDS INC DATE OF NAME CHANGE: 19920305 FORMER COMPANY: FORMER CONFORMED NAME: VOYAGEUR INTERMEDIATE TAX FREE FUNDS INC DATE OF NAME CHANGE: 19920703 497 1 four97.txt 497 Delaware Tax-Free Arizona Fund Delaware Tax-Free Arizona Insured Fund Delaware Tax-Free California Fund Delaware Tax-Free California Insured Fund Delaware Tax-Free Colorado Fund Delaware Tax-Free Florida Fund Delaware Tax-Free Florida Insured Fund Delaware Tax-Free Idaho Fund Delaware Tax-Free Minnesota Fund Delaware Tax-Free Minnesota Intermediate Fund Delaware Tax-Free Minnesota Insured Fund Delaware Minnesota High-Yield Municipal Bond Fund Delaware Tax-Free Missouri Insured Fund Delaware Tax-Free New York Fund Delaware Tax-Free Oregon Insured Fund (each a "Fund") Supplement to the Funds' Class A, Class B and Class C Prospectus dated October 31, 2001 The Board of Trustees has approved the following changes in sales charges for Class A and Class B share purchases effective November 18, 2002. Please carefully review the changes with your financial advisor when making an investment decision as to which class of shares best suits your investment goals and time frame and whether to make your investment before or after November 18, 2002. For all Funds, except Delaware Tax-Free Minnesota Intermediate Fund, all references in this Prospectus to the maximum Class A sales charge are replaced with a new maximum sales charge of 4.50%. Additional changes to the Class A sales charge schedule are described below. All references in this Prospectus to the Class B contingent deferred sales charge (CDSC) are replaced with the new Class B contingent deferred sales charge of 4.00% during the first year, 3.00% during the second year, 2.25% during the third year, 1.50% during the fourth and fifth years, 1.00% during the sixth year and 0% thereafter. For Delaware Tax-Free Minnesota Intermediate Fund, all references in this Prospectus to the Class B contingent deferred sales charge are replaced with the new Class B contingent deferred sales charge of 2.00% during the first year, 1.00% during the second and third years and 0% thereafter. The Class A sales charge (other than the amount of dealer commission on large purchases as described below) is not affected. For all Funds, the maximum amount of Class B shares that you may purchase at any one time will be lowered to $100,000. The Class C CDSC and purchase amount are not affected. P5-320 J8595 (BUR) 9/02 Delaware Tax-Free Arizona Fund and Delaware Tax-Free Arizona Insured Fund only: The following information, which reflects the new sales charges described above, replaces the return and fee tables on pages 3 and 4 of the Prospectus under "Profile: Arizona Tax-Free Funds." The following average annual return table reflects the same time period and data as the table in the current Prospectus, except for the use of the new sales charges:
Average annual returns for periods ending 12/31/00 - ------------------------------------------------------------------------------------------------------------------------------------ Tax-Free Arizona Fund 1 year 5 years lifetime** - ------------------------------------------------------------------------------------------------------------------------------------ Class A return before taxes 6.03% 4.27% 5.90% - ------------------------------------------------------------------------------------------------------------------------------------ Class A return after taxes on distributions 6.03% 4.14% 5.72% - ------------------------------------------------------------------------------------------------------------------------------------ Class A return after taxes on distributions and sale of Fund shares 5.88% 4.42% 5.76% - ------------------------------------------------------------------------------------------------------------------------------------ Class B return before taxes* 6.15% 4.25% 5.35% - ------------------------------------------------------------------------------------------------------------------------------------ Class C return before taxes* 9.18% 4.47% 5.63% - ------------------------------------------------------------------------------------------------------------------------------------ Lehman Brothers Municipal Bond Index (reflects no deduction for fees, expenses or taxes) 11.68% 5.84% 6.76% - ------------------------------------------------------------------------------------------------------------------------------------ Tax-Free Arizona Insured Fund - ------------------------------------------------------------------------------------------------------------------------------------ Class A return before taxes 6.17% 4.08% 6.41% - ------------------------------------------------------------------------------------------------------------------------------------ Class A return after taxes on distributions 6.17% 4.08% 6.36% - ------------------------------------------------------------------------------------------------------------------------------------ Class A return after taxes on distributions and sale of Fund shares 5.64% 4.20% 6.24% - ------------------------------------------------------------------------------------------------------------------------------------ Class B return before taxes* 6.44% 4.03% 5.32% - ------------------------------------------------------------------------------------------------------------------------------------ Class C return before taxes* 9.34% 4.24% 5.37% - ------------------------------------------------------------------------------------------------------------------------------------ Lehman Brothers Insured Municipal Bond Index (reflects no deduction for fees, expenses or taxes) 13.46% 5.99% 7.53% - ------------------------------------------------------------------------------------------------------------------------------------
After-tax performance is presented only for Class A shares of the Fund. The after-tax returns for other Fund classes may vary. Actual after-tax returns depend on the investor's individual tax situation and may differ from the returns shown. After-tax returns are not relevant for shares held in tax- deferred investment vehicles such as employer-sponsored 401(k) plans and individual retirement accounts. The after-tax returns shown are calculated using the highest individual federal marginal income tax rates in effect during the Fund's lifetime and do not reflect the impact of state and local taxes. Past performance, both before and after taxes, is not a guarantee of future results. The Funds' returns are compared to the performance of the Lehman Brothers Municipal Bond Index and the Lehman Brothers Insured Municipal Bond Index. You should remember that unlike the Funds, the indexes are unmanaged and do not reflect the actual costs of operating a mutual fund, such as the costs of buying, selling and holding securities. Maximum sales charges are included in the Fund returns shown above. * Total returns assume redemption of shares at end of period. If shares were not redeemed, the returns for Tax-Free Arizona Fund's Class B would be 10.15%, 4.49% and 5.49% for the one-year, five-year and lifetime periods, respectively, and the returns for Tax-Free Arizona Insured Fund's Class B would be 10.44%, 4.28% and 5.45% for the one-year, five- year and lifetime periods, respectively. Returns for Tax-Free Arizona Fund's Class C would be 10.18%, 4.47% and 5.63% for the one-year, five- year and lifetime periods, respectively, and returns for Tax-Free Arizona Insured Fund's Class C would be 10.34%, 4.24% and 5.37% for the one-year, five-year and lifetime periods, respectively. ** Lifetime returns are shown if the Fund or Class existed for less than 10 years. Inception dates for Class A, Class B and Class C shares of the Tax-Free Arizona Fund were March 2, 1995, June 29, 1995 and May 13, 1995, respectively. Lehman Brothers Municipal Bond Index returns are for 10 years. Lehman Brothers Municipal Bond Index returns for Class B and Class C lifetimes were 6.62% and 6.35%, respectively. Inception dates for Class A, Class B and Class C shares of the Tax-Free Arizona Insured Fund were April 1, 1991, March 10, 1995 and May 26, 1994, respectively. Lehman Brothers Insured Municipal Bond Index returns are for 10 years. Lehman Brothers Insured Municipal Bond Index returns for Class B and Class C lifetimes were 7.05% and 7.20%, respectively. 2 What are the Funds' fees and expenses?
- --------------------------------------------------------------------------------------------------------------------------- Sales charges are CLASS A B C fees paid directly -------------------------------------------------------------------------------------------------- from your investments when Maximum sales charge (load) imposed on purchases as a you buy or sell percentage of offering price 4.50% none none shares of a Fund. -------------------------------------------------------------------------------------------------- Maximum contingent deferred sales charge (load) as a percentage of original purchase price or redemption price, whichever is lower none(1) 4.00%(2) 1.00%(3) -------------------------------------------------------------------------------------------------- Maximum sales charge (load) imposed on reinvested dividends none none none -------------------------------------------------------------------------------------------------- Redemption fees none none none - ---------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------- Annual fund operating expenses Tax-Free Arizona Fund Tax-Free Arizona Insured Fund are deducted from CLASS A B C A B C a Fund's assets. -------------------------------------------------------------------------------------------------- Management fees 0.55% 0.55% 0.55% 0.50% 0.50% 0.50% -------------------------------------------------------------------------------------------------- Distribution and service (12b-1) fees 0.25% 1.00% 1.00% 0.25% 1.00% 1.00% -------------------------------------------------------------------------------------------------- Other expenses 0.21% 0.21% 0.21% 0.22% 0.22% 0.22% -------------------------------------------------------------------------------------------------- Total annual fund operating expenses 1.01% 1.76% 1.76% 0.97% 1.72% 1.72% -------------------------------------------------------------------------------------------------- Fee waivers and payments(4) (0.26%) (0.26%) (0.26%) (0.02%) (0.02%) (0.02%) -------------------------------------------------------------------------------------------------- Net expenses 0.75% 1.50% 1.50% 0.95% 1.70% 1.70% - ---------------------------------------------------------------------------------------------------------------------------
This example is intended to help you compare the cost of investing in the Funds to the cost of investing in other mutual funds with similar investment objectives. We show the cumulative amount of Fund expenses on a hypothetical investment of $10,000 with an annual 5% return over the time shown.(5) This is an example only, and does not represent future expenses, which may be greater or less than those shown here.
- ------------------------------------------------------------------------------------------------------------------------------------ Tax-Free Arizona Fund Tax-Free Arizona Insured Fund CLASS(6) A B B C C A B B C C (if redeemed) (if redeemed) (if redeemed) (if redeemed) - ------------------------------------------------------------------------------------------------------------------------------------ 1 year $523 $153 $553 $153 $253 $543 $173 $573 $173 $273 - ------------------------------------------------------------------------------------------------------------------------------------ 3 years $732 $529 $754 $529 $529 $743 $540 $765 $540 $540 - ------------------------------------------------------------------------------------------------------------------------------------ 5 years $959 $930 $1,080 $930 $930 $960 $931 $1,081 $931 $931 - ------------------------------------------------------------------------------------------------------------------------------------ 10 years $1,608 $1,853 $1,853 $2,052 $2,052 $1,584 $1,830 $1,830 $2,028 $2,028 - ------------------------------------------------------------------------------------------------------------------------------------
(1) A purchase of Class A shares of $1 million or more may be made at net asset value. However, if you buy the shares through a financial adviser who is paid a commission, a contingent deferred sales charge will apply to redemptions made within two years of purchase. Additional Class A purchase options that involve a contingent deferred sales charge may be permitted from time to time and will be disclosed in the Prospectus if they are available. (2) If you redeem Class B shares during the first year after you buy them, you will pay a contingent deferred sales charge of 4.00%, which declines to 3.00% during the second year, 2.25% during the third year, 1.50% during the fourth and fifth year, 1.00% during the sixth year and 0% thereafter. (3) Class C shares redeemed within one year of purchase are subject to a 1.00% contingent deferred sales charge. (4) The investment manager has contracted to waive fees and pay expenses of each Fund through October 31, 2002 in order to prevent total operating expenses (excluding any taxes, interest, brokerage fees and extraordinary expenses and 12b-1 fees) from exceeding 0.50% of average daily net assets of Tax-Free Arizona Fund and 0.70% of average daily net assets of Tax-Free Arizona Insured Fund. (5) Each Fund's actual rate of return may be greater or less than the hypothetical 5% return we use here. This example reflects the net operating expenses with expense waivers for the one-year period and the total operating expenses without expense waivers for years two through 10. (6) The Class B example reflects the conversion of Class B shares to Class A shares after approximately eight years. Information for the ninth and tenth years reflects expenses of the Class A shares. 3 Delaware Tax-Free California Fund and Delaware Tax-Free California Insured Fund only: The following information, which reflects the new sales charges described above, replaces the return and fee tables on pages 6 and 7 of the Prospectus under "Profile: California Tax-Free Funds." The following average annual return table reflects the same time period and data as the table in the current Prospectus, except for the use of the new sales charges:
Average annual returns for periods ending 12/31/00 - ------------------------------------------------------------------------------------------------------------------------------------ 10 years or Tax-Free California Fund 1 year 5 years lifetime** - ------------------------------------------------------------------------------------------------------------------------------------ Class A return before taxes 9.41% 4.88% 6.20% - ------------------------------------------------------------------------------------------------------------------------------------ Class A return after taxes on distributions 9.41% 4.82% 6.11% - ------------------------------------------------------------------------------------------------------------------------------------ Class A return after taxes on distributions and sale of Fund shares 7.83% 4.93% 6.03% - ------------------------------------------------------------------------------------------------------------------------------------ Class B return before taxes* 9.74% 4.95% 6.50% - ------------------------------------------------------------------------------------------------------------------------------------ Class C return before taxes* 12.66% N/A 6.27% - ------------------------------------------------------------------------------------------------------------------------------------ Lehman Brothers Municipal Bond Index (reflects no deduction for fees, expenses or taxes) 11.68% 5.84% 6.76% - ------------------------------------------------------------------------------------------------------------------------------------ Tax-Free California Insured Fund - ------------------------------------------------------------------------------------------------------------------------------------ Class A return before taxes 8.02% 4.44% 5.80% - ------------------------------------------------------------------------------------------------------------------------------------ Class A return after taxes on distributions 8.02% 4.44% 5.79% - ------------------------------------------------------------------------------------------------------------------------------------ Class A return after taxes on distributions and sale of Fund shares 6.77% 4.49% 5.68% - ------------------------------------------------------------------------------------------------------------------------------------ Class B return before taxes* 8.30% 4.49% 4.83% - ------------------------------------------------------------------------------------------------------------------------------------ Class C return before taxes* 11.44% 4.57% 5.35% - ------------------------------------------------------------------------------------------------------------------------------------ Lehman Brothers Insured Municipal Bond Index (reflects no deduction for fees, expenses or taxes) 13.46% 5.99% 6.81% - ------------------------------------------------------------------------------------------------------------------------------------
The Funds' returns are compared to the performance of the Lehman Brothers Municipal Bond Index and the Lehman Brothers Insured Municipal Bond Index. You should remember that unlike the Funds, the indexes are unmanaged and do not reflect the actual costs of operating a mutual fund, such as the costs of buying, selling and holding securities. Maximum sales charges are included in the Fund returns shown above. After-tax performance is presented only for Class A shares of the Fund. The after-tax returns for other Fund classes may vary. Actual after-tax returns depend on the investor's individual tax situation and may differ from the returns shown. After-tax returns are not relevant for shares held in tax- deferred investment vehicles such as employer-sponsored 401(k) plans and individual retirement accounts. The after-tax returns shown are calculated using the highest individual federal marginal income tax rates in effect during the Fund's lifetime and do not reflect the impact of state and local taxes. Past performance, both before and after taxes, is not a guarantee of future results. * Total returns assume redemption of shares at end of period. If shares were not redeemed, the returns for Tax-Free California Fund's Class B would be 13.74%, 5.20% and 6.64% for the one-year, five-year and lifetime periods, respectively, and the returns for Tax-Free California Insured Fund's Class B would be 12.30%, 4.74% and 4.83% for the one- year, five-year and lifetime periods, respectively. Returns for Tax-Free California Fund's Class C would be 13.66% and 6.27% for the one-year and lifetime periods, respectively, and returns for Tax-Free California Insured Fund's Class C would be 12.44%, 4.57% and 5.35% for the one- year, five-year and lifetime periods, respectively. ** Lifetime returns are shown if the Fund or Class existed for less than 10 years. Inception dates for Class A, Class B and Class C shares of the Tax-Free California Fund were March 2, 1995, August 23, 1995 and April 9, 1996, respectively. Lehman Brothers Municipal Bond Index returns are for 10 years. Lehman Brothers Municipal Bond Index returns for Class B and Class C lifetimes were 6.39% and 6.61%, respectively. Inception dates for Class A, Class B and Class C shares of the Tax-Free California Insured Fund were October 15, 1992, March 2, 1994 and April 12, 1995, respectively. Lehman Brothers Insured Municipal Bond Index returns are for 10 years. Lehman Brothers Insured Municipal Bond Index returns for Class B and Class C lifetimes were 7.05% and 6.53%, respectively. 4 What are the Funds' fees and expenses?
- ------------------------------------------------------------------------------------------------------------------------------------ Sales charges are CLASS A B C fees paid directly ------------------------------------------------------------------------------------------------------- from your Maximum sales charge (load) imposed on purchases as a investments when percentage of offering price 4.50% none none you buy or sell ------------------------------------------------------------------------------------------------------- shares of a Fund. Maximum contingent deferred sales charge (load) as a percentage of original purchase price or redemption price, whichever is lower none(1) 4.00%(2) 1.00%(3) ------------------------------------------------------------------------------------------------------- Maximum sales charge (load) imposed on reinvested dividends none none none ------------------------------------------------------------------------------------------------------- Redemption fees none none none - ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------ Annual fund Tax-Free California Fund Tax-Free California Insured Fund operating expenses CLASS A B C A B C are deducted from ------------------------------------------------------------------------------------------------------- a Fund's assets. Management fees 0.55% 0.55% 0.55% 0.50% 0.50% 0.50% ------------------------------------------------------------------------------------------------------- Distribution and service (12b-1) fees 0.25% 1.00% 1.00% 0.25% 1.00% 1.00% ------------------------------------------------------------------------------------------------------- Other expenses 0.19% 0.19% 0.19% 0.12% 0.12% 0.12% ------------------------------------------------------------------------------------------------------- Total annual fund operating expenses 0.99% 1.74% 1.74% 0.87% 1.62% 1.62% ------------------------------------------------------------------------------------------------------- Fee waivers and payments(4) (0.49%) (0.49%) (0.49%) (0.00%) (0.00%) (0.00%) ------------------------------------------------------------------------------------------------------- Net expenses 0.50% 1.25% 1.25% 0.87% 1.62% 1.62% - ------------------------------------------------------------------------------------------------------------------------------------
This example is intended to help you compare the cost of investing in the Funds to the cost of investing in other mutual funds with similar investment objectives. We show the cumulative amount of Fund expenses on a hypothetical investment of $10,000 with an annual 5% return over the time shown.(5) This is an example only, and does not represent future expenses, which may be greater or less than those shown here.
- ------------------------------------------------------------------------------------------------------------------------------------ Tax-Free California Fund Tax-Free California Insured Fund CLASS(6) A B B C C A B B C C (if redeemed) (if redeemed) (if redeemed) (if redeemed) - ------------------------------------------------------------------------------------------------------------------------------------ 1 year $499 $127 $527 $127 $227 $535 $165 $565 $165 $265 - ------------------------------------------------------------------------------------------------------------------------------------ 3 years $704 $500 $725 $500 $500 $715 $511 $736 $511 $511 - ------------------------------------------------------------------------------------------------------------------------------------ 5 years $927 $898 $1,048 $898 $898 $911 $881 $1,031 $881 $881 - ------------------------------------------------------------------------------------------------------------------------------------ 10 years $1,566 $1,812 $1,812 $2,011 $2,011 $1,474 $1,721 $1,721 $1,922 $1,922 - ------------------------------------------------------------------------------------------------------------------------------------
(1) A purchase of Class A shares of $1 million or more may be made at net asset value. However, if you buy the shares through a financial adviser who is paid a commission, a contingent deferred sales charge will apply to redemptions made within two years of purchase. Additional Class A purchase options that involve a contingent deferred sales charge may be permitted from time to time and will be disclosed in the Prospectus if they are available. (2) If you redeem Class B shares during the first year after you buy them, you will pay a contingent deferred sales charge of 4.00%, which declines to 3.00% during the second year, 2.25% during the third year, 1.50% during the fourth and fifth year, 1.00% during the sixth year and 0% thereafter. (3) Class C shares redeemed within one year of purchase are subject to a 1.00% contingent deferred sales charge. (4) The investment manager has contracted to waive fees and pay expenses of each Fund through October 31, 2002 in order to prevent total operating expenses (excluding any taxes, interest, brokerage fees, extraordinary expenses and 12b-1 fees) from exceeding 0.25% of average daily net assets of Tax-Free California Fund and 0.75% of average daily net assets of Tax-Free California Insured Fund. (5) Each Fund's actual rate of return may be greater or less than the hypothetical 5% return we use here. This example reflects the net operating expenses with expense waivers for the one-year period and the total operating expenses without expense waivers for years two through 10. (6) The Class B example reflects the conversion of Class B shares to Class A shares after approximately eight years. Information for the ninth and tenth years reflects expenses of the Class A shares. 5 Delaware Tax-Free Colorado Fund and Delaware Tax-Free Idaho Fund only: The following information, which reflects the new sales charges described above, replaces the return and fee tables on pages 9 and 10 of the Prospectus under "Profile: Colorado and Idaho Tax-Free Funds." The following average annual return table reflects the same time period and data as the table in the current Prospectus, except for the use of the new sales charges:
Average annual returns for periods ending 12/31/00 - ------------------------------------------------------------------------------------------------------------------------------------ 10 years or Tax-Free Colorado Fund 1 year 5 years lifetime** - ------------------------------------------------------------------------------------------------------------------------------------ Class A return before taxes 6.22% 4.16% 6.45% - ------------------------------------------------------------------------------------------------------------------------------------ Class A return after taxes on distributions 6.22% 4.16% 6.34% - ------------------------------------------------------------------------------------------------------------------------------------ Class A return after taxes on distributions and sale of Fund shares 5.81% 4.34% 6.29% - ------------------------------------------------------------------------------------------------------------------------------------ Class B return before taxes* 6.43% 4.07% 5.30% - ------------------------------------------------------------------------------------------------------------------------------------ Class C return before taxes* 9.35% 4.31% 5.41% - ------------------------------------------------------------------------------------------------------------------------------------ Lehman Brothers Municipal Bond Index (reflects no deduction for fees, expenses or taxes) 11.68% 5.84% 7.74% - ------------------------------------------------------------------------------------------------------------------------------------ Tax-Free Idaho Fund - ------------------------------------------------------------------------------------------------------------------------------------ Class A return before taxes 5.63% 4.05% 6.19% - ------------------------------------------------------------------------------------------------------------------------------------ Class A return after taxes on distributions 5.63% 4.04% 6.13% - ------------------------------------------------------------------------------------------------------------------------------------ Class A return after taxes on distributions and sale of Fund shares 5.44% 4.21% 6.00% - ------------------------------------------------------------------------------------------------------------------------------------ Class B return before taxes* 5.87% 4.07% 5.28% - ------------------------------------------------------------------------------------------------------------------------------------ Class C return before taxes* 8.87% 4.21% 6.09% - ------------------------------------------------------------------------------------------------------------------------------------ Lehman Brothers Municipal Bond Index (reflects no deduction for fees, expenses or taxes) 11.68% 5.84% 7.29% - ------------------------------------------------------------------------------------------------------------------------------------
The Funds' returns are compared to the performance of the Lehman Brothers Municipal Bond Index. You should remember that unlike the Funds, the index is unmanaged and does not reflect the actual costs of operating a mutual fund, such as the costs of buying, selling and holding securities. Maximum sales charges are included in the Fund returns shown above. After-tax performance is presented only for Class A shares of the Fund. The after-tax returns for other Fund classes may vary. Actual after-tax returns depend on the investor's individual tax situation and may differ from the returns shown. After-tax returns are not relevant for shares held in tax- deferred investment vehicles such as employer-sponsored 401(k) plans and individual retirement accounts. The after-tax returns shown are calculated using the highest individual federal marginal income tax rates in effect during the Fund's lifetime and do not reflect the impact of state and local taxes. Past performance, both before and after taxes, is not a guarantee of future results. * Total returns assume redemption of shares at end of period. If shares were not redeemed, the returns for Tax-Free Colorado Fund's Class B would be 10.44%, 4.32% and 5.44% for the one-year, five-year and lifetime periods, respectively, and the returns for Tax-Free Idaho Fund's Class B would be 9.87%, 4.32% and 5.41% for the one-year, five- year and lifetime periods, respectively. Returns for Tax-Free Colorado Fund's Class C would be 10.35%, 4.31% and 5.41% for the one-year, five- year and lifetime periods, respectively, and the returns for Tax-Free Idaho Fund's Class C would be 9.87%, 4.21% and 6.09% for the one-year, five-year and lifetime periods, respectively. ** Lifetime returns are shown if the Fund or Class existed for less than 10 years. Inception dates for Class B and Class C shares of the Tax-Free Colorado Fund were March 22, 1995 and May 6, 1994, respectively. Lehman Brothers Municipal Bond Index returns are for 10 years. Lehman Brothers Municipal Bond Index returns for Class B and Class C lifetimes were 6.76% and 6.77%, respectively. Inception dates for Class A, Class B and Class C shares of the Tax-Free Idaho Fund were January 4, 1995, March 16, 1995 and January 11, 1995, respectively. Lehman Brothers Municipal Bond Index returns are for 10 years. Lehman Brothers Municipal Bond Index returns for Class B and Class C lifetimes were 6.76% and 7.29%, respectively. 6 What are the Funds' fees and expenses?
- ------------------------------------------------------------------------------------------------------------------------------------ Sales charges are CLASS A B C fees paid directly ------------------------------------------------------------------------------------------------------- from your Maximum sales charge (load) imposed on purchases as a investments when percentage of offering price 4.50% none none you buy or sell ------------------------------------------------------------------------------------------------------- shares of a Fund. Maximum contingent deferred sales charge (load) as a percentage of original purchase price or redemption price, whichever is lower none(1) 4.00%(2) 1.00%(3) ------------------------------------------------------------------------------------------------------- Maximum sales charge (load) imposed on reinvested dividends none none none ------------------------------------------------------------------------------------------------------- Redemption fees none none none - ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------ Annual fund Tax-Free Colorado Fund Tax-Free Colorado Insured Fund operating expenses CLASS A B C A B C are deducted from ------------------------------------------------------------------------------------------------------- a Fund's assets. Management fees 0.55% 0.55% 0.55% 0.55% 0.55% 0.55% ------------------------------------------------------------------------------------------------------- Distribution and service (12b-1) fees 0.25% 1.00% 1.00% 0.25% 1.00% 1.00% ------------------------------------------------------------------------------------------------------- Other expenses 0.20% 0.20% 0.20% 0.23% 0.23% 0.23% ------------------------------------------------------------------------------------------------------- Total annual fund operating expenses 1.00% 1.75% 1.75% 1.03% 1.78% 1.78% ------------------------------------------------------------------------------------------------------- Fee waivers and payments(4) (0.00%) (0.00%) (0.00%) (0.03%) (0.03%) (0.03%) ------------------------------------------------------------------------------------------------------- Net expenses 1.00% 1.75% 1.75% 1.00% 1.75% 1.75% - ------------------------------------------------------------------------------------------------------------------------------------
This example is intended to help you compare the cost of investing in the Funds to the cost of investing in other mutual funds with similar investment objectives. We show the cumulative amount of Fund expenses on a hypothetical investment of $10,000 with an annual 5% return over the time shown.(5) This is an example only, and does not represent future expenses, which may be greater or less than those shown here.
- ------------------------------------------------------------------------------------------------------------------------------------ Tax-Free Colorado Fund Tax-Free Idaho Fund CLASS(6) A B B C C A B B C C (if redeemed) (if redeemed) (if redeemed) (if redeemed) - ------------------------------------------------------------------------------------------------------------------------------------ 1 year $547 $178 $578 $178 $278 $547 $178 $578 $178 $278 - ------------------------------------------------------------------------------------------------------------------------------------ 3 years $754 $551 $776 $551 $551 $760 $557 $782 $557 $557 - ------------------------------------------------------------------------------------------------------------------------------------ 5 years $978 $949 $1,099 $949 $949 $990 $962 $1,112 $962 $962 - ------------------------------------------------------------------------------------------------------------------------------------ 10 years $1,620 $1,864 $1,864 $2,062 $2,062 $1,650 $1,894 $1,894 $2,092 $2,092 - ------------------------------------------------------------------------------------------------------------------------------------
(1) A purchase of Class A shares of $1 million or more may be made at net asset value. However, if you buy the shares through a financial adviser who is paid a commission, a contingent deferred sales charge will apply to redemptions made within two years of purchase. Additional Class A purchase options that involve a contingent deferred sales charge may be permitted from time to time and will be disclosed in the Prospectus if they are available. (2) If you redeem Class B shares during the first year after you buy them, you will pay a contingent deferred sales charge of 4.00%, which declines to 3.00% during the second year, 2.25% during the third year, 1.50% during the fourth and fifth year, 1.00% during the sixth year and 0% thereafter. (3) Class C shares redeemed within one year of purchase are subject to a 1.00% contingent deferred sales charge. (4) The investment manager has contracted to waive fees and pay expenses of each Fund through October 31, 2002 in order to prevent total operating expenses (excluding any taxes, interest, brokerage fees, extraordinary expenses and 12b-1 fees) from exceeding 0.75% of average daily net assets. (5) The Fund's actual rate of return may be greater or less than the hypothetical 5% return we use here. This example reflects the net operating expenses with expense waivers for the one-year period and the total operating expenses without expense waivers for years two through 10. (6) The Class B example reflects the conversion of Class B shares to Class A shares after approximately eight years. Information for the ninth and tenth years reflects expenses of the Class A shares. 7 Delaware Tax-Free Florida Fund, Delaware Tax-Free Florida Insured Fund and Delaware Tax-Free New York Fund only: The following information, which reflects the new sales charges described above, replaces the return and fee tables on pages 13--15 of the Prospectus under "Profile: Florida and New York Tax-Free Funds." The following average annual return table reflects the same time period and data as the table in the current Prospectus, except for the use of the new sales charges:
Average annual returns for periods ending 12/31/00 - ------------------------------------------------------------------------------------------------------------------------------------ 10 years or Tax-Free Florida Fund 1 year 5 years lifetime** - ------------------------------------------------------------------------------------------------------------------------------------ Class A return before taxes 5.88% 4.34% 5.83% - ------------------------------------------------------------------------------------------------------------------------------------ Class A return after taxes on distributions 5.88% 4.31% 5.80% - ------------------------------------------------------------------------------------------------------------------------------------ Class A return after taxes on distributions and sale of Fund shares 5.53% 4.48% 5.73% - ------------------------------------------------------------------------------------------------------------------------------------ Class B return before taxes* 6.08% 4.45% 5.27% - ------------------------------------------------------------------------------------------------------------------------------------ Class C return before taxes* 9.14% 4.56% 5.56% - ------------------------------------------------------------------------------------------------------------------------------------ Lehman Brothers Municipal Bond Index (reflects no deduction for fees, expenses or taxes) 11.68% 5.84% 7.74% - ------------------------------------------------------------------------------------------------------------------------------------ Tax-Free Florida Insured Fund*** - ------------------------------------------------------------------------------------------------------------------------------------ Class A return before taxes 5.98% 4.23% 6.14% - ------------------------------------------------------------------------------------------------------------------------------------ Class A return after taxes on distributions 5.98% 4.23% 6.12% - ------------------------------------------------------------------------------------------------------------------------------------ Class A return after taxes on distributions and sale of Fund shares 5.54% 4.34% 6.01% - ------------------------------------------------------------------------------------------------------------------------------------ Class B return before taxes* 6.12% 4.23% 5.09% - ------------------------------------------------------------------------------------------------------------------------------------ Class C return before taxes* 9.12% N/A 4.12% - ------------------------------------------------------------------------------------------------------------------------------------ Lehman Brothers Insured Municipal Bond Index (reflects no deduction for fees, expenses or taxes) 13.46% 5.99% 7.06% - ------------------------------------------------------------------------------------------------------------------------------------ Tax-Free New York Fund - ------------------------------------------------------------------------------------------------------------------------------------ Class A return before taxes 6.87% 3.03% 5.51% - ------------------------------------------------------------------------------------------------------------------------------------ Class A return after taxes on distributions 6.87% 2.95% 5.47% - ------------------------------------------------------------------------------------------------------------------------------------ Class A return after taxes on distributions and sale of Fund shares 6.34% 3.44% 5.63% - ------------------------------------------------------------------------------------------------------------------------------------ Class B return before taxes* 7.24% 2.98% 4.59% - ------------------------------------------------------------------------------------------------------------------------------------ Class C return before taxes* 10.25% 3.19% 3.73% - ------------------------------------------------------------------------------------------------------------------------------------ Lehman Brothers Municipal Bond Index (reflects no deduction for fees, expenses or taxes) 11.68% 5.84% 7.68% - ------------------------------------------------------------------------------------------------------------------------------------
The Funds' returns are compared to the performance of the Lehman Brothers Municipal Bond Index and the Lehman Brothers Insured Municipal Bond Index. You should remember that unlike the Funds, the indexes are unmanaged and do not reflect the actual costs of operating a mutual fund, such as the costs of buying, selling and holding securities. Maximum sales charges are included in the Fund returns shown above. After-tax performance is presented only for Class A shares of the Fund. The after-tax returns for other Fund classes may vary. Actual after-tax returns depend on the investor's individual tax situation and may differ from the returns shown. After-tax returns are not relevant for shares held in tax- deferred investment vehicles such as employer-sponsored 401(k) plans and individual retirement accounts. The after-tax returns shown are calculated using the highest individual federal marginal income tax rates in effect during the Fund's lifetime and do not reflect the impact of state and local taxes. Past performance, both before and after taxes, is not a guarantee of future results. 8 * Total returns assume redemption of shares at end of period. If shares were not redeemed, the returns for Tax-Free Florida Fund's Class B would be 10.08%, 4.70% and 5.42% for the one-year, five-year and lifetime periods, respectively, the returns for Tax-Free Florida Insured Fund's Class B would be 10.12%, 4.48% and 5.09% for the one-year, five-year and lifetime periods, respectively, and the returns for Tax-Free New York Fund's Class B would be 11.24%, 3.22% and 4.59% for the one-year, five- year and lifetime periods, respectively. Returns for Tax-Free Florida Fund's Class C would be 10.14%, 4.56% and 5.56% for the one-year, five- year and lifetime periods, respectively, returns for Tax-Free Florida Insured Fund's Class C would be 10.12% and 2.79% for the one-year and lifetime periods, respectively, and returns for Tax-Free New York Fund's Class C would be 11.25%, 3.19% and 3.73% for the one-year, five-year and lifetime periods, respectively. ** Lifetime returns are shown if the Fund or Class existed for less than 10 years. Inception dates for Class A, Class B and Class C shares of the Tax-Free Florida Fund were March 2, 1995, September 15, 1995 and April 22, 1995, respectively. Lehman Brothers Municipal Bond Index returns are for 10 years. Lehman Brothers Municipal Bond Index returns for Class B and Class C lifetimes were 6.76% and 6.77%, respectively. Inception dates for Class A, Class B and Class C shares of the Tax-Free Florida Insured Fund were January 1, 1992, March 11, 1994 and September 29, 1997, respectively. Lehman Brothers Insured Municipal Bond Index returns are for 10 years. Lehman Brothers Insured Municipal Bond Index returns for Class B and Class C lifetimes were 7.05% and 6.53%, respectively. Inception dates for Class A, Class B and Class C shares of the Tax-Free New York Fund were November 6, 1987, November 14, 1994 and April 26, 1995, respectively. Lehman Brothers Municipal Bond Index returns are for 10 years. Lehman Brothers Municipal Bond Index returns for Class B and Class C lifetimes were 7.97% and 6.85%, respectively. *** Class C shares were sold and outstanding from September 29, 1997 until December 18, 1997, when all of the outstanding Class C shares were redeemed. There were no outstanding Class C shares or shareholder activity from December 19, 1997 through January 7, 1999. The performance for Class C shares during the period from December 19, 1997 through January 7, 1999 is based on the performance of Class B shares. What are the Funds' fees and expenses?
- ------------------------------------------------------------------------------------------------------------------------------------ Sales charges are CLASS A B C fees paid directly ------------------------------------------------------------------------------------------------------- from your Maximum sales charge (load) imposed on purchases as a investments from percentage of offering price 4.50% none none you buy or sell ------------------------------------------------------------------------------------------------------- shares of a Fund. Maximum contingent deferred sales charge (load) as a percentage of original purchase price or redemption price, whichever is lower none(1) 4.00%(2) 1.00%(3) ------------------------------------------------------------------------------------------------------- Maximum sales charge (load) imposed on reinvested dividends none none none ------------------------------------------------------------------------------------------------------- Redemption fees none none none - ------------------------------------------------------------------------------------------------------------------------------------
Annual fund operating expenses are deducted from a Fund's assets.
- ------------------------------------------------------------------------------------------------------------------------------------ Tax-Free Florida Fund Tax-Free Florida Insured Fund Tax-Free New York Fund CLASS A B C A B C A B C - ------------------------------------------------------------------------------------------------------------------------------------ Management fees 0.55% 0.55% 0.55% 0.50% 0.50% 0.50% 0.55% 0.55% 0.55% - ------------------------------------------------------------------------------------------------------------------------------------ Distribution and service (12b-1) fees 0.25% 1.00% 1.00% 0.25% 1.00% 1.00% 0.25% 1.00% 1.00% - ------------------------------------------------------------------------------------------------------------------------------------ Other expenses 0.17% 0.17% 0.17% 0.22% 0.22% 0.22% 0.22% 0.22% 0.22% - ------------------------------------------------------------------------------------------------------------------------------------ Total annual fund operating expenses 0.97% 1.72% 1.72% 0.97% 1.72% 1.72% 1.02% 1.77% 1.77% - ------------------------------------------------------------------------------------------------------------------------------------ Fee waivers and payments(4) (0.22%) (0.22%) (0.22%) (0.07%) (0.07%) (0.07%) (0.52%) (0.52%) (0.52%) - ------------------------------------------------------------------------------------------------------------------------------------ Net expenses 0.75% 1.50% 1.50% 0.90% 1.65% 1.65% 0.50% 1.25% 1.25% - ------------------------------------------------------------------------------------------------------------------------------------
9 (1) A purchase of Class A shares of $1 million or more may be made at net asset value. However, if you buy the shares through a financial adviser who is paid a commission, a contingent deferred sales charge will apply to redemptions made within two years of purchase. Additional Class A purchase options that involve a contingent deferred sales charge may be permitted from time to time and will be disclosed in the Prospectus if they are available. (2) If you redeem Class B shares during the first year after you buy them, you will pay a contingent deferred sales charge of 4.00%, which declines to 3.00% during the second year, 2.25% during the third year, 1.50% during the fourth and fifth year, 1.00% during the sixth year and 0% thereafter. (3) Class C shares redeemed within one year of purchase are subject to a 1.00% contingent deferred sales charge. (4) The investment manager has contracted to waive fees and pay expenses of each Fund through October 31, 2002 in order to prevent total operating expenses (excluding any taxes, interest, brokerage fees and extraordinary expenses and 12b-1 fees) from exceeding 0.50% of average daily net assets of Tax-Free Florida Fund, 0.65% of average daily net assets of Tax-Free Florida Insured Fund and 0.25% of average daily net assets of Tax-Free New York Fund. This example is intended to help you compare the cost of investing in the Funds to the cost of investing in other mutual funds with similar investment objectives. We show the cumulative amount of Fund expenses on a hypothetical investment of $10,000 with an annual 5% return over the time shown.(5) This is an example only, and does not represent future expenses, which may be greater or less than those shown here.
- ------------------------------------------------------------------------------------------------------------------------------------ Tax-Free Florida Fund Tax-Free Florida Insured Fund CLASS(6) A B B C C A B B C C (if redeemed) (if redeemed) (if redeemed) (if redeemed) - ------------------------------------------------------------------------------------------------------------------------------------ 1 year $523 $153 $553 $153 $253 $538 $168 $568 $168 $268 - ------------------------------------------------------------------------------------------------------------------------------------ 3 years $724 $520 $745 $520 $520 $738 $535 $760 $535 $535 - ------------------------------------------------------------------------------------------------------------------------------------ 5 years $942 $913 $1,063 $913 $913 $956 $927 $1,077 $927 $927 - ------------------------------------------------------------------------------------------------------------------------------------ 10 years $1,567 $1,813 $1,813 $2,012 $2,012 $1,580 $1,826 $1,826 $2,024 $2,024 - ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------ Tax-Free New York Fund CLASS(6) A B B C C (if redeemed) (if redeemed) - ------------------------------------------------------------------------------------------------------------------------------------ 1 year $499 $127 $527 $127 $227 - ------------------------------------------------------------------------------------------------------------------------------------ 3 years $711 $507 $732 $507 $507 - ------------------------------------------------------------------------------------------------------------------------------------ 5 years $940 $911 $1,061 $911 $911 - ------------------------------------------------------------------------------------------------------------------------------------ 10 years $1,597 $1,842 $1,842 $2,041 $2,041 - ------------------------------------------------------------------------------------------------------------------------------------
(5) Each Fund's actual rate of return may be greater or less than the hypothetical 5% return we use here. This example reflects the net operating expenses with expense waivers for the one-year period and the total operating expenses without expense waivers for years two through 10. (6) The Class B example reflects the conversion of Class B shares to Class A shares after approximately eight years. Information for the ninth and tenth years reflects expenses of the Class A shares. 10 Delaware Tax-Free Minnesota Fund, Delaware Tax-Free Minnesota Insured Fund, Delaware Tax-Free Minnesota Intermediate Fund and Delaware Minnesota High-Yield Municipal Bond Fund only: The following information, which reflects the new sales charges described above, replaces the return and fee tables on pages 18 -- 20 of the Prospectus under "Profile: Minnesota Tax-Exempt Funds." The following average annual return table reflects the same time period and data as the table in the current Prospectus, except for the use of the new sales charges:
Average annual returns for periods ending 12/31/00 - ------------------------------------------------------------------------------------------------------------------------------------ 10 years or Tax-Free Minnesota Fund 1 year 5 years lifetime*** - ------------------------------------------------------------------------------------------------------------------------------------ Class A return before taxes 5.95% 3.90% 6.01% - ------------------------------------------------------------------------------------------------------------------------------------ Class A return after taxes on distributions 5.95% 3.88% 5.94% - ------------------------------------------------------------------------------------------------------------------------------------ Class A return after taxes on distributions and sale of Fund shares 5.61% 4.11% 5.91% - ------------------------------------------------------------------------------------------------------------------------------------ Class B return before taxes* 6.16% 3.92% 5.15% - ------------------------------------------------------------------------------------------------------------------------------------ Class C return before taxes** 9.17% 4.12% 5.11% - ------------------------------------------------------------------------------------------------------------------------------------ Lehman Brothers Municipal Bond Index (reflects no deduction for fees, expenses or taxes) 11.68% 5.84% 8.83% - ------------------------------------------------------------------------------------------------------------------------------------ Tax-Free Minnesota Insured Fund - ------------------------------------------------------------------------------------------------------------------------------------ Class A return before taxes 5.30% 4.00% 6.16% - ------------------------------------------------------------------------------------------------------------------------------------ Class A return after taxes on distributions 5.30% 4.00% 6.14% - ------------------------------------------------------------------------------------------------------------------------------------ Class A return after taxes on distributions and sale of Fund shares 5.12% 4.15% 6.04% - ------------------------------------------------------------------------------------------------------------------------------------ Class B return before taxes* 5.43% 3.96% 5.12% - ------------------------------------------------------------------------------------------------------------------------------------ Class C return before taxes** 8.32% 4.19% 5.03% - ------------------------------------------------------------------------------------------------------------------------------------ Lehman Brothers Insured Municipal Bond Index (reflects no deduction for fees, expenses or taxes) 13.46% 5.99% N/A - ------------------------------------------------------------------------------------------------------------------------------------ Tax-Free Minnesota Intermediate Fund - ------------------------------------------------------------------------------------------------------------------------------------ Class A return before taxes 3.73% 3.08% 4.76% - ------------------------------------------------------------------------------------------------------------------------------------ Class A return after taxes on distributions 3.73% 3.08% 4.74% - ------------------------------------------------------------------------------------------------------------------------------------ Class A return after taxes on distributions and sale of Fund shares 4.30% 3.43% 4.79% - ------------------------------------------------------------------------------------------------------------------------------------ Class B return before taxes* 3.74% 2.84% 3.26% - ------------------------------------------------------------------------------------------------------------------------------------ Class C return before taxes** 4.72% 2.81% 3.60% - ------------------------------------------------------------------------------------------------------------------------------------ Lehman Brothers Five-Year Municipal Bond Index (reflects no deduction for fees, expenses or taxes) 7.72% 4.72% N/A - ------------------------------------------------------------------------------------------------------------------------------------ Minnesota High-Yield Bond Fund - ------------------------------------------------------------------------------------------------------------------------------------ Class A return before taxes 2.39% N/A 4.15% - ------------------------------------------------------------------------------------------------------------------------------------ Class A return after taxes on distributions 2.39% N/A 4.15% - ------------------------------------------------------------------------------------------------------------------------------------ Class A return after taxes on distributions and sale of Fund shares 3.77% N/A 4.50% - ------------------------------------------------------------------------------------------------------------------------------------ Class B return before taxes* 2.34% N/A 4.66% - ------------------------------------------------------------------------------------------------------------------------------------ Class C return before taxes** 5.34% N/A 4.43% - ------------------------------------------------------------------------------------------------------------------------------------ Lehman Brothers Municipal Bond Index (reflects no deduction for fees, expenses or taxes) 11.68% N/A 6.62% - ------------------------------------------------------------------------------------------------------------------------------------
The Funds' returns are compared to the performance of certain indexes. You should remember that unlike the Funds, the indexes are unmanaged and do not reflect the actual costs of operating a mutual fund, such as the costs of buying, selling and holding securities. Maximum sales charges are included in the Fund returns shown above. 11 After-tax performance is presented only for Class A shares of the Fund. The after-tax returns for other Fund classes may vary. Actual after-tax returns depend on the investor's individual tax situation and may differ from the returns shown. After-tax returns are not relevant for shares held in tax- deferred investment vehicles such as employer-sponsored 401(k) plans and individual retirement accounts. The after-tax returns shown are calculated using the highest individual federal marginal income tax rates in effect during the Fund's lifetime and do not reflect the impact of state and local taxes. Past performance, both before and after taxes, is not a guarantee of future results. * Total returns assume redemption of shares at end of period. If shares were not redeemed, the returns for Tax-Free Minnesota Fund's Class B would be 10.17%, 4.17% and 5.28% for the one-year, five-year and lifetime periods, respectively, the returns for Tax-Free Minnesota Insured Fund's Class B would be 9.43%, 4.22% and 5.26% for the one-year, five-year and lifetime periods, respectively, the returns for Tax-Free Minnesota Intermediate Fund's Class B would be 5.74%, 2.84% and 3.26% for the one-year, five-year and lifetime periods, respectively, and the returns for Minnesota High-Yield Municipal Bond Fund's Class B would be 6.34% and 4.94% for the one-year and lifetime periods, respectively. ** Total returns assume redemption of shares at end of period If shares were not redeemed, the returns for Tax-Free Minnesota Fund's Class C would be 10.17%, 4.12% and 5.11% for the one-year, five-year and lifetime periods, respectively, the returns for Tax-Free Minnesota Insured Fund's Class C would be 9.32%, 4.19% and 5.03% for the one-year, five-year and lifetime periods, respectively, the returns for Tax-Free Minnesota Intermediate Fund's Class C would be 5.72%, 2.81% and 3.60% for the one-year, five-year and lifetime periods, respectively, and the returns for Minnesota High-Yield Municipal Bond Fund's Class C would be 6.34% and 4.43% for the one-year and lifetime periods, respectively. *** Lifetime returns are shown if the Fund or Class existed for less than 10 years. Inception dates for Class B and Class C shares of the Tax-Free Minnesota Fund were March 11, 1995 and May 4, 1994, respectively. Lehman Brothers Municipal Bond Index returns are for 10 years. Lehman Brothers Municipal Bond Index returns for Class B and Class C lifetimes were 6.76% and 6.77%, respectively. Inception dates for Class B and Class C shares of the Tax-Free Minnesota Insured Fund were March 7, 1995 and May 4, 1994, respectively. Lehman Brothers Insured Municipal Bond Index returns are for 10 years. Lehman Brothers Insured Municipal Bond Index returns for Class B and Class C lifetimes were 7.05% and 7.20%, respectively. Inception dates for Class B and Class C shares of the Tax- Free Minnesota Intermediate Fund were August 15, 1995 and May 4, 1994, respectively. Lehman Brothers Five-Year Municipal Bond Index returns are for 10 years. Lehman Brothers Five-Year Municipal Bond Index returns for Class B and Class C lifetimes were 5.08% and 5.56%, respectively. Inception dates for Class A shares of the Minnesota High-Yield Bond Fund was June 4, 1996 and Class B and Class C shares was June 12, 1996. Lehman Brothers Municipal Bond Index returns are for 10 years. Lehman Brothers Municipal Bond Index returns for Class B and Class C lifetimes was 6.62%. What are the Funds' fees and expenses? Sales charges are fees paid directly from your investments when you buy or sell shares of a Fund.
- ------------------------------------------------------------------------------------------------------------------------------------ Tax-Free Minnesota Insured Fund Tax-Free Minnesota Tax-Free Minnesota Fund Intermediate Fund Minnesota High-Yield Municipal Bond Fund CLASS A B C A B C - ----------------------------------------------------------------------------------------------------------------------------------- Maximum sales charge (load) imposed on purchases as a percentage of offering price 4.50% none none 2.75% none none - ----------------------------------------------------------------------------------------------------------------------------------- Maximum contingent deferred sales charge (load) as a percentage of original purchase price or redemption price, whichever is lower none(1) 4.00%(2) 1.00%(3) none(1) 2.00%(4) 1.00%(3) - ----------------------------------------------------------------------------------------------------------------------------------- Maximum sales charge (load) imposed on reinvested dividends none none none none none none - ----------------------------------------------------------------------------------------------------------------------------------- Redemption fees none none none none none none - -----------------------------------------------------------------------------------------------------------------------------------
12 (1) A purchase of Class A shares of $1 million or more may be made at net asset value. However, if you buy the shares through a financial adviser who is paid a commission, a contingent deferred sales charge will apply to redemptions made within two years of purchase for Tax-Free Minnesota Fund, Tax-Free Minnesota Insured Fund and Minnesota High-Yield Municipal Bond Fund and within one year of purchase for Tax-Free Minnesota Intermediate Fund. Additional Class A purchase options that involve a contingent deferred sales charge may be permitted from time to time and will be disclosed in the Prospectus if they are available. (2) If you redeem Class B shares during the first year after you buy them, you will pay a contingent deferred sales charge of 4.00%, which declines to 3.00% during the second year, 2.25% during the third year, 1.50% during the fourth and fifth year, 1.00% during the sixth year and 0% thereafter. (3) Class C shares redeemed within one year of purchase are subject to a 1.00% contingent deferred sales charge. (4) If you redeem Class B shares during the first year after you buy them, you will pay a contingent deferred sales charge of 2.00%, which declines to 1.00% during the second and third years and 0% thereafter. Annual fund operating expenses are deducted from a Fund's assets.
- ------------------------------------------------------------------------------------------------------------------------------------ Tax-Free Minnesota Fund Tax-Free Minnesota Insured Fund CLASS A B C A B C - ------------------------------------------------------------------------------------------------------------------------------------ Management fees 0.55% 0.55% 0.55% 0.50% 0.50% 0.50% - ------------------------------------------------------------------------------------------------------------------------------------ Distribution and service (12b-1) fees 0.25% 1.00% 1.00% 0.25% 1.00% 1.00% - ------------------------------------------------------------------------------------------------------------------------------------ Other expenses 0.20% 0.20% 0.20% 0.15% 0.15% 0.15% - ------------------------------------------------------------------------------------------------------------------------------------ Total annual fund operating expenses 1.00% 1.75% 1.75% 0.90% 1.65% 1.65% - ------------------------------------------------------------------------------------------------------------------------------------ Fee waivers and payments(5) (0.00%) (0.00%) (0.00%) (0.00%) (0.00%) (0.00%) - ------------------------------------------------------------------------------------------------------------------------------------ Net expenses 1.00% 1.75% 1.75% 0.90% 1.65% 1.65% - ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------ Minnesota High-Yield Municipal Tax-Free Minnesota Intermediate Fund Bond Fund CLASS A B C A B C - ------------------------------------------------------------------------------------------------------------------------------------ Management fees 0.50% 0.50% 0.50% 0.55% 0.55% 0.55% - ------------------------------------------------------------------------------------------------------------------------------------ Distribution and service (12b-1) fees 0.15%(6) 1.00% 1.00% 0.25% 1.00% 1.00% - ------------------------------------------------------------------------------------------------------------------------------------ Other expenses 0.28% 0.28% 0.28% 0.14% 0.14% 0.14% - ------------------------------------------------------------------------------------------------------------------------------------ Total annual fund operating expenses 0.93% 1.78% 1.78% 0.94% 1.69% 1.69% - ------------------------------------------------------------------------------------------------------------------------------------ Fee waivers and payments(5) (0.03%) (0.03%) (0.03%) (0.19%) (0.19%) (0.19%) - ------------------------------------------------------------------------------------------------------------------------------------ Net expenses 0.90% 1.75% 1.75% 0.75% 1.50% 1.50% - ------------------------------------------------------------------------------------------------------------------------------------
(5) The investment manager has contracted to waive fees and pay expenses of each Fund through October 31, 2002 in order to prevent total operating expenses (excluding any taxes, interest, brokerage fees, extraordinary expenses and 12b-1 fees) from exceeding 0.75% of average daily net assets of Tax-Free Minnesota Fund, Minnesota Insured Fund and Tax-Free Minnesota Intermediate Fund and 0.50% of average daily net assets of Minnesota High-Yield Municipal Bond Fund. (6) The 12b-1 Plan expenses for Tax-Free Minnesota Intermediate Fund's Class A shares have been set by the Board of Trustees at 0.15% of average daily net assets. The maximum fees payable under Class A's 12b-1 Plan are 0.25% of average daily net assets. 13 This example is intended to help you compare the cost of investing in the Funds to the cost of investing in other mutual funds with similar investment objectives. We show the cumulative amount of Fund expenses on a hypothetical investment of $10,000 with an annual 5% return over the time shown.(7) This is an example only, and does not represent future expenses, which may be greater or less than those shown here.
- ------------------------------------------------------------------------------------------------------------------------------------ Tax-Free Minnesota Fund(8) Tax-Free Minnesota Insured Fund(8) CLASS A B B C C A B B C C (if redeemed) (if redeemed) (if redeemed) (if redeemed) - ------------------------------------------------------------------------------------------------------------------------------------ 1 year $547 $178 $578 $178 $278 $538 $168 $568 $168 $268 - ------------------------------------------------------------------------------------------------------------------------------------ 3 years $754 $551 $776 $551 $551 $724 $520 $745 $520 $520 - ------------------------------------------------------------------------------------------------------------------------------------ 5 years $978 $949 $1,099 $949 $949 $926 $897 $1,047 $897 $897 - ------------------------------------------------------------------------------------------------------------------------------------ 10 years $1,620 $1,864 $1,864 $2,062 $2,062 $1,508 $1,754 $1,754 $1,955 $1,955 - ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------ Tax-Free Minnesota Intermediate Fund(9) Minnesota High-Yield Municipal Bond Fund(8) CLASS A B B C C A B B C C (if redeemed) (if redeemed) (if redeemed) (if redeemed) - ------------------------------------------------------------------------------------------------------------------------------------ 1 year $364 $178 $378 $178 $278 $523 $153 $553 $153 $253 - ------------------------------------------------------------------------------------------------------------------------------------ 3 years $560 $557 $657 $557 $557 $718 $514 $739 $514 $514 - ------------------------------------------------------------------------------------------------------------------------------------ 5 years $773 $962 $962 $962 $962 $929 $900 $1,050 $900 $900 - ------------------------------------------------------------------------------------------------------------------------------------ 10 years $1,384 $1,565 $1,565 $2,092 $2,092 $1,536 $1,782 $1,782 $1,982 $1,982 - ------------------------------------------------------------------------------------------------------------------------------------
(7) Each Fund's actual rate of return may be greater or less than the hypothetical 5% return we use here. This example reflects the net operating expenses with expense waivers for the one-year period and the total operating expenses without expense waivers for years two through 10. (8) The Class B example reflects the conversion of Class B shares to Class A shares after approximately eight years. Information for the ninth and tenth years reflects expenses of the Class A shares. (9) The Class B example reflects the conversion of Class B shares to Class A shares after approximately five years. Information for years six through ten reflects expenses of the Class A shares. 14 Delaware Tax-Free Missouri Insured Fund and Delaware Oregon Insured Fund only: The following information, which reflects the new sales charges described above, replaces the return and fee tables on pages 22 -- 23 of the Prospectus under "Profile: Minnesota Tax-Exempt Funds." The following average annual return table reflects the same time period and data as the table in the current Prospectus, except for the use of the new sales charges:
Average annual returns for periods ending 12/31/00 - ------------------------------------------------------------------------------------------------------------------------------------ Tax-Free Missouri Insured Fund 1 year 5 years lifetime** - ------------------------------------------------------------------------------------------------------------------------------------ Class A return before taxes 5.06% 3.94% 5.36% - ------------------------------------------------------------------------------------------------------------------------------------ Class A return after taxes on distributions 5.06% 3.94% 5.35% - ------------------------------------------------------------------------------------------------------------------------------------ Class A return after taxes on distributions and sale of Fund shares 4.95% 4.09% 5.32% - ------------------------------------------------------------------------------------------------------------------------------------ Class B return before taxes* 5.15% 3.94% 4.75% - ------------------------------------------------------------------------------------------------------------------------------------ Class C return before taxes* 8.14% 4.09% 4.42% - ------------------------------------------------------------------------------------------------------------------------------------ Lehman Brothers Insured Municipal Bond Index (reflects no deduction for fees, expenses or taxes) 13.46% 5.99% 6.74% - ------------------------------------------------------------------------------------------------------------------------------------ Tax-Free Oregon Insured Fund - ------------------------------------------------------------------------------------------------------------------------------------ Class A return before taxes 7.78% 4.16% 4.62% - ------------------------------------------------------------------------------------------------------------------------------------ Class A return after taxes on distributions 7.78% 4.16% 4.62% - ------------------------------------------------------------------------------------------------------------------------------------ Class A return after taxes on distributions and sale of Fund shares 6.61% 4.25% 4.65% - ------------------------------------------------------------------------------------------------------------------------------------ Class B return before taxes* 7.94% 4.14% 4.81% - ------------------------------------------------------------------------------------------------------------------------------------ Class C return before taxes* 11.05% 4.31% 5.10% - ------------------------------------------------------------------------------------------------------------------------------------ Lehman Brothers Insured Municipal Bond Index (reflects no deduction for fees, expenses or taxes) 13.46% 5.99% 5.97% - ------------------------------------------------------------------------------------------------------------------------------------
After-tax performance is presented only for Class A shares of the Fund. The after-tax returns for other Fund classes may vary. Actual after-tax returns depend on the investor's individual tax situation and may differ from the returns shown. After-tax returns are not relevant for shares held in tax- deferred investment vehicles such as employer-sponsored 401(k) plans and individual retirement accounts. The after-tax returns shown are calculated using the highest individual federal marginal income tax rates in effect during the Fund's lifetime and do not reflect the impact of state and local taxes. Past performance, both before and after taxes, is not a guarantee of future results. The Funds' returns are compared to the performance of the Lehman Brothers Insured Municipal Bond Index. You should remember that unlike the Funds, the index is unmanaged and does not reflect the actual costs of operating a mutual fund, such as the costs of buying, selling and holding securities. Maximum sales charges are included in the Fund returns shown above. * Total returns assume redemption of shares at end of period. If shares were not redeemed, the returns for Tax-Free Missouri Insured Fund's Class B would be 9.15%, 4.20% and 4.75% for the one-year, five-year and lifetime periods, respectively, and the returns for Tax-Free Oregon Insured Fund's Class B would be 11.94%, 4.39% and 4.81% for the one- year, five-year and lifetime periods, respectively. Returns for Tax-Free Missouri Insured Fund's Class C would be 9.14%, 4.09% and 4.42% for the one-year, five-year and lifetime periods, respectively, and returns for Tax-Free Oregon Insured Fund's Class C would be 12.05%, 4.31% and 5.10% for the one-year, five-year and lifetime periods, respectively. ** Lifetime returns are shown if the Fund or Class existed for less than 10 years. Inception dates for Class A, Class B and Class C shares of the Tax-Free Missouri Insured Fund were November 2, 1992, March 12, 1994 and November 11, 1995, respectively. Lehman Brothers Insured Municipal Bond Index returns are for 10 years. Lehman Brothers Insured Municipal Bond Index returns for Class B and Class C lifetimes were 7.05% and 5.99%, respectively. Inception dates for Class A, Class B and Class C shares of the Tax-Free Oregon Insured Fund were August 1, 1993, March 12, 1994 and July 7, 1995, respectively. Lehman Brothers Insured Municipal Bond Index returns are for 10 years. Lehman Brothers Insured Municipal Bond Index returns for Class B and Class C lifetimes were 7.05% and 6.63%, respectively. 15 What are the Funds' fees and expenses?
- --------------------------------------------------------------------------------------------------------------------------- Sales charges are CLASS A B C fees paid directly -------------------------------------------------------------------------------------------------- from your investments when Maximum sales charge (load) imposed on purchases as a you buy or sell percentage of offering price 4.50% none none shares of a Fund. -------------------------------------------------------------------------------------------------- Maximum contingent deferred sales charge (load) as a percentage of original purchase price or redemption price, whichever is lower none(1) 4.00%(2) 1.00%(3) -------------------------------------------------------------------------------------------------- Maximum sales charge (load) imposed on reinvested dividends none none none -------------------------------------------------------------------------------------------------- Redemption fees none none none - ---------------------------------------------------------------------------------------------------------------------------
(1) A purchase of Class A shares of $1 million or more may be made at net asset value. However, if you buy the shares through a financial adviser who is paid a commission, a contingent deferred sales charge will apply to redemptions made within two years of purchase. Additional Class A purchase options that involve a contingent deferred sales charge may be permitted from time to time and will be disclosed in the Prospectus if they are available. (2) If you redeem Class B shares during the first year after you buy them, you will pay a contingent deferred sales charge of 4.00%, which declines to 3.00% during the second year, 2.25% during the third year, 1.50% during the fourth and fifth year, 1.00% during the sixth year and 0% thereafter. (3) Class C shares redeemed within one year of purchase are subject to a 1.00% contingent deferred sales charge.
- --------------------------------------------------------------------------------------------------------------------------- Annual fund operating expenses Tax-Free Missouri Insured Fund Tax-Free Oregon Insured Fund are deducted from CLASS A B C A B C a Fund's assets. -------------------------------------------------------------------------------------------------- Management fees 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% -------------------------------------------------------------------------------------------------- Distribution and service (12b-1) fees 0.25% 1.00% 1.00% 0.25% 1.00% 1.00% -------------------------------------------------------------------------------------------------- Other expenses 0.20% 0.20% 0.20% 0.24% 0.24% 0.24% -------------------------------------------------------------------------------------------------- Total annual fund operating expenses 0.95% 1.70% 1.70% 0.99% 1.74% 1.74% -------------------------------------------------------------------------------------------------- Fee waivers and payments(4) -- -- -- (0.14%) (0.14%) (0.14%) -------------------------------------------------------------------------------------------------- Net expenses -- -- -- 0.85% 1.60% 1.60% - ---------------------------------------------------------------------------------------------------------------------------
This example is intended to help you compare the cost of investing in the Funds to the cost of investing in other mutual funds with similar investment objectives. We show the cumulative amount of Fund expenses on a hypothetical investment of $10,000 with an annual 5% return over the time shown. This is an example only, and does not represent future expenses, which may be greater or less than those shown here.
- ------------------------------------------------------------------------------------------------------------------------------------ Tax-Free Missouri Insured Fund(5) Tax-Free Oregon Insured Fund(6) CLASS A B B C C A B B C C (if redeemed) (if redeemed) (if redeemed) (if redeemed) - ------------------------------------------------------------------------------------------------------------------------------------ 1 year $543 $173 $573 $173 $273 $533 $163 $563 $163 $263 - ------------------------------------------------------------------------------------------------------------------------------------ 3 years $739 $536 $761 $536 $536 $738 $534 $759 $534 $534 - ------------------------------------------------------------------------------------------------------------------------------------ 5 years $952 $923 $1,073 $923 $923 $959 $931 $1,081 $931 $931 - ------------------------------------------------------------------------------------------------------------------------------------ 10 years $1,564 $1,810 $1,810 $2,009 $2,009 $1,596 $1,841 $1,842 $2,040 $2,040 - ------------------------------------------------------------------------------------------------------------------------------------
(4) The investment manager has contracted to waive fees and pay expenses of Tax-Free Oregon Insured Fund through October 31, 2002 in order to prevent total operating expenses (excluding any taxes, interest, brokerage fees, extraordinary expenses and 12b-1 fees) from exceeding 0.60% of average daily net assets of the Fund. (5) The Fund's actual rate of return may be greater or less than the hypothetical 5% return we use here. This example assumes that Tax-Free Missouri Insured Fund's total operating expenses remain unchanged in each of the periods we show. 16 (6) The Fund's actual rate of return may be greater or less than the hypothetical 5% return we use here. This example reflects the net operating expenses with expense waivers for the one-year period and the total operating expenses without expense waivers for years two through 10. (7) The Class B example reflects the conversion of Class B shares to Class A shares after approximately eight years. Information for the ninth and tenth years reflects expenses of the Class A shares. Delaware Tax-Free Arizona Fund, Delaware Tax-Free Arizona Insured Fund, Delaware Tax-Free California Fund, Delaware Tax-Free California Insured Fund, Delaware Tax-Free Colorado Fund, Delaware Tax-Free Florida Fund, Delaware Tax-Free Florida Insured Fund, Delaware Tax-Free Idaho Fund, Delaware Tax-Free Minnesota Fund, Delaware Tax-Free Minnesota Insured Fund, Delaware Tax-Free Minnesota Intermediate Fund, Delaware Minnesota High-Yield Municipal Bond Fund, Delaware Tax-Free Missouri Insured Fund, Delaware Tax-Free New York Fund, Delaware Tax-Free Oregon Insured Fund: The following information replaces the first bullet and the table under "Choosing a share Class--Class A" on page 35: CLASS A o Class A shares have an up-front sales charge of up to 4.50% that you pay when you buy the shares. Class A shares of Tax-Free Minnesota Intermediate Fund have an up-front sales charge of up to 2.75%. The offering price for Class A shares includes the front-end sales charge. Class A sales charges
- ------------------------------------------------------------------------------------------------------------------------- Tax-Free Funds, Insured Funds, Minnesota High-Yield Municipal Bond Fund Tax-Free Minnesota Intermediate Fund -------------------------------------------- ------------------------------------------ Dealer's Sales Sales Dealer's Sales Sales Commission charge charge Commission Amount of purchase charge as % charge as % as % of as % of as % of as % of of offering of amount offering offering amount offering price invested price price invested price - ------------------------------------------------------------------------------------------------------------------------- Less than $100,000 4.50% 4.71% 4.00% 2.75% 2.83% 2.35% - ------------------------------------------------------------------------------------------------------------------------- $100,000 but under $250,000 3.50% 3.63% 3.00% 2.00% 2.04% 1.75% - ------------------------------------------------------------------------------------------------------------------------- $250,000 but under $500,000 2.50% 2.56% 2.00% 1.00% 1.01% 0.75% - ------------------------------------------------------------------------------------------------------------------------- $500,000 but under $1 million 2.00% 2.04% 1.60% 1.00% 1.01% 0.75% - -------------------------------------------------------------------------------------------------------------------------
As shown below, there is no front-end sales charge when you purchase $1 million or more of Class A shares. However, if your financial adviser is paid a commission on your purchase, you will have to pay a limited contingent deferred sales charge, unless a specific waiver of the charge applies: of 1% if you redeem shares of the Tax-Free Funds, Insured Funds or Minnesota High- Yield Municipal Bond Fund within the first year and 0.50% if you redeem shares within the second year; and of 0.75% if you redeem shares of the Tax-Free Minnesota Intermediate Fund within the first year.
- ------------------------------------------------------------------------------------------------------------------------------------ Dealer's Commission as % of offer price Sales Sales ------------------------------------------------------ Amount of purchase charge as % charge as % Tax-Free Funds, Insured Funds Tax-Free Minnesota of offering of amount and Minnesota High-Yield Intermediate price invested Municipal Bond Fund Fund - ------------------------------------------------------------------------------------------------------------------------------------ $1 million up to $5 million none none 1.00% 0.75% - ------------------------------------------------------------------------------------------------------------------------------------ Next $20 million up to $25 million none none 0.50% 0.50% - ------------------------------------------------------------------------------------------------------------------------------------ Amount over $25 million none none 0.25% 0.25% - ------------------------------------------------------------------------------------------------------------------------------------
17 The following information replaces the second bullet and the last bullet, respectively, under "Choosing a share Class -- Class B" on page 36: CLASS B o If you redeem Class B shares during the first year after you buy them, the shares will be subject to a contingent deferred sales charge of 4.00%. The contingent deferred sales charge is 3.00% during the second year, 2.25% during the third year, 1.50% during the fourth and fifth years, 1.00% during the sixth year and 0% thereafter. For Tax-Free Minnesota Intermediate Fund, the contingent deferred sales charge is 2.00% during the first year, 1.00% during the second and third years and 0% thereafter. o You may purchase only up to $100,000 of Class B shares at any one time. The limitation on maximum purchases varies for retirement plans. The date of this Supplement is September 16, 2002. 18 -----END PRIVACY-ENHANCED MESSAGE-----