MINNESOTA TAX FREE FUND
MINNESOTA INSURED FUND
MINNESOTA LIMITED TERM TAX FREE FUND
ANNUAL REPORT
Dated December 31, 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 MINNESOTA Tax Free Fund
Voyageur CALIFORNIA Tax Free Fund Voyageur NATIONAL 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 KANSAS 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.
Voyageur ARIZONA Insured Voyageur MISSOURI Insured
Tax Free Fund Tax Free Fund
Voyageur CALIFORNIA Insured Voyageur NATIONAL Insured
Tax Free Fund Tax Free Fund
Voyageur FLORIDA Voyageur OREGON
Tax Free Fund Tax Free Fund
Voyageur MINNESOTA Insured Fund Voyageur WASHINGTON
Tax Free Fund
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.
Voyageur FLORIDA Limited Term Tax Free Fund Voyageur NATIONAL Limited
Voyageur MINNESOTA Limited Term Tax Free Fund Term Tax Free Fund
VOYAGEUR EQUITY FUNDS seek long term capital appreciation by investing in common
stocks.
Voyageur AGGRESSIVE GROWTH Fund Voyageur GROWTH Stock Fund
Voyageur GROWTH AND INCOME Fund Voyageur INTERNATIONAL Equity 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:
1995 was an excellent year for municipal bond fund investors and I am pleased to
report that your Funds did extremely well.
As you may recall, the previous year, 1994, represented one of the most
difficult years for fixed income investors since the 1920s. Voyageur's
investment strategy, however, emphasizes total return over the long term.
Shareholders who maintained a long term outlook through 1994 are to be
congratulated for their patience. This patience was rewarded in 1995.
Two of the major factors contributing to the resurgence of the municipal bond
market this past year were:
* Progressively lower interest rates throughout the year. (Falling interest
rates directly increases the value of your Fund's portfolio, and hence,
your shares.)
* A narrowing "spread" between yields on higher quality bonds versus lower
quality bonds. (Your Funds benefited from maintaining a large position in
quality bonds.)
In the following pages, Beth Howell, the Funds' portfolio manager, will
elaborate on these and other points of interest regarding the municipal bond
market in 1995 and will also share Voyageur's economic outlook for the next
fiscal year.
Finally, I'd like to apprise you of the amount of
capital appreciation and current income generated by
the Funds on your behalf in 1995.
VOYAGEUR MINNESOTA TAX FREE FUND
<TABLE>
<CAPTION>
TOTAL NET
NET ASSET NET ASSET ASSETS
VALUE VALUE DIVIDENDS END OF
BEGINNING END PAID PER PERIOD
OF PERIOD OF PERIOD SHARE (000'S)
--------- --------- ----- -------
PERIOD
- ------
Period ended December 31, 1995:
<S> <C> <C> <C> <C>
Class A Shares $11.33 $12.63 $0.64 $455,220
Class B Shares 11.90* 12.62 0.44 2,701
Class C Shares 11.33 12.63 0.55 2,319
__________________________________
*Net asset value at March 11, 1995 (commencement of operations)
</TABLE>
<TABLE>
<CAPTION>
VOYAGEUR MINNESOTA INSURED FUND
TOTAL NET
NET ASSET NET ASSET ASSETS
VALUE VALUE DIVIDENDS END OF
BEGINNING END PAID PER PERIOD
OF PERIOD OF PERIOD SHARE (000'S)
--------- --------- ----- -------
PERIOD
- ------
Period ended December 31, 1995:
<S> <C> <C> <C> <C>
Class A Shares $9.61 $10.73 $0.53 $307,734
Class B Shares 10.14* 10.72 0.38 4,655
Class C Shares 9.61 10.73 0.45 3,166
__________________________________
*Net asset value at March 7, 1995 (commencement of operations)
</TABLE>
<TABLE>
<CAPTION>
VOYAGEUR MINNESOTA LIMITED TERM TAX FREE FUND
TOTAL NET
NET ASSET NET ASSET ASSETS
VALUE VALUE DIVIDENDS END OF
BEGINNING END PAID PER PERIOD
OF PERIOD OF PERIOD SHARE (000'S)
--------- --------- ----- -------
PERIOD
- ------
Period ended December 31, 1995:
<S> <C> <C> <C> <C>
Class A Shares $10.50 $11.14 $0.51 $72,405
Class B Shares 10.95* 11.14 0.17 27
Class C Shares 10.50 11.13 0.42 694
__________________________________
*Net asset value at August 15, 1995 (commencement of operations)
</TABLE>
I will be reporting to you again in August, 1996 to review the first half of the
coming year. In the interim, if you have any questions or comments about your
Funds, please call Voyageur's Shareholder Services Department at (800)545- 3863
or your financial advisor.
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
FUND INVESTMENT OBJECTIVES AND STRATEGIES
The primary objective of the Voyageur Minnesota Tax Free Fund is to seek as high
a level of current income free from both federal income taxes and state income
taxes as is consistent with preservation of capital.
The primary objective of the Voyageur Minnesota Insured Fund is to seek as high
a level of current income free from both federal income taxes and state income
taxes as is consistent with preservation of capital, with the added safety of an
insured portfolio. The Voyageur Minnesota Insured Fund adopted a modification of
an investment policy which will permit this Fund to retain insured municipal
bonds in its portfolio the rating of which is not lower than AA by Standard &
Poor's Ratings Service or Aa by Moody's Investor Service so long as such AA or
Aa insured municipal bonds do not exceed 35% of the Fund's total assets. Such
bonds must still have a AAA or Aaa rating at the time of initial investment by
the Fund.
The primary objective of the Voyageur Minnesota Limited Term Tax Free Fund is to
seek to preserve original investment principal while providing income free from
both federal income taxes and state income taxes.
The Minnesota Tax Free Fund generally invests in long-term investment grade
municipal bonds; the Minnesota Insured Fund generally invests in long-term
insured municipal bonds. The Minnesota Limited Term Tax Free Fund generally
invests in intermediate-term investment grade municipal bonds. The distributions
from each Fund are generally exempt from federal income tax and Minnesota state
income tax.
DISCUSSION OF FUNDS PERFORMANCE
by Elizabeth H. Howell
MS. HOWELL IS A SENIOR VICE PRESIDENT AND TAX EXEMPT PORTFOLIO MANAGER FOR
VOYAGEUR FUND MANAGERS.. SHE HAS MANAGED THE VOYAGEUR MINNESOTA TAX FREE FUNDS
SINCE 1991.
We are pleased to report the 1995 performance results of the Voyageur Minnesota
Tax Free Funds for the fiscal year ending December 31, 1995. Of the Voyageur
Minnesota Tax Free Fund, Voyageur Minnesota Insured Fund and Voyageur Minnesota
Limited Term Tax Free Fund, only the Class 'A' and 'C' shares of the Funds have
been in operation for the entire fiscal year.
* The Voyageur Minnesota Tax Free Fund achieved a total return of +17.5% in
1995 for Class 'A' shares (assuming purchase at net asset value and
reinvestment of dividends and capital gains). Class 'C' shares achieved a
+16.6% total return.
* The Voyageur Minnesota Insured Fund achieved a total return of +17.5% in
1995 for Class 'A' shares (assuming purchase at net asset value and
reinvestment of dividends and capital gains). Class 'C' shares achieved a
+16.6% total return.
* The Voyageur Minnesota Limited Term Tax Free Fund achieved a total return
of +11.0% in 1995 for Class 'A' shares (assuming purchase at net asset
value and reinvestment of dividends and capital gains). Class 'C' shares
achieved a +10.2% total return.
For information pertaining to total returns, relative performance, and inception
dates for other share classes, as well as information about the Funds'
performance over additional timeframes and including the effect of sales
charges, please refer to the charts on page 8, 9 and 10.
FACTORS AFFECTING FUND PERFORMANCE IN 1995
As discussed in John Taft's introduction, a general downward trend in prevailing
interest rates had a positive impact on the net asset value of Fund shares in
1995. Both the Voyageur Minnesota Tax Free Fund and the Voyageur Minnesota
Insured Fund had relative performance for the fiscal year that beat the average
return achieved by all Minnesota municipal bond funds according to Lipper
Analytical Services. As a group, these 40 funds achieved an average one year
total return of +15.4%. The Voyageur long-term funds' performance bested this
figure by over 2%. According to Lipper, the Voyageur Minnesota Insured Fund
(Class 'A' shares) was ranked #4 of 40 Minnesota municipal bond funds for one
year total return. The Voyageur Minnesota Tax Free Fund Fund (Class 'A' shares)
was ranked #5 of 40 Minnesota municipal bond funds for one year total return.
Keep in mind, however, that past performance does not guarantee future results.
(Once again, please refer to the charts on pages 8, 9 and 10 for additional
performance information.)
Each of the Funds was able to capture significant capital appreciation through
duration management. Longer duration funds experience wider fluctuations in
market prices than shorter duration funds. For example, early in 1995, the
duration of the Voyageur Minnesota Tax Free Fund peaked at 10.8 years which
allowed for a significant increase in net asset value. After having captured
this market rally, the duration of the Fund was systematically reduced, closing
the year at approximated 7.7 years. As of December 31, 1995, the duration for
the Voyageur Minnesota Insured Fund was 7.2 years, and the duration for the
Voyageur Minnesota Limited Term Tax Free Fund was 4.8 years.
The Funds also benefited from relative changes in value between high quality
bonds and lower quality bonds. As interest rate spreads between these two
classes of municipal bonds narrowed, high quality bonds (which had been
dramatically oversold during the 1994 bear market) gained significant relative
value. The Voyageur Minnesota Insured Fund is comprised exclusively of bonds
rated Aaa and/or AAA by Moody's Investors Service and/or Standard & Poor's
Ratings Service. Sixty-five percent of the Voyageur Minnesota Tax Free Fund's
portfolio was comprised of bonds rated Aaa/AAA; ninety-four percent of the
Fund's portfolio was held in investment grade securities. Seventy percent of the
Voyageur Minnesota Limited Term Tax Free Fund's portfolio was comprised of bonds
rated Aaa/AAA; ninety-six percent of the Fund's portfolio was held in investment
grade securities. As you can see, throughout 1995, asset quality remained high
in all the Voyageur Minnesota Tax Free Funds.
OUTLOOK FOR 1996
Our outlook for the Minnesota municipal bond market remains bullish. However, we
do not anticipate as significant levels of total return in the upcoming year as
was achieved in 1995.
Our 1996 economic outlook calls for:
* CONTINUED LOW RATES OF INFLATION. We expect a Consumer Price Index (CPI)
increase of from 2.5% to 2.8%.
* SLOWING OF ECONOMIC GROWTH. In 1995, U.S. Gross Domestic Product (GDP)
climbed about 3%. Voyageur's 1996 projection for GDP calls for an increase
of about 2.4%.
* STABLE TO SLIGHTLY DECLINING INTEREST RATES. During 1995, the Federal
Reserve Board encouraged lower interest rates by reducing the Federal Funds
Rate by a total of .5%. (Rates were subsequently lowered by an additional
.25% in February 1996.) We expect further reductions of .5% to .75%, which
will likely occur well in advance of the November elections.
In conclusion, Voyageur believes the municipal bond market will have a good year
in 1996. However, we advise against expectations of total return levels achieved
in 1995.
PURSUANT TO RULE 232.304 (a) OF REGULATION S-T THE FOLLOWING IS A TABULAR
REPRESENTATION OF A LINE GRAPH FOR VOYAGEUR MINNESOTA TAX FREE FUND PORTFOLIO
ABSTRACT FOR THE PERIOD ENDED DECEMBER 31, 1995. THE DATA REPRESENTS THE
CUMULATIVE TOTAL RETURN OF A HYPOTHETICAL INVESTMENT IN CLASS A SHARES OF
$10,000 MADE ON THE DATE THE FUND COMMENCED OPERATIONS THROUGH DECEMBER 31,
1995.
ENDING VALUE ENDEING VALUE ENDING VALUE
WITH SALES WITHOUT SALES LEHMAN BROS.
DATE CHARGE CHARGE BOND INDEX
- ---- ------ ------ ----------
Feb-84 9525 10000 10000
Feb-84 9525 10000 9989.82
Mar-84 9553.48 10029.9 9969.84
Apr-84 9616.79 10096.36 10008.72
May-84 9476.93 9949.53 9320.12
Jun-84 9412.26 9881.64 9505.59
Jul-84 9796.9 10285.45 10031.25
Aug-84 9986.7 10484.72 10258.96
Sep-84 10091.55 10594.81 10214.85
Oct-84 10313.69 10828.02 10320.06
Nov-84 10171.81 10679.07 10463.51
Dec-84 10538.3 11063.84 10676.96
Jan-85 10829.89 11369.96 11289.82
Feb-85 10905.1 11448.93 11000.8
Mar-85 10878.18 11420.66 11098.71
Apr-85 11305.18 11868.96 11513.8
May-85 11579.57 12157.03 11970.9
Jun-85 11741.11 12326.62 12120.53
Jul-85 11605.69 12184.45 12096.29
Aug-85 11818.68 12408.06 12030.97
Sep-85 11762.43 12349.01 11934.73
Oct-85 12022.37 12621.91 12333.34
Nov-85 12326.76 12941.48 12782.28
Dec-85 12611.75 13240.68 13008.52
Jan-86 12973.77 13620.75 13831.96
Feb-86 13201.61 13859.96 14458.55
Mar-86 13426.92 14096.51 14407.95
Apr-86 13486.94 14159.52 14386.34
May-86 13414.1 14083.04 14100.05
Jun-86 13425.23 14094.73 14198.75
Jul-86 13557.48 14233.57 14320.86
Aug-86 13834.32 14524.22 15095.62
Sep-86 13949.98 14645.65 15056.37
Oct-86 14196.57 14904.53 15282.21
Nov-86 14346.03 15061.44 15627.59
Dec-86 14521.44 15245.6 15582.27
Jan-87 14719.96 15454.02 16135.44
Feb-87 14845.46 15585.78 16151.58
Mar-87 14864.54 15605.82 15993.29
Apr-87 14350.58 15066.22 15059.28
May-87 14237.02 14947.01 14944.83
Jun-87 14497.55 15220.53 15369.27
Jul-87 14627.82 15357.29 15513.74
Aug-87 14695.85 15428.71 15582
Sep-87 14370.1 15086.72 15052.21
Oct-87 14139.77 14844.9 15065.76
Nov-87 14536.02 15260.91 15455.96
Dec-87 14679.03 15411.05 15686.25
Jan-88 15098.61 15851.56 16373.31
Feb-88 15249.34 16009.8 16591.08
Mar-88 15202.1 15960.21 16292.44
Apr-88 15270.94 16032.48 16432.55
May-88 15305.15 16068.4 16429.26
Jun-88 15582.94 16360.04 16747.99
Jul-88 15620.95 16399.94 16890.35
Aug-88 15714.12 16497.77 16914
Sep-88 15947.91 16743.21 17309.78
Oct-88 16160.22 16966.11 17697.52
Nov-88 16153.67 16959.23 17554.17
Dec-88 16191.81 16999.27 17787.64
Jan-89 16470.93 17292.32 18244.79
Feb-89 16387.66 17204.89 18024.02
Mar-89 16390.22 17207.58 17982.57
Apr-89 16593.16 17420.64 18477.09
May-89 16862.55 17703.46 18916.85
Jun-89 17138.71 17993.39 19160.87
Jul-89 17274.91 18136.39 19427.21
Aug-89 17271.24 18132.54 19221.28
Sep-89 17208.65 18066.83 19079.04
Oct-89 17395.29 18262.77 19374.77
Nov-89 17522.51 18396.33 19729.33
Dec-89 17666.21 18547.2 19871.38
Jan-90 17674.83 18556.25 19708.43
Feb-90 17765.49 18651.43 19903.55
Mar-90 17854.16 18744.53 19945.34
Apr-90 17779.27 18665.9 19753.87
May-90 17957.83 18853.37 20259.57
Jun-90 18121.61 19025.32 20421.64
Jul-90 18299.35 19211.92 20762.68
Aug-90 18177.26 19083.74 20341.2
Sep-90 18251.11 19161.27 20316.79
Oct-90 18403.37 19321.12 20690.62
Nov-90 18696.23 19628.59 21183.06
Dec-90 18907.92 19850.84 21286.86
Jan-91 19012.91 19961.06 21544.43
Feb-91 19199.79 20157.25 21721.09
Mar-91 19289.99 20251.95 21738.47
Apr-91 19396.4 20363.67 22053.68
May-91 19556.95 20532.24 22283.03
Jun-91 19667.86 20648.67 22218.41
Jul-91 19843.87 20833.46 22542.8
Aug-91 20071.6 21072.55 22844.88
Sep-91 20300.42 21312.78 23155.57
Oct-91 20461.86 21482.27 23382.49
Nov-91 20589.37 21616.14 23419.9
Dec-91 20994.86 22041.85 23918.75
Jan-92 21019.78 22068.01 23968.98
Feb-92 21131.71 22185.52 23978.56
Mar-92 21155.6 22210.61 24036.11
Apr-92 21266.32 22326.85 24262.05
May-92 21394.78 22461.71 24579.88
Jun-92 21701.31 22783.53 25032.15
Jul-92 22330.97 23444.58 25928.3
Aug-92 22187.91 23294.39 25604.2
Sep-92 22334.25 23448.04 25732.22
Oct-92 22099.8 23201.89 25366.82
Nov-92 22468.25 23588.71 26011.14
Dec-92 22667.97 23798.4 26351.89
Jan-93 23003.58 24150.74 26633.85
Feb-93 23639.38 24818.25 27763.13
Mar-93 23658.99 24838.84 27521.59
Apr-93 23790.78 24977.19 27868.36
May-93 24018.5 25216.28 28099.67
Jun-93 24323.03 25535.99 28616.7
Jul-93 24285.25 25496.33 28651.04
Aug-93 24782.97 26018.86 29335.8
Sep-93 25168 26423.09 29705.43
Oct-93 25243.54 26502.4 29758.9
Nov-93 25104.75 26356.69 29431.55
Dec-93 25546.66 26820.64 30140.86
Jan-94 25720.18 27002.81 30520.63
Feb-94 25175.14 26430.59 29614.17
Mar-94 24324.4 25537.43 28053.5
Apr-94 24215.51 25423.11 28283.54
May-94 24469.31 25689.56 28617.29
Jun-94 24336.73 25550.37 28331.11
Jul-94 24654.49 25883.98 28979.89
Aug-94 24706.33 25938.41 29061.04
Sep-94 24366.01 25581.11 28479.82
Oct-94 23919.81 25112.66 27727.95
Nov-94 23387.66 24553.97 27079.12
Dec-94 23826.1 25014.27 27929.4
Jan-95 24550.6 25774.9 29021.44
Feb-95 25384.09 26649.96 30074.92
Mar-95 25560.27 26834.93 30417.77
Apr-95 25586.72 26862.7 30411.69
May-95 26407.9 27724.83 31558.21
Jun-95 26111.73 27413.89 31072.21
Jul-95 26204.77 27511.57 31233.79
Aug-95 26429 27746.98 31661.69
Sep-95 26719.72 28052.2 31911.82
Oct-95 27098.26 28449.62 32591.54
Nov-95 27655.28 29034.42 33311.81
Dec-95 27993.04 29389.02 33778.17971
<TABLE>
<CAPTION>
VOYAGEUR MINNESOTA TAX FREE FUND
AVERAGE ANNUAL TOTAL RETURNS
(CLASS A SHARES)
----------------
1 5 10 SINCE
YEAR YEARS YEARS 2/27/84**
Without Sales Charge 17.49% 8.16% 8.30% 9.53%
- -------------------- ------ ----- ----- -----
<S> <C> <C> <C> <C>
With Sales Charge* 11.91% 7.12% 7.77% 9.08%
Lehman Bros. 20 20.94% 9.67% 10.01% 10.83%
Year Municipal
Bond Index
</TABLE>
VOYAGEUR MINNESOTA TAX FREE FUND
TOTAL RETURNS
(CLASS B SHARES)
----------------
SINCE
3/11/95**
---------
Without Contingent
Deferred Sales Charge 9.95%
With Contingent
Deferred Sales Charge*** 5.95%
VOYAGEUR MINNESOTA TAX FREE FUND
AVERAGE ANNUAL TOTAL RETURNS
(CLASS C SHARES)
----------------
SINCE
1 YEAR 5/4/94**
------ --------
16.62% 8.14%
*Average annual total returns include the maximum 4.75% sales charge.
** Commencement of operations.
*** Assumes redemption on December 31, 1995.
PURSUANT TO RULE 232.304 (a) OF REGULATION S-T THE FOLLOWING IS A TABULAR
REPRESENTATION OF A LINE GRAPH FOR VOYAGEUR MINNESOTA INSURED FUND PORTFOLIO
ABSTRACT FOR THE PERIOD ENDED DECEMBER 31, 1995. THE DATA REPRESENTS THE
CUMULATIVE TOTAL RETURN OF A HYPOTHETICAL INVESTMENT IN CLASS A SHARES OF
$10,000 MADE ON THE DATE THE FUND COMMENCED OPERATIONS THROUGH DECEMBER 31,
1995.
ENDING VALUE ENDEING VALUE ENDING VALUE
WITH SALES WITHOUT SALES LEHMAN BROS.
DATE CHARGE CHARGE BOND INDEX
- ---- ------ ------ ----------
May-87 9525 10000 10000
May-87 9441.37 9912.2 9924
Jun-87 9650.35 10131.6 10205.84
Jul-87 9724.65 10209.61 10301.78
Aug-87 9757.41 10244 10347.1
Sep-87 9553.33 10029.75 9995.3
Oct-87 9328.53 9793.73 10004.3
Nov-87 9594.47 10072.93 10263.41
Dec-87 9666.27 10148.31 10416.33
Jan-88 9958.04 10454.64 10872.57
Feb-88 10056.78 10558.3 11017.18
Mar-88 10015.59 10515.06 10818.87
Apr-88 10058.55 10560.15 10911.91
May-88 10086.12 10589.1 10909.73
Jun-88 10252.52 10763.8 11121.37
Jul-88 10282.81 10795.6 11215.91
Aug-88 10345.19 10861.09 11231.61
Sep-88 10530.25 11055.38 11494.43
Oct-88 10664.52 11196.34 11751.9
Nov-88 10669.98 11202.08 11656.71
Dec-88 10700.05 11233.65 11811.75
Jan-89 10863.49 11405.24 12115.31
Feb-89 10839.76 11380.33 11968.71
Mar-89 10823.9 11363.68 11941.19
Apr-89 10992.4 11540.58 12269.57
May-89 11177.42 11734.82 12561.58
Jun-89 11333.95 11899.16 12723.63
Jul-89 11415.69 11984.97 12900.49
Aug-89 11443.23 12013.89 12763.74
Sep-89 11400.21 11968.73 12669.29
Oct-89 11511.37 12085.43 12865.66
Nov-89 11585.85 12163.62 13101.11
Dec-89 11658.94 12240.36 13195.43
Jan-90 11710.95 12294.96 13087.23
Feb-90 11769.2 12356.12 13216.8
Mar-90 11823.95 12413.6 13244.55
Apr-90 11772.08 12359.14 13117.4
May-90 11895.22 12488.42 13453.21
Jun-90 11984.67 12582.33 13560.83
Jul-90 12105.21 12708.88 13787.3
Aug-90 12027.2 12626.98 13507.42
Sep-90 12009.12 12608 13491.21
Oct-90 12100.25 12703.67 13739.45
Nov-90 12328.11 12942.9 14066.45
Dec-90 12432.42 13052.41 14135.37
Jan-91 12481.72 13104.17 14306.41
Feb-91 12604.03 13232.58 14423.72
Mar-91 12649.01 13279.8 14435.26
Apr-91 12720.38 13354.73 14644.57
May-91 12831.44 13471.32 14796.88
Jun-91 12889.85 13532.65 14753.96
Jul-91 13041.06 13691.41 14969.37
Aug-91 13192.9 13850.82 15169.96
Sep-91 13385.74 14053.27 15376.27
Oct-91 13511.49 14185.29 15526.96
Nov-91 13569.44 14246.13 15551.8
Dec-91 13878.83 14570.95 15883.06
Jan-92 13882.55 14574.86 15916.41
Feb-92 13927.77 14622.33 15922.78
Mar-92 13945.11 14640.54 15960.99
Apr-92 14046.42 14746.9 16111.03
May-92 14147.87 14853.41 16322.08
Jun-92 14376.28 15093.2 16622.41
Jul-92 14847.15 15587.56 17217.49
Aug-92 14706.03 15439.41 17002.27
Sep-92 14807.47 15545.9 17087.28
Oct-92 14663.8 15395.07 16844.64
Nov-92 14925.01 15669.3 17272.5
Dec-92 15067.73 15819.14 17498.77
Jan-93 15332.35 16096.96 17686
Feb-93 15789.74 16577.15 18435.89
Mar-93 15729.85 16514.27 18275.5
Apr-93 15832.81 16622.37 18505.77
May-93 16011.87 16810.37 18659.37
Jun-93 16251.26 17061.69 19002.7
Jul-93 16220.56 17029.45 19025.5
Aug-93 16568.13 17394.36 19480.21
Sep-93 16826.23 17665.33 19725.66
Oct-93 16916.84 17760.46 19761.17
Nov-93 16822.61 17661.53 19543.8
Dec-93 17146.89 18001.98 20014.8
Jan-94 17268.06 18129.2 20266.99
Feb-94 16905.61 17748.67 19665.06
Mar-94 16288.71 17101 18628.71
Apr-94 16205.06 17013.18 18781.47
May-94 16326.18 17140.34 19003.09
Jun-94 16224.55 17033.65 18813.06
Jul-94 16507.25 17330.45 19243.87
Aug-94 16437.47 17257.18 19297.76
Sep-94 16205.35 17013.49 18911.8
Oct-94 15841.87 16631.88 18412.53
Nov-94 15443.81 16213.98 17981.68
Dec-94 15795.93 16583.65 18546.3
Jan-95 16347.56 17162.8 19271.46
Feb-95 16951.4 17796.75 19971.02
Mar-95 17074.57 17926.06 20198.69
Apr-95 17114.47 17967.94 20194.65
May-95 17590.75 18467.98 20955.98
Jun-95 17446.01 18316.02 20633.26
Jul-95 17520.94 18394.68 20740.56
Aug-95 17545.33 18420.3 21024.7
Sep-95 17825.3 18714.22 21190.8
Oct-95 18055.09 18955.48 21642.16
Nov-95 18369.41 19285.47 22120.45
Dec-95 18563.9 19489.66 22430.14
VOYAGEUR MINNESOTA INSURED FUND
AVERAGE ANNUAL TOTAL RETURNS
(CLASS A SHARES)
----------------
1 5 SINCE
YEAR YEARS 5/1/87**
---- ----- --------
Without Sales Charge 17.52% 8.34% 8.00%
With Sales Charge* 11.94% 7.29% 7.39%
Lehman Bros. 20 20.94% 9.67% 9.77%
Year Municipal
Bond Index
VOYAGEUR MINNESOTA INSURED FUND
TOTAL RETURNS
(CLASS B SHARES)
----------------
SINCE
3/7/95**
--------
Without Contingent
Deferred Sales Charge 9.59%
With Contingent
Deferred Sales Charge*** 5.59%
VOYAGEUR MINNESOTA INSURED FUND
AVERAGE ANNUAL TOTAL RETURNS
(CLASS C SHARES)
----------------
SINCE
1 YEAR 5/4/94**
------ --------
16.63% 7.61%
*Average annual total reutrns include the maximum 4.75% sales charge
** Commencement of operations.
*** Assumes redemption on December 31, 1995
PURSUANT TO RULE 232.304 (a) OF REGULATION S-T THE FOLLOWING IS A TABULAR
REPRESENTATION OF A LINE GRAPH FOR VOYAGEUR MINNESOTA LIMITED TERM TAX FREE FUND
PORTFOLIO ABSTRACT FOR THE PERIOD ENDED DECEMBER 31, 1995. THE DATA REPRESENTS
THE CUMULATIVE TOTAL RETURN OF A HYPOTHETICAL INVESTMENT IN CLASS A SHARES OF
$10,000 MADE ON THE DATE THE FUND COMMENCED OPERATIONS THROUGH DECEMBER 31,
1995.
ENDING VALUE ENDEING VALUE ENDING VALUE
WITH SALES WITHOUT SALES LEHMAN BROS.
DATE CHARGE CHARGE BOND INDEX
- ---- ------ ------ ----------
Oct-85 9725 10000 10000
Oct-85 9728.99 10004.1 10020.93
Nov-85 9991.77 10274.31 10128.26
Dec-85 10040.11 10324.02 10015.53
Jan-86 10130.8 10417.28 10407.34
Feb-86 10222.21 10511.27 10523.69
Mar-86 10317.56 10609.32 10656.4
Apr-86 10371.1 10664.37 10717.24
May-86 10427.03 10721.88 10715.42
Jun-86 10459.7 10755.47 10814.11
Jul-86 10521.09 10818.61 10795.08
Aug-86 10646.73 10947.8 10907.99
Sep-86 10703.92 11006.6 10969.52
Oct-86 10786.73 11091.75 11120.57
Nov-86 10851.9 11158.77 11187.18
Dec-86 10901.43 11209.69 11176.1
Jan-87 10999.62 11310.66 11320.95
Feb-87 11053.2 11365.76 11380.27
Mar-87 11079.04 11392.33 11390.05
Apr-87 10906.6 11215.02 11209.86
May-87 10914.48 11223.11 11225.56
Jun-87 10994.97 11305.88 11446.14
Jul-87 11080.44 11393.77 11495.7
Aug-87 11149.38 11464.66 11491.33
Sep-87 11068.99 11381.99 11324.59
Oct-87 11048.42 11360.84 11473.06
Nov-87 11173.78 11489.74 11529.74
Dec-87 11226.07 11543.52 11621.51
Jan-88 11331.16 11651.58 11840
Feb-88 11399.13 11721.47 11918.85
Mar-88 11464.25 11788.43 11918.26
Apr-88 11520.17 11845.93 12006.93
May-88 11534.99 11861.17 11930.08
Jun-88 11606.82 11935.03 11992.12
Jul-88 11645.21 11974.5 12030.37
Aug-88 11672.04 12002.1 11970.58
Sep-88 11723.78 12055.3 12081.67
Oct-88 11817.85 12152.03 12152.59
Nov-88 11846.07 12181.04 12141.17
Dec-88 11865.85 12201.39 12157.31
Jan-89 11918.73 12255.76 12291.17
Feb-89 11921.18 12258.28 12221.6
Mar-89 11909.81 12246.59 12166.6
Apr-89 11985.44 12324.36 12327.69
May-89 12116.65 12459.28 12495.34
Jun-89 12225.81 12571.52 12637.17
Jul-89 12305.88 12653.86 12783.5
Aug-89 12368.79 12718.55 12769.06
Sep-89 12408.73 12759.62 12804.3
Oct-89 12493.76 12847.05 12906.61
Nov-89 12553.73 12908.72 13025.61
Dec-89 12628.32 12985.42 13099.33
Jan-90 12682.97 13041.61 13137.06
Feb-90 12740.01 13100.27 13215.75
Mar-90 12804.64 13166.73 13212.44
Apr-90 12798.89 13160.82 13219.18
May-90 12886.3 13250.69 13385.88
Jun-90 12976.76 13343.71 13489.89
Jul-90 13077.63 13447.44 13604.82
Aug-90 13111.04 13481.78 13610.8
Sep-90 13168.48 13540.85 13655.86
Oct-90 13245.44 13619.99 13791.6
Nov-90 13359.36 13737.14 13949.65
Dec-90 13460.64 13841.28 14023.72
Jan-91 13520.38 13902.7 14204.77
Feb-91 13646.07 14031.95 14321.81
Mar-91 13706.31 14093.89 14335.71
Apr-91 13781.86 14171.58 14469.46
May-91 13871.83 14264.1 14545.71
Jun-91 13934.13 14328.15 14560.84
Jul-91 14037.15 14434.09 14674.27
Aug-91 14167.58 14568.21 14813.23
Sep-91 14285.47 14689.43 14941.66
Oct-91 14361.86 14767.98 15037.14
Nov-91 14463.69 14872.69 15124.81
Dec-91 14703.79 15119.62 15415.36
Jan-92 14738.47 15155.28 15491.97
Feb-92 14821.19 15240.35 15489.18
Mar-92 14771.08 15188.82 15471.52
Apr-92 14845.04 15264.86 15585.39
May-92 14945.93 15368.6 15710.55
Jun-92 15075.56 15501.91 15884.78
Jul-92 15305.64 15738.49 16199.29
Aug-92 15366.62 15801.2 16113.92
Sep-92 15471.08 15908.62 16235.91
Oct-92 15476.93 15914.63 16214.64
Nov-92 15594.93 16035.97 16350.84
Dec-92 15677.03 16120.39 16453.85
Jan-93 15836.48 16284.35 16575.61
Feb-93 16084.27 16539.14 16834.19
Mar-93 16083.36 16538.21 16780.32
Apr-93 16199.42 16657.55 16872.61
May-93 16226.95 16685.86 16924.92
Jun-93 16328.21 16789.99 17024.77
Jul-93 16310.57 16771.85 17021.37
Aug-93 16515.39 16982.5 17176.26
Sep-93 16632.74 17103.17 17246.68
Oct-93 16660.77 17129.88 17281.18
Nov-93 16630.11 17098.35 17267.35
Dec-93 16913.76 17389.99 17452.11
Jan-94 17031.37 17510.9 17600.46
Feb-94 16753.77 17225.49 17420.93
Mar-94 16428.55 16891.11 17213.62
Apr-94 16499.57 16964.13 17339.28
May-94 16587.1 17054.13 17420.78
Jun-94 16581.78 17048.66 17413.81
Jul-94 16731.9 17203.01 17554.86
Aug-94 16788.85 17261.55 17619.81
Sep-94 16690.1 17160.03 17577.53
Oct-94 16592.56 17059.74 17547.64
Nov-94 16434.37 16897.1 17547.64
Dec-94 16590.33 17057.44 17586.25
Jan-95 16762.82 17234.79 17702.32
Feb-95 17062.88 17543.3 17874.03
Mar-95 17205.82 17690.27 18077.79
Apr-95 17303.46 17790.66 18137.45
May-95 17660.23 18157.47 18424.02
Jun-95 17713.42 18212.16 18468.24
Jul-95 17831.7 18333.77 18682.47
Aug-95 17968 18473.91 18820.72
Sep-95 18072.29 18581.14 18860.25
Oct-95 18177.09 18688.89 18931.92
Nov-95 18345.74 18862.28 19051.19
Dec-95 18416.02 18934.54 19138.82
VOYAGEUR MINNESOTA LIMITED TERM TAX FREE FUND
AVERAGE ANNUAL TOTAL RETURNS
(CLASS A SHARES)
----------------
<TABLE>
<CAPTION>
1 5 SINCE
YEAR YEARS 10 YEARS 10/27/85**
---- ----- -------- ----------
<S> <C> <C> <C> <C>
Without Sales Charge 11.00% 6.47% 6.25% 6.47%
With Sales Charge* 7.95% 5.88% 5.96% 6.18%
Lehman Bros. 3 Year 8.83% 6.42% 6.69% 6.58%
Municipal Gov't.
Obligation Index
</TABLE>
VOYAGEUR MINNESOTA LIMITED TERM TAX FREE FUND
TOTAL RETURNS
(CLASS B SHARES)
----------------
SINCE
8/15/95**
---------
Without Contingent
Deferred Sales Charge 3.26%
With Contingent
Deferred Sales Charge*** 0.26%
VOYAGEUR MINNESOTA LIMITED TERM TAX FREE FUND
AVERAGE ANNUAL TOTAL RETURNS
(CLASS C SHARES)
----------------
SINCE
1 YEAR 5/4/94**
------ --------
10.18% 5.99%
* Average annual total returns include th emaximum 2.75% sales charge.
** Commencement of operations.
*** Assumes redemption on December 31, 1995.
INDEPENDENT AUDITORS' REPORT
The Board of Directors and Shareholders
Voyageur Tax Free Funds, Inc.
Voyageur Insured Funds, Inc.
Voyageur Intermediate Tax Free Funds, Inc.:
We have audited the accompanying statements of assets and liabilities,
including the schedules of investments in securities, of Voyageur Minnesota Tax
Free Fund (a Fund within Voyageur Tax Free Funds, Inc.), Voyageur Minnesota
Insured Fund (a Fund within Voyageur Insured Funds, Inc.), and Voyageur
Minnesota Limited Term Tax Free Fund (a fund within Voyageur Intermediate Tax
Free Funds, Inc.) as of December 31, 1995, and the related statements of
operations for the year then ended, the statements of changes in net assets for
each of the years in the two-year period ended December 31, 1995 and the
financial highlights for each of the years in the five-year period ended
December 31, 1995. These financial statements and the financial highlights are
the responsibility of Fund management. Our responsibility is to express an
opinion on these financial statements and the financial highlights based on our
audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. Investment securities
held in custody are confirmed to us by the custodian. As to securities purchased
and sold but not received or delivered, we request confirmations from brokers,
and where replies are not received, we carry out other appropriate auditing
procedures. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly,
in all material respects, the financial position of Voyageur Minnesota Tax Free
Fund, Voyageur Minnesota Insured Fund, and Voyageur Minnesota Limited Term Tax
Free Fund at December 31, 1995 and the results of their operations, changes in
their net assets and the financial highlights for each of the years in the
five-year period ended December 31, 1995, in conformity with generally accepted
accounting principles.
KPMG Peat Marwick LLP
Minneapolis, Minnesota
February 9, 1996
<TABLE>
<CAPTION>
THE VOYAGEUR FUNDS
STATEMENTS OF ASSETS AND LIABILITIES DECEMBER 31, 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, $427,000,049, $292,042,654 and
$70,300,352, respectively)............................... $456,280,925 $310,524,272 $73,800,306
Cash in bank on demand deposit................................ 730 672 262
Accrued interest receivable................................... 8,990,159 6,428,831 1,577,491
Receivable for investment securities sold..................... -- -- 30,935
Receivable for Fund shares sold............................... 320,442 63,595 438
------------ ------------ -----------
Total assets............................................... 465,592,256 317,017,370 75,409,432
------------ ------------ -----------
LIABILITIES
Dividends payable to shareholders............................ 1,923,417 1,257,376 278,938
Payable for investment securities purchased................... 2,913,535 -- 1,939,779
Payable for Fund shares redeemed.............................. 172,393 561 --
Distribution fees payable..................................... 238,585 165,225 24,205
Other accrued expenses........................................ 105,182 39,137 40,300
------------ ------------ -----------
Total liabilities.......................................... 5,353,112 1,462,299 2,283,222
------------ ------------ -----------
NET ASSETS APPLICABLE TO OUTSTANDING CAPITAL STOCK............ $460,239,144 $315,555,071 $73,126,210
============ ============ ===========
Represented by:
Capital Stock - $.01 par value (note 1).................... $ 364,520 $ 293,991 $ 65,670
Additional paid-in capital................................. 433,543,255 304,444,768 70,407,946
Undistributed net investment income........................ 71,163 4,200 47
Accumulated net realized loss on investments............... (3,020,670) (7,669,506) (847,407)
Unrealized appreciation of investments..................... 29,280,876 18,481,618 3,499,954
------------ ------------ -----------
TOTAL NET ASSETS......................................... $460,239,144 $315,555,071 $73,126,210
============ ============ ===========
Net assets applicable to outstanding Class A shares........... $455,219,758 $307,734,067 $72,404,842
============ ============ ===========
Net assets applicable to outstanding Class B shares........... 2,700,598 $ 4,654,955 $ 27,222
============ ============== ==============
Net assets applicable to outstanding Class C shares........... $ 2,318,788 $ 3,166,049 $ 694,146
============ ============== ==============
SHARES OUTSTANDING AND NET ASSET VALUE PER SHARE
Class A - Shares of Capital Stock outstanding: 36,054,473,
28,669,968 and 6,502,237, respectively (note 4).......... $12.63 $10.73 $11.14
====== ====== ======
Class B - Shares of Capital Stock outstanding: 213,915,
434,121 and 2,444, respectively (note 4)................. $12.62 $10.72 $11.14
====== ====== ======
Class C - Shares of Capital Stock outstanding: 183,600,
294,967 and 62,344, respectively (note 4)................ $12.63 $10.73 $11.13
====== ====== ======
See accompanying notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
THE VOYAGEUR FUNDS
STATEMENTS OF OPERATIONS YEAR ENDED DECEMBER 31, 1995
- -------------------------------------------------------------------------------------------------------------------
VOYAGEUR VOYAGEUR VOYAGEUR
MINNESOTA MINNESOTA MINNESOTA
TAX FREE INSURED LIMITED TERM
FUND FUND TAX FREE FUND
----------- ----------- ------------
Investment income:
<S> <C> <C> <C>
Interest................................................... $26,935,684 $17,846,658 $4,110,583
----------- ----------- ----------
Expenses (note 3):
Investment advisory and management fee..................... 2,229,862 1,541,687 298,529
Dividend-disbursing, administrative and accounting services
fees..................................................... 499,083 329,546 114,999
Printing, postage and supplies............................. 100,410 52,524 18,025
Audit and accounting fees.................................. 30,871 20,637 20,581
Legal fees................................................. 11,223 5,227 2,759
Distribution fees - Class A................................ 1,108,235 759,866 185,286
Distribution fees - Class B................................ 8,871 19,425 83
Distribution fees - Class C................................ 17,906 25,345 5,099
Directors' fees............................................ 23,570 15,194 3,989
Registration fees.......................................... 8,998 2,018 7,207
Custodian fees............................................. 66,020 57,262 14,683
Other ..................................................... 49,990 33,626 8,888
----------- ----------- ----------
Total expenses........................................... 4,155,039 2,862,357 680,128
Less: Expenses waived or absorbed by the distributor...... (2,274) (157,082) (21)
----------- ----------- ----------
Net expenses before earnings credits on uninvested cash.... 4,152,765 2,705,275 680,107
Less: Earnings credits on uninvested cash................. -- (8,505) (7,226)
----------- ----------- ----------
Total net expenses ...................................... 4,152,765 2,696,770 672,881
----------- ----------- ----------
Investment income - net.................................. 22,782,919 15,149,888 3,437,702
----------- ----------- ----------
Realized and unrealized gain (loss) on investments:
Realized loss on security transactions (note 2)............ (2,635,025) (7,669,506) (74,374)
Net change in unrealized appreciation or depreciation
of investments.......................................... 50,741,624 41,831,089 4,553,348
----------- ----------- ----------
Net gain on investments................................ 48,106,599 34,161,583 4,478,974
----------- ----------- ----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS.......... $70,889,518 $49,311,471 $7,916,676
=========== =========== ==========
See accompanying notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
THE VOYAGEUR FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
- -------------------------------------------------------------------------------------------------------------------
VOYAGEUR MINNESOTA
TAX FREE FUND
-------------------------------
YEAR YEAR
ENDED ENDED
DECEMBER 31, DECEMBER 31,
Operations: 1995 1994
------------ ------------
<S> <C> <C>
Investment income - net...................................................... $ 22,782,919 $ 23,704,596
Realized gain (loss) on investments - net.................................... (2,635,025) 1,273,350
Net change in unrealized appreciation or depreciation of investments......... 50,741,624 (57,094,347)
------------ ------------
Net increase (decrease) in net assets resulting from operations........... 70,889,518 (32,116,401)
------------ ------------
Distributions to shareholders from:
Investment income - net:
Class A.................................................................... (23,374,008) (22,948,453)
Class B.................................................................... (37,979) N/A
Class C.................................................................... (79,332) (16,674)
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...................................................... (23,491,319) (25,122,429)
------------ ------------
Capital share transactions (note 4):
Proceeds from sale of shares:
Class A (note 3)........................................................... 44,321,375 64,943,542
Class B.................................................................... 2,627,889 N/A
Class C.................................................................... 1,563,516 1,185,075
Net asset value of shares issued in reinvestment of
net investment income and realized gain
distributions:
Class A.................................................................. 15,300,068 20,135,429
Class B.................................................................. 26,876 N/A
Class C.................................................................. 54,270 8,589
Payments for redemption of shares:
Class A.................................................................... (58,049,869) (79,535,301)
Class B (note 3)........................................................... (26,205) N/A
Class C (note 3)........................................................... (534,040) (86,392)
------------ ------------
Increase (decrease) in net assets from capital share transactions............ 5,283,880 6,650,942
------------ ------------
Total increase (decrease) in net assets.................................... 52,682,079 (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
of $71,163 and $779,563; $4,200 and $684,791; and $47 and $29,883; respectively) $460,239,144 $407,557,065
============ ============
See accompanying notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
THE VOYAGEUR FUNDS
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
- -----------------------------------------------------------------------------------------------------------------------------
VOYAGEUR MINNESOTA
INSURED FUND
-----------------------------------------
YEAR YEAR
ENDED ENDED
DECEMBER 31, DECEMBER 31,
1995 1994
-------------- --------------
<S> <C> <C>
Investment income - net...................................................... $ 15,149,888 $ 16,515,252
Realized gain (loss) on investments - net.................................... (7,669,506) 1,246,807
Net change in unrealized appreciation or depreciation of investments......... 41,831,089 (43,905,801)
-------------- --------------
Net increase (decrease) in net assets resulting from operations........... 49,311,471 (26,143,742)
-------------- --------------
Distributions to shareholders from:
Investment income - net:
Class A.................................................................... (15,642,473) (15,803,903)
Class B.................................................................... (79,826) N/A
Class C.................................................................... (108,180) (26,558)
Net realized gain on investments:
Class A.................................................................... -- (1,244,392)
Class C.................................................................... -- (2,415)
Excess distributions of net realized gains:
Class A.................................................................... -- --
Class C.................................................................... -- --
-------------- --------------
Total distributions...................................................... (15,830,479) (17,077,268)
-------------- --------------
Capital share transactions (note 4):
Proceeds from sale of shares:
Class A (note 3)........................................................... 29,732,432 65,030,846
Class B.................................................................... 4,508,245 N/A
Class C.................................................................... 1,728,614 1,825,218
Net asset value of shares issued in reinvestment of
net investment income and realized gain distributions
Class A.................................................................. 11,225,363 11,637,921
Class B.................................................................. 59,610 N/A
Class C.................................................................. 89,137 19,210
Payments for redemption of shares:
Class A.................................................................... (50,442,997) (60,585,547)
Class B (note 3)........................................................... (57,331) N/A
Class C (note 3)........................................................... (425,889) (237,069)
-------------- --------------
Increase (decrease) in net assets from capital share transactions............ (3,582,816) 17,690,579
-------------- --------------
Total increase (decrease) in net assets.................................... 29,898,176 (25,530,431)
Net assets at beginning of period............................................... 285,656,895 311,187,326
-------------- --------------
Net assets at end of period (including undistributed net investment income
of $71,163 and $779,563; $4,200 and $684,791; and $47 and $29,883; respectively $ 315,555,071 $ 285,656,895
============== =============
See accompanying notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
THE VOYAGEUR FUNDS
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
- -----------------------------------------------------------------------------------------------------------------------------
VOYAGEUR MINNESOTA
LIMITED TERM TAX FREE FUND
-------------------------------------
YEAR YEAR
ENDED ENDED
DECEMBER 31, DECEMBER 31,
1995 1994
----------- ------------
Operations:
<S> <C> <C>
Investment income - net...................................................... $ 3,437,702 $ 3,383,098
Realized gain (loss) on investments - net.................................... (74,374) (773,033)
Net change in unrealized appreciation or depreciation of investments......... 4,553,348 (4,107,788)
----------- ------------
Net increase (decrease) in net assets resulting from operations........... 7,916,676 (1,497,723)
----------- ------------
Distributions to shareholders from:
Investment income - net:
Class A.................................................................... (3,447,763) (3,348,667)
Class B.................................................................... (311) N/A
Class C.................................................................... (19,464) (4,548)
Net realized gain on investments:
Class A.................................................................... -- (16,366)
Class C.................................................................... -- --
Excess distributions of net realized gains:
Class A.................................................................... -- --
Class C.................................................................... -- --
----------- ------------
Total distributions...................................................... (3,467,538) (3,369,581)
----------- ------------
Capital share transactions (note 4):
Proceeds from sale of shares:
Class A (note 3)........................................................... 9,137,036 36,910,400
Class B.................................................................... 27,011 N/A
Class C.................................................................... 567,207 381,811
Net asset value of shares issued in reinvestment of
net investment income and realized gain distributions:
distributions:
Class A.................................................................. 2,503,920 2,469,787
Class B.................................................................. 72 N/A
Class C.................................................................. 16,872 2,923
Payments for redemption of shares:
Class A.................................................................... (27,826,010) (25,726,471)
Class B (note 3)........................................................... (11) N/A
Class C (note 3)........................................................... (257,614) (36,878)
----------- ------------
Increase (decrease) in net assets from capital share transactions............ (15,831,517) 14,001,572
----------- ------------
Total increase (decrease) in net assets.................................... (11,382,379) 9,134,268
Net assets at beginning of period............................................... 84,508,589 75,374,321
----------- ------------
Net assets at end of period (including undistributed net investment income
of $71,163 and $779,563; $4,200 and $684,791; and $47 and $29,883; respectively) $73,126,210 $84,508,589
=========== ===========
See accompanying notes to financial statements.
</TABLE>
THE VOYAGEUR FUNDS
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
(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 Minnesota Tax Free Fund seeks high current income free
from both federal and state income taxes by investing in investment grade
municipal bonds. Minnesota Insured Fund seeks high current income free from both
federal and state income taxes with the added safety of an insured portfolio by
investing in insured municipal bonds. Minnesota Limited Term Tax Free Fund seeks
to preserve original investment principal while providing income free from both
federal and state income taxes by investing in intermediate term investment
grade municipal bonds. 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 in 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.
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.
The significant accounting policies followed by the Funds are summarized 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
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, 1995, Minnesota Tax Free Fund had a capital loss carryover of
$3,020,670 that will expire in 2003, Minnesota Insured Fund had a capital loss
carryover of $7,226,007 that will expire in 2003 and 2004 and Minnesota Limited
Term Tax Free Fund had a capital loss carryover of $847,407 that will expire in
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 $224,289,997 and $220,556,887 for Minnesota Tax Free Fund;
$159,996,884 and $168,133,753 for Minnesota Insured Fund; and $28,827,718 and
$43,044,087 for Minnesota Limited Term Tax Free Fund, respectively, during the
year ended December 31, 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 $826 for the year ended
December 31, 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. During the period ended December 31, 1995, excluding waiver
of distribution fees, Fund Distributors voluntarily absorbed expenses totaling
$25,000 for Minnesota Insured Fund.
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 year ended
December 31, 1995, Fund Distributors voluntarily waived Class A distribution
fees of $126,114 for Minnesota Insured Fund; Class B distribution fees of $2,274
for Minnesota Tax Free Fund, $5,515 for Minnesota Insured Fund and $21 for
Minnesota Limited Term Tax Free Fund; and Class C distribution fees of $453 for
Minnesota Insured Fund. Minnesota Insured Fund and Minnesota Limited Term Tax
Free Fund earned $8,505 and $7,226, respectively, in credits on uninvested cash
balances held at the custodian during the year ended December 31, 1995 which
were used to reduce certain fees for various custodial, pricing and accounting
services provided by the custodian bank.
Sales charges paid by Class A shareholders were $810,820 for Minnesota Tax
Free Fund, $658,216 for Minnesota Insured Fund, and $46,751 for Minnesota
Limited Term Tax Free Fund. Of these amounts, Fund Distributors received
$112,524 for Minnesota Tax Free Fund, $85,971 for Minnesota Insured Fund and
$8,052 for Minnesota Limited Term Tax Free Fund. Contingent deferred sales
charges paid by Class B shareholders were $887 for Minnesota Tax Free Fund.
Contingent deferred sales charges paid by Class C shareholders were $980 for
Minnesota Tax Free Fund, $739 for Minnesota Insured Fund and $347 for Minnesota
Limited Term Tax Free Fund.
(4) SHARE TRANSACTIONS
Transactions in shares of capital stock during the periods ended December 31,
1995 and 1994 were as follows:
<TABLE>
<CAPTION>
MINNESOTA TAX FREE FUND
-----------------------------------------------------------------------------
CLASS A CLASS B CLASS C
-------------------------- --------------- ----------------------------
YEAR YEAR PERIOD FROM YEAR PERIOD FROM
ENDED ENDED MARCH 11, 1995* ENDED MAY 4, 1994*
DECEMBER 31, DECEMBER 31, TO DECEMBER 31, DECEMBER 31, TO DECEMBER 31,
1995 1994 1995 1995 1994
----------- ----------- ---------- --------- ---------
<S> <C> <C> <C> <C> <C>
Shares sold..................... 3,694,812 5,363,728 213,827 129,328 100,287
Shares issued for
reinvested distributions..... 1,273,503 1,650,611 2,195 4,487 743
Shares redeemed................. (4,792,882) (6,775,465) (2,107) (43,826) (7,419)
----------- ----------- ---------- --------- ---------
Increase in shares outstanding.. 175,433 238,874 213,915 89,989 93,611
=========== =========== ========== ========= =========
</TABLE>
<TABLE>
<CAPTION>
MINNESOTA INSURED FUND
-----------------------------------------------------------------------------
CLASS A CLASS B CLASS C
-------------------------- --------------- ----------------------------
YEAR YEAR PERIOD FROM YEAR PERIOD FROM
ENDED ENDED MARCH 7, 1995* ENDED MAY 4, 1994*
DECEMBER 31, DECEMBER 31, TO DECEMBER 31, DECEMBER 31, TO DECEMBER 31,
1995 1994 1995 1995 1994
----------- ----------- ---------- --------- ---------
<S> <C> <C> <C> <C> <C>
Shares sold..................... 2,902,567 6,279,044 433,849 168,194 181,323
Shares issued for
reinvested distributions..... 1,094,655 1,127,749 5,709 8,646 1,946
Shares redeemed................. (4,895,900) (6,080,410) (5,437) (40,592) (24,550)
----------- ----------- ---------- --------- ---------
Increase (decrease) in
shares outstanding........... (898,678) 1,326,383 434,121 136,248 158,719
========== =========== ========== ========= =========
</TABLE>
<TABLE>
<CAPTION>
MINNESOTA LIMITED TERM TAX FREE FUND
------------------------------------------------------------------------------
CLASS A CLASS B CLASS C
-------------------------- --------------- ----------------------------
YEAR YEAR PERIOD FROM YEAR PERIOD FROM
ENDED ENDED AUGUST 15, 1995* ENDED MAY 4, 1994*
DECEMBER 31, DECEMBER 31, TO DECEMBER 31, DECEMBER 31, TO DECEMBER 31,
1995 1994 1995 1995 1994
----------- ----------- ---------- --------- ---------
<S> <C> <C> <C> <C> <C>
Shares sold..................... 834,844 3,440,102 2,438 51,965 35,658
Shares issued for
reinvested distributions..... 230,452 228,313 7 1,545 276
Shares redeemed................. (2,579,455) (2,408,785) (1) (23,639) (3,461)
----------- ------------ ---------- --------- ---------
Increase (decrease) in
shares outstanding.......... (1,514,159) 1,259,630 2,444 29,871 32,473
========== ============ ========== ========= =========
* Commencement of operations.
</TABLE>
THE VOYAGEUR FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
(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
----------------------------------------------------------
YEAR ENDED DECEMBER 31,
----------------------------------------------------------
1995 1994 1993 1992 1991
------ ------ ------ ------ ------
Net asset value:
<S> <C> <C> <C> <C> <C>
Beginning of period...................... $11.33 $12.85 $12.21 $12.07 $11.67
------ ------ ------ ------ ------
Operations:
Net investment income.................... .62 .63 .64 .70 .75
Net realized and unrealized
gain (loss) on investments............. 1.32 (1.48) .87 .23 .49
------ ------ ------ ------ ------
Total from operations................ 1.94 (.85) 1.51 .93 1.24
------ ------ ------ ------ ------
Distributions to shareholders:
From net investment income (a)........... (.64) (.61) (.64) (.70) (.75)
From net realized gains.................. -- (.05) (.23) (.09) (.09)
In excess of net realized gains.......... -- (.01) -- -- --
------ ------ ------ ------ ------
Total distributions.................... (.64) (.67) (.87) (.79) (.84)
------- ------- ------- ------- -------
Net asset value:
End of period............................ $12.63 $11.33 $12.85 $12.21 $12.07
====== ====== ====== ====== ======
Total investment return (b)................. 17.49% (6.73)% 12.70% 7.97% 11.04%
Net assets at end of
period (000's omitted)................... $455,220 $406,497 $458,145 $331,314 $251,594
Ratios:
Ratio of expenses to
average daily net assets (f)........... .93% .90% 1.02% .96% .83%
Ratio of net investment income
to average daily net assets............ 5.11% 5.29% 5.02% 5.73% 6.44%
Assuming no voluntary waivers
and reimbursements:
Expenses (c)..................... .93% .90% 1.02% 1.04% .98%
Net investment income............ 5.11% 5.29% 5.02% 5.65% 6.29%
Portfolio turnover rate (excluding
short-term securities)................. 50.84% 24.26% 31.77% 23.60% 26.40%
See accompanying notes to Financial Highlights.
</TABLE>
<TABLE>
<CAPTION>
(5) FINANCIAL HIGHLIGHTS (CONTINUED)
MINNESOTA TAX FREE FUND
------------------------------------------------------
CLASS B CLASS C
----------------- ------------------------------
PERIOD FROM YEAR PERIOD FROM
MARCH 11, 1995(d) ENDED MAY 4, 1994(d)
TO DECEMBER 31, DECEMBER 31, DECEMBER 31,
1995 1995 1994
----------------- ------------ --------------
Net asset value:
<S> <C> <C> <C>
Beginning of period........................... $11.90 $11.33 $11.96
------ ------ ------
Operations:
Net investment income......................... .45 .53 .34
Net realized and unrealized
gain (loss) on investments.................. .71 1.32 (.61)
------ ------ ------
Total from operations..................... 1.16 1.85 (.27)
------ ------ ------
Distributions to shareholders:
From net investment income (a)................ (.44) (.55) (.32)
From net realized gains....................... -- -- (.04)
------ ------ ------
Total distributions......................... (.44) (.55) (.36)
------ ------ ------
Net asset value:
End of period................................. $12.62 $12.63 $11.33
====== ====== ======
Total investment return (b)...................... 9.95% 16.62% (2.30)%
Net assets at end of
period (000's omitted)........................ $2,701 $2,319 $1,061
Ratios:
Ratio of expenses to
average daily net assets (f)................ 1.38%(e) 1.67% 1.72%(e)
Ratio of net investment income
to average daily net assets................. 4.43%(e) 4.33% 4.56%(e)
Assuming no voluntary waivers
and reimbursements:
Expenses (c).......................... 1.63%(e) 1.67% 1.72%(e)
Net investment income................. 4.18%(e) 4.33% 4.56%(e)
Portfolio turnover rate (excluding
short-term securities)...................... 50.84% 50.84% 24.26%
See accompanying notes to Financial Highlights.
</TABLE>
(5) FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
MINNESOTA INSURED FUND
----------------------------------------------------------
CLASS A
----------------------------------------------------------
YEAR ENDED DECEMBER 31,
----------------------------------------------------------
1995 1994 1993 1992 1991
------ ------ ------ ------ ------
Net asset value:
<S> <C> <C> <C> <C> <C>
Beginning of period...................... $ 9.61 $11.02 $10.27 $10.07 $ 9.65
------ ------ ------ ------ ------
Operations:
Net investment income.................... .51 .54 .54 .59 .60
Net realized and unrealized
gain (loss) on investments............. 1.14 (1.39) .84 .25 .48
------ ------ ------ ------ ------
Total from operations................ 1.65 (.85) 1.38 .84 1.08
------ ------ ------ ------ ------
Distributions to shareholders:
From net investment income (a)........... (.53) (.52) (.54) (.59) (.60)
From net realized gains.................. -- (.04) (.09) (.05) (.06)
------- ------- ------- ------- -------
Total distributions.................... (.53) (.56) (.63) (.64) (.66)
------- ------- ------- ------- -------
Net asset value:
End of period............................ $10.73 $ 9.61 $11.02 $10.27 $10.07
====== ====== ====== ====== ======
Total investment return (b)................. 17.52 % (7.88)% 13.80% 8.57% 11.59%
Net assets at end of
period (000's omitted)................... $307,734 $284,132 $311,187 $162,728 $68,250
Ratios:
Ratio of expenses to
average daily net assets (f)........... .87% .61% .70% .37% .78%
Ratio of net investment income
to average daily net assets............ 4.92% 5.29% 4.93% 5.66% 6.13%
Assuming no voluntary waivers
and reimbursements:
Expenses (c)..................... .92% .94% 1.02% 1.06% 1.16%
Net investment income............ 4.87% 4.96% 4.61% 4.97% 5.75%
Portfolio turnover rate (excluding
short-term securities)................. 53.72% 24.75% 18.25% 14.11% 43.68%
See accompanying notes to Financial Highlights.
</TABLE>
(5) FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
MINNESOTA INSURED FUND
----------------------------------------------------------
CLASS B CLASS C
--------------------- -----------------------------
PERIOD FROM YEAR PERIOD FROM
MARCH 7, 1995(d) ENDED MAY 4, 1994(d)
TO DECEMBER 31, DECEMBER 31, DECEMBER 31,
1995 1995 1994
--------------------- ------------ -------------
Net asset value:
<S> <C> <C> <C>
Beginning of period........................... $10.14 $9.61 $10.23
------ ----- ------
Operations:
Net investment income......................... .38 .43 .30
Net realized and unrealized
gain (loss) on investments.................. .58 1.14 (.62)
------ ----- ------
Total from operations..................... .96 1.57 (.32)
------ ----- ------
Distributions to shareholders:
From net investment income (a)................ (.38) (.45) (.28)
From net realized gains....................... -- -- (.02)
------- ------ -------
Total distributions......................... (.38) (.45) (.30)
------- ------ -------
Net asset value:
End of period................................. $10.72 $10.73 $9.61
====== ====== =====
Total investment return (b)...................... 9.59% 16.63% (3.14)%
Net assets at end of
period (000's omitted)........................ $4,655 $3,166 $1,525
Ratios:
Ratio of expenses to
average daily net assets (f)................ 1.34%(e) 1.66% 1.36%(e)
Ratio of net investment income
to average daily net assets................. 4.15%(e) 4.11% 4.68%(e)
Assuming no voluntary waivers
and reimbursements:
Expenses (c).......................... 1.64%(e) 1.67% 1.68%(e)
Net investment income................. 3.85%(e) 4.10% 4.36%(e)
Portfolio turnover rate (excluding
short-term securities)...................... 53.72% 53.72% 24.75%
See accompanying notes to Financial Highlights.
</TABLE>
<TABLE>
<CAPTION>
(5) FINANCIAL HIGHLIGHTS (CONTINUED)
MINNESOTA LIMITED TERM TAX FREE FUND
------------------------------------------------------------
CLASS A
------------------------------------------------------------
YEAR ENDED DECEMBER 31,
------------------------------------------------------------
1995 1994 1993 1992 1991
------- ------- ------- ------- -------
Net asset value:
<S> <C> <C> <C> <C> <C>
Beginning of period...................... $10.50 $11.16 $10.83 $10.69 $10.32
------ ------ ------ ------ ------
Operations:
Net investment income.................... .51 .45 .47 .51 .55
Net realized and unrealized
gain (loss) on investments............. .64 (.66) .37 .18 .37
------ ------ ------ ------ ------
Total from operations................ 1.15 (.21) .84 .69 .92
------ ------ ------ ------ ------
Distributions to shareholders:
From net investment income (a)........... (.51) (.45) (.47) (.51) (.55)
From net realized gains.................. -- -- (.04) (.04) --
------- ------- ------- ------- -------
Total distributions.................... (.51) (.45) (.51) (.55) (.55)
------- ------- ------- ------- -------
Net asset value:
End of period............................ $11.14 $10.50 $11.16 $10.83 $10.69
====== ====== ====== ====== ======
Total investment return (b)................. 11.00% (1.91)% 7.88% 6.62% 9.24%
Net assets at end of
period (000's omitted)................... $72,405 $84,168 $75,374 $48,210 $27,268
Ratios:
Ratio of expenses to
average daily net assets (f)........... .91% .92% .99% 1.09% 1.23%
Ratio of net investment income
to average daily net assets............ 4.61% 4.18% 4.18% 4.71% 5.35%
Assuming no voluntary waivers
and reimbursements:
Expenses (c)..................... .91% .92% .99% 1.09% 1.23%
Net investment income............ 4.61% 4.18% 4.18% 4.71% 5.35%
Portfolio turnover rate (excluding
short-term securities)................. 40.28% 42.06% 19.13% 25.56% 43.39%
See accompanying notes to Financial Highlights.
</TABLE>
(5) FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
MINNESOTA LIMITED TERM TAX FREE FUND
----------------------------------------------------------
CLASS B CLASS C
------------------ --------------------------------
PERIOD FROM YEAR PERIOD FROM
AUGUST 15, 1995(d) ENDED APRIL 30, 1994(d)
TO DECEMBER 31, DECEMBER 31, DECEMBER 31,
1995 1995 1994
------ ------ ------
Net asset value:
<S> <C> <C> <C>
Beginning of period............................. $10.95 $10.50 $10.74
------ ------ ------
Operations:
Net investment income........................... .17 .42 .24
Net realized and unrealized
gain (loss) on investments.................... .19 .63 (.24)
------ ------ ------
Total from operations....................... .36 1.05 --
------ ------ ------
Distributions to shareholders:
From net investment income (a).................. (.17) (.42) (.24)
------ ------- -------
Net asset value:
End of period................................... $11.14 $11.13 $10.50
====== ====== ======
Total investment return (b)........................ 3.26% 10.18% (0.03)%
Net assets at end of
period (000's omitted).......................... $27 $694 $341
Ratios:
Ratio of expenses to
average daily net assets (f).................. 1.30%(e) 1.63% 1.71%(e)
Ratio of net investment income
to average daily net assets................... 3.93%(e) 3.82% 3.35%(e)
Assuming no voluntary waivers
and reimbursements:
Expenses (c)............................ 1.55%(e) 1.63% 1.71%(e)
Net investment income................... 3.68%(e) 3.82% 3.35%(e)
Portfolio turnover rate (excluding
short-term securities)........................ 40.28% 40.28% 42.05%
See accompanying notes to Financial Highlights.
</TABLE>
(5) FINANCIAL HIGHLIGHTS (CONTINUED)
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.
(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 a portion
of 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.
(f) Beginning in the year ended December 31, 1995, 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.
<TABLE>
<CAPTION>
VOYAGEUR MINNESOTA TAX FREE FUND INVESTMENTS IN SECURITIES DECEMBER 31, 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 (99.1%):
ESCROWED WITH U.S. GOVERNMENT BONDS (4.1%):
------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
$ 1,000 Anoka County Capital Improvement....................................... 7.20% 02-01-99 $1,078,770
250 Blaine IDR (Ball Corp)................................................. 8.25 12-01-99 283,433
300 Blaine IDR (Ball Corp)................................................. 8.25 12-01-00 347,460
500 Bloomington Tax Increment ............................................. 9.75 02-01-05 673,715
390 Brainerd Independent School District #181.............................. 7.00 06-01-01 435,532
250 Kimball Independent School District #739............................... 7.60 02-01-98 266,660
275 Kimball Independent School District #739............................... 7.60 02-01-98 293,326
275 Kimball Independent School District #739............................... 7.70 02-01-98 293,865
300 Kimball Independent School District #739............................... 7.70 02-01-98 320,580
500 Little Falls Independent School District #482 (AMBAC Insured).......... 6.80 02-01-99 538,940
860 Northfield College Facility Revenue - St. Olaf College................. 8.00 10-01-98 943,480
1,255 Northfield College Facility Revenue - St. Olaf College................. 7.88 10-01-98 1,372,807
1,000 Owatonna Public Utilities.............................................. 6.75 01-01-01 1,103,820
750 Rockford Independent School District #833.............................. 7.20 12-15-98 815,858
990 Southern Minnesota Muni Power Agency Power Supply...................... 5.50 01-01-15 1,001,662
1,000 Southern Minnesota Muni Power Agency Power Supply...................... 5.75 01-01-18 1,037,510
1,000 St. Cloud Independent School District #742............................. 7.50 02-01-98 1,060,580
775 St. Louis Park Methodist Hospital (AMBAC Insured)...................... 7.25 07-01-00 880,966
2,175 St. Paul Sewer Revenue Series 88A...................................... 8.00 12-01-98 2,417,578
1,500 University of Minnesota Revenue Refunding.............................. 6.00 02-01-11 1,502,340
1,560 Wayzata Independent School District #284............................... 7.10 02-01-99 1,678,435
625 Wayzata Independent School District #284............................... 7.05 02-01-99 671,562
------------
19,018,879
------------
GENERAL OBLIGATION (32.9%):
------------------------------------------------------------------------------------------------------
2,325 Austin Independent School District #492 (FSA Insured).................. 5.10 02-01-12 2,289,823
1,450 Becker Independent School District #726 (FSA Insured).................. 5.30 02-01-11 1,457,584
1,235 Becker Independent School District #726 (FSA Insured).................. 5.38 02-01-14 1,241,286
1,000 Byron Independent School District #531 (AMBAC Insured)................. 5.30 06-01-14 1,002,990
1,805 Centennial Independent School District #12 (FGIC Insured).............. 4.88 02-01-10 1,760,958
1,305 Centennial Independent School District #12 (FGIC Insured).............. 4.88 02-01-12 1,259,116
2,850 Chaska Independent School District #112 (FGIC Insured)................. 5.25 02-01-11 2,854,873
5,085 Chaska Independent School District #112 (FGIC Insured)................. 5.38 02-01-14 5,103,459
2,730 Edina Independent School District #273................................. 5.75 02-01-13 2,797,240
1,000 Fairbault Independent School District #656 (MN School District
Credit Enhanced)..................................................... 6.10 06-01-10 1,074,000
3,500 Farmington Independent School District #192 (AMBAC Insured)............ 5.13 02-01-15 3,439,240
11,290 Hennepin County........................................................ 5.75 10-01-10 11,797,373
3,675 Hopkins Independent School District #270 (MBIA Insured)................ 4.88 02-01-13 3,537,188
1,000 Lake of the Woods Independent School District #390 (MBIA Insured)...... 5.10 02-01-16 980,270
1,180 Lake of the Woods Independent School District #390 (MBIA Insured)...... 5.13% 02-01-20 1,151,892
2,665 Lakeville Independent School District #194 Zero Coupon.................5.46(g)(1) 02-01-08 1,415,648
2,740 Lakeville Independent School District #194 Zero Coupon.................5.37(g)(1) 02-01-07 1,551,799
5,600 Lakeville Independent School District #194 (MBIA Insured).............. 5.13 02-01-13 5,533,920
8,705 Lakeville Independent School District #194 (MBIA Insured).............. 5.15 02-01-15 8,579,909
9,700 Lakeville Independent School District #194 (FGIC Insured).............. 5.60 02-01-18 9,826,391
1,540 Mahtomedi Independent School District #832 Series B Zero Coupon
(MBIA Insured)...................................................... 5.90 02-01-14 582,674
3,870 Mankato Independent School District #77 (FSA Insured).................. 5.30 02-01-13 3,884,977
10,000 Maplewood Independent School District #622 (FSA Insured)............... 7.10 02-01-25 11,344,700
1,015 Milaca Independent School District #921 (FSA Insured).................. 5.50 02-01-20 1,023,110
1,700 Minneapolis Convention Center Facilities............................... 5.45 04-01-14 1,707,123
1,000 Minneapolis G.O........................................................ 5.45 04-01-13 1,013,620
2,000 Minneapolis G.O. Series B.............................................. 5.20 03-01-13 2,002,420
1,750 Minneapolis Unlimited Tax Series 1992 G.O.............................. 6.30 10-01-08 1,902,145
3,495 Minnesota State G.O.................................................... 5.50 08-01-09 3,594,398
2,000 Minnesota State G.O.................................................... 4.90 08-01-11 1,954,140
1,140 New York Mills Independent School District #53 (AMBAC Insured)......... 5.05 02-01-15 1,111,500
1,540 North Branch Independent School District #138 (FGIC Insured)........... 5.50 02-01-12 1,565,225
240 Pine Island Independent School District #255 (FSA Insured)............. 6.63 06-01-12 257,213
310 Pine Island Independent School District #255 (FSA Insured)............. 6.63 06-01-13 331,929
330 Pine Island Independent School District #255 (FSA Insured)............. 6.63 06-01-14 353,829
355 Pine Island Independent School District #255 (FSA Insured)............. 6.63 06-01-15 379,424
380 Pine Island Independent School District #255 (FSA Insured)............. 6.63 06-01-16 406,053
385 Plainview Independent School District #810............................. 6.70 02-01-06 422,538
420 Plainview Independent School District #810............................. 6.75 02-01-07 462,000
445 Plainview Independent School District #810............................. 6.75 02-01-08 489,500
1,000 Rochester Tax Increment................................................ 6.50 12-01-04 1,037,030
2,760 Rockford Independent School District #883 (FSA Insured)................ 5.25 12-15-14 2,759,917
9,375 Rosemount - Apple Valley Independent School District #196 (FSA Insured) 5.88 04-01-15 9,774,844
2,600 Rosemount Independent School District #196 Series B Zero Coupon
(FSA Insured)........................................................ 5.93(g) 04-01-11 1,166,230
1,850 Rosemount Independent School District #196 Zero Coupon (FSA Insured)... 5.96(g) 04-01-12 782,328
1,915 Rosemount Independent School District #196 Zero Coupon (FSA Insured)... 6.01(g) 04-01-13 762,879
540 Sartell Independent School District #748 Zero Coupon (MBIA Insured).... 5.98(g) 02-01-13 217,042
1,075 Sartell Independent School District #748 Zero Coupon (MBIA Insured).... 6.10(g) 02-01-15 382,592
1,750 Sartell Independent School District #748 Zero Coupon (MBIA Insured).... 6.15(g) 02-01-16 589,995
1,600 Sartell Independent School District #748 Zero Coupon (MBIA Insured).... 6.15(g) 02-01-17 510,976
1,850 Sartell Independent School District #748 Series A (MBIA Insured)....... 5.75 02-01-15 1,913,085
1,655 South Washington County Independent School District #833 (FGIC Insured) 4.88 06-01-10 1,615,694
1,400 South Washington County Independent School District #833 (FGIC Insured) 4.88 06-01-11 1,359,750
1,310 South Washington County Independent School District #833 (FGIC Insured) 4.88 06-01-12 1,262,512
1,350 South Washington County Independent School District #833 (FGIC Insured) 4.88 06-01-13 1,299,375
2,170 South Washington County Independent School District #833 (FGIC Insured) 4.88 06-01-14 2,072,350
2,000 Spring Lake Park School District #16 (MBIA Insured).................... 5.25 02-01-17 1,992,340
3,000 Stillwater Independent School District #834 (MBIA Insured)............. 5.75 02-01-15 3,094,380
1,680 Washington County...................................................... 5.90 02-01-10 1,753,483
7,625 White Bear Lake Independent School District #624 (FSA Insured)......... 5.30 02-01-11 7,651,459
5,750 White Bear Lake Independent School District #624 (FSA Insured)......... 5.30 02-01-14 5,756,440
------------
151,198,178
------------
UTILITIES (15.9%):
------------------------------------------------------------------------------------------------------
1,750 Bass Brook PCR Minnesota Power & Light (MBIA Insured).................. 6.00 07-01-22 1,825,845
21,005 Bass Brook PCR Minnesota Power & Light................................. 6.00 07-01-22 21,267,563
3,815 Northern Minnesota Municipal Power Agency Zero Coupon (AMBAC Insured).. 5.85(g) 01-01-09 1,955,683
1,800 Northern Minnesota Municipal Power Agency Series B (AMBAC Insured)..... 5.50 01-01-18 1,814,328
9,200 Northern Minnesota Municipal Power Agency Series B (AMBAC Insured)..... 5.50 01-01-18 9,273,232
5,875 Northern Minnesota Municipal Power Agency.............................. 7.25 01-01-16 6,367,031
1,560 Southern Minnesota Municipal Power Agency Supply System (AMBAC Insured) 5.50 01-01-15 1,568,455
8,200 Southern Minnesota Municipal Power Agency (MBIA Insured)............... 4.75 01-01-16 7,681,678
3,000 Southern Minnesota Municipal Power Agency (FGIC Insured)............... 5.75 01-01-18 3,065,640
3,880 Southern Minnesota Municipal Power Agency Revenue Series A (FGIC Insured)5.00 01-01-12 3,771,787
2,000 Southern Minnesota Municipal Power Agency Series B (FGIC Insured)...... 5.00 01-01-13 1,937,680
9,770 Southern Minnesota Municipal Power Agency (MBIA Insured)............... 5.75 01-01-18 9,983,768
4,785 Southern Minnesota Municipal Power Agency Zero Coupon(MBIA Insured).... 6.77(g) 01-01-19 1,371,333
5,000 Southern Minnesota Municipal Power Agency Zero Coupon (MBIA Insured)... 6.14(g) 01-01-21 1,282,200
------------
73,166,223
------------
INDUSTRIAL (6.0%):
------------------------------------------------------------------------------------------------------
1,000 Anoka Resource Recovery Revenue for NSP................................ 7.15 12-01-08 1,090,410
2,000 Becker Pollution Control Revenue for NSP............................... 6.80 04-01-07 2,160,000
1,000 East Grand Forks Amer Crystal Sugar.................................... 7.75 04-01-18 1,099,600
1,430 Minneapolis Community Development Agency (Fireman's Fund Insured)...... 7.63 06-01-06 1,480,050
1,990 Minnesota Public Facilities Authority.................................. 7.10 03-01-12 2,191,487
5,220 Minnesota Public Facilities Authority.................................. 6.95 03-01-13 5,781,150
4,400 Minnesota Public Facilities Authority Water Control.................... 6.25 03-01-16 4,744,520
745 Red Wing IDR K-Mart.................................................... 5.50 07-01-08 633,250
2,200 Richfield CDR for Richfield Shoppes.................................... 8.38(j) 10-01-13 2,238,500
4,704 St. Cloud Revenue Northwest Center Association......................... 7.50(m) 08-01-12 4,886,250
1,300 St. Paul Port Authority Fort Road Medical/Twin Parks
(Asset Guaranty Reinsurance)......................................... 7.50 09-01-02 1,415,570
------------
27,720,787
------------
HEALTH CARE (24.4%):
------------------------------------------------------------------------------------------------------
1,000 Albert Lea St. John's Lutheran Home Project............................ 8.50 11-01-19 1,105,930
600 Bemidji North Country Health Services.................................. 6.05 09-01-16 620,784
1,825 Bemidji Hospital Facilities Revenue.................................... 6.05 09-01-24 1,879,294
2,685 Bloomington Masonic Home Care Center (AMBAC Insured)................... 5.88 07-01-22 2,756,609
2,250 Brainerd Benedictine Health Systems (Connie Lee Insured)............... 6.00 02-15-12 2,347,155
9,450 Duluth Benedictine/St. Mary's Health (Connie Lee Insured).............. 6.00 02-15-20 9,831,213
4,295 Duluth Economic Development Authority St. Luke's Hospital
(Connie Lee Insured)................................................ 6.40 05-01-18 4,589,938
2,500 Edina Fairview Hospital Revenue........................................ 7.13 07-01-19 2,728,125
500 Glencoe/McLeod County Health Care...................................... 8.50 12-01-15 534,920
250 Little Canada Senior Housing Facilities (Presbyterian Homes Guaranteed) 7.25 07-01-12 252,813
1,000 Little Canada Health Care (Presbyterian Homes Guaranteed).............. 7.25 07-01-12 1,011,250
3,000 Minneapolis Fairview Hospital Revenue (MBIA Insured)................... 6.50 01-01-11 3,242,670
6,800 Minneapolis Fairview Hospital Revenue Series 1993A (MBIA Insured)...... 5.25 11-15-13 6,698,884
2,635 Minneapolis Health Care American Baptist Homes......................... 8.70 11-01-09 2,888,619
14,045 Minneapolis/St. Paul HRA Childrens Hospital (FSA Insured).............. 5.50 08-15-25 14,054,831
1,360 Minneapolis/St. Paul HRA HealthOne Group (MBIA Insured)................ 7.40 08-15-11 1,518,100
1,500 Minneapolis/St. Paul Healthspan 93A (AMBAC Insured).................... 5.00 11-15-13 1,443,315
10,725 Robbinsdale North Memorial Medical Center (AMBAC Insured).............. 5.50 05-15-23 10,709,127
1,500 Rochester Mayo Health Care Revenue..................................... 5.90 11-15-10 1,613,805
6,000 Rochester Mayo Health Care Revenue Series 92H.......................... 6.03 11-15-15 6,273,420
5,900 Rochester Mayo Foundation, Series 1992 D............................... 6.25 11-15-21 6,274,768
5,500 Rochester Mayo Foundation, Series 1992 I............................... 5.75 11-15-21 5,593,115
2,000 Roseville Presbyterian Homes, Inc. Health Care Proj.
(Presbyterian Homes Guarantee..........................................7.50 05-01-07 2,080,640
600 Spring Park Twin Birch Nursing Home (Presbyterian Homes Guaranteed).... 8.25 08-01-11 651,228
750 Springfield St. John's Lutheran Home Project........................... 8.50 11-01-19 809,355
10,250 St. Cloud Hospital Revenue (AMBAC Insured)............................. 5.30 10-01-20 10,123,822
11,220 St. Louis Park Methodist Hospital (AMBAC Insured)...................... 5.20 07-01-23 10,807,216
------------
112,440,946
------------
HOUSING (12.5%):
------------------------------------------------------------------------------------------------------
500 Austin Housing and Redevelopment Authority Courtyard Residence
Series 95A........................................................... 7.25 01-01-26 513,375
2,500 Brooklyn Center Multifamily Housing Revenue (Section 8)................ 5.90 01-01-20 2,499,975
1,000 Burnsville Coventry Court Apartments Project (FHA Insured)............. 7.50 09-01-17 1,069,720
3,370 Burnsville Multifamily - Bridgeway Apartments.......................... 7.63 02-01-24 3,523,032
215 Dakota County Housing and Redevelopment Authority (GNMA Backed)........ 8.10 03-01-16 230,345
1,000 Eagan Forest Ridge Apartments Project (FHA Insured).................... 7.50 09-01-17 1,069,720
400 Eden Prairie Multifamily Revenue, Eden Investments (FHA Insured)....... 7.40 08-01-25 429,024
1,585 Eden Prairie Multifamily Windslope Apartments (Section 8).............. 7.10 11-01-17 1,687,343
1,685 Edina Park Plaza (FHA Insured)......................................... 7.50 12-01-09 1,839,632
1,250 Edina Park Plaza (FHA Insured)......................................... 7.70 12-01-28 1,339,188
1,000 Hopkins Augustana Home Project......................................... 9.00 07-01-20 1,050,980
1,000 Maplewood Hazel Ridge Apartments....................................... 9.25 12-01-00(c)1,056,800
2,135 Minneapolis Community Development Agency and St. Paul Housing Redevelopment
Agency Family Housing Phase II...................................... 7.75 07-01-06 2,201,121
1,000 Minneapolis Housing Facility Revenue 1993 Augustana Chapel View........ 7.00 04-01-18 1,008,420
4,000 Minneapolis Multifamily Mortgage Seward Towers (GNMA Backed)........... 7.38 12-20-30 4,265,000
1,000 Minnesota Housing Finance Agency Housing Development (Section 8)....... 7.80 08-01-18 1,021,050
1,500 Minnesota Housing Finance Agency Multifamily Housing................... 6.95 02-01-14 1,594,260
745 Minnesota Housing Finance Agency Multifamily Housing................... 6.95 08-01-17 787,286
470 Minnesota Housing Finance Agency Single Family Mortgage................ 7.65 07-01-08 516,116
385 Minnesota Housing Finance Agency Single Family Mortgage................ 7.30 07-01-09 411,211
190 Minnesota Housing Finance Agency Single Family Mortgage................ 7.30 07-01-10 202,626
1,010 Minnesota Housing Finance Agency Single Family Mortgage................ 7.10 07-01-11 1,082,518
1,080 Minnesota Housing Finance Agency Single Family Mortgage................ 7.25 07-01-16 1,107,940
2,000 Minnetonka Multifamily - Beacon Hill Project........................... 7.70 06-01-25 2,095,000
1,500 Red Wing Housing and Redevelopment Agency Jordan Tower (Section 8)..... 7.00 01-01-19 1,584,390
2,250 St. Cloud Germain Towers Housing Series 1993 (Section 8)............... 5.90 09-01-20 2,206,822
2,045 St. Cloud Housing and Redevelopment Agency Northway A&B Project
(Section 8).......................................................... 7.50 12-01-18 2,096,125
3,855 St. Louis Park Multifamily Housing Revenue (FHA Insured)............... 6.25 12-01-28 3,940,542
3,865 St. Louis Park Multifamily Housing (GNMA Backed)....................... 5.75 01-01-29 3,842,351
1,890 St. Louis Park Single Family (GNMA Backed)............................. 7.25 04-20-23 2,029,444
1,000 St. Paul Housing and Redevelopment Agency Como Lake Project (FHA Insured)7.50(i) 03-01-26 930,000
75 St. Paul Housing and Redevelopment Agency Single Family Mortgage
(FNMA Backed)........................................................ 6.90 12-01-11 80,630
1,840 St. Paul Housing and Redevelopment Agency Single Family Mortgage
(FNMA Backed)....................................................... 6.90 12-01-21 1,959,214
1,100 Twin Valley First Mortgage (FHA Insured)............................... 8.50 02-01-11 1,102,156
2,130 Wadena Housing and Redevelopment Agency Humphrey Manor (Section 8)..... 6.00 02-01-19 2,116,730
1,120 Wells Housing and Redevelopment Agency Broadway Apartment Project
(Section 8).......................................................... 7.00 01-01-19 1,199,475
2,050 Willmar Housing and Redevelopment Agency Highland Apartments (Section 8) 5.85 06-01-19 2,036,942
------------
57,726,503
------------
EDUCATION (1.5%):
------------------------------------------------------------------------------------------------------
4,000 Minnesota Higher Education Carleton College............................ 5.75 11-01-12 4,143,320
1,000 Minnesota Higher Education St. Thomas University....................... 5.60 09-01-14 1,010,240
1,540 St. Paul HRA St. Paul Academy Series 1993.............................. 5.45 10-01-23 1,524,646
------------
6,678,206
------------
CERTIFICATE OF PARTICIPATION (0.4%):
------------------------------------------------------------------------------------------------------
1,854 West St. Paul Commercial Mortgage (K-Mart Lessee)......................7.00(j) 11-01-07 1,802,583
------------
OTHER (1.4%):
------------------------------------------------------------------------------------------------------
5,750 Minneapolis Community Development Agency Zero Coupon (MBIA Insured).... 6.70(g) 09-01-09 2,848,262
510 Minneapolis Community Development Agency Common Bond Fund.............. 7.13 12-01-05 558,598
855 Minneapolis Community Development Agency Common Bond Fund.............. 7.95 12-01-11 943,142
795 Minneapolis Community Development Agency Common Bond Fund.............. 7.40 12-01-21 850,173
1,120 St. Louis Park Refunding Revenue G & K Partner, Methodist
Hospital Guaranteed.................................................. 7.25 06-01-13 1,212,445
------------
6,412,620
------------
TOTAL MINNESOTA MUNICIPAL BONDS (cost: $426,884,049) $456,164,925
------------
SHORT-TERM SECURITIES (0.1%):
------------------------------------------------------------------------------------------------------
116 Federated Minnesota Municipal Cash Trust (cost: $116,000).............. 4.49%(b) 116,000
------------
TOTAL INVESTMENT IN SECURITIES (cost: $427,000,049) (f) $456,280,925
============
See accompanying notes to investments in securities.
VOYAGEUR MINNESOTA INSURED FUND INVESTMENTS IN SECURITIES DECEMBER 31, 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 (97.6%):
ESCROWED WITH U.S. GOVERNMENT BONDS (17.4%):
------------------------------------------------------------------------------------------------------
1,065 Brainerd Independent School District #181 ((FGIC Insured).............. 7.00 06-01-01 1,196,389
450 Centennial Independent School District #12 (FSA Insured)............... 7.15 02-01-00 498,694
250 Centennial Independent School District #12 (FSA Insured)............... 7.15 02-01-00 277,052
200 Centennial Independent School District #12 (FSA Insured)............... 7.10 02-01-00 221,270
9,000 Dakota, Washington & Anoka Single Family Housing (GNMA Insured)........ 8.45(e) 09-01-19 12,368,970
10,115 Dakota & Washington Counties HRA Single Family Mortgage Revenue
(GNMA Insured)...................................................... 8.38(e) 09-01-21 13,916,217
405 Dakota & Washington Counties HRA (MBIA Insured)........................ 8.15(e) 09-01-16 535,564
500 Delano Independent School District #879 (AMBAC Insured)................ 7.25 02-01-01 563,920
200 Elk River Independent School District #728 (FSA Insured)............... 7.00 02-01-00 218,962
1,165 Elk River Independent School District #728 (FSA Insured)............... 6.30 02-01-02 1,271,458
450 Lake of the Woods Independent School District #390 (AMBAC Insured)..... 7.35 02-01-99 491,423
760 Minnesota State University System (MBIA Insured)....................... 7.40 06-30-99 840,036
2,700 Robbinsdale North Memorial Medical Center (AMBAC Insured).............. 7.38 01-01-99 2,987,928
520 South Washington County Independent School District #833 (FGIC Insured) 6.88 06-01-00 570,383
4,460 Southern Minnesota Municipal Power Agency (AMBAC Insured).............. 5.75 01-01-18 4,627,295
250 St. Francis Independent School District #15 (FGIC Insured)............. 7.60 02-01-98 266,812
500 St. Louis Park Methodist Hospital (AMBAC Insured)...................... 7.25 07-01-00 568,365
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 2,966,281
500 Washington County HRA Jail Facilities (MBIA Insured).................. 7.00 02-01-02 565,495
2,000 Western Minnesota Municipal Power Agency Escrowed to Maturity.......... 6.60 01-01-10 2,267,340
2,580 Western Minnesota Municipal Power Agency (AMBAC Insured)............... 9.50 01-01-96 2,631,600
715 Western Minnesota Municipal Power Agency (MBIA Insured)................ 9.75 01-01-16 1,090,690
1,000 Wright County (FSA Insured)............................................ 7.20(e) 12-01-99 1,104,010
------------
54,742,779
------------
GENERAL OBLIGATION (39.0%):
------------------------------------------------------------------------------------------------------
1,575 Alexandria Independent School District #206 (MBIA Insured)............. 6.30 02-01-11 1,690,826
1,675 Alexandria Independent School District #206 (MBIA Insured)............. 6.30 02-01-12 1,794,073
1,775 Alexandria Independent School District #206 (MBIA Insured)............. 6.30 02-01-13 1,899,002
8,045 Anoka County (FGIC Insured)............................................ 5.90 02-01-11 8,374,684
6,300 Becker (MBIA Insured).................................................. 6.25(e) 08-01-15 6,707,862
2,760 Big Lake Independent School District #727 (AMBAC Insured).............. 5.70 02-01-13 2,820,610
1,030 Buffalo Independent School District #887 (FSA Insured)................. 6.10 02-01-15 1,085,733
515 Carver County HRA Jail Facility (MBIA Insured)......................... 6.40 02-01-10 552,070
550 Carver County HRA Jail Facility (MBIA Insured)......................... 6.40 02-01-11 588,401
585 Carver County HRA Jail Facility (MBIA Insured)......................... 6.40 02-01-12 624,587
625 Carver County HRA Jail Facility (MBIA Insured)......................... 6.40 02-01-13 666,625
670 Carver County HRA Jail Facility (MBIA Insured)......................... 6.40 02-01-14 713,899
1,000 Centennial Independent School District #12 (FGIC Insured).............. 4.88 02-01-09 982,050
1,135 Dakota County (AMBAC Insured).......................................... 6.40 02-01-08 1,198,844
1,000 Dakota County (AMBAC Insured).......................................... 6.45 02-01-09 1,058,750
2,500 Dakota County (AMBAC Insured).......................................... 6.45 02-01-10 2,646,875
2,500 Eden Prairie Independent School District #272 (FGIC Insured)........... 5.85 02-01-13 2,582,950
6,200 Eden Prairie Independent School District #272 (FGIC Insured)........... 5.65 02-01-13 6,332,618
5,025 Elk River Independent School District #728 (AMBAC Insured)............. 6.00 02-01-09 5,327,713
230 Ellendale-Geneva Independent School District #762 (AMBAC Insured)...... 6.00 02-01-10 243,188
245 Ellendale-Geneva Independent School District #762 (AMBAC Insured)...... 6.00 02-01-11 258,304
265 Ellendale-Geneva Independent School District #762 (AMBAC Insured)...... 6.00 02-01-12 278,555
280 Ellendale-Geneva Independent School District #762 (AMBAC Insured)...... 6.00 02-01-13 293,882
300 Ellendale-Geneva Independent School District #762 (AMBAC Insured)...... 6.00 02-01-14 314,403
320 Ellendale-Geneva Independent School District #762 (AMBAC Insured)...... 6.00 02-01-15 334,861
850 Farmington Independent School District #192 (MBIA Insured)............. 6.80 02-01-11 915,824
1,760 Fergus Falls Independent School District #544 (MBIA Insured)........... 5.30 02-01-14 1,765,069
1,800 Hennepin County (MBIA Insured)......................................... 5.75 10-01-10 1,880,892
1,900 Hopkins Independent School District #270 (MBIA Insured)................ 4.80 02-01-10 1,840,625
2,500 Hopkins Independent School District #270 (MBIA Insured................. 4.85 02-01-12 2,409,375
3,875 Hopkins Independent School District #270 (MBIA Insured)................ 4.88 02-01-14 3,700,625
1,100 Mankato Independent School District #77 (FSA Insured).................. 5.20 02-01-10 1,104,268
5,935 Maplewood Independent School District #622 (MBIA Insured).............. 7.10 02-01-19 6,756,048
11,525 Maplewood Independent School District #622 (FSA Insured)............... 7.10 02-01-25 13,074,767
475 Moorhead Independent School District #152 (AMBAC Insured).............. 5.90 02-01-10 492,770
505 Moorhead Independent School District #152 (AMBAC Insured).............. 5.90 02-01-11 522,705
540 Moorhead Independent School District #152 (AMBAC Insured).............. 5.90 02-01-12 557,669
575 Moorhead Independent School District #152 (AMBAC Insured).............. 6.00 02-01-13 596,453
1,930 North Branch Independent School District #138 (FGIC Insured)........... 5.50 02-01-11 1,967,191
2,640 Rockford Independent School District #833 (FSA Insured)................ 5.20 12-15-11 2,644,488
500 Roseau Independent School District #682 (AMBAC Insured)................ 7.00 02-01-16 539,375
1,860 Rosemount Independent School District #196 Zero Coupon (FSA Insured)... 5.80(g) 04-01-09 941,309
2,240 Rosemount Independent School District #196 Series B Zero Coupon
(FSA Insured)........................................................ 5.85(g) 04-01-10 1,064,896
625 South St. Paul Independent School District #6 (FGIC Insured)........... 6.25 02-01-10 653,219
500 South St. Paul Independent School District #6 (FGIC Insured)........... 6.45 02-01-11 525,465
300 South St. Paul Independent School District #6 (FGIC Insured)........... 6.45 02-01-12 314,829
1,430 South Washington County Independent School District #833 (FGIC Insured) 6.13 06-01-09 1,505,332
2,720 South Washington County Independent School District #833 (FGIC Insured) 6.13 06-01-11 2,856,734
4,350 Spring Lake Park School District #16 (MBIA Insured).................... 5.25 02-01-14 4,349,826
1,580 Spring Lake Park School District #16 (MBIA Insured).................... 5.20 02-01-09 1,591,186
1,000 St. Cloud Independent School District #742 (FGIC Insured)............. 6.05 02-01-09 1,061,880
1,845 St. Francis Independent School District #15 (FGIC Insured)............. 5.90 04-01-10 1,938,505
1,595 Stillwater Independent School District #834 (FGIC Insured)............. 5.50 02-01-08 1,627,235
5,995 Stillwater Independent School District #834 (FGIC Insured)............. 5.50 02-01-10 6,074,913
3,960 Warroad Independent School District #690 (AMBAC Insured)............... 5.20 02-01-13 3,946,536
4,100 Willmar Independent School District #347 (AMBAC Insured)............... 6.25 02-01-15 4,332,511
------------
122,923,885
------------
UTILITIES (7.9%):
------------------------------------------------------------------------------------------------------
5,250 Bass Brook PCR for Minnesota Power & Light Company (MBIA Insured)...... 6.00 07-01-22 5,477,535
500 Marshall Utility Revenue (FSA Insured)................................. 6.45 07-01-10 544,510
100 Marshall Utility Revenue (FSA Insured)................................. 6.45 07-01-11 108,642
500 Marshall Utility Revenue (FSA Insured)................................. 6.50 07-01-12 543,455
500 Marshall Utility Revenue (FSA Insured)................................. 6.50 07-01-13 542,810
1,735 Moorhead Public Utilities (MBIA Insured)............................... 6.25 11-01-12 1,849,666
6,700 Northern Minnesota Municipal Power Agency (AMBAC Insured).............. 5.50 01-01-18 6,753,332
1,330 Southern Minnesota Municipal Power Agency (AMBAC Insured).............. 5.75 01-01-18 1,359,100
6,070 Southern Minnesota Municipal Power Agency (FGIC Insured)............... 5.75 01-01-18 6,202,812
1,605 Western Minnesota Municipal Power Agency (MBIA Insured)................ 5.50 01-01-15 1,607,616
------------
24,989,478
------------
INDUSTRIAL (0.5%):
------------------------------------------------------------------------------------------------------
1,500 Minnesota Public Facility Authority Water Pollution Control
(MBIA Insured)....................................................... 6.50 03-01-14 1,625,025
------------
HEALTH CARE (21.6%):
------------------------------------------------------------------------------------------------------
1,250 Bloomington Masonic Home Care Center (AMBAC Insured)................... 5.90 07-01-09 1,311,725
1,500 Brainerd Benedictine Health (Connie Lee Insured)....................... 6.00 02-15-12 1,564,770
2,000 Brainerd Benedictine Health (Connie Lee Insured)....................... 6.00 02-15-20 2,071,220
1,630 Detroit Lakes Benedictine Health (Connie Lee Insured).................. 6.00 02-15-12 1,708,158
2,135 Detroit Lakes Benedictine Health (Connie Lee Insured).................. 6.00 02-15-19 2,221,126
3,750 Duluth for Duluth Clinic, Ltd. (AMBAC Insured)......................... 6.30 11-01-22 4,014,000
10,000 Duluth Benedictine/St. Mary's Health (Connie Lee Insured).............. 6.00 02-15-17 10,412,800
2,000 Duluth St. Luke's Hospital (Connie Lee Insured)........................ 6.40 05-01-18 2,137,340
3,000 Minneapolis Fairview Hospital Series 91B (MBIA Insured)................ 6.50 01-01-11 3,242,670
2,750 Minneapolis Fairview Hospital Series 93A (MBIA Insured)................ 5.25 11-15-19 2,698,465
2,370 Minneapolis HRA HealthOne (MBIA Insured)............................... 7.40 08-15-11 2,645,513
3,625 Minneapolis/Saint Paul HRA Childrens Hospital (FSA Insured)............ 5.70 08-15-16 3,709,209
11,690 Minneapolis/Saint Paul Healthspan Series 93A (AMBAC Insured)........... 5.00 11-15-13 11,248,235
3,100 Robbinsdale North Memorial Medical (AMBAC Insured)..................... 5.45 05-15-13 3,103,844
5,400 Robbinsdale North Memorial Medical (AMBAC Insured)..................... 5.50 05-15-23 5,392,008
500 St. Cloud Hospital Facility Revenue (AMBAC Insured).................... 7.00 07-01-07 556,660
500 St. Cloud Hospital Facility Revenue (AMBAC Insured).................... 6.75 07-01-15 542,900
5,000 St. Louis Park Methodist Hospital (AMBAC Insured)...................... 5.20 07-01-23 4,816,050
1,200 St. Paul Ramsey Medical (AMBAC Insured)................................ 5.50 05-15-13 1,205,400
------------
68,196,489
------------
HOUSING (10.1%):
------------------------------------------------------------------------------------------------------
3,257 Chaska Waters Edge Multifamily Revenue (GNMA Insured).................. 7.30 01-20-30 3,607,128
6,450 Dakota County HRA Single Family Mortgage Revenue (FNMA Insured)........ 6.70 10-01-17 6,816,231
200 Dakota, Washington and Stearns Counties HRA Single Family Mortgage Revenue
(MBIA Insured)...................................................... 7.85(e) 12-01-30 213,250
5,950 Minnesota Housing Finance Agency Single Family Housing Rental
(AMBAC Insured)...................................................... 5.85 08-01-11 6,079,591
2,600 Minnesota Housing Finance Agency Single Family Housing Rental
(AMBAC Insured)...................................................... 5.95 02-01-15 2,645,214
400 Minnesota Housing Finance Agency Single Family Housing (MBIA Insured)..9.00(e)(h) 08-01-18 424,880
185 Minnesota Housing Finance Agency Single Family Mortgage Revenue
(MBIA Insured)......................................................8.50(e)(h) 07-01-19 196,670
345 Minnesota Housing Finance Agency Single Family Mortgage Revenue
(AMBAC Insured)..................................................... 7.95(e) 07-01-22 375,439
1,435 Minnesota Housing Finance Agency Single Family Mortgage Revenue
(AMBAC Insured)..................................................... 7.45(e) 07-01-22 1,540,472
510 Minnesota Housing Finance Agency Single Family Mortgage Revenue
(AMBAC Insured)..................................................... 7.05(e) 07-01-22 539,728
95 Minneapolis and St. Paul Housing Finance Board Housing Project Phase V
(GNMA Collateral) .................................................. 8.88(e) 11-01-18 102,157
150 Minneapolis and St. Paul Housing Finance Board Housing Project Phase IX
(GNMA Collateral)................................................... 8.30(e) 08-01-21 160,461
1,360 Minneapolis and St. Paul Housing Finance Board Housing Project Phase IX
(GNMA Collateral)................................................... 7.25(e) 08-01-21 1,429,700
910 Minneapolis and St. Paul Housing Finance Board Housing Project Phase IX
(GNMA Collateral)................................................... 7.30(e) 08-01-31 956,638
195 Minneapolis and St. Paul Housing Finance Board Single Family Mortgage Revenue
(GNMA Backed)....................................................... 8.13(e) 12-01-14 210,980
4,000 St. Paul HRA Multifamily Housing (FNMA Backed)......................... 6.60 10-01-12 4,230,600
2,410 South St. Paul HRA Single Family Mortgage Series 1993 (FNMA Insured)... 5.75 09-01-20 2,419,327
------------
31,948,466
------------
EDUCATION (0.4%):
------------------------------------------------------------------------------------------------------
1,290 Minnesota State University Board Revenue Ref 93C (MBIA Insured)........ 5.50 06-30-12 1,308,150
------------
OTHER REVENUE (0.7%):
------------------------------------------------------------------------------------------------------
2,000 Stearns County HRA Courthouse Project (AMBAC Insured).................. 7.00 02-01-11 2,155,000
------------
TOTAL MINNESOTA MUNICIPAL BONDS (cost: $289,407,654) 307,889,272
------------
SHORT-TERM SECURITIES (0.8%):
------------------------------------------------------------------------------------------------------
2,635 Federated Minnesota Municipal Cash Trust (cost: $2,635,000)............4.49 (b) 2,635,000
------------
TOTAL INVESTMENT IN SECURITIES (cost: $292,042,654) (f) $310,524,272
============
See accompanying notes to investments in securities.
VOYAGEUR MINNESOTA LIMITED TERM TAX FREE FUND INVESTMENTS IN SECURITIES DECEMBER 31, 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 (99.7%):
ESCROWED WITH U.S. GOVERNMENT BONDS (54.9%):
------------------------------------------------------------------------------------------------------
$1,205 Austin Independent School District #492 (MBIA Insured)................. 6.88% 02-01-01 $1,334,658
3,015 Braham Independent School District #314 (AMBAC Insured)................ 6.30 02-01-01 3,271,456
250 Duluth EDA St. Mary's.................................................. 7.80 02-15-97 260,205
250 Duluth EDA St. Mary's.................................................. 7.90 02-15-98 269,137
150 Duluth EDA St. Mary's.................................................. 7.90 02-15-99 165,894
615 Eden Valley Watkins Independent School District #463 (FSA Insured)..... 6.60 02-01-02 680,891
250 Eden Valley Watkins Independent School District #463 (FSA Insured)..... 6.55 02-01-02 276,128
2,570 Mankato Independent School District #77 G.O. (FSA Insured)............. 6.35 02-01-02 2,801,634
1,000 Minneapolis Hennepin Avenue Series C G.O............................... 6.70 03-01-02 1,121,100
1,410 Minneapolis Hennepin Avenue Series C G.O............................... 6.70 03-01-02(c)1,580,751
400 Minneapolis/Saint Paul HealthOne Series C.............................. 7.45 08-15-99 442,720
325 Minneapolis/Saint Paul HealthOne Series B.............................. 7.55 08-15-00 368,323
4,000 Minnesota State........................................................ 6.25 08-01-02 4,411,160
800 Olmsted County......................................................... 6.85 02-01-01 892,864
900 Olmsted County......................................................... 6.90 02-01-01 1,006,506
950 Olmsted County Solid Waste Recovery.................................... 6.95 02-01-01 1,064,570
1,500 Rush City Independent School District #139 (AMBAC Insured)............. 6.30 02-01-01 1,627,590
5,805 St. Cloud Hospital (AMBAC Insured)..................................... 7.00 07-01-01 6,647,073
215 St. James IDR Tony Downs Food Company Project.......................... 8.00 08-01-96 219,810
3,500 St. Louis Park Methodist Hospital (AMBAC Insured)...................... 7.25 07-01-00 3,978,555
3,000 Waconia Independent School District #110 (FGIC Insured)................ 6.40 02-01-00 3,218,010
4,000 Washington County Jail (MBIA Insured).................................. 7.00 02-01-02 4,523,960
------------
40,162,995
------------
GENERAL OBLIGATION (13.1%):
------------------------------------------------------------------------------------------------------
1,000 Eden Prairie Independent School District #272.......................... 5.25 02-01-02 1,038,370
500 Edina Independent School District #273................................. 5.40 02-01-03 522,860
1,000 Hopkins Independent School District #270 (MBIA Insured)................ 4.80 02-01-03 1,015,370
3,260 Lakeville Independent School District Zero Coupon......................5.22(g)(1) 02-01-06 1,974,354
810 North Branch Independent School District #138 Series A (FGIC Insured).. 5.20 02-01-07 824,628
1,425 Osseo Independent School District #279 (MBIA Insured).................. 4.60 02-01-04 1,423,048
1,195 Spring Lake Park Independent School District #16 (MBIA Insured)........ 5.13 02-01-04 1,233,300
1,255 Spring Lake Park Independent School District #16 (MBIA Insured)........ 5.13 02-01-05 1,288,759
225 Western Lake Superior Sanitation District.............................. 6.10 10-01-00 234,936
------------
9,555,625
------------
UTILITIES (6.3%):
------------------------------------------------------------------------------------------------------
2,500 Eveleth IDR for Minnesota Power & Light Company........................ 6.13 01-01-04 2,659,725
860 Northern Minnesota Municipal Power Agency.............................. 7.20 01-01-99 928,809
1,000 Southern Minnesota Municipal Power Agency Rev (FGIC Insured)........... 5.00 01-01-08 989,340
------------
4,577,874
------------
INDUSTRIAL (12.1%):
------------------------------------------------------------------------------------------------------
260 Duluth Convention Center............................................... 5.75 12-01-97 263,838
275 Duluth Convention Center............................................... 6.00 12-01-98 282,103
1,250 Duluth Convention Center............................................... 7.00 12-01-03 1,365,500
250 Duluth Convention Center............................................... 7.30 12-01-06 277,680
1,720 Minnesota Public Facilities Authority Revenue Series A................. 6.55 03-01-03 1,905,399
830 Minnesota Public Facilities Authority Water Pollution Control.......... 6.10 03-01-02 903,936
1,175 Olmsted County Resource Recovery Series A.............................. 5.90 02-01-05 1,244,266
300 St. Paul HRA Minnesota Public Radio, First Bank Letter of Credit....... 6.40 06-01-98 314,175
100 St. Paul HRA Minnesota Public Radio, First Bank Letter of Credit....... 6.60 06-01-99 106,986
2,000 St. Paul Minnesota CDR Fort Rd Med (Asset Guaranty).................... 7.50 09-01-02 2,177,800
------------
8,841,683
------------
HEALTH CARE (0.8%):
------------------------------------------------------------------------------------------------------
500 St. Cloud Hospital Facility Revenue (AMBAC Insured).................... 7.00 07-01-07 556,660
------------
HOUSING (7.7%):
------------------------------------------------------------------------------------------------------
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 05-01-98(c)2,565,150
115 Eden Prairie Multifamily Mortgage Revenue - Windslope Project.......... 5.80 11-01-96 116,392
215 Mankato Rental Housing Revenue Stadium Housing Project (Asset Guaranty) 7.75 10-01-97 (c) 219,537
980 Minnesota HFA Multifamily Mortgage Revenue Series B.................... 6.90 02-01-04 1,048,237
70 Minnesota HFA Single Family Mortgage Revenue........................... 6.30 01-01-99 73,390
1,030 Minnesota HFA State Assisted Home Improvement (AMBAC Insured).......... 5.00 02-01-04 1,040,866
------------
5,655,172
------------
EDUCATION (4.1%):
------------------------------------------------------------------------------------------------------
3,000 Regents of University of Minnesota..................................... 4.80 08-15-03 3,033,750
------------
CERTIFICATES OF PARTICIPATION (0.1%):
------------------------------------------------------------------------------------------------------
62 Red Wing Pottery Project...............................................7.75(k) 12-15-97 62,474
------------
OTHER REVENUE (0.6%):
------------------------------------------------------------------------------------------------------
190 Minneapolis CDA Limited Tax Revenue - Common Bond Fund................. 7.75 06-01-96 192,575
225 Minneapolis CDA Limited Tax Revenue - Common Bond Fund................. 7.90 06-01-97 235,498
------------
428,073
------------
TOTAL MINNESOTA MUNICIPAL BONDS (cost: $69,374,352) 72,874,306
-----------
SHORT-TERM SECURITIES (1.3%):
------------------------------------------------------------------------------------------------------
926 Federated Minnesota Municipal Cash Trust (cost: $926,000).............. 4.49(b) 926,000
------------
TOTAL INVESTMENT IN SECURITIES (cost: $70,300,352) (f) $73,800,306
===========
See accompanying notes to investments in securities.
</TABLE>
VOYAGEUR MINNESOTA TAX FREE FUND
VOYAGEUR MINNESOTA INSURED FUND
VOYAGEUR MINNESOTA LIMITED TERM TAX FREE FUND
NOTES TO INVESTMENTS IN SECURITIES
- -------------------------------------------------------------------------------
(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 December 31, 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 (unaudited) 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..................... 65% 11% 16% 2% 6% 100%
Minnesota Insured Fund...................... 100% -- -- -- -- 100%
Minnesota Limited Term Tax Free Fund........ 70% 13% 6% 7% 4% 100%
</TABLE>
(e) These securities are subject to the Alternative Minimum Tax. The aggregate
market value of securities subject to the Alternative Minimum Tax is equal
to 12.9% of total net assets for Minnesota Insured Fund.
(f) Also represents the cost of securities for federal income tax purposes for
Minnesota Tax Free Fund and Minnesota Limited Term Tax Free Fund. The cost
of securities for federal income tax purposes for Minnesota Insured Fund is
$292,486,153. The aggregate gross unrealized appreciation and depreciation
in securities based on these costs are as follows:
<TABLE>
<CAPTION>
GROSS GROSS NET
UNREALIZED UNREALIZED UNREALIZED
APPRECIATION DEPRECIATION APPRECIATION
------------ ------------ ------------
<S> <C> <C> <C>
Minnesota Tax Free Fund..................... $29,615,668 $(334,792) $29,280,876
Minnesota Insured Tax Free Fund............. 18,074,701 (36,582) 18,038,119
Minnesota Limited Term Tax Free Fund........ 3,502,797 (2,843) 3,499,954
</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 December 31, 1995 the principal amount of issue in default amounted to
$1,000,000 for Minnesota Tax Free Fund. However, this issue is in default
as to the timely receipt of principal but is 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 of
original par of West St. Paul Commercial Mortgage (K-Mart) 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 are considered
illiquid and are equal to 0.9% of total 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 of
original par of Red Wing Pottery Project with a par value and cost basis of
$64,474 as of December 31, 1995. This private placement represents all of
the restricted illiquid securities owned by the Fund and is equal to 0.1%
of total net assets.
(l) At December 31, 1995, the cost of securities purchased on a when issued
basis was $2,913,535 for Minnesota Tax Free Fund and $1,939,779 for
Minnesota Limited Term Tax Free Fund.
(m) This security, representing 1.06% of total net assets, has been identified
by portfolio management as an illiquid security.
FEDERAL INCOME TAX INFORMATION
- --------------------------------------------------------------------------------
Information for federal income tax purposes is presented as an aid to
shareholders in reporting the dividend distributions for the year ended December
31, 1995 shown below. Exempt interest dividends are exempt from federal income
tax and should not be included in shareholder's gross income, but need to be
reported on the income tax return for informational purposes. Each shareholder
should consult a tax adviser about reporting this income for state and local
purposes. In January 1996, the Fund separately provided each shareholder with
tax information for calendar year 1995.
<TABLE>
<CAPTION>
VOYAGEUR MINNESOTA TAX FREE FUND
-------------------------------------------------
PER CLASS PER CLASS PER CLASS
A SHARE B SHARE C SHARE
------- ------- -------
YEAR PERIOD FROM YEAR
ENDED MARCH 11, 1995 ENDED
DECEMBER 31, TO DECEMBER 31, DECEMBER 31,
1995 1995 1995
------------ --------------- ------------
<S> <C> <C> <C>
Net investment income distributions (none qualifying for
corporate dividend received deduction)................. $.6387 $.4426 $.5485
====== ====== ======
</TABLE>
<TABLE>
<CAPTION>
VOYAGEUR MINNESOTA INSURED FUND
----------------------------------------------------
PER CLASS PER CLASS PER CLASS
A SHARE B SHARE C SHARE
------- ------- -------
YEAR PERIOD FROM YEAR
ENDED MARCH 7, 1995 ENDED
DECEMBER 31, TO DECEMBER 31, DECEMBER 31,
1995 1995 1995
------------ --------------- ------------
<S> <C> <C> <C>
Net investment income distributions (none qualifying for
corporate dividend received deduction)................. $.5314 $.3757 $.4517
====== ====== ======
</TABLE>
<TABLE>
<CAPTION>
VOYAGEUR MINNESOTA LIMITED TERM TAX FREE FUND
------------------------------------------------------
PER CLASS PER CLASS PER CLASS
A SHARE B SHARE C SHARE
------- ------- -------
YEAR PERIOD FROM YEAR
ENDED AUGUST 15, 1995 ENDED
DECEMBER 31, TO DECEMBER 31, DECEMBER 31,
1995 1995 1995
------------ --------------- ------------
<S> <C> <C> <C>
Net investment income distributions (none qualifying for
corporate dividend received deduction)................. $.5053 $.1652 $.4239
====== ====== ======
</TABLE>
For federal income tax purposes, 99.98%, 99.91% and 100.00% of the above net
investment income distributions for Voyageur Minnesota Tax Free Fund, Voyageur
Minnesota Insured Fund and Voyageur Minnesota Limited Term Tax Free Fund,
respectively, were derived from interest on securities exempt from federal
income tax.
