<PAGE>
VOYAGEUR INTERMEDIATE TAX FREE FUNDS, INC.
Delaware-Voyageur Tax-Free Minnesota Intermediate Fund
VOYAGEUR MUTUAL FUNDS, INC.
Delaware-Voyageur Tax-Free Arizona Fund
Delaware-Voyageur Tax-Free California Fund
Delaware-Voyageur Tax-Free Idaho Fund
Delaware-Voyageur Tax-Free Iowa Fund
Delaware-Voyageur Tax-Free New York Fund
Delaware-Voyageur Tax-Free Wisconsin Fund
VOYAGEUR MUTUAL FUNDS II, INC.
Delaware-Voyageur Tax-Free Colorado Fund
VOYAGEUR TAX FREE FUNDS, INC.
Delaware-Voyageur Tax-Free Minnesota Fund
Delaware-Voyageur Tax-Free North Dakota Fund
Supplement to the current Prospectus dated December 29, 1998
(as revised December 30, 1998)
At recently held meetings, shareholders of the investment companies
listed above (each a "Company") approved a number of changes relating to the
Funds listed above.
Reclassification of Investment Objectives
Shareholders of each of the Funds listed above approved the
reclassification of their Fund's investment objective from "fundamental" to
"non-fundamental."
Change in the Fund's Fundamental Policy Concerning Diversification of
Investments
Shareholders of each of the Delaware-Voyageur Tax-Free Minnesota
Intermediate, Delaware-Voyageur Tax-Free Colorado and Delaware-Voyageur Tax-Free
Minnesota Funds approved a proposal to change their Fund's diversification
status from "diversified" to "non-diversified." This means that the Manager has
the flexibility to invest as much as 50% of a Fund's assets in as few as two
issuers provided no single issuer accounts for more than 25% of the portfolio.
The remaining 50% of the portfolio must be diversified so that no more than 5%
of the Fund's assets is invested in the securities of a single issuer. Each Fund
may invest without limitation in U.S. government and government agency
securities backed by the U.S. government, its agencies or instrumentalities.
Because a Fund may invest its assets in fewer issuers, the value of Fund shares
may increase or decrease more rapidly than if a Fund were fully diversified. If
a Fund were to invest more than 5% of its assets in a single issuer, such Fund
would be affected more than a fully-diversified Fund in the event that issuer
encountered difficulties in satisfying financial obligations. Management
suggested the change in order to provide the Funds with greater flexibility in
locating viable investments.
Investment Management Fees
Shareholders also approved a new Investment Management Agreement
between each Company and Delaware Management Company for each Fund listed above.
Under the new Investment Management Agreements, each Fund (except
Delaware-Voyageur Minnesota Intermediate Fund) pays the Manager an annual fee
equal to 0.55% on the first $500 million, 0.50% on the next $500 million, 0.45%
on the next $1.5 billion, and 0.425% on assets over $2.5 billion (all calculated
as a percentage of the Fund's average daily net assets). Under the new
Investment Management Agreement, the Delaware-Voyageur Minnesota Intermediate
Fund pays the Manager an annual fee equal to 0.50% on the first $500 million,
0.475% on the next $500 million, 0.45% on the next $1.5 billion, and 0.425% on
assets over $2.5 billion (all calculated as a percentage of the Fund's average
daily net assets).
With the exception of the Delaware-Voyageur Tax-Free Arizona Fund, the
new management fee for each Fund became effective on April 15, 1999. The new
management fee for the Arizona Fund became effective on April 1, 1999.
In accordance with the new management fees, the following revises the
fee table and expense example appearing under Summary of Expenses for each Fund
on pages 4-9:
<PAGE>
SUMMARY OF EXPENSES
<TABLE>
<CAPTION>
Delaware-Voyageur Annual Fund Operating Expenses Total Fund Management
Funds (as a Percentage of Average Net Assets) Operating Fees Without
After Fee Waivers and Payment Arrangements Expenses Voluntary
Without Waiver and
Voluntary Payment
Waiver and
Payment
----------------------------------------------------------------
Management Fee 12b-1 Fee(7) Other Expenses Total Fund
Operating
Expenses
- ------------------- ---------------- --------------- --------------- --------------- --------------- ----------------
<S> <C> <C> <C> <C> <C> <C> <C>
Tax-Free Arizona
Class A 0.03% 0.25% 0.32% 0.60%(5) 1.12% 0.55%
Class B 0.03 1.00 0.32 1.35(5) 1.86 0.55
Class C 0.03 1.00 0.32 1.35(5) 1.86 0.55
Tax-Free
California
Class A 0.00% 0.25% 0.10% 0.35%(5) 1.12% 0.55%
Class B 0.00 1.00 0.10 1.10(5) 1.87 0.55
Class C 0.00 1.00 0.10 1.10(5) 1.87 0.55
Tax-Free Colorado
Class A 0.55% 0.25% 0.17% 0.97%(6) 0.97% 0.55%
Class B 0.55 1.00 0.17 1.72(6) 1.72 0.55
Class C 0.55 1.00 0.17 1.72(6) 1.72 0.55
Tax-Free Idaho
Class A 0.48% 0.25% 0.27% 1.00%(5) 1.07% 0.55%
Class B 0.48 1.00 0.27 1.75(5) 1.82 0.55
Class C 0.48 1.00 0.27 1.75(5) 1.82 0.55
Tax-Free Iowa
Class A 0.44% 0.25% 0.31% 1.00%(5) 1.11% 0.55%
Class B 0.44 1.00 0.31 1.75(5) 1.86 0.55
Class C 0.44 1.00 0.31 1.75(5) 1.86 0.55
Tax-Free Minnesota
Class A 0.50% 0.25% 0.25% 1.00%(5) 1.05% 0.55%
Class B 0.50 1.00 0.25 1.75(5) 1.80 0.55
Class C 0.50 1.00 0.25 1.75(5) 1.80 0.55
Minnesota
Intermediate
Class A 0.50% 0.15% 0.25% 0.90%(6) 0.90% 0.50%
Class B 0.50 1.00 0.25 1.75(6) 1.75 0.50
Class C 0.50 1.00 0.25 1.75(6) 1.75 0.50
Tax-Free New York
Class A 0.00% 0.25% 0.25% 0.50%(5) 1.20% 0.55%
Class B 0.00 1.00 0.25 1.25(5) 1.95 0.55
Class C 0.00 1.00 0.25 1.25(5) 1.95 0.55
Tax-Free North Dakota
Class A 0.35% 0.25% 0.40% 1.00%(5) 1.20% 0.55%
Class B 0.35 1.00 0.40 1.75(5) 1.95 0.55
Class C 0.35 1.00 0.40 1.75(5) 1.95 0.55
Tax-Free Wisconsin
Class A 0.46% 0.25% 0.29% 1.00%(5) 1.09% 0.55%
Class B 0.46 1.00 0.29 1.75(5) 1.84 0.55
Class C 0.46 1.00 0.29 1.75(5) 1.84 0.55
</TABLE>
<PAGE>
- -------------------
5 The Manager has elected voluntarily to waive that portion, if any, of the
annual management fees payable by a Fund and to pay that Fund's expenses to
the extent necessary to ensure that a Fund's total operating expenses
(exclusive of taxes, interest expense, brokerage fees and commissions) do
not exceed, on an annualized basis, the amounts noted above corresponding to
the caption "Total Fund Operating Expenses" through June 30, 1999. The
Annual Operating Expenses for each Fund have been restated using the current
fees and operating expenses that would have been applicable had they been in
effect during the last fiscal year. The Manager may waive any or all of its
fee and may pay certain expenses of each Fund from time to time. See
Expenses under Management of the Funds in the Prospectus for a discussion of
the waivers.
6 The Manager has elected to waive that portion, if any, of the annual
management fees payable by the Fund and to pay the Fund's expenses to the
extent necessary to ensure that the Fund's total operating expenses
(exclusive of 12b-1 Plan Expenses, taxes, interest, expenses, brokerage fees
and commissions) do not exceed, on an annualized basis, 0.75% of the average
daily net assets of the Fund through June 30, 1999. The Annual Operating
Expenses for each Fund have been restated using the current fees and
operating expenses that would have been applicable had they been in effect
during the last fiscal year. The Manager may waive any or all of its fee and
may pay certain expenses of each Fund from time to time. See Expenses under
Management of the Funds in the Prospectus for a discussion of the waivers.
7 The annual 12b-1 Plan Expenses for Class A Shares of the Minnesota
Intermediate Fund has been set at 0.15% of the average daily net assets of
such Class and such expenses for Class A shares of each of the other Funds
has been set at 0.25% of the average daily net assets of such Class. The
maximum annual 12b-1 Plan expenses permitted under the 12b-1 Plan for Class
A Shares are 0.25% of the average daily net assets of such Class. Long-term
shareholders may pay more than the economic equivalent of the maximum
front-end sales charges permitted by the rules of the National Association
of Securities Dealers, Inc. ("NASD"). See Distribution (12b-1) and Service
under Management of the Funds in the Prospectus.
<PAGE>
The following revises information under the example of expenses for
each Fund on pages 8-9:
<TABLE>
<CAPTION>
Assuming Redemption Assuming No Redemption
1 Year 3 Years 5 Years 10 Years 1 Year 3 Years 5 Years 10 Years
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Tax-Free Arizona ....... $43(1) $ 56 $ 70 $110 $ 43 $ 56 $ 70 $110
Class A ............ 54 73 94 142(2) 14 43 74 142(2)
Class B ............ 24 43 74 162 14 43 74 162
Class C
Tax-Free California
Class A ............ 41(1) 48 56 80 41 48 56 80
Class B ............ 51 65 81 113(2) 11 35 61 113(2)
Class C ............ 21 35 61 134 11 35 61 134
Tax-Free Colorado
Class A ............ 47(1) 67 89 152 47 67 89 152
Class B ............ 57 84 113 183(2) 17 54 93 183(2)
Class C ............ 27 54 93 203 17 54 93 203
Tax-Free Idaho
Class A ............ 47(1) 68 91 155 47 68 91 155
Class B ............ 58 85 115 186(2) 18 55 95 186(2)
Class C ............ 28 55 95 206 18 55 95 206
Tax-Free Iowa
Class A ............ 47(1) 68 91 155 47 68 91 155
Class B ............ 58 85 115 186(2) 18 55 95 186(2)
Class C ............ 28 55 95 206 18 55 95 206
Tax-Free Minnesota
Class A ............ 47(1) 68 91 155 47 68 91 155
Class B ............ 58 85 115 186(2) 18 55 95 186(2)
Class C ............ 28 55 95 206 18 55 95 206
Minnesota
Intermediate
Class A .......... 36(1) 55 76 135 36 55 76 136
Class B .......... 38 65 95 153(3) 18 55 95 153(3)
Class C .......... 28 55 95 206 18 55 95 206
Tax-Free New York
Class A ............ 42(1) 53 64 98 42 53 64 98
Class B ............ 53 70 89 130(2) 13 40 69 130(2)
Class C ............ 23 40 69 151 13 40 69 151
Tax-Free North Dakota
Class A ............ 47(1) 68 91 155 47 68 91 155
Class B ............ 58 85 115 186(2) 18 55 95 186(2)
Class C ............ 28 55 95 206 18 55 95 206
Tax-Free Wisconsin
Class a ............ 47(1) 68 91 155 47 68 91 155
Class B ............ 58 85 115 186(2) 18 55 95 186(2)
Class C ............ 28 55 95 206 18 55 95 206
</TABLE>
(1) Generally, no redemption charge is assessed upon redemption of Class A
Shares. Under certain circumstances, however, a Limited CDSC or other CDSC,
which has not been reflected in this calculation, may be imposed on certain
redemptions. See Contingent Deferred Sales Charge for Certain Redemptions of
Class A Shares Purchased at Net Asset Value under Redemption and Exchange in
the Prospectus.
(2) At the end of approximately eight years after purchase, Class B Shares will
be automatically converted into Class A Shares of the Fund. The example
above assumes conversion of Class B Shares at the end of the eighth year.
However, the conversion may occur as late as three months after the eighth
anniversary of purchase, during which time the higher 12b-1 Plan fees
payable by Class B Shares will continue to be assessed. The ten-year expense
numbers for Class B Shares reflect the expenses of Class B Shares for years
one through eight and the expenses of Class A Shares for years nine and ten.
See Automatic Conversion of Class B Shares under Classes of Shares in the
Prospectus for a description of the automatic conversion feature.
(3) At the end of approximately five years after purchase, Class B Shares will
be automatically converted into Class A Shares of the relevant Fund. The
example above assumes conversion of Class B Shares at the end of the fifth
year. However, the conversion may occur as late as three months after the
fifth anniversary of purchase, during which time the higher 12b-1 Plan fees
payable by Class B Shares will continue to be assessed. The ten-year expense
numbers for Class B Shares reflect the expenses of Class B Shares for years
one through five and the expenses of Class A Shares for years six through
ten. See Automatic Conversion of Class B Shares under Classes of Shares in
the Prospectus for a description of the automatic conversion feature.
<PAGE>
Delaware-Voyageur U.S. Government Securities Fund
Class A / Class B/ Class C
Institutional
Supplement to the current Prospectus dated March 1, 1999
At a meeting held on April 13, 1999, shareholders of the Fund approved
a number of changes relating to the Delaware-Voyageur U.S. Government Securities
Fund ("U.S. Government Securities Fund").
Reclassification of Investment Objective
Shareholders of the U.S. Government Securities Fund approved a proposal
to reclassify the Fund's investment objective from "fundamental" to
"non-fundamental."
Investment Management Fees
Shareholders also approved a new Investment Management Agreement for
the U.S. Government Securities Fund between Voyageur Funds, Inc. and Delaware
Management Company. Under the new Investment Management Agreement, the U.S.
Government Securities Fund pays the manager an annual fee equal to 0.55% on the
first $500 million, 0.50% on the next $500 million, 0.45% on the next $1.5
billion, and 0.425% on assets over $2.5 billion (all calculated as a percentage
of the Fund's average daily net assets). Such approval notwithstanding, for the
period from May 1, 1999, through April 30 2001, the manager has elected
voluntarily to waive the management fee to which it would otherwise be entitled
under such Agreement to ensure that such fees do not exceed 0.50%
In accordance with the new management fee, the following replaces the
fee tables and expense examples currently found in the U.S. Government
Securities Fund's Prospectus on page 3:
<PAGE>
<TABLE>
<CAPTION>
- ------------------------------------ -------------- ------------- ------------------ -------------
Class A Class B Class C Institutional
- ------------------------------------ -------------- ------------- ------------------ -------------
<S> <C> <C> <C> <C>
Management fees4 0.55% 0.55% 0.55% 0.55%
Distribution and service (12b-1)
fees 0.25% 1.00% 1.00% 0.25%5
Other expenses 0.31% 0.31% 0.31% 0.31%
Total operating expenses(6) 1.11% 1.86% 1.86% 1.11%
- --------------------------------------- -------------- ------------- ------------------ -------------
Class A Class B(7) Class B(7) Class C Class C Institutional
(if redeemed) (if redeemed)
- --------------------------------------- -------------- ------------- ------------------ -------------
1 year $683 $189 $589 $189 $289 $113
3 years $811 $585 $885 $585 $585 $353
5 years $1,058 $1,006 $1,206 $1,006 $1,006 $612
10 years $1,762 $1,984 $1,984 $2,180 $2,180 $1,352
</TABLE>
4 The investment management fees payable by the Fund are currently capped at
0.50% from May 1, 1999 through April 30, 2001.
5 The distributor has agreed to waive 12b-1 plan fees for the Institutional
Class shares acquired by shareholders on or after March 1, 1998. As the
portion of assets attributable to Institutional Class shares acquired on or
after March 1, 1998 increases, and so long as the distributor's voluntary
waiver is in effect for those shares, this figure will decrease. See the
Statement of Additional Information for additional information.
6 The investment manager has agreed to waive fees and pay expenses for the
period January 1, 1998 through June 30, 1999 in order to prevent total
operating expenses (excluding any taxes, interest, brokerage fees,
extraordinary expenses and 12b-1 fees) from exceeding 0.85% of average daily
net assets. See the Statement of Additional Information for a further
discussion of expense caps.
7 The Class B example reflects the conversion of Class B shares to Class A
shares at the end of the eighth year. Information for the ninth and tenth
years reflects expenses of the Class A shares.
