-----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, By8FHfdFyvWPgA4N/KOoAVzbF/STQdSy+TXxIKzXcvxOFJHV7Me0OC1AQQDF2jyw oJ6c027e/ayOLKOoU7c9qg== 0001018410-96-000051.txt : 19961203 0001018410-96-000051.hdr.sgml : 19961203 ACCESSION NUMBER: 0001018410-96-000051 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19960930 FILED AS OF DATE: 19961202 SROS: AMEX 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: 96674806 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 N-30D 1 SEMI-ANNUAL REPORT TO SHAREHOLDERS [Title]Letter from the President [Picture of John Taft upper right hand corner] John Taft President Dear Shareholder: Since our last report, the headline story in the municipal bond market has been the demise of a radical tax reform proposal. One of the best ways to illustrate this demise is to look at how municipal bonds have traded in relation to Treasury securities. At the height of the tax reform scare -- when Steve Forbes was campaigning on his "Flat Tax" platform in January 1996 -- long municipal securities were trading at a relatively cheap 90% of the 30-year Treasury. At the time of this report, market fears have abated regarding a "Flat Tax" and municipal bonds are trading at a more traditional 80.1%. We believe the issue of reforming the tax code is far from thoroughly closed, and it is likely that we may see renewed discussions about a less radical tax reform. However, as is often the case in the financial markets, we believe these times of short-term volatility and uncertainty represent good opportunities for long-term investors. We remain committed to providing our clients with the best investment products and services available in today's financial markets. If at any time you have questions about your Voyageur Fund investments, I'd like to encourage you to contact your personal financial advisor or Voyageur Shareholder Services. Our Voyageur Shareholder Services 800 number -- known as Voyageur On CallTM -- allows you 24-hour access, seven days a week, to an automated voice response service with shareholder services representatives available from 8 a.m. to 5 p.m. Central Standard Time. We appreciate your continued patronage of Voyageur Investments and look forward to working with you and your financial advisors in creating products and services designed to bring you closer to your investment goals. Sincerely, [Signature] John G. Taft President Voyageur Arizona Municipal Income Fund Voyageur Colorado Insured Municipal Income Fund Voyageur Florida Insured Municipal Income Fund Voyageur Minnesota Municipal Income Funds -- I, II, III [Page Break] [Picture of Steven P. Eldredge and the following caption, upper left hand corner] Steven P. Eldredge is the Senior Municipal Bond Portfolio Manager for the Voyageur Florida Insured Municipal Income Fund. Mr. Eldredge has more than 18 years of investment industry experience. VOYAGEUR FLORIDA INSURED MUNICIPAL INCOME FUND Within the context of the Fund's investment objective of high current income consistent with preservation of capital, we continue to manage the Voyageur Florida Insured Municipal Income Fund with the dual focus of generating higher tax-exempt income levels and protecting future income streams. By elevating portfolio income, we are able to accomplish two important things. First, we were able to provide our shareholders with competitive distribution rates. Second, higher income levels create a valuable cushion against market declines -- such as those we witnessed during the first half of 1996. Income protection is the second part of our management strategy. Recently, much has been said concerning the significant number of bond calls occurring in closed-end funds. Unlike many closed-end funds, we actively manage the call protection in Voyageur Florida Insured Municipal Income Fund's portfolio in an attempt to maintain the Fund's income stream for the longest period possible. Florida continues to have a relatively vibrant economy, and several tax-exempt sectors within the state have proven to add value to the Fund's performance during the past six months. First is school district debt. School districts -- unable to keep up with the demand for more classroom space -- are flooding the municipal market with bond issues. This overwhelming supply makes these bonds relatively cheap and attractive purchases. Once school debt issuance subsides -- and we believe it will --prices should appreciate, benefitting the Fund. Another sector which we believe represents long-term value is health care. Attracted to the elderly population, many large health care organizations are buying independently operated hospitals. As these individual hospitals become part of a network, their general financial picture typically improves and, consequently, the price of their bonds tends to rise. Thus, we are attempting to take advantage of this trend by increasing our weighting of health care issues in the portfolio. The three Voyageur Minnesota Municipal Income Funds are all managed very similarly -- with an emphasis on generating income and maintaining high credit quality. [Following caveats, lower left hand corner] Past performance is no guarantee of future results. Insurance pertains only to the timely payment of principal and interest by the securities in the fund's portfolio. The value of the insured securities and the Fund itself will fluctuate due to changing market conditions. No representation is made as to any insurer's ability to meet its commitment. [Page Break] [Picture Elizabeth Howell and following caption, upper right hand corner] Elizabeth H. Howell is the Senior Municipal Bond Portfolio Manager for the Voyageur Minnesota Municipal Income Funds -- I, II and III. Ms. Howell has more than 13 years of investment industry experience. VOYAGEUR MINNESOTA MUNICIPAL INCOME FUNDS -- I, II, III Within the context of the Funds' investment objective of high current income consistent with preservation of capital, the three Voyageur Minnesota Municipal Income Funds are all managed very similarly -- with an emphasis on generating income and maintaining high credit quality. We continue to position these Funds to benefit from our outlook for gradually declining interest rates in 1997. To protect our shareholders' tax-exempt income, the Funds hold bonds with relatively strong call protection, long average maturities and high credit quality. The Minnesota economy continues to be strong. The economy is well diversified in comparison to other states and has historically been less cyclical than the coasts. As a result, the credit quality of all of our Minnesota bonds remains excellent, and these Funds' holdings are diversified in a wide variety of municipal sectors within the state of Minnesota. [Following caveat, lower right hand corner] Past performance is no guarantee of future results. [Page Break] [Picture of Andrew M. McCullagh and following caption, upper left hand corner] Andrew M. McCullagh, Jr. is the Senior Municipal Bond Portfolio Manager for the Voyageur Arizona Municipal Income and Voyageur Colorado Insured Municipal Income Funds. Mr. McCullagh has more than 25 years of investment industry experience. VOYAGEUR ARIZONA MUNICIPAL INCOME FUND Within the context of the Fund's investment objective of high current income consistent with preservation of capital, our major management thrust for the Voyageur Arizona Municipal Income Fund has been to increase shareholders' tax-exempt income and extend call protection. To generate more dividend income, we traded some AAA-rated bonds for A-rated holdings. Because Arizona currently enjoys a brisk economy, we believe we are able to slightly lower the Fund's credit quality without significantly increasing credit risk. Arizona has one of the stronger economies in the United States, spurred by the influx of people and businesses moving into the state, especially from California. To protect the income stream for as long as possible, we are extending call protection by selling bonds that can be called in the nearer term and replacing them with bonds that have longer call features. We believe these changes will protect your income stream further into the future. This is especially important if, as we anticipate, interest rates decline and the U.S. economy slows in the first half of 1997. [Following caveat, lower left hand corner] Past performance is no guarantee of future results. [Page Break] [Picture of Andrew M. McCullagh, Jr. And foll, upper right hand corner] VOYAGEUR COLORADO INSURED MUNICIPAL INCOME FUND Andrew M. McCullagh, Jr. is the Senior Municipal Bond Portfolio Manager for the Voyageur Arizona Municipal Income and Voyageur Colorado Insured Municipal Income Funds. Mr. McCullagh has more than 25 years of investment industry experience. Within the context of the Fund's investment objective of high current income consistent with preservation of capital and our anticipation for declining interest rates in 1997, our major focus for the Voyageur Colorado Insured Municipal Income Fund has been to increase our shareholders' tax-exempt income and extend call protection. Since this is an insured fund, we cannot add income by lowering the credit quality of the portfolio. Rather, we have been generating more income by trading bonds with lower yields for bonds with higher yields. To accomplish this, we have been focusing on sectors of the Colorado municipal market that tend to pay higher yields -- such as the hospital and transportation sectors -- than offered by most general obligation bonds. Since higher yielding bonds are more attractive to investors, they tend to appreciate in price over time, thereby increasing the value of the portfolio. In some instances, such trades will generate a tax loss that we can use to offset tax gains, if any, in the portfolio. This strategy is especially appropriate in Colorado, which currently enjoys one of the stronger economies in the United States. Colorado continues to experience brisk growth, benefiting from the inflow of individuals and businesses moving into the Rocky Mountain Region, especially from the West Coast. Past performance is no guarantee of future results. Insurance pertains only to the timely payment of principal and interest by the securities in the fund's portfolio. The value of the insured securities and the Fund itself will fluctuate due to changing market conditions. No representation is made as to any insurer's ability to meet its commitment. [End of Text] 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. SEMI-ANNUAL REPORT Dated September 30, 1996 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 (at least 80%) 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, 1996, the Adviser acted as the investment adviser to six closed-end investment companies and ten open-end investment companies (comprising thirty-three separate investment portfolios) and numerous private accounts with combined total assets of approximately $12.2 billion. SHAREHOLDER INFORMATION Weekly net asset value and market price information for the Funds are published each Monday in THE WALL STREET JOURNAL, each Sunday in 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. A participant may withdraw from a plan at any time by advising the Plan Agent in writing (see address on back page under "Shareholder Servicing Agent"). Shares held in nominee name at brokerage firm may not be eligible for automatic dividend reinvestment. You should contact your financial adviser to determine such firm's policies. The automatic reinvestment of dividends and capital gains distributions does not relieve you of any income tax which may be otherwise payable on dividends or distributions. 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. THE VOYAGEUR FUNDS STATEMENTS OF ASSETS AND LIABILITIES (UNAUDITED) SEPTEMBER 30, 1996
VOYAGEUR MINNESOTA MUNICIPAL INCOME FUND, INC. ---------- ASSETS Investments in securities (note 2) (identified cost: $54,826,911, $155,257,100, $36,958,277, $64,250,354, $52,132,633 and $103,822,949, respectively)................................... $56,777,549 Cash in bank on demand deposit.................................................. 2,466 Receivable for investment securities sold ...................................... -- Accrued interest receivable..................................................... 1,025,461 ----------- Total assets.................................................................. 57,805,476 ----------- LIABILITIES Bank overdraft.................................................................. -- Payable for investment securities purchased..................................... -- Dividends payable to preferred shareholders..................................... 53,700 Administration fee payable...................................................... 9,081 Advisory fee payable............................................................ -- Other accrued expenses.......................................................... 41,916 ----------- Total liabilities............................................................. 104,697 ----------- NET ASSETS APPLICABLE TO OUTSTANDING CAPITAL SHARES........................... $57,700,779 =========== 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........................................... 344,824 Accumulated net realized loss from investments................................ (72,748) Unrealized net appreciation of investments.................................... 1,950,638 ----------- TOTAL REPRESENTING NET ASSETS APPLICABLE TO OUTSTANDING CAPITAL SHARES............................................................ $57,700,779 =========== TOTAL REPRESENTING NET ASSETS APPLICABLE TO OUTSTANDING COMMON SHARES............................................................. $37,700,779 =========== 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)................. $14.53 ====== See accompanying notes to financial statements.
THE VOYAGEUR FUNDS STATEMENTS OF ASSETS AND LIABILITIES (UNAUDITED) (CONTINUED) SEPTEMBER 30, 1996
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. ------------- -------------- ---------- ---- ---------- $156,742,418 $37,724,037 $65,725,915 $52,937,773 $104,123,502 -- 45,596 33,186 3,986 6,038,798 393,816 -- -- -- -- 2,465,774 649,802 955,753 852,743 1,792,018 ----------- ---------- ---------- ---------- ----------- 159,602,008 38,419,435 66,714,854 53,794,502 111,954,318 ----------- ---------- ---------- ---------- ----------- 149,220 -- -- -- -- -- -- -- -- 5,477,297 160,866 42,069 63,290 52,778 106,324 19,399 4,679 8,117 6,525 12,969 3,483 -- -- -- -- 113,587 42,266 56,322 45,665 45,247 ----------- ---------- ---------- ---------- ----------- 446,555 89,014 127,729 104,968 5,641,837 ----------- ---------- ---------- ---------- ----------- $159,155,453 $38,330,421 $66,587,125 $53,689,534 $106,312,481 ============ =========== =========== =========== ============ $ 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 53,361,389 107,238,110 588,174 161,600 343,908 290,993 422,157 (2,628,163) (2,843,669) (1,071,309) (767,988) (1,668,339) 1,485,318 765,760 1,475,561 805,140 300,553 ----------- ---------- ---------- ---------- ----------- $159,155,453 $38,330,421 $66,587,125 $53,689,534 $106,312,481 ============ =========== =========== =========== ============ $ 99,155,453 $23,330,421 $41,587,125 $33,689,534 $ 66,312,481 ============= =========== =========== =========== ============= $13.67 $12.70 $13.95 $13.91 $13.71 ====== ====== ====== ====== ====== See accompanying notes to financial statements.
THE VOYAGEUR FUNDS STATEMENTS OF OPERATIONS (UNAUDITED) SIX MONTHS ENDED SEPTEMBER 30, 1996
VOYAGEUR MINNESOTA MUNICIPAL INCOME FUND, INC. ---------- Investment income: Interest . ............................................................................. $1,812,720 ---------- Expenses (note 4): Investment advisory and management fees................................................. 114,350 Administration fees..................................................................... 50,636 Remarketing agent fees.................................................................. 25,068 Audit and legal fees.................................................................... 10,471 Custodian and transfer agent fees....................................................... 12,831 Other expenses.......................................................................... 21,657 ---------- Total expenses....................................................................... 235,013 Less: Earnings credits on uninvested cash.............................................. (221) ---------- Total net expenses................................................................... 234,792 ---------- Investment income - net........................................................... 1,577,928 ---------- Realized and unrealized gain (loss) on investments: Realized loss on investments - net (note 3)............................................. (44,327) Change in unrealized appreciation or depreciation of investments - net.................. 328,718 ---------- Net gain on investments.............................................................. 284,391 ---------- NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS.............................. $1,862,319 ========== See accompanying notes to financial statements.
THE VOYAGEUR FUNDS STATEMENTS OF OPERATIONS (UNAUDITED) SIX MONTHS ENDED SEPTEMBER 30, 1996
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. ------------- -------------- ---------- ---- ---------- $4,680,027 $1,143,385 $1,856,551 $1,508,831 $2,900,706 ---------- ---------- ---------- ---------- ---------- 314,032 75,767 131,523 105,935 210,850 117,764 28,413 49,321 39,726 79,069 75,205 18,801 31,336 25,068 50,137 28,021 13,697 14,382 9,210 18,516 31,181 9,520 9,592 10,052 16,886 40,842 16,220 30,091 28,185 45,335 --------- ------- --------- --------- --------- 607,045 162,418 266,245 218,176 420,793 (9,478) (1,176) (2,802) (638) (9,010) --------- ------- --------- --------- --------- 597,567 161,242 263,443 217,538 411,783 --------- ------- --------- --------- --------- 4,082,460 982,143 1,593,108 1,291,293 2,488,923 --------- ------- --------- --------- --------- (99,173) (439,827) (344,992) (244,938) (1,454,811) 1,380,130 710,387 871,705 658,260 1,880,201 --------- ------- --------- --------- --------- 1,280,957 270,560 526,713 413,322 425,390 --------- ------- --------- --------- --------- $5,363,417 $1,252,703 $2,119,821 $1,704,615 $2,914,313 ========== ========== ========== ========== ========== 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 1996 MARCH 31, 1996 MARCH 31, (UNAUDITED) 1996 (UNAUDITED) 1996 ----------- ---- ----------- ---- OPERATIONS: Investment income - net........................... $ 1,577,928 $ 3,061,031 $ 4,082,460 $ 8,010,373 Realized gain (loss) on investments - net......... (44,327) 131,577 (99,173) 4,015 Change in unrealized appreciation or depreciation of investments - net............. 328,718 536,027 1,380,130 2,666,757 ---------- ---------- ----------- ------------ Net increase in net assets resulting from operations............................... 1,862,319 3,728,635 5,363,417 10,681,145 ---------- ---------- ----------- ------------ DISTRIBUTIONS TO: Common shareholders from investment income - net . (1,206,536) (2,413,073) (2,896,349) (5,765,503) Preferred shareholders from investment income - net (384,332) (766,760) (1,066,608) (2,299,902) ---------- ---------- ----------- ------------ Total distributions........................... (1,590,868) (3,179,833) (3,962,957) (8,065,405) ---------- ---------- ----------- ------------ Total increase in net assets.................. 271,451 548,802 1,400,460 2,615,740 Net assets at beginning of period................. 57,429,328 56,880,526 157,754,993 155,139,253 ---------- ---------- ----------- ------------ Net assets at end of period (including undistributed net investment income of $344,824 and $357,764, $588,174 and $468,671, $161,600 and $148,042, $343,908 and $273,140, $290,993 and $221,731, and $442,157 and $398,026, respectively)...... $57,700,779 $57,429,328 $159,155,453 $157,754,993 =========== =========== ============ ============ 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 1996 MARCH 31, 1996 MARCH 31, 1996 MARCH 31, 1996 MARCH 31, (UNAUDITED) 1996 (UNAUDITED) 1996 (UNAUDITED) 1996 (UNAUDITED) 1996 ----------- ---- ----------- ---- ----------- ---- ----------- ---- $ 982,143 $ 1,934,216 $ 1,593,108 $ 3,239,205 $ 1,291,293 $ 2,579,556 $ 2,488,923 $ 4,987,033 (439,827) (431,936) (344,992) 125,368 (244,938) (45,483) (1,454,811) 92,188 710,387 1,031,280 871,705 1,304,899 658,260 1,282,076 1,880,201 1,902,659 - ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- 1,252,703 2,533,560 2,119,821 4,669,472 1,704,615 3,816,149 2,914,313 6,981,880 - ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- (678,617) (1,327,377) (1,123,917) (2,180,735) (894,701) (1,750,040) (1,732,288) (3,385,973) (289,968) (578,328) (398,423) (937,463) (327,330) (750,558) (712,504) (1,534,220) ------------- ------------- (968,585) (1,905,705) (1,522,340) (3,118,198) (1,222,031) (2,500,598) (2,444,792) (4,920,193) ------------- ------------- ------------- ------------- ------------- 284,118 627,855 597,481 1,551,274 482,584 1,315,551 469,521 2,061,687 38,046,303 37,418,448 65,989,644 64,438,370 53,206,950 51,891,399 105,842,960 103,781,273 - ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- $38,330,421 $38,046,303 $66,587,125 $65,989,644 $53,689,534 $53,206,950 $106,312,481 $105,842,960 ============= ============= ============= ============= ============= ============= ============= ============= 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 ("1940 Act") (as amended) 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: USE OF ESTIMATES The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of net increases (decreases) in net assets from operations during the reporting period. Actual results could differ from those estimates. INVESTMENTS IN SECURITIES 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 limited geographical areas. Therefore, there may be more credit risk related to the economic conditions of a these areas than a portfolio with broader geographical diversification. SECURITIES PURCHASED ON A WHEN-ISSUED BASIS Delivery and payment for securities which have been purchased by the Funds on a forward commitment or when-issued basis can take place up to a month or more after the transaction date. During this period, such securities are subject to market fluctuations and the portfolio maintains, in a segregated account with its custodian, assets with a market value equal to or greater than the amount of its purchase commitments. 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 $696,527 and $851,427, $18,885,342 and $19,042,863, $10,880,557 and $11,070,027, $13,154,912 and $13,361,511, $28,890,878 and $28,890,064, and $40,476,828 and $40,913,353, respectively, for the six months ended September 30, 1996. (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. (Princeton 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, 1996. 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. During the six months ended September 30, 1996, Minnesota Municipal earned $221, Minnesota Municipal II earned $9,478, Minnesota Municipal III earned $1,176, Arizona Municipal earned $2,802, Florida Municipal earned $638 and Colorado Municipal earned $9,010 in credits on uninvested cash balances held by each Fund at the custodian. These credits were used to reduce various custodial services provided by the custodial bank. (5) CAPITAL SHARE 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, 1996 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. For the six months ended September 30, 1996 and for the year ended March 31, 1996, there were no transactions in common shares for the Funds. The Funds each have one 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 3.46% to 3.80% on Minnesota Municipal, from 3.45% to 3.70% on Minnesota Municipal II, from 3.46% to 3.80% on Minnesota Municipal III, from 3.30% to 3.80% on Arizona Municipal, from 3.43% to 3.80% on Florida Insured Municipal and from 3.45% to 3.75% on Colorado Insured Municipal during the six months ended September 30, 1996. 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 Fund 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 $28,421, $2,489,756, $2,403,842, $726,317, $523,050 and $213,528, respectively, at March 31, 1996, that will expire in years 2002 through 2005 if not offset by subsequent realized 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 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 YEAR MAY 1, SEPTEMBER 30, ENDED ENDED ENDED 1992* TO 1996 MARCH 31, MARCH 31, MARCH 31, MARCH 31, (UNAUDITED) 1996 1995 1994 1993** ----------- ---- ---- ---- ------ Net asset value: Beginning of period................................. $14.43 $14.21 $13.89 $14.67 $13.95 ------- ------ ------ ------ ------ Operations: Investment income - net............................. 0.60 1.18 1.21 1.20 0.90 Realized and unrealized gain (loss) on investments - net 0.11 0.26 0.34 (0.68) 1.00 ------- ------ ------ ------ ------ Total from operations............................. 0.71 1.44 1.55 0.52 1.90 ------- ------ ------ ------ ------ Distributions to: Common shareholders from investment income - net.... (0.46) (0.93) (0.93) (0.93) (0.70) Preferred shareholders from investment income - net. (0.15) (0.29) (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............................... (0.61) (1.22) (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....................................... $14.53 $14.43 $14.21 $13.89 $14.67 ======= ======= ====== ====== ====== Market value: End of period....................................... $14.75 $15.00 $14.50 $15.63 $16.00 ======= ====== ====== ====== ====== Total investment return: Market value (a).................................... 1.46% 10.31% (0.71)% 4.28% 20.31% Net asset value (b)................................. 4.00% 8.20% 9.72 % 1.63% 10.91% Net assets applicable to outstanding capital shares at end of period (000's omitted).................... $57,701 $57,429 $56,881 $56,034 $58,075 Ratios/Supplemental Data: Ratio of expenses to average net assets (c) (f)..... 0.82%(d) 0.82% 0.85% 0.78% 0.88%(d) Ratio of investment income - net to average net assets (c)............................ 5.51%(d) 5.28% 5.66% 5.22% 4.92%(d) Portfolio turnover rate (excluding short-term securities)............................ 1% 7% 13% 11% 43% Value of preferred shares outstanding (000's omitted) $20,000 $20,000 $20,000 $20,000 $20,000 Net asset coverage per share of preferred shares, end of period............................. $144,252 $143,573 $142,201 $140,086 $145,188 Liquidation value per share of preferred shares (e). $50,000 $50,000 $50,000 $50,000 $50,000 * Commencement of investment operations ** Initial period See accompanying notes to financial highlights.
(7) FINANCIAL HIGHLIGHTS (CONTINUED)
MINNESOTA MUNICIPAL II ---------------------- SIX MONTHS PERIOD FROM ENDED YEAR YEAR YEAR FEBRUARY 26, SEPTEMBER 30, ENDED ENDED ENDED 1993* TO 1996 MARCH 31, MARCH 31, MARCH 31, MARCH 31, (UNAUDITED) 1996 1995 1994 1993** ----------- ---- ---- ---- ------ Net asset value: Beginning of period................................. $13.48 $13.12 $12.73 $13.84 $13.95 ------- ------ ------ ------ ------ Operations: Investment income - net............................. 0.56 1.10 1.11 0.98 0.03 Realized and unrealized gain (loss) on investments - net 0.18 0.38 0.39 (0.96) (0.11) ------- ------ ------ ------ ------ Total from operations............................. 0.74 1.48 1.50 0.02 (0.08) ------- ------ ------ ------ ------ Distributions to: Common shareholders from investment income - net.... (0.40) (0.80) (0.83) (0.76) -- Preferred shareholders from investment income - net. (0.15) (0.32) (0.28) (0.18) -- Common shareholders from realized capital gains - net -- -- -- (0.02) -- Preferred shareholders from realized capital gains - net -- -- -- (0.00) -- ------- ------ ------ ------ ------ Total distributions............................... (0.55) (1.12) (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....................................... $13.67 $13.48 $13.12 $12.73 $13.84 ======= ====== ====== ====== ====== Market value: End of period....................................... $12.75 $13.25 $12.38 $14.63 $15.13 ======= ====== ====== ====== ====== Total investment return: Market value (a).................................... (0.72)% 14.16% (9.59)% 1.71% 8.42% Net asset value (b)................................. 4.47% 8.88% 10.16% (2.93)% (0.79)% Net assets applicable to outstanding capital shares at end of period (000's omitted).................... $159,155 $157,755 $155,139 $152,326 $100,392 Ratios/Supplemental Data: Ratio of expenses to average net assets (c) (f)..... 0.77%(d) 0.77% 0.77% 0.76% 0.83%(d) Ratio of investment income - net to average net assets (c)............................ 5.19%(d) 5.03% 5.39% 4.54% 2.29%(d) Portfolio turnover rate (excluding short-term securities)............................ 12% 11% 32% 27% 11% Value of preferred shares outstanding (000's omitted) $60,000 $60,000 $60,000 $60,000 -- Net asset coverage per share of preferred shares, end of period............................. $132,630 $131,462 $129,283 $126,938 -- 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. (7) FINANCIAL HIGHLIGHTS (CONTINUED)
MINNESOTA MUNICIPAL III ----------------------- SIX MONTHS PERIOD FROM ENDED YEAR YEAR OCTOBER 29, SEPTEMBER 30, ENDED ENDED 1993* TO 1996 MARCH 31, MARCH 31, MARCH 31, (UNAUDITED) 1996 1995 1994** ----------- ---- ---- ------ Net asset value: Beginning of period..................................... $12.54 $12.20 $11.86 $14.03 ------ ------ ------ ------ Operations: Investment income - net................................. 0.54 1.05 1.06 0.32 Realized and unrealized gain (loss) on investments - net 0.15 0.33 0.28 (1.88) ------ ------ ------ ------ Total from operations................................. 0.69 1.38 1.34 (1.56) ------ ------ ------ ------ Distributions to: Common shareholders from investment income - net........ (0.37) (0.72) (0.73) (0.25) Preferred shareholders from investment income - net..... (0.16) (0.32) (0.28) (0.06) ------ ------ ------ ------ Total distributions................................... (0.53) (1.04) (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........................................... $12.70 $12.54 $12.20 $11.86 ====== ====== ====== ====== Market value: End of period........................................... $11.88 $12.00 $11.25 $14.00 ====== ====== ====== ====== Total investment return: Market value (a)........................................ 2.09% 13.51% (14.27)% 1.53 % Net asset value (b)..................................... 4.31% 8.79% 9.55 % (13.85)% Net assets applicable to outstanding capital shares at end of period (000's omitted)........................ $38,330 $38,046 $37,418 $36,785 Ratios/Supplemental Data: Ratio of expenses to average net assets (c) (f)......... 0.86%(d) 0.81% 0.82% 0.90%(d) Ratio of investment income - net to average net assets (c)................................ 5.18%(d) 5.05% 5.37% 3.95%(d) Portfolio turnover rate (excluding short-term securities)................................ 29% 35% 47% 21% Value of preferred shares outstanding (000's omitted)... $15,000 $15,000 $15,000 $15,000 Net asset coverage per share of preferred shares, end of period................................. $127,768 $126,821 $124,728 $122,616 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. (7) FINANCIAL HIGHLIGHTS (CONTINUED)
ARIZONA MUNICIPAL ----------------- SIX MONTHS PERIOD FROM ENDED YEAR YEAR YEAR FEBRUARY 26, SEPTEMBER 30, ENDED ENDED ENDED 1993* TO 1996 MARCH 31, MARCH 31, MARCH 31, MARCH 31, (UNAUDITED) 1996 1995 1994 1993** ----------- ---- ---- ---- ------ Net asset value: Beginning of period................................... $13.74 $13.22 $12.70 $13.77 $13.95 ------- ------ ------ ------ ------ Operations: Investment income - net............................... 0.53 1.09 1.08 0.95 0.01 Realized and unrealized gain (loss) on investments - net 0.19 0.47 0.56 (0.79) (0.13) ------- ------ ------ ------ ------ Total from operations............................... 0.72 1.56 1.64 0.16 (0.12) ------- ------ ------ ------ ------ Distributions to: Common shareholders from investment income - net...... (0.38) (0.73) (0.78) (0.75) -- Preferred shareholders from investment income - net... (0.13) (0.31) (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) (1.04) (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......................................... $13.95 $13.74 $13.22 $12.70 $13.77 ======= ====== ====== ====== ====== Market value: End of period......................................... $12.50 $12.75 $12.13 $13.88 $15.13 ======= ====== ====== ====== ====== Total investment return: Market value (a)...................................... 1.02% 11.52% (6.43)% (2.91)% 8.42 % Net asset value (b)................................... 4.35% 9.55% 11.29 % (2.20)% (1.29)% Net assets applicable to outstanding capital shares at end of period (000's omitted)...................... $66,587 $65,990 $64,438 $62,881 $41,063 Ratios/Supplemental Data: Ratio of expenses to average net assets (c) (f)....... 0.81%(d) 0.78% 0.79% 0.82% 0.90%(d) Ratio of investment income - net to average net assets (c).............................. 4.84%(d) 4.88% 5.19% 4.41% 1.29%(d) Portfolio turnover rate (excluding short-term securities).............................. 20% 30% 18% 15% 0% Value of preferred shares outstanding (000's omitted). $25,000 $25,000 $25,000 $25,000 -- Net asset coverage per share of preferred shares, end of period............................. $133,174 $131,979 $128,877 $125,762 -- 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.
(7) FINANCIAL HIGHLIGHTS (CONTINUED)
FLORIDA INSURED MUNICIPAL ------------------------- SIX MONTHS PERIOD FROM ENDED YEAR YEAR YEAR FEBRUARY 26, SEPTEMBER 30, ENDED ENDED ENDED 1993* TO 1996 MARCH 31, MARCH 31, MARCH 31, MARCH 31, (UNAUDITED) 1996 1995 1994 1993** ----------- ---- ---- ---- ------ Net asset value: Beginning of period................................. $13.71 $13.17 $12.46 $13.73 $14.05 ------- ------ ------ ------ ------ Operations: Investment income - net............................. 0.53 1.06 1.07 0.96 0.01 Realized and unrealized gain (loss) on investments - net 0.17 0.51 0.69 (1.10) (0.25) ------- ------ ------ ------ ------ Total from operations............................. 0.70 1.57 1.76 (0.14) (0.24) ------- ------ ------ ------ ------ Distributions to: Common shareholders from investment income - net.... (0.37) (0.72) (0.77) (0.74) -- Preferred shareholders from investment income - net (0.13) (0.31) (0.28) (0.19) -- ------- ------ ------ ------ ------ Total distributions............................... (0.50) (1.03) (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....................................... $13.91 $13.71 $13.17 $12.46 $13.73 ======= ====== ====== ====== ====== Market value: End of period....................................... $12.38 $12.75 $12.25 $12.50 $15.13 ======= ====== ====== ====== ====== Total investment return: Market value (a).................................... (0.07)% 10.39% 4.69% (13.04)% 7.65% Net asset value (b)................................. 4.23 % 9.66% 12.56% (4.40)% (2.28)% Net assets applicable to outstanding capital shares at end of period (000's omitted).................... $53,690 $53,207 $51,891 $50,189 $33,247 Ratios/Supplemental Data: Ratio of expenses to average net assets (c) (f)..... 0.82%(d) 0.80% 0.81% 0.85% 0.90%(d) Ratio of investment income - net to average net assets (c)............................ 4.87%(d) 4.82% 5.21% 4.49% 1.24%(d) Portfolio turnover rate (excluding short-term securities)............................ 55% 22% 10% 20% 0% 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............................. $134,224 $133,017 $129,728 $125,473 -- 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.
S (7) FINANCIAL HIGHLIGHTS (CONTINUED)
COLORADO INSURED MUNICIPAL -------------------------- SIX MONTHS PERIOD FROM ENDED YEAR YEAR JULY 29, SEPTEMBER 30, ENDED ENDED 1993* TO 1996 MARCH 31, MARCH 31, MARCH 31, (UNAUDITED) 1996 1995 1994** ----------- ---- ---- ------ Net asset value: Beginning of period..................................... $13.61 $13.19 $12.80 $14.10 ------ ------ ------ ------ Operations: Investment income - net................................. 0.51 1.03 1.02 0.59 Realized and unrealized gain (loss) on investments - net 0.10 0.41 0.44 (1.19) ------ ------ ------ ------ Total from operations................................... 0.61 1.44 1.46 (0.60) ------ ------ ------ ------ Distributions to: Common shareholders from investment income - net........ (0.36) (0.70) (0.76) (0.39) Preferred shareholders from investment income - net..... (0.15) (0.32) (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) (1.02) (1.07) (0.50) ------ ------ ------ ------ Capital share transactions: Capital charge with respect to issuance of shares.......... -- -- -- (0.20) ------ ------ ------ ------ Net asset value: End of period........................................... $13.71 $13.61 $13.19 $12.80 ====== ====== ====== ====== Market value: End of period........................................... $12.38 $12.63 $12.25 $14.50 ====== ====== ====== ====== Total investment return: Market value (a)........................................ 0.84% 8.99% (10.05)% 5.52% Net asset value (b)..................................... 3.43% 8.55% 9.67 % (6.66)% Net assets applicable to outstanding capital shares at end of period (000's omitted)........................ $106,312 $105,843 $103,781 $101,923 Ratios/Supplemental Data: Ratio of expenses to average net assets (c) (f)......... 0.80% 0.75% 0.76% 0.78%(d) Ratio of investment income - net to average net assets (c).............................. 4.71% 4.68% 4.88% 4.26%(d) Portfolio turnover rate (excluding short-term securities).............................. 39% 39% 7% 3% Value of preferred shares outstanding (000's omitted)... $40,000 $40,000 $40,000 $40,000 Net asset coverage per share of preferred shares, end of period............................... $132,891 $132,304 $129,727 $127,404 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.
(7) FINANCIAL HIGHLIGHTS (CONTINUED) 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. (f) Beginning in the period ended March 31, 1996, the expense ratio reflects the effect of gross expenses attributable to earnings credits on uninvested cash balances received by the Funds. Prior period expense ratios have not been adjusted.
VOYAGEUR MINNESOTA MUNICIPAL INCOME FUND, INC. INVESTMENTS IN SECURITIES (UNAUDITED) SEPTEMBER 30, 1996 - ------------------------------------------------------------------------------------------------------------------------------------ PRINCIPAL AMOUNT COUPON MARKET ($000) NAME OF ISSUER (b) RATE MATURITY VALUE (a) - ------------------------------------------------------------------------------------------------------------------------------------ (PERCENTAGE OF EACH INVESTMENT CATEGORY RELATES TO TOTAL NET ASSETS.) MUNICIPAL BONDS (98.1%): EDUCATION REVENUE (9.2%): $1,000 Minnesota Higher Education Facilities Authority Revenue, Series 3-C, St. Thomas University ................................................................ 6.25% 09-01-16 $ 1,027,560 1,000 Minnesota Higher Education Facilities Authority Revenue, Series 3-J, Macalester College.................................................................... 6.40 03-01-22 1,053,100 250 Minnesota State University Board Revenue, Series A, State University System............... 6.05 06-30-18 254,825 1,075 Northfield, St. Olaf College Revenue...................................................... 6.30 10-01-12 1,122,300 1,750 Northfield, St. Olaf College Revenue...................................................... 6.40 10-01-21 1,835,855 ----------- 5,293,640 GENERAL OBLIGATION (16.4%): 1,000 Carver County, Series 1992-A.............................................................. 5.88 02-01-14 1,010,150 305 Edina Recreational Facilities Bonds, Series 1992-A........................................ 6.00 01-01-09 313,525 320 Edina Recreational Facilities Bonds, Series 1992-A........................................ 6.00 01-01-10 328,061 2,200 Hennepin County........................................................................... 5.75 10-01-10 2,255,242 1,600 Minneapolis............................................................................... 6.00 03-01-16 1,632,592 1,500 Minneapolis-St. Paul, Metro Airport Commission, AMT....................................... 6.60(f) 01-01-11 1,604,520 1,000 Rosemount Independent School District #196................................................ 5.70 04-01-12 1,008,760 1,250 St. Francis Independent School District #15 (FSA Insured)................................. 6.30 02-01-11 1,325,887 ----------- 9,478,737 HEALTH CARE REVENUE (15.0%): 1,000 Bloomington Health Care Facilities, Masonic Home Care Center (AMBAC Insured).............. 5.88 07-01-22 999,230 1,270 Duluth Economic Development Authority, Health Care Facilities Revenue, Series 1992, Duluth Clinic (AMBAC Insured)......................................................... 6.30 11-01-22 1,326,261 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 1,008,420 1,000 Duluth Economic Development Authority, Hospital Facilities Revenue, Series 1992-B, St. Luke's Hospital (Connie Lee Insured).............................................. 6.40 05-01-18 1,049,460 2,210 Minneapolis Hospital System Revenue, Fairview Hospital, Series 1991-A (MBIA Insured)........................................................................ 6.50 01-01-11 2,367,772 1,500 Minneapolis Hospital System Revenue, Fairview Hospital, Series 1993-A (MBIA Insured)........................................................................ 5.25 11-15-19 1,395,570 500 Minneapolis-St. Paul HRA, Health One (MBIA Insured)....................................... 6.75 08-15-14 542,945 ----------- 8,689,658 HOUSING REVENUE (23.8%): 2,000 Brooklyn Center, Multi-Family Housing Revenue, Four Courts, AMT........................... 7.50(f) 06-01-25 2,007,180 1,430 Minnesota HFA, Single Family Mortgage Revenue, Series 1991-A, AMT (FHA Insured)........... 7.45(f) 07-01-22 1,497,939 590 Minnesota HFA, Single Family Mortgage Revenue, Series 1992-G.............................. 6.50 07-01-06 608,744 2,725 Minnetonka Senior Housing Project (Guaranteed by Presbyterian Homes of Minnesota)......... 7.70 06-01-25 2,795,441 1,400 New Brighton Multi-Family Mortgage Revenue, Polynesian Village Apartments, Series 1995-A, AMT.................................................................... 7.60(f) 04-01-25 1,416,128 2,265 St. Anthony Multi-Family Housing Development (Asset Guaranty Insured)..................... 6.88 07-01-22 2,373,290 2,950 St. Paul HRA, Multi-Family Housing Revenue, Pointe of St. Paul Project, Series 1992 (FNMA Backed) ............................................................ 6.60 10-01-12 3,066,879 ----------- 13,765,601 INDUSTRIAL REVENUE (6.2%): 2,575 Bass Brook PCR, Minnesota Power and Light................................................. 6.00 07-01-22 2,540,495 1,000 Metropolitan Council Sports Facilities Commission, Hubert H. Humphrey Metrodome........... 6.00 10-01-09 1,033,320 ----------- 3,573,815 POLLUTION CONTROL REVENUE (2.8%): 1,500 Minnesota Public Facilities Authority, Water Pollution Control Revenue, Series 1992....... 6.50 03-01-14 1,612,230 ----------- PRE-REFUNDED/ESCROWED (9.6%): 2,555 Dakota & Washington Counties HRA, Single Family Mortgage Revenue, Bloomington, AMT (GNMA Backed)........................................................ 8.38(f) 09-01-21 3,234,528 730 Duluth Economic Development Authority, Health Care Facilities Revenue, Series 1992, Duluth Clinic (AMBAC Insured)........................................................ 6.30 11-01-04 795,992 1,000 St. Cloud Hospital Revenue (AMBAC Insured)................................................ 6.75 07-01-01 1,102,350 390 Southern Minnesota Municipal Power Agency (AMBAC Insured)................................. 5.50 01-01-15 384,665 ----------- 5,517,535 TRANSPORTATION REVENUE (1.2%): 700 Puerto Rico Commonwealth, Highway & Transportation Authority.............................. 5.50 07-01-26 665,581 ----------- UTILITY REVENUE (13.9%): 1,000 Anoka County Solid Waste Disposal, National Rural Co-Op Utility, AMT...................... 6.95(f) 12-01-08 1,065,770 1,500 Northern Minnesota Municipal Power Agency, Electric System, Series A...................... 5.00 01-01-21 1,337,520 1,250 Northern Minnesota Municipal Power Agency, Electric System, Series B (AMBAC Insured)....................................................................... 5.50 01-01-18 1,225,338 1,000 Southern Minnesota Municipal Power Agency (FGIC Insured).................................. 5.75 01-01-11 1,024,380 610 Southern Minnesota Municipal Power Agency (AMBAC Insured)................................. 5.50 01-01-15 596,885 580 Southern Minnesota Municipal Power Agency (FGIC Insured).................................. 5.00 01-01-16 534,772 2,275 Western Minnesota Municipal Power Agency (MBIA Insured)................................... 5.50 01-01-15 2,226,087 ----------- 8,010,752 TOTAL MUNICIPAL BONDS (cost: $54,656,911) 56,607,549 ----------- SHORT-TERM SECURITIES (0.3%): 170 Federated Minnesota Municipal Cash Trust.................................................. 3.52(c) 170,000 ----------- TOTAL SHORT-TERM SECURITIES (cost: $170,000) 170,000 ----------- TOTAL INVESTMENTS IN SECURITIES (cost: $54,826,911) (d) $56,777,549 =========== See accompanying notes to investments in securities.
VOYAGEUR MINNESOTA MUNICIPAL INCOME FUND II, INC. INVESTMENTS IN SECURITIES (UNAUDITED) SEPTEMBER 30, 1996 - ----------------------------------------------------------------------------------------------------------------------------------- PRINCIPAL AMOUNT COUPON MARKET ($000) NAME OF ISSUER (b) RATE MATURITY VALUE (a) - ----------------------------------------------------------------------------------------------------------------------------------- (PERCENTAGE OF EACH INVESTMENT CATEGORY RELATES TO TOTAL NET ASSETS.) MUNICIPAL BONDS (98.5%): EDUCATION REVENUE (7.8%): $1,250 Minnesota Higher Education Facilities Authority Revenue, Macalester College............... 5.55% 03-01-16 $ 1,233,863 1,000 Minnesota Higher Education Facilities Authority Revenue, Series 4A-1, St. Thomas University................................................................. 5.63 10-01-21 975,760 1,050 Minnesota Higher Education Facilities Authority Revenue, Series R1, St. Thomas University................................................................. 5.60 10-01-15 1,031,930 275 Minnesota Higher Education Facilities Authority Revenue, Series R2, St. Thomas University................................................................. 5.60 09-01-14 270,710 1,150 Minnesota State University Board Revenue, Series 1993-A, State University System.......... 6.10 06-30-23 1,172,724 4,115 Minnesota State University Board Revenue, Series 1993-C, State University System (MBIA Insured)........................................................................ 5.60 06-30-16 4,085,454 3,720 Minnesota State University Board Revenue, Series 1993-C, State University System (MBIA Insured)........................................................................ 5.60 06-30-19 3,653,933 ------------ 12,424,374 GENERAL OBLIGATION (15.3%): 3,700 Becker, AMT (MBIA Insured)................................................................ 6.25(f) 08-01-15 3,857,657 4,030 Buffalo Independent School District (FSA Insured)......................................... 6.15 02-01-22 4,120,635 550 Esko Independent School District (FSA Insured)............................................ 5.65 04-01-12 555,043 1,000 Hawley Independent School District (FSA Insured).......................................... 5.75 02-01-17 1,005,650 3,225 Melrose Independent School District #740, Series A (FSA Insured).......................... 5.63 02-01-13 3,232,805 3,000 Minneapolis Convention Center Facilities.................................................. 5.40 04-01-12 2,966,520 1,000 Minnesota State........................................................................... 5.38 08-01-11 990,850 2,925 Red Wing Independent School District #256, Series 1993-A.................................. 5.70 02-01-12 2,951,033 1,625 Red Wing Independent School District #256, Series 1993-A.................................. 5.70 02-01-13 1,636,001 1,270 Rosemount Independent School District #196................................................ 5.70 04-01-12 1,281,125 1,705 Stewartville Independent School District #534............................................. 5.75 02-01-17 1,705,972 ------------ 24,303,291 HEALTH CARE REVENUE (17.8%): 4,000 Bloomington Health Care Facilities, Masonic Home Care Center (AMBAC Insured).............. 5.88 07-01-22 3,996,920 1,195 Brainerd Lutheran Hospital, Health Care Facilities, Series A (FSA Insured)................ 6.65 03-01-17 1,281,052 1,250 Detroit Lakes Benedictine Health Systems, St. Mary's Hospital (Connie Lee Insured)........ 6.00 02-15-19 1,257,250 720 Duluth Economic Development Authority, Hospital Facilities Revenue, Duluth Clinic (AMBAC Insured)......................................................... 6.20 11-01-12 749,642 3,890 Duluth Economic Development Authority, Hospital Facilities Revenue, Series 1992, Duluth Clinic (AMBAC Insured) ........................................................ 6.30 11-01-22 4,062,327 6,000 Duluth Economic Development Authority, Hospital Facilities Revenue, Series 1993-C, St. Mary's Hospital (Connie Lee Insured).............................................. 6.00 02-15-20 6,050,520 1,000 Minneapolis Health Care Facilities, Series 1993-A, Fairview Hospital (MBIA Insured)....... 5.25 11-15-19 930,380 2,105 Minneapolis Housing and Redevelopment Authority, Health One (MBIA Insured)................ 7.40 08-15-11 2,320,278 1,500 Minneapolis-St. Paul HRA, Childrens Health Care (FSA Insured )............................ 5.50 08-15-25 1,437,195 6,480 Robbinsdale North Memorial Medical Center, Series 1993-B (AMBAC Insured).................. 5.50 05-15-23 6,209,006 ------------ 28,294,570 HOUSING REVENUE (21.2%): 1,105 Chanhassen Multi-Family Housing, Heritage Park Project (FHA Insured)...................... 6.20 07-01-30 1,104,867 1,880 Dakota County HRA, Multi-Family Mortgage Revenue, Imperial Ridge Project, Series 1993-A (GNMA Backed)........................................................... 6.10 12-15-28 1,896,206 1,300 Minneapolis Multi-Family Housing Revenue, Olson Townhomes, Section 8, AMT................. 6.00(f) 12-01-19 1,260,363 1,115 Minnesota HFA, Multi-Family Rental Housing, Series-D...................................... 5.90 02-01-14 1,118,702 2,295 Minnesota HFA, Multi-Family Rental Housing, Series-D...................................... 6.00 08-01-22 2,294,771 1,550 Minnesota HFA, Single Family Housing, Series 1994-F....................................... 6.30 07-01-25 1,586,890 1,715 Minnesota HFA, Single Family Mortgage Revenue, AMT........................................ 7.05(f) 07-01-22 1,781,302 4,160 Minnesota HFA, Single Family Mortgage Revenue, Series 1992-B2, AMT........................ 6.15(f) 01-01-26 4,153,926 4,205 Minnesota HFA, Single Family Mortgage Revenue, Series 1992-C2, AMT........................ 6.15(f) 07-01-23 4,199,029 3,845 Minnesota HFA, Single Family Mortgage Revenue, Series 1994-J, AMT......................... 6.95(f) 07-01-26 4,009,528 1,225 Minnetonka Senior Housing Project (Guaranteed by Presbyterian Homes of Minnesota)......... 7.25 06-01-09 1,273,106 760 Minnetonka Senior Housing Project (Guaranteed by Presbyterian Homes of Minnesota)......... 7.50 06-01-14 787,884 2,365 Minnetonka Senior Housing Project (Guaranteed by Presbyterian Homes of Minnesota)......... 7.55 06-01-19 2,426,561 3,820 New Brighton, Multi-Family Mortgage Revenue, Polynesian Village Apartments, Series 1995-A, AMT.................................................................... 7.60(f) 04-01-25 3,864,006 2,000 St. Paul HRA, Single Family Mortgage Revenue (FNMA Backed)................................ 6.40 03-01-21 2,056,500 ------------ 33,813,641 INDUSTRIAL REVENUE (8.3%): 7,660 Bass Brook PCR, Minnesota Power and Light................................................. 6.00 07-01-22 7,557,356 5,520 Metropolitan Council Sports Facilities Commission, Hubert H. Humphrey Metrodome........... 6.00 10-01-09 5,703,926 ------------ 13,261,282 POLLUTION CONTROL REVENUE (2.9%): 1,000 Minnesota Public Facilities Authority, Water Pollution Control Revenue Bonds.............. 6.25 03-01-16 1,048,580 3,300 Minnesota Public Facilities Authority, Water Pollution Control Revenue Bonds, Series 1992.......................................................................... 6.50 03-01-14 3,546,906 ------------ 4,595,486 PRE-REFUNDED/ESCROWED (12.8%): 5,500 Dakota & Washington Counties HRA, Single Family Mortgage Revenue, Bloomington, AMT (GNMA Backed)........................................................ 8.38(f) 09-01-21 6,962,780 280 Duluth Economic Development Authority, Hospital Facilities Revenue, Duluth Clinic (AMBAC Insured)......................................................... 6.20 11-01-04 303,425 1,300 Duluth Economic Development Authority, Hospital Facilities Revenue, Series 1992, Duluth Clinic (AMBAC Insured)............................................ 6.30 11-01-04 1,417,520 4,200 St. Paul, Sales Tax Revenue, Civic Center (MBIA Insured).................................. 5.55 11-01-23 4,025,154 2,300 St. Paul HRA, Sales Tax Revenue, Civic Center............................................. 5.55 11-01-23 2,201,836 3,715 Southern Minnesota Municipal Power Agency Power Supply.................................... 5.75 07-01-16 3,737,327 1,535 Western Minnesota Municipal Power Agency.................................................. 6.63 01-01-16 1,678,661 ------------ 20,326,703 TRANSPORTATION REVENUE (3.6%): 6,000 Puerto Rico Commonwealth, Highway & Transportation Authority.............................. 5.50 07-01-26 5,704,980 ------------ UTILITY REVENUE (8.8%): 7,205 Northern Minnesota Municipal Power Agency, Electric System, Series B (AMBAC Insured)....................................................................... 5.50 01-01-18 7,062,845 2,000 Puerto Rico Electric, Power Authority..................................................... 5.25 07-01-21 1,824,460 3,565 Southern Minnesota Municipal Power Agency (FGIC Insured).................................. 5.75 01-01-18 3,560,294 1,605 Western Minnesota Municipal Power Agency (MBIA Insured)................................... 5.50 01-01-15 1,570,492 ------------ 14,018,091 TOTAL INVESTMENTS IN SECURITIES (cost: $155,257,100) (d) $156,742,418 ============ See accompanying notes to investments in securities.
VOYAGEUR MINNESOTA MUNICIPAL INCOME FUND III, INC. INVESTMENTS IN SECURITIES (UNAUDITED) SEPTEMBER 30, 1996 - -------------------------------------------------------------------------------------------------------------------------------- PRINCIPAL AMOUNT COUPON MARKET ($000) NAME OF ISSUER (b) RATE MATURITY VALUE (a) - -------------------------------------------------------------------------------------------------------------------------------- (PERCENTAGE OF EACH INVESTMENT CATEGORY RELATES TO TOTAL NET ASSETS.) MUNICIPAL BONDS (97.9%): EDUCATION REVENUE (11.7%): 1,010 Minnesota Higher Education Facilities Authority Revenue, Series 4A-1, St. Thomas University...................................................... 5.63% 10-01-21 $ 985,518 1,000 Minnesota Higher Education Facilities Authority Revenue, Series R1, St. Thomas University...................................................... 5.60 10-01-15 982,790 1,000 Minnesota Higher Education Facilities, Series 3-Q, St. Mary's College.......... 6.15 10-01-23 1,000,680 1,275 Minnesota Higher Education Facilities, Series 3-W, St. Benedict College........ 6.38 03-01-20 1,296,356 200 Minnesota Higher Education Facilities, Series 4-C, Macalester College.......... 5.50 03-01-12 194,126 ----------- 4,459,470 GENERAL OBLIGATION (13.0%): 2,245 Esko Independent School District (FSA Insured)................................. 5.75 04-01-17 2,256,607 1,000 Prior Lake Independent School District (FGIC Insured).......................... 5.25 02-01-16 956,630 1,750 Red Wing Independent School District #256, Series 1993-A....................... 5.70 02-01-11 1,767,430 ----------- 4,980,667 HEALTH CARE REVENUE (14.8%): 1,080 Duluth Economic Development Authority, Hospital Facilities Revenue, Duluth Clinic (AMBAC Insured).............................................. 6.20 11-01-12 1,124,464 2,000 Princeton, Fairview Hospital Revenue, Series 1991-C (MBIA Insured)............. 6.25 01-01-21 2,075,200 1,500 Robbinsdale, North Memorial Medical Center, Series 1993-B (AMBAC Insured)...... 5.50 05-15-23 1,437,270 1,000 Wadena County Health Care Facilities Revenue................................... 7.75 09-01-24 1,030,430 ----------- 5,667,364 HOUSING REVENUE (23.6%): 1,000 Brooklyn Center, Multi-Family Housing Revenue, Four Courts, AMT................ 7.50(f) 06-01-25 1,003,590 2,000 Burnsville Multi-Family Mortgage Revenue, Series A (FSA Insured) .............. 7.10 01-01-30 2,126,560 1,000 Edina HRA, Edina Park Plaza (FHA Insured)...................................... 7.70 12-01-28 1,052,130 1,000 Minneapolis, Findley Place, Series 1994, AMT................................... 7.00(f) 12-01-16 1,048,800 1,425 Minneapolis Multi-Family Housing Revenue, Olson Townhomes, AMT................. 6.00(f) 12-01-19 1,381,552 1,585 Minnesota HFA, Single Family Mortgage Revenue, Series 1991-A, AMT (FHA Insured) 7.45(f) 07-01-22 1,660,303 750 Minnesota HFA, Single Family Mortgage Revenue, Series C, AMT (FHA Insured)..... 9.00(f) 08-01-18 779,212 ----------- 9,052,147 INDUSTRIAL REVENUE (11.1%): 1,505 Bass Brook PCR, Minnesota Power and Light...................................... 6.00 07-01-22 1,484,833 2,820 Minnesota Public Facility Authority, Water Pollution Control................... 5.40 03-01-15 2,777,841 ----------- 4,262,674 PRE-REFUNDED/ESCROW (11.7%): 420 Duluth Economic Development Authority, Hospital Facilities Revenue, Duluth Clinic (AMBAC Insured).............................................. 6.20 11-01-04 455,137 1,300 St. Paul HRA, Sales Tax Revenue, Civic Center ................................. 5.55 11-01-23 1,245,881 2,580 University of Minnesota Hospital............................................... 6.75 12-01-16 2,797,984 ----------- 4,499,002 TRANSPORTATION REVENUE (3.2%): 1,300 Puerto Rico Commonwealth, Highway & Transportation Authority................... 5.50 07-01-26 1,236,079 ----------- UTILITY REVENUE (8.8%): 1,500 Moorhead Public Utilities Revenue (MBIA Insured)............................... 6.25 11-01-12 1,559,010 1,800 Southern Minnesota Municipal Power Agency (FGIC Insured)....................... 5.75 01-01-18 1,797,624 ----------- 3,356,634 TOTAL MUNICIPAL BONDS (cost: $36,748,277) 37,514,037 ----------- SHORT-TERM SECURITIES (0.5%): 210 Federated Minnesota Municipal Cash Trust...................................... 3.52(c) 210,000 ----------- TOTAL SHORT-TERM SECURITIES (cost: $210,000) 210,000 ----------- TOTAL INVESTMENTS IN SECURITIES (cost: $36,958,277) (d) $37,724,037 =========== See accompanying notes to investments in securities.
VOYAGEUR ARIZONA MUNICIPAL INCOME FUND, INC. INVESTMENTS IN SECURITIES (UNAUDITED) SEPTEMBER 30, 1996 - ------------------------------------------------------------------------------------------------------------------------------------ PRINCIPAL AMOUNT COUPON MARKET ($000) NAME OF ISSUER (b) RATE MATURITY VALUE (a) - ------------------------------------------------------------------------------------------------------------------------------------ (PERCENTAGE OF EACH INVESTMENT CATEGORY RELATES TO TOTAL NET ASSETS.) ARIZONA MUNICIPAL BONDS (98.7%): EDUCATION REVENUE (5.2%): $1,395 Maricopa County, Washington Elementary Unified School District #6 (AMBAC Insured).........5.38% 07-01-14 $ 1,369,067 1,000 University of Arizona.....................................................................6.25 06-01-11 1,051,430 1,000 University of Arizona.....................................................................6.35 06-01-14 1,061,450 ----------- 3,481,947 GENERAL OBLIGATION (31.6%): 1,500 Eagle Mountain Community Facilities, District A2..........................................6.40 07-01-17 1,526,175 3,400 Maricopa County, Alhambra Elementary School District #68 (AMBAC Insured)..................5.63 07-01-13 3,410,166 3,000 Maricopa County Unified School District #11...............................................5.50 07-01-10 2,945,850 1,500 Maricopa County Unified School District #41...............................................6.25 07-01-15 1,584,300 2,000 Maricopa County Unified School District #48...............................................5.00 07-01-10 1,907,940 1,800 Mesa General Obligation Project of 1987 (MBIA Insured)....................................5.70 07-01-08 1,842,822 1,500 Mohave County Unified School District #1 (FGIC Insured)...................................5.90 07-01-15 1,527,870 2,000 Pima County Unified School District #6 (FGIC Insured).....................................5.75 07-01-12 2,035,560 600 Santa Cruz Valley Unified School District #35 (AMBAC Insured).............................5.80 07-01-09 618,366 1,000 Tempe, Series B...........................................................................6.00 07-01-12 1,021,570 1,000 Tucson....................................................................................5.38 07-01-20 968,000 1,630 Yavapai County Unified School District #22 (FGIC Insured).................................5.95 07-01-14 1,671,484 ----------- 21,060,103 HEALTH CARE REVENUE (14.5%): 1,500 Arizona Hospital Health Facilities Authority (MBIA Insured)...............................6.25 09-01-11 1,572,720 1,750 Maricopa County Health Facilities, Catholic Health Care West, Series A (MBIA Insured) 5.75 07-01-11 1,760,693 1,100 Maricopa County Health Facilities, Catholic Health Care West, Series A (MBIA Insured) 6.00 07-01-21 1,110,043 300 Maricopa County Industrial Development Authority, Baptist Hospital (MBIA Insured).........5.50 09-01-13 296,088 500 Mohave County Industrial Development Authority, Baptist Hospital (MBIA Insured)...........5.50 09-01-21 480,970 150 Mohave County Baptist Hospital (MBIA Insured).............................................5.75 09-01-26 148,093 1,500 Scottsdale Industrial Development Authority, Scottsdale Memorial Hospital (AMBAC Insured).......................................................................5.25 09-01-18 1,416,045 1,360 University of Arizona Medical Center (MBIA Insured).......................................5.00 07-01-13 1,266,337 700 University of Arizona Medical Center (MBIA Insured).......................................6.25 07-01-16 728,672 1,000 University of Arizona Medical Center (MBIA Insured).......................................5.00 07-01-21 896,690 ----------- 9,676,351 HOUSING REVENUE (6.3%): 1,230 Peoria Multi-Family Housing Mortgage Revenue (GNMA Backed)................................7.30 02-20-28 1,321,032 500 Phoenix Industrial Development Authority, Multi-Family Mortgage Revenue (FHA Insured).........................................................................6.80 11-01-25 518,170 2,305 Tempe Industrial Development Authority, Multi-Family Mortgage Revenue (FHA Insured).........................................................................6.13 06-01-10 2,371,061 ----------- 4,210,263 INDUSTRIAL REVENUE (4.1%): 1,750 Maricopa County Stadium District (MBIA Insured)...........................................5.50 07-01-13 1,744,155 1,000 Navajo County Pollution Control Corporation (AMBAC Insured)...............................5.50 08-15-28 957,960 ----------- LEASE REVENUE (3.6%): 2,300 Scottsdale Municipal Property Corporation (FGIC Insured)..................................6.25 11-01-14 2,384,456 ----------- SALES TAX REVENUE (3.4%): 2,290 Oro Valley, Canada Hills Water Revenue (MBIA Insured).....................................5.45 07-01-14 2,266,688 ----------- TRANSPORTATION REVENUE (11.1%): 1,000 Arizona State Transportation Board........................................................5.25 07-01-09 990,750 1,300 City of Phoenix, Junior Lien Street & Highway (FGIC Insured)..............................6.25 07-01-11 1,370,798 2,000 Tucson Airport Authority Revenue Funding (MBIA Insured)...................................5.70 06-01-13 2,008,500 3,000 Tucson Street & Highway User Revenue (MBIA Insured).......................................5.50 07-01-12 3,001,770 ----------- 7,371,818 UTILITY REVENUE (18.9%): 1,050 Chandler Water & Sewer (FGIC Insured).....................................................5.00 07-01-08 1,019,046 1,150 Chandler Water & Sewer (FGIC Insured).....................................................5.00 07-01-09 1,104,828 2,000 Phoenix Civic Improvement Corporation (AMBAC Insured).....................................5.50 07-01-21 1,939,360 1,000 Phoenix Civic Improvement Corporation, Water System Revenue, Junior Lien..................5.60 07-01-18 993,690 2,000 Phoenix Water System Revenue..............................................................5.50 07-01-22 1,940,880 2,000 Salt River Project, Electric System Revenue...............................................6.25 01-01-27 2,070,380 3,500 Tucson Water Revenue Refunding, Series A (FGIC Insured)...................................5.75 07-01-18 3,503,990 ----------- 12,572,174 TOTAL INVESTMENTS IN SECURITIES (cost: $64,250,354) (d) $65,725,915 =========== See accompanying notes to investments in securities.
VOYAGEUR FLORIDA INSURED MUNICIPAL INCOME FUND INVESTMENTS IN SECURITIES (UNAUDITED) SEPTEMBER 30, 1996 - ------------------------------------------------------------------------------------------------------------------------------------ PRINCIPAL AMOUNT COUPON MARKET ($000) NAME OF ISSUER (b) RATE MATURITY VALUE (a) - ------------------------------------------------------------------------------------------------------------------------------------ (PERCENTAGE OF EACH INVESTMENT CATEGORY RELATES TO TOTAL NET ASSETS.) FLORIDA MUNICIPAL BONDS (98.0%): CERTIFICATES OF PARTICIPATION (13.1%) $1,000 Dade County School Board Revenue, (AMBAC Insured).........................................5.60% 08-01-17 $ 990,210 5,000 Escambia County School District Revenue (MBIA Insured)....................................5.50 02-01-22 4,840,350 1,250 St. Lucie School Board Revenue (FSA Insured)..............................................5.38 07-01-19 1,189,287 ----------- 7,019,847 EDUCATION (2.3%): 1,250 State of Florida Board of Regents, University System Improvements Revenue (MBIA Insured)........................................................................5.63 07-01-21 1,235,887 ----------- GENERAL OBLIGATION (2.0%): 1,000 Dade County Seaport (AMBAC Insured).......................................................6.25 10-01-21 1,080,490 ----------- HEALTH CARE (19.8%): 1,000 Hillsborough County Industrial Development Authority Revenue, Alleghany Health System (MBIA Insured)........................................................................5.75 12-01-21 980,370 2,500 Lakeland Hospital System Revenue, Lakeland Regional Medical Center (FGIC Insured)........................................................................5.75 11-15-15 2,476,925 2,000 Orange County Health Facilities Authority Revenue, Adventist Health System (AMBAC Insured)......................................................................5.50 11-15-15 1,937,800 1,500 Orange County Health Facilities Authority Revenue, Adventist Health System (AMBAC Insured)......................................................................5.75 11-15-25 1,481,085 1,500 Palm Beach County Health Facilities Authority Revenue, Jupiter Medical Center Project (FSA Insured).................................................................5.25 08-01-18 1,401,975 2,405 Venice Health Care Revenue, Bon Secours Health System Project (MBIA Insured)..............5.60 08-15-16 2,359,618 ----------- 10,637,773 HOUSING (9.6%): 2,510 Florida State Housing Revenue, Leigh Meadows Project (AMBAC Insured)......................6.30 09-01-36 2,520,266 1,120 Florida State Housing Revenue, Woodbridge Project (AMBAC Insured).........................6.05 12-01-16 1,126,597 1,500 Florida State Housing Revenue, Woodbridge Project (AMBAC Insured).........................6.25 12-01-36 1,506,180 ----------- 5,153,043 PRE-REFUNDED/ESCROWED (2.5%): 1,250 Palm Beach County Health Facilities Authority Revenue, JFK (FSA Insured).................5.75 12-01-03 1,338,225 ----------- SALES TAX & MISCELLANEOUS REVENUE (20.4%): 1,500 Boca Raton Community Redevelopment Tax Increment Revenue, Minzer Park Project (FGIC Insured)........................................................................5.88 03-01-13 1,523,775 1,000 Dade County Professional Sports Franchise Facilities Revenue, (FGIC Insured)..............6.00 10-01-22 1,017,780 1,000 Miami Beach Resort Tax Revenue (AMBAC Insured)............................................5.50 10-01-16 979,810 3,000 Orange County Public Service Tax Revenue (FGIC Insured)...................................6.00 10-01-24 3,067,890 1,000 Orange County Sales Tax Revenue (FGIC Insured)............................................6.13 01-01-19 1,018,500 2,300 Reedy Creek Improvement District Revenue (MBIA Insured)...................................5.75 06-01-13 2,327,968 1,000 Tampa Utilities Tax Revenue (AMBAC Insured)...............................................6.00 10-01-15 1,013,760 ----------- 10,949,483 TRANSPORTATION (5.7%): 1,500 Dade County Aviation Revenue (MBIA Insured)...............................................5.60 10-01-26 1,476,435 1,600 Hillsborough County Aviation Authority Revenue, Tampa International Airport (FGIC Insured)........................................................................5.60 10-01-19 1,567,584 ----------- 3,044,019 UTILITY REVENUE (22.6%): 1,000 City of Panama, Beach Water & Sewer (AMBAC Insured).......................................5.50 06-01-18 969,160 1,700 Florida Keys Aqueduct Water Revenue (AMBAC Insured).......................................5.25 09-01-21 1,592,356 1,250 Florida State Municipal Power Agency Revenue, St. Lucie Project (FGIC Insured)........................................................................5.70 10-01-16 1,236,775 1,500 Indian River County Water & Sewer Revenue (FGIC Insured)..................................5.50 09-01-16 1,469,715 1,000 Kissimmee Utility Authority Revenue, Electrical Systems Improvement (FGIC Insured)........................................................................5.50 10-01-15 980,380 1,500 Sarasota County Utility System Revenue (FGIC Insured).....................................5.50 10-01-22 1,436,070 2,000 Seacoast Utility Authority, Water & Sewer Revenue (FGIC Insured)..........................5.50 03-01-16 1,988,100 2,500 Sunrise Utility System Revenue (AMBAC Insured)............................................5.75 10-01-26 2,496,450 ----------- 12,169,006 TOTAL FLORIDA MUNICIPAL BONDS (cost: $51,822,633) 52,627,773 ----------- SHORT-TERM SECURITIES (0.6%): 310 Federated Tax-Free Obligations Fund.......................................................3.62(c) 310,000 ----------- TOTAL SHORT-TERM SECURITIES (cost: $310,000) 310,000 ----------- TOTAL INVESTMENTS IN SECURITIES (cost: $52,132,633) (d) $52,937,773 =========== See accompanying notes to investments in securities.
VOYAGEUR COLORADO INSURED MUNICIPAL INCOME FUND, INC. INVESTMENTS IN SECURITIES (UNAUDITED) SEPTEMBER 30, 1996 - ---------------------------------------------------------------------------------------------------------------------------------- PRINCIPAL AMOUNT COUPON MARKET ($000) NAME OF ISSUER (b) RATE MATURITY VALUE (a) - ---------------------------------------------------------------------------------------------------------------------------------- (PERCENTAGE OF EACH INVESTMENT CATEGORY RELATES TO TOTAL NET ASSETS.) COLORADO MUNICIPAL BONDS (97.9%): CERTIFICATES OF PARTICIPATION (1.9%): $2,000 Araphoe County Colorado Library District (MBIA Insured)..................................5.70% 12-15-10 $ 2,030,120 ------------ EDUCATION REVENUE (13.0%): 1,000 Colorado Mountain College Residence Hall Authority Revenue (MBIA Insured).................5.75 06-01-23 994,510 4,000 Colorado Postsecondary Education Facility Authority Revenue, University of Denver Project (Connie Lee Insured).....................................6.00 03-01-16 3,977,080 2,500 Colorado State Board of Agriculture Revenue Refunding, Colorado State University, Auxiliary Facilities (MBIA Insured)........................6.40 03-01-11 2,637,100 1,250 Colorado State Board of Agriculture Revenue Refunding & Improvement, Fort Lewis College (FGIC Insured)........................................6.50 10-01-12 1,340,850 500 Colorado State Board Community College &* Occupational Education Revenue (AMBAC Insured).......................................................................5.75 11-01-11 511,080 2,000 Colorado State Colleges Board of Trustees, Adams State College (MBIA Insured).............5.75 05-15-19 1,989,820 1,330 Colorado State Colleges Board of Trustees, Mesa State College Series A (MBIA Insured) 5.75 05-15-11 1,356,494 1,000 University of Colorado, University Revenue, Research Building Revolving Fund (MBIA Insured)........................................................................6.13 06-01-12 1,039,540 ------------ 13,841,344 GENERAL OBLIGATION (29.0%): 2,350 Adams & Weld Counties School District #275, Brighton (FGIC Insured).......................5.60 12-01-12 2,355,217 3,000 Boulder Larimer & Weld Counties, St. Vrain Vy School District Revenue Refunding, Series A (MBIA Insured)............................................6.00 12-15-10 3,110,340 2,350 Denver City & County School District #1 Refunding, Series A (MBIA Insured)................5.13 12-01-12 2,234,732 225 El Paso County School District #020 (FSA Insured).........................................5.55 12-15-14 224,469 3,750 Highlands Ranch Metropolitan District #2 Revenue Refunding (FSA Insured)..................5.00 06-15-16 3,490,387 5,075 Jefferson County School District #R-001 (AMBAC Insured )..................................6.00 12-15-12 5,240,293 2,435 Jefferson County School District #R-001 (AMBAC Insured)...................................6.25 12-15-12 2,549,713 3,450 LaPlata County School District #9-R Durango (MBIA Insured)................................5.25 11-01-17 3,276,948 1,000 Larimer County School District #R 1, Poudre Improvement (MBIA Insured)....................5.63 12-15-12 1,006,430 1,000 Larimer & Weld Counties School District #Re-5J (AMBAC Insured)............................5.75 11-15-20 997,340 1,700 Larimer & Weld Counties School District #Re-5J (MBIA Insured).............................5.75 11-15-20 1,699,864 1,405 Pueblo County (MBIA Insured)..............................................................5.80 06-01-11 1,431,302 1,000 Pueblo County School District #070, Series B (MBIA Insured)...............................5.30 12-01-11 958,130 2,200 Woodmoor Water and Sanitation District #1 (FGIC Insured)..................................5.60 12-01-11 2,219,426 ------------ 30,794,591 HEALTH CARE REVENUE (19.0%): 2,625 Colorado Health Facilities Authority Revenue, Boulder Community Hospital Project, Series 1994 B (MBIA Insured)........................................5.88 10-01-23 2,639,779 1,000 Colorado Health Facilities Authority Revenue, Childrens Hospital Association (MBIA Insured)........................................................................5.25 10-01-26 937,030 2,000 Colorado Health Facilities Authority Revenue, North Colorado Medical Center (MBIA Insured)........................................................................5.95 05-15-12 2,031,640 1,000 Colorado Health Facilities Authority Revenue, North Colorado Medical Center (MBIA Insured).........................................................6.00 05-15-20 1,009,970 2,000 Colorado Health Facilities Authority Revenue, Sisters of Charity Health Care, Series A (AMBAC Insured).................................................6.00 05-15-22 2,016,120 3,500 Logan County Health Care Facilities Revenue, Western Health Network Inc. (MBIA Insured)........................................................................5.90 01-01-19 3,506,405 7,625 University of Colorado Hospital Authority, Hospital Revenue, Series A (AMBAC Insured)..............................................................6.40 11-15-22 8,018,221 ------------ HOUSING REVENUE (1.9%): 2,000 Snowmass Village Multi-Family Housing, Revenue Refunding Essential Function Housing (FSA Insured).............................................6.25 12-15-16 2,053,960 ------------ MISCELLANEOUS & SALES TAX REVENUE (11.7): 1,000 Castle Rock Sales & Use Tax Revenue (FSA Insured).........................................5.65 06-01-11 1,011,050 1,755 Castle Rock Sales & Use Tax Revenue (FSA Insured).........................................5.90 06-01-16 1,774,147 4,500 Douglas County Sales & Use Tax Revenue (MBIA Insured).....................................5.50 10-15-11 4,472,595 5,000 City of Westminister County Sales & Use Tax Refunding Revenue, Series A (FGIC Insured)...............................................................6.25 12-01-12 5,198,800 ------------ 12,456,592 POLLUTION CONTROL REVENUE (1.4%): 1,500 Adams County Pollution Control Revenue Refunding, Public Service Company Project, Series A (MBIA Insured)......................................5.88 04-01-14 1,508,580 ------------ TRANSPORTATION REVENUE (12.0%): 4,500 Arapahoe County Capital Improvements Revenue (MBIA Insured)...............................6.05 08-31-15 4,650,345 1,000 Denver City & County Airport Revenue, Series A (MBIA Insured).............................5.50 11-15-25 967,530 2,500 Denver City & County Airport Revenue, Series A (MBIA Insured).............................5.60 11-15-20 2,454,400 4,500 Regional Transportation District Sales Tax Revenue Refunding & Improvement (FGIC Insured)..........................................................6.25 11-01-12 4,709,385 ------------ 12,781,660 UTILITY REVENUE (8.0%): 2,000 Left Hand Water District Colorado Water Revenue (MBIA Insured)............................5.70 11-15-15 2,002,900 5,000 Municipal Subdistrict Northern Colorado Water Conservancy District Revenue Series F (AMBAC Insured)..............................................................6.50 12-01-12 5,508,650 1,000 Woodland Park Waste Water Utility Revenue (MBIA Insured)..................................5.50 12-01-15 985,940 ------------ 8,497,490 TOTAL INVESTMENTS IN SECURITIES (cost: $103,822,949) (d) $104,123,502 ============ See accompanying notes to investments in securities.
THE VOYAGEUR FUNDS NOTES TO INVESTMENTS IN SECURITIES (UNAUDITED) (a) Securities are valued by procedures described in note 2 to the Financial Statements. (b) Investments in bonds, by rating category (unaudited) as a percentage of total bonds, are as follows:
AAA/AAA AA/AA A/A BAA UNRATED TOTAL ------- ----- --- --- ------- ----- Minnesota Municipal Income Fund, Inc............... 55% 15% 15% 4% 11% 100% Minnesota Municipal Income Fund II, Inc............ 58% 16% 15% 6% 5% 100% Minnesota Municipal Income Fund III, Inc........... 55% 10% 20% 10% 5% 100% Arizona Municipal Income Fund, Inc................. 76% 17% 7% -- -- 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, 1996. (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 was $54,826,911, $155,296,334, $36,958,277, $64,250,354, $52,132,633 and $103,822,949, respectively. The aggregate gross unrealized appreciation and depreciation of securities based on these costs were as follows:
GROSS GROSS NET UNREALIZED UNREALIZED UNREALIZED APPRECIATION (DEPRECIATION) APPRECIATION ------------ -------------- ------------ Minnesota Municipal Income Fund, Inc............. 2,163,834 (213,196) 1,950,638 Minnesota Municipal Income Fund II, Inc.......... 2,388,382 (942,298) 1,446,084 Minnesota Municipal Income Fund III, Inc......... 956,695 (190,935) 765,760 Arizona Municipal Income Fund, Inc............... 1,631,738 (156,177) 1,475,561 Florida Insured Municipal Income Fund............ 891,061 (85,921) 805,140 Colorado Insured Municipal Income Fund, Inc...... 1,079,656 (779,103) 300,553
(e) At September 30, 1996, the cost of securities purchased on a when-issued basis was $5,461,950 for Colorado Insured Municipal Income Fund. (f) Securities represent private activity bonds issued after August 7, 1986. The interest on these securities is a tax preference item for Alternative Minimum Tax purposes. The ratio of private activity bonds to total investments in securities as of September 30, 1996 was as follows: Minnesota Municipal Income Fund, Inc....................... 19.1% Minnesota Municipal Income Fund II, Inc.................... 19.2% Minnesota Municipal Income Fund III, Inc................... 15.6% Arizona Municipal Income Fund, Inc......................... 0.0% Florida Insured Municipal Income Fund...................... 0.0% Colorado Municipal Income Fund, Inc........................ 0.0% THE VOYAGEUR FUNDS ANNUAL MEETING RESULTS An annual meeting of the fund's shareholders was held on September 4, 1996. 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-voters with the respect to such matter, are set forth below. 1. The fund's common and preferred shareholders (preferred shareholders only for Messrs. Frame and Nelson) elected the following directors:
ARIZONA MUNICIPAL INCOME FUND, INC. ----------------------------------- SHARES SHARES WITHHOLDING VOTED "FOR" AUTHORITY TO VOTE ----------- ----------------- Clarence G. Frame................................... 500 -- B. Kristine Johnson................................. 2,806,411 55,042 Richard F. McNamara................................. 2,806,011 55,442 Thomas F. Madison................................... 2,805,104 56,349 James W. Nelson..................................... 500 -- Robert J. Odegard................................... 2,802,929 58,524
COLORADO INSURED MUNICIPAL INCOME FUND, INC. -------------------------------------------- SHARES SHARES WITHHOLDING VOTED "FOR" AUTHORITY TO VOTE ----------- ----------------- Clarence G. Frame................................... 788 -- B. Kristine Johnson................................. 4,570,232 47,024 Richard F. McNamara................................. 4,573,642 43,613 Thomas F. Madison................................... 4,571,442 45,813 James W. Nelson..................................... 788 -- Robert J. Odegard................................... 4,563,713 53,543
FLORIDA INSURED MUNICIPAL INCOME FUND ------------------------------------- SHARES SHARES WITHHOLDING VOTED "FOR" AUTHORITY TO VOTE ----------- ----------------- Clarence G. Frame................................... 400 -- B. Kristine Johnson................................. 1,727,829 45,473 Richard F. McNamara................................. 1,728,229 45,073 Thomas F. Madison................................... 1,725,929 47,373 James W. Nelson..................................... 400 -- Robert J. Odegard................................... 1,735,229 38,073
MINNESOTA MUNICIPAL INCOME FUND, INC. ------------------------------------- SHARES SHARES WITHHOLDING VOTED "FOR" AUTHORITY TO VOTE ----------- ----------------- Clarence G. Frame................................... 400 -- B. Kristine Johnson................................. 2,267,211 14,071 Richard F. McNamara................................. 2,267,082 14,201 Thomas F. Madison................................... 2,266,882 14,401 James W. Nelson..................................... 400 -- Robert J. Odegard................................... 2,266,095 15,187
MINNESOTA MUNICIPAL INCOME FUND II, INC. ---------------------------------------- SHARES SHARES WITHHOLDING VOTED "FOR" AUTHORITY TO VOTE ----------- ----------------- Clarence G. Frame................................... 904 -- B. Kristine Johnson................................. 6,486,534 58,339 Richard F. McNamara................................. 6,480,971 63,903 Thomas F. Madison................................... 6,478,938 66,003 James W. Nelson..................................... 904 -- Robert J. Odegard................................... 6,473,769 71,105
MINNESOTA MUNICIPAL INCOME FUND III, INC. ----------------------------------------- SHARES SHARES WITHHOLDING VOTED "FOR" AUTHORITY TO VOTE ----------- ----------------- Clarence G. Frame................................... 300 -- B. Kristine Johnson................................. 1,657,467 15,593 Richard F. McNamara................................. 1,657,467 15,593 Thomas F. Madison................................... 1,657,467 15,593 James W. Nelson..................................... 300 -- Robert J. Odegard................................... 1,655,909 17,152
2. The fund's common and preferred 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, 1997. The following votes were cast regarding this matter:
SHARES SHARES VOTED "FOR" VOTED "AGAINST" ABSENTIONS ----------- --------------- ---------- Arizona 2,719,747 91,300 50,405 Colorado 4,517,232 24,533 75,491 Florida 1,729,538 28,602 15,162 Minnesota 2,255,022 6,939 19,322 Minnesota II 6,459,061 24,360 61,453 Minnesota III 1,647,669 3,138 22,254 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 Princeton 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) COUNSEL Dorsey & Whitney P.L.L.P Minneapolis, Minnesota Notice is hereby given in accordance with Section 23(c) of the Investment Company Act of 1940, as amended, that from time to time the Fund may purchase at market prices shares of its common stock in the open market. 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-----