September 22, 1997
VOYAGEUR MUTUAL FUNDS III, INC.
Tax-Efficient Equity Fund
A Class/B Class/C Class
Supplement to Prospectus dated August 28, 1997
The following replaces the first footnote under the Shareholder
Transaction Expenses Table under Summary of Expenses:
* Class A purchases of $1 million or more may be made at
net asset value. However, if in connection with any
such purchase a dealer commission is paid to the
financial adviser through whom such purchase is
effected, a CDSC of 1% will be imposed on certain
redemptions within 12 months of purchase ("Limited
CDSC"). See Contingent Deferred Sales Charge for Certain
Redemptions of Class A Shares Purchased at Net Asset Value
under Redemption and Exchange, for more information
concerning the Limited CDSC and other circumstances
where a CDSC may be imposed on redemptions of Class A
Shares.
The following replaces the first footnote for the expense
illustration provided under Summary of Expenses:
1 Generally, no redemption charge is assessed upon redemption
of Class A Shares. Under certain circumstances, however, a
Limited CDSC or other CDSC, which has not been reflected in
this calculation, may be imposed on certain redemptions.
See Contingent Deferred Sales Charge for Certain Redemptions
of Class A Shares Purchased at Net Asset Value under
Redemption and Exchange.
The following supplements the section Buying Class A Shares at
Net Asset Value under Classes of Shares:
For the period September 22, 1997 through December 31,
1997, Class A Shares of the Fund may be purchased at net asset
value by any investor participating in the HD Vest Financial
Advisors' NAV Purchase Program for purchases of less than $1
million. However, a contingent deferred sales charge may apply
upon redemption of such shares. See Contingent Deferred Sales
Charge for Certain Redemptions of Class A Shares Purchased at Net
Asset Value under Redemption and Exchange.
The following supplements the section Contingent Deferred Sales
Charge for Certain Redemptions of Class A Shares Purchased at Net
Asset Value under Redemption and Exchange:
A contingent deferred sales charge will be imposed on
redemptions of Class A Shares (or shares into which such Class A
Shares are exchanged) made within two years of purchase, if such
shares were purchased at net asset value pursuant to the HD Vest
Financial Advisors' NAV Purchase Program. The contingent
deferred sales charge will be paid to the Distributor and will
be equal to the lesser of 2.5% of: (1) the net asset value at
the time of purchase of Class A Shares being redeemed; or (2)
the net asset value of such Class A Shares at the time of
redemption. For purposes of this formula, the "net asset value
at the time of purchase" will be the net asset value at purchase
of Class A Shares even if those shares are later exchanged for
shares of another Delaware Group fund and, in the event of an
exchange of Class A Shares, the "net asset value of such shares
at the time of redemption" will be the net asset value of the
shares acquired in exchange.
