MINNESOTA TAX FREE FUND
MINNESOTA INSURED FUND
MINNESOTA LIMITED TERM TAX FREE FUND
SEMI-ANNUAL REPORT
Dated June 30, 1995
Voyageur offers a family of mutual funds, each with an individual objective
stated in its prospectus. Investment objectives of the funds range from high
current income to long-term capital appreciation. Exchange privileges allow you
to change your investment between Voyageur Funds as your objectives or market
conditions change.
VOYAGEUR TAX FREE FUNDS seek high current income free from both Federal income
taxes and state income taxes (where applicable). The Funds invest in investment
grade municipal bonds.
Voyageur ARIZONA Tax Free Fund Voyageur KANSAS Tax Free Fund
Voyageur CALIFORNIA Tax Free Fund Voyageur MINNESOTA Tax Free Fund
Voyageur COLORADO Tax Free Fund Voyageur NEW MEXICO Tax Free Fund
Voyageur FLORIDA Tax Free Fund Voyageur NORTH DAKOTA Tax Free Fund
Voyageur IDAHO Tax Free Fund Voyageur UTAH Tax Free Fund
Voyageur IOWA Tax Free Fund Voyageur WISCONSIN Tax Free Fund
VOYAGEUR INSURED TAX FREE FUNDS seek high current income free from both Federal
income taxes and state income taxes (where applicable) with the added safety of
an insured portfolio. The Funds invest in insured municipal bonds.
<TABLE>
<S> <C>
Voyageur ARIZONA Insured Tax Free Fund Voyageur MISSOURI Insured Tax Free Fund
Voyageur CALIFORNIA Insured Tax Free Fund Voyageur NATIONAL Insured Tax Free Fund
Voyageur FLORIDA Insured Tax Free Fund Voyageur OREGON Insured Tax Free Fund
Voyageur MINNESOTA Insured Fund Voyageur WASHINGTON Insured Tax Free Fund
</TABLE>
VOYAGEUR LIMITED TERM FUNDS seek to preserve original investment principal while
providing income free from both Federal income taxes and state income taxes
(where applicable). The Funds invest in intermediate term investment grade
municipal bonds.
<TABLE>
<S> <C>
Voyageur FLORIDA Limited Term Tax Free Fund Voyageur MINNESOTA Limited Term Tax Free Fund
</TABLE>
VOYAGEUR EQUITY FUNDS seek long term capital appreciation by investing in common
stocks.
Voyageur AGGRESSIVE GROWTH Fund Voyageur INTERNATIONAL Equity Fund
Voyageur GROWTH Stock Fund
VOYAGEUR INCOME FUNDS seek high current income from investments issued,
guaranteed or otherwise backed by the full faith and credit of the U.S.
Government.
Voyageur U.S. GOVERNMENT SECURITIES Fund
VOYAGEUR CASH TRUST SERIES MONEY MARKET FUNDS seek high current income,
principal protection and liquidity by investing in money market instruments.
Voyageur CALIFORNIA MUNICIPAL CASH Series Voyageur MUNICIPAL CASH Series
Voyageur FLORIDA MUNICIPAL CASH Series Voyageur OHIO MUNICIPAL CASH Series
Voyageur GOVERNMENT CASH Series Voyageur PRIME CASH Series
Voyageur MINNESOTA MUNICIPAL CASH Series Voyageur TREASURY CASH Series
For more complete information regarding the investment objectives, fees and
expenses of the Funds, please obtain a prospectus from your Investment
Representative or from Voyageur, 90 South Seventh Street, Suite 4400,
Minneapolis, MN 55402-4115; (612) 376-7044 (local); 800-525-6584 (MKTG).
Dear Shareholder:
The municipal bond market's dramatic rebound in the first half of 1995 caused
many mutual funds to recover much of the ground they lost in last year's bear
market. This strong rally was evidenced by the Fund's performance. I am pleased
to present a considerably brighter picture of the municipal bond market and the
Fund's performance than was presented in my last letter to you.
The results below summarize the Fund's net asset value, dividends paid and total
net assets for the reporting period.
VOYAGEUR MINNESOTA TAX FREE FUND
<TABLE>
<CAPTION>
NET ASSET NET ASSET TOTAL NET
VALUE VALUE DIVIDENDS ASSETS
BEGINNING END PAID PER END OF
PERIOD OF PERIOD OF PERIOD SHARE PERIOD (000'S)
<S> <C> <C> <C> <C>
Period ended June 30, 1995:
Class A Shares $11.33 $12.09 $0.33 $444,580
Class B Shares 11.90* 12.09 0.17 803
Class C Shares 11.33 12.09 0.29 1,872
</TABLE>
* Net asset value at March 11, 1995 (commencement of operations)
VOYAGEUR MINNESOTA INSURED FUND
<TABLE>
<CAPTION>
NET ASSET NET ASSET TOTAL NET
VALUE VALUE DIVIDENDS ASSETS
BEGINNING END PAID PER END OF
PERIOD OF PERIOD OF PERIOD SHARE PERIOD (000'S)
<S> <C> <C> <C> <C>
Period ended June 30, 1995:
Class A Shares $9.61 $10.34 $0.28 $304,360
Class B Shares 10.12* 10.33 0.15 1,659
Class C Shares 9.61 10.34 0.24 2,510
</TABLE>
* Net asset value at March 7, 1995 (commencement of operations)
VOYAGEUR MINNESOTA LIMITED TERM TAX FREE FUND
<TABLE>
<CAPTION>
NET ASSET NET ASSET TOTAL NET
VALUE VALUE DIVIDENDS ASSETS
BEGINNING END PAID PER END OF
PERIOD OF PERIOD OF PERIOD SHARE PERIOD (000'S)
<S> <C> <C> <C> <C>
Period ended June 30, 1995:
Class A Shares $10.50 $10.96 $0.26 $71,293
Class C Shares 10.50 10.96 0.22 472
</TABLE>
In the pages that follow, the Fund's Manager will update you on how the economy
and the municipal bond market affected the Fund during this reporting period.
The manager will discuss the Fund's performance and some strategies used to
maximize performance.
We assert that a long-range view of investing provides the greatest benefit to
our shareholders. We encourage you to maintain a long-range view of investing;
we believe that you will derive the greatest benefit by doing so.
Thank-you for investing with Voyageur.
Sincerely,
John G. Taft
President
Voyageur Minnesota Tax Free Fund
Voyageur Minnesota Insured Fund
Voyageur Minnesota Limited Term Tax Free Fund
DISCUSSION OF FUND MANAGEMENT BY ELIZABETH H. HOWELL, PORTFOLIO MANAGER
Ms. Howell is Senior Vice President and Tax Exempt Portfolio Manager for the
Voyageur Minnesota Tax Free Fund, the Voyageur Minnesota Insured Fund, and the
Voyageur Minnesota Limited Term Tax Free Fund. She has over ten years experience
as a securities analyst and portfolio manager.
In general, Minnesota bonds tend to trade at a "premium" (lower yield) than
bonds issued by other states in the country. This premium reflects the high
state tax rates. On an after-tax basis, the in-state bonds are especially
appealing to Minnesota residents.
LONG FUNDS: The Voyageur Minnesota Tax Free and Voyageur Minnesota Insured funds
are the long term funds in our Minnesota group. They are at the long end of the
yield curve, although the Minnesota Insured Fund is shorter than the Minnesota
Tax Free. During the first six months of the year, we implemented our "cover the
yield curve" strategy. Under this strategy, the Minnesota Tax Free Fund's
duration and average maturity were extended to make it the longest fund in the
Minnesota family.
By positioning the Funds along the yield curve, investors can tailor their bond
portfolios to achieve a measured approach to interest rate exposure. Somewhat
aggressive, long term investors will generally have a preference for the
Voyageur Minnesota Tax Free Fund. Less aggressive, long term investors will
typically prefer the Voyageur Minnesota Insured Fund.
The following factors contributed to the strong performance of the long funds:
* The long durations and long maturities enabled both funds to capture
substantial price appreciation and strong total returns in an environment
of declining interest rates. We had been anticipating a rally after the
sharp sell off in 1994 and had positioned the funds to excel in the bull
market scenario we were forecasting. Specifically, we were longer (maturity
and duration) than most of our Minnesota competitors. (Specific information
on duration and maturity for each Fund is shown below.)
* Strong call protection boosted performance. The Funds held quality bonds
with excellent call protection. We buy strong call protection because it
allows investors to lock in to favorable yields for a longer period of
time. We were constantly swapping bonds within the market to maintain
adequate call protection within the portfolio. Maintaining adequate call
protection remains a key component of our investment strategy.
* Low supply conditions in the state of Minnesota also contributed favorably
to strong total returns.
* We're a high quality manager, 93% of the Voyageur Minnesota Tax Free Fund
was comprised of bonds rated in the three highest categories by Standard &
Poor's Corporation and Moody's Investors Service (AAA/Aaa, AA/Aa, A/A). The
Voyageur Minnesota Insured Fund was comprised 100% of AAA/Aaa-rated,
insured municipal bonds. In the current market environment, quality bonds
outperformed "junk" bonds.
THE VOYAGEUR MINNESOTA TAX FREE FUND
The Fund's (A shares) posted a total return based on net asset value of 9.59% at
the end of the reporting period. The Fund ranked 11th among its 32 fund
competitors in its Lipper objective of Minnesota municipal debt funds for one
year, 6/30/94 through 6/30/95. (Note: This Lipper Analytical Services ranking
and the total return information that follow represent past performance which is
no guarantee of future results. Shares may be worth more or less than their
original cost. The total return based on net asset value for the Fund's A-shares
was 9.59% at one year, 7.58% at five years and and 9.31% since inception.)
At the end of the reporting period, the duration on the Minnesota Tax Free Fund
was 9.4 years, and the average maturity was 16 years.
THE VOYAGEUR MINNESOTA INSURED FUND
The Fund's (A shares) posted a total return based on net asset value of 10.45 at
the end of the reporting period. The Fund ranked 10th among its 32 fund
competitors in its Lipper objective of Minnesota municipal debt funds for one
year, 6/30/94 through 6/30/95. (Note: This Lipper Analytical Services ranking
and the total return information that follow represent past performance which is
no guarantee of future results. Shares may be worth more or less than their
original cost. The total return based on net asset value for the Fund's A-shares
was 7.53% at one year, 7.80% at five years and and 7.69 since inception.)
At the end of the reporting period, the Minnesota Insured Fund had a duration of
8.1 years and an average maturity of 13 years.
INTERMEDIATE FUND: The Voyageur Minnesota Limited Term Fund performed well in
the first half of the year, and shareholders benefitted from sharply declining
interest rates. We have traditionally managed the Fund conservatively and for
low volatility. We have never had a ten-year average maturity, unlike most other
funds in this universe. Instead, we manage it defensively for risk-averse bond
investors who seek more income than available in tax exempt money market funds.
We will continue to manage it conservatively and consistently within our "cover
the yield curve" strategy. The Limited Term Fund covers the middle part of the
yield curve, or what is sometimes called the belly of the curve, by owning bonds
with maturities ranging from one year to 12 years. The following factors
contributed to the performance of the Fund:
* We modestly extended the average maturity of the Fund over the reporting
period, from 5.4 years at 12/31/94 to 6.2 years at 6/30/95.
* The Fund was comprised mainly of securities that are non-callable. This
enables us to lock in higher yields in a declining rate environment.
* We continue to stress quality. Nearly 90% of the portfolio is in bonds
rated A or higher. We also hold 57% of the portfolio in "pre-refunded"
bonds that are backed by the U.S. Treasury and are AAA rated. Pre-re's are
well-known for their high credit quality and defensive performance
attributes in volatile markets. They make an excel haven for conservative
investors.
THE MINNESOTA LIMITED TERM
The Fund's (A shares) posted a total return based on net asset value of 6.77 at
the end of the reporting period. The Fund ranked 42th among its 67 fund
competitors in its Lipper objective of other states intermediate municipal debt
funds for one year, 6/30/94 through 6/30/95. (Note: This Lipper Analytical
Services ranking and the total return information that follow represent past
performance which is no guarantee of future results. Shares may be worth more or
less than their original cost. The total return based on net asset value for the
Fund's A-shares was 6.82% at one year, 6.42% at five years and 6.40 since
inception.) The total return for the Lipper objective was 6.99% for one year.
The Voyageur Minnesota Limited Term Fund slightly underperformed the Lipper
objective for that period. We attributed this to two factors: 1) the Fund's
duration and average maturity profiles were below that of other funds in the
objective; 2) the Fund had a lower relative yield compared to funds of other
states. The lower yield is directly related to the higher-than-average state
income tax that Minnesota residents pay.
OUTLOOK FOR THE MINNESOTA FUNDS
* The future for the Minnesota funds looks bright. Inflation is low and real
rates of return are still rewarding to tax-exempt bond investors.
* The funds are well positioned (duration/maturity/call protection/credit
quality) to take advantage of the continuing bull market for bonds.
* Supply is low and is anticipated to remain low through 1995.
* "Cover the yield curve" is working well and will aid investors in their
bond fund allocations and their effort to manage personal investment risk.
* House Bill 1380 was eliminated from legislative consideration. This bill
proposed taxing in-state municipal bonds which would have eliminated the
state tax exemption for Minnesota bonds. We believe House Bill 1380 no
longer poses a risk to the tax exempt status of Minnesota municipal bonds.
* Federal tax reform discussions are likely to move towards realistic reform
and away from radical reform in the coming months. The chances of enacting
radical reform, such as a flat tax or national sales tax, are slim. In our
opinion, we are likely to see some minor changes in the tax code to
encourage a higher savings rate, and the tax-exempt status of municipals
will remain intact. In any case, tax reform legislation is two to three
years away.
(Intentionally Blank Page)
<TABLE>
<CAPTION>
THE VOYAGEUR FUNDS
STATEMENTS OF ASSETS AND LIABILITIES (UNAUDITED) JUNE 30, 1995
VOYAGEUR VOYAGEUR VOYAGEUR
MINNESOTA MINNESOTA MINNESOTA
TAX FREE INSURED LIMITED TERM
FUND FUND TAX FREE FUND
ASSETS
<S> <C> <C> <C>
Investments in securities, at market value (note 1)
(identified costs, $432,973,439, $296,926,382 and
$67,745,889, respectively) ................................... $ 441,840,997 $ 302,899,654 $ 70,351,256
Cash in bank on demand deposit .................................. -- -- 2,495
Accrued interest receivable ..................................... 8,893,912 6,874,595 1,578,856
Receivable for investment securities sold ....................... 4,895,636 -- --
Receivable for Fund shares sold ................................. 70,833 60,682 --
Total assets ................................................. 455,701,378 309,834,931 71,932,607
LIABILITIES
Disbursements in excess of cash in bank on demand deposit ....... 2,553,400 465,255 --
Dividends payable to shareholders ............................... 490,872 330,778 69,755
Payable for investment securities purchased ..................... 4,802,098 -- --
Payable for Fund shares redeemed ................................ 237,391 249,272 20,505
Other accrued expenses .......................................... 362,681 260,909 77,964
Total liabilities ............................................ 8,446,442 1,306,214 168,224
NET ASSETS APPLICABLE TO OUTSTANDING CAPITAL STOCK .............. $ 447,254,936 $ 308,528,717 $ 71,764,383
Represented by:
Capital Stock - $.01 par value (note 1) ...................... $ 369,961 $ 298,507 $ 65,478
Additional paid-in capital ................................... 440,244,624 309,243,259 70,192,733
Distributions in excess of net investment income ............. (81,150) (2,702) (11,372)
Accumulated net realized loss on investments ................. (2,146,057) (6,983,619) (1,087,823)
Unrealized appreciation of investments ....................... 8,867,558 5,973,272 2,605,367
TOTAL NET ASSETS ........................................... $ 447,254,936 $ 308,528,717 $ 71,764,383
Net assets applicable to outstanding Class A shares ............. $ 444,580,341 $ 304,359,539 $ 71,292,641
Net assets applicable to outstanding Class B shares ............. $ 802,944 $ 1,659,025 N/A
Net assets applicable to outstanding Class C shares ............. $ 1,871,651 $ 2,510,153 $ 471,742
SHARES OUTSTANDING AND NET ASSET VALUE PER SHARE
Class A - Shares of Capital Stock outstanding:
36,774,898; 29,447,269; and 6,504,771; respectively (note 4) $ 12.09 $ 10.34 $ 10.96
Class B - Shares of Capital Stock outstanding:
66,415; 160,628; and N/A; respectively (note 4) ............ $ 12.09 $ 10.33 N/A
Class C - Shares of Capital Stock outstanding:
154,746; 242,807; and 43,041; respectively (note 4) ........ $ 12.09 $ 10.34 $ 10.96
</TABLE>
See accompanying notes to financial statements.
<TABLE>
<CAPTION>
THE VOYAGEUR FUNDS
STATEMENTS OF OPERATIONS (UNAUDITED) SIX MONTHS ENDED JUNE 30, 1995
VOYAGEUR VOYAGEUR VOYAGEUR
MINNESOTA MINNESOTA MINNESOTA
TAX FREE INSURED LIMITED TERM
FUND FUND TAX FREE FUND
<S> <C> <C> <C>
Investment income:
Interest ....................................................... $ 13,531,958 $ 9,021,526 $ 2,139,229
Expenses (note 3):
Investment advisory and management fee ......................... 1,092,634 756,238 150,819
Dividend-disbursing, administrative and accounting services fees 245,579 167,436 66,880
Printing, postage and supplies ................................. 51,056 26,383 10,218
Audit and accounting fees ...................................... 22,216 17,400 18,359
Legal fees ..................................................... 20,342 9,295 7,132
Distribution fees - Class A .................................... 544,216 375,019 93,752
Distribution fees - Class B .................................... 512 2,408 N/A
Distribution fees - Class C .................................... 7,641 10,626 2,045
Directors' fees ................................................ 18,668 6,535 2,664
Registration fees .............................................. 23,741 9,426 10,820
Custodian fees ................................................. 53,883 31,884 7,951
Other .......................................................... 23,576 582 2,881
Total expenses ............................................... 2,104,064 1,413,232 373,521
Less: Expenses waived, absorbed or reduced .................... -- (45,530) (7,591)
Total net expenses ........................................... 2,104,064 1,367,702 365,570
Investment income - net ...................................... 11,427,894 7,653,824 1,773,659
Realized and unrealized gain (loss) on investments:
Realized loss on security transactions (note 2) ................ (1,760,412) (6,983,619) (314,790)
Net change in unrealized appreciation or depreciation
of investments .............................................. 30,328,306 29,322,743 3,658,761
Net gain on investments .................................... 28,567,894 22,339,124 3,343,971
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS .............. $ 39,995,788 $ 29,992,948 $ 5,117,630
</TABLE>
See accompanying notes to financial statements.
<TABLE>
<CAPTION>
THE VOYAGEUR FUNDS
STATEMENTS OF CHANGES IN NET ASSETS (UNAUDITED)
VOYAGEUR MINNESOTA
TAX FREE FUND
SIX MONTHS YEAR
ENDED ENDED
JUNE 30, 1995 DECEMBER 31,
<S> <C> <C>
Operations: (UNAUDITED) 1994
Investment income - net ..................................................... $ 11,427,894 $ 23,704,596
Realized gain (loss) on investments - net ................................... (1,760,412) 1,273,350
Net change in unrealized appreciation or depreciation of investments ........ 30,328,306 (57,094,347)
Net increase (decrease) in net assets resulting from operations .......... 39,995,788 (32,116,401)
Distributions to shareholders from:
Investment income - net:
Class A ................................................................... (12,168,555) (22,948,453)
Class B ................................................................... (3,017) N/A
Class C ................................................................... (35,800) (16,674)
Distributions in excess of net investment income:
Class A ................................................................... (80,708) --
Class B ................................................................... -- N/A
Class C ................................................................... (527) --
Net realized gain on investments:
Class A ................................................................... -- (1,769,817)
Class C ................................................................... -- (1,840)
Excess distributions of net realized gains:
Class A ................................................................... -- (385,244)
Class C ................................................................... -- (401)
Total distributions ..................................................... (12,288,607) (25,122,429)
Capital share transactions (note 4):
Proceeds from sale of shares:
Class A (note 3) .......................................................... 30,122,131 64,943,542
Class B ................................................................... 812,819 N/A
Class C ................................................................... 837,283 1,185,075
Net asset value of shares issued in reinvestment of net
investment income distributions, distributions in excess of net investment
income and realized gain distributions:
Class A ............................................................... 9,046,665 20,135,429
Class B ............................................................... 2,140 N/A
Class C ............................................................... 26,652 8,589
Payments for redemption of shares:
Class A ................................................................... (28,720,531) (79,535,301)
Class B ................................................................... (1,988) N/A
Class C (note 3) .......................................................... (134,481) (86,392)
Increase in net assets from capital share transactions ...................... 11,990,690 6,650,942
Total increase (decrease) in net assets ................................... 39,697,871 (50,587,888)
Net assets at beginning of period .............................................. 407,557,065 458,144,953
Net assets at end of period (including undistributed net investment income or
(distributions in excess of net investment income) of $(81,150) and $779,563;
$(2,702) and $684,791; and $(11,372) and $29,883; respectively) ........... $ 447,254,936 $ 407,557,065
</TABLE>
See accompanying notes to financial statements.
(TABLE CONTINUED)
<TABLE>
<CAPTION>
THE VOYAGEUR FUNDS
STATEMENTS OF CHANGES IN NET ASSETS (UNAUDITED)
VOYAGEUR MINNESOTA VOYAGEUR MINNESOTA
INSURED FUND LIMITED TERM TAX FREE FUND
SIX MONTHS YEAR SIX MONTHS PERIOD FROM
ENDED ENDED ENDED MARCH 1, 1994
JUNE 30, 1995 DECEMBER 31, JUNE 30, 1995 TO DECEMBER 31,
(UNAUDITED) 1994 (UNAUDITED) 1994 (NOTE 1)
<S> <C> <C> <C> <C>
$ 7,653,824 $ 16,515,252 $ 1,773,659 $ 2,882,638
(6,983,619) 1,246,807 (314,790) (773,033)
29,322,743 (43,905,801) 3,658,761 (2,865,769)
29,992,948 (26,143,742) 5,117,630 (756,164)
(8,280,572) (15,803,903) (1,795,464) (2,848,207)
(9,367) N/A N/A N/A
(48,676) (26,558) (8,078) (4,548)
(1,819) -- (11,362) --
(336) N/A N/A N/A
(547) -- (10) --
-- (1,244,392) -- --
-- (2,415) -- --
-- -- -- --
-- -- -- --
(8,341,317) (17,077,268) (1,814,914) (2,852,755)
17,810,125 65,030,846 3,155,476 30,487,684
1,655,398 N/A N/A N/A
901,637 1,825,218 245,337 381,811
6,607,412 11,637,921 1,486,186 1,735,212
7,937 N/A N/A N/A
44,486 19,210 7,889 2,923
(25,709,617) (60,585,547) (20,801,614) (23,276,387)
-- N/A N/A N/A
(97,187) (237,069) (140,196) (36,878)
1,220,191 17,690,579 (16,046,922) 9,294,365
22,871,822 (25,530,431) (12,744,206) 5,685,446
285,656,895 311,187,326 84,508,589 78,823,143
$308,528,717 $285,656,895 $71,764,383 $84,508,589
</TABLE>
THE VOYAGEUR FUNDS
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
(1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Voyageur Minnesota Tax Free Fund (Minnesota Tax Free Fund) a fund within
Voyageur Tax Free Funds, Inc.; Voyageur Minnesota Insured Fund (Minnesota
Insured Fund) a fund within Voyageur Insured Funds, Inc., and Voyageur Minnesota
Limited Term Tax Free Fund (Minnesota Limited Term Tax Free Fund), a fund within
Voyageur Intermediate Tax Free Funds, Inc., (the Funds) are registered under the
Investment Company Act of 1940 (as amended) as diversified, open-end management
investment companies. The Funds offer Class A, Class B and Class C Shares. Class
A Shares are sold with a front-end sales charge. Class B Shares (first offered
on March 1, 1995) may be subject to a contingent deferred sales charge and such
shares automatically convert to Class A after eight years. Class C Shares may be
subject to a contingent deferred sales charge and have no conversion feature. As
of June 30, 1995 there were no Class B Shares outstanding for Minnesota Limited
Term Tax Free Fund. All classes of shares have identical voting, dividend,
liquidation and other rights and the same terms and conditions, except that the
level of distribution fees charged differs between classes. Income, expenses
(other than expenses incurred under each class' Distribution Agreement) and
realized and unrealized gains or losses on investments are allocated to each
class of shares based upon its relative net assets. Pursuant to their amended
articles of incorporation, Voyageur Tax Free Funds, Inc., Voyageur Insured
Funds, Inc. and Voyageur Limited Term Tax Free Funds, Inc. each have 10 trillion
shares of authorized capital stock that may be issued in one or more series.
Effective February 28, 1994 Minnesota Limited Term Tax Free Fund changed its
reporting year end to February 28 and effective December 31, 1994 changed back
to December 31.
The significant accounting policies followed by the Funds are summarized as
follows:
Investments in Securities
Securities are valued at fair value as determined by the Board of Directors.
Determination of fair value involves, among other things, using pricing services
or prices quoted by independent brokers. Short-term securities are valued at
amortized cost which approximates market value.
Security transactions are accounted for on the trade date. Securities gains
and losses are calculated on the identified-cost basis. Interest income,
including level-yield amortization of premium and original issue discount, is
accrued daily.
Each of the Funds concentrate their investments in a single state, and
therefore may have more credit risk related to the economic conditions of the
state of Minnesota than a portfolio with broader geographical diversification.
Securities Purchased on a When-Issued Basis
Delivery and payment for securities which have been purchased by the Fund on
a forward commitment or when-issued basis can take place up to a month or more
after the transaction date. During this period, such securities are subject to
market fluctuations and the portfolio maintains, in a segregated account with
its custodian, assets with a market value equal to or greater than the amount of
its purchase commitments.
Federal Taxes
The Funds' policy is to comply with the requirements of the Internal Revenue
Code applicable to regulated investment companies and to distribute all of its
taxable income to shareholders in amounts that will avoid or minimize federal
income or excise taxes for the Funds. Net investment income and net realized
gains (losses) for the Funds may differ for financial statement and tax purposes
primarily because of losses deferred for tax purposes due to "wash sale"
transactions. The character of distributions made during the year from net
investment income or net realized gains may differ from their ultimate
characterization for federal income tax purposes. The effect on dividend
distributions on certain book-to-tax differences is reflected as excess
distributions of net realized gains in the statement of changes in net assets.
Also, due to the timing of dividend distributions, the fiscal year in which
amounts are distributed may differ from the year that the income or realized
gains (losses) were recorded by the fund.
For federal income tax purposes, as of December 31, 1994, Minnesota Tax Free
Fund had a capital loss carryover of $385,645 that will expire in 2003 and the
Minnesota Limited Term Tax Free Fund had a capital loss carryover of $773,033
that will expire in 2002 and 2003 if not offset by subsequent capital gains. It
is unlikely that the Board of Directors will authorize a distribution of any net
realized capital gains until the available capital loss carryover has been
offset or expires.
Distributions to Shareholders
Dividends declared daily from net investment income are payable monthly in
cash or reinvested in additional shares of each Fund. Distribution of net
short-term realized capital gains, if any, may be paid on a monthly or annual
basis. Net long-term realized capital gains, when available, are distributed
annually.
(2) SECURITIES TRANSACTIONS
Purchase cost and proceeds from sales of securities other than short-term
securities aggregated $175,186,649 and $166,238,762 for Minnesota Tax Free Fund;
$123,052,420 and $124,356,448 for Minnesota Insured Fund; and $20,352,909 and
$35,971,225 for Minnesota Limited Term Tax Free Fund, respectively, during the
six months ended June 30, 1995.
(3) EXPENSES
Each Fund has an investment advisory and management agreement with Voyageur
Fund Managers, Inc. (Voyageur) under which Voyageur manages the Fund assets and
provides other specified services. The fee for investment management and
advisory services is paid monthly and is based on the average daily net assets
of each Fund at the annual rate of .50% (.40% for Minnesota Limited Term Tax
Free Fund). In addition, each Fund will pay most other operating expenses
including directors' fees, registration fees, printing of shareholder reports,
legal and auditing services and other miscellaneous expenses. The Minnesota
Insured Fund incurred portfolio insurance expense of $637 for the six months
ended June 30, 1995. Portfolio insurance expense, if any, is recognized over the
premium period. Voyageur is obligated to pay all expenses of each Fund
(excluding distribution fees, insurance premiums on portfolio securities, taxes,
interest and brokerage commissions) which exceed 1% of average daily net assets,
on an annual basis.
Each Fund will also pay a fee to Voyageur for acting as the Fund's dividend
disbursing, administrative and accounting services agent. The fee is paid
monthly and is equal to the sum of $1.33 per shareholder account per month, a
fixed monthly fee ranging from $1,000 to $1,500 based on the level of the Fund's
average daily net assets and an annualized percentage of average daily net
assets at reducing rates from .11% to .02%. Each Fund is also responsible for
reimbursing Voyageur's out-of-pocket expense in connection with the performance
of dividend-disbursing, administrative and accounting services.
All classes of shares have a Distribution Agreement under Rule 12b-1 of the
Investment Company Act of 1940 with Voyageur Fund Distributors, Inc. (Fund
Distributors). Under this plan each Fund is obligated to pay Fund Distributors a
monthly distribution fee at an annual rate of .25% of each Funds' average daily
net assets of the Class A Shares and 1.00% of each Funds' average daily net
assets of the Class B and Class C Shares. Fund Distributors may waive all or
part of its distribution fee at its sole discretion. During the six months ended
June 30, 1995, Fund Distributors voluntarily waived Class A distribution fees of
$40,241 and Class B distribution fees of $636, for Minnesota Insured Fund.
Minnesota Insured Fund and Minnesota Limited Term Tax Free Fund earned $4,653
and $8,143, respectively, in credits on uninvested cash balances held at the
custodian during the six months ended June 30, 1995. Of these amounts, $4,653
and $7,951 were used to reduce certain fees for various custodial, pricing and
accounting services provided by the custodian bank for Minnesota Insured Fund
and Minnesota Limited Term Tax Free Fund, respectively. The remaining $192
credits in Minnesota Limited Term Tax Free Fund are included in interest income.
Sales charges paid by Class A shareholders were $420,733 for Minnesota Tax
Free Fund, $308,222 for Minnesota Insured Fund, and $19,575 for Minnesota
Limited Term Tax Free Fund. Of these amounts, Fund Distributors received $58,665
for Minnesota Tax Free Fund, $42,246 for Minnesota Insured Fund and $3,432 for
Minnesota Limited Term Tax Free Fund. Contingent deferred sales charges paid by
Class C Shareholders were $1,294 for Minnesota Tax Free Fund, $567 for Minnesota
Insured Fund and $258 for Minnesota Limited Term Tax Free Fund.
(4) CAPITAL STOCK
Transactions in shares of capital stock during the periods ended June 30, 1995
and December 31, 1994 were as follows:
<TABLE>
<CAPTION>
MINNESOTA TAX FREE FUND
CLASS A CLASS B CLASS C
SIX MONTHS YEAR PERIOD FROM SIX MONTHS PERIOD FROM
ENDED ENDED MARCH 11, 1995* ENDED MAY 4, 1994*
JUNE 30, 1995 DECEMBER 31, TO JUNE 30, 1995 JUNE 30, 1995 TO DECEMBER 31,
(UNAUDITED) 1994 (UNAUDITED) (UNAUDITED) 1994
<S> <C> <C> <C> <C> <C>
Shares sold..................... 2,537,222 5,363,728 66,406 70,202 100,287
Shares issued for
reinvested distributions..... 761,331 1,650,611 175 2,229 743
Shares redeemed................. (2,402,695) (6,775,465) (166) (11,296) (7,419)
Increase in shares outstanding.. 895,858 238,874 66,415 61,135 93,611
</TABLE>
<TABLE>
<CAPTION>
MINNESOTA INSURED TAX FREE FUND
CLASS A CLASS B CLASS C
SIX MONTHS YEAR PERIOD FROM SIX MONTHS PERIOD FROM
ENDED ENDED MARCH 7, 1995* ENDED MAY 4, 1994*
JUNE 30, 1995 DECEMBER 31, TO JUNE 30, 1995 JUNE 30, 1995 TO DECEMBER 31,
(UNAUDITED) 1994 (UNAUDITED) (UNAUDITED) 1994
<S> <C> <C> <C> <C> <C>
Shares sold..................... 1,762,937 6,279,044 159,866 89,129 181,323
Shares issued for
reinvested distributions..... 651,797 1,127,749 762 4,368 1,946
Shares redeemed................. (2,536,111) (6,080,410) -- (9,409) (24,550)
Increase (decrease) in
shares outstanding........... (121,377) 1,326,383 160,628 84,088 158,719
</TABLE>
<TABLE>
<CAPTION>
MINNESOTA LIMITED TERM TAX FREE FUND
CLASS A CLASS C
SIX MONTHS PERIOD FROM SIX MONTHS PERIOD FROM
ENDED MARCH 1, 1994 ENDED MAY 4, 1994*
JUNE 30, 1995 TO DECEMBER 31, JUNE 30, 1995 TO DECEMBER 31,
(UNAUDITED) 1994 (UNAUDITED) 1994
<S> <C> <C> <C> <C>
Shares sold............................. 293,858 2,862,156 22,888 35,658
Shares issued for
reinvested distributions............. 138,307 162,269 732 276
Shares redeemed......................... (1,943,790) (2,189,053) (13,052) (3,461)
Increase (decrease) in shares outstanding (1,511,625) 835,372 10,568 32,473
</TABLE>
* Commencement of operations.
(5) FINANCIAL HIGHLIGHTS
Per shares data (rounded to the nearest cent) for a share of
capital stock outstanding and selected information for each period are as
follows:
<TABLE>
<CAPTION>
MINNESOTA TAX FREE FUND
CLASS A
SIX MONTHS
ENDED
JUNE 30, 1995
(UNAUDITED) 1994 1993 1992 1991 1990
<S> <C> <C> <C> <C> <C> <C>
Net asset value:
Beginning of period ............. $ 11.33 $ 12.85 $ 12.21 $ 12.07 $ 11.67 $ 11.68
Operations:
Net investment income ........... .31 .63 .64 .70 .75 .77
Net realized and unrealized
gain (loss) on investments .... .78 (1.48) .87 .23 .49 .02
Total from operations ....... 1.09 (.85) 1.51 .93 1.24 .79
Distributions to shareholders:
From net investment income ...... (.33) (.61)(a) (.64)(a) (.70)(a) (.75)(a) (.77)(a)
From net realized gains ......... -- (.05) (.23) (.09) (.09) (.03)
In excess of net realized gains . -- (.01) -- -- -- --
Total distributions ........... (.33) (.67) (.87) (.79) (.84) (.80)
Net asset value:
End of period ................... $ 12.09 $ 11.33 $ 12.85 $ 12.21 $ 12.07 $ 11.67
Total investment return (b) ........ 9.59% (6.73)% 12.70% 7.97% 11.04% 7.03%
Net assets at end of
period (000's omitted) .......... $444,580 $406,497 $458,145 $331,314 $251,594 $197,629
Ratios:
Ratio of expenses to
average daily net assets ...... .96%(e) .90% 1.02% .96% .83% .82%
Ratio of net investment income
to average daily net assets ... 5.23%(e) 5.29% 5.02% 5.73% 6.44% 6.68%
Assuming no voluntary waivers
and reimbursements:
Expenses (c) ............ .96%(e) .90% 1.02% 1.04% .98% 1.02%
Net investment income ... 5.23%(e) 5.29% 5.02% 5.65% 6.29% 6.48%
Portfolio turnover rate (excluding
short-term securities) ........ 38.94% 24.26% 31.77% 23.60% 26.40% 20.54%
</TABLE>
See accompanying notes to Financial Highlights.
<TABLE>
<CAPTION>
MINNESOTA TAX FREE FUND
CLASS B CLASS C
PERIOD FROM SIX MONTHS PERIOD FROM
MARCH 11, 1995(d) ENDED MAY 4, 1994(d)
TO JUNE 30, 1995 JUNE 30, 1995 DECEMBER 31,
(UNAUDITED) (UNAUDITED) 1994
<S> <C> <C> <C>
Net asset value:
Beginning of period ............. $ 11.90 $ 11.33 $ 11.96
Operations:
Net investment income ........... .17 .27 .34
Net realized and unrealized
gain (loss) on investments .... .19 .78 (.61)
Total from operations ....... .36 1.05 (.27)
Distributions to shareholders:
From net investment income ...... (.17) (.29) (.32)(a)
From net realized gains ......... -- -- (.04)
Total distributions ........... (.17) (.29) (.36)
Net asset value:
End of period ................... $ 12.09 $ 12.09 $ 11.33
Total investment return (b) ........ 2.94% 9.19% (2.30)%
Net assets at end of
period (000's omitted) .......... $ 803 $1,872 $1,061
Ratios:
Ratio of expenses to
average daily net assets ...... 1.39%(e) 1.70%(e) 1.72%(e)
Ratio of net investment income
to average daily net assets ... 4.40%(e) 4.45%(e) 4.56%(e)
Assuming no voluntary waivers
and reimbursements:
Expenses (c) ............ 1.39%(e) 1.70%(e) 1.72%(e)
Net investment income ... 4.40%(e) 4.45%(e) 4.56%(e)
Portfolio turnover rate (excluding
short-term securities) ........ 38.94% 38.94% 24.26%
</TABLE>
See accompanying notes to Financial Highlights.
<TABLE>
<CAPTION>
MINNESOTA INSURED FUND
CLASS A
SIX MONTHS
ENDED
JUNE 30, 1995 YEAR ENDED DECEMBER 31,
(UNAUDITED) 1994 1993 1992 1991 1990
<S> <C> <C> <C> <C> <C> <C>
Net asset value:
Beginning of period ................. $ 9.61 $ 11.02 $ 10.27 $ 10.07 $ 9.65 $ 9.64
Operations:
Net investment income ............... .26 .54 .54 .59 .60 .61
Net realized and unrealized
gain (loss) on investments ........ .75 (1.39) .84 .25 .48 .02
Total from operations ........... 1.01 (.85) 1.38 .84 1.08 .63
Distributions to shareholders:
From net investment income .......... (.28) (.52)(a) (.54)(a) (.59)(a) (.60)(a) (.61)(a)
From net realized gains ............. -- (.04) (.09) (.05) (.06) (.01)
Total distributions ............... (.28) (.56) (.63) (.64) (.66) (.62)
Net asset value:
End of period ....................... $ 10.34 $ 9.61 $ 11.02 $ 10.27 $ 10.07 $ 9.65
Total investment return (b) ............ 10.45% (7.88)% 13.80% 8.57% 11.59% 6.63%
Net assets at end of
period (000's omitted) .............. $304,360 $284,132 $311,187 $162,728 $68,250 $29,394
Ratios:
Ratio of expenses to
average daily net assets .......... .90%(e) .61% .70% .37% .78% .74%
Ratio of net investment income
to average daily net assets ....... 5.07%(e) 5.29% 4.93% 5.66% 6.13% 6.30%
Assuming no voluntary waivers and
reimbursements and reductions:
Expenses (c) ................ .93%(e) .94% 1.02% 1.06% 1.16% 1.25%
Net investment income ....... 5.04%(e) 4.96% 4.61% 4.97% 5.75% 5.79%
Portfolio turnover rate (excluding
short-term securities) ............ 39.38% 24.75% 18.25% 14.11% 43.68% 15.12%
</TABLE>
See accompnaying notes to Financial Highlights.
<TABLE>
<CAPTION>
MINNESOTA INSURED FUND
CLASS B CLASS C
PERIOD FROM SIX MONTHS PERIOD FROM
MARCH 7, 1995(d) ENDED MAY 4, 1994(d)
TO JUNE 30, 1995 JUNE 30, 1995 DECEMBER 31,
(UNAUDITED) (UNAUDITED) 1994
<S> <C> <C> <C>
Net asset value:
Beginning of period ................. $ 10.12 $ 9.61 $ 10.23
Operations:
Net investment income ............... .15 .22 .30
Net realized and unrealized
gain (loss) on investments ........ .21 .75 (.62)
Total from operations ........... .36 .97 (.32)
Distributions to shareholders:
From net investment income .......... (.15) (.24) (.28)(a)
From net realized gains ............. -- -- (.02)
Total distributions ............... (.15) (.24) (.30)
Net asset value:
End of period ....................... $ 10.33 $ 10.34 $ 9.61
Total investment return (b) ............ 3.28% 10.03% (3.14)%
Net assets at end of
period (000's omitted) .............. $1,659 $2,510 $1,525
Ratios:
Ratio of expenses to
average daily net assets .......... 1.37%(e) 1.68%(e) 1.36%(e)
Ratio of net investment income
to average daily net assets ....... 3.89%(e) 4.26%(e) 4.68%(e)
Assuming no voluntary waivers and
reimbursements and reductions:
Expenses (c) ................ 1.64%(e) 1.69%(e) 1.68%(e)
Net investment income ....... 3.62%(e) 4.25%(e) 4.36%(e)
Portfolio turnover rate (excluding
short-term securities) ............ 39.38% 39.38% 24.75%
</TABLE>
See accompanying notes Financial Highlights.
<TABLE>
<CAPTION>
MINNESOTA LIMITED TERM TAX FREE FUND
CLASS A
SIX MONTHS PERIOD FROM TWO MONTHS
ENDED MARCH 1, 1994 ENDED
JUNE 30, 1995 TO DECEMBER 31,FEBRUARY 28, YEAR ENDED DECEMBER 31,
(UNAUDITED) 1994 1994 1993 1992 1991 1990
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value:
Beginning of period ................. $ 10.50 $ 10.98 $ 11.16 $ 10.83 $ 10.69 $ 10.32 $ 10.26
Operations:
Net investment income ............... .26 .37 .08 .47 .51 .55 .60
Net realized and unrealized
gain (loss) on investments ........ .46 (.48) (.18) .37 .18 .37 .06
Total from operations ........... .72 (.11) (.10) .84 .69 .92 .66
Distributions to shareholders:
From net investment income .......... (.26) (.37)(a) (.08)(a) (.47)(a) (.51)(a) (.55)(a) (.60)
(a)
From net realized gains ............. -- -- -- (.04) (.04) -- --
Total distributions ............... (.26) (.37) (.08) (.51) (.55) (.55) (.60)
Net asset value:
End of period ....................... $ 10.96 $ 10.50 $ 10.98 $ 11.16 $ 10.83 $ 10.69 $ 10.32
Total investment return (b) ............ 6.77% (0.98)% (.95)% 7.88% 6.62% 9.24% 6.59%
Net assets at end of
period (000's omitted) .............. $71,293 $84,168 $78,823 $75,374 $48,210 $27,268 $22,526
Ratios:
Ratio of expenses to
average daily net assets .......... .97%(e) .92%(e) .88%(e) .99% 1.09% 1.23% 1.18%
Ratio of net investment income
to average daily net assets ....... 4.71%(e) 4.20%(e) 4.02%(e) 4.18% 4.71% 5.35% 5.81%
Assuming no voluntary waivers and
reimbursements and reductions:
Expenses (c) ................ .99%(e) .92%(e) .88%(e) .99% 1.09% 1.23% 1.18%
Net investment income ....... 4.69%(e) 4.20%(e) 4.02%(e) 4.18% 4.71% 5.35% 5.81%
Portfolio turnover rate (excluding
short-term securities) ............ 27.65% 42.05% .01% 19.13% 25.56% 43.39% 51.47%
</TABLE>
See accompanying notes to Financial Highlights.
<TABLE>
<CAPTION>
MINNESOTA LIMITED TERM TAX FREE FUND
CLASS C
SIX MONTHS PERIOD FROM
ENDED APRIL 30, 1994(d)
JUNE 30, 1995 DECEMBER 31,
(UNAUDITED) 1994
<S> <C> <C>
Net asset value:
Beginning of period ................. $ 10.50 $ 10.74
Operations:
Net investment income ............... .22 .24
Net realized and unrealized
gain (loss) on investments ........ .46 (.24)
Total from operations ........... .68 --
Distributions to shareholders:
From net investment income .......... (.22) (.24)(a)
Net asset value:
End of period ....................... $ 10.96 $ 10.50
Total investment return (b) ............ 6.37% (0.03)%
Net assets at end of
period (000's omitted) .............. $ 472 $ 341
Ratios:
Ratio of expenses to
average daily net assets .......... 1.71%(e) 1.71%(e)
Ratio of net investment income
to average daily net assets ....... 3.90%(e) 3.35%(e)
Assuming no voluntary waivers and
reimbursements and reductions:
Expenses (c) ................ 1.73%(e) 1.71%(e)
Net investment income ....... 3.88%(e) 3.35%(e)
Portfolio turnover rate (excluding
short-term securities) ............ 27.65% 42.05%
</TABLE>
See accompanying notes to Financial Highlights.
NOTES TO FINANCIAL HIGHLIGHTS
(a) For federal income tax purposes, all of the distributions from net
investment income were derived from interest on securities exempt from
federal income tax. For Class A Shares for the year ended December 31,
1990, $.01 and $.02 per share of the distributions from net investment
income were subject to state income tax for Minnesota Tax Free Fund and
Minnesota Insured Fund, respectively.
(b) Total investment return is based on the change in net asset value of a
share during the period and assumes reinvestment of distributions at net
asset value and does not reflect the impact of a sales charge.
(c) Voyageur and Fund Distributors voluntarily waived or reimbursed expenses
during several periods presented. The annual contractual expense limit
for the Funds (excluding distribution fees, insurance premiums on
portfolio securities, taxes, interest and brokerage commissions) is 1.00%
of average daily net assets. The maximum distribution fee is .25% of each
Fund's average daily net assets for Class A Shares and 1.00% of each
Fund's average daily net assets for Class B and Class C Shares.
(d) Commencement of operations.
(e) Annualized.
<TABLE>
<CAPTION>
VOYAGEUR MINNESOTA TAX FREE FUND
INVESTMENTS IN SECURITIES (UNAUDITED) JUNE 30, 1995
PRINCIPAL
AMOUNT COUPON MARKET
($000) NAME OF ISSUER (d) RATE MATURITY VALUE (a)
(PERCENTAGE OF EACH INVESTMENT CATEGORY RELATES TO TOTAL NET ASSETS.)
MINNESOTA MUNICIPAL BONDS (98.8%):
ESCROWED WITH U.S. GOVERNMENT BONDS (4.9%):
<S> <C> <C> <C> <C>
$ 1,000 Anoka County Capital Improvement....................................... 7.20% 02-01-99 $ 1,081,230
250 Blaine IDR (Ball Corp)................................................. 8.25 12-01-99 284,378
300 Blaine IDR (Ball Corp)................................................. 8.25 12-01-00 347,949
390 Brainerd Independent School District #181.............................. 7.00 06-01-01 431,515
575 Kimball Independent School District #739............................... 7.70 02-01-98 619,568
525 Kimball Independent School District #739............................... 7.60 02-01-98 564,432
575 Little Falls Independent School District #482 (AMBAC Insured).......... 6.80 02-01-99 539,220
860 Northfield College Facility Revenue - St. Olaf College................. 8.00 10-01-98 947,247
1,255 Northfield College Facility Revenue - St. Olaf College................. 7.88 10-01-98 1,377,651
1,000 Owatonna Public Utilities.............................................. 6.75 01-01-01 1,098,120
750 Rockford Independent School District #833.............................. 7.20 12-15-98 814,170
990 Southern Minnesota Muni Power Agency Power Supply...................... 5.50 01-01-15 955,588
4,790 Southern Minnesota Muni Power Agency Power Supply...................... 5.75 01-01-18 4,715,755
1,000 St. Cloud Independent School District #742............................. 7.50 02-01-98 1,068,950
775 St. Louis Park Methodist Hospital (AMBAC Insured)...................... 7.25 07-01-00 877,928
2,175 St. Paul Sewer Revenue Series 88A...................................... 8.00 12-01-98 2,421,863
1,500 University of Minnesota Revenue Refunding ETM.......................... 6.00 02-01-11 1,517,760
1,560 Wayzata Independent School District #284............................... 7.10 02-01-99 1,678,997
625 Wayzata Independent School District #284............................... 7.05 02-01-99 671,656
22,013,977
GENERAL OBLIGATION (34.5%):
2,325 Austin Independent School District #492 (FSA Insured).................. 5.10 02-01-12 2,146,115
1,450 Becker Independent School District #726 (Capital Guaranty Insured)..... 5.30 02-01-11 1,387,708
1,235 Becker Independent School District #726 (Capital Guaranty Insured)..... 5.38 02-01-14 1,175,337
500 Bloomington Tax Increment.............................................. 9.75 02-01-08 661,290
1,000 Byron Independent School District #531 (AMBAC Insured)................. 5.30 06-01-14 942,660
1,805 Centennial Independent School District #12 (FGIC Insured).............. 4.88 02-01-10 1,659,048
1,305 Centennial Independent School District #12 (FGIC Insured).............. 4.88 02-01-12 1,177,528
2,850 Chaska Independent School District #112 (FGIC Insured)................. 5.25 02-01-11 2,698,409
5,085 Chaska Independent School District #112 (FGIC Insured)................. 5.38 02-01-14 4,811,732
3,055 Dover Eyota Independent School District #533 (AMBAC Insured)........... 5.25 02-01-20 2,806,354
6,980 Edina Independent School District #273................................. 5.75 02-01-13 7,019,786
1,000 Faribault Independent School District #656 (MN School District
Credit Enhanced)...................................................... 6.10 06-01-10 1,026,720
3,500 Farmington Independent School District #192 (AMBAC Insured)............ 5.13 02-01-15 3,214,050
1,760 Fergus Falls Independent School District #544 (MBIA Insured)........... 5.30 02-01-14 1,660,102
4,050 Hennepin County........................................................ 5.63 10-01-07 4,144,770
11,290 Hennepin County........................................................ 5.75 10-01-10 11,401,658
3.675 Hopkins Independent School District #270 (MBIA Insured)................ 4.88 02-01-13 3,297,026
1,000 Lake of the Woods Independent School District #390 (MBIA Insured)...... 5.10 02-01-16 910,690
1,180 Lake of the Woods Independent School District #390 (MBIA Insured)...... 5.13 02-01-20 1,063,640
5,600 Lakeville Independent School District #194 (MBIA Insured).............. 5.13 02-01-13 5,188,456
8,705 Lakeville Independent School District #194 (MBIA Insured).............. 5.15 02-01-15 8,019,046
9,700 Lakeville Independent School District #194 (FGIC Insured).............. 5.60 02-01-18 9,386,011
1,540 Mahtomedi Independent School District #832 Zero Coupon (MBIA Insured). 5.90(g) 02-01-14 510,710
3,870 Mankato Independent School District #77 (Capital Guaranty Insured)..... 5.30 02-01-13 3,663,690
10,000 Maplewood Independent School District #622 (Capital Guaranty Insured).. 7.10 02-01-25 10,943,900
1,015 Milaca Independent School District #921 (FSA Insured).................. 5.50 02-01-20 960,119
1,000 Minneapolis Convention Center Facilities............................... 5.45 04-01-13 979,110
2,000 Minneapolis G.O........................................................ 5.20 03-01-13 1,902,920
1,750 Minneapolis Unlimited Tax Series 1992 G.O.............................. 6.30 10-01-08 1,872,203
3,495 Minnesota State G.O.................................................... 5.50 08-01-09 3,471,199
3,745 Minnesota State G.O.................................................... 5.40 08-01-09 3,683,282
2,000 Minnesota State G.O.................................................... 4.90 08-01-11 1,823,160
1,140 New York Mills Independent School District #53 (AMBAC Insured)......... 5.05 02-01-15 1,035,234
240 Pine Island Independent School District #255 (Capital Guaranty Insured) 6.63 06-01-12 251,345
310 Pine Island Independent School District #255 (Capital Guaranty Insured) 6.63 06-01-13 324,387
330 Pine Island Independent School District #255 (Capital Guaranty Insured) 6.63 06-01-14 345,886
355 Pine Island Independent School District #255 (Capital Guaranty Insured) 6.63 06-01-15 370,879
380 Pine Island Independent School District #255 (Capital Guaranty Insured) 6.63 06-01-16 396,667
385 Plainview Independent School District #810............................. 6.70 02-01-06 415,800
420 Plainview Independent School District #810............................. 6.75 02-01-07 454,650
445 Plainview Independent School District #810............................. 6.75 02-01-08 481,712
1,000 Rochester Tax Increment................................................ 6.50 12-01-04 1,040,900
2,760 Rockford Independent School District #883 (Capital Guaranty Insured)... 5.25 12-15-14 2,581,842
9,375 Rosemount - Apple Valley Independent School District #196
(Capital Guaranty Insured)........................................... 5.88 04-01-15 9,414,750
2,600 Rosemount Independent School District #196 Zero Coupon
(Capital Guaranty Insured)........................................... 5.93(g) 04-01-11 1,033,422
1,850 Rosemount Independent School District #196 Zero Coupon
(Capital Guaranty Insured)........................................... 5.96(g) 04-01-12 687,830
1,915 Rosemount Independent School District #196 Zero Coupon
(Capital Guaranty Insured)........................................... 6.01(g) 04-01-13 669,158
1,850 Sartell Independent School District #748 (MBIA Insured)................ 5.75 02-01-15 1,834,904
1,655 South Washington County Independent School District #833 (FGIC Insured) 4.88 06-01-10 1,519,191
1,400 South Washington County Independent School District #833 (FGIC Insured) 4.88 06-01-11 1,253,182
1,310 South Washington County Independent School District #833 (FGIC Insured) 4.88 06-01-12 1,180,493
1,350 South Washington County Independent School District #833 (FGIC Insured) 4.88 06-01-13 1,209,627
2,170 South Washington County Independent School District #833 (FGIC Insured) 4.88 06-01-14 1,933,687
1,540 St. Paul Housing & Redevelopment Authority St. Paul Academy Series 93.. 5.45 10-01-23 1,403,895
3,000 Stillwater Independent School District #834 (MBIA Insured)............. 5.75 02-01-15 2,975,520
1,500 Thief River Falls Independent School District #564 (FSA Insured)....... 5.35 04-01-13 1,419,810
1,680 Washington County...................................................... 5.90 02-01-10 1,696,010
7,625 White Bear Lake Independent School District #624 (FSA Insured)......... 5.30 02-01-11 7,259,763
5,750 White Bear Lake Independent School District #624 (FSA Insured)......... 5.30 02-01-14 5,392,580
154,191,553
UTILITIES (15.1%):
1,750 Bass Brook PCR Minnesota Power & Light (MBIA Insured).................. 6.00% 07-01-22 1,750,578
21,005 Bass Brook PCR Minnesota Power & Light................................. 6.00 07-01-22 20,350,694
1,000 Moorhead Public Utilities Revenue (MBIA Insured)....................... 6.25 11-01-12 1,027,510
3,815 Northern Minnesota Municipal Power Agency Zero Coupon (AMBAC Insured).. 5.85(g) 01-01-09 1,752,993
9,200 Northern Minnesota Municipal Power Agency (AMBAC Insured).............. 5.50 01-01-18 8,788,944
5,875 Northern Minnesota Municipal Power Agency.............................. 7.25 01-01-16 6,396,406
3,880 Southern Minnesota Municipal Power Agency Series A (FGIC Insured)...... 5.00 01-01-12 3,536,387
2,000 Southern Minnesota Municipal Power Agency Series B (FGIC Insured)...... 5.00 01-01-13 1,812,560
1,560 Southern Minnesota Municipal Power Agency Supply System (AMBAC Insured) 5.50 01-01-15 1,493,497
8,200 Southern Minnesota Municipal Power Agency (MBIA Insured)............... 4.75 01-01-16 7,074,140
5,770 Southern Minnesota Municipal Power Agency (FGIC Insured)............... 5.75 01-01-18 5,655,869
5,770 Southern Minnesota Municipal Power Agency (MBIA Insured)............... 5.75 01-01-18 5,655,870
4,785 Southern Minnesota Municipal Power Agency Zero Coupon(MBIA Insured).... 6.77(g) 01-01-19 1,166,774
5,000 Southern Minnesota Municipal Power Agency Zero Coupon (MBIA Insured)... 6.14(g) 01-01-21 1,078,500
67,540,722
INDUSTRIAL (5.1%):
1,000 Anoka Resource Recovery Revenue for NSP................................ 7.15 12-01-08 1,079,830
1,000 Apple Valley CDR Development Project................................... 8.00 07-01-15(c)1,000,000
2,000 Becker Pollution Control Revenue for NSP............................... 6.80 04-01-07 2,155,000
1,430 Minneapolis Community Development Agency (Fireman's Fund Insured)...... 7.63 06-01-06 1,499,713
1,990 Minnesota Public Facilities Authority.................................. 7.10 03-01-12 2,184,025
5,220 Minnesota Public Facilities Authority.................................. 6.95 03-01-13 5,755,050
4,400 Minnesota Public Facilities Authority Water Control.................... 6.25 03-01-16 4,542,428
745 Red Wing IDR K-Mart.................................................... 5.50 07-01-08 705,932
2,200 Richfield CDR for Richfield Shoppes.................................... 8.38(j) 10-01-13 2,227,500
1,300 St. Paul Port Authority Fort Road Medical/Twin Parks
(Asset Guaranty Reinsurance)......................................... 7.50 09-01-02 1,415,050
22,564,528
HEALTH CARE (23.9%):
1,000 Albert Lea St. John's Lutheran Home Project............................ 8.50 11-01-19 1,094,100
2,685 Bloomington Masonic Home Care Center (AMBAC Insured)................... 5.88 07-01-22 2,661,641
2,250 Brainerd Benedictine Health Systems (Connie Lee Insured)............... 6.00 02-15-12 2,254,230
9,450 Duluth Benedictine/St. Mary's Health (Connie Lee Insured).............. 6.00 02-15-20 9,407,191
4,295 Duluth Economic Development Authority St. Luke's Hospital
(Connie Lee Insured)................................................. 6.40 05-01-18 4,413,843
2,500 Edina Fairview Hospital Revenue........................................ 7.13 07-01-19 2,718,750
1,000 Faribault St. Luke's Hospital Housing Facility ........................ 9.00 02-01-21 1,000,000
500 Glencoe/McLeod County Health Care...................................... 8.50 12-01-15 527,020
1,000 Little Canada Health Care (Presbyterian Homes Guaranteed).............. 7.25 07-01-12 953,750
3,000 Minneapolis Fairview Hospital Revenue (MBIA Insured)................... 6.50 01-01-11 3,152,670
6,800 Minneapolis Fairview Hospital Revenue Series 1993A (MBIA Insured)...... 5.25 11-15-13 6,350,520
1,360 Minneapolis/St. Paul HRA HealthOne Group (MBIA Insured)................ 7.40 08-15-11 1,521,500
20,725 Robbinsdale North Memorial Medical Center (AMBAC Insured).............. 5.50% 05-15-23 19,328,964
1,500 Rochester Mayo Health Care Revenue..................................... 5.90 11-15-10 1,521,090
6,000 Rochester Mayo Health Care Revenue Series 92H.......................... 6.03 11-15-15 6,032,700
5,900 Rochester Mayo Foundation, Series 1992 D............................... 6.25 11-15-21 5,987,025
5,500 Rochester Mayo Foundation, Series 1992 I............................... 5.75 11-15-21 5,332,745
2,000 Roseville Presbyterian Homes, Inc. Health Care Proj.
(Presbyterian Homes Guaranteed)...................................... 7.50 05-01-07 2,081,720
600 Spring Park Twin Birch Nursing Home (Presbyterian Homes Guaranteed).... 8.25 08-01-11 639,132
750 Springfield St. John's Lutheran Home Project........................... 8.50 11-01-19 798,637
10,250 St. Cloud Hospital Revenue (AMBAC Insured)............................. 5.30 10-01-20 9,412,985
22,220 St. Louis Park Methodist Hospital (AMBAC Insured)...................... 5.20 07-01-23 19,768,690
106,958,903
HOUSING (12.2%):
2,500 Brooklyn Center Multifamily Housing Revenue (Section 8)................ 5.90 01-01-20 2,323,150
1,000 Burnsville Coventry Court Apartments Project (FHA Insured)............. 7.50 09-01-17 1,052,510
3,370 Burnsville Multifamily - Bridgeway Apartments.......................... 7.63 02-01-24 3,411,283
235 Dakota County Housing and Redevelopment Authority (GNMA Backed)........ 8.10 03-01-16 250,390
1,000 Eagan Forest Ridge Apartments Project (FHA Insured).................... 7.50 09-01-17 1,052,510
400 Eden Prairie Multifamily Revenue, Eden Investments (FHA Insured)....... 7.40 08-01-25 418,968
1,585 Eden Prairie Multifamily Windslope Apartments (Section 8).............. 7.10 11-01-17 1,645,167
1,725 Edina Park Plaza (FHA Insured)......................................... 7.50 12-01-09 1,832,536
1,250 Edina Park Plaza (FHA Insured)......................................... 7.70 12-01-28 1,315,425
1,000 Hopkins Augustana Home Project......................................... 9.00 07-01-20 1,052,020
250 Little Canada Housing Facility 1992 (Presbyterian Homes Guaranteed).... 7.25 07-01-12 238,438
1,000 Maplewood Hazel Ridge Apartments....................................... 9.25 12-01-00(c)1,060,110
2,135 Minneapolis Community Development Agency and St. Paul Housing
Redevelopment Agency Family Housing Phase II........................ 7.75 07-01-06 2,211,561
1,000 Minneapolis Housing Facility Revenue 1993 Augustana Chapel View........ 7.00 04-01-18 964,870
865 Minneapolis Housing and Redevelopment Authority........................ 7.10 12-01-10 867,024
4,000 Minneapolis Multifamily Mortgage Seward Towers (GNMA Backed)........... 7.38 12-20-30 4,180,040
1,000 Minnesota Housing Finance Agency Housing Development................... 7.80 08-01-18 1,025,090
1,500 Minnesota Housing Finance Agency Multifamily Housing................... 6.95 02-01-14 1,549,620
745 Minnesota Housing Finance Agency Multifamily Housing................... 6.95 08-01-17 761,807
1,400 Minnesota Housing Finance Agency Residential Mortgage.................. 9.28 07-01-05 1,442,112
495 Minnesota Housing Finance Agency Single Family Mortgage................ 7.65 07-01-08 533,783
460 Minnesota Housing Finance Agency Single Family Mortgage................ 7.30 07-01-09 482,641
235 Minnesota Housing Finance Agency Single Family Mortgage................ 7.30 07-01-10 245,972
1,010 Minnesota Housing Finance Agency Single Family Mortgage................ 7.10 07-01-11 1,052,430
1,140 Minnesota Housing Finance Agency Single Family Mortgage................ 7.25 07-01-16 1,163,621
2,000 Minnetonka Multifamily - Beacon Hill Project........................... 7.70 06-01-25 2,032,180
1,500 Red Wing Housing and Redevelopment Agency Jordan Tower (Section 8)..... 7.00 01-01-19 1,545,360
2,250 St. Cloud Germain Towers Housing Series 1993 (Section 8)............... 5.90 09-01-20 2,060,302
2,045 St. Cloud Housing and Redevelopment Agency Northway A&B Project
(Section 8).......................................................... 7.50 12-01-18 2,122,178
3,865 St. Louis Park Multifamily Housing (GNMA Backed)....................... 5.75 01-01-29 3,559,279
1,890 St. Louis Park Single Family (GNMA Backed)............................. 7.25 04-20-23 1,972,839
1,000 St. Paul Housing and Redevelopment Agency Como Lake Project
(FHA Insured)........................................................ 7.01(i) 03-01-26 930,000
80 St. Paul Housing and Redevelopment Agency Single Family Mortgage
(FNMA Backed)........................................................ 6.90 12-01-11 83,300
1,885 St. Paul Housing and Redevelopment Agency Single Family Mortgage
(FNMA Backed)........................................................ 6.90 12-01-21 1,942,907
1,100 Twin Valley First Mortgage (FHA Insured)............................... 8.50 02-01-11 1,113,244
2,130 Wadena Housing and Redevelopment Agency Humphrey Manor (Section 8)..... 6.00 02-01-19 1,974,553
1,130 Wells Housing and Redevelopment Agency Broadway Apartment Project
(Section 8).......................................................... 7.00 01-01-19 1,150,736
2,050 Willmar Housing and Redevelopment Agency Highland Apartments
(Section 8).......................................................... 5.85 06-01-19 1,927,061
54,547,017
EDUCATION (1.4%):
4,000 Minnesota Higher Education Carleton College............................ 5.75 11-01-12 3,969,320
1,000 Minnesota Higher Education St. Thomas University....................... 5.60 09-01-14 959,890
1,290 Minnesota State University Board Series 1993 C (MBIA Insured) ......... 5.50 06-30-12 1,252,590
6,181,800
CERTIFICATE OF PARTICIPATION (0.4%):
1,896 West St. Paul Commercial Mortgage (K-Mart Lessee)...................... 7.00(j) 11-01-07 1,872,452
OTHER (1.3%):
5,750 Minneapolis Community Development Agency Zero Coupon................... 6.70 (g) 09-01-09 2,542,478
510 Minneapolis Community Development Agency Common Bond Fund.............. 7.13 12-01-05 542,288
855 Minneapolis Community Development Agency Common Bond Fund.............. 7.95 12-01-11 906,300
795 Minneapolis Community Development Agency Common Bond Fund.............. 7.40 12-01-21 828,795
1,120 St. Louis Park Refunding Revenue G & K Partner, Methodist Hospital
Guaranteed........................................................... 7.25 06-01-13 1,150,184
5,970,045
TOTAL INVESTMENT IN SECURITIES (cost: $432,973,439) (f) $441,840,997
</TABLE>
See accompanying notes to investments in securities.
<TABLE>
<CAPTION>
VOYAGEUR MINNESOTA INSURED FUND
INVESTMENTS IN SECURITIES (UNAUDITED) JUNE 30, 1995
PRINCIPAL
AMOUNT COUPON MARKET
($000) NAME OF ISSUER (d) RATE MATURITY VALUE (a)
(PERCENTAGE OF EACH INVESTMENT CATEGORY RELATES TO TOTAL NET ASSETS.)
MINNESOTA MUNICIPAL BONDS (98.2%):
ESCROWED WITH U.S. GOVERNMENT BONDS (21.8%):
<S> <C> <C> <C>
$ 1,065 Brainerd Independent School District #181 ((FGIC Insured).............. 7.00% 06-01-01 $ 1,181,255
700 Centennial Independent School District #12 (Capital Guaranty Insured).. 7.15 02-01-00 774,298
200 Centennial Independent School District #12 (Capital Guaranty Insured).. 7.10 02-01-00 220,820
9,000 Dakota, Washington & Anoka Single Family Housing (GNMA Insured)........ 8.45 09-01-19 11,792,430
10,115 Dakota & Washington Counties HRA Single Family Mortgage Revenue........ 8.38(e) 09-01-21 13,236,590
405 Dakota & Washington Counties HRA (MBIA Insured)........................ 8.15(e) 09-01-16 512,811
500 Delano Independent School District #879 (AMBAC Insured)................ 7.25 02-01-01 557,930
3,000 Duluth Benedictine St. Mary's Health .................................. 8.38 02-15-00 3,513,900
200 Elk River Independent School District #728 (Capital Guaranty Insured).. 7.00 02-01-00 218,280
1,165 Elk River Independent School District #728 (Capital Guaranty Insured).. 6.30 02-01-02 1,255,625
450 Lake of the Woods Independent School District #390 (AMBAC Insured)..... 7.35 02-01-99 492,611
3,715 Minneapolis - St. Paul HRA HealthOne................................... 8.00 08-15-00 4,342,835
2,470 Minneapolis Special School District #1................................. 7.38 02-01-98 2,654,608
1,000 Minnesota State........................................................ 7.00 08-01-00 1,109,760
1,000 Minnesota State........................................................ 6.63 08-01-00 1,103,360
760 Minnesota State University System (MBIA Insured)....................... 7.40 06-30-99 841,062
2,700 Robbinsdale North Memorial Medical Center (AMBAC Insured).............. 7.38 01-01-99 2,994,084
520 South Washington County Independent School District #833 (FGIC Insured) 6.88 06-01-00 567,793
670 Southern Minnesota Municipal Power Agency (AMBAC Insured).............. 5.75 01-01-18 659,615
1,000 St. Cloud Multifamily Housing for St. Cloud Hospital................... 8.38 07-01-96 1,058,850
250 St. Francis Independent School District #15 (FGIC Insured)............. 7.60 02-01-98 269,092
500 St. Louis Park Methodist Hospital (AMBAC Insured)...................... 7.25 07-01-00 566,405
2,550 St. Michael - Albertville Independent School District #885
(AMBAC Insured)...................................................... 7.25 02-01-98 2,696,625
2,775 Stillwater Independent School District #834(FGIC Insured).............. 6.75 02-01-99 2,964,505
3,925 University of Minnesota Regents........................................ 7.75 02-01-96 4,087,691
500 Washington County HRA Jail Facilities (MBIA Insured).................. 7.00 02-01-02 562,830
2,000 Western Minnesota Municipal Power Agency Escrowed to Maturity.......... 6.60 01-01-10 2,196,660
2,580 Western Minnesota Municipal Power Agency (AMBAC Insured)............... 9.50 01-01-96 2,700,796
715 Western Minnesota Municipal Power Agency (MBIA Insured)................ 9.75 01-01-16 1,048,176
1,000 Wright County (Capital Guaranty Insured)............................... 7.20 12-01-99 1,102,500
67,283,797
GENERAL OBLIGATION (38.6%):
1,575 Alexandria Independent School District #206 (MBIA Insured)............. 6.30 02-01-11 1,634,330
1,675 Alexandria Independent School District #206 (MBIA Insured)............. 6.30 02-01-12 1,730,292
1,775 Alexandria Independent School District #206 (MBIA Insured)............. 6.30 02-01-13 1,830,842
8,045 Anoka County (FGIC Insured)............................................ 5.90 02-01-11 8,105,498
1,625 Anoka/Hennepin Independent School District #11 (FGIC Insured).......... 5.00 02-01-10 1,516,418
6,300 Becker (MBIA Insured).................................................. 6.25 08-01-15 6,403,320
2,760 Big Lake Independent School District #727 (AMBAC Insured).............. 5.70 02-01-13 2,733,614
1,910 Blackduck Independent School District #32 (AMBAC Insured).............. 5.60 01-01-14 1,866,376
1,030 Buffalo Independent School District #887 (Capital Guaranty Insured).... 6.10 02-01-15 1,043,750
515 Carver County HRA Jail Facility (MBIA Insured)......................... 6.40 02-01-10 537,820
550 Carver County HRA Jail Facility (MBIA Insured)......................... 6.40 02-01-11 572,473
585 Carver County HRA Jail Facility (MBIA Insured)......................... 6.40 02-01-12 606,791
625 Carver County HRA Jail Facility (MBIA Insured)......................... 6.40 02-01-13 647,519
670 Carver County HRA Jail Facility (MBIA Insured)......................... 6.40 02-01-14 693,329
1,000 Centennial Independent School District #12 (FGIC Insured).............. 4.88 02-01-09 931,770
1,135 Dakota County (AMBAC Insured).......................................... 6.40 02-01-08 1,190,331
1,000 Dakota County (AMBAC Insured).......................................... 6.45 02-01-09 1,050,000
2,500 Dakota County (AMBAC Insured).......................................... 6.45 02-01-10 2,625,000
2,500 Eden Prairie Independent School District #272 (FGIC Insured)........... 5.85 02-01-13 2,508,375
6,200 Eden Prairie Independent School District #272 (FGIC Insured)........... 5.65 02-01-13 6,106,814
5,025 Elk River Independent School District #728 (AMBAC Insured)............. 6.00 02-01-09 5,148,531
230 Ellendale-Geneva Independent School District #762 (AMBAC Insured)...... 6.00 02-01-10 233,758
245 Ellendale-Geneva Independent School District #762 (AMBAC Insured)...... 6.00 02-01-11 248,285
265 Ellendale-Geneva Independent School District #762 (AMBAC Insured)...... 6.00 02-01-12 267,825
280 Ellendale-Geneva Independent School District #762 (AMBAC Insured)...... 6.00 02-01-13 282,730
300 Ellendale-Geneva Independent School District #762 (AMBAC Insured)...... 6.00 02-01-14 302,688
320 Ellendale-Geneva Independent School District #762 (AMBAC Insured)...... 6.00 02-01-15 322,691
850 Farmington Independent School District #192 (MBIA Insured)............. 6.80 02-01-11 898,178
1,800 Hennepin County (MBIA Insured)......................................... 5.75 10-01-10 1,810,062
1,900 Hopkins Independent School District #270 (MBIA Insured)................ 4.80 02-01-10 1,732,211
2,500 Hopkins Independent School District #270 (MBIA Insured................. 4.85 02-01-12 2,249,200
3,875 Hopkins Independent School District #270 (MBIA Insured)................ 4.88 02-01-14 3,457,236
6,175 Lakeville Independent School District #194 (MBIA Insured).............. 5.13 02-01-13 5,721,199
1,100 Mankato Independent School District #77 (Capital Guaranty Insured)..... 5.20 02-01-10 1,049,147
5,935 Maplewood Independent School District #622 (MBIA Insured).............. 7.10 02-01-19 6,518,054
11,525 Maplewood Independent School District #622 (MBIA Insured).............. 7.10 02-01-25 12,612,845
475 Moorhead Independent School District #152 (AMBAC Insured).............. 5.90 02-01-10 478,938
505 Moorhead Independent School District #152 (AMBAC Insured).............. 5.90 02-01-11 508,303
540 Moorhead Independent School District #152 (AMBAC Insured).............. 5.90 02-01-12 542,894
575 Moorhead Independent School District #152 (AMBAC Insured).............. 6.00 02-01-13 579,347
220 Preston-Fountain Independent School District #233
(Capital Guaranty Insured)........................................... 5.75 03-01-12 219,514
235 Preston-Fountain Independent School District #233
(Capital Guaranty Insured)........................................... 5.75 03-01-13 234,025
250 Preston-Fountain Independent School District #233
(Capital Guaranty Insured)........................................... 5.80 03-01-14 249,892
270 Preston-Fountain Independent School District #233
(Capital Guaranty Insured)........................................... 5.80 03-01-15 269,349
2,640 Rockford Independent School District #833 (Capital Guaranty Insured)... 5.20 12-15-11 2,494,325
500 Roseau Independent School District #682 (AMBAC Insured)................ 7.00 02-01-16 539,375
1,860 Rosemount Independent School District #196 Zero Coupon
(Capital Guaranty Insured)........................................... 5.80(g) 04-01-09 842,431
2,240 Rosemount Independent School District #196 Series B Zero Coupon
(Capital Guaranty Insured)........................................... 5.85(g) 04-01-10 950,880
625 South St. Paul Independent School District #6 (FGIC Insured)........... 6.25 02-01-10 640,388
500 South St. Paul Independent School District #6 (FGIC Insured)........... 6.45 02-01-11 516,210
300 South St. Paul Independent School District #6 (FGIC Insured)........... 6.45 02-01-12 308,973
1,430 South Washington County Independent School District #833 (FGIC Insured) 6.13 06-01-09 1,468,353
2,720 South Washington County Independent School District #833 (FGIC Insured) 6.13 06-01-11 2,766,594
1,000 St. Cloud Independent School District #742 (FGIC Insured)............. 6.05 02-01-09 1,027,280
1,845 St. Francis Independent School District #15 (FGIC Insured)............. 5.90 04-01-10 1,865,000
1,595 Stillwater Independent School District #834 (FGIC Insured)............. 5.50 02-01-08 1,592,065
5,995 Stillwater Independent School District #834 (FGIC Insured)............. 5.50 02-01-10 5,865,508
3,960 Warroad Independent School District #690 (AMBAC Insured)............... 5.20 02-01-13 3,701,848
4,100 Willmar Independent School District #347 (AMBAC Insured)............... 6.25 02-01-15 4,185,485
119,036,279
UTILITIES (7.8%):
5,250 Bass Brook PCR for Minnesota Power & Light Company (MBIA Insured)...... 6.00 07-01-22 5,251,732
500 Marshall Utility Revenue (Capital Guaranty Insured).................... 6.45 07-01-10 527,920
100 Marshall Utility Revenue (Capital Guaranty Insured).................... 6.45 07-01-11 105,189
500 Marshall Utility Revenue (Capital Guaranty Insured).................... 6.50 07-01-12 525,895
500 Marshall Utility Revenue (Capital Guaranty Insured).................... 6.50 07-01-13 525,240
735 Moorhead Public Utilities (MBIA Insured)............................... 6.25 11-01-12 755,220
6,700 Northern Minnesota Municipal Power Agency (AMBAC Insured).............. 5.50 01-01-18 6,400,644
1,330 Southern Minnesota Municipal Power Agency (AMBAC Insured).............. 5.75 01-01-18 1,303,693
4,000 Southern Minnesota Municipal Power Agency (MBIA Insured)............... 5.75 01-01-18 3,920,880
3,300 Southern Minnesota Municipal Power Agency (FGIC Insured)............... 5.75 01-01-18 3,234,726
1,605 Western Minnesota Municipal Power Agency (MBIA Insured)................ 5.50 01-01-15 1,545,583
24,096,722
INDUSTRIAL (0.5%):
1,500 Minnesota Public Facility Authority Water Pollution Control
(MBIA Insured)....................................................... 6.50 03-01-14 1,571,640
HEALTH CARE (21.4%):
1,250 Bloomington Masonic Home Care Center (AMBAC Insured)................... 5.90 07-01-09 1,270,275
1,500 Brainerd Benedictine Health (Connie Lee Insured)....................... 6.00 02-15-12 1,502,820
2,000 Brainerd Benedictine Health (Connie Lee Insured)....................... 6.00 02-15-20 1,990,940
1,630 Detroit Lakes Benedictine Health (Connie Lee Insured).................. 6.00 02-15-12 1,633,064
2,135 Detroit Lakes Benedictine Health (Connie Lee Insured).................. 6.00 02-15-19 2,125,499
3,750 Duluth for Duluth Clinic, Ltd. (AMBAC Insured)......................... 6.30 11-01-22 3,830,625
10,000 Duluth Benedictine/St. Mary's Health (Connie Lee Insured).............. 6.00 02-15-17 9,969,300
3,335 Duluth St. Luke's Hospital (Connie Lee Insured)........................ 6.40 05-01-10 3,486,743
2,000 Duluth St. Luke's Hospital (Connie Lee Insured)........................ 6.40 05-01-18 2,055,340
3,000 Minneapolis Fairview Hospital Series 91B (MBIA Insured)................ 6.50 01-01-11 3,152,670
2,750 Minneapolis Fairview Hospital Series 93A (MBIA Insured)................ 5.25 11-15-19 2,510,393
2,370 Minneapolis HRA HealthOne (MBIA Insured)............................... 7.40 08-15-11 2,651,437
19,490 Minneapolis/Saint Paul Healthspan Series 93A (AMBAC Insured)........... 5.00 11-15-13 17,610,774
3,100 Robbinsdale North Memorial Medical (AMBAC Insured)..................... 5.45 05-15-13 2,951,293
5,650 Robbinsdale North Memorial Medical (AMBAC Insured)..................... 5.50 05-15-23 5,269,416
500 St. Cloud Hospital Facility Revenue (AMBAC Insured).................... 7.00 07-01-07 549,340
2,000 St. Cloud Hospital Facility Revenue (AMBAC Insured).................... 5.25 10-01-13 1,878,940
500 St. Cloud Hospital Facility Revenue (AMBAC Insured).................... 6.75 07-01-15 531,195
1,200 St. Paul Ramsey Medical (AMBAC Insured)................................ 5.50 05-15-13 1,155,420
66,125,484
HOUSING (7.4%):
3,257 Chaska Waters Edge Multifamily Revenue (GNMA Insured).................. 7.30 01-20-30 3,501,275
6,450 Dakota County HRA Single Family Mortgage Revenue (FNMA Insured)........ 6.70 10-01-17 6,572,679
240 Dakota, Washington and Stearns Counties Single Family Mortgage Revenue
(MBIA Insured)...................................................... 7.85 (e) 12-01-30 254,309
400 Minnesota Housing Finance Agency Single Family Housing (MBIA Insured).. 9.00(e)(h)08-01-18 425,048
185 Minnesota Housing Finance Agency Single Family Mortgage Revenue
(MBIA Insured)...................................................... 8.50(e)(h)07-01-19 195,867
1,435 Minnesota Housing Finance Agency Single Family Mortgage Revenue
(AMBAC Insured)..................................................... 7.45(e) 07-01-22 1,500,106
510 Minnesota Housing Finance Agency Single Family Mortgage Revenue
(AMBAC Insured)..................................................... 7.05(e) 07-01-22 523,556
365 Minnesota Housing Finance Agency Single Family Mortgage Revenue
(MBIA Insured)...................................................... 7.95(e) 07-01-22 389,802
130 Minneapolis and St. Paul Housing Finance Board Housing Project Phase V
(GNMA Collateral) .................................................. 8.88(e) 11-01-18 139,525
1,380 Minneapolis and St. Paul Housing Finance Board Housing Project Phase IX
(GNMA Collateral)................................................... 7.25(e) 08-01-21 1,430,356
925 Minneapolis and St. Paul Housing Finance Board Housing Project Phase IX
(GNMA Collateral)................................................... 7.30(e) 08-01-31 955,146
205 Minneapolis and St. Paul Housing Finance Board Single Family Mortgage Revenue
(GNMA Backed)....................................................... 8.13(e) 12-01-14 219,253
160 Minneapolis and St. Paul Housing Finance Board Single Family Mortgage Revenue
(GNMA Backed)....................................................... 8.30(e) 08-01-21 169,781
4,000 St. Paul HRA Multifamily Housing (FNMA Backed)......................... 6.60 10-01-12 4,088,160
2,410 South St. Paul HRA Single Family Mortgage Series 1993 (FNMA Insured)... 5.75 09-01-20 2,260,869
22,625,732
OTHER REVENUE (0.7%):
2,000 Stearns County HRA Courthouse Project (AMBAC Insured).................. 7.00 02-01-11 2,160,000
TOTAL INVESTMENT IN SECURITIES (cost: $296,926,382) (f) $302,899,654
</TABLE>
See accompanying notes to investments in securities.
<TABLE>
<CAPTION>
VOYAGEUR MINNESOTA LIMITED TERM TAX FREE FUND
INVESTMENTS IN SECURITIES (UNAUDITED) JUNE 30, 1995
PRINCIPAL
AMOUNT COUPON MARKET
($000) NAME OF ISSUER (d) RATE MATURITY VALUE (a)
(PERCENTAGE OF EACH INVESTMENT CATEGORY RELATES TO TOTAL NET ASSETS.)
MINNESOTA MUNICIPAL BONDS (98.0%):
ESCROWED WITH U.S. GOVERNMENT BONDS (57.0%):
<S> <C> <C> <C>
$ 1,205 Austin Independent School District #492 (MBIA Insured)................. 6.88% 02-01-01 $ 1,322,789
3,015 Braham Independent School District #314 (AMBAC Insured)................ 6.30 02-01-01 3,226,020
250 Duluth EDA St. Mary's.................................................. 7.80 02-15-97 263,967
250 Duluth EDA St. Mary's.................................................. 7.90 02-15-98 271,768
150 Duluth EDA St. Mary's.................................................. 7.90 02-15-99 166,538
615 Eden Valley Watkins Independent School District #463
(Capital Guaranty Insured)........................................... 6.60 02-01-02 673,093
250 Eden Valley Watkins Independent School District #463
(Capital Guaranty Insured)........................................... 6.55 02-01-02 272,920
2,570 Mankato Independent School District #77 G.O............................ 6.35 02-01-02 2,777,065
1,000 Minneapolis Hennepin Avenue Series C................................... 6.70 03-01-02 1,113,050
1,410 Minneapolis Hennepin Avenue Series C G.O............................... 6.70 03-01-02 1,569,400
400 Minneapolis/Saint Paul HealthOne....................................... 7.45 08-15-99 442,996
325 Minneapolis/Saint Paul HealthOne....................................... 7.55 08-15-00 367,396
4,000 Minnesota State........................................................ 6.25 08-01-02 4,369,120
950 Olmsted County......................................................... 6.95 02-01-01 1,056,087
900 Olmsted County......................................................... 6.90 02-01-01 998,316
1,175 Olmsted County Minnesota Resource Recovery Series A G.O................ 5.90 02-01-05 1,218,240
800 Olmsted County Solid Waste Recovery.................................... 6.85 02-01-01 885,456
1,500 Rush City Independent School District #139 (AMBAC Insured)............. 6.30 02-01-01 1,604,985
5,660 St. Cloud Hospital..................................................... 7.00 07-01-01 6,418,100
215 St. James IDR Tony Downs Food Company Project.......................... 8.00 08-01-96 223,591
3,500 St. Louis Park Methodist Hospital (AMBAC Insured)...................... 7.25 07-01-00 3,964,835
3,000 Waconia Independent School District #110 (FGIC Insured)................ 6.40 02-01-00 3,201,060
4,000 Washington County Jail................................................. 7.00 02-01-02 4,502,640
40,909,432
GENERAL OBLIGATION (10.6%):
1,000 Eden Prairie Independent School District #272.......................... 5.25 02-01-02 1,014,370
500 Edina Independent School District #273................................. 5.40 02-01-03 515,070
675 Hennepin County........................................................ 4.50 12-01-01 668,682
1,000 Hopkins Independent School District #270 (MBIA Insured)................ 4.80 02-01-03 989,350
2,530 Minnesota State........................................................ 5.30 08-01-10 2,435,884
465 Minnetonka Independent School District #276............................ 5.75 02-01-99 485,200
500 Ramsey County.......................................................... 5.30 12-01-01 516,035
750 St. Cloud Independent School District #742 (FGIC Insured).............. 5.15 02-01-00 763,710
225 Western Lake Superior Sanitation District.............................. 6.10 10-01-00 233,514
7,621,815
UTILITIES (6.2%):
2,500 Eveleth IDR for Minnesota Power & Light Company........................ 6.13% 01-01-04 2,588,875
860 Northern Minnesota Municipal Power Agency.............................. 7.20 01-01-99 927,811
1,000 Southern Minnesota Municipal Power Agency Rev (FGIC Insured)........... 5.00 01-01-08 957,000
4,473,686
INDUSTRIAL (10.9%):
260 Duluth Convention Center............................................... 5.75 12-01-97 262,821
275 Duluth Convention Center............................................... 6.00 12-01-98 280,374
1,250 Duluth Convention Center............................................... 7.00 12-01-03 1,351,150
500 Metropolitan Council Sports Facilities Metrodome Project............... 5.40 10-01-01 514,390
1,720 Minnesota Public Facilities Authority Revenue Series A................. 6.55 03-01-03 1,882,884
830 Minnesota Public Facilities Authority Water Pollution Control.......... 6.10 03-01-02 889,793
300 St. Paul HRA Minnesota Public Radio, First Bank Letter of Credit....... 6.40 06-01-98 313,581
100 St. Paul HRA Minnesota Public Radio, First Bank Letter of Credit....... 6.60 06-01-99 106,441
2,000 St. Paul Minnesota CDR Fort Rd Med (Asset Guaranty).................... 7.50 09-01-02 2,177,000
7,778,434
HOUSING (7.8%):
580 Burnsville Multifamily Housing Revenue Burnsville Apts Project,
TCF Letter of Credit................................................. 7.00 09-01-99(c) 591,600
2,500 Eden Prairie Multifamily Mortgage Revenue - Tanager Creek.............. 6.90 05-01-21 2,569,875
105 Eden Prairie Multifamily Mortgage Revenue - Windslope Project.......... 5.60 11-01-95 105,224
115 Eden Prairie Multifamily Mortgage Revenue - Windslope Project.......... 5.80 11-01-96 116,018
215 Mankato Rental Housing Revenue Stadium Housing Project, Asset Guaranty
Reinsurance.......................................................... 7.75 10-01-97(c) 219,313
400 Minneapolis Community Development Agency Laurel Village Project
(Capital Guaranty Insured)........................................... 7.50 12-01-99(c) 408,000
980 Minnesota HFA Multifamily Mortgage Revenue Series B.................... 6.90 02-01-04 1,020,170
70 Minnesota HFA Single Family Mortgage Revenue........................... 6.30 01-01-99 72,021
500 Minnesota HFA State Assisted Home Improvement.......................... 6.65 08-01-97 512,175
5,614,396
EDUCATION (4.8%):
515 Minnesota State University Board Revenue Series 1993C (MBIA Insured)... 4.80 06-30-01 515,793
3,000 Regents of University of Minnesota..................................... 4.66 08-15-03 2,917,500
3,433,293
CERTIFICATES OF PARTICIPATION (0.1%):
77 Red Wing Pottery Project............................................... 7.75(k) 12-15-97 76,924
OTHER REVENUE (0.6%):
190 Minneapolis CDA Limited Tax Revenue - Common Bond Fund................. 7.75 06-01-96 194,231
225 Minneapolis CDA Limited Tax Revenue - Common Bond Fund................. 7.90 06-01-97 235,145
429,376
TOTAL MINNESOTA MUNICIPAL BONDS (cost: $67,731,989) $70,337,356
SHORT-TERM SECURITIES (0.1%):
14 Federated Minnesota Municipal Cash Trust (cost: $13,900)............... 3.90(b) $ 13,900
TOTAL INVESTMENT IN SECURITIES (cost: $67,745,889) (f) $70,351,256
</TABLE>
VOYAGEUR MINNESOTA TAX FREE FUND
VOYAGEUR MINNESOTA INSURED FUND
VOYAGEUR MINNESOTA LIMITED TERM TAX FREE FUND
NOTES TO INVESTMENTS IN SECURITIES (UNAUDITED)
(a) Securities are valued by procedures described in note 1 to the financial
statements.
(b) Dividend yields change daily to reflect current market conditions. Rate
shown is the quoted yield as of June 30, 1995.
(c) The maturity dates for these issues represent mandatory puts or dates on
which, in the opinion of the Fund's investment advisor, the issue is likely
to be called.
(d) Investments in bonds, by rating category as a percentage of total bonds,
are as follows:
<TABLE>
<CAPTION>
Non-
Aaa/AAA Aa/AA A/A Baa/BBB rated Total
<S> <C> <C> <C> <C> <C> <C>
Minnesota Tax Free Fund..................... 64% 11% 18% 2% 5% 100%
Minnesota Insured Fund...................... 100% -- -- -- -- 100%
Minnesota Limited Term Tax Free Fund........ 67% 14% 8% 7% 4% 100%
</TABLE>
(e) These securities are subject to the Alternative Minimum Tax.
(f) Also represents the cost of securities for federal income tax purposes and
the aggregate gross unrealized appreciation and depreciation in securities
based on these costs were as follows:
<TABLE>
<CAPTION>
Gross Gross Net
Unrealized Unrealized Unrealized
Appreciation Depreciation Appreciation
<S> <C> <C> <C>
Minnesota Tax Free Fund..................... $13,334,218 $(4,466,660) $8,867,558
Minnesota Insured Tax Free Fund............. 8,158,815 (2,185,543) 5,973,272
Minnesota Limited Term Tax Free Fund........ 2,693,696 (88,329) 2,605,367
</TABLE>
(g) The interest rate disclosed for zero coupon issues represents the effective
yield on the date of acquisition.
(h) Identifies issue covered under portfolio insurance purchased by the Fund.
(i) At June 30, 1995 the principal amount of issue in default amounted to
$1,000,000 for Minnesota Tax Free Fund. However, this issue in default as
to timely receipt of principal are current as to interest including
interest at the stated rate since the maturity dates. This issue is being
valued based on procedures selected in good faith by the Board of
Directors.
(j) Minnesota Tax Free Fund entered into the following restricted security
transactions: on September 2, 1986, the Fund purchased $2,148,650 par of
West St. Paul Commercial Mortgage with a cost basis of $1,891,822, and on
April 20, 1994, the Fund purchased $2,200,000 par of Richfield Commercial
Development Revenue for Richfield Shoppes with a cost basis of $2,200,000.
These private placements represent all of the restricted illiquid
securities owned by the Fund are equal to 0.9% of net assets.
(k) Minnesota Limited Term Tax Free Fund entered into the following restricted
security transactions: on October 2, 1985 the Fund purchased $165,531 par
of Red Wing Pottery Project with a cost basis of $165,531. This private
placement represents all of the restricted illiquid securities owned by the
Fund and is equal to 0.1% of net assets.
INVESTMENT ADVISER, TRANSFER AGENT,
DIVIDEND DISBURSING AGENT AND
ACCOUNTING SERVICES AGENT
Voyageur Fund Managers, Inc.
90 South Seventh Street, Suite 4400
Minneapolis, Minnesota 55402
UNDERWRITER
Voyageur Fund Distributors, Inc.
90 South Seventh Street, Suite 4400
Minneapolis, Minnesota 55402
CUSTODIAN
Norwest Bank Minnesota, N.A.
Sixth Street & Marquette Avenue
Minneapolis, Minnesota 55479
GENERAL COUNSEL
Dorsey & Whitney P.L.L.P.
Minneapolis, Minnesota 55402
AUDITORS
KPMG Peat Marwick LLP
Minneapolis, Minnesota 55402
VOYAGEUR
MINNESOTA TAX FREE FUND
MINNESOTA INSURED FUND
MINNESOTA LIMITED TERM TAX FREE FUND
SEMI-ANNUAL REPORT
Dated June 30, 1995
INVESTMENT ADVISER, TRANSFER AGENT,
DIVIDEND DISBURSING AGENT AND
ACCOUNTING SERVICES AGENT
Voyageur Fund Managers, Inc.
90 South Seventh Street, Suite 4400
Minneapolis, Minnesota 55402
UNDERWRITER
Voyageur Fund Distributors, Inc.
90 South Seventh Street, Suite 4400
Minneapolis, Minnesota 55402
CUSTODIAN
Norwest Bank Minnesota, N.A.
Sixth Street & Marquette Avenue
Minneapolis, Minnesota 55479
GENERAL COUNSEL
Dorsey & Whitney P.L.L.P.
Minneapolis, Minnesota 55402
AUDITORS
KPMG Peat Marwick LLP
Minneapolis, Minnesota 55402
BULK RATE
U.S. Postage
PAID
Minneapolis, MN.
Permit #3322
VOYAGEUR
90 SOUTH SEVENTH STREET, SUITE 4400
MINNEAPOLIS, MINNESOTA 55402.4115
