-----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, CkU0wnZ2+Ns8YAmMlz0rQV5AskZNh+4s+pNvH9JvOEB33dYwzwMZtrUQutvQ5LLA mgh5YUQc1J+3JgInBgPi9Q== 0000950116-05-000339.txt : 20050131 0000950116-05-000339.hdr.sgml : 20050131 20050131125152 ACCESSION NUMBER: 0000950116-05-000339 CONFORMED SUBMISSION TYPE: N-Q PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20041130 FILED AS OF DATE: 20050131 DATE AS OF CHANGE: 20050131 EFFECTIVENESS DATE: 20050131 FILER: COMPANY DATA: COMPANY CONFORMED NAME: VOYAGEUR TAX FREE FUNDS CENTRAL INDEX KEY: 0000733362 IRS NUMBER: 000000000 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-Q SEC ACT: 1940 Act SEC FILE NUMBER: 811-03910 FILM NUMBER: 05560871 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: VOYAGEUR TAX FREE FUNDS INC DATE OF NAME CHANGE: 19920703 FORMER COMPANY: FORMER CONFORMED NAME: VOYAGEUR MINNESOTA TAX FREE FUNDS INC DATE OF NAME CHANGE: 19910226 FORMER COMPANY: FORMER CONFORMED NAME: DOUBLE EXEMPT FLEX FUND INC DATE OF NAME CHANGE: 19900131 N-Q 1 n-q.txt N-Q.TXT UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM N-Q QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT COMPANY Investment Company Act file number: 811-3910 Exact name of registrant as specified in charter: Voyageur Tax Free Funds Address of principal executive offices: 2005 Market Street Philadelphia, PA 19103 Name and address of agent for service: Richelle S. Maestro, Esq. 2005 Market Street Philadelphia, PA 19103 Registrant's telephone number, including area code: (800) 523-1918 Date of fiscal year end: August 31 Date of reporting period: November 30, 2004 ITEM 1. SCHEDULE OF INVESTMENTS. DELAWARE TAX-FREE MINNESOTA FUND SCHEDULE OF INVESTMENTS (UNAUDITED) NOVEMBER 30, 2004
PRINCIPAL MARKET AMOUNT VALUE ------------- ------------- MUNICIPAL BONDS- 95.34% Airport Revenue Bonds - 4.16% Minneapolis/St. Paul Metropolitan Airports Commission Series A 5.00% 1/1/22 (AMBAC) $ 3,440,000 $ 3,586,888 Series A 5.25% 1/1/16 (MBIA) 1,460,000 1,585,502 Series A 5.25% 1/1/32 (FGIC) 5,000,000 5,197,250 Series C 5.25% 1/1/32 (FGIC) 2,250,000 2,331,855 Series C 5.50% 1/1/17 (FGIC) 2,500,000 2,751,725 ------------- 15,453,220 ------------- City General Obligation Bonds - 0.94% Minneapolis Library 5.00% 12/1/25 1,500,000 1,547,385 St. Peter's Hospital Series A 5.00% 9/1/24 (MBIA) 1,905,000 1,957,540 ------------- 3,504,925 ------------- Continuing Care/Retirement Revenue Bonds - 2.36% Bloomington Housing & Redevelopment Authority Housing Revenue (Senior Summerhouse Bloomington Project, Presbyterian Homes Housing & Assisted Living, Inc.) 6.125% 5/1/35 3,420,000 3,401,087 Minnesota Agriculture & Economic Development Board Revenue (Benedictine Health Systems) 5.75% 2/1/29 1,895,000 1,869,266 Rochester Multifamily Revenue (Wedum Shorewood Campus Project) 6.60% 6/1/36 3,490,000 3,475,307 ------------- 8,745,660 ------------- Corporate-Backed Revenue Bonds - 4.66% Cloquet Pollution Control Revenue (Potlatch Corp. Project) 5.90% 10/1/26 6,500,000 6,531,460 International Falls Pollution Control Revenue (Boise Cascade Corp. Project) 6.85% 12/1/29 (AMT) 500,000 526,955 Sartell Environmental Improvement Revenue (International Paper) Series A 5.20% 6/1/27 5,465,000 5,432,702 Seaway Port Authority of Duluth Industrial Development Dock & Wharf Revenues (Cargill, Inc. Project) Series E 6.125% 11/1/14 4,500,000 4,802,670 ------------- 17,293,787 ------------- Dedicated Tax & Fees Revenue Bonds - 1.33% ^Minneapolis Community Development Agency Tax Increment Revenue 6.67% 9/1/09 (MBIA) 5,750,000 4,934,765 ------------- 4,934,765 ------------- Escrowed to Maturity Bonds - 0.35% Southern Minnesota Municipal Power Agency Supply System Revenue Series B 5.50% 1/1/15 (AMBAC) 990,000 1,006,295 Western Minnesota Municipal Power Agency Supply System Revenue Series A 9.75% 1/1/16 (MBIA) 185,000 278,529 ------------- 1,284,824 ------------- Higher Education Revenue Bonds - 4.68% Minnesota State Higher Education Facilities Authority Revenue (College of St. Benedict) Series 4-G 6.20% 3/1/16 1,000,000 1,020,660 (Hamline University) Series 4-16.00% 10/1/12 1,250,000 1,297,013 Series 4-16.00% 10/1/16 1,790,000 1,846,886 (St. Catherine College) Series 5-N1 5.25% 10/1/22 1,500,000 1,554,960 University of Minnesota Series A 5.50% 7/1/21 2,000,000 2,291,440 &University of Minnesota, Inverse Floater ROLs Series II-R-29 9.204% 7/1/21 5,250,000 6,780,112 9.712% 7/1/18 1,920,000 2,590,234 ------------- 17,381,305 -------------
2 Hospital Revenue Bonds - 22.05% Bemidji Hospital Facilities Revenue (North County Health Services) 5.00% 9/1/24 (RADIAN) 740,000 758,581 6.05% 9/1/16 600,000 612,018 6.05% 9/1/24 1,825,000 1,861,153 Breckenridge Catholic Health Initiatives 5.00% 5/1/30 2,000,000 2,014,860 Duluth Economic Development Authority Health Care Facilities Revenue Benedictine Health System (St. Mary's Hospital) 5.25% 2/15/33 13,500,000 13,523,354 Maplewood Healthcare Facility Revenue (Health East Project) 5.95% 11/15/06 1,510,000 1,511,268 Marshall Medical Center Gross Revenue (Weiner Memorial Medical Center Project) 6.00% 11/1/28 1,000,000 1,007,330 Minneapolis Health Care System Revenue Series A (Allina Health Systems) 5.75%11/15/32 9,500,000 9,966,640 (Fairview Health Services) 5.625% 5/15/32 11,025,000 11,519,251 Minnesota Agricultural & Economic Development Board Revenue Health Care System (Fairview Hospital) Series A 6.375% 11/15/29 500,000 542,660 Rochester Health Care Facilities Revenue (Mayo Foundation) Series B 5.50% 11/15/27 700,000 736,120 &Rochester Health Care Facilities Revenue (Mayo Foundation), Inverse Floater ROLs Series II-R-28 Series A 9.204% 11/15/27 2,100,000 2,316,720 Series B 9.204% 11/15/27 8,375,000 9,239,300 Shakopee Health Care Facilities Revenue (St. Francis Regional Medical Center) 5.25% 9/1/34 7,000,000 7,080,920 Series B 5.10% 9/1/25 2,000,000 1,992,740 St. Louis Park Health Care Facilities Revenue (Park Nicollet Health Services) Series B 5.25% 7/1/30 9,420,000 9,622,342 St. Paul Housing & Redevelopment Authority Hospital Revenue (Health East Project) Series A 5.70% 11/1/15 1,300,000 1,303,965 6.625% 11/1/17 5,285,000 5,331,984 Washington County Housing & Redevelopment Authority Hospital Facilities Revenue (Health East Project) 5.50% 11/15/27 1,000,000 935,250 ------------- 81,876,456 ------------- Miscellaneous Revenue Bonds - 1.71% Minneapolis Community Development Agency Supported Development Revenue Limited Tax (Common Bond Fund) Series 2A 7.125% 12/1/05 120,000 122,744 Minnesota Public Facilities Authority Water Pollution Control Revenue Series A 5.00% 3/1/20 3,000,000 3,167,011 St. Cloud Commercial Development Revenue (Northwest Center Association Project) 7.50% 8/1/12 3,093,971 3,052,697 ------------- 6,342,452 ------------- Multifamily Housing Revenue Bonds - 10.98% Austin Housing & Redevelopment Authority Housing Gross Revenue (Courtyard Residence Project) Series A 7.25% 1/1/26 500,000 516,380 Brooklyn Center Multifamily Housing Revenue (Ponds Family Housing Project-Section 8) 5.90% 1/1/20 1,250,000 1,254,675 (Shingle Creek) 5.40% 5/20/43 (GNMA) (AMT) 1,000,000 1,012,960 Carver County Housing & Redevelopment Authority Multifamily Revenue (Lake Grace Apartments Project) Series A 6.00% 7/1/28 1,435,000 1,448,331 Dakota County Housing & Redevelopment Authority Multifamily Housing Revenue (Affordable Housing View Pointe Project) 6.125% 11/1/17 2,475,000 2,277,000 Eden Prairie Multifamily Housing Revenue (Tanager Creek) Series A 8.05% 6/20/31 (GNMA) 7,605,000 8,047,992
3 Hopkins Multifamily Housing Revenue (Hopkins Renaissance Project-Section 8) 6.375% 4/1/20 1,000,000 1,046,000 Hutchinson Multifamily Housing Revenue (Evergreen Apartments Project-Section 8) 5.75% 11/1/28 950,000 847,742 Little Canada Multifamily Housing Revenue (Housing Alternative Development Co. Project) Series A 1,340,000 1,342,358 6.10% 12/1/17 6.25% 12/1/27 2,900,000 2,870,362 Minneapolis Multifamily Housing Revenue (Grant Street Apartments Project) Series A 7.25% 11/1/29 750,000 710,790 (Seward Towers Project) 5.00% 5/20/36 (GNMA) 4,000,000 4,025,240 (Sumner Field) Series A 5.50% 11/20/26 (GNMA) (AMT) 1,020,000 1,054,190 (Trinity Apartments-Section 8) Series A 6.75% 5/1/21 1,860,000 1,775,686 Park Rapids Multifamily Revenue (The Court Apartments Project-Section 8) 6.30% 2/1/20 2,960,000 2,707,246 St. Cloud Housing & Redevelopment Authority Revenue (Sterling Heights Apartments Project) 7.55% 4/1/39 (AMT) 1,000,000 973,010 St. Louis Park Multifamily Housing Revenue (Knollwood Apartments Project) 6.25% 12/1/28 (FHA) 3,855,000 3,958,661 Stillwater Multifamily Housing Revenue (Stillwater Cottages Project) Series A 7.00% 11/1/27 1,000,000 959,800 Wadena Housing & Redevelopment Authority Multifamily Housing Revenue (Humphrey Manor East Project) 6.00% 2/1/19 2,045,000 2,038,047 Washington County Housing & Redevelopment Authority Governmental Revenue (Briar Pond) Series C 7.25% 8/20/34 975,000 899,925 Willmar Housing & Redevelopment Authority Multifamily Housing Revenue (Highland Apartments-Section 8) 5.85% 6/1/19 1,010,000 1,003,667 ------------- 40,770,062 ------------- Municipal Lease Revenue Bonds - 2.41% St. Paul Port Authority Lease Revenue (Cedar Street Office Building Project) 5.00% 12/1/22 2,500,000 2,597,700 5.125% 12/1/27 1,000,000 1,031,650 (Robert Street Office Building Project) 4.75% 12/1/23 2,000,000 2,016,780 5.00% 12/1/27 2,500,000 2,552,875 Series 9 5.25% 12/1/27 725,000 758,771 ------------- 8,957,776 ------------- Political Subdivision General Obligation Bonds - 2.00% Dakota County Capital Improvement Series A 4.75% 2/1/26 1,000,000 1,006,050 Hennepin County Regional Railroad Authority 5.00% 12/1/31 4,030,000 4,066,391 Metropolitan Council Waste Water Treatment Series B 5.00% 12/1/21 1,200,000 1,273,224 Ramsey County State Aid Series C 5.00% 2/1/28 1,060,000 1,084,550 ------------- 7,430,215 ------------- *Pre-Refunded Bonds - 7.36% Beltrami County Housing & Redevelopment Authority Revenue 6.20% 2/1/14-05 1,010,000 1,016,949 Bloomington Tax Increment Bonds 9.75% 2/1/08-05 500,000 506,495 Kenyon Wanamingo Independent School District #2172 6.00% 2/1/18-05 (MBIA) 2,350,000 2,365,228 Minnesota Public Facilities Authority Water Pollution Control Revenue Series A 6.25% 3/1/16-05 4,400,000 4,447,520 North St. Paul Maplewood Independent School District #622 Series A 7.10% 2/1/25-05 (FSA) 10,000,000 10,086,500 Puerto Rico Commonwealth Public Improvement 5.125% 7/1/30-11 (FSA) 615,000 686,525 Series A 5.125% 7/1/31-11 675,000 753,503 Puerto Rico Electric Power Authority Power Revenue Series X 5.50% 7/1/25-05 3,080,000 3,143,078
4 Puerto Rico Public Buildings Authority Guaranteed Government Facilities Revenue Series D 5.25% 7/1/36-12 2,930,000 3,241,195 Southern Minnesota Municipal Power Agency Supply System Revenue Series A 5.75% 1/1/18-16 (MBIA) 1,000,000 1,091,340 ------------- 27,338,333 ------------- Public Power Revenue Bonds - 11.66% Chaska Electric Revenue Series A 6.00% 10/1/25 1,000,000 1,068,500 Minnesota State Municipal Power Agency Series A 5.00% 10/1/34 1,250,000 1,237,100 5.125% 10/1/29 3,000,000 3,033,300 Northern Minnesota Municipal Power Agency Electric System Revenue ^Series A 5.85% 1/1/09 (AMBAC) 3,815,000 3,353,576 Series B 4.75% 1/1/20 (AMBAC) 2,500,000 2,570,125 Rochester Electric Utilities Revenue 5.25% 12/1/30 4,915,000 5,035,614 Shakopee Public Utilities Commission Public Utilities Revenue 5.125% 2/1/26 (MBIA) 1,000,000 1,030,120 Southern Minnesota Municipal Power Agency Supply System Revenue Series A 5.00% 1/1/12 (AMBAC) 1,705,000 1,874,886 5.00% 1/1/13 (MBIA) 5,820,000 6,384,889 5.25% 1/1/15 (AMBAC) 3,410,000 3,810,334 5.25% 1/1/16 (AMBAC) 1,000,000 1,119,100 &Southern Minnesota Municipal Power Agency Supply System Revenue, Inverse Floater ROLs Series II-R-189 5.32% 1/1/16 (AMBAC) 3,500,000 3,916,850 Series II-R-189 8.718% 1/1/15 (AMBAC) 2,950,000 3,642,660 Series II-R-189-1 5.066% 1/1/12 (AMBAC) 2,500,000 2,749,125 Series II-R-189-3 8.718% 1/1/14 (AMBAC) 2,000,000 2,463,160 ------------- 43,289,339 ------------- School District General Obligation Bonds - 6.24% Bloomington Independent School District #271 Series B 5.00% 2/1/17 5,300,000 5,603,318 ^Farmington Independent School District #192 Capital Appreciation Series B 5.34% 2/1/21 (FSA) 1,500,000 651,240 5.42% 2/1/20 (FSA) 1,650,000 759,281 ^Lakeville Independent School District #194 Capital Appreciation Series B 5.45% 2/1/19 (FSA) 8,000,000 3,918,720 ^Mahtomedi Independent School District #832 Capital Appreciation Series B 5.90% 2/1/14 (MBIA) 1,540,000 1,055,562 &Rockford Independent School District #883, Inverse Floater ROLS Series II-R-30-A 9.458% 2/1/23 (FSA) 3,510,000 4,195,537 ^Rosemont Independent School District #196 Capital Appreciation Series B 5.93% 4/1/11 (FSA) 2,600,000 2,059,772 5.96% 4/1/12 (FSA) 1,850,000 1,392,514 6.01% 4/1/13 (FSA) 1,915,000 1,370,910 ^Sartell Independent School District #748 Capital Appreciation Series B 5.98% 2/1/13 (MBIA) 540,000 392,359 6.10% 2/1/15 (MBIA) 1,075,000 699,879 6.15% 2/1/16 (MBIA) 1,750,000 1,078,018 ------------- 23,177,110 ------------- Single Family Housing Revenue Bonds - 1.30% Minnesota State Housing Finance Agency Single Family Mortgage Series A 5.30% 7/1/19 770,000 811,018 Series B 5.35% 1/1/33 (AMT) 2,990,000 3,018,405 Series J 5.90% 7/1/28 (AMT) 760,000 781,523 St. Louis Park Residential Mortgage Revenue Series A 7.25% 4/20/23 (GNMA) 128,000 128,074 St. Paul Housing & Redevelopment Authority Single Family Mortgage Revenue Series C 6.90% 12/1/21 (FNMA) 100,000 100,095 ------------- 4,839,115 ------------- State General Obligation Bonds - 3.04% Minnesota State 5.00% 11/1/20 (FSA) 8,175,000 8,740,955 5.00% 8/1/21 2,400,000 2,539,800 ------------- 11,280,755 -------------
5 Tax Increment/Special Assessment Bonds - 2.62% Minneapolis Tax Increment Revenue (St. Anthony Falls Project) 5.75% 3/1/27 1,000,000 978,460 Minneapolis Tax Increment Revenue Series E 5.00% 3/1/13 6,265,000 6,738,697 Rochester Tax Increment 6.50% 12/1/04 1,000,000 1,000,130 St. Paul Housing & Redevelopment Authority Tax Increment (Upper Landing Project) Series A 6.80% 3/1/29 1,000,000 1,004,930 ------------- 9,722,217 ------------- Territorial General Obligation Bonds - 1.14% Puerto Rico Commonwealth Public Improvement Series A 5.00% 7/1/34 2,500,000 2,506,500 5.50% 7/1/19 (MBIA) 1,500,000 1,733,250 ------------- 4,239,750 ------------- Territorial Revenue Bonds - 2.24% Puerto Rico Commonwealth Public Improvement (Unrefunded Balance) 5.125% 7/1/30 (FSA) 385,000 395,653 Puerto Rico Commonwealth Public Improvement Series A 5.125% 7/1/31 1,325,000 1,343,033 Puerto Rico Electric Power Authority Power Revenue Series OO 5.00% 7/1/13 (CIFG) 5,000,000 5,491,600 Puerto Rico Public Buildings Authority Guaranteed Government Facilities Revenue Series D (Unrefunded Balance) 5.25% 7/1/36 1,070,000 1,098,762 ------------- 8,329,048 ------------- Water & Sewer Revenue Bonds - 2.11% Minnesota Public Facilities Authority Water Pollution Control Revenue Series B 4.75% 3/1/19 2,000,000 2,064,640 &Minnesota Public Facilities Authority Water Pollution Control Revenue, Inverse Floater ROLs Series II-R-31 8.696% 3/1/14 5,000,000 5,773,500 ------------- 7,838,140 ------------- TOTAL MUNICIPAL BONDS (COST $338,526,888) 354,029,254 ------------- SHORT-TERM INVESTMENTS - 3.10% **Variable Rate Demand Notes - 3.10% Brown County Purchase Revenue Variable 1.64% 9/1/24 2,500,000 2,500,000 Minneapolis Library 1.54% 12/1/32 (SPA, Dexia Credit Local) 9,000,000 9,000,000 ------------- TOTAL SHORT-TERM INVESTMENTS (COST $11,500,000) 11,500,000 ------------- TOTAL MARKET VALUE OF SECURITIES - 98.44% (cost $350,026,888) 365,529,254 RECEIVABLES AND OTHER ASSETS NET OF LIABILITIES (SEE NOTES) - 1.56% 5,792,227 ------------- NET ASSETS APPLICABLE TO 29,937,897 SHARES OUTSTANDING - 100.00% $ 371,321,481 -------------
*Pre-Refunded Bonds are municipals that are generally backed or secured by U.S. Treasury bonds. For Pre-Refunded Bonds, the stated maturity is followed by the year in which the bond is pre-refunded. **Variable Rate Notes. The interest rate shown is the rate as of November 30, 2004. &An inverse floater bond is a type of bond with variable or floating interest rates that move in the opposite direction of short-term interest rates. Interest rate disclosed is in effect as of November 30, 2004 ^Zero Coupon Bond. The interest rate shown is the yield at the time of purchase. SUMMARY OF ABBREVIATIONS: AMBAC - Insured by the AMBAC Assurance Corporation AMT - Subject to Alternative Minimum Tax CIFG - Insured by CDC IXIS Financial Guaranty FGIC - Insured by the Financial Guaranty Insurance Company FHA - Insured by the Federal Housing Administration FNMA - Insured by Federal National Mortgage Association FSA - Insured by Financial Security Assurance GNMA - Insured by Government National Mortgage Association MBIA - Insured by the Municipal Bond Insurance Association RADIAN - Insured by Radian Asset Assurance ROLs - Residual Option Longs SPA - Stand-by Purchase Agreement 6 NOTES 1. SIGNIFICANT ACCOUNTING POLICIES The following accounting policies are in accordance with U.S. generally accepted accounting principles and are consistently followed by Voyager Tax-Free Funds - Delaware Tax-Free Minnesota Fund (the "Fund"). SECURITY VALUATION - Long-term debt securities are valued by an independent pricing service and such prices are believed to reflect the fair value of such securities. Short-term debt securities having less than 60 days to maturity are valued at amortized cost, which approximates market value. Other securities and assets for which market quotations are not readily available are valued at fair value as determined in good faith under the direction of the Fund's Board of Trustees. FEDERAL INCOME TAXES - The Fund intends to continue to qualify for federal income tax purposes as a regulated investment company and make the requisite distributions to shareholders. Accordingly, no provision for federal income taxes has been made in the financial statements. CLASS ACCOUNTING - Investment income and common expenses are allocated to the classes of the Fund on the basis of "settled shares" of each class in relation to the net assets of the Fund. Realized and unrealized gain (loss) on investments are allocated to the various classes of the Fund on the basis of daily net assets of each class. Distribution expenses relating to a specific class are charged directly to that class. USE OF ESTIMATES - The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. OTHER - Expenses common to all funds within the Delaware Investments Family of Funds are allocated amongst the funds on the basis of average net assets. Management fees and some other expenses are paid monthly. Security transactions are recorded on the date the securities are purchased or sold (trade date). Costs used in calculating realized gains and losses on the sale of investment securities are those of the specific securities sold. Interest income is recorded on the accrual basis. Discounts and premiums are amortized to interest income over the lives of the respective securities. The Fund declares dividends daily from net investment income and pays such dividends monthly and declares and pays distributions from net realized gain on investments, if any, annually. 2. INVESTMENTS At November 30, 2004, the cost of investments for federal income tax purposes has been estimated since the final tax characteristics cannot be determined until fiscal year end. At November 30, 2004, the aggregate cost of investments and gross unrealized appreciation (depreciation) for the Fund for federal income tax purposes was as follows: Aggregate cost of investments $ 350,022,930 ------------- Aggregate unrealized appreciation 16,973,493 Aggregate unrealized depreciation (1,467,169) ------------- Net unrealized appreciation $ 15,506,324 ------------- 3. CREDIT AND MARKET RISK The Fund concentrates its investments in securities issued by municipalities, mainly in Minnesota. The value of these investments may be adversely affected by new legislation within the state, regional or local economic conditions, and differing levels of supply and demand for municipal bonds. Many municipalities insure repayment for their obligations. Although bond insurance reduces the risk of loss due to default by an issuer, such bonds remain subject to the risk that market value may fluctuate for other reasons and there is no assurance that the insurance company will meet its obligations. These securities have been identified in the Schedule of Investments. The Fund may invest in inverse floating rate securities ("inverse floaters"), a type of derivative tax-exempt obligation with floating or variable interest rates that move in the opposite direction of short-term interest rates, usually at an accelerated speed. Consequently, the market values of inverse floaters will generally be more volatile than other tax-exempt investments. Such securities are denoted on the Schedule of Investments. 7 ITEM 2. CONTROLS AND PROCEDURES. The registrant's principal executive officer and principal financial officer have evaluated the registrant's disclosure controls and procedures within 90 days of the filing of this report and have concluded that they are effective in providing reasonable assurance that the information required to be disclosed by the registrant in its reports or statements filed under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the Securities and Exchange Commission. There were no significant changes in the registrant's internal control over financial reporting that occurred during the registrant's last fiscal quarter (the registrant's second fiscal half-year in the case of an annual report) that have materially affected, or are reasonably likely to materially affect, the registrant's internal control over financial reporting. ITEM 3. EXHIBITS. File as exhibits as part of this Form a separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the Act (17 CFR 270.30a-2(a)), exactly as set forth below: 8 CERTIFICATION I, Jude T. Driscoll, certify that: 1. I have reviewed this report on Form N-Q of Voyageur Tax Free Funds; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the schedules of investments included in this report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed; 4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; (c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report, based on such evaluation; and (d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Jude T. Driscoll ----------------- By: Jude T. Driscoll Title: Chairman Date: January 28, 2005 9 CERTIFICATION I, Joseph H. Hastings, certify that: 1. I have reviewed this report on Form N-Q of Voyageur Tax Free Funds; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the schedules of investments included in this report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed; 4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; (c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report, based on such evaluation; and (d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Joseph H. Hastings ------------------------ By: Joseph H. Hastings Title: Chief Financial Officer Date: January 28, 2005 10 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. VOYAGEUR TAX FREE FUNDS Jude T. Driscoll ------------------------ By: Jude T. Driscoll Title: Chairman Date: January 28, 2005 Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. Jude T. Driscoll ------------------------ By: Jude T. Driscoll Title: Chairman Date: January 28, 2005 Joseph H. Hastings ------------------------ By: Joseph H. Hastings Title: Chief Financial Officer Date: January 28, 2005 11 -----END PRIVACY-ENHANCED MESSAGE-----