<PAGE>
DELAWARE(SM)
INVESTMENTS
- ------------
Delaware Tax-Free Idaho Fund
Delaware Tax-Free Iowa Fund
Delaware Tax-Free Kansas Fund
Delaware Tax-Free Missouri Insured Fund
Delaware Montana Municipal Bond Fund
Delaware Tax-Free North Dakota Fund
Delaware Tax-Free Oregon Insured Fund
Delaware Tax-Free Wisconsin Fund
Tax-Exempt Income
[Tax-Exempt Income Artwork]
2000 SEMI-ANNUAL REPORT
<PAGE>
TABLE OF CONTENTS
- -----------------
Letter to Shareholders 1
Portfolio
Management Review 3
Performance Summary
Delaware Tax-Free
Idaho Fund 7
Delaware Tax-Free
Iowa Fund 8
Delaware Tax-Free
Kansas Fund 9
Delaware Tax-Free
Missouri Insured Fund 10
Delaware Montana
Municipal Bond Fund 11
Delaware Tax-Free
North Dakota Fund 12
Delaware Tax-Free
Oregon Fund 13
Delaware Tax-Free
Wisconsin Fund 15
Financial Statements
Statements
of Net Assets 14
Statement of Assets
and Liabilities 25
Statements of Operations 32
Statements of Changes
in Net Assets 33
Financial Highlights 35
Notes to Financial
Statements 57
<PAGE>
A TRADITION OF SOUND INVESTING SINCE 1929
- -----------------------------------------
A Commitment To Our Investors
Experienced
[] Our seasoned investment professionals average more than 15 years'
experience.
[] For over 70 years, we have managed money in a variety of investment styles
that have weathered a full range of economic and market environments. We
opened our first mutual fund in 1938.
Disciplined
[] We follow strict investment policies and clear buy/sell guidelines.
[] We strive to balance risk and reward in order to provide relatively
conservative investment alternatives within any given asset class.
Consistent
[] We believe consistent processes are the best way to seek consistent
investment performance.
[] Our commitment to style consistency has earned us the confidence of
discriminating institutional and individual investors to manage
approximately $47 billion in assets as of December 31, 1999.
Comprehensive
[] We offer more than 70 mutual funds in these asset classes.
o Large-cap equity o High-yield bonds
o Mid-cap equity o Investment grade bonds
o Small-cap equity o Municipal bonds (24 single-state funds)
o International equity o International fixed-income
o Balanced
[] Our funds are available through financial advisers who can offer you
individualized attention and valuable investment advice.
Funds are not FDIC insured and are not guaranteed. It is possible to lose the
principal amount invested.
(C)Delaware Distributors, L.P.
<PAGE>
Dear Shareholder
"WE BELIEVE
FIXED-INCOME
INVESTMENTS PLAY AN
IMPORTANT ROLE IN
WELL-BALANCED
PORTFOLIOS."
<PAGE>
March 22, 2000
Recap of Events - Economic activity in the United States continues to move along
ahead of expectations. An improving global economic outlook further enhances the
prospect of continued strong economic growth. During the last six months, U.S.
interest rates, as measured by the Treasury bond market, rose and Treasury bond
prices fell significantly. Interest rates rose for two reasons. First, there was
a perception that inflation would increase. Second, the Federal Reserve was
actively raising short-term interest rates. Each time Federal Reserve Chairman,
Alan Greenspan, addressed the media and spoke of restrictive monetary policy, it
tended to rattle the bond markets further.
The booming stock market, however, did heighten inflationary concerns during our
fiscal period. The Federal Reserve responded by following up their interest rate
increase on June 30, 1999, with four additional increases through March 21,
2000. As of this writing, the federal funds target rate on overnight loans
between banks stands at 6.0%, its highest level in five years. The Federal
Reserve's actions have been directed at slowing the economy and pre-empting
inflation before it takes root.
Average Total Returns
For Period Ended February 29, 2000 Six Months
- --------------------------------------------------------------------------------
Delaware Tax-Free Idaho Fund Class A -3.10%
- --------------------------------------------------------------------------------
Delaware Tax-Free Iowa Fund Class A -0.77%
- --------------------------------------------------------------------------------
Delaware Montana Municipal Bond Fund Class A +0.50%*
- --------------------------------------------------------------------------------
Delaware Tax-Free North Dakota Fund Class A -1.77%
- --------------------------------------------------------------------------------
Delaware Tax-Free Wisconsin Fund Class A -1.26%
- --------------------------------------------------------------------------------
Lipper Other States Municipal Debt Fund Average (75 funds) -1.28%
- --------------------------------------------------------------------------------
Delaware Tax-Free Kansas Fund Class A -1.50%
- --------------------------------------------------------------------------------
Lipper Kansas Municipal Debt Fund Average (13 funds) -1.43%
- --------------------------------------------------------------------------------
Delaware Tax-Free Missouri Insured Fund Class A -0.71%
- --------------------------------------------------------------------------------
Lipper Missouri Municipal Debt Fund Average (20 funds) -1.36%
- --------------------------------------------------------------------------------
Delaware Tax-Free Oregon Insured Fund Class A -1.20%
- --------------------------------------------------------------------------------
Lipper Oregon Municipal Debt Fund Average (25 funds) -1.32%
Lehman Brothers Municipal Bond Index -0.24%
Lehman Brothers Insured Municipal Bond Index -0.21%
- --------------------------------------------------------------------------------
All performance shown above is at net asset value and assumes reinvestment of
dividends and capital gains. Performance for all Fund classes can be found on
pages 7 through 14. The Lipper categories represent the average returns of
municipal bond funds with similar investment objectives tracked by Lipper
Analytical. (Source: Lipper Analytical Services, Inc.) The unmanaged Lehman
Brothers Indexes are composed of bonds with a variety of quality ratings from
many states. You cannot invest directly in an index. Past performance does not
guarantee future results.
*Since Fund's inception on November 2, 1999.
1
<PAGE>
"MUNICIPAL BONDS
WEATHERED THE
TURBULENCE IN THE
FIXED-INCOME ARENA
SOMEWHAT BETTER
THAN U.S. TREASURY
SECURITIES DURING THE
PAST SIX MONTHS."
[Tax-Exempt Income Artwork]
<PAGE>
Municipal bonds weathered the turbulence in the fixed-income arena somewhat
better than U.S. Treasury securities during the past six months. Municipal bond
yields steadily increased throughout this time period, but municipal bond prices
fluctuated less than U.S. Treasury securities (Source: Bloomberg). As of
February 29, 2000, the 30-year U.S. Treasury bond yield stood at 6.15%, while
30-year U.S. AAA-rated general obligation municipal bonds closed at 5.90%. For
investors in the 28% tax bracket, a 5.90% tax-free yield would be equivalent to
an 8.19% yield on a taxable investment, a yield that surpasses that of the
30-year Treasury bond.*
Though higher yields meant attractive income potential, municipal bonds in
general, like most fixed-income securities, lost value for the six months ending
February 29, 2000. Delaware's Midwest and Northwest funds were no exception --
all eight Funds were slightly down for the last six months. However, the
six-month total returns for five of our eight Funds outpaced the returns of
their respective peer group, as measured by Lipper Analytical. Please see the
Portfolio Management Review for a discussion of each Fund's performance.
Market Outlook - We believe fixed-income investments play an important role in
well-balanced portfolios, even as stocks continue to capture more attention and
a larger share of investors' assets. Looking forward, we believe bonds may
remain in the shadow of stocks as long as economic growth continues in 2000.
However, tax-exempt municipal bonds, which your Funds hold, remain popular with
investors for good reason. They offer a wide range of benefits, including:
[] Attractive current income that is free from federal, and in some cases,
state and local taxes;
[] A high likelihood that interest and principal payments will be made as
scheduled;
[] A wide range of choices to meet your investment objectives with regard to
investment quality, maturity, type of bond and geographical location.
We realize that the past six months have been difficult for fixed-income
investors. We applaud you for remaining committed to your investment plan and
thank you for your continued confidence in Delaware Investments.
Sincerely,
/s/ Wayne A. Stork /s/ David K. Downes
- --------------------- --------------------------------------
Wayne A. Stork David K. Downes
Chairman, President and Chief Executive Officer,
Delaware Investments Delaware Investments
Family of Funds Family of Funds
* The U.S. government does not guarantee principal and interest of municipal
bonds, unlike Treasuries. Municipal bonds have historically had annual default
rates of less than 2%.
2
<PAGE>
Elizabeth H. Howell
Senior Portfolio Manager
March 22, 2000
"BASED ON
VALUE MEASURES,
THE RELATIONSHIP
OF MUNICIPAL BONDS TO
TREASURY BONDS
VACILLATED THROUGHOUT
THE YEAR. IN OUR VIEW,
MUNICIPAL BONDS
OFFERED BETTER
RELATIVE VALUE FOR
MUCH OF THE TIME."
<PAGE>
PORTFOLIO MANAGEMENT REVIEW
- ---------------------------
The Funds' Results
Over the last six months, we have witnessed a combination of market events that
have pushed municipal bond yields higher and prices lower. Concerns related to
year 2000 computer issues helped reduce the amount of municipal bonds being
issued. Most municipalities issued bonds earlier in the year and sat out the end
of the year. In addition, investors' interest in municipal bonds was somewhat
weak compared to their intense attention to the equity markets.
In spite of the reduced supply of new bonds at year end, the total supply of
municipal bonds was ample and that gave us the opportunity to select bonds that
have solid credit ratings and the potential for future price appreciation. Based
on value measures, the relationship of municipal bonds to Treasury bonds
vacillated throughout the year. In our view, municipal bonds offered better
relative value for much of the time.
Portfolio Highlights
Delaware Tax-Free Idaho Fund
Delaware Tax-Free Idaho had a total return of -3.10% (for Class A shares at net
asset value with distributions reinvested) for the six months ended February 29,
2000. Despite a negative return, Delaware Tax-Free Idaho Fund maintained a
well-diversified portfolio, with the majority of the Fund's assets allocated to
high-quality investment grade issues. We complemented the portfolio's investment
grade holdings with well-researched unrated bonds to help boost the Fund's
income potential. In general, unrated bonds offer more income than comparably
rated bonds.
While Idaho's state economy relies to a certain extent on resource-based
industries such as timber, agriculture and minerals, a growing demand for
manufacturing jobs has helped increase diversity. Idaho has also been able to
attract several technology and software companies over the past decade, which
has helped to create new jobs and boost personal incomes. Overall, we believe, a
strong regional economy has strengthened the financial position of many Idaho
municipalities and your Fund should benefit from this strength in the future.
Delaware Tax-Free Iowa Fund
Delaware Tax-Free Iowa Fund had a total return of -0.77% (for Class A shares at
net asset value with distributions reinvested) for the six-month period ended
February 29, 2000. It preserved capital to a greater degree than the average
return of its peer funds as represented by the Lipper Other States Municipal
Debt Fund Average.
3
<PAGE>
[Tax-Exempt Income Artwork]
Historically, Iowa municipalities have issued relatively few bonds that are
exempt from both federal and state taxes. Nevertheless, all of the bonds held by
your Fund provide Iowa residents with a dual tax exemption. Some investors
subject to the alternative minimum tax may not benefit completely from this
strategy.
Over the past six months, increased revenue from legalized gambling has
bolstered Iowa's growing economy. In the coming months, we expect strong state
and national economic trends to benefit many of this state's municipalities to a
greater extent than they have during the past six months.
Delaware Tax-Free Kansas Fund
Delaware Tax-Free Kansas Fund provided a -1.50% total return (for Class A shares
at net asset value with distributions reinvested) as of February 29, 2000. This
nearly matched the return of the Lipper Kansas Municipal Debt Fund Average
(composed of 13 funds), which had a -1.43% total return for the same period.
The economy in Kansas, as in most other Midwestern states, is healthy
and growing. Falling demand for wheat overseas and declining commodity prices
may, however, begin to put pressure on the state's farming industry in the
coming six months. In our opinion, with budgets in excellent shape and tax
revenues rising at both the state and local level, this scenario shouldn't
strongly affect the financial situations of Kansas municipalities in the next
year.
Delaware Tax-Free Missouri Insured Fund
Your Fund returned -0.71% for the six months ended February 29, 2000 (for Class
A shares at net asset value with distributions reinvested). It preserved capital
to a higher degree than the average total return of other Missouri municipal
bond funds as tracked by the Lipper Missouri Municipal Debt Fund Average.
Delaware Tax-Free Missouri Insured Fund invested exclusively in insured bonds
rated AAA by Standard & Poor's. This is the highest bond credit rating
available.
Increased housing and commercial development activity is promoting relatively
rapid growth in Missouri cities, especially St. Louis and Kansas City. We expect
this growth to increase tax revenues, which would in turn strengthen the credit
quality of Missouri's municipalities.
4
<PAGE>
Delaware Montana Municipal Bond Fund
Delaware Montana Municipal Bond Fund provided a +0.50% total return (for Class A
shares at net asset value with distributions reinvested) since the Fund's
inception on November 2, 1999.
The economy in Montana, as in most other Midwestern states is healthy and
growing. Declining commodity prices did, however, put some pressure on the
state's farming industry in the last six months. In our opinion, with tax
revenues rising at both the state and local level, this scenario shouldn't
strongly affect the future financial situations of Montana municipalities.
Delaware Tax-Free North Dakota Fund
For the six months ended February 29, 2000, Delaware Tax-Free North Dakota Fund
provided a disppointing return of -1.77% (for Class A shares at net asset value
with distributions reinvested). Unfortunately, this return was slightly less
favorable than that of its peers, as represented by the Lipper Other States
Municipal Debt Fund Average.
Rebuilding projects in metropolitan areas such as Fargo and Grand Forks
following the 1997 Red River Valley floods created employment opportunities and
helped to boost local North Dakota economies. Yet unlike most other Midwestern
states, North Dakota's municipalities have not been able to accumulate
significant budget surpluses as of late. In the coming months, we will continue
to monitor the fiscal health of North Dakota's municipalities to ensure
acceptable credit quality for all of Delaware Tax-Free North Dakota Fund's
holdings.
Delaware Tax-Free Oregon Insured Fund
Delaware Tax-Free Oregon Insured Fund provided a total return of -1.20% for the
six months ended February 29, 2000 (for Class A shares at net asset value with
distributions reinvested). This return was slightly better than the -1.32%
average total return for the 25 other Oregon municipal bond funds tracked by
Lipper Analytical Services.
Delaware Tax-Free Oregon Insured Fund invested exclusively in bonds with AAA
ratings from Standard & Poor's. All of the bonds in the Fund's portfolio are
protected by municipal bond insurance, which guarantees the timely payment of
principal and interest. This does not, however, guarantee against price
volatility.
The Oregon economy continues to demonstrate economic development and
diversification. The Asian recession slowed economic growth in Oregon throughout
1998, but the state largely recovered in 1999, along with the rest of the
Northwest. In our opinion, the finances of most Oregon municipalities remain
strong and should support the credit quality of the Fund's holdings into 2000
and beyond.
5
<PAGE>
"REGARDLESS OF MARKET
CONDITIONS, MUNICIPAL
BOND FUNDS HAVE THE
POTENTIAL TO OFFER
VALUABLE ASSET
ALLOCATION BENEFITS
WITHOUT ADDING
TO YOUR TAXABLE
INVESTMENT
INCOME.*"
[Taxed-Exempt Income Artwork]
<PAGE>
Delaware Tax-Free Wisconsin Fund
Delaware Tax-Free Wisconsin Fund had a total return of -1.26% (for
Class A shares at net asset value with distributions reinvested) as of February
29, 2000. This return compared favorably to the -1.28% average total return
delivered by the Lipper Other States Municipal Debt Fund category.
Most of the bonds issued by Wisconsin municipalities are not exempt from state
income tax. Over the last six months, we sought to purchase those relatively
rare Wisconsin issues that offered dual exemption from both state and federal
income tax. We supplemented these holdings with territorial bonds issued by
Puerto Rico and the Virgin Islands. These bonds not only offered dual exemption
potential, but also provided an element of diversification for the Fund.
The Wisconsin economy continues to benefit from over a year of economic
expansion at the national level. We believe this points to a positive credit
outlook for the state's municipalities for the remainder of 2000.
Outlook
The U.S. seems to be the engine of growth for the entire world at this time. We
believe strong forward momentum for the U.S. economy is likely to result in
solid growth for the remainder of this year. We don't think this will create an
inflationary environment if labor productivity continues to increase.
The Federal Reserve has been on a path of increasing short-term interest rates.
There have been five one-quarter point increases in short-term interest rates
since June 1999. Clearly, the Federal Reserve's goal is to slow the pace of U.S.
economic climate to what it believes is a non-inflationary rate of growth.
We have seen some slowdown in the economy and the equity markets, as evidenced
by the recent drop in the Dow Jones Industrial Average, which is down -12.56%
for the six-month period ended February 29, 2000. We think longer term
bonds--including municipal bonds--could potentially increase in price if the
equity market remains subdued.
Regardless of market conditions, municipal bond funds have the potential to
offer valuable asset allocation benefits without adding to your taxable
investment income.* In our view, investors seeking to diversify their portfolios
with generally less volatile investments will continue to find attractive
opportunities in municipal bonds and municipal bond funds in the years to come.
* A portion of the income from tax-exempt funds may be subject to the
alternative minimum tax.
6
<PAGE>
FUND BASICS
- -----------
Fund Objective
This Fund seeks as high a level of current income exempt from federal income tax
and from Idaho state personal income tax, as is consistent with preservation of
capital.
Total Fund Assets
$50.5 million
Number of Holdings
59
Fund Start Date
January 4, 1995
Your Fund Manager
Elizabeth H. Howell joined Delaware Investments via its acquisition of Voyageur
Fund Managers in 1997. She previously held management positions at Windsor
Financial Group, Loomis Sayles and Eaton Vance Management. She holds a
bachelor's degree from Skidmore College, an MBA from Babson College and is a
member of the Twin Cities Securities Analysts Society.
NASDAQ Symbols
Class A VIDAX
Class B DVTIX
Class C DVICX
<PAGE>
DELAWARE TAX-FREE IDAHO FUND PERFORMANCE
- ----------------------------------------
Average Total Returns
Through February 29, 2000 Lifetime Five Years One Year
- --------------------------------------------------------------------------------
Class A (Est. 1/4/95)
Excluding Sales Charge +6.05% +5.04% -5.99%
Including Sales Charge +5.26% +4.24% -9.52%
- --------------------------------------------------------------------------------
Class B (Est. 3/16/95)
Excluding Sales Charge +4.29% -6.62%
Including Sales Charge +3.95% -10.21%
- --------------------------------------------------------------------------------
Class C (Est. 1/11/95)
Excluding Sales Charge +5.12% +4.24% -6.62%
Including Sales Charge +5.12% +4.24% -7.52%
- --------------------------------------------------------------------------------
Returns reflect reinvestment of distributions and any applicable sales charges
as noted below. Return and share value will fluctuate so that shares, when
redeemed, may be worth more or less than the original share price. Class B and C
results excluding sales charges assume either that contingent sales charges did
not apply or the investment was not redeemed. Past performance does not
guarantee future results.
Class A shares have a 3.75% maximum front-end sales charge and a 12b-1 fee.
Class B shares do not have a front-end sales charge, but are subject to a 1%
annual distribution and service fee. They are also subject to a contingent
deferred sales charge of up to 4% if redeemed before the end of the sixth year.
Class C shares have a 1% annual distribution and service fee. If shares are
redeemed within 12 months, a 1% contingent deferred sales charge applies.
An expense limitation was in effect for all classes of Delaware Tax-Free Idaho
Fund during the period. Performance would have been lower if the expense
limitation was not in effect.
Portfolio Characteristics
February 29, 2000
- ----------------------------------------------------------
Current 30-Day SEC Yield*
Before expense limitation 5.27%
After expense limitation 5.29%
- ----------------------------------------------------------
Average Effective Duration 9.1 years
- ----------------------------------------------------------
Average Effective Maturity** 15.3 years
- ----------------------------------------------------------
* For Class A shares measured according to Securities and Exchange Commission
(SEC) guidelines. Current 30-day SEC yield as of 2/29/00 for Class B and C
shares was 4.73% before the expense limitation and 4.75% after the
limitation. Duration is a common measure of a bond or bond fund's sensitivity
to interest rates.
** Average effective maturity is the average time remaining until scheduled
replacement by issuers of portfolio securities.
7
<PAGE>
FUND BASICS
- -----------
Fund Objective
This Fund seeks as high a level
of current income exempt from
federal income tax and from
Iowa state personal income tax,
as is consistent with
preservation of capital.
Total Fund Assets
$41.0 million
Number of Holdings
40
Fund Start Date
September 1, 1993
Your Fund Manager
Elizabeth H. Howell
NASDAQ Symbols
Class A VITFX
Class B DVFIX
Class C DVIFX
[Tax-Exempt Income Artwork]
<PAGE>
DELAWARE TAX-FREE IOWA FUND PERFORMANCE
- ---------------------------------------
Average Total Returns
Through February 29, 2000 Lifetime Five Years One Year
- --------------------------------------------------------------------------------
Class A (Est. 9/1/93)
Excluding Sales Charge +3.86% +5.40% -2.73%
Including Sales Charge +3.25% +4.61% -6.34%
- --------------------------------------------------------------------------------
Class B (Est. 3/24/95)
Excluding Sales Charge +4.43% -3.48%
Including Sales Charge +4.09% -7.20%
- --------------------------------------------------------------------------------
Class C (Est. 1/4/95)
Excluding Sales Charge +5.80% +4.56% -3.48%
Including Sales Charge +5.80% +4.56% -4.41%
- --------------------------------------------------------------------------------
Returns reflect reinvestment of distributions and any applicable sales charges
as noted below. Return and share value will fluctuate so that shares, when
redeemed, may be worth more or less than the original share price. Class B and C
results excluding sales charges assume either that contingent sales charges did
not apply or the investment was not redeemed. Past performance does not
guarantee future results.
Class A shares have a 3.75% maximum front-end sales charge and a 12b-1 fee.
Class B shares do not have a front-end sales charge, but are subject to a 1%
annual distribution and service fee. They are also subject to a contingent
deferred sales charge of up to 4% if redeemed before the end of the sixth year.
Class C shares have a 1% annual distribution and service fee. If shares are
redeemed within 12 months, a 1% contingent deferred sales charge applies.
An expense limitation was in effect for all classes of Delaware Tax-Free Iowa
Fund during the period. Performance would have been lower if the expense
limitation was not in effect.
Portfolio Characteristics
February 29, 2000
- ---------------------------------------------------
Current 30-Day SEC Yield*
Before expense limitation 4.37%
After expense limitation 4.55%
- ---------------------------------------------------
Average Effective Duration 7.5 years
- ---------------------------------------------------
Average Effective Maturity** 11.4 years
- ---------------------------------------------------
* For Class A shares measured according to Securities and Exchange Commission
(SEC) guidelines. Current 30-day SEC yield as of 2/29/00 for Class B and C
shares was 3.80% before the expense limitation and 3.98% after the
limitation. Duration is a common measure of a bond or bond fund's sensitivity
to interest rates.
** Average effective maturity is the average time remaining until scheduled
replacement by issuers of portfolio securities.
8
<PAGE>
FUND BASICS
- -----------
Fund Objective
This Fund seeks as high a level
of current income exempt from
federal income tax and from
Kansas state personal income
tax, as is consistent with
preservation of capital.
Total Fund Assets
$14.5 million
Number of Holdings
39
Fund Start Date
November 30, 1992
Your Fund Manager
Elizabeth H. Howell
NASDAQ Symbols
Class A VKSTX
Class B DVKBX
Class C DVKCX
<PAGE>
DELAWARE TAX-FREE KANSAS FUND PERFORMANCE
- -----------------------------------------
Average Total Returns
Through February 29, 2000 Lifetime Five Years One Year
- --------------------------------------------------------------------------------
Class A (Est. 11/30/92)
Excluding Sales Charge +5.70% +5.43% -3.83%
Including Sales Charge +5.15% +4.64% -7.47%
- --------------------------------------------------------------------------------
Class B (Est. 4/8/95)
Excluding Sales Charge +4.42% -4.46%
Including Sales Charge +4.08% -8.12%
- --------------------------------------------------------------------------------
Class C (Est. 4/12/95)
Excluding Sales Charge +4.37% -4.47%
Including Sales Charge +4.37% -5.38%
- --------------------------------------------------------------------------------
Returns reflect reinvestment of distributions and any applicable sales charges
as noted below. Return and share value will fluctuate so that shares, when
redeemed, may be worth more or less than the original share price. Class B and C
results excluding sales charges assume either that contingent sales charges did
not apply or the investment was not redeemed. Past performance does not
guarantee future results.
Class A shares have a 3.75% maximum front-end sales charge and a 12b-1 fee.
Class B shares do not have a front-end sales charge, but are subject to a 1%
annual distribution and service fee. They are also subject to a contingent
deferred sales charge of up to 4% if redeemed before the end of the sixth year.
Class C shares have a 1% annual distribution and service fee. If shares are
redeemed within 12 months, a 1% contingent deferred sales charge applies.
An expense limitation was in effect for all classes of Delaware Tax-Free Kansas
Fund during the period. Performance would have been lower if the expense
limitation was not in effect.
Portfolio Characteristics
February 29, 2000
- --------------------------------------------------
Current 30-Day SEC Yield*
Before expense limitation 4.80%
After expense limitation 5.06%
- --------------------------------------------------
Average Effective Duration 8.1 years
- --------------------------------------------------
Average Effective Maturity** 14.0 years
- --------------------------------------------------
* For Class A shares measured according to Securities and Exchange Commission
(SEC) guidelines. Current 30-day SEC yield as of 2/29/00 for Class B shares
was 4.24% before the expense limitation and 4.50% after the limitation. For
Class C shares, the yield was 4.25% before the expense limitation and 4.51%
after the limitation. Duration is a common measure of a bond or bond fund's
sensitivity to interest rates.
** Average effective maturity is the average time remaining until scheduled
replacement by issuers of portfolio securities.
9
<PAGE>
FUND BASICS
- -----------
Fund Objective
This Fund seeks as high a level
of current income exempt from
federal income tax and from
Missouri state personal income
tax, as is consistent with
preservation of capital.
Total Fund Assets
$49.7 million
Number of Holdings
40
Fund Start Date
November 2, 1992
Your Fund Manager
Elizabeth H. Howell
NASDAQ Symbols
Class A VMOIX
Class B DVTBX
Class C DVTCX
[Tax-Exempt Income Artwork]
<PAGE>
DELAWARE TAX-FREE
MISSOURI INSURED FUND PERFORMANCE
- ---------------------------------
Average Total Returns
Through February 29, 2000 Lifetime Five Years One Year
- --------------------------------------------------------------------------------
Class A (Est. 11/2/92)
Excluding Sales Charge +5.34% +5.26% -3.30%
Including Sales Charge +4.79% +4.47% -6.90%
- --------------------------------------------------------------------------------
Class B (Est. 3/12/94)
Excluding Sales Charge +3.95% +4.54% -4.03%
Including Sales Charge +3.82% +4.20% -7.72%
- --------------------------------------------------------------------------------
Class C (Est. 11/11/95)
Excluding Sales Charge +3.26% -3.93%
Including Sales Charge +3.26% -4.85%
- --------------------------------------------------------------------------------
Returns reflect reinvestment of distributions and any applicable sales charges
as noted below. Return and share value will fluctuate so that shares, when
redeemed, may be worth more or less than the original share price. Class B and C
results excluding sales charges assume either that contingent sales charges did
not apply or the investment was not redeemed. Past performance does not
guarantee future results.
Class A shares have a 3.75% maximum front-end sales charge and a 12b-1 fee.
Class B shares do not have a front-end sales charge, but are subject to a 1%
annual distribution and service fee. They are also subject to a contingent
deferred sales charge of up to 4% if redeemed before the end of the sixth year.
Class C shares have a 1% annual distribution and service fee. If shares are
redeemed within 12 months, a 1% contingent deferred sales charge applies.
Portfolio Characteristics
February 29, 2000
- -----------------------------------------------
Current 30-Day SEC Yield* 4.52%
- -----------------------------------------------
Average Effective Duration 7.0 years
- -----------------------------------------------
Average Effective Maturity** 9.5 years
- -----------------------------------------------
* For Class A shares measured according to Securities and Exchange Commission
(SEC) guidelines. Current 30-day SEC yield as of 2/29/00 for Class B and C
shares was 3.94%. Duration is a common measure of a bond or bond fund's
sensitivity to interest rates.
** Average effective maturity is the average time remaining until scheduled
replacement by issuers of portfolio securities.
10
<PAGE>
FUND BASICS
- -----------
Fund Objective
This Fund seeks as high a level
of current income exempt from
federal income tax and from
Montana state personal income
tax, as is consistent with
preservation of capital.
Total Fund Assets
$2.1 million
Number of Holdings
13
Fund Start Date
November 2, 1999
Your Fund Manager
Elizabeth H. Howell
NASDAQ Symbols
Class A DMTAX
Class B DMTBX
Class C DMTCX
<PAGE>
DELAWARE MONTANA
MUNICIPAL BOND FUND PERFORMANCE
- -------------------------------
Average Total Returns
Through February 29, 2000 Lifetime
- --------------------------------------------------------------------------------
Class A (Est. 11/2/99)
Excluding Sales Charge +0.50%
Including Sales Charge -3.20%
- --------------------------------------------------------------------------------
Class B (Est. 11/2/99)
Excluding Sales Charge +0.45%
Including Sales Charge -2.30%
- --------------------------------------------------------------------------------
Class C (Est. 11/2/99)
Excluding Sales Charge +0.45%
Including Sales Charge -0.55%
- --------------------------------------------------------------------------------
Returns reflect reinvestment of distributions and any applicable sales charges
as noted below. Return and share value will fluctuate so that shares, when
redeemed, may be worth more or less than the original share price. Class B and C
results excluding sales charges assume either that contingent sales charges did
not apply or the investment was not redeemed. Past performance does not
guarantee future results.
Class A shares have a 3.75% maximum front-end sales charge and a 12b-1 fee.
Class B shares do not have a front-end sales charge, but are subject to a 1%
annual distribution and service fee. They are also subject to a contingent
deferred sales charge of up to 4% if redeemed before the end of the sixth year.
Class C shares have a 1% annual distribution and service fee. If shares are
redeemed within 12 months, a 1% contingent deferred sales charge applies.
An expense limitation was in effect for all classes of Delaware Montana
Municipal Bond Fund during the period. Performance would have been lower if the
expense limitation was not in effect.
Portfolio Characteristics
February 29, 2000
- -----------------------------------------------
Current 30-Day SEC Yield*
Before expense limitation 3.73%
After expense limitation 4.31%
- -----------------------------------------------
Average Effective Duration 10.4 years
- -----------------------------------------------
Average Effective Maturity 19.2 years
- -----------------------------------------------
* For Class A shares measured according to Securities and Exchange Commission
(SEC) guidelines. Current 30-day SEC yield as of 2/29/00 for Class B shares
was 3.18% before the expense limitation and 3.79% after the limitation. For
Class C shares, the yield was 3.18% before the expense limitation and 3.78%
after the limitation. Duration is a common measure of a bond or bond fund's
sensitivity to interest rates.
11
<PAGE>
FUND BASICS
- -----------
Fund Objective
This Fund seeks as high a level
of current income exempt from
federal income tax and from
North Dakota state personal
income tax, as is consistent
with preservation of capital.
Total Fund Assets
$25.2 million
Number of Holdings
35
Fund Start Date
April 1, 1991
Your Fund Manager
Elizabeth H. Howell
NASDAQ Symbols
Class A VNDTX
Class B DVTDX
Class C DVFDX
[Tax-Exempt Income Artwork]
<PAGE>
DELAWARE TAX-FREE
NORTH DAKOTA FUND PERFORMANCE
- -----------------------------
Average Total Returns
Through February 29, 2000 Lifetime Five Years One Year
- --------------------------------------------------------------------------------
Class A (Est. 4/1/91)
Excluding Sales Charge +6.28% +5.14% -4.11%
Including Sales Charge +5.82% +4.35% -7.68%
- --------------------------------------------------------------------------------
Class B (Est. 5/10/94)
Excluding Sales Charge +4.97% +4.50% -4.81%
Including Sales Charge +4.84% +4.17% -8.46%
- --------------------------------------------------------------------------------
Class C (Est. 7/29/95)
Excluding Sales Charge +3.93% -4.74%
Including Sales Charge +3.93% -5.66%
- --------------------------------------------------------------------------------
Returns reflect reinvestment of distributions and any applicable sales charges
as noted below. Return and share value will fluctuate so that shares, when
redeemed, may be worth more or less than the original share price. Class B and C
results excluding sales charges assume either that contingent sales charges did
not apply or the investment was not redeemed. Past performance does not
guarantee future results.
Class A shares have a 3.75% maximum front-end sales charge and a 12b-1 fee.
Class B shares do not have a front-end sales charge, but are subject to a 1%
annual distribution and service fee. They are also subject to a contingent
deferred sales charge of up to 4% if redeemed before the end of the sixth year.
Class C shares have a 1% annual distribution and service fee. If shares are
redeemed within 12 months, a 1% contingent deferred sales charge applies.
Portfolio Characteristics
February 29, 2000
- -----------------------------------------------
Current 30-Day SEC Yield* 5.00%
- -----------------------------------------------
Average Effective Duration 7.1 years
- -----------------------------------------------
Average Effective Maturity** 11.6 years
- -----------------------------------------------
* For Class A shares measured according to Securities and Exchange Commission
(SEC) guidelines. Current 30-day SEC yield as of 2/29/00 for Class B and C
shares was 4.45%. Duration is a common measure of a bond or bond fund's
sensitivity to interest rates.
** Average effective maturity is the average time remaining until scheduled
replacement by issuers of portfolio securities.
12
<PAGE>
FUND BASICS
- -----------
Fund Objective
This Fund seeks as high a level
of current income exempt from
federal income tax and from
Oregon state personal income
tax, as is consistent with
preservation of capital.
Total Fund Assets
$32.3 million
Number of Holdings
38
Fund Start Date
August 1, 1993
Your Fund Manager
Elizabeth H. Howell
NASDAQ Symbols
Class A VORIX
Class B DVYBX
Class C VYCX
<PAGE>
DELAWARE TAX-FREE
OREGON INSURED FUND PERFORMANCE
- -------------------------------
Average Total Returns
Through February 29, 2000 Lifetime Five Years One Year
- --------------------------------------------------------------------------------
Class A (Est. 8/1/93)
Excluding Sales Charge +4.16% +4.94% -4.94%
Including Sales Charge +3.56% +4.13% -8.53%
- --------------------------------------------------------------------------------
Class B (Est. 3/12/94)
Excluding Sales Charge +3.63% +4.26% -5.65%
Including Sales Charge +3.50% +3.92% -9.28%
- --------------------------------------------------------------------------------
Class C (Est. 7/7/95)
Excluding Sales Charge +3.63% -5.65%
Including Sales Charge +3.63% -6.56%
- --------------------------------------------------------------------------------
Returns reflect reinvestment of distributions and any applicable sales charges
as noted below. Return and share value will fluctuate so that shares, when
redeemed, may be worth more or less than the original share price. Class B and C
results excluding sales charges assume either that contingent sales charges did
not apply or the investment was not redeemed. Past performance does not
guarantee future results.
Class A shares have a 3.75% maximum front-end sales charge and a 12b-1 fee.
Class B shares do not have a front-end sales charge, but are subject to a 1%
annual distribution and service fee. They are also subject to a contingent
deferred sales charge of up to 4% if redeemed before the end of the sixth year.
Class C shares have a 1% annual distribution and service fee. If shares are
redeemed within 12 months, a 1% contingent deferred sales charge applies.
An expense limitation was in effect for all classes of Delaware Tax-Free Oregon
Insured Fund during the period. Performance would have been lower if the expense
limitation was not in effect.
Portfolio Characteristics
February 29, 2000
- --------------------------------------------------
Current 30-Day SEC Yield*
Before expense limitation 4.54%
After expense limitation 4.70%
- --------------------------------------------------
Average Effective Duration 9.0 years
- --------------------------------------------------
Average Effective Maturity** 12.7 years
- --------------------------------------------------
* For Class A shares measured according to Securities and Exchange Commission
(SEC) guidelines. Current 30-day SEC yield as of 2/29/00 for Class B shares
was 3.98% before the expense limitation and 4.13% after the limitation. For
Class C shares, the yield was 3.97% before the expense limitation and 4.13%
after the expense limitation. Duration is a common measure of a bond or bond
fund's sensitivity to interest rates.
** Average effective maturity is the average time remaining until scheduled
replacement by issuers of portfolio securities.
13
<PAGE>
FUND BASICS
- -----------
Fund Objective
This Fund seeks as high a level
of current income exempt from
federal income tax and from
Wisconsin state personal income
tax, as is consistent with
preservation of capital.
Total Fund Assets
$33.4 million
Number of Holdings
44
Fund Start Date
September 1, 1993
Your Fund Manager
Elizabeth H. Howell
NASDAQ Symbols
Class A VWIFX
Class B DVTWX
Class C DVFWX
[Tax-Exempt Income Artwork]
<PAGE>
DELAWARE TAX-FREE
WISCONSIN FUND PERFORMANCE
- --------------------------
Average Total Returns
Through February 29, 2000 Lifetime Five Years One Year
- --------------------------------------------------------------------------------
Class A (Est. 9/1/93)
Excluding Sales Charge +3.66% +4.74% -3.87%
Including Sales Charge +3.06% +3.94% -7.46%
- --------------------------------------------------------------------------------
Class B (Est. 4/22/95)
Excluding Sales Charge +3.71% -4.48%
Including Sales Charge +3.35% -8.15%
- --------------------------------------------------------------------------------
Class C (Est. 3/28/95)
Excluding Sales Charge +3.80% -4.57%
Including Sales Charge +3.80% -5.49%
- --------------------------------------------------------------------------------
Returns reflect reinvestment of distributions and any applicable sales charges
as noted below. Return and share value will fluctuate so that shares, when
redeemed, may be worth more or less than the original share price. Class B and C
results excluding sales charges assume either that contingent sales charges did
not apply or the investment was not redeemed. Past performance does not
guarantee future results.
Class A shares have a 3.75% maximum front-end sales charge and a 12b-1 fee.
Class B shares do not have a front-end sales charge, but are subject to a 1%
annual distribution and service fee. They are also subject to a contingent
deferred sales charge of up to 4% if redeemed before the end of the sixth year.
Class C shares have a 1% annual distribution and service fee. If shares are
redeemed within 12 months, a 1% contingent deferred sales charge applies.
An expense limitation was in effect for all classes of Delaware Tax-Free
Wisconsin Fund during the period. Performance would have been lower if the
expense limitation was not in effect.
Portfolio Characteristics
February 29, 2000
- -----------------------------------------------
Current 30-Day SEC Yield*
Before expense limitation 4.53%
After expense limitation 4.68%
- -----------------------------------------------
Average Effective Duration 8.2 years
- -----------------------------------------------
Average Effective Maturity** 14.3 years
- -----------------------------------------------
* For Class A shares measured according to Securities and Exchange Commission
(SEC) guidelines. Current 30-day SEC yield as of 2/29/00 for Class B shares
was 3.96% before the expense limitation and 4.12% after the limitation. For
Class C shares, the yield was 3.94% before the expense limitation and 4.10%
after the limitation. Duration is a common measure of a bond or bond fund's
sensitivity to interest rates.
** Average effective maturity is the average time remaining until scheduled
replacement by issuers of portfolio securities.
14
<PAGE>
Statements of Net Assets
DELAWARE TAX-FREE IDAHO FUND
- ----------------------------
Principal Market
February 29, 2000 (Unaudited) Amount Value
- --------------------------------------------------------------------------------
Municipal Bonds - 98.08%
General Obligation Bonds - 6.91%
Ada & Canyon County School
District #2 5.50% 7/30/16 ....................... $1,055,000 $1,034,839
Bonner County Local Improvement
District # 93-1 6.20% 4/30/05 ................... 150,000 154,257
Bonner County Local Improvement
District # 93-2 6.35% 4/30/06 ................... 185,000 190,502
Bonner County Local Improvement
District # 93-3 6.40% 4/30/07 ................... 195,000 200,793
Bonner County Local Improvement
District # 93-4 6.50% 4/30/08 ................... 110,000 113,260
Bonner County Local Improvement
District # 93-5 6.50% 4/30/10 ................... 100,000 102,673
Coeur D' Alene Local Improvement
District # 6 Series 1995
6.00% 7/1/09 .................................... 85,000 86,153
Coeur D' Alene Local Improvement
District # 6 Series 1996
6.05% 7/1/10 .................................... 90,000 91,116
Coeur D' Alene Local Improvement
District # 6 Series 1997
6.10% 7/1/12 .................................... 40,000 40,282
Coeur D' Alene Local Improvement
District # 6 Series 1998
6.10% 7/1/14 .................................... 45,000 44,996
Madison County (FSA)
5.40% 8/1/14 .................................... 300,000 297,615
Puerto Rico Commonwealth
5.375% 7/1/25 ................................... 1,250,000 1,133,750
----------
3,490,236
----------
Higher Education Revenue Bonds - 4.35%
University of Idaho Student Fee
Telecommunications (FSA)
5.85% 4/1/11 .................................... 1,300,000 1,337,050
University of Idaho Student Fees
Recreation Center (FSA)
5.00% 4/1/25 .................................... 1,000,000 861,870
----------
2,198,920
----------
Hospital Revenue Bonds - 23.78%
Idaho Health Facilities Authority Hospital
Revenue - Elks Rehabilitation Hospital
5.45% 7/15/23 ................................... 2,000,000 1,538,380
Idaho Health Facilities Authority
Revenue - Bannock Regional Medical
Project 5.25% 5/1/14 ............................ 1,500,000 1,256,880
<PAGE>
Principal Market
Amount Value
- --------------------------------------------------------------------------------
Municipal Bonds (continued)
Hospital Revenue Bonds (continued)
Idaho Health Facilities Authority Revenue -
Bannock Regional Medical Center
6.125% 5/1/25 ................................... $1,500,000 $1,324,665
Idaho Health Facilities Authority Revenue -
Bannock Regional Medical Center
6.375% 5/1/17 ................................... 1,695,000 1,597,978
Idaho Health Facilities Authority Revenue -
Bonner General Hospital
6.50% 10/1/28 ................................... 1,500,000 1,271,970
Idaho Health Facilities Bingham
Memorial Hospital 6.00% 3/1/29 .................. 2,000,000 1,602,020
Idaho Magic Valley Health Facilities
(AMBAC) 5.625% 12/1/13 .......................... 500,000 501,045
----------
9,092,938
----------
Housing Revenue Bonds - 8.11%
Idaho Health Facilities Authority Revenue -
Valley Vista Care Series A
7.875% 11/15/22 ................................. 3,000,000 2,920,740
Idaho State Housing Agency Multi-Family
Park Place Project (FHA)
6.50% 12/1/36 ................................... 990,000 1,007,632
Idaho State Housing Finance Authority
Single Family Series A (AMBAC)
6.05% 7/1/13 .................................... 365,000 368,584
Idaho State Housing Finance Authority
Single Family Series A (FHA)
6.10% 7/1/16 .................................... 360,000 360,184
Idaho State Housing Finance Authority
Single Family Series A1
6.85% 7/1/12 .................................... 65,000 67,169
Idaho State Housing Finance Authority
Single Family Series B (FHA)
6.45% 7/1/15 .................................... 170,000 172,508
Idaho State Housing Finance Authority
Single Family Series C-2 6.35% 7/1/15 ........... 230,000 233,917
Idaho State Housing Finance Authority
Single Family Series E 6.60% 7/1/11 ............. 95,000 98,106
Idaho State Housing Finance Authority
Single Family Series E (FHA)
6.35% 7/1/15 .................................... 325,000 330,860
Idaho State Housing Finance Authority
Single Family Series G-2 6.15% 7/1/15 ........... 1,455,000 1,460,805
----------
7,020,505
----------
15
<PAGE>
Statements of Net Assets (continued)
Principal Market
Delaware Tax-Free Idaho Fund Amount Value
- --------------------------------------------------------------------------------
Municipal Bonds (continued)
Industrial Development Revenue
Bonds - 2.97%
Idaho State Water Resource Boise
Water 7.25% 12/1/21 ............................. $ 100,000 $ 104,153
Meridan EDA for Hi-Micro
5.85% 8/15/11 ................................... 1,250,000 1,240,700
Puerto Rico Industrial Medical
Environmental Revenue - PepsiCo
Project 6.25% 11/15/13 .......................... 150,000 156,081
-----------
1,500,934
Lease/Certificates of Participation - 1.93%
North Idaho College Dorm Housing -
Certificates of Participation
6.45% 10/1/16 ................................... 1,000,000 976,110
-----------
976,110
-----------
Pollution Control Revenue Bonds - 20.08%
Nez Perce County, Idaho Pollution
Control Revenue Refunding - Potlatch
Project 6.00% 10/1/24 ........................... 5,500,000 5,057,305
Power County Idaho Pollution Control
Revenue - FMC Project
5.625% 10/1/14 .................................. 5,570,000 5,085,577
-----------
10,142,882
-----------
Power Authority Revenue Bonds - 1.66%
+Puerto Rico Electric Power Authority
5.56% 7/1/19 Inverse Floater (FSA) .............. 1,100,000 736,340
Puerto Rico Electric Power Authority
(FSA) 6.00% 7/1/16 .............................. 100,000 101,884
-----------
838,224
-----------
*Pre-Refunded Bonds - 6.32%
Ada & Canyon County School
District #2 5.60% 7/30/12-05 .................... 1,325,000 1,369,798
Ammon, Idaho Urban Renewal Agency
Revenue 6.25% 8/1/18-06 ......................... 445,000 471,914
Ammon, Idaho Urban Renewal Tax
Increment Revenue
5.875% 8/1/17-04 ................................ 350,000 368,456
Canyon County Independent School
District #131 (MBIA)
5.50% 7/30/12-03 ................................ 100,000 101,138
Gooding and Lincoln Independent
School District #231
6.30% 2/1/14-04 ................................. 100,000 104,959
Idaho Holy Cross - St. Alphonsus
Regional Medical Center
6.25% 12/1/22-02 ................................ 590,000 622,686
<PAGE>
Principal Market
Amount Value
- --------------------------------------------------------------------------------
Municipal Bonds (continued)
*Pre-Refunded Bonds (continued)
Puerto Rico Telephone Revenue
Authority 5.50% 1/1/22 .......................... $ 150,000 $ 155,388
-----------
3,194,339
-----------
Transportation Revenue Bonds - 0.65%
Guam Highway (FSA) 6.30% 5/1/12 ................... 150,000 156,663
Puerto Rico Highway Revenue
Series W 5.50% 7/1/15 ........................... 175,000 170,741
-----------
327,404
-----------
Water & Sewer Revenue Bonds - 2.52%
Chubbuck Water Revenue
6.35% 4/1/08 .................................... 125,000 127,485
Chubbuck Water Revenue
6.40% 4/1/10 .................................... 135,000 137,739
McCall Water Revenue (FSA)
5.85% 3/1/16 .................................... 1,000,000 1,005,690
-----------
1,270,914
-----------
Other Revenue Bonds - 18.80%
Boise Urban Renewal Agency Tax
Increment Revenue 6.125% 9/1/15 ................. 4,540,000 4,537,730
Hayden, Idaho Improvement
District 95 - Special Assessment
6.30% 5/1/12 .................................... 115,000 115,082
Hayden, Idaho Improvement
District 95 - Special Assessment
6.35% 5/1/13 .................................... 120,000 120,086
Hayden, Idaho Improvement
District 95 - Special Assessment
6.40% 5/1/14 .................................... 125,000 125,111
Idaho State Building Authority
Building Revenue
Series A 4.75% 9/1/25 ........................... 1,500,000 1,241,445
Pocatello Development Authority and
Tax Increment Revenue
7.25% 12/1/08 ................................... 1,585,000 1,561,637
Puerto Rico Public Building Authority
Revenue Series M 5.50% 7/1/21 ................... 1,175,000 1,104,723
Virgin Islands Public Finance Authority
Revenue Sub Lien Funded Notes
Series E 5.875% 10/1/18 ......................... 750,000 693,735
-----------
9,499,549
-----------
Total Municipal Bonds
(cost $52,502,761) .............................. 49,552,955
-----------
16
<PAGE>
Statements of Net Assets (continued)
Market
Delaware Tax-Free Idaho Fund Value
- --------------------------------------------------------------------------------
Total Market Value of Securities - 98.08%
(cost $52,502,761) .............................. $49,552,955
Receivables and Other Assets
Net of Liabilities - 1.92% ...................... 971,295
-----------
Net Assets Applicable to 4,887,132
Shares Outstanding - 100.00% .................... $50,524,250
===========
Net Asset Value - Delaware Tax-Free
Idaho Fund A Class
($37,095,087 / 3,587,155 shares) ................ $10.34
------
Net Asset Value - Delaware Tax-Free
Idaho Fund B Class
($9,656,292 / 934,745 shares) ................... $10.33
------
Net Asset Value - Delaware Tax-Free
Idaho Fund C Class
($3,772,871 / 365,232 shares) ................... $10.33
------
<PAGE>
Market
Value
- --------------------------------------------------------------------------------
Components of Net Assets at February 29, 2000:
Shares of beneficial interest (unlimited
authorization - no par) ......................... $53,906,974
Undistributed net investment income ................ 66
Accumulated net realized loss
on investments .................................. (432,984)
Net unrealized depreciation
of investments .................................. (2,949,806)
-----------
Total net assets ................................... $50,524,250
===========
- ----------------------
* For Pre-Refunded Bonds, the stated maturity is followed by the year in which
the bond is pre-refunded.
+ Inverse floaters represent a security that pays interest at rates that
increase (decrease) with a decrease (increase) in a specific index. Interest
rates disclosed are in effect February 29, 2000.
Summary of Abbreviations:
AMBAC - Insured by the AMBAC Indemnity Corporation
FHA - Insured by the Federal Housing Authority
FSA - Insured by Financial Security Assurance
MBIA - Insured by the Municipal Bond Insurance Association
Net Asset Value and Offering Price Per Share -
Delaware Tax-Free Idaho Fund
Net asset value A Class (A) ........................ $10.34
Sales charge (3.75% of offering price, or
3.87% of amount invested per share) (B) ......... 0.40
------
Offering price ..................................... $10.74
======
- ----------------------
(A) Net asset value per share, as illustrated, is the estimated amount which
would be paid upon redemption or repurchase of shares.
(B) See the current prospectus for purchases of $100,000 or more.
See accompanying notes
17
<PAGE>
Statements of Net Assets (continued)
DELAWARE TAX-FREE IOWA FUND
- ---------------------------
Principal Market
February 29, 2000 (Unaudited) Amount Value
- --------------------------------------------------------------------------------
Municipal Bonds - 98.83%
Higher Education Revenue Bonds - 8.72%
Iowa Center Community College
Dormitory - Merged Area V
5.45% 6/1/18 .................................... $545,000 $ 491,846
Iowa Finance Authority Revenue -
Student Housing Dormitory Revenues
for Iowa Valley Community College
5.85% 5/1/19 .................................... 855,000 784,018
Puerto Rico Educational Facility
Revenue - Polytechnic University
6.50% 8/1/24 .................................... 640,000 652,691
State University of Iowa - Board Of
Regents 5.30% 7/1/13 ............................ 500,000 502,725
University of North Iowa - Board Of
Regents 5.30% 7/1/13 ............................ 150,000 150,817
University Of Puerto Rico Revenue
(MBIA) 5.50% 6/1/15 ............................. 1,000,000 988,730
----------
3,570,827
----------
Hospital Revenue Bonds - 2.99%
Puerto Rico Hospital Revenue -
Hospital Auxilio Mutuo Obligated
Group (MBIA) 6.25% 7/1/24 ....................... 1,200,000 1,223,208
----------
1,223,208
----------
Housing Revenue Bonds - 1.63%
Puerto Rico Housing Bank & Finance
Agency (GNMA) 6.25% 4/1/29 ...................... 660,000 668,224
----------
668,224
----------
Industrial Development Revenue
Bonds - 17.86%
Iowa Finance Authority - Underground
Storage Tank Revenue
5.125% 7/1/14 ................................... 4,900,000 4,657,597
Lee County Urban Renewal Revenue -
Keokuk Waste Treatment
6.40% 6/1/07 .................................... 500,000 510,900
Puerto Rico Commonwealth Industrial
Development General Purpose
Revenue Series B 5.375% 7/1/16 .................. 1,000,000 937,400
Puerto Rico Port Authority Revenue -
Special Facility - American Airlines
(AMT) 6.25% 6/1/26 .............................. 1,275,000 1,211,926
----------
7,317,823
----------
Power Authority Revenue Bonds - 7.37%
+Puerto Rico Electric Power Authority
Revenue Series DD Inverse Floater
(FSA) 5.11% 7/1/19 .............................. 1,000,000 669,400
Puerto Rico Electric Power Authority
Revenue Series EE 4.75% 7/1/24 .................. 400,000 326,884
Puerto Rico Electric Power Authority
Revenue Series U 6.00% 7/1/14 ................... 1,100,000 1,122,484
<PAGE>
Principal Market
Amount Value
- --------------------------------------------------------------------------------
Municipal Bonds (continued)
Power Authority Revenue Bonds (continued)
Virgin Islands Water & Power Authority
Electric System Revenue
5.30% 7/1/18 .................................... $1,000,000 $ 902,160
----------
3,020,928
----------
*Pre-Refunded/Escrowed to Maturity
Bonds - 16.60%
Puerto Rico Electric Power Authority
Revenue 6.25% 7/1/17-02 ......................... 1,000,000 1,048,090
Puerto Rico Municipal Finance Authority
(FSA) 6.00% 7/1/14-04 ........................... 1,700,000 1,803,615
Puerto Rico Telephone Revenue Authority
5.50% 1/1/22-03 ................................. 2,120,000 2,196,150
Virgin Islands Public Finance Authority
(Escrowed to maturity)
7.30% 10/1/18 ................................... 1,500,000 1,753,725
----------
6,801,580
----------
Transportation Revenue Bonds - 8.28%
Guam Highway (FSA) 6.30% 5/1/12 ................... 1,950,000 2,036,619
Puerto Rico Commonwealth Highway
& Transportation Revenue
5.25% 7/1/21 .................................... 1,500,000 1,355,490
----------
3,392,109
----------
Water & Sewer Revenue Bonds - 10.89%
Iowa Finance Authority - State
Revolving Fund Revenue
5.20% 5/1/23 .................................... 2,445,000 2,215,732
Iowa Finance Authority - State
Revolving Fund Revenue
6.25% 5/1/24 .................................... 1,750,000 1,801,800
Virgin Islands Water & Power
Authority Water System Revenue
5.50% 7/1/17 .................................... 510,000 446,816
----------
4,464,348
----------
Other Revenue Bonds - 24.49%
Bettendorf, Iowa Urban Renewal
Tax Increment Revenue
Series A 5.00% 6/1/00 ........................... 300,000 299,691
Bettendorf, Iowa Urban Renewal
Tax Increment Revenue
Series A 5.10% 6/1/01 ........................... 315,000 313,627
Bettendorf, Iowa Urban Renewal
Tax Increment Revenue
Series A 5.20% 6/1/02 ........................... 330,000 327,495
Bettendorf, Iowa Urban Renewal
Tax Increment Revenue
Series A 5.30% 6/1/03 ........................... 345,000 341,333
Bettendorf, Iowa Urban Renewal
Tax Increment Revenue
Series A 5.40% 6/1/04 ........................... 365,000 360,080
18
<PAGE>
Statements of Net Assets (continued)
Principal Market
Delaware Tax-Free Iowa Fund Amount Value
- --------------------------------------------------------------------------------
Municipal Bonds (continued)
Other Revenue Bonds (continued)
Bettendorf, Iowa Urban Renewal
Tax Increment Revenue
Series A 5.50% 6/1/05 ........................... $ 385,000 $ 378,782
Bettendorf, Iowa Urban Renewal
Tax Increment Revenue
Series A 5.60% 6/1/06 ........................... 405,000 397,447
Bettendorf, Iowa Urban Renewal
Tax Increment Revenue
Series A 5.70% 6/1/07 ........................... 425,000 416,092
Bettendorf, Iowa Urban Renewal
Tax Increment Revenue
Series A 5.80% 6/1/08 ........................... 450,000 439,601
Bettendorf, Iowa Urban Renewal
Tax Increment Revenue
Series A 5.90% 6/1/09 ........................... 800,000 779,376
Iowa Finance Authority Revenue -
Correctional Facility Program
5.70% 6/15/14 ................................... 2,000,000 2,027,080
Puerto Rico Public Building
Authority Revenue
Series L 5.75% 7/1/16 ........................... 1,000,000 992,590
Puerto Rico Public Building
Authority Revenue
Series M 5.50% 7/1/21 ........................... 1,100,000 1,034,209
Puerto Rico Public Building
Authority Revenue
Series M 5.75% 7/1/15 ........................... 1,000,000 1,001,270
Virgin Islands Public Finance Authority
Revenue - Sub Lien Funded Loan Notes
Series E 5.875% 10/1/18 ......................... 1,000,000 924,980
-----------
10,033,653
-----------
Total Municipal Bonds
(cost $40,594,231) .............................. 40,492,700
-----------
<PAGE>
Market
Value
- --------------------------------------------------------------------------------
Total Market Value of Securities - 98.83%
(cost $40,594,231) .............................. $40,492,700
Receivables and Other Assets
Net of Liabilities - 1.17% ...................... 480,496
-----------
Net Assets Applicable to 4,359,672 Shares
Outstanding - 100.00% ........................... $40,973,196
===========
Net Asset Value - Delaware Tax-Free
Iowa Fund A Class
($35,545,726 / 3,782,253 shares) ................ $9.40
-----
Net Asset Value - Delaware Tax-Free
Iowa Fund B Class
($4,260,628 / 453,230 shares) ................... $9.40
-----
Net Asset Value - Delaware Tax-Free
Iowa Fund C Class
($1,166,842 / 124,189 shares) ................... $9.40
-----
Components of Net Assets at February 29, 2000:
Shares of beneficial interest (unlimited
authorization - no par) ......................... $42,914,946
Accumulated net realized loss
on investments .................................. (1,840,219)
Net unrealized depreciation
of investments .................................. (101,531)
-----------
Total net assets ................................... $40,973,196
===========
- ----------------------
* For Pre-Refunded Bonds, the stated maturity is followed by the year in which
the bond is pre-refunded.
+ Inverse floater represents a security that pays interest at rates that
increase (decrease) with a decrease (increase) in a specific index. Interest
rates disclosed are in effect February 29, 2000.
Summary of Abbreviations:
AMT - Subject to Federal Alternative Minimum Tax
FSA - Insured by Financial Security Assurance
GNMA - Insured by the Government National Mortgage Association
MBIA - Insured by the Municipal Bond Insurance Association
Net Asset Value and Offering Price Per Share -
Delaware Tax-Free Iowa Fund
Net asset value A Class (A) ........................ $9.40
Sales charge (3.75% of offering price or
3.94% of amount invested per share) (B) ......... 0.37
-----
Offering price ..................................... $9.77
=====
- ----------------------
(A) Net asset value per share, as illustrated, is the estimated amount which
would be paid upon the redemption or repurchase of shares
(B) See the current prospectus for purchases of $100,000 or more.
See accompanying notes
19
<PAGE>
Statements of Net Assets (continued)
DELAWARE TAX-FREE KANSAS FUND
- -----------------------------
Principal Market
February 29, 2000 (Unaudited) Amount Value
- --------------------------------------------------------------------------------
Municipal Bonds - 99.33%
Certificate of Participation - 8.22%
Linn County, Kansas for America One,
LLC 7.25% 3/1/13 ................................ $ 350,000 $ 327,156
Spring Hill Certificate of Participation A
Spring Hill Golf Corp. 6.50% 1/15/28 ............ 1,000,000 864,030
----------
1,191,186
----------
General Obligation Bonds - 11.70%
Allen County Unified School District #258
(AMBAC) 6.875% 9/1/10 ........................... 240,000 269,923
Ellsworth County, Kansas
Series 1 5.75% 9/1/17 ........................... 250,000 248,907
Linn County Unified School District
5.70% 11/1/16 ................................... 500,000 487,370
Puerto Rico Commonwealth Public
Improvement 4.50% 7/1/23 ........................ 550,000 435,083
Summer County Unified School District #356
(MBIA) 5.75% 9/1/11 ............................. 250,000 254,230
----------
1,695,513
----------
Higher Education Revenue Bonds - 14.35%
Kansas Development Finance Authority -
Kansas Board of Regents - Wichita State
University (AMBAC) 5.875% 6/1/17 ................ 300,000 300,303
Puerto Rico Educational Facility Revenue -
Polytechnic University 6.50% 8/1/24 ............. 1,150,000 1,172,805
Winfield Kansas Educational Facilities
Revenue Refunding and Improvement
5.75% 4/1/22 .................................... 680,000 606,764
----------
2,079,872
----------
Hospital Revenue Bonds - 10.43%
Lawrence, Kansas For Lawrence Memorial
Hospital 6.20% 7/1/19 ........................... 250,000 234,735
Olathe, Kansas Health Facility Revenue
for Evangelical Lutheran Good Samaritan
Project (AMBAC) 6.00% 5/1/19 .................... 250,000 250,102
Olathe, Kansas Health Facility Revenue
For Olathe Medical Center
Series 94A (AMBAC) 5.875% 9/1/16 ................ 100,000 100,057
Shawnee County Sisters of Charity
Leavenworth Hospital (FSA)
5.00% 12/1/23 ................................... 250,000 203,877
Wichita Kansas Hospital Revenue
6.25% 11/15/24 .................................. 750,000 722,550
----------
1,511,321
----------
Housing Revenue Bonds - 10.70%
Kansas Development Finance Authority
for Martin Creek Multifamily Housing
Project (FHA) 6.50% 8/1/24 ...................... 50,000 50,961
<PAGE>
Principal Market
Amount Value
- --------------------------------------------------------------------------------
Municipal Bonds (continued)
Housing Revenue Bonds (continued)
Kansas State Development Finance
Authority Multifamily Revenue-Oak
Ridge Park Apartments Project
Series F 6.625% 8/1/29 .......................... $1,000,000 $ 954,620
Olathe, Kansas Multifamily Housing -
Deerfield Apartments Series 1994A
(FNMA) 6.45% 6/1/19 ............................. 250,000 254,717
Olathe,Kansas Multifamily Housing-
Jefferson Place Apartments Project-
Series B 6.10% 7/1/22 ........................... 300,000 289,695
----------
1,549,993
----------
Industrial Development Revenue Bonds - 8.03%
Columbus, Kansas Industrial Revenue
ACE Electrical Acquisition
7.00% 8/1/17 .................................... 800,000 735,968
Manhattan, Kansas Industrial Revenue
Farrar Corp. Project 7.00% 8/1/14 ............... 400,000 378,828
Wamego Pollution Control Revenue
Western Resources Inc. Project (MBIA)
6.00% 2/1/33 .................................... 50,000 49,151
----------
1,163,947
----------
Power Authority Revenue Bonds - 5.55%
+Puerto Rico Electric Power Authority
Revenue Series DD Inverse Floater (FSA)
5.20% 7/1/19 .................................... 600,000 401,640
Puerto Rico Electric Power Authority
Series Z 5.25% 7/1/21 ........................... 450,000 402,201
----------
803,841
----------
*Pre-Refunded Bonds - 22.53%
Douglas County Lawrence Unified
School District #497
6.00% 9/1/15-03 ................................. 250,000 256,475
Jefferson County Unified
School District #340 (FSA)
6.35% 9/1/15-04 ................................. 250,000 264,053
Johnson County G.O. Improvement
6.125% 9/1/12-02 ................................ 600,000 613,872
Kansas City Community College
Student Center (MBIA)
6.25% 5/15/20-02 ................................ 300,000 309,396
Kansas City Utility System Revenue (FGIC)
6.375% 9/1/23-04 ................................ 295,000 316,615
Kansas Development Finance
Authority Water Pollution Control
Sewer Revenue 6.00% 11/1/14-03 .................. 250,000 263,455
Maize Unified School District
#266 Series 1994 (FSA)
5.875% 9/1/12-03 ................................ 250,000 258,308
20
<PAGE>
Statements of Net Assets (continued)
Principal Market
Delaware Tax-Free Kansas Fund Amount Value
- --------------------------------------------------------------------------------
Municipal Bonds (continued)
*Pre-Refunded Bonds (continued)
Sedgwick County Unified
School District #265 (FSA)
5.50% 10/1/13-04 ................................ $250,000 $ 255,663
Sedgwick County Unified
School District #267
6.15% 11/1/09-05 ................................ 250,000 263,500
Shawnee County Unified
School District #345 (MBIA)
5.75% 9/1/11-04 ................................. 250,000 258,073
Shawnee County Unified
School District #501
(FGIC) 5.75% 2/1/11-03 .......................... 200,000 204,660
-----------
3,264,070
-----------
Transportation Revenue Bonds - 0.68%
Kansas Department of Transportation
5.375% 3/1/13 ................................... 100,000 98,123
-----------
98,123
-----------
Water & Sewer Revenue Bonds - 7.14%
Haysville Water & Sewer (FSA)
5.80% 10/1/16 ................................... 250,000 251,342
Johnson County Water Revenue
5.25% 12/1/15 ................................... 175,000 168,453
Kansas City Utility System Revenue
(FGIC) 6.375% 9/1/23 ............................ 605,000 615,430
-----------
1,035,225
-----------
Total Municipal Bonds
(cost $14,602,921) $14,393,091
-----------
Total Market Value of Securities - 99.33%
(cost $14,602,921) .............................. $14,393,091
Receivables and Other Assets
Net of Liabilities - 0.67% ...................... 96,695
-----------
Net Assets Applicable to 1,418,141
Shares Oustanding - 100.00% ..................... $14,489,786
===========
Net Asset Value - Delaware Tax-Free
Kansas Fund A Class
($10,157,646 / 994,618 shares) .................. $10.21
------
Net Asset Value - Delaware Tax-Free
Kansas Fund B Class
($4,097,423 / 400,536 shares) ................... $10.23
------
Net Asset Value - Delaware Tax-Free
Kansas Fund C Class
($234,717 / 22,987 shares) ...................... $10.21
------
<PAGE>
Market
Value
- --------------------------------------------------------------------------------
Components of Net Assets at February 29, 2000:
Shares of beneficial interest (unlimited
authorization - no par) ......................... $14,815,314
Accumulated net realized loss
on investments .................................. (115,698)
Net unrealized depreciation
of investments .................................. (209,830)
-----------
Total net assets ................................... $14,489,786
===========
- ----------------------
* For Pre-Refunded Bonds, the stated maturity is followed by the year in which
the bond is pre-refunded.
+ Inverse floater represents a security that pays interest rates that increase
(decrease) with a decrease (increase) in a sprecified index.
Interest rates disclosed are in effect February 29, 2000.
Summary of Abbreviations:
AMBAC - Insured by AMBAC Indemnity Corporation
FGIC - Insured by the Financial Guaranty Insurance Company
FHA - Insured by the Federal Housing Authority
FNMA - Insured by the Federal National Mortgage Asscociation
FSA - Insured by Financial Security Assurance
MBIA - Insured by the Municipal Bond Insurance Association
Net Asset Value and Offering Price Per Share -
Delaware Tax-Free Kansas Fund
Net asset value A Class (A) ........................ $10.21
Sales charge (3.75% of offering price
or 3.92% of amount invested per share) (B) ...... 0.40
------
Offering price ..................................... $10.61
======
- ----------------------
(A) Net asset value per share, as illustrated, is the estimated amount which
would be paid upon the redemption or repurchase of shares.
(B) See the current prospectus for purchases of $100,000 or more.
See accompanying notes
21
<PAGE>
Statements of Net Assets (continued)
DELAWARE TAX-FREE MISSOURI INSURED FUND
- ---------------------------------------
Principal Market
February 29, 2000 (Unaudited) Amount Value
- --------------------------------------------------------------------------------
Municipal Bonds - 98.47%
General Obligation Bonds - 5.01%
Franklin County School District
(FGIC) 5.75% 3/1/13 ........................... $ 155,000 $ 156,056
St. Charles (FSA) 5.75% 3/1/15 ................... 1,000,000 1,004,520
**St. Charles County Missouri Francis
Howell School District Capital
Appreciation (FGIC) 5.956% 3/1/16 ............... 2,000,000 781,780
**St. Charles County Missouri Francis
Howell School District Capital
Appreciation (FGIC) 6.006% 3/1/17 ............... 1,500,000 548,340
-----------
2,490,696
-----------
Higher Education Revenue Bonds - 1.92%
Missouri State Health & Education
Facility - Central Missouri State
University (AMBAC) 5.75% 10/1/25 ............... 1,000,000 954,900
-----------
954,900
-----------
Hospital Revenue Bonds - 26.02%
Cape Girardeau SE Missouri Hospital
(MBIA) 5.25% 6/1/16 ............................ 1,000,000 942,540
Hannibal Health Facilities Series A
(Hannibal Regional Hospital)
(FSA) 5.625% 3/1/12 ............................ 2,500,000 2,496,750
Hannibal Health Facilities Series A
(Hannibal Regional Hospital)
(FSA) 5.75% 3/1/22 ............................. 1,000,000 955,590
Jackson County St. Joseph's Hospital
(MBIA) 6.50% 7/1/12 ............................ 1,895,000 1,981,393
Jackson County St. Mary's Hospital
(MBIA) 5.75% 7/1/24 ............................ 2,000,000 1,901,940
Missouri State Health & Education
Facility (Children's Mercy Hospital)
(MBIA) 5.65% 5/15/23 ........................... 1,000,000 946,800
Missouri State Health & Education
Facility (Health Midwest)
(MBIA) 6.25% 2/15/22 ........................... 1,000,000 1,007,240
Missouri State Health & Education
Facility (Heartland Health Systems)
(AMBAC) 6.35% 11/15/17 ......................... 1,250,000 1,275,225
Missouri State Health & Education
Facility (SSM Health Care)
(MBIA) 6.40% 6/1/10 ............................ 500,000 534,025
Missouri State Health & Education
Facility (St. Luke's Health Systems)
(MBIA) 5.125% 11/15/19 ......................... 1,000,000 890,050
-----------
12,931,553
-----------
Housing Revenue Bonds - 14.09%
Missouri Single Family Housing
(FNMA/GNMA) 7.20% 9/1/26 ....................... 1,515,000 1,607,218
Missouri Single Family Housing
(FNMA/GNMA) 7.25% 9/1/26 ....................... 1,785,000 1,893,332
<PAGE>
Principal Market
Amount Value
- --------------------------------------------------------------------------------
Municipal Bonds (continued)
Housing Revenue Bonds (continued)
Missouri Single Family Housing
(FNMA/GNMA) 7.45% 9/1/27 ....................... $1,455,000 $1,565,144
Missouri Single Family Housing
(FNMA/GNMA) 7.55% 9/1/27 ....................... 1,350,000 1,438,385
Missouri Single Family Housing
(GNMA) 7.20% 12/1/17 ........................... 155,000 162,548
Missouri Single Family Housing
(GNMA) 7.25% 12/1/20 ........................... 320,000 333,955
----------
7,000,582
----------
Industrial Development Revenue Bonds -2.04%
St. Louis Municipal Finance Corporation
City Lease Revenue-City Justice
Center, Series A
(AMBAC) 5.95% 2/15/16 .......................... 1,000,000 1,012,580
----------
1,012,580
----------
Municipal Lease Bonds - 2.01%
Kansas City Muehlebach Hotel
(FSA) 5.90% 12/1/18 ............................ 1,000,000 999,890
----------
999,890
----------
Power Authority Revenue Bonds - 3.83%
+Puerto Rico Electric Power Authority
Revenue Series DD Inverse Floater
(FSA) 5.11% 7/1/19 ............................. 1,275,000 853,485
Sikeston Electric Revenue
(MBIA) 6.00% 6/1/13 ............................ 1,000,000 1,049,380
----------
1,902,865
----------
*Pre-Refunded/Escrowed to Maturity Bonds - 28.22%
Clark County School District
(FSA) 5.75% 3/1/15-05 .......................... 1,775,000 1,808,867
Franklin County School District
(FGIC) 5.75% 3/1/13-03 ......................... 945,000 961,065
**Greene County Single Family Mortgage
Revenue - (Private Mortgage
Insurance) (Escrowed to
maturity) 6.176% 3/1/16 ........................ 1,225,000 462,756
Kansas City Airport Revenue
(FSA) 6.875% 9/1/14-04 ......................... 1,675,000 1,817,660
Sikeston Electric Revenue
(MBIA) 6.25% 6/1/12-02 ......................... 2,000,000 2,099,860
St. Charles School District
(FGIC) 6.50% 2/1/14-06 ......................... 1,250,000 1,336,300
St. Louis County School District #8
(MBIA) 5.60% 2/15/15-05 ........................ 1,490,000 1,526,103
St. Louis Municipal Finance Corporation
Leasehold Revenue
(FGIC) 6.25% 2/15/12-05 ........................ 1,850,000 1,946,921
Troy School District #3 Lincoln County
(MBIA) 6.10% 3/1/14-05 ......................... 1,235,000 1,292,168
22
<PAGE>
Statements of Net Assets (continued)
Principal Market
Delaware Tax-Free Missouri Insured Fund Amount Value
- --------------------------------------------------------------------------------
Municipal Bonds (continued)
*Pre-Refunded/Escrowed to Maturity
Bonds - 28.22%
West Platte School District
(MBIA) 5.85% 3/1/15-05 ......................... $ 750,000 $ 776,527
-----------
14,028,227
-----------
Utility Revenue Bonds - 4.50%
Missouri Environmental Pollution
Control Revenue - St. Joseph's
Light and Power Co.
(AMBAC) 5.85% 2/1/13 ............................ 2,200,000 2,235,530
-----------
2,235,530
-----------
Water & Sewer Revenue Bonds - 4.37%
Liberty Sewer (MBIA) 6.00% 2/1/08 ................. 600,000 630,774
Liberty Sewer (MBIA) 6.15% 2/1/15 ................. 1,500,000 1,541,295
-----------
2,172,069
-----------
Other Revenue Bonds - 6.46%
Kansas City Municipal Assistance -
Bartle Hall Convention Center
(MBIA) 5.60% 4/15/16 ............................ 940,000 915,626
Missouri State Environmental -
State Revolving Fund - Branson
(FSA) 6.05% 7/1/16 .............................. 2,265,000 2,294,422
-----------
3,210,048
-----------
Total Municipal Bonds
(cost $48,634,829) .............................. 48,938,940
-----------
Total Market Value of Securities - 98.47%
(cost $48,634,829) .............................. $48,938,940
-----------
Receivables and Other Assets
Net of Liabilities - 1.53% ...................... 759,029
-----------
Net Assets Applicable to 4,959,033
Shares Outstanding - 100.00% .................... $49,697,969
===========
Net Asset Value - Delaware Tax-Free
Missouri Insured A Class
($39,514,024 / 3,942,632 shares) ................ $10.02
------
Net Asset Value - Delaware Tax-Free
Missouri Insured B Class
($9,942,568 / 992,330 shares) ................... $10.02
------
Net Asset Value - Delaware Tax-Free
Missouri Insured C Class
($241,377 / 24,071 shares) ...................... $10.03
------
<PAGE>
Market
Value
- --------------------------------------------------------------------------------
Components of Net Assets At February 29, 2000:
Shares of beneficial interest (unlimited
authorization - no par) ......................... $50,321,014
Undistributed net investment loss .................. (265)
Accumulated net realized loss
on investments .................................. (926,891)
Net unrealized appreciation
of investments .................................. 304,111
-----------
Total net assets ................................... $49,697,969
===========
- ----------------------
* For Pre-Refunded Bonds, the stated maturity is followed by the year in which
the bond is pre-refunded.
** Zero coupon bond - The interest rate shown is the effective yield as of
February 29, 2000.
+ Inverse floater represents a security that pays interest at rates that
increase (decrease) with a decrease (increase) in a specific index. Interest
rates disclosed are in effect February 29, 2000.
Summary of Abbreviations:
AMBAC - Insured by the Ambac Indemnity Corporation
FGIC - Insured by the Financial Guaranty Insurance Company
FNMA - Insured by the Federal National Mortgage Asscociation
FSA - Insured by Financial Security Assurance
GNMA - Insured by the Government National Mortgage Association
MBIA - Insured by the Municipal Bond Insurance Association
Net Asset Value and Offering Price Per Share -
Delaware Tax-Free Missouri Insured Fund
Net asset value A Class (A) ........................ $10.02
Sales charge (3.75% of offering price or
3.89% of amount invested per share) (B) ......... 0.39
------
Offering price ..................................... $10.41
======
- ----------------------
(A) Net asset value per share, as illustrated, is the estimated amount which
would be paid upon the redemption or repurchase of shares.
(B) See the current prospectus for purchases of $100,000 or more.
See accompanying notes
23
<PAGE>
Statements of Net Assets (continued)
DELAWARE MONTANA MUNICIPAL BOND FUND
- ------------------------------------
Principal Market
February 29, 2000 (Unaudited) Amount Value
- --------------------------------------------------------------------------------
Municipal Bonds - 88.43%
General Obligation Bonds - 7.76%
Montana St Long Range Building
Program- Series D 5.375% 8/1/12 ................. $75,000 $ 75,178
Puerto Rico Commonwealth Public
Improvement 4.50% 7/1/23 ........................ 50,000 39,553
Puerto Rico Commonwealth
5.375% 7/1/25 ................................... 50,000 45,350
--------
160,081
--------
Higher Education Revenue Bonds - 46.16%
Montana State Higher Education Student
Assistance Corporation - Student
Loan - Series B 6.40% 12/1/32 ................... 475,000 467,899
Montana State Board of Regents -
University of Montana Series F
5.75% 5/15/24 ................................... 500,000 484,720
--------
952,619
--------
Hospital Revenue Bonds - 9.64%
Montana State Health Facilities Authority
Health Care Master Loan Program -
Marcus Daly - Series A 6.00% 8/1/20 ............. 100,000 98,950
Montana Health Facilities Authority -
Variable Rate - Health Care -
Pooled Loan Program 3.85% 12/1/20 ............... 100,000 100,000
--------
198,950
--------
Housing Revenue Bonds - 4.86%
Montana State Board of Housing -
Single Family Mortgage -
Series A1 6.00% 6/1/16 .......................... 100,000 100,289
--------
100,289
--------
Pollution Control Revenue Bonds - 4.85%
Forsyth Montana Pollution Control -
Montana Power Company - Series A
(AMBAC) 6.125% 5/1/23 ........................... 100,000 100,187
--------
100,187
--------
Power Authority Revenue Bonds - 2.17%
Puerto Rico Electric Power Authority
Series Z 5.25% 7/1/21 ........................... 50,000 44,689
-------
44,689
-------
*Pre-Refunded/Escrowed to Maturity Bonds - 3.66%
Puerto Rico Telephone Authority
(Escrowed to maturity) (AMBAC)
4.95% 1/1/03 .................................... 75,000 75,625
--------
75,625
--------
Other Revenue Bonds - 9.33%
Billings Montana Industrial Development
Floating Rate 3.90% 12/1/14 ..................... 100,000 100,000
<PAGE>
Principal Market
Amount Value
- --------------------------------------------------------------------------------
Municipal Bonds (continued)
Other Revenue Bonds (continued)
Virgin Islands Public Finance Authority
Revenue Sub Lien Funded Loan Notes
Series E 5.875% 10/1/18 ......................... $100,000 $ 92,498
----------
192,498
----------
Total Municipal Bonds
(cost $1,831,002) ............................... 1,824,938
----------
Total Market Value of Securities - 88.43%
(cost $1,831,002) ............................... $1,824,938
Receivables and Other Assets
Net of Liabilities - 11.57% ..................... 238,658
----------
Net Assets Applicable to 376,166 Shares
Outstanding - 100.00% ........................... $2,063,596
==========
Net Asset Value - Delaware Montana
Municipal Bond Fund A Class
($1,212,555 / 221,033 shares) ................... $5.49
-----
Net Asset Value - Delaware Montana
Municipal Bond Fund B Class
($602,189 / 109,771 shares) ..................... $5.49
-----
Net Asset Value - Delaware Montana
Municipal Bond Fund C Class
($248,852 / 45,362 shares) ...................... $5.49
-----
Components of Net Assets at February 29, 2000:
Shares of beneficial interest (unlimited
authorization - no par) ......................... $2,069,925
Undistributed net investment loss .................. (265)
Net unrealized depreciation on
investments ..................................... (6,064)
----------
Total net assets ................................... $2,063,596
==========
- ----------------------
* For Pre-Refunded bonds, the stated maturity is followed by the year in which
the bond is pre-refunded.
Summary of Abbreviation:
AMBAC - Insured by the AMBAC Indemnity Corporation
Net Asset Value and Offering Price Per Share -
Delaware Montana Municipal Bond Fund
Net asset value A Class (A) ........................ $5.49
Sales charge (3.75% of offering price or
3.83% of amount invested per share) (B) ......... 0.21
-----
Offering price ..................................... $5.70
=====
- ----------------------
(A) Net asset value per share, as illustrated, is the estimated amount which
would be paid upon the redemption or repurchase of shares.
(B) See the current prospectus for purchases of $100,000 or more.
See accompanying notes
24
<PAGE>
Statement of Assets and Liabilities
Delaware Montana
February 29, 2000 (Unaudited) Municipal Bond Fund
- --------------------------------------------------------------------------------
ASSETS:
Investments at market (cost $1,831,002) ..................... $ 1,824,938
Cash ........................................................ 401,457
Interest receivable ......................................... 27,347
Subscriptions receivable .................................... 16,700
Other assets ................................................ 3,325
-----------
Total assets ................................................ 2,273,767
-----------
LIABILITIES:
Payable for securities purchased ............................ 199,351
Other accounts payable and accrued expenses ................. 10,820
-----------
Total liabilities ........................................... 210,171
-----------
Total net assets ............................................ $ 2,063,596
===========
See accompanying notes
25
<PAGE>
Statements of Net Assets (continued)
DELAWARE TAX-FREE NORTH DAKOTA FUND
-----------------------------------
Principal Market
February 29, 2000 (Unaudited) Amount Value
- --------------------------------------------------------------------------------
Municipal Bonds - 99.08%
General Obligation Bonds - 1.88%
Grand Forks Sewer Reserve
6.70% 6/1/07 ..................................... $270,000 $ 275,476
Puerto Rico Commonwealth Refunding
Public Improvement 4.50% 7/1/23 .................. 250,000 197,765
----------
473,241
----------
Higher Education Revenue Bonds - 6.72%
Burleigh County North Dakota University
Facility Revenue University
of Mary Project 5.625% 12/1/15 .................... 1,000,000 924,640
North Dakota State University Housing
and Auxiliary Facility 6.30% 4/1/07 ............... 250,000 256,218
North Dakota State University Housing
and Auxiliary Facility 6.50% 4/1/12 ............... 500,000 513,100
-----------
1,693,958
-----------
Hospital Revenue Bonds - 26.33%
Cando, North Dakota Nursing Facility
Revenue - Towner County Medical
Center Project 7.125% 8/1/22 ...................... 1,000,000 976,440
Carrington, North Dakota Health Facility
Revenue for Carrington Health Center
6.25% 11/15/15 .................................... 500,000 500,950
Cass County, North Dakota Health
Facility Revenue for Catholic Health -
Villa Nazareth Project 6.25% 11/15/14 ............. 1,000,000 1,003,510
Fargo Hospital Facility St. Luke's
Hospital, Series 1992 6.50% 6/1/15 ................ 1,000,000 1,024,800
Grand Forks, North Dakota Senior
Housing Revenue 4000 Valley Square
Project 6.25% 12/1/34 ............................. 2,000,000 1,648,320
Grand Forks, United Hospital Obligated
Group (MBIA) 6.125% 12/1/14 ....................... 225,000 229,135
Grand Forks, United Hospital Obligated
Group (MBIA) 6.25% 12/1/19 ........................ 250,000 252,845
Killdeer, North Dakota Nursing Care
Revenue- Hill Top Home of Comfort
6.00% 11/1/12 ..................................... 780,000 702,998
Valley City, North Dakota Congregate
Housing Revenue - Bridgeview Estates
Project 7.25% 8/1/22 .............................. 300,000 296,700
-----------
6,635,698
-----------
Housing Revenue Bonds - 26.48%
Minot Single Family Mortgage
7.70% 8/1/10 ...................................... 110,000 112,153
North Dakota Single Housing Finance
Agency Single Family Mortgage
Series A (FHA) 6.75% 7/1/12 ....................... 135,000 139,518
North Dakota Housing Finance Authority
Single Family Mortgage 6.25% 1/1/17 ............... 2,000,000 2,017,320
<PAGE>
Principal Market
Amount Value
- --------------------------------------------------------------------------------
Municipal Bonds (continued)
Housing Revenue Bonds (continued)
North Dakota Housing Finance
Authority Single Family Mortgage
Series A 6.30% 7/1/16 ........................... $1,690,000 $1,712,730
North Dakota State Housing Finance
Agency Revenue Multifamily
(FNMA) 6.125% 12/1/15 ........................... 500,000 506,270
North Dakota State Housing Finance
Agency Revenue Multifamily
(FNMA) 6.15% 12/1/17 ............................ 1,300,000 1,312,597
North Dakota State Housing Finance
Agency Single Family Mortgage
Series E (FNMA) 6.30% 1/1/15 .................... 625,000 635,344
North Dakota State Housing Finance
Authority Single Family Mortgage
Series A 6.95% 7/1/12 ........................... 230,000 238,602
-----------
6,674,534
-----------
Industrial Development Revenue Bond - 2.06%
Mercer County Pollution Control Otter
Tail Power Company Project
6.90% 2/1/19 .................................... 500,000 518,435
-----------
518,435
-----------
Power Authority Revenue Bonds - 11.57%
Mercer County Pollution Control
Revenue Montana-Dakota Utilities
Company Project
(FGIC) 6.65% 6/1/22 ............................. 500,000 522,620
Mercer County Pollution Control
Revenue For Basin Electric Revenue
6.05% 1/1/19 .................................... 1,250,000 1,254,025
+Puerto Rico Electric Power Authority
Rols Inverse Floater (FSA)
5.13% 7/1/19 .................................... 900,000 602,460
Puerto Rico Electric Power Authority
Series Z 5.25% 7/1/21 ........................... 600,000 536,268
-----------
2,915,373
-----------
*Pre-Refunded Bonds - 3.92%
Bismarck Hospital Alexius Medical
Center (AMBAC)
6.90% 5/1/06-01 ................................... 500,000 522,710
Burleigh County University Facilities
University of Mary Project
7.125% 12/1/11-01 ................................ 250,000 261,977
Fargo Park District Revenue
7.25% 11/1/11-00 ................................. 200,000 203,946
-----------
988,633
-----------
Territorial Revenue Bond - 3.29%
Guam Power Series A 5.125% 10/1/29 ................. 1,000,000 830,490
-----------
830,490
-----------
26
<PAGE>
Statements of Net Assets (continued)
Principal Market
Delaware Tax-Free North Dakota Fund Amount Value
- --------------------------------------------------------------------------------
Municipal Bonds (continued)
Transportation Revenue Bond - 5.49%
Puerto Rico Commonwealth Highway
& Transportation Authority
Series Y 5.50% 7/1/26 ........................... $1,500,000 $ 1,382,655
-----------
1,382,655
-----------
Other Revenue Bonds - 11.34%
North Dakota Building Authority
Revenue (FSA) 6.00% 12/1/14 ..................... 1,310,000 1,323,834
North Dakota Building Authority
Revenue (FSA) 6.10% 12/1/16 ..................... 1,480,000 1,494,978
North Dakota State Student Loan
(AMBAC) 7.00% 7/1/05 ............................ 40,000 40,684
-----------
2,859,496
-----------
Total Municipal Bonds
(cost $25,518,528) .............................. $24,972,513
------------
Total Market Value of Securities - 99.08%
(cost $25,518,528) .............................. $24,972,513
Receivables and Other Assets
Net of Liabilities - 0.92% ...................... 232,872
------------
Net Assets Applicable to 2,431,926
Shares Outstanding 100.00% ...................... $25,205,385
===========
Net Asset Value - Delaware Tax-Free
North Dakota Fund A Class
($23,903,370 / 2,306,290 shares) ................ $10.36
------
Net Asset Value - Delaware Tax-Free
North Dakota Fund B Class
($987,001 / 95,231 shares) ...................... $10.36
------
Net Asset Value - Delaware Tax-Free
North Dakota Fund C Class
($315,014 / 30,405 shares) ...................... $10.36
------
<PAGE>
Market
Value
- --------------------------------------------------------------------------------
Components of Net Assets at February 29, 2000:
Shares of beneficial interest (unlimited
authorization - no par) ........................... $25,798,614
Accumulated net realized loss
on investments .................................... (47,214)
Net unrealized depreciation
of investments .................................... (546,015)
-----------
Total net assets ................................... $25,205,385
===========
- ----------------------
* For Pre-Refunded Bonds, the stated maturity is followed by the year in which
the bond is pre-refunded.
+ Inverse floater represents a security that pays interest at rates that
increase (decrease) with a decrease (increase) in a specific index. Interest
rates disclosed are in effect February 29, 2000.
Summary of Abbreviations:
AMBAC - Insured by the AMBAC Indemnity Corporation
FGIC - Insured by the Financial Guaranty Insurance Company
FHA - Insured by the Federal Housing Authority
FNMA - Insured by the Federal National Mortgage Association
FSA - Insured by the Financial Security Assurance
MBIA - Insured by the Municipal Bond Insurance Association
Net Asset Value and Offering Price Per Share -
Delaware Tax-Free North Dakota Fund
Net asset value A Class (A) $10.36
Sales charge (3.75% of offering price, or
3.86% of amount invested per share) (B) 0.40
------
Offering price $10.76
======
- ----------------------
(A) Net asset value per share, as illustrated, is the estimated amount which
would be paid upon redemption or repurchase of shares.
(B) See the current prospectus for purchases of $100,000 or more.
See accompanying notes
27
<PAGE>
Statements of Net Assets (continued)
DELAWARE TAX-FREE OREGON INSURED FUND
- -------------------------------------
Principal Market
February 29, 2000 (Unaudited) Amount Value
- --------------------------------------------------------------------------------
Municipal Bonds - 99.06%
Certificates of Participation - 5.34%
Oregon State Department Administrative
Services Certificate of Participation-
Series A (AMBAC) 5.00% 5/1/24 ................... $2,000,000 $1,725,880
----------
1,725,880
----------
General Obligation Bonds - 23.15%
Clackamas County Oregon School
District (FGIC) 4.80% 6/1/18 .................... 1,350,000 1,159,636
**Columbia County Oregon School
District (FGIC) 6.006% 6/1/17 ................... 1,000,000 360,190
Hermiston Water Bonds
(AMBAC) 6.20% 8/1/24 ............................ 500,000 503,790
Josephine County Oregon
(AMBAC) 4.875% 6/1/18 ........................... 1,000,000 867,180
Lane County School District #19
(Springfield) (FGIC) 6.00% 10/15/14 ............. 500,000 522,290
Lincoln County School District
(FGIC) 5.25% 6/15/12 ............................ 1,450,000 1,424,147
Malheur County Jail
(MBIA) 6.30% 12/1/12 ............................ 500,000 520,420
Multnomah County School District #3
Park Rose (FGIC) 5.50% 12/1/11 .................. 500,000 502,320
North Unit Irrigation District
(MBIA) 5.75% 6/1/16 ............................. 1,000,000 999,900
Portland (MBIA) 5.75% 6/1/15 ....................... 500,000 501,070
**Umatilla County Oregon School
District #6R Umatilla
(AMBAC) 6.177% 12/15/22 ......................... 200,000 49,980
Washington County School District
(Sherwood) (FSA) #88J 6.10% 6/1/12 .............. 65,000 66,869
---------
7,477,792
---------
Higher Education Revenue Bonds - 14.02%
Central Oregon Community College
(FGIC) 5.90% 6/1/09 ............................. 750,000 767,977
Oregon Health and Education Authority
for Lewis & Clark College
(MBIA) 6.125% 10/1/24 ........................... 1,055,000 1,061,446
Oregon Health and Education Authority
for Reed College
(MBIA) 5.375% 7/1/25 ............................ 1,000,000 920,270
**Oregon Health Sciences University
(MBIA) 6.167% 7/1/21 ............................ 6,500,000 1,778,465
----------
4,528,158
----------
Hospital Revenue Bonds - 3.16%
Western Lane Hospital District for
Sisters of St. Joseph Peace Hospital
(MBIA) 5.8575% 8/1/12 ........................... 1,000,000 1,021,060
----------
1,021,060
----------
<PAGE>
Principal Market
Amount Value
- --------------------------------------------------------------------------------
Municipal Bonds (continued)
Housing Revenue Bonds - 3.35%
Oregon Health, Housing, Educational
and Cultural Facilities Authority for
Pier Park Project
(GNMA) 6.05% 4/1/18 ............................. $1,095,000 $1,080,732
----------
1,080,732
----------
Power Authority Revenue Bonds - 6.05%
Central Lincoln Peoples Utility District
(AMBAC) 5.75% 1/1/15 ............................ 500,000 500,995
Northern Wasco County Peoples Utility
District (FGIC) 5.625% 12/1/22 .................. 1,000,000 951,310
+Puerto Rico Electric Power Authority
Revenue Series DD Inverse Floater
(FSA) 5.11% 7/1/19 .............................. 750,000 502,050
----------
1,954,355
----------
*Pre-Refunded Bonds - 24.18%
Chemeketa Community College
(FGIC) 5.80% 6/1/12-06 .......................... 1,500,000 1,552,980
Eugene Electric Revenue
Series C (MBIA) 5.80% 8/1/22-04 ................. 1,250,000 1,302,163
Lane County School District #19
(Springfield) (MBIA)
6.30% 10/15/14-04 ............................... 500,000 531,725
Multnomah County School
District #39 Corbett
(MBIA) 6.00% 12/1/13-04 ......................... 500,000 521,055
Oregon State Department
Administrative Services Certificate
of Participation-Series A
(AMBAC) 5.80% 5/1/24-07 ......................... 1,000,000 1,043,560
Portland Sewer System Revenue
(FSA) 6.25% 6/1/15-04 ........................... 1,000,000 1,057,650
Tillamook County
(FGIC) 6.25% 1/1/14-05 .......................... 250,000 264,765
Umatilla Pendleton School District
(AMBAC) #016R 6.00% 7/1/14-04 ................... 500,000 524,435
Washington County Education Service
(MBIA) 7.10% 6/1/25-05 .......................... 700,000 765,660
Washington County School District
(Sherwood) (FSA) #88J
6.10% 6/1/12-05 ................................. 235,000 246,334
----------
7,810,327
----------
Transportation Revenue Bonds - 5.76%
Portland Airport Revenue for Portland
International Airport (FGIC)
5.625% 7/1/26 ................................... 2,000,000 1,861,280
----------
1,861,280
----------
28
<PAGE>
Statements of Net Assets (continued)
Principal Market
Delaware Tax-Free Oregon Insured Fund Amount Value
- --------------------------------------------------------------------------------
Municipal Bonds (continued)
Water & Sewer Revenue Bonds - 14.05%
Beaverton Water Revenue
(FSA) 6.125% 6/1/14 ............................. $500,000 $ 513,885
Klamath Falls Water Revenue
(FSA) 6.10% 6/1/14 .............................. 500,000 513,235
Portland Oregon Sewer System
Revenue (MBIA) 4.50% 6/1/18 ..................... 1,855,000 1,532,638
Salem Water & Sewer Revenue
(MBIA) 5.50% 6/1/14 ............................. 1,000,000 990,180
Salem Water & Sewer Revenue
(MBIA) 5.625% 6/1/16 ............................ 1,000,000 986,820
-----------
4,536,758
-----------
Total Municipal Bonds
(cost $32,832,607) .............................. 31,996,342
-----------
Total Market Value of Securities - 99.06%
(cost $32,832,607) .............................. $31,996,342
Receivables and Other Assets
Net of Liablilities - 0.94% ..................... 304,696
-----------
Net Assets Applicable to 3,413,573
Shares Outstanding - 100.00% .................... $32,301,038
===========
Net Asset Value - Delaware Tax-Free
Oregon Insured Fund A Class
($22,977,145 / 2,428,641 shares) ................ $9.46
-----
Net Asset Value - Delaware Tax-Free
Oregon Insured Fund B Class
($7,616,703 / 804,730 shares) ................... $9.46
-----
Net Asset Value - Delaware Tax-Free
Oregon Insured Fund C Class
($1,707,190 / 180,202 shares) ................... $9.47
-----
<PAGE>
Market
Value
- --------------------------------------------------------------------------------
Components of Net Assets at February 29, 2000:
Shares of beneficial interest (unlimited
authorization - no par) ......................... $33,926,748
Accumulated net realized loss
on investments .................................. (789,445)
Net unrealized deprecaition
of investments .................................. (836,265)
-----------
Total net assets ................................... $32,301,038
===========
- ----------------------
* For Pre-Refunded Bonds, the stated maturity is followed by the year in which
the bond is pre-refunded.
** Zero coupon bond - The interest rate shown is the effective yield as of
February 29, 2000.
+ Inverse floater represents a security that pays interest at rates that
increase (decrease) with a decrease (increase) in a specific index. Interest
rates disclosed are in effect February 29, 2000.
Summary of abbreviation:
AMBAC - Insured by the AMBAC Indemnity Corporation
FGIC - Insured by the Financial Guaranty Insurance Company
FSA - Insured by the Financial Security Assurance
GNMA - Insured by the Government National Mortgage Association
MBIA - Insured by the Municipal Bond Insurance Association
Net Asset Value and Offering Price Per Share -
Delaware Tax-Free Oregon Insured Fund
Net asset value A Class (A) ........................ $9.46
Sales charge (3.75% of offering price, or
3.91% of amount invested per share) (B) ......... 0.37
-----
Offering price ..................................... $9.83
=====
- ----------------------
(A) Net asset value per share, as illustrated, is the estimated amount which
would be paid upon redemption or repurchase of shares.
(B) See in the current prospectus for purchases of $100,000 or more.
See accompanying notes
29
<PAGE>
Statements of Net Assets (continued)
DELAWARE TAX-FREE WISCONSIN FUND
- --------------------------------
Principal Market
February 29, 2000 (Unaudited) Amount Value
- --------------------------------------------------------------------------------
Municipal Bonds - 98.43%
Higher Education Revenue Bonds - 2.42%
Madison Community Development
Authority Revenue - Edgewood
College 6.25% 4/1/14 ............................ $ 500,000 $516,080
Puerto Rico Educational Facility
Revenue - Polytechnic University
6.50% 8/1/24 .................................... 285,000 290,652
-----------
806,732
-----------
Hospital Revenue Bonds - 0.58%
Kaukauna Housing Authority
Revenue - St. Paul Home Inc.
6.10% 9/1/07 .................................... 200,000 193,132
-----------
193,132
-----------
Housing Revenue Bonds - 30.20%
Dane County Multifamily Housing
Revenue - Forest Harbor Apartment
Project 5.85% 7/1/11 ............................ 125,000 124,784
Dane County Multifamily Housing
Revenue - Forest Harbor Apartment
Project 5.90% 7/1/12 ............................ 125,000 123,375
Grant County Housing Authority Revenue
Refunding - Orchard Manor
5.35% 7/1/26 .................................... 1,000,000 892,330
Green Bay Housing Authority
Multifamily Housing Revenue -
Moraine Limited - Series A (FHA)
6.15% 12/1/30 ................................... 2,125,000 2,084,072
La Crosse Housing Authority Washburn
Project 6.375% 10/1/16 .......................... 100,000 92,263
La Crosse Housing Authority Washburn
Project 6.50% 10/1/26 ........................... 250,000 225,850
Milwaukee Redevopment Authority
Multifamily Housing 6.30% 8/1/38 ................ 1,455,000 1,432,142
New Berlin Multifamily Housing
Authority Revenue - Pinewood
Creek Project 7.125% 5/1/24 ..................... 500,000 506,750
Puerto Rico Housing Authority
Single Family Mortgage Revenue
6.85% 10/15/23 .................................. 625,000 641,581
Puerto Rico Housing Bank And
Finance Agency Single Family
Mortgage Revenue
(GNMA) 6.25% 4/1/29 ............................. 660,000 668,224
Superior Housing Authority -
St. Francis Project
(GNMA) 6.00% 1/20/22 ............................ 565,000 552,180
Superior Housing Authority -
St. Francis Project
(GNMA) 6.15% 7/20/31 ............................ 835,000 817,882
<PAGE>
Principal Market
Amount Value
------------------------------------------------------------------------------
Municipal Bonds (continued)
Housing Revenue Bonds (continued)
Waukesha Housing Westgrove
Wood Project
(GNMA) 6.00% 12/1/31 ............................ $1,500,000 $ 1,446,330
Wauwatosa Multifamily Housing
Revenue - Harwood Place, Inc.
5.75% 12/1/08 ................................... 480,000 472,517
-----------
10,080,280
-----------
Industrial Development Revenue Bonds - 15.18%
Hartford Community Development
Authority Lease Revenue
6.15% 12/1/09 ................................... 240,000 248,741
Milwaukee Redevelopment Authority
Revenue - Goodwill Industries, Inc.
6.35% 10/1/09 ................................... 2,000,000 2,042,420
Omro Commmunity Development
Authority 5.875% 12/1/11 ........................ 300,000 306,117
Puerto Rico Industrial Medical
Environmental Revenue - PepsiCo
Project 6.25% 11/15/13 .......................... 1,100,000 1,144,594
Two Rivers Community Development
Authority Revenue Architectural
Forest Products 6.35% 12/15/12 .................. 250,000 236,628
West Allis Community Developement
Authority Revenue-Poblocki
Investments, Ltd. 5.90% 5/1/03 .................. 1,080,000 1,089,482
-----------
5,067,982
-----------
Lease/Certificates of Participation - 15.89%
Cudahy Community Development
Authority Revenue 6.00% 6/1/11 .................. 1,000,000 1,022,840
De Forest Redevelopment Lease
Revenue 6.25% 2/1/18 ............................ 1,000,000 1,019,360
Little Chute Community Development
Lease Revenue 5.625% 3/1/19 ..................... 680,000 659,559
Madison Community Development
Authority, Monona Terrace
Community Project 5.80% 3/1/05 .................. 125,000 129,037
Madison Community Development
Authority, Monona Terrace Community
Project 5.90% 3/1/06 ............................ 365,000 377,246
Madison Community Development
Authority, Monona Terrace Community
Project 6.10% 3/1/10 ............................ 1,500,000 1,561,380
Redgranite Wisconsin Community
Development Authority Revenue
5.85% 3/1/18 .................................... 605,000 536,683
-----------
5,306,105
-----------
30
<PAGE>
Statements of Net Assets (continued)
Principal Market
Delaware Tax-Free Wisconsin Fund Amount Value
------------------------------------------------------------------------------
Municipal Bonds (continued)
*Pre-Refunded/Escrowed to Maturity - 15.93%
Puerto Rico Municipal Finance
Authority (FSA) 6.00% 7/1/14-04 ................. $1,800,000 $ 1,909,710
Puerto Rico Telephone Authority
Revenue 5.75% 1/1/11-02 ......................... 285,000 290,871
Southeast Wisconsin Professional
Baseball Park District Sales Tax
Revenue (MBIA) 5.80% 12/15/26-07 ................ 1,000,000 1,043,120
Superior Redevelopment Authority
Revenue-Superior Memorial Hospital
(FHA) 5.80% 5/1/10-02 ........................... 250,000 259,672
Virgin Islands Public Finance Authority
(Escrowed to maturity)
7.30% 10/1/18 ................................... 700,000 818,405
Wisconsin Housing Finance Authority
(FHA) 6.10% 6/1/21-17 ........................... 980,000 994,788
-----------
5,316,566
-----------
Power Authority Revenue Bonds - 6.92%
Guam Power Authority Revenue
Bonds, 99A 5.125% 10/1/29 ....................... 1,000,000 830,490
Puerto Rico Electric Power Authority
Revenue Series U 6.00% 7/1/14 ................... 1,450,000 1,479,638
-----------
2,310,128
-----------
Other Revenue Bonds - 11.31%
**Southeast Wisconsin Professional
Baseball Park District Lease
Certificates (MBIA)
6.056% 12/15/15 ................................. 1,000,000 389,740
**Southeasat Wisconsin Professional
Baseball Park District Sales Revenue
(MBIA) 5.690% 12/15/16 .......................... 1,115,000 406,061
**Southeast Wisconsin Professional
Baseball Park District
Sales Tax Revenue
(MBIA) 6.327% 12/15/24 .......................... 1,500,000 320,130
**Southeast Wisconsin Professional
Baseball Park District
Sales Tax Revenue
(MBIA) 6.337% 12/15/25 .......................... 1,250,000 250,038
Virgin Islands Public Finance Authority
Revenue Sub Lien
Funded Loan Notes Series E
5.875% 10/1/18 .................................. 650,000 601,237
Wisconsin Central District Tax Revenue -
(FSA)-Jr. Dedicated Tax Revenue
Bonds, 98 A 5.25% 12/15/23 ...................... 2,000,000 1,808,740
-----------
3,775,946
-----------
Total Municipal Bonds
(cost $33,392,659) $32,856,871
-----------
<PAGE>
Number Market
of Shares Value
------------------------------------------------------------------------------
Short-Term Investments - 0.04%
Wells Fargo National Tax-Free
Money Market Fund 14,769 $14,769
-----------
Total Short-Term Investments
(cost $14,769) $14,769
-----------
Total Market Value of Securities - 98.47%
(cost $33,407,428) $32,871,640
Receivables and Other Assets
Net of Liabilities - 1.53% 509,687
-----------
Net Assets Applicable to 3,627,245
Shares Outstanding - 100.00% $33,381,327
===========
Net Asset Value - Delaware Tax-Free
Wisconsin Fund A Class
($28,944,678 / 3,145,321 shares) $9.20
-----
Net Asset Value - Delaware Tax-Free
Wisconsin Fund B Class
($3,076,420 / 334,556 shares) $9.20
-----
Net Asset Value - Delaware Tax-Free
Wisconsin Fund C Class
($1,360,229 / 147,368 shares) $9.23
-----
Components of Net Assets at February 29, 2000:
Shares of beneficial interest (unlimited
authorization - no par ) $35,025,432
Accumulated net realized loss
on investments (1,108,317)
Net unrealized depreciation
of investments (535,788)
-----------
Total net assets $33,381,327
===========
- ----------------------
* For Pre-Refunded Bonds, the stated maturity is followed by the year in which
the bond is pre-refunded.
** Zero coupon bond - The interest rate shown is the effective yield as of
February 29, 2000.
Summary of Abbreviations:
FHA - Insured by the Federal Housing Authority
FSA - Insured by Financial Security Assurance
GNMA - Insured by the Government National Mortgage Association
MBIA - Insured by the Municipal Bond Insurance Association
Net Asset Value and Offering Price Per Share -
Delaware Tax-Free Wisconsin Fund
Net asset value A Class (A) $9.20
Sales charge (3.75% of offering price or
3.91% of amount invested per share) (B) 0.36
-----
Offering price $9.56
=====
- ----------------------
(A) Net asset value per share, as illustrated, is the estimated amount which
would be paid upon the redemption or repurchase of shares.
(B) See in the current Prospectus for purchases of $100,000 or more.
See accompanying notes
31
<PAGE>
Statements of Operations
<TABLE>
<CAPTION>
Delaware Delaware Delaware Delaware
Delaware Delaware Delaware Tax-Free Montana Tax-Free Tax-Free Delaware
Tax-Free Tax-Free Tax-Free Missouri Municipal North Oregon Tax-Free
Idaho Iowa Kansas Insured Bond Dakota Insured Wisconsin
Fund Fund Fund Fund Fund Fund Fund Fund
- -----------------------------------------------------------------------------------------------------------------------------------
Six Months Six Months Six Months Six Months 11/2/99* Six Months Six Months Six Months
Ended Ended Ended Ended to Ended Ended Ended
2/29/00 2/29/00 2/29/00 2/29/00 2/29/00 2/29/00 2/29/00 2/29/00
(Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited)
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Investment Income:
Interest ...................... $1,660,508 $1,199,218 $478,375 $1,505,142 $18,530 $821,119 $988,370 $1,049,200
----------- --------- --------- --------- ------ --------- --------- ---------
Expenses:
Management fees ............... 151,850 114,917 42,827 126,736 2,983 73,274 86,521 96,451
Distribution expense .......... 121,661 73,499 37,399 102,550 2,985 39,470 80,644 60,939
Dividend disbursing and transfer
agent fees and expenses .... 22,170 26,406 13,895 30,605 875 13,094 15,749 20,300
Accounting and administration . 11,323 8,019 3,300 4,758 250 5,445 7,079 7,600
Reports and statements
to shareholders ............ 9,950 13,800 5,400 7,680 700 3,149 6,968 10,900
Professional fees ............. 8,819 15,152 3,050 13,091 325 4,825 8,760 5,800
Registration fees ............. 2,000 4,800 1,200 700 125 1,250 200 5,000
Custodian fees ................ 1,503 1,800 1,670 4,100 175 1,850 2,073 2,700
Taxes (other than taxes
on income) ................. 1,450 3,531 1,150 250 175 955 200 2,600
Trustees' fees ................ 685 561 400 565 150 587 615 640
Other ......................... 2,044 2,617 3,709 586 313 51 2,103 2,258
----------- --------- --------- --------- ------ --------- --------- ---------
333,455 265,102 114,000 291,621 9,056 143,950 210,912 215,188
Less expenses absorbed
or waived .................. (5,498) (35,047) (18,019) - (3,325) - (27,591) (22,287)
Less expenses paid indirectly . (640) (483) (180) (586) (20) (308) (400) (405)
----------- --------- --------- --------- ------ --------- --------- ---------
Total operating expenses ...... 327,317 229,572 95,801 291,035 5,711 143,642 182,921 192,496
Interest expense .............. - 1,317 712 12,832 - - - 6,612
----------- --------- --------- --------- ------ --------- --------- ---------
Total expenses ................ 327,317 230,889 96,513 303,867 5,711 143,642 182,921 199,108
----------- --------- --------- --------- ------ --------- --------- ---------
Net Investment Income ......... 1,333,191 968,329 381,862 1,201,275 12,819 677,477 805,449 850,092
----------- --------- --------- --------- ------ --------- --------- ---------
Net Realized and Unrealized
Loss on Investments:
Net realized loss
on investments ............. (388,352) (216,127) (65,572) (81,478) - (693) (196,811) (600,759)
Net change in unrealized
appreciation/depreciation of
investments ................ (2,773,476) (1,120,111) (574,537) (1,525,836) (6,064) (1,161,146) (1,079,487) (705,036)
----------- --------- --------- --------- ------ --------- --------- ---------
Net Realized and Unrealized
Loss on Investments ........ (3,161,828) (1,336,238) (640,109) (1,607,314) (6,064) (1,161,839) (1,276,298) (1,305,795)
----------- --------- --------- --------- ------ --------- --------- ---------
Net Increase (Decrease) in
net assets resulting
from Operations ............ ($1,828,637) ($367,909) ($258,247) ($406,039) $6,755 ($484,362) ($470,849) ($455,703)
=========== ========= ========= ========= ====== ========= ========= =========
</TABLE>
- -----------------------
*Date of commencement of operations.
See accompanying notes
32
<PAGE>
Statements Of Changes In Net Assets
<TABLE>
<CAPTION>
Delaware Tax-Free Delaware Tax-Free Delaware Tax-Free Delaware Tax-Free
Idaho Fund Iowa Fund Kansas Fund Missouri Insured Fund
- ------------------------------------------------------------------------------------------------------------------------------------
Six Months Year Ended Six Months Year Ended Six Months Year Ended Six Months Year Ended
Ended 2/29/00 8/31/99 Ended 2/29/00 8/31/99 Ended 2/29/00 8/31/99 Ended 2/29/00 8/31/99
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Increase (Decrease) in Net
Assets from Operations:
Net investment income .......... $1,333,191 $2,362,432 $968,329 $1,928,680 $381,862 $798,618 $1,201,275 $2,502,675
Net realized gain (loss)
on investments .............. (388,352) 3,735 (216,127) 4,469 (65,572) (39,464) (81,478) 71,644
Net change in unrealized
appreciation/depreciation
of investments .............. (2,773,476) (3,206,434) (1,120,111) (2,113,084) (574,537) (743,441) (1,525,836) (2,815,501)
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
Net increase (decrease) in net
assets resulting
from operations ............. (1,828,637) (840,267) (367,909) (179,935) (258,247) 15,713 (406,039) (241,182)
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
Distributions to Shareholders
From:
Net investment income:
A Class ..................... (1,051,372) (1,935,872) (855,856) (1,719,461) (282,680) (605,332) (986,599) (2,067,634)
B Class ..................... (207,809) (335,490) (87,684) (162,016) (98,793) (178,626) (210,175) (427,632)
C Class ..................... (73,944) (87,683) (24,789) (47,203) (7,569) (7,598) (4,766) (7,409)
Net realized gain on
investments:
A Class ..................... - - - - - (38,685) - -
B Class ..................... - - - - - (12,054) - -
C Class ..................... - - - - - (373) - -
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
(1,333,125) (2,359,045) (968,329) (1,928,680) (389,042) (842,668) (1,201,540) (2,502,675)
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
Capital Share Transactions:
Proceeds from shares sold:
A Class ..................... 3,319,400 9,856,564 1,160,240 3,458,664 543,737 2,372,007 1,189,702 1,609,116
B Class ..................... 704,616 4,177,758 267,523 1,357,796 193,970 1,912,350 259,957 511,000
C Class ..................... 1,002,195 2,255,562 63,806 552,911 75,002 354,261 60,002 172,422
Net asset value of shares issued
upon reinvestment of
distributions from net
investment income and net
realized gain on investments:
A Class ..................... 720,829 1,311,933 529,213 1,076,296 143,759 317,555 490,339 1,064,643
B Class ..................... 146,292 223,743 58,801 107,503 73,475 131,928 125,647 257,250
C Class ..................... 60,320 71,289 17,414 31,942 7,051 6,220 2,952 4,334
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
5,953,652 17,896,849 2,096,997 6,585,112 1,036,994 5,094,321 2,128,599 3,618,765
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
Cost of shares repurchased:
A Class ..................... (8,823,722) (4,222,098) (2,786,861) (4,250,442) (1,577,101) (3,158,135) (3,222,533) (5,087,919)
B Class ..................... (843,345) (1,125,972) (521,729) (557,678) (896,939) (596,102) (694,746) (970,200)
C Class ..................... (510,449) (475,466) (182,095) (444,977) (292,289) (15,377) (45,653) (44,506)
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
(10,177,516) (5,823,536) (3,490,685) (5,253,097) (2,766,329) (3,769,614) (3,962,932) (6,102,625)
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
Increase (decrease) in net assets
derived from capital share
transactions ................ (4,223,864) 12,073,313 (1,393,688) 1,332,015 (1,729,335) 1,324,707 (1,834,333) (2,483,860)
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
Net Increase (Decrease) in
Net Assets .................. (7,385,626) 8,874,001 (2,729,926) (776,600) (2,376,624) 497,752 (3,441,912) (5,227,717)
Net Assets:
Beginning of period ............ 57,909,876 49,035,875 43,703,122 44,479,722 16,866,410 16,368,658 53,139,881 58,367,598
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
End of period .................. $50,524,250 $57,909,876 $40,973,196 $43,703,122 $14,489,786 $16,866,410 $49,697,969 $53,139,881
=========== =========== =========== =========== =========== =========== =========== ===========
</TABLE>
See accompanying notes
33
<PAGE>
Statements of Changes in Net Assets (continued)
<TABLE>
<CAPTION>
Delaware
Montana Municipal Delaware Tax-Free Delaware Tax-Free Delaware Tax-Free
Bond Fund North Dakota Fund Oregon Insured Fund Wisconsin Fund
- -----------------------------------------------------------------------------------------------------------------------------------
11/2/99* Six Months Year Ended Six Months Year Ended Six Months Year Ended
to 2/29/00 Ended 2/29/00 8/31/99 Ended 2/29/00 8/31/99 Ended 2/29/00 8/31/99
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
<S> <C> <C> <C> <C> <C> <C> <C>
Increase (Decrease) in Net Assets
from Operations:
Net investment income .................. $12,819 $677,477 $1,455,799 $805,449 $1,540,396 $850,092 $1,773,222
Net realized gain (loss)
on investments ...................... - (693) 8,108 (196,811) 19,477 (600,759) (13,496)
Net change in unrealized
appreciation/depreciation
of investments ...................... (6,064) (1,161,146) (1,549,466) (1,079,487) (2,333,795) (705,036) (2,175,827)
---------- ----------- ----------- ----------- ----------- ----------- -----------
Net increase (decrease) in
net assets resulting
from operations ..................... 6,755 (484,362) (85,559) (470,849) (773,922) (455,703) (416,101)
---------- ----------- ----------- ----------- ----------- ----------- -----------
Distributions to Shareholders From:
Net investment income:
A Class ............................. (7,881) (648,884) (1,406,694) (611,671) (1,225,917) (755,340) (1,605,902)
B Class ............................. (3,637) (21,710) (43,161) (159,294) (261,267) (64,914) (112,132)
C Class ............................. (1,566) (6,883) (5,944) (34,484) (53,212) (29,838) (55,188)
Net realized gain on investments:
A Class ............................. - - (110,320) - - - -
B Class ............................. - - (3,890) - - - -
C Class ............................. - - (110) - - - -
---------- ----------- ----------- ----------- ----------- ----------- -----------
(13,084) (677,477) (1,570,119) (805,449) (1,540,396) (850,092) (1,773,222)
---------- ----------- ----------- ----------- ----------- ----------- -----------
Capital Share Transactions:
Proceeds from shares sold:
A Class ............................. 1,209,012 164,510 1,440,696 740,223 7,214,292 988,458 4,882,591
B Class ............................. 602,692 81,202 208,846 456,600 2,756,229 233,438 1,147,384
C Class ............................. 248,948 62 304,077 481,024 722,342 11,610 554,885
Net asset value of shares issued
upon reinvestment of
distributions from net
investment income and net
realized gain on investments:
A Class ............................. 5,946 398,644 910,805 369,114 734,060 464,096 905,575
B Class ............................. 2,672 12,407 26,551 80,561 141,931 38,101 67,376
C Class ............................. 655 6,879 5,787 25,576 39,399 25,989 48,880
---------- ----------- ----------- ----------- ----------- ----------- -----------
2,069,925 663,704 2,896,762 2,153,098 11,608,253 1,761,692 7,606,691
---------- ----------- ----------- ----------- ----------- ----------- -----------
Cost of shares repurchased:
A Class ............................. - (2,587,307) (4,235,735) (4,717,036) (3,023,459) (4,781,348) (4,934,768)
B Class ............................. - (111,315) (107,320) (638,523) (441,663) (285,469) (457,430)
C Class ............................. - - (1,454) (340,638) (54,713) (132,816) (292,994)
---------- ----------- ----------- ----------- ----------- ----------- -----------
- (2,698,622) (4,344,509) (5,696,197) (3,519,835) (5,199,633) (5,685,192)
---------- ----------- ----------- ----------- ----------- ----------- -----------
Increase (decrease) in net assets
derived from capital share
transactions ........................ 2,069,925 (2,034,918) (1,447,747) (3,543,099) 8,088,418 (3,437,941) 1,921,499
---------- ----------- ----------- ----------- ----------- ----------- -----------
Net Increase (Decrease) in
Net Assets .......................... 2,063,596 (3,196,757) (3,103,425) (4,819,397) 5,774,100 (4,743,736) (267,824)
Net Assets:
Beginning of period .................... - 28,402,142 31,505,567 37,120,435 31,346,335 38,125,063 38,392,887
---------- ----------- ----------- ----------- ----------- ----------- -----------
End of period .......................... $2,063,596 $25,205,385 $28,402,142 $32,301,038 $37,120,435 $33,381,327 $38,125,063
========== =========== =========== =========== =========== =========== ===========
</TABLE>
- -----------------------
*Date of commencement of operations.
See accompanying notes
34
<PAGE>
Financial Highlights
<TABLE>
<CAPTION>
Selected data for each share of the Fund outstanding
throughout each period were as follows: Delaware Tax-Free Idaho Fund - Class A
- ----------------------------------------------------------------------------------------------------------------------------------
Six Months Year Eight Months Year Year Period
Ended Ended Ended Ended Ended 1/4/95(3)
2/29/00(1) 8/31/99 8/31/98(1) 12/31/97(2) 12/31/96 to 12/31/95
(Unaudited)
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period ................ $10.940 $11.560 $11.450 $10.910 $11.020 $10.000
Income (loss) from investment operations:
Net investment income ............................. 0.263 0.517 0.356 0.551 0.580 0.600
Net realized and unrealized gain
(loss) on investments ............................ (0.600) (0.620) 0.115 0.552 (0.120) 1.100
---------------------------------------------------------------------
Total from investment operations .................. (0.337) (0.103) 0.471 1.103 0.460 1.700
---------------------------------------------------------------------
Less dividends and distributions:
Dividends from net
investment income ................................ (0.263) (0.517) (0.356) (0.563) (0.570) (0.600)
Distributions from net realized
gain on investments .............................. - - (0.005) - - (0.080)
---------------------------------------------------------------------
Total dividends and distributions ................. (0.263) (0.517) (0.361) (0.563) (0.570) (0.680)
---------------------------------------------------------------------
Net asset value, end of period ...................... $10.340 $10.940 $11.560 $11.450 $10.910 $11.020
=====================================================================
Total return(4) ..................................... (3.10%) (0.99%) 4.19% 10.41% 4.36% 17.48%
Ratios and supplemental data:
Net assets, end of period
(000 omitted) .................................... $37,095 $44,299 $39,843 $33,788 $27,684 $13,540
Ratio of expenses to
average net assets ............................... 1.00% 1.00% 0.95% 0.87% 0.60% 0.26%(5)
Ratio of expenses to average net assets
prior to expense limitation and
expenses paid indirectly ......................... 1.02% 1.04% 1.02% 1.02% 1.10% 1.25%(5)
Ratio of net investment income to
average net assets ............................... 4.97% 4.52% 4.65% 4.98% 5.29% 5.24%(5)
Ratio of net investment income to average
net assets prior to expense limitation
and expenses paid indirectly ..................... 4.95% 4.48% 4.58% 4.83% 4.79% 4.25%(5)
Portfolio turnover .................................. 11% 2% 8% 19% 35% 42%
</TABLE>
- ---------------
(1) Ratios have been annualized and total return has not been annualized.
(2) Commencing May 1, 1997, Delaware Management Company replaced Voyageur Fund
Managers, Inc. as the Fund's investment manager.
(3) Commencement of operations.
(4) 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.
(5) Annualized.
See accompanying notes
35
<PAGE>
Financial Highlights (continued)
<TABLE>
<CAPTION>
Selected data for each share of the Fund outstanding
throughout each period were as follows: Delaware Tax-Free Idaho Fund - Class B
- ----------------------------------------------------------------------------------------------------------------------------------
Six Months Year Eight Months Year Year Period
Ended Ended Ended Ended Ended 3/16/95(3)
2/29/00(1) 8/31/99 8/31/98(1) 12/31/97(2) 12/31/96 to 12/31/95
(Unaudited)
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period ................ $10.920 $11.550 $11.440 $10.890 $11.010 $10.500
Income (loss) from investment operations:
Net investment income ............................. 0.223 0.432 0.298 0.487 0.520 0.420
Net realized and unrealized gain
(loss) on investments ............................ (0.590) (0.630) 0.117 0.560 (0.130) 0.590
---------------------------------------------------------------------
Total from investment operations .................. (0.367) (0.198) 0.415 1.047 0.390 1.010
---------------------------------------------------------------------
Less dividends and distributions:
Dividends from net
investment income ................................ (0.223) (0.432) (0.300) (0.497) (0.510) (0.420)
Distributions from net realized
gain on investments .............................. - - (0.005) - - (0.080)
---------------------------------------------------------------------
Total dividends and distributions ................. (0.223) (0.432) (0.305) (0.497) (0.510) (0.500)
---------------------------------------------------------------------
Net asset value, end of period ...................... $10.330 $10.920 $11.550 $11.440 $10.890 $11.010
=====================================================================
Total return(4) ..................................... (3.37%) (1.82%) 3.68% 9.87% 3.75% 9.86%
Ratios and supplemental data:
Net assets, end of period
(000 omitted) .................................... $9,656 $10,199 $7,474 $6,827 $4,945 $1,977
Ratio of expenses to
average net assets ............................... 1.75% 1.75% 1.70% 1.46% 1.11% 0.79%(5)
Ratio of expenses to average net assets
prior to expense limitation and
expenses paid indirectly ......................... 1.77% 1.79% 1.77% 1.61% 1.85% 1.90%(5)
Ratio of net investment income to
average net assets ............................... 4.22% 3.77% 3.90% 4.39% 4.78% 4.68%(5)
Ratio of net investment income to average
net assets prior to expense limitation
and expenses paid indirectly ..................... 4.20% 3.73% 3.83% 4.24% 4.04% 3.57%(5)
Portfolio turnover .................................. 11% 2% 8% 19% 35% 42%
</TABLE>
- -------------
(1) Ratios have been annualized and total return has not been annualized.
(2) Commencing May 1, 1997, Delaware Management Company replaced Voyageur Fund
Managers, Inc. as the Fund's investment manager.
(3) Commencement of operations.
(4) 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.
(5) Annualized.
See accompanying notes
36
<PAGE>
Financial Highlights (continued)
<TABLE>
<CAPTION>
Selected data for each share of the Fund outstanding
throughout each period were as follows: Delaware Tax-Free Idaho Fund - Class C
- ----------------------------------------------------------------------------------------------------------------------------------
Six Months Year Eight Months Year Year Period
Ended Ended Ended Ended Ended 1/11/95(3)
2/29/00(1) 8/31/99 8/31/98(1) 12/31/97(2) 12/31/96 to 12/31/95
(Unaudited)
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period .................. $10.920 $11.550 $11.430 $10.900 $11.020 $10.040
Income (loss) from investment operations:
Net investment income ............................... 0.224 0.432 0.302 0.459 0.500 0.500
Net realized and unrealized gain
(loss) on investments .............................. (0.591) (0.630) 0.123 0.549 (0.130) 1.060
---------------------------------------------------------------------
Total from investment operations .................... (0.367) (0.198) 0.425 1.008 0.370 1.560
---------------------------------------------------------------------
Less dividends and distributions:
Dividends from net
investment income .................................. (0.223) (0.432) (0.300) (0.478) (0.490) (0.500)
Distributions from net realized
gain on investments ................................ - - (0.005) - - (0.080)
---------------------------------------------------------------------
Total dividends and distributions ..................... (0.223) (0.432) (0.305) (0.478) (0.490) (0.580)
---------------------------------------------------------------------
Net asset value, end of period ........................ $10.330 $10.920 $11.550 $11.430 $10.900 $11.020
=====================================================================
Total return(4) ....................................... (3.37%) (1.82%) 3.77% 9.49% 3.48% 15.81%
Ratios and supplemental data:
Net assets, end of period
(000 omitted) ...................................... $3,773 $3,411 $1,719 $1,125 $822 $789
Ratio of expenses to
average net assets ................................. 1.75% 1.75% 1.70% 1.62% 1.33% 1.05%(5)
Ratio of expenses to average net assets
prior to expense limitation and
expenses paid indirectly ........................... 1.77% 1.79% 1.77% 1.77% 1.82% 2.00%(5)
Ratio of net investment income to
average net assets ................................. 4.22% 3.77% 3.90% 4.23% 4.57% 4.48%(5)
Ratio of net investment income to average
net assets prior to expense limitation
and expenses paid indirectly ....................... 4.20% 3.73% 3.83% 4.08% 4.08% 3.53%(5)
Portfolio turnover .................................... 11% 2% 8% 19% 35% 42%
</TABLE>
- ------------
(1) Ratios have been annualized and total return has not been annualized.
(2) Commencing May 1, 1997, Delaware Management Company replaced Voyageur Fund
Managers, Inc. as the Fund's investment manager.
(3) Commencement of operations.
(4) 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.
(5) Annualized.
See accompanying notes
37
<PAGE>
Financial Highlights (continued)
<TABLE>
<CAPTION>
Selected data for each share of the Fund outstanding
throughout each period were as follows: Delaware Tax-Free Iowa Fund - Class A
- ----------------------------------------------------------------------------------------------------------------------------------
Six Months Year Eight Months Year Year Year
Ended Ended Ended Ended Ended Ended
2/29/00(1) 8/31/99 8/31/98(1) 12/31/97(2) 12/31/96 12/31/95
(Unaudited)
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period .................... $9.700 $10.160 $10.060 $9.620 $9.830 $8.560
Income (loss) from investment operations:
Net investment income ................................. 0.224 0.440 0.294 0.449 0.440 0.450
Net realized and unrealized gain
(loss) on investments ................................ (0.300) (0.460) 0.100 0.440 (0.210) 1.290
---------------------------------------------------------------------
Total from investment operations ...................... (0.076) (0.020) 0.394 0.889 0.230 1.740
---------------------------------------------------------------------
Less dividends:
Dividends from net
investment income .................................... (0.224) (0.440) (0.294) (0.449) (0.440) (0.470)
---------------------------------------------------------------------
Total dividends ....................................... (0.224) (0.440) (0.294) (0.449) (0.440) (0.470)
---------------------------------------------------------------------
Net asset value, end of period .......................... $9.400 $9.700 $10.160 $10.060 $9.620 $9.830
=====================================================================
Total return(3) ......................................... (0.77%) (0.26%) 3.98% 9.49% 2.56% 20.80%
Ratios and supplemental data:
Net assets, end of period
(000 omitted) ........................................ $35,546 $37,807 $39,345 $38,343 $40,037 $42,374
Ratio of expenses to
average net assets ................................... 1.00% 1.00% 0.96% 0.91% 0.92% 0.72%
Ratio of expenses to average net assets
prior to expense limitation
and expenses paid indirectly ......................... 1.17% 1.08% 1.06% 0.97% 1.06% 1.06%
Ratio of net investment income to
average net assets ................................... 4.73% 4.36% 4.38% 4.62% 4.68% 4.88%
Ratio of net investment income to average
net assets prior to expense limitation
and expenses paid indirectly ......................... 4.56% 4.28% 4.28% 4.56% 4.54% 4.54%
Portfolio turnover ...................................... 0% 2% 13% 14% 14% 21%
</TABLE>
- -------------
(1) Ratios have been annualized and total return has not been annualized.
(2) Commencing May 1, 1997, Delaware Management Company replaced Voyageur Fund
Managers, Inc. as the Fund's investment manager.
(3) 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.
See accompanying notes
38
<PAGE>
Financial Highlights (continued)
<TABLE>
<CAPTION>
Selected data for each share of the Fund outstanding
throughout each period were as follows: Delaware Tax-Free Iowa Fund - Class B
- ----------------------------------------------------------------------------------------------------------------------------------
Six Months Year Eight Months Year Year Period
Ended Ended Ended Ended Ended 3/24/95(3)
2/29/00(1) 8/31/99 8/31/98(1) 12/31/97(2) 12/31/96 to 12/31/95
(Unaudited)
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period ................. $9.700 $10.160 $10.060 $9.610 $9.830 $9.180
Income (loss) from investment operations:
Net investment income .............................. 0.188 0.363 0.243 0.366 0.380 0.310
Net realized and unrealized gain
(loss) on investments ............................. (0.300) (0.460) 0.100 0.457 (0.220) 0.640
---------------------------------------------------------------------
Total from investment operations ................... (0.112) (0.097) 0.343 0.823 0.160 0.950
---------------------------------------------------------------------
Less dividends:
Dividends from net
investment income ................................. (0.188) (0.363) (0.243) (0.373) (0.380) (0.300)
---------------------------------------------------------------------
Total dividends ...................................... (0.188) (0.363) (0.243) (0.373) (0.380) (0.300)
---------------------------------------------------------------------
Net asset value, end of period ....................... $9.400 $9.700 $10.160 $10.060 $9.610 $9.830
=====================================================================
Total return(4) ...................................... (1.15%) (1.03%) 3.46% 8.75% 1.76% 10.62%
Ratios and supplemental data:
Net assets, end of period
(000 omitted) ..................................... $4,261 $4,600 $3,910 $2,910 $1,645 $819
Ratio of expenses to average
net assets ........................................ 1.75% 1.75% 1.71% 1.67% 1.61% 1.28%(5)
Ratio of expenses to average net assets
prior to expense limitation and
expenses paid indirectly .......................... 1.92% 1.83% 1.81% 1.73% 1.81% 1.65%(5)
Ratio of net investment income to
average net assets ................................ 3.98% 3.61% 3.63% 3.86% 3.97% 4.06%(5)
Ratio of net investment income to average
net assets prior to expense limitation
and expenses paid indirectly ...................... 3.81% 3.53% 3.53% 3.80% 3.77% 3.69%(5)
Portfolio turnover ................................... 0% 2% 13% 14% 14% 21%
</TABLE>
- ----------
(1) Ratios have been annualized and total return has not been annualized.
(2) Commencing May 1, 1997, Delaware Management Company replaced Voyageur Fund
Managers, Inc. as the Fund's investment manager.
(3) Commencement of operations.
(4) 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.
(5) Annualized.
See accompanying notes
39
<PAGE>
Financial Highlights (continued)
<TABLE>
<CAPTION>
Selected data for each share of the Fund outstanding
throughout each period were as follows: Delaware Tax-Free Iowa Fund - Class C
- -----------------------------------------------------------------------------------------------------------------------------------
Six Months Year Eight Months Year Year Period
Ended Ended Ended Ended Ended 1/4/95(3)
2/29/00(1) 8/31/99 8/31/98(1) 12/31/97(2) 12/31/96 to 12/31/95
(Unaudited)
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period ................... $9.700 $10.160 $10.060 $9.610 $9.830 $8.550
Income (loss) from investment operations:
Net investment income ................................ 0.188 0.363 0.243 0.360 0.360 0.370
Net realized and unrealized gain
(loss) on investments ............................... (0.300) (0.460) 0.100 0.456 (0.220) 1.280
--------------------------------------------------------------------
Total from investment operations ..................... (0.112) (0.097) 0.343 0.816 0.140 1.650
--------------------------------------------------------------------
Less dividends:
Dividends from net investment
income .............................................. (0.188) (0.363) (0.243) (0.366) (0.360) (0.370)
--------------------------------------------------------------------
Total dividends ........................................ (0.188) (0.363) (0.243) (0.366) (0.360) (0.370)
--------------------------------------------------------------------
Net asset value, end of period ......................... $9.400 $9.700 $10.160 $10.060 $9.610 $9.830
====================================================================
Total return(4) ........................................ (1.14%) (1.03%) 3.46% 8.68% 1.56% 19.66%
Ratios and supplemental data:
Net assets, end of period
(000 omitted) ....................................... $1,167 $1,296 $1,225 $871 $670 $462
Ratio of expenses to average
net assets .......................................... 1.75% 1.75% 1.71% 1.74% 1.75% 1.61%(5)
Ratio of expenses to average net assets
prior to expense limitation and
expenses paid indirectly ............................ 1.92% 1.83% 1.81% 1.80% 1.81% 1.72%(5)
Ratio of net investment income to
average net assets .................................. 3.98% 3.61% 3.63% 3.79% 3.82% 3.74%(5)
Ratio of net investment income to average
net assets prior to expense limitation
and expenses paid indirectly ........................ 3.81% 3.53% 3.53% 3.73% 3.76% 3.63%(5)
Portfolio turnover ..................................... 0% 2% 13% 14% 14% 21%
</TABLE>
- ----------
(1) Ratios have been annualized and total return has not been annualized.
(2) Commencing May 1, 1997, Delaware Management Company replaced Voyageur Fund
Managers, Inc. as the Fund's investment manager.
(3) Commencement of operations.
(4) 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.
(5) Annualized.
See accompanying notes
40
<PAGE>
Financial Highlights (continued)
<TABLE>
<CAPTION>
Selected data for each share of the Fund outstanding
throughout each period were as follows: Delaware Tax-Free Kansas Fund - Class A
- ---------------------------------------------------------------------------------------------------------------------------------
Six Months Year Eight Months Year Year Year
Ended Ended Ended Ended Ended Ended
2/29/00(1) 8/31/99 8/31/98(1) 12/31/97(2) 12/31/96 12/31/95
(Unaudited)
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period .................... $10.640 $11.160 $11.060 $10.560 $10.730 $ 9.500
Income (loss) from investment
operations:
Net investment income ................................. 0.270 0.538 0.351 0.526 0.520 0.560
Net realized and unrealized gain
(loss) on investments ................................ (0.430) (0.491) 0.100 0.506 (0.170) 1.220
---------------------------------------------------------------------
Total from investment operations ...................... (0.160) 0.047 0.451 1.032 0.350 1.780
---------------------------------------------------------------------
Less dividends and distributions:
Dividends from net
investment income .................................... (0.270) (0.534) (0.351) (0.532) (0.520) (0.550)
Distributions from net realized
gain on investments .................................. - (0.033) - - - -
---------------------------------------------------------------------
Total dividends and distributions ..................... (0.270) (0.567) (0.351) (0.532) (0.520) (0.550)
---------------------------------------------------------------------
Net asset value, end of period .......................... $10.210 $10.640 $11.160 $11.060 $10.560 $10.730
=====================================================================
Total return(3) ......................................... (1.50%) 0.35% 4.14% 10.06% 3.43% 19.13%
Ratios and supplemental data:
Net assets, end of period
(000 omitted) ........................................ $10,158 $11,498 $12,548 $10,663 $10,176 $10,677
Ratio of expenses to average
net assets ........................................... 1.01% 0.98% 0.89% 0.84% 0.83% 0.37%
Ratio of expenses to average net
assets prior to expense limitation
and expenses paid indirectly ......................... 1.24% 1.06% 0.99% 1.03% 1.21% 1.11%
Ratio of net investment income to
average net assets ................................... 5.12% 4.86% 4.75% 4.92% 4.97% 5.32%
Ratio of net investment income to
average net assets prior to
expense limitation and
expenses paid indirectly ............................. 4.89% 4.78% 4.65% 4.73% 4.59% 4.58%
Portfolio turnover .................................... 10% 28% 40% 30% 56% 19%
</TABLE>
- -------------
(1) Ratios have been annualized and total return has not been annualized.
(2) Commencing May 1, 1997, Delaware Management Company replaced Voyageur Fund
Managers, Inc. as the Fund's investment manager.
(3) 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.
See accompanying notes
41
<PAGE>
Financial Highlights (continued)
<TABLE>
<CAPTION>
Selected data for each share of the Fund outstanding
throughout each period were as follows: Delaware Tax-Free Kansas Fund - Class B
- -----------------------------------------------------------------------------------------------------------------------------------
Six Months Year Eight Months Year Year Period
Ended Ended Ended Ended Ended 4/8/95(3)
2/29/00(1) 8/31/99 8/31/98(1) 12/31/97(2) 12/31/96 to 12/31/95
(Unaudited)
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period ................... $10.650 $11.180 $11.080 $10.570 $10.740 $10.190
Income (loss) from investment operations:
Net investment income ................................ 0.231 0.455 0.296 0.440 0.450 0.340
Net realized and unrealized gain
(loss) on investments ............................. (0.420) (0.501) 0.099 0.516 (0.170) 0.540
---------------------------------------------------------------------
Total from investment operations ..................... (0.189) (0.046) 0.395 0.956 0.280 0.880
---------------------------------------------------------------------
Less dividends and distributions:
Dividends from net
investment income ................................... (0.231) (0.451) (0.295) (0.446) (0.450) (0.330)
Distributions from net realized gain
on investments ...................................... - (0.033) - - - -
---------------------------------------------------------------------
Total dividends and distributions .................... (0.231) (0.484) (0.295) (0.446) (0.450) (0.330)
---------------------------------------------------------------------
Net asset value, end of period ......................... $10.230 $10.650 $11.180 $11.080 $10.570 $10.740
=====================================================================
Total return(4)......................................... (1.78%) (0.49%) 3.62% 9.28% 2.69% 8.76%
Ratios and supplemental data:
Net assets, end of period
(000 omitted) ....................................... $4,097 $4,910 $3,694 $3,452 $2,402 $677
Ratio of expenses to average
net assets .......................................... 1.76% 1.73% 1.64% 1.61% 1.61% 0.94%(5)
Ratio of expenses to average net assets
prior to expense limitation and
expenses paid indirectly ............................ 1.99% 1.81% 1.74% 1.80% 2.00% 1.68%(5)
Ratio of net investment income to
average net assets .................................. 4.37% 4.11% 4.00% 4.15% 4.16% 4.63%(5)
Ratio of net investment income to average
net assets prior to expense limitation
and expenses paid indirectly ........................ 4.14% 4.03% 3.90% 3.96% 3.77% 3.89%(5)
Portfolio turnover ................................... 10% 28% 40% 30% 56% 19%
</TABLE>
- -----------
(1) Ratios have been annualized and total return has not been annualized.
(2) Commencing May 1, 1997, Delaware Management Company replaced Voyageur Fund
Managers, Inc. as the Fund's investment manager.
(3) Commencement of operations.
(4) 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.
(5) Annualized.
See accompanying notes
42
<PAGE>
Financial Highlights (continued)
<TABLE>
<CAPTION>
Selected data for each share of the Fund outstanding
throughout each period were as follows: Delaware Tax-Free Kansas Fund - Class C
- -----------------------------------------------------------------------------------------------------------------------------------
Six Months Year Eight Months Year Year Period
Ended Ended Ended Ended Ended 4/12/95(3)
2/29/00(1) 8/31/99 8/31/98(1) 12/31/97(2) 12/31/96 to 12/31/95
(Unaudited)
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period .................... $10.640 $11.160 $11.050 $10.550 $10.720 $10.200
Income (loss) from investment operations:
Net investment income ................................. 0.231 0.453 0.296 0.439 0.430 0.320
Net realized and unrealized gain
(loss) on investments ................................ (0.430) (0.490) 0.110 0.504 (0.170) 0.510
---------------------------------------------------------------------
Total from investment operations ...................... (0.199) (0.037) 0.406 0.943 0.260 0.830
---------------------------------------------------------------------
Less dividends and distributions:
Dividends from net
investment income .................................... (0.231) (0.450) (0.296) (0.443) (0.430) (0.310)
Distributions from net realized gain
on investments ....................................... - (0.033) - - - -
---------------------------------------------------------------------
Total dividends and distributions ..................... (0.231) (0.483) (0.296) (0.443) (0.430) (0.310)
---------------------------------------------------------------------
Net asset value, end of period .......................... $10.210 $10.640 $11.160 $11.050 $10.550 $10.720
=====================================================================
Total return(4) ......................................... (1.87%) (0.40%) 3.72% 9.17% 2.52% 8.29%
Ratios and supplemental data:
Net assets, end of period
(000 omitted) ........................................ $235 $458 $127 $108 $90 $40
Ratio of expenses to average
net assets ........................................... 1.76% 1.72% 1.64% 1.64% 1.77% 1.27%(5)
Ratio of expenses to average net
assets prior to expense limitation
and expenses paid indirectly ......................... 1.99% 1.80% 1.74% 1.83% 2.00% 1.79%(5)
Ratio of net investment income to
average net assets ................................... 4.37% 4.11% 4.00% 4.12% 4.02% 4.21%(5)
Ratio of net investment income to average
net assets prior to expense limitation
and expenses paid indirectly ......................... 4.14% 4.03% 3.90% 3.93% 3.79% 3.69%(5)
Portfolio turnover .................................... 10% 26% 40% 30% 56% 19%
</TABLE>
- -----------
(1) Ratios have been annualized and total return has not been annualized.
(2) Commencing May 1, 1997, Delaware Management Company replaced Voyageur Fund
Managers, Inc. as the Fund's investment manager.
(3) Commencement of operations.
(4) 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.
(5) Annualized.
43
<PAGE>
Financial Highlights (continued)
<TABLE>
<CAPTION>
Selected data for each share of the Fund outstanding
throughout each period were as follows: Delaware Tax-Free Missouri Insured Fund - Class A
- ---------------------------------------------------------------------------------------------------------------------------------
Six Months Year Eight Months Year Year Year
Ended Ended Ended Ended Ended Ended
2/29/00(1) 8/31/99 8/31/98(1) 12/31/97(2) 12/31/96 12/31/95
(Unaudited)
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period ................... $10.340 $10.870 $10.810 $10.370 $10.540 $9.270
Income (loss) from investment
operations:
Net investment income ................................ 0.247 0.498 0.333 0.504 0.520 0.520
Net realized and unrealized gain
(loss) on investments ................................ (0.320) (0.530) 0.060 0.446 (0.180) 1.290
---------------------------------------------------------------------
Total from investment operations ..................... (0.073) (0.032) 0.393 0.950 0.340 1.810
---------------------------------------------------------------------
Less dividends:
Dividends from net
investment income ................................... (0.247) (0.498) (0.333) (0.510) (0.510) (0.540)
---------------------------------------------------------------------
Total dividends ...................................... (0.247) (0.498) (0.333) (0.510) (0.510) (0.540)
---------------------------------------------------------------------
Net asset value, end of period ......................... $10.020 $10.340 $10.870 $10.810 $10.370 $10.540
=====================================================================
Total return(3) ........................................ (0.71%) (0.38%) 3.70% 9.43% 3.41% 19.96%
Ratios and supplemental data:
Net assets, end of period
(000 omitted) ....................................... $39,514 $42,337 $46,939 $48,565 $49,301 $50,211
Ratio of expenses to average
net assets .......................................... 1.04% 0.97% 0.92% 0.91% 0.71% 0.50%
Ratio of expenses to average net
assets prior to expense limitation
and expenses paid indirectly ........................ 1.04% 1.02% 1.02% 0.93% 1.03% 1.07%
Ratio of net investment income to
average net assets .................................. 4.88% 4.62% 4.64% 4.81% 5.05% 5.25%
Ratio of net investment income to
average net assets prior to
expense limitation and
expenses paid indirectly ............................ 4.88% 4.57% 4.54% 4.79% 4.73% 4.68%
Portfolio turnover ................................... 0% 7% 18% 12% 28% 31%
</TABLE>
- -------------
(1) Ratios have been annualized and total return has not been annualized.
(2) Commencing May 1, 1997, Delaware Management Company replaced Voyageur Fund
Managers, Inc. as the Fund's investment manager.
(3) 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.
See accompanying notes
44
<PAGE>
Financial Highlights (continued)
<TABLE>
<CAPTION>
Selected data for each share of the Fund outstanding
throughout each period were as follows: Delaware Tax-Free Missouri Insured Fund - Class B
- ---------------------------------------------------------------------------------------------------------------------------------
Six Months Year Eight Months Year Year Year
Ended Ended Ended Ended Ended Ended
2/29/00(1) 8/31/99 8/31/98(1) 12/31/97(2) 12/31/96 12/31/95
(Unaudited)
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period .................... $10.340 $10.870 $10.810 $10.370 $10.540 $9.270
Income (loss) from investment
operations:
Net investment income ................................. 0.209 0.416 0.279 0.425 0.460 0.480
Net realized and unrealized gain
(loss) on investments ................................ (0.320) (0.530) 0.060 0.451 (0.180) 1.280
---------------------------------------------------------------------
Total from investment operations ...................... (0.111) (0.114) 0.339 0.876 0.280 1.760
---------------------------------------------------------------------
Less dividends:
Dividends from net
investment income .................................... (0.209) (0.416) (0.279) (0.436) (0.450) (0.490)
---------------------------------------------------------------------
Total dividends ....................................... (0.209) (0.416) (0.279) (0.436) (0.450) (0.490)
---------------------------------------------------------------------
Net asset value, end of period .......................... $10.020 $10.340 $10.870 $10.810 $10.370 $10.540
=====================================================================
Total return(3) ......................................... (1.07%) (1.13%) 3.19% 8.66% 2.93% 19.18%
Ratios and supplemental data:
Net assets, end of period
(000 omitted) ........................................ $9,943 $10,572 $11,317 $11,507 $10,432 $6,195
Ratio of expenses to average
net assets ........................................... 1.79% 1.72% 1.67% 1.61% 1.29% 0.97%
Ratio of expenses to average net
assets prior to expense limitation
and expenses paid indirectly ......................... 1.79% 1.77% 1.77% 1.63% 1.78% 1.81%
Ratio of net investment income
to average net assets ................................ 4.13% 3.87% 3.89% 4.11% 4.46% 4.70%
Ratio of net investment income to
average net assets prior to
expense limitation and
expenses paid indirectly ............................. 4.13% 3.82% 3.79% 4.09% 3.97% 3.86%
Portfolio turnover .................................... 0% 7% 18% 12% 28% 31%
</TABLE>
- ------------
(1) Ratios have been annualized and total return has not been annualized.
(2) Commencing May 1, 1997, Delaware Management Company replaced Voyageur Fund
Managers, Inc. as the Fund's investment manager.
(3) 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.
See accompanying notes
45
<PAGE>
Financial Highlights (continued)
<TABLE>
<CAPTION>
Selected data for each share of the Fund outstanding
throughout each period were as follows: Delaware Tax-Free Missouri Insured Fund - Class C
- ---------------------------------------------------------------------------------------------------------------------------------
Six Months Year Eight Months Year Year Period
Ended Ended Ended Ended Ended 11/11/95(3)
2/29/00(1) 8/31/99 8/31/98(1) 12/31/97(2) 12/31/96 to 12/31/95
(Unaudited)
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period ................... $10.350 $10.880 $10.810 $10.370 $10.540 $10.360
Income (loss) from investment operations:
Net investment income ................................ 0.209 0.419 0.279 0.405 0.430 0.060
Net realized and unrealized gain
(loss) on investments ............................... (0.330) (0.530) 0.070 0.455 (0.180) 0.170
---------------------------------------------------------------------
Total from investment operations ..................... (0.121) (0.111) 0.349 0.860 0.250 0.230
---------------------------------------------------------------------
Less dividends:
Dividends from net
investment income ................................... (0.209) (0.419) (0.279) (0.420) (0.420) (0.050)
---------------------------------------------------------------------
Total dividends ...................................... (0.209) (0.419) (0.279) (0.420) (0.420) (0.050)
---------------------------------------------------------------------
Net asset value, end of period ......................... $10.020 $10.350 $10.880 $10.810 $10.370 $10.540
=====================================================================
Total return(4) ........................................ (1.07%) (1.12%) 3.28% 8.49% 2.48% 2.24%
Ratios and supplemental data:
Net assets, end of period
(000 omitted) ....................................... $241 $231 $112 $225 $152 $20
Ratio of expenses to average
net assets .......................................... 1.79% 1.72% 1.67% 1.74% 1.62% 1.22%(5)
Ratio of expenses to average net
assets prior to expense limitation
and expenses paid indirectly ........................ 1.79% 1.77% 1.77% 1.76% 1.78% 1.55%(5)
Ratio of net investment income to
average net assets .................................. 4.13% 3.87% 3.89% 3.98% 4.10% 4.09%(5)
Ratio of net investment income to average
net assets prior to expense limitation
and expenses paid indirectly ........................ 4.13% 3.82% 3.79% 3.96% 3.94% 3.76%(5)
Portfolio turnover ................................... 0% 7% 18% 12% 28% 31%
</TABLE>
- ------------
(1) Ratios have been annualized and total return has not been annualized.
(2) Commencing May 1, 1997, Delaware Management Company replaced Voyageur Fund
Managers, Inc. as the Fund's investment manager.
(3) Commencement of operations.
(4) 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.
(5) Annualized.
See accompanying notes
46
<PAGE>
Financial Highlights (continued)
<TABLE>
<CAPTION>
Delaware Montana Delaware Montana Delaware Montana
Selected data for each share of the Fund outstanding Municipal Bond Municipal Bond Municipal Bond
throughout each period were as follows: Fund - Class A Fund - Class B Fund - Class C
- ------------------------------------------------------------------------------------------------------------------------------------
11/2/99(1) to 2/29/00 11/2/99(1) to 2/29/00 11/2/99(1) to 2/29/00
(Unaudited) (Unaudited) (Unaudited)
<S> <C> <C> <C>
Net asset value, beginning of period ................. $5.500 $5.500 $5.500
Income (loss) from investment operations:
Net investment income(2) .......................... 0.039 0.030 0.029
Net realized and unrealized gain
(loss) on investments .......................... (0.012) (0.005) (0.004)
-----------------------------------------------------------
Total from investment operations .................. 0.027 0.025 0.025
-----------------------------------------------------------
Less dividends:
Dividends from net investment income .............. (0.037) (0.035) (0.035)
-----------------------------------------------------------
Total dividends ................................... (0.037) (0.035) (0.035)
-----------------------------------------------------------
Net asset value, end of period ....................... $5.490 $5.490 $5.490
===========================================================
Total return(3) ...................................... 0.50% 0.45% 0.45%
Ratios and supplemental data:
Net assets, end of period (000 omitted) ........... $1,213 $602 $249
Ratio of expenses to average net assets ........... 0.78% 1.48% 1.48%
Ratio of expenses to average net
assets prior to expense limitation
and expenses paid indirectly ................... 1.37% 2.07% 2.07%
Ratio of net investment income to
average net assets ............................. 2.51% 1.81% 1.81%
Ratio of net investment income to average
net assets prior to expense limitation
and expenses paid indirectly ................... 1.92% 1.22% 1.22%
Portfolio turnover ................................ 189% 189% 189%
</TABLE>
- -------------------
(1) Date of commencement of operations; ratios have been annualized and total
return has not been annualized.
(2) The average share outstanding method has been applied for per share
information.
(3) 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.
See accompanying notes
47
<PAGE>
Financial Highlights (continued)
<TABLE>
<CAPTION>
Selected data for each share of the Fund outstanding
throughout each period were as follows: Delaware Tax-Free North Dakota Fund - Class A
- ------------------------------------------------------------------------------------------------------------------------------------
Six Months Year Eight Months Year Year Year
Ended Ended Ended Ended Ended Ended
2/29/00(1) 8/31/99 8/31/98(1) 12/31/97(2) 12/31/96 12/31/95
(Unaudited)
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period ................... $10.820 $11.440 $11.320 $10.880 $11.000 $9.850
Income (loss) from investment operations:
Net investment income ............................... 0.269 0.541 0.364 0.546 0.540 0.540
Net realized and unrealized gain
(loss) on investments ............................ (0.460) (0.578) 0.120 0.451 (0.130) 1.180
--------------------------------------------------------------------
Total from investment operations .................... (0.191) (0.037) 0.484 0.997 0.410 1.720
--------------------------------------------------------------------
Less dividends and distributions:
Dividends from net
investment income ................................ (0.269) (0.541) (0.364) (0.557) (0.530) (0.570)
Distributions from net realized gain
on investments ................................... -- (0.042) -- -- -- --
--------------------------------------------------------------------
Total dividends and distributions ................... (0.269) (0.583) (0.364) (0.557) (0.530) (0.570)
--------------------------------------------------------------------
Net asset value, end of period ......................... $10.360 $10.820 $11.440 $11.320 $10.880 $11.000
=====================================================================
Total return(3) ........................................ (1.77%) (0.41%) 4.35% 9.43% 3.89% 17.81%
Ratios and supplemental data:
Net assets, end of period
(000 omitted) .................................... $23,903 $27,032 $30,496 $30,965 $33,713 $36,096
Ratio of expenses to
average net assets ............................... 1.03% 1.00% 1.00% 1.00% 0.88% 0.81%
Ratio of expenses to average net
assets prior to expense limitation
and expenses paid indirectly ..................... 1.03% 1.04% 1.15% 1.04% 1.08% 1.05%
Ratio of net investment income to
average net assets ............................... 5.12% 4.79% 4.82% 4.97% 5.01% 5.07%
Ratio of net investment income to average
net assets prior to expense limitation
and expenses paid indirectly ..................... 5.12% 4.75% 4.67% 4.93% 4.81% 4.83%
Portfolio turnover .................................. 1% 28% 23% 41% 58% 45%
</TABLE>
- -------------------
(1) Ratios have been annualized and total return has not been annualized.
(2) Commencing May 1, 1997, Delaware Management Company replaced Voyageur Fund
Managers, Inc. as the Fund's investment manager.
(3) 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.
See accompanying notes
48
<PAGE>
Financial Highlights (continued)
<TABLE>
<CAPTION>
Selected data for each share of the Fund outstanding
throughout each period were as follows: Delaware Tax-Free North Dakota Fund - Class B
- ------------------------------------------------------------------------------------------------------------------------------------
Six Months Year Eight Months Year Year Year
Ended Ended Ended Ended Ended Ended
2/29/00(1) 8/31/99 8/31/98(1) 12/31/97(2) 12/31/96 12/31/95
(Unaudited)
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period ................... $10.820 $11.440 $11.320 $10.880 $11.000 $9.850
Income (loss) from investment operations:
Net investment income ............................... 0.230 0.457 0.308 0.484 0.490 0.480
Net realized and unrealized gain
(loss) on investments ............................ (0.460) (0.578) 0.119 0.451 (0.130) 1.180
--------------------------------------------------------------------
Total from investment operations .................... (0.230) (0.121) 0.427 0.935 0.360 1.660
--------------------------------------------------------------------
Less dividends and distributions:
Dividends from net
investment income ................................ (0.230) (0.457) (0.307) (0.495) (0.480) (0.510)
Distributions from net realized gain
on investments ................................... -- (0.042) -- -- -- --
--------------------------------------------------------------------
Total dividends and distributions ................... (0.230) (0.499) (0.307) (0.495) (0.480) (0.510)
--------------------------------------------------------------------
Net asset value, end of period ......................... $10.360 $10.820 $11.440 $11.320 $10.880 $11.000
=====================================================================
Total return(3) ........................................ (2.13%) (1.14%) 3.83% 8.82% 3.39% 17.24%
Ratios and supplemental data:
Net assets, end of period
(000 omitted) .................................... $987 $1,048 $980 $889 $700 $375
Ratio of expenses to average
net assets ....................................... 1.78% 1.75% 1.75% 1.55% 1.36% 1.29%
Ratio of expenses to average net
assets prior to expense limitation
and expenses paid indirectly ..................... 1.78% 1.79% 1.90% 1.59% 1.83% 1.79%
Ratio of net investment income to
average net assets ............................... 4.37% 4.04% 4.07% 4.42% 4.52% 4.56%
Ratio of net investment income to average
net assets prior to expense limitation
and expenses paid indirectly ..................... 4.37% 4.00% 3.92% 4.38% 4.05% 4.06%
Portfolio turnover .................................. 1% 28% 23% 41% 58% 45%
</TABLE>
- -------------------
(1) Ratios have been annualized and total return has not been annualized.
(2) Commencing May 1, 1997, Delaware Management Company replaced Voyageur Fund
Managers, Inc. as the Fund's investment manager.
(3) 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.
See accompanying notes
49
<PAGE>
Financial Highlights (continued)
<TABLE>
<CAPTION>
Selected data for each share of the Fund outstanding
throughout each period were as follows: Delaware Tax-Free North Dakota Fund - Class C
- ----------------------------------------------------------------------------------------------------------------------------------
Six Months Year Eight Months Year Year Period From
Ended Ended Ended Ended Ended 7/29/95(3)
2/29/00(1) 8/31/99 8/31/98(1) 12/31/97(2) 12/31/96 to 12/31/95
(Unaudited)
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period ................... $10.810 $11.430 $11.320 $10.870 $11.000 $10.510
Income (loss) from investment operations:
Net investment income ............................... 0.228 0.456 0.307 0.441 0.440 0.170
Net realized and unrealized gain
(loss) on investments ............................ (0.450) (0.578) 0.110 0.468 (0.140) 0.500
-------------------------------------------------------------------
Total from investment operations .................... (0.222) (0.122) 0.417 0.909 0.300 0.670
-------------------------------------------------------------------
Less dividends and distributions:
Dividends from net
investment income ................................ (0.228) (0.456) (0.307) (0.459) (0.430) (0.180)
Distributions from net realized gain
on investments ................................... -- (0.042) -- -- -- --
-------------------------------------------------------------------
Total dividends and distributions ................... (0.228) (0.498) (0.307) (0.459) (0.430) (0.180)
-------------------------------------------------------------------
Net asset value, end of period ......................... $10.360 $10.810 $11.430 $11.320 $10.870 $11.000
====================================================================
Total return(4) ........................................ (2.06%) (1.15%) 3.74% 8.57% 2.81% 6.47%
Ratios and supplemental data:
Net assets, end of period
(000 omitted) .................................... $315 $322 $30 $41 $40 $20
Ratio of expenses to
average net assets ............................... 1.78% 1.75% 1.75% 1.87% 1.75% 1.73%(5)
Ratio of expenses to average net
assets prior to expense limitation
and expenses paid indirectly ..................... 1.78% 1.79% 1.90% 1.91% 1.75% 1.73%(5)
Ratio of net investment income to
average net assets ............................... 4.37% 4.04% 4.07% 4.10% 4.06% 4.00%(5)
Ratio of net investment income to average
net assets prior to expense limitation
and expenses paid indirectly ..................... 4.37% 4.00% 3.92% 4.06% 4.06% 4.00%(5)
Portfolio turnover .................................. 1% 28% 23% 41% 58% 45%
</TABLE>
- -------------------
(1) Ratios have been annualized and total return has not been annualized.
(2) Commencing May 1, 1997, Delaware Management Company replaced Voyageur Fund
Managers, Inc. as the Fund's investment manager.
(3) Commencement of operations.
(4) 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.
(5) Annualized.
See accompanying notes
50
<PAGE>
Financial Highlights (continued)
<TABLE>
<CAPTION>
Selected data for each share of the Fund outstanding
throughout each period were as follows: Delaware Tax-Free Oregon Insured Fund - Class A
- ------------------------------------------------------------------------------------------------------------------------------------
Six Months Year Eight Months Year Year Year
Ended Ended Ended Ended Ended Ended
2/29/00(1) 8/31/99 8/31/98(1) 12/31/97(2) 12/31/96 12/31/95
(Unaudited)
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period ................... $9.810 $10.430 $10.310 $9.870 $10.050 $8.920
Income (loss) from investment operations:
Net investment income ............................... 0.231 0.458 0.320 0.481 0.480 0.490
Net realized and unrealized gain
(loss) on investments ............................ (0.350) (0.620) 0.120 0.444 (0.180) 1.140
--------------------------------------------------------------------
Total from investment operations .................... (0.119) (0.162) 0.440 0.925 0.300 1.630
--------------------------------------------------------------------
Less dividends:
Dividends from
net investment income ............................ (0.231) (0.458) (0.320) (0.485) (0.480) (0.500)
--------------------------------------------------------------------
Total dividends ..................................... (0.231) (0.458) (0.320) (0.485) (0.480) (0.500)
--------------------------------------------------------------------
Net asset value, end of period ......................... $9.460 $9.810 $10.430 $10.310 $9.870 $10.050
====================================================================
Total return(3) ........................................ (1.20%) (1.67%) 4.33% 9.66% 3.15% 18.71%
Ratios and supplemental data:
Net assets, end of period
(000 omitted) .................................... $22,977 $27,518 $24,336 $22,071 $20,913 $21,590
Ratio of expenses to average
net assets ....................................... 0.85% 0.80% 0.71% 0.71% 0.71% 0.54%
Ratio of expenses to average net
assets prior to expense
limitation and expenses
paid indirectly .................................. 1.01% 1.02% 1.03% 0.94% 1.07% 1.11%
Ratio of net investment income to
average net assets ............................... 4.84% 4.44% 4.64% 4.83% 4.92% 5.12%
Ratio of net investment income to
average net assets prior to
expense limitation and
expenses paid indirectly ......................... 4.68% 4.22% 4.32% 4.60% 4.56% 4.55%
Portfolio turnover .................................. 0% 10% 5% 5% 40% 41%
</TABLE>
- -------------------
(1) Ratios have been annualized and total return has not been annualized.
(2) Commencing May 1, 1997, Delaware Management Company replaced Voyageur Fund
Managers, Inc. as the Fund's investment manager.
(3) 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.
See accompanying notes
51
<PAGE>
Financial Highlights (continued)
<TABLE>
<CAPTION>
Selected data for each share of the Fund outstanding
throughout each period were as follows: Delaware Tax-Free Oregon Insured Fund - Class B
- ------------------------------------------------------------------------------------------------------------------------------------
Six Months Year Eight Months Year Year Year
Ended Ended Ended Ended Ended Ended
2/29/00(1) 8/31/99 8/31/98(1) 12/31/97(2) 12/31/96 12/31/95
(Unaudited)
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period ................... $9.810 $10.430 $10.310 $9.870 $10.050 $8.920
Income (loss) from investment operations:
Net investment income ............................... 0.196 0.381 0.268 0.422 0.430 0.440
Net realized and unrealized gain
(loss) on investments ............................ (0.350) (0.620) 0.120 0.434 (0.180) 1.140
--------------------------------------------------------------------
Total from investment operations .................... (0.154) (0.239) 0.388 0.856 0.250 1.580
--------------------------------------------------------------------
Less dividends:
Dividends from
net investment income ............................ (0.196) (0.381) (0.268) (0.416) (0.430) (0.450)
--------------------------------------------------------------------
Total dividends ..................................... (0.196) (0.381) (0.268) (0.416) (0.430) (0.450)
--------------------------------------------------------------------
Net asset value, end of period ......................... $9.460 $9.810 $10.430 $10.310 $9.870 $10.050
====================================================================
Total return(3) ........................................ (1.57%) (2.41%) 3.82% 8.90% 2.61% 18.10%
Ratios and supplemental data:
Net assets, end of period
(000 omitted) .................................... $7,617 $7,999 $6,011 $6,461 $4,758 $2,786
Ratio of expenses to average
net assets ....................................... 1.60% 1.55% 1.46% 1.39% 1.25% 1.04%
Ratio of expenses to average
net assets prior to expense
limitation and expenses paid
indirectly ....................................... 1.76% 1.77% 1.78% 1.62% 1.83% 1.86%
Ratio of net investment income to
average net assets ............................... 4.09% 3.69% 3.89% 4.15% 4.37% 4.57%
Ratio of net investment income to
average net assets prior to
expense limitation and
expenses paid indirectly ......................... 3.93% 3.47% 3.57% 3.92% 3.79% 3.75%
Portfolio turnover .................................. 0% 10% 5% 5% 40% 41%
</TABLE>
- -------------------
(1) Ratios have been annualized and total return has not been annualized.
(2) Commencing May 1, 1997, Delaware Management Company replaced Voyageur Fund
Managers, Inc. as the Fund's investment manager.
(3) 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.
See accompanying notes
52
<PAGE>
Financial Highlights (continued)
<TABLE>
<CAPTION>
Selected data for each share of the Fund outstanding
throughout each period were as follows: Delaware Tax-Free Oregon Insured Fund - Class C
- ------------------------------------------------------------------------------------------------------------------------------------
Six Months Year Eight Months Year Year Period
Ended Ended Ended Ended Ended 7/7/95(3)
2/29/00(1) 8/31/99 8/31/98(1) 12/31/97(2) 12/31/96 to 12/31/95
(Unaudited)
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period ................... $9.820 $10.440 $10.320 $9.880 $10.050 $9.630
Income (loss) from investment operations:
Net investment income ............................... 0.196 0.380 0.268 0.411 0.400 0.190
Net realized and unrealized gain
(loss) on investments ............................ (0.350) (0.620) 0.120 0.431 (0.170) 0.410
--------------------------------------------------------------------
Total from investment operations .................... (0.154) (0.240) 0.388 0.842 0.230 0.600
--------------------------------------------------------------------
Less dividends:
Dividends from net
investment income ................................ (0.196) (0.380) (0.268) (0.402) (0.400) (0.180)
--------------------------------------------------------------------
Total dividends ..................................... (0.196) (0.380) (0.268) (0.402) (0.400) (0.180)
--------------------------------------------------------------------
Net asset value, end of period ......................... $9.470 $9.820 $10.440 $10.320 $9.880 $10.050
====================================================================
Total return(4) ........................................ (1.57%) (2.41%) 3.81% 8.75% 2.38% 6.35%
Ratios and supplemental data:
Net assets, end of period
(000 omitted) .................................... $1,707 $1,603 $999 $532 $360 $250
Ratio of expenses to
average net assets ............................... 1.60% 1.55% 1.46% 1.51% 1.55% 1.39%(5)
Ratio of expenses to average net assets
prior to expense limitation and
expenses paid indirectly ......................... 1.76% 1.77% 1.78% 1.74% 1.82% 1.74%(5)
Ratio of net investment income to
average net assets ............................... 4.09% 3.69% 3.89% 4.03% 4.03% 4.00%(5)
Ratio of net investment income to average
net assets prior to expense limitation
and expenses paid indirectly ..................... 3.93% 3.47% 3.57% 3.80% 3.76% 3.65%(5)
Portfolio turnover .................................. 0% 10% 5% 5% 40% 41%
</TABLE>
- -------------------
(1) Ratios have been annualized and total return has not been annualized.
(2) Commencing May 1, 1997, Delaware Management Company replaced Voyageur Fund
Managers, Inc. as the Fund's investment manager.
(3) Commencement of operations.
(4) 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.
(5) Annualized.
See accompanying notes
53
<PAGE>
Financial Highlights (continued)
<TABLE>
<CAPTION>
Selected data for each share of the Fund outstanding
throughout each period were as follows: Delaware Tax-Free Wisconsin Fund - Class A
- ------------------------------------------------------------------------------------------------------------------------------------
Six Months Year Eight Months Year Year Year
Ended Ended Ended Ended Ended Ended
2/29/00(1) 8/31/99 8/31/98(1) 12/31/97(2) 12/31/96 12/31/95
(Unaudited)
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period ................... $9.550 $10.080 $10.010 $9.640 $9.780 $8.740
Income (loss) from investment operations:
Net investment income ............................... 0.229 0.452 0.304 0.466 0.460 0.480
Net realized and unrealized gain
(loss) on investments ............................ (0.350) (0.530) 0.070 0.383 (0.140) 1.040
--------------------------------------------------------------------
Total from investment operations .................... (0.121) (0.078) 0.374 0.849 0.320 1.520
--------------------------------------------------------------------
Less dividends:
Dividends from net
investment income ................................ (0.229) (0.452) (0.304) (0.479) (0.460) (0.480)
--------------------------------------------------------------------
Total dividends ..................................... (0.229) (0.452) (0.304) (0.479) (0.460) (0.480)
--------------------------------------------------------------------
Net asset value, end of period ......................... $9.200 $9.550 $10.080 $10.010 $9.640 $9.780
====================================================================
Total return(3) ........................................ (1.26%) (0.87%) 3.80% 9.07% 3.49% 17.74%
Ratios and supplemental data:
Net assets, end of period
(000 omitted) .................................... $28,945 $33,410 $34,489 $30,879 $28,292 $26,449
Ratio of expenses to average
net assets ....................................... 1.04% 1.00% 1.00% 0.99% 0.98% 0.88%
Ratio of expenses to average net assets
prior to expense limitation and
expenses paid indirectly ......................... 1.17% 1.03% 1.04% 1.07% 1.09% 1.09%
Ratio of net investment income to
average net assets ............................... 4.94% 4.54% 4.56% 4.76% 4.90% 5.05%
Ratio of net investment income to average
net assets prior to expense limitation
and expenses paid indirectly ..................... 4.81% 4.51% 4.52% 4.68% 4.79% 4.84%
Portfolio turnover .................................. 0% 6% 16% 30% 38% 12%
</TABLE>
- -------------------
(1) Ratios have been annualized and total return has not been annualized.
(2) Commencing May 1, 1997, Delaware Management Company replaced Voyageur Fund
Managers, Inc. as the Fund's investment manager.
(3) 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.
See accompanying notes
54
<PAGE>
Financial Highlights (continued)
<TABLE>
<CAPTION>
Selected data for each share of the Fund outstanding
throughout each period were as follows: Delaware Tax-Free Wisconsin Fund - Class B
- ------------------------------------------------------------------------------------------------------------------------------------
Six Months Year Eight Months Year Year Period
Ended Ended Ended Ended Ended 4/22/95(3)
2/29/00(1) 8/31/99 8/31/98(1) 12/31/97(2) 12/31/96 to 12/31/95
(Unaudited)
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period ................... $9.540 $10.070 $10.000 $9.630 $9.770 $9.390
Income (loss) from investment operations:
Net investment income ............................... 0.194 0.378 0.255 0.395 0.410 0.280
Net realized and unrealized gain
(loss) on investments ............................ (0.340) (0.530) 0.070 0.382 (0.140) 0.370
--------------------------------------------------------------------
Total from investment operations .................... (0.146) (0.152) 0.325 0.777 0.270 0.650
--------------------------------------------------------------------
Less dividends:
Dividends from net
investment income ................................ (0.194) (0.378) (0.255) (0.407) (0.410) (0.270)
--------------------------------------------------------------------
Total dividends ..................................... (0.194) (0.378) (0.255) (0.407) (0.410) (0.270)
--------------------------------------------------------------------
Net asset value, end of period ......................... $9.200 $9.540 $10.070 $10.000 $9.630 $9.770
====================================================================
Total return(4) ........................................ (1.53%) (1.60%) 3.29% 8.27% 2.84% 7.08%
Ratios and supplemental data:
Net assets, end of period
(000 omitted) .................................... $3,076 $3,206 $2,621 $1,931 $1,339 $725
Ratio of expenses to average
net assets ....................................... 1.79% 1.75% 1.75% 1.72% 1.66% 1.45%(5)
Ratio of expenses to average net
assets prior to expense limitation
and expenses paid indirectly ..................... 1.92% 1.78% 1.79% 1.80% 1.85% 1.70%(5)
Ratio of net investment income to
average net assets ............................... 4.19% 3.79% 3.81% 4.03% 4.37% 4.31%(5)
Ratio of net investment income to average
net assets prior to expense limitation
and expenses paid indirectly ..................... 4.06% 3.76% 3.77% 3.95% 4.18% 4.06%(5)
Portfolio turnover .................................. 0% 6% 16% 30% 38% 12%
</TABLE>
- -------------------
(1) Ratios have been annualized and total return has not been annualized.
(2) Commencing May 1, 1997, Delaware Management Company replaced Voyageur Fund
Managers, Inc. as the Fund's investment manager.
(3) Commencement of operations.
(4) 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.
(5) Annualized.
See accompanying notes
55
<PAGE>
Financial Highlights (continued)
<TABLE>
<CAPTION>
Selected data for each share of the Fund outstanding
throughout each period were as follows: Delaware Tax-Free Wisconsin Fund - Class C
- ----------------------------------------------------------------------------------------------------------------------------------
Six Months Year Eight Months Year Year Period
Ended Ended Ended Ended Ended 3/28/95(3)
2/29/00(1) 8/31/99 8/31/98(1) 12/31/97(2) 12/31/96 to 12/31/95
(Unaudited)
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period ................... $9.570 $10.110 $10.030 $9.660 $9.790 $9.340
Income (loss) from investment operations:
Net investment income ............................... 0.194 0.377 0.259 0.380 0.390 0.300
Net realized and unrealized gain
(loss) on investments ............................ (0.340) (0.540) 0.075 0.390 (0.130) 0.440
--------------------------------------------------------------------
Total from investment operations .................... (0.146) (0.163) 0.334 0.770 0.260 0.740
--------------------------------------------------------------------
Less dividends:
Dividends from net
investment income ................................ (0.194) (0.377) (0.254) (0.400) (0.390) (0.290)
--------------------------------------------------------------------
Total dividends ..................................... (0.194) (0.377) (0.254) (0.400) (0.390) (0.290)
--------------------------------------------------------------------
Net asset value, end of period ......................... $9.230 $9.570 $10.110 $10.030 $9.660 $9.790
====================================================================
Total return(4) ........................................ (1.52%) (1.70%) 3.38% 8.16% 2.74% 8.06%
Ratios and supplemental data:
Net assets, end of period
(000 omitted) .................................... $1,360 $1,509 $1,283 $689 $555 $73
Ratio of expenses to average
net assets ....................................... 1.79% 1.75% 1.75% 1.81% 1.75% 1.77%(5)
Ratio of expenses to average net
assets prior to expense limitation
and expenses paid indirectly ..................... 1.92% 1.78% 1.79% 1.89% 1.83% 1.77%(5)
Ratio of net investment income to
average net assets ............................... 4.20% 3.79% 3.81% 3.94% 4.12% 4.04%(5)
Ratio of net investment income to average
net assets prior to expense limitation
and expenses paid indirectly ..................... 4.07% 3.76% 3.77% 3.86% 4.04% 4.04%(5)
Portfolio turnover .................................. 0% 6% 16% 30% 38% 12%
</TABLE>
- -------------------
(1) Ratios have been annualized and total return has not been annualized.
(2) Commencing May 1, 1997, Delaware Management Company replaced Voyageur Fund
Managers, Inc. as the Fund's investment manager.
(3) Commencement of operations.
(4) 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.
(5) Annualized.
See accompanying notes
56
<PAGE>
Notes to Financial Statements
February 29, 2000 (Unaudited)
- --------------------------------------------------------------------------------
Delaware Tax-Free Kansas Fund, Delaware Tax-Free Missouri Insured Fund, and
Delaware Tax-Free Oregon Insured Fund, are series within the Voyageur Investment
Trust, which is organized as a Massachusetts Business Trust. Delaware Tax-Free
Idaho Fund, Delaware Tax-Free Iowa Fund, Delaware Montana Municipal Bond Fund,
and Delaware Tax-Free Wisconsin Fund, are series within the Voyageur Mutual
Funds which is organized as a Delaware Business Trust, and Delaware Tax-Free
North Dakota Fund, a series within the Voyageur Tax-Free Funds which is
organized as a Delaware Business Trust. Each series is referred to as a "Fund"
or collectively as the "Funds" and are registered as non-diversified, open-end
management investment companies under the Investment Company Act of 1940 (as
amended). The Funds offer three classes of shares. The A Class carries a
front-end sales charge of 3.75%. The B Class carries a back-end deferred sales
charge and the C Class carries a level load deferred sales charge.
The Delaware Tax-Free Idaho Fund, Delaware Tax-Free Iowa Fund, Delaware Montana
Municipal Bond Fund, Delaware Tax-Free North Dakota Fund, and Delaware Tax-Free
Wisconsin Fund seek high current income free from both federal and state income
taxes by investing in investment grade municipal bonds. The Delaware Tax-Free
Missouri Insured Fund and Delaware Tax-Free Oregon Insured Fund seek 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. The
Delaware Tax-Free Kansas Fund seeks high current income free from both federal
and state income taxes and local intangibles tax by investing in investment
grade municipal bonds.
1. Significant Accounting Policies
The following accounting policies are in accordance with generally accepted
accounting principles and are consistently followed by the Funds.
Security Valuation - Long-term debt securities are valued by an independent
pricing service and such prices are believed to reflect the fair value of such
securities. Money market instruments having less than 60 days to maturity are
valued at amortized cost, which approximates market value. Other securities and
assets for which market quotations are not readily available are valued at fair
value as determined in good faith by or under the direction of the Funds' Board
of Trustees.
<PAGE>
Federal Income Taxes - Each Fund intends to continue to qualify as a regulated
investment company and make the requisite distributions to shareholders.
Accordingly, no provision for federal income taxes has been made in the
financial statements. Income and capital gain distributions are determined in
accordance with federal income tax regulations which, may differ from generally
accepted accounting principles.
Class Accounting - Investment income, common expenses and realized and
unrealized gain (loss) on investments are allocated to the various classes of
the Funds on the basis of daily net assets of each class. Distribution expenses
relating to a specific class are charged directly to that class.
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 at
the date of the financial statements and the reported amounts of revenues and
expenses during the reporting period. Actual results could differ from those
estimates.
Other - Expenses common to all funds within the Delaware Investments Family of
Funds are allocated amongst the funds on the basis of average net assets.
Security transactions are recorded on the date the securities are purchased or
sold (trade date). Costs used in calculating realized gains and losses on the
sale of investment securities are those of the specific securities sold.
Interest income is recorded on the accrual basis. Original issue discounts and
market premium are amortized to interest income over the lives of the respective
securities. The Funds declare dividends from net investment income daily and pay
such dividends monthly. Capital gains, if any, are distributed annually.
Certain expenses of the Funds are paid through "soft dollar" arrangements with
brokers. These transactions are done subject to best price and execution. The
expenses paid under the above arrangement are included in their respective
expense captions on the Statement of Operations with the corresponding expense
offset shown as "expenses paid indirectly". The amount of these expenses for the
periods ended February 29, 2000 are as follows:
<TABLE>
<CAPTION>
"Soft Dollar" Expenses
<S> <C> <C> <C> <C> <C> <C> <C>
Delaware Delaware Delaware Delaware Delaware Delaware Delaware Delaware
Tax-Free Tax-Free Tax-Free Tax-Free Montana Tax-Free Tax-Free Tax-Free
Idaho Iowa Kansas Missouri Municipal North Dakota Oregon Insured Wisconsin
Fund Fund Fund Insured Fund Bond Fund Fund Fund Fund
-------- -------- -------- ------------ --------- ------------ -------------- ---------
$640 $483 $180 $586 $20 $308 $400 $405
</TABLE>
57
<PAGE>
Notes to Financial Statements (continued)
- --------------------------------------------------------------------------------
2.Investment Management and Other Transactions with Affiliates
In accordance with the terms of the Investment Management Agreement, each fund
pays Delaware Management Company ("DMC"), the Investment Manager, an annual fee
which is calculated daily based on the net assets of each fund.The following are
the management fees as a percentage of average daily net assets for each
respective fund:
<TABLE>
<CAPTION>
On the first On the next On the next In excess of
$500 million $500 million $1.5 billion $2.5 billion
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Delaware Tax-Free Idaho Fund ..................... 0.55% 0.50% 0.45% 0.425%
Delaware Tax-Free Iowa Fund ...................... 0.55% 0.50% 0.45% 0.425%
Delaware Tax-Free Kansas Fund .................... 0.55% 0.50% 0.45% 0.425%
Delaware Tax-Free Missouri Insured Fund .......... 0.50% 0.475% 0.45% 0.425%
Delaware Montana Municipal Bond Fund ............. 0.55% 0.50% 0.45% 0.425%
Delaware Tax-Free North Dakota Fund .............. 0.55% 0.50% 0.45% 0.425%
Delaware Tax-Free Oregon Insured Fund ............ 0.50% 0.475% 0.45% 0.425%
Delaware Tax-Free Wisconsin Fund ................. 0.55% 0.50% 0.45% 0.425%
</TABLE>
DMC has elected to waive its fee and reimburse each Fund to the extent that
annual operating expenses exclusive of taxes, interest, brokerage commissions,
distribution fees, and extraordinary expenses exceed the following percentages
of average daily net assets through October 31, 2000.
The waiver rates and total expenses absorbed by DMC for the periods ended
February 29, 2000 are as follows:
<TABLE>
<CAPTION>
Operating expense
limitation as a percentage Expenses
of average daily absorbed
net assets (per annum) by DMC
---------------------- ------
<S> <C> <C>
Delaware Tax-Free Idaho Fund ..................... 0.75% $5,498
Delaware Tax-Free Iowa Fund ...................... 0.75% 35,047
Delaware Tax-Free Kansas Fund .................... 0.75% 18,019
Delaware Tax-Free Missouri Insured Fund .......... N/A -
Delaware Montana Municipal Bond Fund ............. 0.75% 3,325
Delaware Tax-Free North Dakota Fund .............. N/A -
Delaware Tax-Free Oregon Insured Fund ............ 0.60% 27,591
Delaware Tax-Free Wisconsin Fund ................. 0.75% 22,287
</TABLE>
The Funds have engaged Delaware Service Company, Inc. ("DSC"), an affiliate of
DMC, to provide dividend disbursing, transfer agent, accounting and
administrative services. The Funds pay DSC a monthly fee based on number of
shareholder accounts, shareholder transactions and average net assets, subject
to certain minimums.
On February 29, 2000, the Funds had liabilities payable to affiliates as
follows:
<TABLE>
<CAPTION>
Dividend disbursing,
Investment Transfer agent, accounting Other expenses
management fees fees and other expenses payable to DMC
payable to DMC payable to DSC and affiliates
-------------- -------------------------- --------------
<S> <C> <C> <C>
Delaware Tax-Free Idaho Fund ..................... - $6,223 $1,199
Delaware Tax-Free Iowa Fund ...................... $4,065 5,568 1,338
Delaware Tax-Free Kansas Fund .................... - 2,105 554
Delaware Tax-Free Missouri Insured Fund .......... 26,164 6,448 1,626
Delaware Montana Municipal Bond Fund ............. - 225 1,201
Delaware Tax-Free North Dakota Fund .............. 11,085 4,185 547
Delaware Tax-Free Oregon Insured Fund ............ 8,681 3,973 1,105
Delaware Tax-Free Wisconsin Fund ................. 12,419 4,177 1,102
</TABLE>
58
<PAGE>
Notes to Financial Statements (continued)
- --------------------------------------------------------------------------------
2. Investment Management and Other Transactions with Affiliates (continued)
Pursuant to the Distribution Agreement, each Fund pays Delaware Distributors,
L.P. ("DDLP"), the Distributor and an affiliate of DMC, an annual fee not to
exceed 0.25% of the average daily net assets of the A Class and 1.00% of the
average daily net assets of the B and C Classes.
For the periods ended February 29, 2000, commissions earned by DDLP on sales of
each Fund's A Class shares were as follows:
Delaware Tax-Free Idaho Fund .......................................... $4,958
Delaware Tax-Free Iowa Fund ........................................... 4,650
Delaware Tax-Free Kansas Fund ......................................... 2,415
Delaware Tax-Free Missouri Insured Fund ............................... 20,370
Delaware Montana Municipal Bond Fund .................................. 29
Delaware Tax-Free North Dakota Fund ................................... 283
Delaware Tax-Free Oregon Insured Fund ................................. 2,654
Delaware Tax-Free Wisconsin Fund ...................................... 3,579
Certain officers of DMC, DSC and DDLP are officers, trustees and/or employees of
the Funds. These officers, trustees and employees are paid no compensation by
the Funds.
3. Investments
During the periods ended February 29, 2000, the Funds made purchases and sales
of investment securities other than U.S. government securities and temporary
cash investments as follows:
<TABLE>
<CAPTION>
Delaware Delaware Delaware Delaware Delaware Delaware Delaware Delaware
Tax-Free Tax-Free Tax-Free Tax-Free Montana Tax-Free Tax-Free Tax-Free
Idaho Iowa Kansas Missouri Municipal North Dakota Oregon Insured Wisconsin
Fund Fund Fund Insured Fund Bond Fund Fund Fund Fund
-------- -------- -------- ------------ ---------- ------------ --------------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Purchases ..... $2,945,070 - $724,267 - $2,630,844 $191,515 - -
Sales ......... 4,466,182 $1,923,340 1,530,244 $1,816,414 800,000 1,628,314 $1,926,221 $4,569,008
</TABLE>
At February 29, 2000, the aggregate cost of securities and unrealized
appreciation (depreciation) for federal income tax purposes for each Fund were
as follows:
<TABLE>
<CAPTION>
Delaware Delaware Delaware Delaware Delaware Delaware Delaware Delaware
Tax-Free Tax-Free Tax-Free Tax-Free Montana Tax-Free Tax-Free Tax-Free
Idaho Iowa Kansas Missouri Municipal North Dakota Oregon Insured Wisconsin
Fund Fund Fund Insured Fund Bond Fund Fund Fund Fund
-------- -------- -------- ------------ ---------- ------------ --------------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Cost of
Investments ...$52,502,761 $40,594,231 $14,602,921 $48,634,829 $1,831,002 $25,518,528 $32,832,607 $33,407,428
Aggregate
Unrealized
Appreciation .. 363,321 806,503 293,609 980,513 811 322,265 711,651 622,966
Aggregate
Unrealized
Depreciation .. (3,313,127) (908,034) (503,439) (676,402) (6,875) (868,280) (1,547,916) (1,158,754)
Net Unrealized
Appreciation
(Depreciation). (2,949,806) (101,531) (209,830) 304,111 (6,064) (546,015) (836,265) (535,788)
</TABLE>
59
<PAGE>
Notes to Financial Statements (continued)
- --------------------------------------------------------------------------------
3. Investments (continued)
For federal income tax purposes, each Fund had accumulated
capital losses at February 29, 2000 as follows:
<TABLE>
<CAPTION>
Delaware Delaware Delaware Delaware Delaware
Tax-Free Tax-Free Tax-Free Tax-Free Tax-Free
Idaho Iowa Missouri Oregon Insured Wisconsin
Fund Fund Insured Fund Fund Fund
---- ---- ------------ ---- ----
<S> <C> <C> <C> <C> <C>
Year of expiration 2001 - $950,762 - - -
Year of expiration 2002 - 18,853 - $215,801 $128,938
Year of expiration 2003 - 368,235 $209,612 158,365 64,926
Year of Expiration 2004 - 168,308 525,264 218,468 229,647
Year of expiration 2005 - 117,934 - - -
Year of expiration 2006 $44,632 - - - -
Year of Expiration 2007 - - - - 53,540
------- ---------- -------- -------- --------
Total $44,632 $1,624,092 $734,876 $592,634 $477,051
======= ========== ======== ======== ========
</TABLE>
4. Capital Shares
Transactions in capital shares were as follows:
<TABLE>
<CAPTION>
Delaware Delaware Delaware Delaware
Tax-Free Tax-Free Tax-Free Tax-Free Missouri
Idaho Fund Iowa Fund Kansas Fund Insured Fund
-------------------- --------------------- -------------------- ---------------------
Six Months Year Six Months Year Six Months Year Six Months Year
Ended Ended Ended Ended Ended Ended Ended Ended
2/29/00 8/31/99 2/29/00 8/31/99 2/29/00 8/31/99 2/29/00 8/31/99
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
Shares sold:
<S> <C> <C> <C> <C> <C> <C> <C> <C>
A Class ....................... 310,748 859,702 122,626 341,908 52,627 213,539 117,482 149,789
B Class ....................... 66,434 366,423 28,162 134,546 18,658 172,332 25,963 47,604
C Class ....................... 95,335 198,983 6,670 54,506 7,191 32,553 5,916 15,875
Shares issued upon reinvestment
of distributions from net
investment income and net
realized gain on investments:
A Class ....................... 68,423 114,940 56,004 106,955 13,922 28,696 48,484 98,821
B Class ....................... 13,913 19,655 6,197 10,686 7,099 11,924 12,426 23,890
C Class ....................... 5,745 6,278 1,843 3,179 680 564 292 404
------- --------- ------- ------- ------- ------- ------- -------
560,598 1,565,981 221,502 651,780 100,177 459,608 210,563 336,383
Shares repurchased:
A Class ....................... (842,871) (370,113) (293,250) (423,067) (153,008) (285,048) (317,594) (471,038)
B Class ....................... (79,300) (99,593) (55,320) (55,825) (86,190) (53,746) (68,693) (89,897)
C Class ....................... (48,144) (41,822) (19,303) (44,536) (27,970) (1,377) (4,510) (4,175)
------- --------- ------- ------- ------- ------- ------- -------
(970,315) (511,528) (367,873) (523,428) (267,168) (340,171) (390,797) (565,110)
------- --------- ------- ------- ------- ------- ------- -------
Net increase (decrease) .......... (409,717) 1,054,453 (146,371) 128,352 (166,991) 119,437 (180,234) (228,727)
======= ========= ======= ======= ======= ======= ======= =======
</TABLE>
60
<PAGE>
Notes to Financial Statements (continued)
- --------------------------------------------------------------------------------
4. Capital Shares (continued)
Transactions in capital shares were as follows:
<TABLE>
<CAPTION>
Delaware Tax-Free Delaware Delaware Delaware
North Dakota Tax-Free Oregon Tax-Free Montana Municipal
Fund Insured Fund Wisconsin Fund Bond Fund
----------------- ------------------- --------------------- -----------------
Six Months Year Six Months Year Six Months Year 11/2/99*
Ended Ended Ended Ended Ended Ended to
2/29/00 8/31/99 2/29/00 8/31/99 2/29/00 8/31/99 2/29/00
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
Shares sold:
<S> <C> <C> <C> <C> <C> <C> <C>
A Class ............................ 15,530 127,381 76,609 697,470 106,238 488,062 219,946
B Class ............................ 7,712 18,412 47,445 268,258 25,262 114,881 109,283
C Class ............................ 6 26,760 50,152 69,203 1,259 55,257 45,243
Shares issued upon reinvestment
of distributions from net
investment income and net
realized gain on investments:
A Class ............................ 37,957 80,736 38,712 71,190 49,973 90,957 1,087
B Class ............................ 1,181 2,356 8,452 13,777 4,109 6,775 488
C Class ............................ 655 521 2,681 3,828 2,791 4,896 119
------- ------- --------- ------- ------- ------- -------
63,041 256,166 224,051 1,123,726 189,632 760,828 376,166
Shares repurchased:
A Class ............................ (246,245) (375,693) (493,174) (295,662) (510,835) (500,517) -
B Class ............................ (10,594) (9,548) (66,596) (42,818) (30,905) (45,854) -
C Class ............................ - (131) (35,909) (5,433) (14,311) (29,398) -
------- ------- --------- ------- ------- ------- -------
(256,839) (385,372) (595,679) (343,913) (556,051) (575,769) -
------- ------- --------- ------- ------- ------- -------
Net increase (decrease) ............... (193,798) (129,206) (371,628) 779,813 (366,419) (185,059) 376,166
======= ======= ========= ======= ======= ======= =======
</TABLE>
*Commencement of operations.
5. Lines of Credit
Effective October 8, 1999, the Funds, along with certain other funds in the
Delaware Investments Family of Funds (the "Participants"), participate in a
$683,500,000 revolving line of credit facility to be used for temporary or
emergency purposes as an additional source of liquidity to fund redemptions of
investor shares. The Participants are charged an annual commitment fee, which is
allocated across the Participants on the basis of each Fund's allocation of the
entire facility. The Participants may borrow up to a maximum of one third of
their net assets under the agreement. Prior to October 8, 1999 the Funds had a
committed line of credit for the following amounts:
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
Delaware Delaware Delaware Delaware Delaware Delaware Delaware
Tax-Free Tax-Free Tax-Free Tax-Free Tax-Free Tax-Free Tax-Free
Idaho Iowa Kansas Missouri North Dakota Oregon Insured Wisconsin
Fund Fund Fund Insured Fund Fund Fund Fund
---------- ---------- -------- ---------- ---------- ---------- ----------
$2,100,000 $2,100,000 $700,000 $3,000,000 $1,600,000 $1,500,000 $1,700,000
</TABLE>
No amounts were outstanding at February 29, 2000, or at any time during the
fiscal year for any Fund.
6. Credit And Market Risk
The Funds concentrate their investments in securities mainly issued by each
specific states' municipalities. The value of these investments may be adversely
affected by new legislation within the state, regional or local economic
conditions, and differing levels of supply and demand for municipal bonds. Many
municipalities insure repayment for their obligations. Although bond insurance
reduces the risk of loss due to default by an issuer, such bonds remain subject
to the risk that market value may fluctuate for other reasons and there is no
assurance that the insurance company will meet its obligations. These securities
have been identified in the Statements of Net Assets.
61
<PAGE>
DELAWARE(SM)
INVESTMENTS
- ----------------------
Philadelphia o London
For Shareholders
1.800.523.1918
For Securities Dealers
1.800.362.7500
For Financial Institutions
Representatives Only
1.800.659.2265
www.delawareinvestments.com
This semi-annual report is for the information of Delaware Tax-Free Idaho Fund,
Delaware Tax-Free Iowa Fund, Delaware Tax-Free Kansas Fund, Delaware Tax-Free
Missouri Insured Fund, Delaware Montana Municipal Bond Fund, Delaware Tax-Free
North Dakota Fund, Delaware Tax-Free Oregon Insured Fund and Delaware Tax-Free
Wisconsin Fund shareholders, but it may be used with prospective investors when
preceded or accompanied by a current Prospectus for these Funds and the Delaware
Investments Performance Update for the most recently completed calendar quarter.
The prospectus sets forth details about charges, expenses, investment objectives
and operating policies of each Funds. You should read the prospectus carefully
before you invest. The figures in this report represent past results which are
not a guarantee of future results. The return and principal value of an
investment in each Funds will fluctuate so that shares, when redeemed, may be
worth more or less than their original cost.
<PAGE>
BOARD OF TRUSTEES
Wayne A. Stork
Chairman
Delaware Investments Family of Funds
Philadelphia, PA
Walter P. Babich
Board Chairman
Citadel Constructors, Inc.
King of Prussia, PA
David K. Downes
President and Chief Executive Officer
Delaware Investments Family of Funds
Philadelphia, PA
John H. Durham
Private Investor
Horsham, PA
Anthony D. Knerr
Consultant, Anthony Knerr & Associates
New York, NY
Ann R. Leven
Former Treasurer, National Gallery of Art
Washington, DC
Thomas F. Madison
President and Chief Executive Officer
MLM Partners, Inc.
Minneapolis, MN
Charles E. Peck
Retired
Fredericksburg, VA
Janet L. Yeomans
Vice President and Treasurer
3M Corporation
St. Paul, MN
AFFILIATED OFFICERS
Charles E. Haldeman, Jr.
President and Chief Executive Officer
Delaware Management Holdings, Inc
Philadelphia, PA
Richard J. Flannery
Executive Vice President and
General Counsel
Delaware Investments Family of Funds
Philadelphia, PA
Bruce D. Barton
President and Chief Executive Officer
Delaware Distributors, L.P.
Philadelphia, PA
Investment Manager
Delaware Management Company
Philadelphia, PA
International Affiliate
Delaware International Advisers Ltd.
London, England
National Distributor
Delaware Distributors, L.P.
Philadelphia, PA
Shareholder Servicing, Dividend
Disbursing and Transfer Agent
Delaware Service Company, Inc.
Philadelphia, PA
1818 Market Street
Philadelphia, PA 19103-3682
(2902) Printed in the USA
SA-CORN [2/00]PP 4/00 (J5755)
