-----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, AaHLzkA5KzO0HJAUqwMvtYHlOyYcZq8dh38sTfQg17lggWkCCny1hHWsETMYAv5z Q0kfyWIqcCpkgfOWsRmNtg== 0000763749-95-000021.txt : 19951130 0000763749-95-000021.hdr.sgml : 19951130 ACCESSION NUMBER: 0000763749-95-000021 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19950930 FILED AS OF DATE: 19951128 SROS: AMEX FILER: COMPANY DATA: COMPANY CONFORMED NAME: VOYAGEUR ARIZONA MUNICIPAL INCOME FUND INC CENTRAL INDEX KEY: 0000895577 STANDARD INDUSTRIAL CLASSIFICATION: UNKNOWN SIC - 0000 [0000] IRS NUMBER: 411737155 STATE OF INCORPORATION: MN FISCAL YEAR END: 0331 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-07412 FILM NUMBER: 95596944 BUSINESS ADDRESS: STREET 1: C/O MITCHELL HUTCHINS ASSET MANAGEMENT I STREET 2: 1285 AVE OF THE AMERICAS 16TH FLR CITY: NEW YORK STATE: NY ZIP: 10019 BUSINESS PHONE: 2127131251 MAIL ADDRESS: STREET 1: MITCHELL HUTCHINS AASSET MANAGEMENT INC STREET 2: 1285 AVENUE OF THE AMERICAS - 16TH FLOOR CITY: NEW YORK STATE: NY ZIP: 10019 FILER: COMPANY DATA: COMPANY CONFORMED NAME: VOYAGEUR MINNESOTA MUNICIPAL INCOME FUND INC CENTRAL INDEX KEY: 0000884174 STANDARD INDUSTRIAL CLASSIFICATION: UNKNOWN SIC - 0000 [0000] IRS NUMBER: 411718337 STATE OF INCORPORATION: MN FISCAL YEAR END: 0331 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-06568 FILM NUMBER: 95596945 BUSINESS ADDRESS: STREET 1: C/O MITCHELL HUTCHINS ASSET MANAGEMENT I STREET 2: 1285 AVENUE OF THE AMERICAS 16TH FLR CITY: NEW YORK STATE: NY ZIP: 10019 BUSINESS PHONE: 2127131251 MAIL ADDRESS: STREET 1: MITCHELL HUTCHINS ASSET MANAGEMENT INC STREET 2: 1285 AVENUE OF THE AMERICAS CITY: NEW YORK STATE: NY ZIP: 10019 FILER: COMPANY DATA: COMPANY CONFORMED NAME: VOYAGEUR FLORIDA INSURED MUNICIPAL INCOME FUND CENTRAL INDEX KEY: 0000895574 STANDARD INDUSTRIAL CLASSIFICATION: UNKNOWN SIC - 0000 [0000] IRS NUMBER: 411737161 STATE OF INCORPORATION: MA FISCAL YEAR END: 0331 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-07410 FILM NUMBER: 95596946 BUSINESS ADDRESS: STREET 1: MITCHELL HUTCHINS ASSET MANAGEMENT INC STREET 2: 1285 AVE OF THE AMERICAS 16TH FLR CITY: NEW YORK STATE: NY ZIP: 10019 BUSINESS PHONE: 2127131251 MAIL ADDRESS: STREET 1: MITCHELL HUTCHINS AASSET MANAGEMENT INC STREET 2: 1285 AVENUE OF THE AMERICAS- 16TH FLOOR CITY: NEW YORK STATE: NY ZIP: 10019 FILER: COMPANY DATA: COMPANY CONFORMED NAME: VOYAGEUR MINNESOTA MUNICIPAL INCOME FUND II INC CENTRAL INDEX KEY: 0000895658 STANDARD INDUSTRIAL CLASSIFICATION: UNKNOWN SIC - 0000 [0000] STATE OF INCORPORATION: MN FISCAL YEAR END: 0331 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-07420 FILM NUMBER: 95596947 BUSINESS ADDRESS: STREET 1: C/O MITCHELL HUTCHINS ASSET MANAGEMENT I STREET 2: 1285 AVENUE OF THE AMERICAS 16TH FLR CITY: NEW YORK STATE: NY ZIP: 10019 BUSINESS PHONE: 2127131251 MAIL ADDRESS: STREET 1: MITCHELL HUTCHINS ASSET MANAGEMENT INC STREET 2: 1285 AVENUE OF THE AMERICAS- 16TH FLOOR CITY: NEW YORK STATE: NY ZIP: 10019 FILER: COMPANY DATA: COMPANY CONFORMED NAME: VOYAGEUR COLORADO INSURED MUNICIPAL INCOME FUND INC CENTRAL INDEX KEY: 0000907573 STANDARD INDUSTRIAL CLASSIFICATION: UNKNOWN SIC - 0000 [0000] IRS NUMBER: 411751991 STATE OF INCORPORATION: MN FISCAL YEAR END: 0331 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-07810 FILM NUMBER: 95596948 BUSINESS ADDRESS: STREET 1: 90 SOUTH SEVENTH STREET STREET 2: SUITE 4400 CITY: MINNEAPOLIS STATE: MN ZIP: 55402-4115 BUSINESS PHONE: 6123767030 MAIL ADDRESS: STREET 1: PRINCETON ADMINISTRATORS LP STREET 2: P O BOX 9011 CITY: PRINCETONOLIS STATE: NJ ZIP: 08543-9011 FILER: COMPANY DATA: COMPANY CONFORMED NAME: VOYAGEUR MINNESOTA MUNICIPAL INCOME FUND III INC CENTRAL INDEX KEY: 0000910347 STANDARD INDUSTRIAL CLASSIFICATION: UNKNOWN SIC - 0000 [0000] IRS NUMBER: 411761999 STATE OF INCORPORATION: MN FISCAL YEAR END: 0331 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-07938 FILM NUMBER: 95596949 BUSINESS ADDRESS: STREET 1: C/O MITCHELL HUTCHINS ASSET MANAGEMENT I STREET 2: 1285 AVE OF THE AMERICAS CITY: NEW YORK STATE: NY ZIP: 10019 BUSINESS PHONE: 2127131251 MAIL ADDRESS: STREET 1: MITCHELL HUTCHINS ASSET MANAGEMENT INC STREET 2: 1285 AVENUE OF THE AMERICAS 16TH FLR CITY: NEW YORK STATE: NY ZIP: 10019 N-30D 1 SEMI-ANNUAL REPORT TO SHAREHOLDERS MINNESOTA MUNICIPAL INCOME FUND, INC. MINNESOTA MUNICIPAL INCOME FUND II, INC. MINNESOTA MUNICIPAL INCOME FUND III, INC. ARIZONA MUNICIPAL INCOME FUND, INC. FLORIDA INSURED MUNICIPAL INCOME FUND COLORADO INSURED MUNICIPAL INCOME FUND, INC. S E M I - A N N U A L R E P O R T Dated September 30, 1995 THE VOYAGEUR FUNDS GENERAL INFORMATION - -------------------------------------------------------------------------------- THE FUNDS Voyageur Minnesota Municipal Income Fund, Inc., Voyageur Minnesota Municipal Income Fund II, Inc., Voyageur Minnesota Municipal Income Fund III, Inc., Voyageur Arizona Municipal Income Fund, Inc., Voyageur Florida Insured Municipal Income Fund and Voyageur Colorado Insured Municipal Income Fund, Inc. (the "Funds") are diversified, closed-end management investment companies (except Voyageur Minnesota Municipal Income Fund, Inc., Voyageur Minnesota Municipal Income Fund III, Inc., and Voyageur Colorado Insured Municipal Income Fund, Inc. which are non-diversified management investment companies) whose shares trade on the American Stock Exchange ("ASE") under the symbols VMN, VMM, VYM, VAZ, VFL and VCF, respectively. The investment objective of each Fund is to provide high current income exempt from federal income tax and from the personal income tax of its state, if any, consistent with the preservation of capital. Voyageur Florida Insured Municipal Income Fund will generally seek investments that will enable its shares to be exempt from Florida's intangible personal property tax. Each Fund will seek to achieve its investment objective by investing substantially all of its net assets in investment grade, tax-exempt municipal obligations. INVESTMENT ADVISER Voyageur Fund Managers, Inc. (the "Adviser") acts as the Funds' investment adviser. As of September 30, 1995, the Adviser acted as the investment adviser to six closed-end investment companies and ten open-end investment companies (comprising twenty-nine separate investment portfolios) and numerous private accounts with combined total assets of approximately $7.9 billion. SHAREHOLDER INFORMATION Weekly net asset value and market price information for the Funds are published each Monday in THE WALL STREET JOURNAL and THE NEW YORK TIMES and each Saturday in BARRON'S, as well as numerous other newspapers. DISTRIBUTIONS AND DIVIDEND REINVESTMENT PLAN Under the Funds' current policies, shareholders may elect to receive all dividends and other distributions in cash paid by check mailed directly to the shareholders by the dividend paying agent, Norwest Bank Minnesota, N.A., (the "Plan Agent"). Under each Fund's Dividend Reinvestment Plan, (collectively the "Plans"), common shareholders not making such election will be automatically enrolled in the Funds' Plans. Under the Plans, all distributions to common shareholders of net investment income and capital gains will be automatically reinvested in additional shares of the Funds' common shares. The Plan Agent serves as agent for the common shareholders in administering the Plans. After each Fund declares a dividend or determines to make a capital gains distribution, the Plan Agent will, as agent for the participants, receive the cash payment and use it to buy shares of each Fund's common shares in the open market, on the ASE or elsewhere, for the participants' accounts. The Funds will not issue any new shares in connection with the Plans. STATE OR MUNICIPAL LEASE OBLIGATIONS Pursuant to Board of Directors or Trustees resolutions, the Funds may invest without limit in state or municipal leases and participation interests therein. Municipal leases are obligations issued by state and local governments or authorities to finance the acquisition of equipment and facilities such as fire, sanitation or police vehicles or telecommunications equipment, buildings or other capital assets. Municipal lease obligations, except in certain circumstances, are considered illiquid by the staff of the Securities and Exchange Commission. Municipal lease obligations held by the Funds will be treated as illiquid unless they are determined to be liquid pursuant to guidelines established by the Funds' Board of Directors or Trustees. Under these guidelines, the Adviser will consider factors including, but not limited to (1) whether the lease can be cancelled, (2) what assurance there is that the assets represented by the lease can be sold, (3) the municipality's general credit strength (e.g., its debt, administrative, economic and financial characteristics), (4) the likelihood that the municipality will discontinue appropriating funding for the leased property because the property is no longer deemed essential to the operations of the municipality (e.g., the potential for an "event of nonappropriation"), and (5) the legal recourse in the event of failure to appropriate. Additionally, the lack of an established trading market for municipal lease obligations may make the determination of fair market value more difficult. Although each Fund may invest up to 15% of its total assets in illiquid securities, the Funds have no intention of investing more than 5% of its total assets in such securities, including illiquid municipal lease obligations. Dear Shareholder: All economic signs point to the fact that the Federal Reserve, through monetary policy, has affected the "soft landing" for the economy. Economic indicators continue to confirm our belief that inflation is currently under control and should remain so into 1996. In July, the Federal Open Market Committee (FOMC), the rate-setting group of the Federal Reserve Board, lowered the Federal Funds rate by .25%. Even though the rate cut was not significant, it was the Fed's first rate cut in three years. Because these funds are leveraged, the effects of interest rate changes are magnified in the funds' net asset value per common share. The dividend for each of the Voyageur Municipal Income Funds remained stable for this reporting period. The market price of the fund's common shares continued to trade at a discount to net asset value. The chart below shows the net asset value, market price and comparative discount of market price to net asset value for common shares as of 9/30/95.
NET ASSET MARKET VOYAGEUR FUND VALUE PRICE DISCOUNT - ------------- ----- ------ -------- Voyageur Minnesota Municipal Income Fund, Inc. $14.46 $13.38 7.47% Voyageur Minnesota Municipal Income Fund II, Inc. 13.50 11.50 14.81 Voyageur Minnesota Municipal Income Fund III, Inc. 12.56 10.75 14.41 Voyageur Arizona Municipal Income Fund, Inc. 13.65 12.13 11.14 Voyageur Florida Insured Municipal Income Fund 13.66 11.75 13.98 Voyageur Colorado Insured Municipal Income Fund, Inc. 13.57 12.13 10.61
The Fund managers, Elizabeth H. Howell (Minnesota Funds), Andrew M. McCullagh (Arizona and Colorado), and Steven P. Eldredge (Florida), emphasize quality and consistently seek strong call protection in their portfolios. Since my last letter to you, Steven P. Eldredge, Senior Tax Exempt Portfolio Manager, who joined Voyageur in January, has assumed the responsibility of managing the Voyageur Florida Insured Municipal Income Fund, as well as several other Voyageur tax free funds. Thank you for investing in Voyageur. Sincerely, John G. Taft President Voyageur Minnesota Municipal Income Fund, Inc. Voyageur Minnesota Municipal Income Fund II, Inc. Voyageur Minnesota Municipal Income Fund III, Inc. Voyageur Arizona Municipal Income Fund, Inc. Voyageur Florida Insured Municipal Income Fund Voyageur Colorado Insured Municipal Income Fund, Inc. FACTORS AFFECTING FUND PERFORMANCE Bonds have staged a remarkable rally so far this year. The gains generated in 1995 have more than compensated for the losses experienced by investors in last year's bear market. The yield on the bellwether 30-year Treasury bond has declined from 7.86% since January 1 to 6.50% as of September 30, 1995. Municipal bond investors, too, have enjoyed double-digit total returns so far this year, but returns have generally lagged the taxable Treasury bond market. The key reason for this is investor concern over radical tax reform proposals under discussion in Washington. We believe these concerns are overstated and, in fact, municipals offer tremendous value compared to other fixed income investments. The economy has provided an ideal backdrop for declining bond yields this year. Growth has slowed from the 1994 pace and inflation has remained under control. We anticipate consumer inflation will be at 3% for the year. Investors are increasingly comfortable that the U.S. economy can grow at a non-inflationary pace in the coming quarters. The Fed appears to have successfully engineered a "soft landing." We are constructive on the bond market both near term and longer term and believe low inflation (2-3%) will pave the way for interest rates to trend lower through the balance of the decade. Some specific information about each of the Voyageur Municipal Income Funds is discussed below. Financial information about each Fund is presented later in this report. THE FUNDS THE VOYAGEUR MINNESOTA MUNICIPAL INCOME FUND, INC. The Fund's total return (based on net asset value) at the end of the reporting period was 5.09%, while the year-to-date total return was 17.08%.* This closed end fund has performed well so far this year based on the continuing bond market rally that began in November 1994. Credit quality on the Fund has remained high, reflecting Voyageur's commitment to investment grade bonds. The average credit quality rating on the Fund is A1/A+. THE VOYAGEUR MINNESOTA MUNICIPAL INCOME FUND II, INC. The Fund's total return (based on net asset value) at the end of the reporting period was 5.99%, while the year-to-date total return was 21.52%.* This closed end fund has performed very well so far this year based on the continuing bond market rally that began in November 1994. Credit quality on the Fund has remained high, reflecting Voyageur's commitment to investment grade bonds. The average credit quality rating on the Fund is Aa/AA. THE VOYAGEUR MINNESOTA MUNICIPAL INCOME FUND III, INC. The Fund's total return (based on net asset value) at the end of the reporting period was 5.96 %, while the year-to-date total return was 20.76%.* This closed end fund has performed very well so far this year based on the continuing bond market rally that began in November 1994. Credit quality on the Fund has remained high, reflecting Voyageur's commitment to investment grade bonds. The average credit quality rating on the Fund is Aa/AA. The duration on each of these Minnesota portfolios is long, reflecting the long-term nature of the bonds in the Funds. Throughout the year, we have emphasized bonds that have a strong call protection and will continue to stress this in upcoming months. Superior call protection fosters above average total returns in a bull market and allows each Fund to retain a steady flow of coupon income. Dividends on the three Minnesota funds have remained steady throughout the period. THE VOYAGEUR ARIZONA MUNICIPAL INCOME FUND, INC. The Fund's total return (based on net asset value) at the end of the reporting period was 6.07 %, while the year-to-date total return was 22.39%.* The Fund's duration was 9.7 years, the stated years to maturity was 19.5 years, and the years to effective maturity was 15.9 years at the end of period. It has taken approximately nine months to get these numbers where they now stand, and we shall continue to aggressively improve call protection. Credit quality on the Fund has remained high, reflecting Voyageur's commitment to quality bonds. The average credit quality rating on the Fund is Aaa/AAA. Going forward, we will continue to improve call protection and yield. We will sell out of lower trade yield bonds and buys bonds at a higher trade yield. New municipal issues are expected to be off approximately 10 to 15% compared to last year's levels, and we also anticipate increased scarcity on Arizona primary issues in the competitive and negotiated markets. THE VOYAGEUR FLORIDA INSURED MUNICIPAL INCOME FUND The Fund's total return (based on net asset value) at the end of the reporting period was 6.53%, while the year-to-date total return was 22.45%.* The municipal yield curve has flattened beyond the 20 year point. This allows shortening of the portfolio without giving up income. In light of the current absolute level of interest rates, shortening the portfolio will protect the portfolio in the event that interest rates should unexpectedly rise. Voyageur continues to emphasize call features. This fosters competitive investment performance in a bullish market and allows the Fund to retain the portfolio's current level of income. Ongoing, we will continue to emphasize income over performance characteristics while continuing to improve and lengthen the portfolio's call features. THE VOYAGEUR COLORADO INSURED MUNICIPAL INCOME FUND, INC. The Fund's total return (based on net asset value) at the end of the reporting period was 5.57%, while the year-to-date total return was 18.25%.* The Fund's duration was 8.4 years, the stated years to maturity was 19.4 years, and the years to effective maturity was 13.17 years at the end of the period. We shall continue to aggressively improve call protection and emphasize call features. The dividend on the Fund remained stable this period. Ongoing, we will continue to restructure the portfolio by improving call protection and yield. We will sell out of lower trade yield bonds in order to buy bonds at a higher trade yield. New municipal issues are expected to be off approximately 10 to 15% compared to last year's levels, and we also anticipate increased scarcity in Colorado primary issues in the competitive and negotiated markets. *Data represents past performance which is no guarantee of future results. Investment return and principal value will fluctuate. Shares sold on the open market may be worth more or less than original cost.
THE VOYAGEUR FUNDS STATEMENTS OF ASSETS AND LIABILITIES (UNAUDITED) SEPTEMBER 30, 1995 - --------------------------------------------------------------------------------------------------------------- VOYAGEUR MINNESOTA MUNICIPAL INCOME FUND, INC. ---------- ASSETS Investments in securities (note 2) (identified cost: $54,852,688, $155,359,399, $37,381,623, $64,221,598, $52,234,854 and $105,342,202, respectively)............................................. $56,595,421 Cash in bank on demand deposit........................................................... 52 Receivable for investment securities sold ................................................ -- Accrued interest receivable............................................................... 1,063,255 ------------ Total assets............................................................................ 57,658,728 ------------ LIABILITIES Disbursements in excess of cash in bank on demand deposit................................. -- Payable for investment securities purchased............................................... -- Dividends payable to preferred shareholders............................................... 59,836 Administration fee payable................................................................ 8,582 Other accrued expenses.................................................................... 76,803 ------------- Total liabilities....................................................................... 145,221 ------------- NET ASSETS APPLICABLE TO OUTSTANDING CAPITAL SHARES..................................... $57,513,507 =========== Represented by: Preferred shares (note 5)............................................................... $20,000,000 Common shares: Par value............................................................................. 25,947 Additional paid-in capital............................................................ 35,452,118 ------------ 55,478,065 Undistributed net investment income..................................................... 321,815 Accumulated net realized loss from investments.......................................... (29,106) Unrealized net appreciation (depreciation) of investments............................... 1,742,733 ------------- TOTAL REPRESENTING NET ASSETS APPLICABLE TO OUTSTANDING CAPITAL SHARES...................................................................... $57,513,507 =========== TOTAL REPRESENTING NET ASSETS APPLICABLE TO OUTSTANDING COMMON SHARES....................................................................... $37,513,507 =========== NET ASSET VALUE PER COMMON SHARE: (2,594,700, 7,252,200, 1,837,200, 2,982,200, 2,422,200 and 4,837,100 common shares issued and outstanding, respectively)........................... $14.46 ====== See accompanying notes to financial statements.
THE VOYAGEUR FUNDS STATEMENTS OF ASSETS AND LIABILITIES (UNAUDITED)(CONTINUED) SEPTEMBER 30, 1995 - ------------------------------------------------------------------------------------------------------------------- VOYAGEUR VOYAGEUR VOYAGEUR VOYAGEUR VOYAGEUR FLORIDA COLORADO MINNESOTA MINNESOTA ARIZONA INSURED INSURED MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL INCOME INCOME INCOME INCOME INCOME FUND II, INC. FUND III, INC. FUND, INC. FUND FUND, INC. ---------------- -------------- ---------- -------------- ---------- $155,819,030 $37,507,345 $64,780,392 $52,259,675 $104,050,818 39,240 80 179,544 -- -- 2,434,202 -- -- -- -- 2,503,507 680,193 935,269 1,064,547 1,978,007 ------------ ----------- ----------- ----------- ------------ 160,795,979 38,187,618 65,895,205 53,324,222 106,028,825 ------------ ----------- ----------- ----------- ------------ -- -- -- 75,656 176,777 2,520,719 -- -- -- -- 174,900 44,646 72,398 58,224 115,372 19,528 4,710 8,121 6,556 13,051 183,026 71,519 102,108 95,814 106,353 ------------ ----------- ----------- ----------- ------------ 2,898,173 120,875 182,627 236,250 411,553 ------------ ----------- ----------- ----------- ------------ $157,897,806 $38,066,743 $65,712,578 $53,087,972 $105,617,272 ============ =========== =========== =========== ============ $ 60,000,000 $15,000,000 $25,000,000 $20,000,000 $40,000,000 72,522 18,372 29,822 24,222 48,371 99,637,602 25,228,358 40,809,143 33,337,167 67,189,739 ------------ ----------- ----------- ----------- ------------ 159,710,124 40,246,730 65,838,965 53,361,389 107,238,110 419,658 76,999 211,989 192,489 295,731 (2,691,607) (2,382,708) (897,170) (490,727) (625,185) 459,631 125,722 558,794 24,821 (1,291,384) ------------ ----------- ----------- ----------- ------------ $157,897,806 $38,066,743 $65,712,578 $53,087,972 $105,617,272 ============ =========== =========== =========== ============ $97,897,806 $23,066,743 $40,712,578 $33,087,972 $ 65,617,272 ============= =========== =========== =========== ============= $13.50 $12.56 $13.65 $13.66 $13.57 ====== ====== ====== ====== ====== See accompanying notes to financial statements.
THE VOYAGEUR FUNDS STATEMENTS OF OPERATIONS (UNAUDITED) SIX MONTHS ENDED SEPTEMBER 30, 1995 - ------------------------------------------------------------------------------------------------------------------- VOYAGEUR MINNESOTA MUNICIPAL INCOME FUND, INC. Investment income: Interest . ............................................................................. $1,718,505 -------------- Expenses (note 4): Investment advisory and management fees................................................. 115,079 Administration fees..................................................................... 50,137 Custodian and transfer agent fees....................................................... 15,024 Audit and legal fees.................................................................... 11,167 Remarketing agent fees.................................................................. 25,068 Other expenses.......................................................................... 22,741 -------------- Total expenses....................................................................... 239,216 -------------- Investment income - net........................................................... 1,479,289 -------------- Realized and unrealized gain (loss) on investments: Realized gain (loss) on investments - net (note 3)...................................... 130,892 Change in unrealized appreciation or depreciation of investments - net.................. 656,840 -------------- Net gain on investments.............................................................. 787,732 -------------- NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS.............................. $ 2,267,021 ============== See accompanying notes to financial statements.
STATEMENTS OF OPERATIONS (UNAUDITED) (CONTINUED) SIX MONTHS ENDED SEPTEMBER 30, 1995 - ------------------------------------------------------------------------------------------------------------------- Voyageur Voyageur Voyageur Voyageur Voyageur Florida Colorado Minnesota Minnesota Arizona Insured Insured Municipal Municipal Municipal Municipal Municipal Income Income Income Income Income Fund II, Inc. Fund III, Inc. Fund, Inc. Fund Fund, Inc. ------------ ------------- ---------- ----------- ---------- $4,564,553 $1,102,968 $1,866,160 $1,501,685 $2,852,271 ----------- ---------- ----------- ---------- ---------- 315,156 76,011 130,914 105,446 210,846 118,185 28,505 49,092 39,542 79,064 27,229 7,535 10,080 10,083 13,304 22,680 8,663 13,087 11,454 18,200 75,205 18,801 31,336 25,068 50,137 40,352 22,006 35,099 24,614 39,571 ----------- ---------- ----------- ---------- ---------- 598,807 161,521 269,608 216,207 411,122 ----------- ---------- ----------- ---------- ---------- 3,965,746 941,447 1,596,552 1,285,478 2,441,149 ----------- ---------- ----------- ---------- ---------- (158,602) (410,802) (45,485) (13,160) (319,469) 3,021,200 1,101,629 1,259,837 1,160,017 2,190,923 ----------- ---------- ----------- ---------- ---------- 2,862,598 690,827 1,214,352 1,146,857 1,871,454 ----------- ---------- ----------- ---------- ---------- $6,828,344 $1,632,274 $2,810,904 $2,432,335 $4,312,603 ============ ========== ========== ========== ========== See accompanying notes to financial statements.
THE VOYAGEUR FUNDS STATEMENTS OF CHANGES IN NET ASSETS (UNAUDITED) - ------------------------------------------------------------------------------------------------------------------- VOYAGEUR VOYAGEUR MINNESOTA MINNESOTA MUNICIPAL MUNICIPAL INCOME INCOME FUND, INC. FUND II, INC. -------------------------- ------------------------- SIX MONTHS SIX MONTHS ENDED YEAR ENDED YEAR SEPTEMBER 30, ENDED SEPTEMBER 30, ENDED 1995 MARCH 31, 1995 MARCH 31, (UNAUDITED) 1995 (UNAUDITED) 1995 ------------- ------------ ----------- ---------- Operations: Investment income - net............................ $1,479,289 $3,134,823 $3,965,746 $8,065,161 Realized gain (loss) on investments - net.......... 130,892 (84,971) (158,602) (2,497,147) Change in unrealized appreciation or depreciation of investments - net................ 656,840 967,947 3,021,200 5,289,520 ----------- ----------- ------------ ------------ Net increase in net assets resulting from operations.................................. 2,267,021 4,017,799 6,828,344 10,857,534 ----------- ----------- ------------ ------------ Distributions to: Common shareholders from investment income - net .. (1,206,536) (2,413,073) (2,882,751) (5,983,068) Preferred shareholders from investment income - net (427,504) (684,186) (1,187,040) (2,061,072) Common shareholders from realized capital gains - net -- (61,368) -- -- Preferred shareholders from realized capital gains - net -- (12,894) -- -- ----------- ----------- ------------ ------------ Total distributions........................... (1,634,040) (3,171,521) (4,069,791) (8,044,140) ----------- ----------- ------------ ------------ Capital share transactions (note 5): Final adjustment of offering costs relating to initial public offering.............. -- -- -- -- ----------- ----------- ------------ ------------ Total increase in net assets.................. 632,981 846,278 2,758,553 2,813,394 Net assets at beginning of period.................. 56,880,526 56,034,248 155,139,253 152,325,859 ----------- ----------- ------------ ------------ Net assets at end of period (including undistributed net investment income of $321,815 and $476,566, $419,658 and $523,703, $76,999 and $119,531, $211,989 and $152,133, $192,489 and $142,773 and $295,731 and $331,186, respectively)......... $57,513,507 $56,880,526 $157,897,806 $155,139,253 =========== ============ ============ ============ See accompanying notes to financial statements.
THE VOYAGEUR FUNDS STATEMENTS OF CHANGES IN NET ASSETS (UNAUDITED) (CONTINUED) - ------------------------------------------------------------------------------------------------------------------- VOYAGEUR VOYAGEUR VOYAGEUR VOYAGEUR FLORIDA COLORADO MINNESOTA ARIZONA INSURED INSURED MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL INCOME INCOME INCOME INCOME FUND III, INC. FUND, INC. FUND FUND INC. - ----------------------- ------------------------- ---------------------------- -------------------------- Six Months Six Months Six Months Six Months ended Year ended Year ended Year ended Year September 30, ended September 30, ended September 30, ended September 30, ended 1995 March 31, 1995 March 31, 1995 March 31, 1995 March 31, (Unaudited) 1995 (Unaudited) 1995 (Unaudited) 1995 (Unaudited) 1995 - ---------- ------------ ------------ ----------- ------------ ----------- ------------ ----------- $941,447 $1,939,177 $1,596,552 $3,215,680 $1,285,478 $2,587,318 $ 2,441,149 $ 4,914,890 (410,802) (1,952,146) (45,485) (792,377) (13,160) (397,089) (319,469) (305,716) 1,101,629 2,459,010 1,259,837 2,483,456 1,160,017 2,076,303 2,190,923 2,419,647 ---------- ------------ ------------ ------------ ------------ ----------- ------------ ------------ 1,632,274 2,446,041 2,810,904 4,906,759 2,432,335 4,266,532 4,312,603 7,028,821 ---------- ------------ ------------ ------------- ------------ ----------- ------------ ------------ (661,392) (1,331,970) (1,084,776) (2,329,844) (871,992) (1,871,152) (1,686,940) (3,658,059) (322,587) (505,500) (451,920) (841,962) (363,770) (693,328) (789,664) (1,345,648) -- -- -- (140,052) -- -- -- (128,941) -- -- -- (37,501) -- -- -- (37,780) - ----------- ----------- ----------- ----------- ----------- ----------- ------------ ------------ (983,979) (1,837,470) (1,536,696) (3,349,359) (1,235,762) (2,564,480) (2,476,604) (5,170,428) - ----------- ----------- ----------- ----------- ----------- ----------- ------------ ------------ -- 25,000 -- -- -- -- -- -- - ----------- ----------- ----------- ----------- ----------- ----------- ------------ ------------ 648,295 633,571 1,274,208 1,557,400 1,196,573 1,702,052 1,835,999 1,858,393 37,418,448 36,784,877 64,438,370 62,880,970 51,891,399 50,189,347 103,781,273 101,922,880 - ----------- ----------- ----------- ----------- ----------- ----------- ------------ ------------ $38,066,743 $37,418,448 $65,712,578 $64,438,370 $53,087,972 $51,891,399 $105,617,272 $103,781,273 =========== =========== =========== =========== =========== =========== ============ ============ See accompanying notes to financial statements.
THE VOYAGEUR FUNDS Notes to Financial Statements (UNAUDITED) - -------------------------------------------------------------------------------- (1) ORGANIZATION Voyageur Minnesota Municipal Income Fund, Inc. ("Minnesota Municipal"); Voyageur Minnesota Municipal Income Fund II, Inc. ("Minnesota Municipal II"); Voyageur Minnesota Municipal Income Fund III, Inc. ("Minnesota Municipal III"); Voyageur Arizona Municipal Income Fund, Inc. ("Arizona Municipal"); Voyageur Florida Insured Municipal Income Fund ("Florida Insured Municipal"); and Voyageur Colorado Insured Municipal Income Fund, Inc. ("Colorado Insured Municipal") (collectively the "Funds") are registered under the Investment Company Act of 1940 (as amended) ("1940 Act") as closed-end, diversified management investment companies (except Minnesota Municipal, Minnesota Municipal III and Colorado Insured Municipal, which are non-diversified management investment companies). Shares of the Funds are listed on the American Stock Exchange. (2) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The significant accounting policies followed by the Funds are as follows: INVESTMENTS IN SECURITIES The values of fixed-income securities are determined using pricing services or prices quoted by independent brokers. When market quotations are not readily available, securities are valued at fair value according to methods selected in good faith by the Board of Directors or Trustees. Short-term securities with maturities less than 60 days when acquired, or which subsequently are within 60 days of maturity, are valued at amortized cost which approximates market value. Security transactions are accounted for on the date securities are purchased or sold. Realized gains and losses are calculated on the identified cost basis. Interest income, including level-yield amortization of premium and original issue discount, is accrued daily. The Funds concentrate their investments in their respective states. Therefore, there may be more credit risk related to the economic conditions of a particular state than a portfolio with broader geographical diversification. FEDERAL TAXES The Funds intend to comply with the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute substantially all of their taxable net investment income and net realized capital gains, if any, to shareholders in amounts that will avoid or minimize federal income or excise taxes. Net investment income and net realized gains (losses) may differ for financial statement and tax purposes primarily because of losses deferred for tax purposes due to "wash sale" transactions. The character of distributions made during the year from net investment income or net realized gains may differ from their ultimate characterization for federal income tax purposes. Furthermore, due to the timing of dividend distributions, the fiscal year in which amounts are distributed may differ from the year that the income or realized gains (losses) were recorded by the Funds. DISTRIBUTIONS TO SHAREHOLDERS The Funds intend to pay monthly dividends from net investment income. Net realized capital gains, if any, will be distributed on an annual basis. These distributions are recorded as of the close of business on the ex-dividend date. Such distributions are payable in cash or, pursuant to the Funds' Dividend Reinvestment Plans, reinvested in additional common shares of the Funds. Under the Plans, shares of the Funds will be purchased in the open market. (3) INVESTMENT SECURITIES TRANSACTIONS Purchases of securities and proceeds from sales, other than investments in short-term securities, for Minnesota Municipal, Minnesota Municipal II, Minnesota Municipal III, Arizona Municipal, Florida Insured Municipal and Colorado Insured Municipal were $3,118,862 and $3,419,930, $6,103,057 and $6,224,818, $6,911,711 and $7,017,313, $7,429,886 and $6,980,022, $2,396,173 and $2,436,072, and $23,344,174 and $22,506,043, respectively, for the six months ended September 30, 1995. (4) FEES AND EXPENSES The Funds have entered into the following agreements with Voyager Fund Managers, Inc. (the "Adviser") and with Mitchell Hutchins Asset Management Inc. (Middlesex Administrators L.P. on Colorado Insured Municipal only) (the "Administrators"). The investment advisory agreements provide the Adviser with a monthly investment management fee computed at an annual rate of .40% of each Fund's average daily net assets, including assets attributable to any preferred stock that may be outstanding. For its fee, the Adviser provides investment advice and, in general, conducts the management and investments of the Funds. The administration agreements provide the Administrators with a monthly fee computed at an annual rate of .15% of each Fund's average daily net assets, including assets attributable to any preferred stock that may be outstanding. Certain Funds have minimum annual fees payable to the Administrators. Minnesota Municipal paid the minimum fee for the six months ended September 30, 1995. For their fees, the Administrators provide certain administrative, clerical and recordkeeping services to the Funds. In addition to advisory and administrative fees, the Funds are responsible for paying most of the other operating expenses, including outside directors' or trustees' fees and expenses, custodian fees, registration fees, printing of shareholder reports, transfer agent fees and expenses, legal, auditing and accounting services, insurance, interest and other miscellaneous expenses. (5) CAPITAL SHARES TRANSACTIONS Pursuant to their articles of incorporation, Minnesota Municipal, Minnesota Municipal II, Minnesota Municipal III, Arizona Municipal and Colorado Insured Municipal each have 200 million shares of $0.01 par value common shares authorized. Florida Insured Municipal has been authorized to issue an unlimited amount of $0.01 par value common shares. The common shares outstanding at September 30, 1995 were 2,594,700 for Minnesota Municipal, 7,252,200 for Minnesota Municipal II, 1,837,200 for Minnesota Municipal III, 2,982,200 for Arizona Municipal, 2,422,200 for Florida Insured Municipal and 4,837,100 for Colorado Insured Municipal. The Adviser owns 7,200 shares Minnesota Municipal III. For the six months ended September 30, 1995 and for the year ended March 31, 1995, there were no transactions in common shares for the Funds. The Funds each have 1 million shares of $0.01 par value preferred shares authorized, except for Florida Insured Municipal which has an unlimited amount of $0.01 par value preferred shares authorized. Under resolutions adopted by the Board of Directors or Trustees, Minnesota Municipal is allowed to issue up to 400 preferred shares, of which the entire amount was issued on August 6, 1992. On May 14, 1993, Minnesota Municipal II, Arizona Municipal and Florida Insured Municipal issued 1,200, 500 and 400 preferred shares, respectively. On December 10, 1993, Minnesota Municipal III issued 300 preferred shares and on September 23, 1993, Colorado Insured Municipal issued 800 preferred shares. The preferred shares have a liquidation preference of $50,000 per share plus an amount equal to accumulated but unpaid dividends. Dividends for the outstanding preferred shares of each Fund are cumulative at a rate established at the initial public offering and are typically reset every 28 days based on the results of an auction. Dividend rates (adjusted for capital gains distributions) ranged from 3.75% to 4.35% on Minnesota Municipal, from 3.75% to 4.25% on Minnesota Municipal II, from 3.80% to 4.25% on Minnesota Municipal III, from 3.65% to 4.25% on Arizona Municipal, from 3.74% to 4.25% on Florida Insured Municipal and from 2.40% to 4.95% on Colorado Insured Municipal during the six months ended September 30, 1995. Smith Barney Inc.and Merrill Lynch Pierce, Fenner & Smith Inc. (on Colorado Insured Municipal only), as the remarketing agents, receive an annual fee from each of the Funds of .25% of the average amount of preferred stock outstanding. Under the 1940 Act, the Funds may not declare dividends or make other distributions on common shares or purchase any such shares if, at the time of the declaration, distribution or purchase, asset coverage with respect to the outstanding preferred stock is less than 200%. Each of the Fund's preferred shares are redeemable at the option of the Fund, in whole or in part, on any dividend payment date at $50,000 per share plus any accumulated but unpaid dividends whether or not declared. The preferred shares are also subject to mandatory redemption at $50,000 per share plus any accumulated but unpaid dividends, whether or not declared, if certain requirements relating to the composition of the assets and liabilities of each of the Funds is not satisfied. The holders of preferred shares have voting rights equal to the holders of common shares (one vote per share) and will vote together with holders of common shares as a single class. However, holders of preferred shares are also entitled to elect two of each Fund's directors or trustees. In addition, the 1940 Act requires that along with approval by shareholders that might otherwise be required, the approval of the holders of a majority of any outstanding preferred shares, voting separately as a class would be required to (a) adopt any plan of reorganization that would adversely affect the preferred shares, and (b) take any action requiring a vote of security holders pursuant to Section 13(a) of the 1940 Act, including, among other things, changes in each of the Fund's subclassification as a closed-end investment company or changes in their fundamental investment restrictions. (6) CAPITAL LOSS CARRYFORWARDS For federal income tax purposes, Minnesota Municipal, Minnesota Municipal II, Minnesota Municipal III, Arizona Municipal, Florida Insured Municipal and Colorado Insured Municipal had capital loss carryforwards of $159,998, $2,493,771, $1,966,961, $851,685, $477,567 and $305,716, respectively, at March 31, 1995, that will expire in 2002 through 2004 if not offset by subsequent capital gains. It is unlikely the Board of Directors or Trustees will authorize a distribution of any net realized capital gains until the available capital loss carryforwards have been offset or expire. (7) FINANCIAL HIGHLIGHTS (UNAUDITED)(CONTINUED) Per share data (rounded to the nearest cent) for a share of common stock outstanding and selected information for each period are as follows:
MINNESOTA MUNICIPAL ------------------- Six Months Period from ended Year Year May 1, September 30, ended ended 1992* to 1995 March 31, March 31, March 31, Net asset value: (Unaudited) 1995 1994 1993** ------- ------- ------- ------- Beginning of period................................. $14.21 $13.89 $14.67 $13.95 ------- ------- ------- ------- Operations: Investment income - net............................. 0.57 1.21 1.20 0.90 Realized and unrealized gain (loss) on investments - net 0.31 0.34 (0.68) 1.00 ------- ------- ------- ------- Total from operations............................. 0.88 1.55 0.52 1.90 ------- ------- ------- ------- Distributions to: Common shareholders from investment income - net.... (0.47) (0.93) (0.93) (0.70) Preferred shareholders from investment income - net. (0.16) (0.27) (0.18) (0.12) Common shareholders from realized capital gains - net -- (0.02) (0.16) (0.06) Preferred shareholders from realized capital gains - net -- (0.01) (0.03) (0.02) ------- ------- ------- ------- Total distributions............................... (0.63) (1.23) (1.30) (0.90) ------- ------- ------- ------- Capital share transactions: Capital charge with respect to issuance of shares...... -- -- -- (0.28) ------- ------- ------- ------- Net asset value: End of period....................................... $14.46 $14.21 $13.89 $14.67 ====== ====== ====== ====== Market value: End of period....................................... $13.38 $14.50 $15.63 $16.00 ====== ====== ====== ====== Total investment return: Market value (a).................................... (4.70)% (0.71)% 4.28% 20.31% Net asset value (b)................................. 5.09 % 9.72 % 1.63% 10.91% Net assets applicable to outstanding capital shares at end of period (000's omitted).................... $57,514 $56,881 $56,034 $58,075 Ratios/Supplemental Data: Ratio of expenses to average net assets (c)......... 0.83%(d) 0.85% 0.78% 0.88%(d) Ratio of investment income - net to average net assets (c)............................ 5.16%(d) 5.66% 5.22% 4.92%(d) Portfolio turnover rate (excluding short-term securities)............................ 6% 13% 11% 43% Value of preferred shares outstanding (000's omitted) $20,000 $20,000 $20,000 $20,000 Net asset coverage per share of preferred shares, end of period............................. $143,784 $142,201 $140,086 $145,188 Liquidation value per share of preferred shares (e). $50,000 $50,000 $50,000 $50,000 _____________________________ * Commencement of investment operations ** Initial period See accompanying notes to financial highlights on page xx.
FINANCIAL HIGHLIGHTS (UNAUDITED)(CONTINUED) - -------------------------------------------------------------------------------------------------------------------- MINNESOTA MUNICIPAL II ---------------------- Six Months Period from ended Year Year February 26, September 30, ended ended 1993* to 1995 March 31, March 31, March 31, Net asset value: (Unaudited) 1995 1994 1993** ----------- ------------------------------------ Beginning of period................................. $13.12 $12.73 $13.84 $13.95 ------- ------ ------ ------ Operations: Investment income - net............................. 0.55 1.11 0.98 0.03 Realized and unrealized gain (loss) on investments - net 0.39 0.39 (0.96) (0.11) ------- ------ ------ ------ Total from operations............................. 0.94 1.50 0.02 (0.08) ------- ------ ------ ------ Distributions to: Common shareholders from investment income - net.... (0.40) (0.83) (0.76) -- Preferred shareholders from investment income - net. (0.16) (0.28) (0.18) -- Common shareholders from realized capital gains - net -- -- (0.02) -- Preferred shareholders from realized capital gains - net -- -- (0.00) -- ------- ------ ------ ------ Total distributions............................... (0.56) (1.11) (0.96) -- ------- ------ ------ ------ Capital share transactions: Capital charge with respect to issuance of shares...... -- -- (0.17) (0.03) ------- ------ ------ ------ Net asset value: End of period....................................... $13.50 $13.12 $12.73 $13.84 ====== ====== ====== ====== Market value: End of period....................................... $11.50 $12.38 $14.63 $15.13 ====== ====== ====== ====== Total investment return: Market value (a).................................... (3.94)% (9.59)% 1.71% 8.42% Net asset value (b)................................. 5.99% 10.16% (2.93)% (0.79)% Net assets applicable to outstanding capital shares at end of period (000's omitted).................... $157,898 $155,139 $152,326 $100,392 Ratios/Supplemental Data: Ratio of expenses to average net assets (c)......... 0.76% (d) 0.77% 0.76% 0.83%(d) Ratio of investment income - net to average net assets (c)............................ 5.05% (d) 5.39% 4.54% 2.29%(d) Portfolio turnover rate (excluding short-term securities)............................ 4% 32% 27% 11% Value of preferred shares outstanding (000's omitted) $60,000 $60,000 $60,000 -- Net asset coverage per share of preferred shares, end of period............................. $131,582 $129,283 $126,938 -- Liquidation value per share of preferred shares (e). $50,000 $50,000 $50,000 -- _____________________________ * Commencement of investment operations ** Initial period See accompanying notes to financial highlights on page xx.
FINANCIAL HIGHLIGHTS (UNAUDITED)(CONTINUED) - ----------------------------------------------------------------------------------------------------------------- MINNESOTA MUNICIPAL III ----------------------- Six Months Period from ended Year October 29, September 30, ended 1993* to 1995 March 31, March 31, (Unaudited) 1995 1994** ----------- ------------ ------------ Net asset value: Beginning of period..................................... $12.20 $11.86 $14.03 ------ ------ ------ Operations: Investment income - net................................. 0.51 1.06 0.32 Realized and unrealized gain (loss) on investments - net 0.38 0.28 (1.88) ------ ------ ------ Total from operations................................. 0.89 1.34 (1.56) ------ ------ ------ Distributions to: Common shareholders from investment income - net........ (0.36) (0.73) (0.25) Preferred shareholders from investment income - net..... (0.17) (0.28) (0.06) ------ ------ ------ Total distributions................................. (0.53) (1.01) (0.31) ------ ------ ------ Capital share transactions: Capital charge/adjustment with respect to issuance of shares -- 0.01 (0.30) ------ ------ ------ Net asset value: End of period........................................... $12.56 $12.20 $11.86 ======= ====== ====== Market value: End of period........................................... $10.75 $11.25 $14.00 ======= ====== ====== Total investment return: Market value (a)........................................ (1.38)% (14.27)% 1.53% Net asset value (b)..................................... 5.96% 9.55 % (13.85)% Net assets applicable to outstanding capital shares at end of period (000's omitted)........................ $38,067 $37,418 $36,785 Ratios/Supplemental Data: Ratio of expenses to average net assets (c)............. 0.85% (d) 0.82% 0.90%(d) Ratio of investment income - net to average net assets (c)................................ 4.95% (d) 5.37% 3.95%(d) Portfolio turnover rate (excluding short-term securities)................................ 19% 47% 21% Value of preferred shares outstanding (000's omitted)... $15,000 $15,000 $15,000 Net asset coverage per share of preferred shares, end of period................................. $126,889 $124,728 $122,616 Liquidation value per share of preferred shares (e)..... $50,000 $50,000 $50,000 _____________________________ * Commencement of investment operations ** Initial period See accompanying notes to financial highlights on page xx.
FINANCIAL HIGHLIGHTS (UNAUDITED)(CONTINUED) - -------------------------------------------------------------------------------------------------------------------- ARIZONA MUNICIPAL ----------------- Six Months Period from ended Year Year February 26, September 30, ended ended 1993* to 1995 March 31, March 31, March 31, (Unaudited) 1995 1994 1993** ------------ ------------- ------------- ---------- Net asset value: Beginning of period................................... $13.22 $12.70 $13.77 $13.95 ------ ------ ------ ------ Operations: Investment income - net............................... 0.53 1.08 0.95 0.01 Realized and unrealized gain (loss) on investments - net 0.41 0.56 (0.79) (0.13) ------ ------ ------ ------ Total from operations............................... 0.94 1.64 0.16 (0.12) ------ ------ ------ ------ Distributions to: Common shareholders from investment income - net...... (0.36) (0.78) (0.75) -- Preferred shareholders from investment income - net... (0.15) (0.28) (0.18) -- Common shareholders from realized capital gains - net -- (0.05) (0.09) -- Preferred shareholders from realized capital gains - net -- (0.01) (0.02) -- ------ ------ ------ ------ Total distributions................................. (0.51) (1.12) (1.04) -- ------ ------ ------ ------ Capital share transactions: Capital charge with respect to issuance of shares....... -- -- (0.19) (0.06) ------ ------ ------ ------ Net asset value: End of period......................................... $13.65 $13.22 $12.70 $13.77 ======= ======= ====== ====== Market value: End of period......................................... $12.13 $12.13 $13.88 $15.13 ======= ======= ====== ====== Total investment return: Market value (a)...................................... 3.01% (6.43)% (2.91)% 8.42 % Net asset value (b)................................... 6.07% 11.29 % (2.20)% (1.29)% Net assets applicable to outstanding capital shares at end of period (000's omitted)...................... $65,713 $64,438 $62,881 $41,063 Ratios/Supplemental Data: Ratio of expenses to average net assets (c)........... 0.83% (d) 0.79% 0.82% 0.90%(d) Ratio of investment income - net to average net assets (c).............................. 4.89% (d) 5.19% 4.41% 1.29%(d) Portfolio turnover rate (excluding short-term securities).............................. 11% 18% 15% 0% Value of preferred shares outstanding (000's omitted). $25,000 $25,000 $25,000 -- Net asset coverage per share of preferred shares, end of period............................... $131,425 $128,877 $125,762 -- Liquidation value per share of preferred shares (e)... $50,000 $50,000 $50,000 -- _____________________________ * Commencement of investment operations ** Initial period See accompanying notes to financial highlights on page xx.
FINANCIAL HIGHLIGHTS (UNAUDITED) (CONTINUED) - -------------------------------------------------------------------------------------------------------------------- FLORIDA INSURED MUNICIPAL ------------------------- Six Months Period from ended Year Year February 26, September 30, ended ended 1993* to 1995 March 31, March 31, March 31, (Unaudited) 1995 1994 1993** ----------- ----------- ---------- ----------- Net asset value: Beginning of period................................. $13.17 $12.46 $13.73 $14.05 ------ ------ ------ ------ Operations: Investment income - net............................. 0.53 1.07 0.96 0.01 Realized and unrealized gain (loss) on investments - net 0.47 0.69 (1.10) (0.25) ------ ------ ------- ------ Total from operations............................. 1.00 1.76 (0.14) (0.24) ------ ------ ------- ------ Distributions to: Common shareholders from investment income - net.... (0.36) (0.77) (0.74) -- Preferred shareholders from investment income - net. (0.15) (0.28) (0.19) -- ------ ------ ------- ------ Total distributions............................... (0.51) (1.05) (0.93) -- ------ ------ ------- ------ Capital share transactions: Capital charge with respect to issuance of shares...... -- -- (0.20) (0.08) ------ ------ ------- ------ Net asset value: End of period....................................... $13.66 $13.17 $12.46 $13.73 ====== ====== ====== ====== Market value: End of period....................................... $11.75 $12.25 $12.50 $15.13 ====== ====== ====== ====== Total investment return: Market value (a).................................... (1.15)% 4.69% (13.04)% 7.65% Net asset value (b)................................. 6.53% 12.56% (4.40)% (2.28)% Net assets applicable to outstanding capital shares at end of period (000's omitted).................... $53,088 $51,891 $50,189 $33,247 Ratios/Supplemental Data: Ratio of expenses to average net assets (c)......... 0.82% (d) 0.81% 0.85% 0.90%(d) Ratio of investment income - net to average net assets (c)............................ 4.89% (d) 5.21% 4.49% 1.24%(d) Portfolio turnover rate (excluding short-term securities)............................ 5% 10% 20% 0% Value of preferred shares outstanding (000's omitted) $20,000 $20,000 $20,000 -- Net asset coverage per share of preferred shares, end of period............................. 132,720 $129,728 $125,473 -- Liquidation value per share of preferred shares (e). $50,000 $50,000 $50,000 -- _____________________________ * Commencement of investment operations ** Initial period See accompanying notes to financial highlights on page xx.
FINANCIAL HIGHLIGHTS (CONTINUED) - ------------------------------------------------------------------------------------------------------------------ COLORADO INSURED MUNICIPAL -------------------------- Six Months Period from ended Year July 29, September 30, ended 1993* to 1995 March 31, March 31, (Unaudited) 1995 1994** ----------- -------------- ------------ Net asset value: Beginning of period..................................... $13.19 $12.80 $14.10 ------ ------ ------ Operations: Investment income - net................................. 0.50 1.02 0.59 Realized and unrealized gain (loss) on investments - net 0.39 0.44 (1.19) ------ ------ ------ Total from operations................................... 0.89 1.46 (0.60) ------ ------ ------ Distributions to: Common shareholders from investment income - net........ (0.35) (0.76) (0.39) Preferred shareholders from investment income - net..... (0.16) (0.27) (0.11) Common shareholders from realized capital gains - net... -- (0.03) -- Preferred shareholders from realized capital gains - net -- (0.01) -- ------ ------ ------ Total distributions..................................... (0.51) (1.07) (0.50) ------ ------ ------ Capital share transactions: Capital charge with respect to issuance of shares.......... -- -- (0.20) ------ ------ ------ Net asset value: End of period........................................... $13.57 $13.19 $12.80 ====== ====== ====== Market value: End of period........................................... $12.13 $12.25 $14.50 ======= ======= ====== Total investment return: Market value (a)........................................ 1.79% (10.05)% 5.52% Net asset value (b)..................................... 5.50% 9.67 % (6.66)% Net assets applicable to outstanding capital shares at end of period (000's omitted)........................ $105,617 $103,781 $101,923 Ratios/Supplemental Data: Ratio of expenses to average net assets (c)............. 0.78% (d) 0.76% 0.78%(d) Ratio of investment income - net to average net assets (c).............................. 4.64% (d) 4.88% 4.26%(d) Portfolio turnover rate (excluding short-term securities).............................. 22% 7% 3% Value of preferred shares outstanding (000's omitted)... $40,000 $40,000 $40,000 Net asset coverage per share of preferred shares, end of period............................... $132,022 $129,727 $127,404 Liquidation value per share of preferred shares (e)..... $50,000 $50,000 $50,000 _____________________________ * Commencement of investment operations ** Initial period See accompanying notes to financial highlights on page xx.
NOTES TO FINANCIAL HIGHLIGHTS (a) Total investment return is calculated assuming a purchase of common shares at the current market value on the first day and a sale at the current market value on the last day of each period reported. Underwriting discounts and commissions are not reflected in the total investment return for the initial period of each Fund. If underwriting discounts and commissions had been reflected, total investment returns for the initial period would have been 11.89%, 0.83%, (5.07)%, 0.83%, 0.83% and (0.81)% for Minnesota Municipal, Minnesota Municipal II, Minnesota Municipal III, Arizona Municipal, Florida Insured Municipal and Colorado Insured Municipal, respectively. Distributions, if any, are assumed for purposes of this calculation, to be reinvested at prices obtained under the Funds' dividend reinvestment plans. Total investment returns for periods of less than one year are not annualized. (b) Total investment return is calculated assuming a purchase of common shares at the current net asset value on the first day and a sale at the current net asset value on the last day of each period reported. Distributions, if any, are assumed for purposes of this calculation, to be reinvested at net asset value as of dividend payable date. Total investment returns for periods of less than one year are not annualized. These percentages are not an indication of the performance of a shareholder's investment in the Fund based on market value due to differences between the market price of the stock and the net asset value of the Fund. (c) Ratios calculated on the basis of expenses and net investment income applicable to both the common and preferred shares relative to the average net assets of common and preferred shareholders. Ratios do not reflect the effect of dividend payments to preferred shareholders. (d) Annualized. (e) Excluding any accumulated but unpaid dividends.
THE VOYAGEUR FUNDS QUARTERLY DATA (UNAUDITED) - --------------------------------------------------------------------------------------------------------------------- Net Realized Net Change and Unrealized in Net Assets Investment Investment Gain (Loss) on Resulting from Market Price Income Income - Net Investments Operations on ASE ---------- --------------- ----------------- --------------- --------------- Total Per Total Per Total Per Total Per Quarter Ended (000) Share (000) Share (000) Share (000) Share High Low - ------------- ----- ----- ----- ----- ----- ----- ----- ----- -------- ----- VOYAGEUR MINNESOTA MUNICIPAL INCOME FUND, INC. September 30, 1995........... $806 $0.31 $687 $0.26 $548 $0.22 $1,235 $0.48 $14.375 $13.125 June 30, 1995................ 913 0.35 792 0.31 240 0.09 1,032 0.40 14.750 13.875 ------ ------ ------ ------ ------ ----- ------ ----- Totals.................... $1,719 $0.66 $1,479 $0.57 $788 $0.31 $2,267 $0.88 ====== ===== ====== ===== ====== ====== ====== ===== VOYAGEUR MINNESOTA MUNICIPAL INCOME FUND II, INC. September 30, 1995........... $2,217 $0.31 $1,921 $0.27 $1,892 $0.26 $3,813 $0.53 $12.375 $11.375 June 30, 1995................ 2,348 0.32 2,045 0.28 970 0.13 3,015 0.41 12.875 11.500 ------ ------ ------ ------ ------ ----- ------ ------ Totals.................... $4,565 $0.63 $3,966 $0.55 $2,862 $0.39 $6,828 $0.94 ====== ===== ====== ===== ====== ===== ====== ===== VOYAGEUR MINNESOTA MUNICIPAL INCOME FUND III, INC. September 30, 1995........... $533 $0.29 $452 $0.25 $439 $0.24 $891 $0.49 $11.875 $10.500 June 30, 1995................ 570 0.31 489 0.26 252 0.14 741 0.40 12.000 10.875 ------ ------ ------ ------ ------ ----- ------ ------ Totals.................... $1,103 $0.60 $941 $0.51 $691 $0.38 $1,632 $0.89 ====== ===== ==== ===== ==== ===== ====== ===== VOYAGEUR ARIZONA MUNICIPAL INCOME FUND, INC. September 30, 1995........... $929 $0.31 $798 $0.26 $891 $0.30 $1,689 $0.56 $12.500 $11.625 June 30, 1995................ 937 0.32 799 0.27 323 0.11 1,122 0.38 12.625 11.375 ------ ------ ------ ------ ------ ----- ------ ----- Totals.................... $1,866 $0.63 $1,597 $0.53 $1,214 $0.41 $2,811 $0.94 ====== ===== ====== ===== ====== ====== ====== ===== VOYAGEUR FLORIDA INSURED MUNICIPAL INCOME FUND September 30, 1995........... $754 $0.31 $645 $0.27 $1,150 $0.47 $1,795 $0.74 $12.250 $11.375 June 30, 1995................ 748 0.31 640 0.26 (3) (0.00) 637 0.26 12.375 11.375 ------ ------ ------ ------ ------ ----- ------ ------ Totals.................... $1,502 $0.62 $1,285 $0.53 $1,147 $0.47 $2,432 $1.00 ====== ===== ====== ===== ====== ===== ====== ===== VOYAGEUR COLORADO INSURED MUNICIPAL INCOME FUND, INC. September 30, 1995........... $1,441 $0.30 $1,235 $0.25 $1,101 $0.23 $2,336 $0.48 $13.000 $11.875 June 30, 1995................ 1,411 0.29 1,206 0.25 770 0.16 1,977 0.41 12.875 11.625 ------ ------ ------ ------ ------ ----- ------ ----- Totals.................... $2,852 $0.59 $2,441 $0.50 $1,871 $0.39 $4,313 $0.89 ====== ===== ====== ===== ===== ====== ======= =====
VOYAGEUR MINNESOTA MUNICIPAL INCOME FUND, INC. INVESTMENTS IN SECURITIES (UNAUDITED) SEPTEMBER 30, 1995 - --------------------------------------------------------------------------------------------------------------------- PRINCIPAL AMOUNT COUPON MARKET ($000) NAME OF ISSUER (b) RATE MATURITY VALUE (a) - --------------------------------------------------------------------------------------------------------------------- (Percentage of each investment category relates to total net assets applicable to common shareholders.) MINNESOTA MUNICIPAL BONDS (150.7%): EDUCATION REVENUE (13.9%): ------------------------------------------------------------------------------------------------------- $1,000 Minnesota Higher Education Facilities Authority Revenue, Series 3-C, St. Thomas University .............................................. 6.25% 09-01-16 $1,014,730 1,000 Minnesota Higher Education Facilities Authority Revenue, Series 3-J, Macalester College.................................................. 6.40 03-01-22 1,030,650 250 Minnesota State University Board Revenue, Series A, State University System................................................................6.05 06-30-18 251,617 1,075 Northfield, Minnesota, St. Olaf College Revenue......................... 6.30 10-01-12 1,118,398 1,750 Northfield, Minnesota, St. Olaf College Revenue......................... 6.40 10-01-21 1,798,143 ---------- 5,213,538 ---------- GENERAL OBLIGATION (25.0%): ------------------------------------------------------------------------------------------------------- 1,000 Carver County, Series 1992-A............................................ 5.88 02-01-14 997,120 305 Edina Recreational Facilities Bonds, Series 1992-A...................... 6.00 01-01-09 314,980 320 Edina Recreational Facilities Bonds, Series 1992-A...................... 6.00 01-01-10 328,505 2,200 Hennepin County......................................................... 5.75 10-01-10 2,221,494 1,600 Minneapolis............................................................. 6.00 03-01-16 1,617,456 1,500 Minneapolis-St. Paul Metro Airport Commission, AMT...................... 6.60 01-01-11 1,591,845 1,000 Rosemount, Independent School District #196............................. 5.70 04-01-12 995,760 1,250 St. Francis, Independent School District #15 (CGIC Insured)............. 6.30 02-01-11 1,323,875 ---------- 9,391,035 ---------- HEALTH CARE REVENUE (27.7%): ------------------------------------------------------------------------------------------------------- 1,000 Bloomington Health Care Facilities, Masonic Home Care Center (AMBAC Insured)........................................................ 5.88 07-01-22 985,950 2,000 Duluth Economic Development Authority, Health Care Facilities Revenue, Series 1992, Duluth Clinic (AMBAC Insured).......................... 6.30 11-01-22 2,058,340 1,000 Duluth Economic Development Authority, Health Care Facilities Revenue, Series 1993-C,St. Mary's Hospital (Connie Lee Insured).............. 6.00 02-15-20 996,100 1,000 Duluth Economic Development Authority, Hospital Facilities Revenue, Series 1992-B, St. Luke's Hospital (Connie Lee Insured)............. 6.40 05-01-18 1,029,850 2,210 Minneapolis Hospital System Revenue, Fairview Hospital, Series 1991-A (MBIA Insured)...................................................... 6.50 01-01-11 2,336,036 1,500 Minneapolis Hospital System Revenue, Fairview Hospital, Series 1993-A (MBIA Insured)...................................................... 5.25 11-15-19 1,378,875 500 Minneapolis-St. Paul HRA, Health One (MBIA Insured)..................... 6.75 08-15-14 535,380 1,000 St. Cloud Hospital Revenue (AMBAC Insured).............................. 6.75 07-01-15 1,076,490 ---------- 10,397,021 ---------- HOUSING REVENUE (37.3%): ------------------------------------------------------------------------------------------------------ 2,170 Brooklyn Center, Multi-Family Housing Revenue, Four Courts, AMT......... 7.50 06-01-25 2,174,774 1,430 Minnesota State HFA, Single Family Mortgage Revenue, Series 1991-A, AMT (FHA Insured).................................................. 7.45 07-01-22 1,514,999 635 Minnesota State HFA, Single Family Mortgage Revenue, Series 1992-G...... 6.50 07-01-06$ 663,772 2,725 Minnetonka, Minnesota, Senior Housing Project (Guaranteed by Presbyterian Homes of Minnesota)................................................. 7.70 06-01-25 2,796,259 1,400 New Brighton, Multi-Family Mortgage Revenue, Polynesian Village Apartments, Series 1995-A, AMT...................................... 7.60 04-01-25 1,422,484 2,265 St. Anthony Multi-Family Housing Development (Asset Guaranty Insured)... 6.88 07-01-22 2,373,041 2,950 St. Paul HRA, Multi-Family Housing Revenue, Pointe of St. Paul Project, Series 1992 (FNMA Backed) .......................................... 6.60 10-01-12 3,050,978 ---------- 13,996,307 ---------- INDUSTRIAL REVENUE (9.5%): ------------------------------------------------------------------------------------------------------ 2,575 Bass Brook PCR, Minnesota Power and Light............................... 6.00 07-01-22 2,514,410 1,000 Metropolitan Council Sports Facilities Commission, Hubert H. Humphrey Metrodome........................................ 6.00 10-01-09 1,031,540 ---------- 3,545,950 ---------- POLLUTION CONTROL REVENUE (4.3%): ------------------------------------------------------------------------------------------------------ 1,500 Minnesota Public Facilities Authority, Water Pollution Control Revenue, Series 1992......................................................... 6.50 03-01-14 1,598,895 ---------- PRE-REFUNDED/ESCROWED (11.0%): ------------------------------------------------------------------------------------------------------- 3,055 Dakota & Washington Counties HRA, Single Family Mortgage Revenue, Bloomington, AMT (GNMA Backed)...................................... 8.38 09-01-21 4,118,293 ---------- UTILITY REVENUE (22.0%): ------------------------------------------------------------------------------------------------------ 1,000 Anoka County Solid Waste Disposal, National Rural Co-Op Utility, AMT.... 6.95 12-01-08 1,065,480 1,500 Northern Minnesota Municipal Power Agency, Electric System, Series A.... 5.00 01-01-21 1,302,525 1,250 Northern Minnesota Municipal Power Agency, Electric System, Series B (AMBAC Insured)..................................................... 5.50 01-01-18 1,207,875 1,000 Southern Minnesota Municipal Power Agency (FGIC Insured)................ 5.75 01-01-11 990,870 1,000 Southern Minnesota Municipal Power Agency (AMBAC Insured)............... 5.50 01-01-15 974,861 580 Southern Minnesota Municipal Power Agency (FGIC Insured)................ 5.00 01-01-16 525,706 2,275 Western Minnesota Municipal Power Agency (MBIA Insured)................. 5.50 01-01-15 2,198,765 ---------- 8,266,082 ---------- Total Municipal Bonds (cost: $54,784,388) 56,527,121 ---------- SHORT-TERM SECURITIES (0.2%): ------------------------------------------------------------------------------------------------------ 68 Federated Minnesota Municipal Cash Trust................................ 4.01(c) 68,300 ---------- TOTAL SHORT-TERM SECURITIES (cost: $68,300) 68,300 ---------- TOTAL INVESTMENTS IN SECURITIES (cost: $54,852,688) (d) $56,595,421 =========== See accompanying notes to investments in securities on page xx. VOYAGEUR MINNESOTA MUNICIPAL INCOME FUND II, INC. INVESTMENTS IN SECURITIES (UNAUDITED) SEPTEMBER 30, 1995 - --------------------------------------------------------------------------------------------------------------------- PRINCIPAL AMOUNT COUPON MARKET ($000) NAME OF ISSUER (b) RATE MATURITY VALUE (a) - --------------------------------------------------------------------------------------------------------------------- (Percentage of each investment category relates to total net assets applicable to common shareholders.) MINNESOTA MUNICIPAL BONDS (159.2%): EDUCATION REVENUE (11.7%): ------------------------------------------------------------------------------------------------------- $1,050 Minnesota Higher Education Facilities Authority Revenue, Series R1, St. Thomas University............................................... 5.60% 10-01-15 $1,012,084 1,635 Minnesota Higher Education Facilities Authority Revenue, Series R2, St. Thomas University............................................... 5.60 09-01-14 1,588,501 1,250 Minnesota State University Board Revenue, Series 1993-A, State University System................................................... 6.10 6-30-23 1,257,388 4,115 Minnesota State University Board Revenue, Series 1993-C, State University System (MBIA Insured).................................... 5.60 06-30-16 4,025,705 3,720 Minnesota State University Board Revenue, Series 1993-C, State University System (MBIA Insured).................................... 5.60 06-30-19 3,589,502 ---------- 11,473,180 ---------- GENERAL OBLIGATION (32.4%): ------------------------------------------------------------------------------------------------------- 3,700 Becker, Minnesota, AMT (MBIA Insured)................................... 6.25 08-01-15 3,849,776 4,030 Buffalo Independent School District (CGIC Insured)...................... 6.15 02-02-22 4,122,609 2,000 Hennepin County ........................................................ 5.75 10-01-10 2,019,540 3,225 Melrose Independent School District #740, Series A (FSA Insured)....... 5.63 02-01-13 3,194,782 1,825 Metropolitan Council.................................................... 5.13 12-01-08 1,801,640 775 Metropolitan Council.................................................... 5.13 12-01-09 754,013 500 Metropolitan Council.................................................... 5.13 12-01-10 478,850 3,400 Minneapolis Convention Center Facilities................................ 5.40 04-01-12 3,334,516 300 Minneapolis Convention Center Facilities................................ 5.45 04-01-14 291,486 1,000 Minnesota State......................................................... 5.38 08-01-11 982,660 2,140 Red Wing Independent School District #256, Series 1993-A................ 5.60 02-01-10 2,147,447 2,925 Red Wing Independent School District #256, Series 1993-A................ 5.70 02-01-12 2,935,150 3,125 Red Wing Independent School District #256, Series 1993-A................ 5.70 02-01-13 3,124,688 1,270 Rosemount Independent School District #196.............................. 5.70 04-01-12 1,264,615 1,540 St. Paul HRA, St. Paul Academy, Series 1993............................. 5.45 10-01-23 1,396,826 ---------- 31,698,598 ---------- HEALTH CARE REVENUE (30.5%): ------------------------------------------------------------------------------------------------------- 4,000 Bloomington Health Care Facility, Masonic Home Care Center (AMBAC Insured)..................................................... 5.88 07-01-22 3,943,800 1,195 Brainerd Lutheran Hospital, Healthcare Facilities, Series A (CGIC Insured)............................................. 6.65 03-01-17 1,282,617 1,250 Detroit Lakes Benedictine Health Systems (Connie Lee Insured)........... 6.00 02-15-19 1,245,213 1,000 Duluth Economic Development Authority, Hospital Facilities Revenue, Duluth Clinic (AMBAC Insured)....................................... 6.20 11-01-12 1,027,160 5,190 Duluth Economic Development Authority, Hospital Facilities Revenue, Series 1992, Duluth Clinic (AMBAC Insured) ......................... 6.30 11-01-22$ 5,341,392 6,000 Duluth Economic Development Authority, Hospital Facilities Revenue, Series 1993-C, St. Mary's Hospital (Connie Lee Insured).............. 6.00 02-15-20 5,976,600 2,105 Minneapolis Housing and Development Authority, Health One............... 7.40 08-15-11 2,367,830 6,730 Robbinsdale North Memorial Medical Center, Series 1993-B (AMBAC Insured) 5.50 05-15-23 6,303,924 1,000 Rochester Health Care Facilities, Mayo Clinic Foundation, Mayo Medical Center, Series 1992-I.................................. 5.75 11-15-21 970,980 1,500 St. Paul HRA, Ramsey Medical Center, Series 1993 (AMBAC Insured)........ 5.55 05-15-23 1,413,180 ---------- 29,872,696 ---------- HOUSING REVENUE (34.9%): ------------------------------------------------------------------------------------------------------- 1,880 Dakota County HRA, Multi-Family Mortgage Revenue, Imperial Ridge Project, Series 1993-A (GNMA Backed)................................ 6.10 12-15-28 1,832,774 1,300 Minneapolis, Minnesota, Multi-Family Housing Revenue, Olson Townhomes, Section 8, AMT...................................................... 6.00 12-01-19 1,228,708 1,115 Minnesota HFA, Multi-Family Rental Housing, Series-D.................... 5.90 02-01-14 1,105,032 2,295 Minnesota HFA, Multi-Family Rental Housing, Series-D.................... 6.00 08-01-22 2,232,186 2,500 Minnesota HFA, Rental Housing (AMBAC Insured)........................... 5.85(e) 08-01-11 2,504,900 1,715 Minnesota HFA, Single Family Mortgage Revenue, AMT...................... 7.05 07-01-22 1,779,656 4,320 Minnesota HFA, Single Family Mortgage Revenue, Series 1992-B2, AMT...... 6.15 01-01-26 4,186,987 4,370 Minnesota HFA, Single Family Mortgage Revenue, Series 1992-C2, AMT...... 6.15 07-01-23 4,239,468 3,920 Minnesota HFA, Single Family Mortgage Revenue, Series 1994-J, AMT....... 6.95 07-01-26 4,085,698 1,225 Minnetonka, Minnesota, Senior Housing Project (Guaranteed by Presbyterian Homes of Minnesota)................................................. 7.25 06-01-09 1,272,763 760 Minnetonka, Minnesota, Senior Housing Project (Guaranteed by Presbyterian Homes of Minnesota)................................................. 7.50 06-01-14 789,275 2,565 Minnetonka, Minnesota, Senior Housing Project (Guaranteed by Presbyterian Homes of Minnesota)................................................. 7.55 06-01-19 2,634,512 4,120 New Brighton, Multi-Family Mortgage Revenue, Polynesian Village Apartments, Series 1995-A, AMT.................................................. 7.60 04-01-25 4,186,167 2,000 St. Paul HRA (FNMA Insured)............................................. 6.40 03-01-21 2,038,800 ---------- 34,116,926 ---------- INDUSTRIAL REVENUE (15.9%): ------------------------------------------------------------------------------------------------------- 7,660 Bass Brook, PCR, Minnesota Power and Light.............................. 6.00 07-01-22 7,479,760 5,520 Metropolitan Council Sports Facilities Commission, Hubert H. Humphrey Metrodome........................................ 6.00 10-01-09 5,694,101 1,500 St. Paul HRA Civic Center, Series 1993.................................. 5.45 11-01-13 1,438,320 1,000 St. Paul HRA, Sales Tax Revenue, Civic Center........................... 5.55 11-01-23 948,260 ---------- 15,560,441 ---------- POLLUTION CONTROL REVENUE (4.6%): ------------------------------------------------------------------------------------------------------- 3,300 Minnesota Public Facilities Authority, Water Pollution Control Revenue, Series 1992......................................................... 6.50 03-01-14 3,517,569 1,000 Minnesota Public Facilities Authority, Water Pollution Control Revenue Bonds............................................................... 6.25 03-01-16 1,022,770 ---------- 4,540,339 PRE-REFUNDED/ESCROWED (17.4%): ------------------------------------------------------------------------------------------------------- 9,000 Dakota & Washington Counties, HRA, Single Family Motgage Revenue, Bloomington, AMT (GNMA Backed)...................................... 8.38 09-01-21 12,132,450 3,715 Southern Minnesota, Municipal Power Agency Power Supply................. 5.75 01-01-18 3,723,842 1,000 University of Minnesota Hospital........................................ 6.75 12-01-16 1,120,110 ---------- 16,976,402 ---------- UTILITY REVENUE (11.8%): ------------------------------------------------------------------------------------------------------- 7,205 Northern Minnesota Municipal Power Agency, Electric System, Series B (AMBAC Insured)..................................................... 5.50 01-01-18 6,962,191 4,665 Southern Minnesota Municipal Power Agency, Series B (FGIC Insured)...... 5.75 01-01-18 4,618,257 ---------- 11,580,448 ---------- Total Investments in Securities (cost: $155,359,399) (d) $155,819,030 ============ See accompanying notes to investments in securities on page xx. VOYAGEUR MINNESOTA MUNICIPAL INCOME FUND III, INC. INVESTMENTS IN SECURITIES (UNAUDITED) SEPTEMBER 30, 1995 - --------------------------------------------------------------------------------------------------------------------- PRINCIPAL AMOUNT COUPON MARKET ($000) NAME OF ISSUER (b) RATE MATURITY VALUE (a) - --------------------------------------------------------------------------------------------------------------------- (Percentage of each investment category relates to total net assets applicable to common shareholders.) MINNESOTA MUNICIPAL BONDS (162.6%): EDUCATION REVENUE (14.4%): ------------------------------------------------------------------------------------------------------- $1,000 Minnesota Higher Education Facilities Authority Revenue, Series R1, St. Thomas University............................................... 5.60% 10-01-15 $963,890 1,250 Minnesota State University Board Revenue, Series 1993-C, State University System (MBIA Insured)............................. 5.50 06-30-12 1,236,400 1,075 Northfield, Minnesota, St. Olaf College Revenue......................... 6.30 10-01-12 1,118,398 ---------- 3,318,688 ---------- GENERAL OBLIGATION (26.8%): ------------------------------------------------------------------------------------------------------- 725 Anoka-Hennepin Independent School District #11, Series C (FGIC Insured). 5.00 02-01-10 688,612 1,500 Minneapolis............................................................. 5.15 12-01-09 1,468,875 2,750 Red Wing Independent School Distrist #256, Series 1993-A................ 5.70 02-01-11 2,769,388 1,300 Waconia Independent School District #110, Series 1993-A (CGIC Insured).. 5.45 02-01-15 1,265,069 ---------- 6,191,944 ---------- HEALTH CARE REVENUE (27.6%): ------------------------------------------------------------------------------------------------------- 1,500 Duluth, Minnesota, Economic Development Authority, Duluth Clinic (AMBAC Insured)..................................................... 6.20 11-01-12 1,540,740 2,000 Princeton, Minnesota, Fairview Hospital Revenue, 1991-C (MBIA Insured).. 6.25 01-01-21 2,043,680 1,800 Rochester Health Care Facilities, Mayo Clinic Foundation, Mayo Clinic Center Series 1992-I.................................... 5.75 11-15-21 1,747,764 1,000 Wadena County, Health Care Facilities Revenue........................... 7.75 09-01-24 1,029,580 ---------- 6,191,944 ---------- HOUSING REVENUE (40.2%): ------------------------------------------------------------------------------------------------------- 1,000 Brooklyn Center, Multi-Family Housing Revenue, Four Courts, AMT......... 7.50 06-01-25 1,002,200 2,000 Burnsville, Minnesota, Multi-Family Mortgage Revenue, Series A (FSA Insured)....................................................... 7.10 01-01-30 2,100,140 1,000 Edina, Minnesota, HRA, Edina Park Plaza................................. 7.70 12-01-28 1,059,530 1,000 Minneapolis, Minnesota, Findley Place, Series 1994, AMT................. 7.00 12-01-16 1,048,050 1,675 Minneapolis, Minnesota, Multi-Family Housing Revenue, Olson Townhomes, AMT................................................ 6.00 12-01-19 1,583,143 1,585 Minnesota State HFA, Single Family Mortgage Revenue, Series 1991-A, AMT (FHA Insured)....................................................... 7.45 07-01-22 1,679,212 750 Minnesota State HFA, Singe Family Mortgage Revenue, Series C, AMT....... 9.00 08-01-18 799,268 ---------- 9,271,543 ---------- INDUSTRIAL REVENUE (24.2%): ------------------------------------------------------------------------------------------------------- 3,275 Bass Brook, PCR, Minnesota Power and Light.............................. 6.00 07-01-22 3,197,939 1,000 St. Paul HRA, Civic Center, Series 1993................................. 5.45 11-01-13 958,880 1,500 St. Paul HRA, Civic Center, Sales Tax Revenue........................... 5.55 11-01-23 1,422,390 ---------- 5,579,209 ---------- PRE-REFUNDED/ESCROW (14.9%): ------------------------------------------------------------------------------------------------------- 1,580 University of Minnesota Hospital........................................ 6.75 12-01-16 1,769,774 1,510 Western Minnesota Municipal Power....................................... 6.63 01-01-16 1,660,939 ---------- 3,430,713 ---------- UTILITY REVENUE (14.5%): ------------------------------------------------------------------------------------------------------- 1,500 Moorhead, Minnesota, Public Utilities Revenue (MBIA Insured)............ 6.25 11-01-12 1,561,620 1,800 Southern Minnesota Municipal Power Agency, Series B (FGIC Insured)...... 5.75 01-01-18 1,781,964 ---------- 3,343,584 ---------- Total Municipal Bonds (cost: $37,371,723) 37,497,445 ---------- SHORT-TERM SECURITIES (0.0%): ------------------------------------------------------------------------------------------------------- 10 Federated Minnesota Municipal Cash Trust................................ 4.01(c) 9,900 ---------- Total Short-Term Securities (cost: $9,900) 9,900 ---------- Total Investments in Securities (cost: $37,381,623) (d) $37,507,345 =========== See accompanying notes to investments in securities on page xx. VOYAGEUR ARIZONA MUNICIPAL INCOME FUND, INC. INVESTMENTS IN SECURITIES (UNAUDITED) SEPTEMBER 30, 1995 - --------------------------------------------------------------------------------------------------------------------- PRINCIPAL AMOUNT COUPON MARKET ($000) NAME OF ISSUER (b) RATE MATURITY VALUE (a) - --------------------------------------------------------------------------------------------------------------------- (Percentage of each investment category relates to total net assets applicable to common shareholders.) ARIZONA MUNICIPAL BONDS (159.1%): EDUCATION REVENUE (22.3%): ------------------------------------------------------------------------------------------------------- $2,000 Arizona State University, Series A...................................... 5.50% 07-01-19 $1,910,520 1,600 Maricopa County, Alhambra Elementary School District #68 (AMBAC Insured) 5.63 07-01-13 1,567,312 3,000 Maricopa County, Unified School District #11 ........................... 5.50 07-01-10 2,888,220 600 Santa Cruz Valley, Unified School District #35 (AMBAC Insured).......... 5.80 07-01-09 618,870 1,000 University of Arizona................................................... 6.25 06-01-11 1,045,460 1,000 University of Arizona................................................... 6.35 06-01-14 1,039,170 ---------- 9,069,552 ---------- GENERAL OBLIGATION (31.8%): ------------------------------------------------------------------------------------------------------- 2,000 Maricopa County, Unified School District #48............................ 5.00 07-01-10 1,875,620 2,750 Maricopa County, Unified School District #41............................ 6.25 07-01-15 2,734,242 1,800 Mesa General Obligation Project of 1987 (MBIA Insured).................. 5.70 07-01-08 1,864,260 1,250 Pima County/Tucson Unified School District #1, Series D (FGIC Insured).. 6.10 07-01-12 1,288,288 2,000 Pima County, Unified School District #6 (FGIC Insured).................. 5.75 07-01-12 2,017,600 1,500 Tempe, Arizona, Series B................................................ 6.00 07-01-12 1,525,845 1,630 Yavapai County, Unified School District #22 (FGIC Insured).............. 5.95 07-01-14 1,667,180 ---------- 12,973,035 ---------- HEALTH CARE REVENUE (26.9%): ------------------------------------------------------------------------------------------------------- 1,500 Arizona Hospital Health Facilities Authority............................ 6.25 09-01-11 1,565,505 1,000 Arizona Hospital System Revenue, Samaritan Health System (MBIA Insured). 5.63 12-01-15 981,580 1,750 Maricopa County Health Facilities, Catholic Healthcare West, Series A (MBIA Insured.............................................. 07-01-11 1,742,615 1,400 Maricopa County Health Facilities, Catholic Healthcare West, Series A (MBIA Insured....................................................... 07-01-21 1,407,406 2,550 Scottsdale Industrial Development Authority, Scottsdale Memorial Hospital (AMBAC Insured)..................................................... 5.25 09-01-18 2,391,671 1,360 University of Arizona Medical Center (MBIA Insured)..................... 5.00 07-01-13 1,227,672 700 University of Arizona Medical Center (MBIA Insured)..................... 6.25 07-01-16 725,683 1,000 University of Arizona Medical Center (MBIA Insured)..................... 5.00 07-01-21 901,000 ---------- 10,943,132 ---------- HOUSING REVENUE (9.7%): ------------------------------------------------------------------------------------------------------- 1,000 Peoria Multi-Family Housing Mortgage Revenue (GNMA Insured)............. 7.30 02-20-28 1,070,420 500 Phoenix Industrial Development Authority, Multi-Family Mortgage Revenue (FHA Insured)....................................................... 6.80 11-01-25 517,060 2,305 Tempe Industrial Development Authority, Multi-Family Mortgage Revenue (FHA Insured)....................................................... 6.13 06-01-10 2,373,366 ---------- 3,960,846 ---------- INDUSTRIAL REVENUE (8.9%): ------------------------------------------------------------------------------------------------------- 1,000 Arizona State Transportation Board...................................... 5.25 07-01-09 979,770 1,750 Maricopa County Stadium District (MBIA Insured)......................... 5.50 07-01-13 1,707,248 1,000 Navajo County, Pollution Control Corporation (AMBAC Insured)............ 5.50 08-15-28 943,520 ---------- 3,630,538 ---------- LEASE REVENUE (6.4%): ------------------------------------------------------------------------------------------------------- 2,500 Scottsdale Municipal Property Corporation (FGIC Insured)................ 6.25 11-01-14 2,598,250 ---------- SALES TAX REVENUE (3.4%): ------------------------------------------------------------------------------------------------------- 1,300 City of Phoenix, Junior Lien Street & Highway (FGIC Insured)............ 6.25 07-01-11 1,370,577 ---------- TRANSPORTATION REVENUE (12.1%): ------------------------------------------------------------------------------------------------------- 2,000 Tucson Airport Authority Revenue Funding (MBIA Insured)................. 5.70 06-01-13 1,973,500 3,000 Tucson, Arizona, Street & Highway User Revenue (MBIA Insured)........... 5.50 07-01-12 2,948,160 ---------- 4,921,660 ---------- UTILITY REVENUE (37.6%): ------------------------------------------------------------------------------------------------------- 1,750 Central Arizona Water Conservation District, Series A................... 5.50 11-01-10 1,741,005 1,050 Chandler, Arizona, Water & Sewer (FGIC Insured)......................... 5.00 07-01-08 1,019,067 1,150 Chandler, Arizona, Water & Sewer (FGIC Insured)......................... 5.00 07-01-09 1,098,112 1,000 Phoenix Civic Improvement Corporation................................... 5.00 07-01-18 878,890 2,800 Phoenix Civic Improvement Corporation................................... 5.50 07-01-21 2,709,868 2,000 Phoenix Water System Revenue............................................ 5.50 07-01-22 1,892,820 2,000 Salt River Project, Electric System Revenue............................. 6.25 01-01-27 2,035,840 4,000 Tucson Water Revenue Refunding, Series A (FGIC Insured)................. 5.75 07-01-18 3,937,200 ---------- 15,312,802 ---------- Total Investments in Securities (cost: $64,221,598) (d) $64,780,392 =========== See accompanying notes to investments in securities on page xx. VOYAGEUR FLORIDA INSURED MUNICIPAL INCOME FUND INVESTMENTS IN SECURITIES (UNAUDITED) SEPTEMBER 30, 1995 - --------------------------------------------------------------------------------------------------------------------- PRINCIPAL AMOUNT COUPON MARKET ($000) NAME OF ISSUER (b) RATE MATURITY VALUE (a) - --------------------------------------------------------------------------------------------------------------------- (Percentage of each investment category relates to total net assets applicable to common shareholders.) FLORIDA MUNICIPAL BONDS (157.9%): GENERAL OBLIGATION (12.0%): ------------------------------------------------------------------------------------------------------- $1,000 Dade County Seaport (AMBAC Insured)..................................... 6.25% 10-01-21 $1,030,420 2,000 Indian River County School District (FSA Insured)....................... 5.50 04-01-13 1,951,700 1,000 Miami (FGIC Insured).................................................... 5.50 12-01-13 975,240 ---------- 3,957,360 ---------- HEALTH CARE REVENUE (23.0%): ------------------------------------------------------------------------------------------------------- 1,500 Cape Canaveral Hospital District (AMBAC Insured)........................ 5.25 01-01-13 1,404,420 1,000 Dade County Health Facilities Authority, Baptist Hospital Miami (MBIA Insured)...................................................... 5.25 05-15-21 913,350 500 Dade County Public Facilities Revenue, Jackson Memorial Hospital (MBIA Insured)...................................................... 5.25 06-01-23 455,260 1,000 Hillsborough County Industry Development Authority, Alleghany Health System (MBIA Insured)............................. 5.75 12-01-21 973,520 2,500 Lakeland Hospital System Revenue, Lakeland Regional Medical Center (FGIC Insured)...................................................... 5.75 11-15-15 2,470,425 1,500 Palm Beach County Health Facilities Authority Revenue, Jupiter Medical Center Project (FSA Insured)........................ 5.25 08-01-18 1,382,820 ---------- 7,599,795 ---------- INDUSTRIAL REVENUE (6.6%): ------------------------------------------------------------------------------------------------------- 2,250 Lee County Capital & Transportation Facilities (MBIA Insured)........... 5.60 10-01-21 2,189,925 ---------- MISCELLANEOUS & SALES TAX REVENUE (38.3%): ------------------------------------------------------------------------------------------------------- 1,500 Boca Raton Community Redevelopment Tax Increment, Minzer Park Project (FGIC Insured)...................................................... 5.88 03-01-13 1,518,270 1,000 Dade County Professional Sports Franchise Facilities, Series B (FGIC Insured)............................................. 6.00 10-01-22 1,005,500 1,500 Florida State Department of General Services, Florida Facilities Pool (AMBAC Insured...................................................... 09-01-14 1,441,500 1,500 Florida State Division Finance Department, Preservation 2000, Series A (FSA Insured........................................................ 07-01-10 1,492,350 1,250 Hernando County Capital Improvements Revenue (MBIA Insured)............. 5.75 02-01-21 1,228,612 3,000 Orange County Public Service Tax Revenue (FGIC Insured)................. 6.00 10-01-24 3,020,370 1,000 Orange County Sales Tax Revenue (FGIC Insured).......................... 6.13 01-01-19 1,012,550 1,000 State of Florida Board of Regents, University System Improvements (AMBAC Insured)..................................................... 5.0 7-01-13 960,670 1,000 Tampa Utilities Tax (AMBAC Insured)..................................... 6.00 10-01-15 1,006,230 ---------- 12,686,052 ---------- PRE-REFUNDED/ESCROWED (8.2%): ------------------------------------------------------------------------------------------------------- 2,500 Palm Beach County Health Facilities Authority Revenue (FSA Insured)..... 5.75 12-01-14 2,730,075 ---------- TRANSPORTATION REVENUE (13.2%): ------------------------------------------------------------------------------------------------------- 1,500 Florida State Turnpike Authority, Series A (FGIC Insured)............... 5.50 07-01-10 1,492,350 1,000 Florida State Turnpike Authority, Series A (FGIC Insured)............... 5.25 07-01-11 960,540 2,000 Hillsborough County Aviation Authority, Tampa International Airport, Series B (FGIC Insured)............................................. 5.60 10-01-19 1,929,660 ---------- 4,382,550 ---------- UTILITY REVENUE (56.6%): ------------------------------------------------------------------------------------------------------- 2,500 Charlotte County Utilities (FGIC Insured)............................... 5.50 10-01-17 2,401,425 1,000 City of Panama City Beach Water & Sewer (AMBAC Insured)................. 5.50 06-01-18 955,050 2,000 City of Port Orange, Water & Sewer (AMBAC Insured)...................... 5.25 10-01-21 1,848,160 1,700 Florida Keys, Aqueduct Water Revenue (AMBAC Insured).................... 5.25 09-01-21 1,571,038 1,250 Florida State Municipal Power Agency, St. Lucie Project (FGIC Insured).. 5.70 10-01-16 1,236,400 1,000 Kissimmee Utility Authority, Electrical Systems Improvement (FGIC Insured)5.50 10-01-15 971,660 1,000 Lakeland Waste Water Improvement Revenue (MBIA Insured)................. 5.50 10-01-16 965,010 1,500 Pembroke Pines Construction Utilities (FGIC Insured).................... 6.25 09-01-17 1,548,045 2,500 Sarasota County Utility System (FGIC Insured)........................... 5.50 10-01-22 2,378,675 1,500 Seacoast Utilities Authority, Water & Sewer (FGIC Insured).............. 5.50 03-01-13 1,463,805 2,000 Seacoast Utilities Authority, Water & Sewer (FGIC Insured).............. 5.50 03-01-16 1,961,440 1,500 South Florida Water Management District (AMBAC Insured)................. 5.25 10-01-15 1,413,210 ---------- 18,713,918 ---------- Total Investments in Securities (cost: $52,234,854) (d) $52,259,675 =========== See accompanying notes to investments in securities on page xx. VOYAGEUR COLORADO INSURED MUNICIPAL INCOME FUND, INC. INVESTMENTS IN SECURITIES (UNAUDITED) SEPTEMBER 30, 1995 - --------------------------------------------------------------------------------------------------------------------- PRINCIPAL AMOUNT COUPON MARKET ($000) NAME OF ISSUER (b) RATE MATURITY VALUE (a) - --------------------------------------------------------------------------------------------------------------------- (Percentage of each investment category relates to total net assets applicable to common shareholders.) COLORADO MUNICIPAL BONDS (158.6%): EDUCATION REVENUE (28.9%): ------------------------------------------------------------------------------------------------------- $2,190 Adams County School District #12, Thornton (FGIC Insured)............... 6.20% 12-15-10 $2,298,799 1,490 Auraria Higher Education Center Revenue Refunding Parking Facilities (FSA Insured).................................... 5.30 04-01-12 1,429,834 5,000 Colorado Postsecondary Education Facility Authority Revenue, University of Denver Project (Connie Lee Insured)................... 6.00 03-01-16 5,010,350 2,500 Colorado State Board of Agriculture Revenue Refunding, Colorado State University, Auxiliary Facilities (MBIA Insured)...... 6.40 03-01-11 2,647,550 1,250 Colorado State Board of Agriculture Revenue Refunding & Improvement, Fort Lewis College (FGIC Insured)...................... 6.50 10-01-12 1,323,338 5,000 Larimer County School District #R1, Poudre Improvement (MBIA Insured)... 6.15 12-15-16 5,140,950 1,000 University of Colorado, University Revenue, Research Building Revolving Fund (MBIA Insured)....................................... 6.13 06-01-12 1,034,170 ---------- 18,884,991 ---------- GENERAL OBLIGATION (29.9%): ------------------------------------------------------------------------------------------------------- 3,000 Boulder Larimer & Weld Counties, St. Vrain Vy School District Revenue Refunding, Series A (MBIA Insured).......................... 6.00 12-15-10 3,111,360 2,800 Denver City & County School District #1 Refunding, Series A (MBIA Insured)............................................. 5.13 12-01-12 2,598,820 2,000 Goldsmith Metropolitan District, Revenue Refunding (MBIA Insured)...... 6.13 12-01-12 2,061,100 9,075 Jefferson County School District #R-001 (AMBAC Insured )................ 6.00 12-15-12 9,306,231 2,435 Jefferson County School District #R-001 (AMBAC Insured)................. 6.25 12-15-12 2,555,727 ---------- 19,633,238 ---------- HEALTH CARE REVENUE (36.9%): ------------------------------------------------------------------------------------------------------- 6,500 Colorado Health Facilities Authority Revenue, North Colorado Medical Center (MBIA Insured)....................................... 6.00 05-15-20 6,482,775 2,000 Colorado Health Facilities Authority Revenue, Sisters of Charity Health Care, Series A (MBIA Insured)................................ 6.00 05-15-22 1,994,540 4,260 Denver City & County Revenue, Childrens Hospital Association Project (FGIC Insured).............................................. 6.00 10-01-15 4,279,042 3,560 Logan County Health Care Facilities Revenue, Western Health Network Inc. (MBIA Insured)......................................... 5.90 01-01-19 3,562,101 7,625 University of Colorado Hospital Authority, Hospital Revenue, Series A (AMBAC Insured)............................................ 6.40 11-15-22 7,895,840 ---------- 24,214,298 ---------- HOUSING REVENUE (4.6%): ------------------------------------------------------------------------------------------------------- 1,100 Colorado School of Mines, Auxiliary Facilities Revenue Refunding (MBIA Insured)...................................................... 5.00 12-01-13$ 1,011,131 2,000 Snowmass Village Multi-Family Housing, Revenue Refunding Essential Function Housing (FSA Insured)........................... 6.25 12-15-16 2,040,400 ---------- 3,051,531 ---------- MISCELLANEOUS & SALES TAX REVENUE (23.4%): ------------------------------------------------------------------------------------------------------- 5,000 City of Westminister County Sales & Use Tax Refunding Revenue, Series A (FGIC Insured)............................................. 6.25 12-01-12 5,195,300 1,600 Lafayette Sales & Use Tax Revenue Refunding (AMBAC Insured)............. 5.00 11-15-11 1,494,768 4,000 Regional Transportation District Colorado Sales Tax Revenue Refunding (FGIC Insured)............................................ 5.38 11-01-10 3,961,040 4,500 Regional Transportation District Sales Tax Revenue Refunding & Improvement (FGIC Insured)........................................ 6.25 11-01-12 4,704,660 ---------- 15,355,768 ---------- POLLUTION CONTROL REVENUE (17.7%): ------------------------------------------------------------------------------------------------------- 5,000 Adams County Pollution Control Revenue Refunding, Public Service Company Project, Series A (MBIA Insured).................... 5.88 04-01-14 5,044,850 6,675 Morgan County Pollution Control Revenue Refunding, 1st Meeting Public Service Company, Series A (MBIA Insured)......... 5.50 06-01-12 6,560,123 ---------- 11,604,973 ---------- TRANSPORTATION REVENUE (7.0%): ------------------------------------------------------------------------------------------------------- 4,500 Arapahoe County Capital Improvements Revenue (MBIA Insured)............. 6.05 08-31-15 4,596,840 ---------- UTILITY REVENUE (10.2%): ------------------------------------------------------------------------------------------------------- 5,700 Municipal Subdistrict Northern Colorado Water Conservation Refunding, Series E (AMBAC Insured)................................. 5.00 12-01-17 5,234,424 1,500 Woodland Park Waste Water Utility Revenue (MBIA Insured)................ 5.50 12-01-15 1,474,755 ---------- 6,709,179 ---------- Total Investments in Securities (cost: $105,342,202) (d) $104,050,818 ============ See accompanying notes to investments in securities on page xx.
THE VOYAGEUR FUNDS NOTES TO INVESTMENTS IN SECURITIES (UNAUDITED) - -------------------------------------------------------------------------------- (a) Securities are valued by procedures described in note 2 to the Financial Statements. (b) Investment in bonds, by rating category as a percentage of total bonds, are as follows:
Aaa/AAA Aa/AA A/A Baa Unrated Total ------- ----- --- --- ------- ----- Minnesota Municipal Income Fund, Inc........ 56% 15% 18% -- 11% 100% Minnesota Municipal Income Fund II, Inc..... 61% 13% 20% -- 6% 100% Minnesota Municipal Income Fund III, Inc.... 46% 14% 35% -- 5% 100% Arizona Municipal Income Fund, Inc.......... 70% 20% 6% 4% -- 100% Florida Insured Municipal Income Fund....... 100% -- -- -- -- 100% Colorado Insured Municipal Income Fund, Inc. 100% -- -- -- -- 100%
(c) Dividend yields change daily to reflect current market conditions. Rate shown is the quoted yield as of September 30, 1995. (d) The cost of securities for federal income tax purposes for Minnesota Municipal, Minnesota Municipal II, Minnesota Municipal III, Arizona Municipal, Florida Insured Municipal and Colorado Insured Municipal were $54,852,688, $155,398,633, $37,386,568, $64,221,598, $52,234,854 and $105,342,202, respectively. The aggregate gross unrealized appreciation and depreciation of securities based on these costs were as follows:
Net Gross Gross Unrealized Unrealized Unrealized Appreciation Appreciation (Depreciation) (Depreciation) ------------ -------------- -------------- Minnesota Municipal Income Fund, Inc........ $1,840,518 $(97,785) $1,742,733 Minnesota Municipal Income Fund II, Inc..... 2,189,883 (1,769,486) 420,397 Minnesota Municipal Income Fund III, Inc.... 765,978 (645,201) 120,777 Arizona Municipal Income Fund, Inc.......... 1,108,912 (550,118) 558,794 Florida Insured Municipal Income Fund....... 545,874 (521,053) 24,821 Colorado Insured Municipal Income Fund, Inc. 876,321 (2,167,705) (1,291,384)
(e) At September 30, 1995, the cost of securities purchased on a when-issued basis was $2,500,000. THE VOYAGEUR FUNDS ANNUAL MEETING RESULTS - -------------------------------------------------------------------------------- An annual meeting of the fund's shareholders was held on August 21, 1995. Each matter was voted upon at the meeting, as well as the number of votes cast for, against or withheld, the number of absentions, and the number of broker non-votes with respect to such matter, are set forth below. 1. The fund's shareholders elected the following directors:
ARIZONA MUNICIPAL INCOME FUND, INC. Shares Shares Withholding Voted "For" Authority to Vote ----------- ----------------- Clarence G. Frame...................................... 1,807,057 24,387 B. Kristine Johnson.................................... 1,807,057 24,387 Richard F. McNamara.................................... 1,807,057 24,387 Thomas F. Madison...................................... 1,807,057 24,387 James W. Nelson........................................ 1,807,057 24,387 Robert J. Odegard...................................... 1,807,057 24,387 COLORADO INSURED MUNICIPAL INCOME FUND, INC. Shares Shares Withholding Voted "For" Authority to Vote ----------- ----------------- Clarence G. Frame...................................... 3,346,529 52,394 B. Kristine Johnson.................................... 3,346,529 52,394 Richard F. McNamara.................................... 3,346,529 52,394 Thomas F. Madison...................................... 3,346,529 52,394 James W. Nelson........................................ 3,346,529 52,394 Robert J. Odegard...................................... 3,346,529 52,394 FLORIDA INSURED MUNICIPAL INCOME FUND Shares Shares Withholding Voted "For" Authority to Vote ----------- ----------------- Clarence G. Frame...................................... 1,561,719 29,315 B. Kristine Johnson.................................... 1,561,719 29,315 Richard F. McNamara.................................... 1,561,719 29,315 Thomas F. Madison...................................... 1,561,719 29,315 James W. Nelson........................................ 1,561,719 29,315 Robert J. Odegard...................................... 1,561,719 29,315 MINNESOTA MUNICIPAL INCOME FUND, INC. Shares Shares Withholding Voted "For" Authority to Vote ----------- ----------------- Clarence G. Frame...................................... 1,215,550 10,951 B. Kristine Johnson.................................... 1,215,550 10,951 Richard F. McNamara.................................... 1,215,550 10,951 Thomas F. Madison...................................... 1,215,550 10,951 James W. Nelson........................................ 1,215,550 10,951 Robert J. Odegard...................................... 1,215,550 10,951 MINNESOTA MUNICIPAL INCOME FUND II, INC. Shares Shares Withholding Voted "For" Authority to Vote ----------- ----------------- Clarence G. Frame...................................... 4,887,224 80,835 B. Kristine Johnson.................................... 4,887,224 80,835 Richard F. McNamara.................................... 4,887,224 80,835 Thomas F. Madison...................................... 4,887,224 80,835 James W. Nelson........................................ 4,887,224 80,835 Robert J. Odegard...................................... 4,887,224 80,835 MINNESOTA MUNICIPAL INCOME FUND III, INC. Shares Shares Withholding Voted "For" Authority to Vote ----------- ----------------- Clarence G. Frame...................................... 1,162,585 6,488 B. Kristine Johnson.................................... 1,162,585 6,488 Richard F. McNamara.................................... 1,162,585 6,488 Thomas F. Madison...................................... 1,162,585 6,488 James W. Nelson........................................ 1,162,585 6,488 Robert J. Odegard...................................... 1,162,585 6,488
2. The fund's shareholders ratified the selection by a majority of the independent members of the fund's Board of Directors of KPMG Peat Marwick LLP as the independent public accountants for the funds for the fiscal year ending March 31, 1996. The following votes were cast regarding this matter:
Shares Shares Voted "For" Voted "Against" Absentions ------------- --------------- ---------- Arizona 1,803,281 15,226 12,937 Colorado 3,322,963 9,397 66,563 Florida 1,552,723 20,380 17,931 Minnesota 1,210,349 3,063 13,089 Minnesota II 4,879,385 29,240 59,433 Minnesota III 1,159,686 468 8,919
There were no broker non-votes with this proxy. INVESTMENT ADVISER AND ACCOUNTING SERVICES AGENT Voyageur Fund Managers, Inc. 90 South Seventh Street, Suite 4400 Minneapolis, Minnesota 55402-4115 (612) 376-7000 / (800) 553-2143 ADMINISTRATORS Mitchell Hutchins Asset Management Inc. New York, New York Middlesex Administrators L.P. Plainsboro, New Jersey (on Colorado Insured Municipal Income Fund, Inc. only) CUSTODIAN First Trust, N.A. St. Paul, Minnesota SHAREHOLDER SERVICING AGENT Norwest Bank Minnesota, N.A. 161 North Concord Exchange South St. Paul, Minnesota 55075 (612) 450-4064 / (800) 468-9716 PREFERRED SHARES REMARKETING AGENTS Smith Barney Inc. New York, New York Merrill Lynch, Pierce, Fenner & Smith Incorporated New York, New York (on Colorado Insured Municipal Income Fund, Inc. only) INDEPENDENT AUDITORS KPMG Peat Marwick LLP Minneapolis, Minnesota GENERAL COUNSEL Dorsey & Whitney P.L.L.P Minneapolis, Minnesota This report, including the financial statements herein, is sent to the shareholders of the Funds for their information. It is not a prospectus, circular or representation intended for use in the purchase or sale of shares of the Funds or any securities mentioned in this report. -----END PRIVACY-ENHANCED MESSAGE-----