VOYAGEUR MUTUAL FUNDS III INC /MN/
NSAR-A, 1998-12-30
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<PAGE>      PAGE  1
000 A000000 10/31/98
000 C000000 0000763749
000 D000000 N
000 E000000 NF
000 F000000 Y
000 G000000 N
000 H000000 N
000 I000000 3.0.a
000 J000000 U
001 A000000 VOYAGEUR MUTUAL FUNDS III, INC.
001 B000000 811-4547
001 C000000 2152552923
002 A000000 2005 MARKET STREET
002 B000000 PHILADELPHIA
002 C000000 PA
002 D010000 19103
003  000000 N
004  000000 N
005  000000 N
006  000000 N
007 A000000 Y
007 B000000  3
007 C010100  1
007 C020100 GROWTH STOCK FUND
007 C030100 N
007 C010200  2
007 C010300  3
007 C020300 AGGRESSIVE GROWTH FUND
007 C030300 N
007 C010400  4
007 C010500  5
007 C020500 TAX-EFFICIENT EQUITY FUND
007 C030500 N
007 C010600  6
007 C010700  7
007 C010800  8
007 C010900  9
007 C011000 10
020 A000001 ALEX BROWN AND SONS
020 B000001 52-1319768
020 C000001  36972
020 A000002 MORGAN STANLEY & CO., INC.
020 B000002 13-3443395
020 C000002  32112
020 A000003 BEAR STEARNS AND CO.
020 B000003 13-3299429
020 C000003  19296
020 A000004 MERRILL LYNCH PIERCE
020 B000004 13-5674085
020 C000004  13821
020 A000005 JEFFERIES AND  CO., INC.
<PAGE>      PAGE  2
020 C000005  13080
020 A000006 EQUITABLE SECURITIES
020 C000006  12840
020 A000007 SMITH BARNEY AND CO.
020 B000007 13-1912900
020 C000007  12420
020 A000008 FOX-PITT
020 C000008  11874
020 A000009 DONALDSON LUFKIN
020 C000009  11598
020 A000010 J.P. MORGAN AND CO.
020 B000010 13-3224016
020 C000010  10326
021  000000   174339
022 A000001 MORGAN (J.P.) SECURITIES, INC.
022 B000001 13-3224016
022 C000001     59785
022 D000001     50586
022 A000002 GOLDMAN, SACHS & CO.
022 B000002 13-5108880
022 C000002     60113
022 D000002     11136
022 A000003 FIRST BOSTON CORP.
022 B000003 13-5659485
022 C000003     65191
022 D000003         0
022 A000004 ALEX BROWN AND SONS
022 B000004 52-1319768
022 C000004     20715
022 D000004      5809
022 A000005 PRUDENTIAL INVESTMENT
022 C000005     11245
022 D000005     13058
022 A000006 MORGAN STANLEY & CO., INC.
022 B000006 13-3443395
022 C000006     11683
022 D000006     10600
022 A000007 ROBERTSON AND STEPHENS
022 B000007 94-2524501
022 C000007     12332
022 D000007      4025
022 A000008 MERRILL LYNCH PIERCE
022 B000008 13-5674085
022 C000008     15877
022 D000008         0
022 A000009 HERZOG HEINE GEDULD
022 C000009      4866
022 D000009      9715
022 A000010 TROSTER, SINGER AND CO.
022 C000010      3573
022 D000010      4661
<PAGE>      PAGE  3
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<PAGE>      PAGE  4
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070 M020100 N
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070 O020100 N
070 P010100 N
<PAGE>      PAGE  5
070 P020100 N
070 Q010100 N
070 Q020100 N
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070 R020100 N
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<PAGE>      PAGE  6
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<PAGE>      PAGE  7
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042 D000300   0
042 E000300   0
042 F000300   0
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044  000300      0
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062 F000300   0.0
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063 A000300   0
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070 A010300 Y
070 A020300 Y
070 B010300 Y
070 B020300 N
070 C010300 N
070 C020300 N
070 D010300 Y
<PAGE>      PAGE  8
070 D020300 N
070 E010300 N
070 E020300 N
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070 G020300 N
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070 I020300 N
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070 J020300 N
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070 M020300 N
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070 O020300 N
070 P010300 N
070 P020300 N
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070 Q020300 N
070 R010300 N
070 R020300 N
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<PAGE>      PAGE  9
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<PAGE>      PAGE  10
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<PAGE>      PAGE  11
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070 A010500 Y
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070 J020500 N
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070 K020500 N
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070 L020500 N
070 M010500 Y
070 M020500 N
070 N010500 N
070 N020500 N
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070 O020500 N
070 P010500 N
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<PAGE>      PAGE  12
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<PAGE>      PAGE  13
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SIGNATURE   GEORGE M. CHAMBERLAIN, JR.                   
TITLE       SR. VP/SECRETARY    
 


<TABLE> <S> <C>

<ARTICLE> 6
<CIK> 0000763749
<NAME> VOYAGEUR MUTUAL FUNDS III, INC.
<SERIES>
   <NUMBER> 011
   <NAME> GROWTH STOCK FUND A CLASS
       
<S>                             <C>
<PERIOD-TYPE>                   6-MOS
<FISCAL-YEAR-END>                          APR-30-1999
<PERIOD-END>                               OCT-31-1998
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<INVESTMENTS-AT-VALUE>                      45,263,435
<RECEIVABLES>                                  100,745
<ASSETS-OTHER>                                       0
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<APPREC-INCREASE-CURRENT>                  (1,414,242)
<NET-CHANGE-FROM-OPS>                          297,595
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                            0
<DISTRIBUTIONS-OF-GAINS>                     1,266,094
<DISTRIBUTIONS-OTHER>                                0
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<NUMBER-OF-SHARES-REDEEMED>                    117,321
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<OVERDISTRIB-NII-PRIOR>                              0
<OVERDIST-NET-GAINS-PRIOR>                           0
<GROSS-ADVISORY-FEES>                          218,528
<INTEREST-EXPENSE>                                   0
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<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
        


</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<CIK> 0000763749
<NAME> VOYAGEUR MUTUAL FUNDS III, INC.
<SERIES>
   <NUMBER> 012
   <NAME> GROWTH STOCK FUND B CLASS
       
<S>                             <C>
<PERIOD-TYPE>                   6-MOS
<FISCAL-YEAR-END>                          APR-30-1999
<PERIOD-END>                               OCT-31-1998
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<INVESTMENTS-AT-VALUE>                      45,263,435
<RECEIVABLES>                                  100,745
<ASSETS-OTHER>                                       0
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<PAYABLE-FOR-SECURITIES>                             0
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<TOTAL-LIABILITIES>                            177,952
<SENIOR-EQUITY>                                      0
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<EQUALIZATION>                                       0
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<DISTRIBUTIONS-OTHER>                                0
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<NUMBER-OF-SHARES-REDEEMED>                     11,696
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<ACCUMULATED-NII-PRIOR>                              0
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<OVERDISTRIB-NII-PRIOR>                              0
<OVERDIST-NET-GAINS-PRIOR>                           0
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<INTEREST-EXPENSE>                                   0
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<AVERAGE-NET-ASSETS>                         2,097,836
<PER-SHARE-NAV-BEGIN>                           31.200
<PER-SHARE-NII>                                 (0.055)
<PER-SHARE-GAIN-APPREC>                          0.130
<PER-SHARE-DIVIDEND>                                 0
<PER-SHARE-DISTRIBUTIONS>                        0.985
<RETURNS-OF-CAPITAL>                                 0
<PER-SHARE-NAV-END>                             30.290
<EXPENSE-RATIO>                                  2.500
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
        


</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<CIK> 0000763749
<NAME> VOYAGEUR MUTUAL FUNDS III, INC.
<SERIES>
   <NUMBER> 013
   <NAME> GROWTH STOCK FUND C CLASS
       
<S>                             <C>
<PERIOD-TYPE>                   6-MOS
<FISCAL-YEAR-END>                          APR-30-1999
<PERIOD-END>                               OCT-31-1998
<INVESTMENTS-AT-COST>                       29,372,295
<INVESTMENTS-AT-VALUE>                      45,263,435
<RECEIVABLES>                                  100,745
<ASSETS-OTHER>                                       0
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<TOTAL-ASSETS>                              45,370,247
<PAYABLE-FOR-SECURITIES>                             0
<SENIOR-LONG-TERM-DEBT>                              0
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<TOTAL-LIABILITIES>                            177,952
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                    27,606,212
<SHARES-COMMON-STOCK>                           39,445
<SHARES-COMMON-PRIOR>                           35,654
<ACCUMULATED-NII-CURRENT>                     (12,330)
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                      1,707,273
<OVERDISTRIBUTION-GAINS>                             0
<ACCUM-APPREC-OR-DEPREC>                    15,891,140
<NET-ASSETS>                                 1,194,737
<DIVIDEND-INCOME>                              383,931
<INTEREST-INCOME>                               30,844
<OTHER-INCOME>                                       0
<EXPENSES-NET>                                 392,641
<NET-INVESTMENT-INCOME>                         22,134
<REALIZED-GAINS-CURRENT>                     1,689,703
<APPREC-INCREASE-CURRENT>                  (1,414,242)
<NET-CHANGE-FROM-OPS>                          297,595
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                            0
<DISTRIBUTIONS-OF-GAINS>                        35,317
<DISTRIBUTIONS-OTHER>                                0
<NUMBER-OF-SHARES-SOLD>                          7,184
<NUMBER-OF-SHARES-REDEEMED>                      4,571
<SHARES-REINVESTED>                              1,178
<NET-CHANGE-IN-ASSETS>                         182,686
<ACCUMULATED-NII-PRIOR>                              0
<ACCUMULATED-GAINS-PRIOR>                    1,374,101
<OVERDISTRIB-NII-PRIOR>                              0
<OVERDIST-NET-GAINS-PRIOR>                           0
<GROSS-ADVISORY-FEES>                          218,528
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                405,105
<AVERAGE-NET-ASSETS>                         1,122,883
<PER-SHARE-NAV-BEGIN>                           31.190
<PER-SHARE-NII>                                 (0.076)
<PER-SHARE-GAIN-APPREC>                          0.161
<PER-SHARE-DIVIDEND>                                 0
<PER-SHARE-DISTRIBUTIONS>                        0.985
<RETURNS-OF-CAPITAL>                                 0
<PER-SHARE-NAV-END>                             30.290
<EXPENSE-RATIO>                                  2.500
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
        


</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<CIK> 0000763749
<NAME> VOYAGEUR MUTUAL FUNDS III, INC.
<SERIES>
   <NUMBER> 014
   <NAME> GROWTH STOCK FUND INSTITUTIONAL CLASS
       
<S>                             <C>
<PERIOD-TYPE>                   6-MOS
<FISCAL-YEAR-END>                          APR-30-1999
<PERIOD-END>                               OCT-31-1998
<INVESTMENTS-AT-COST>                       29,372,295
<INVESTMENTS-AT-VALUE>                      45,263,435
<RECEIVABLES>                                  100,745
<ASSETS-OTHER>                                       0
<OTHER-ITEMS-ASSETS>                             6,068
<TOTAL-ASSETS>                              45,370,247
<PAYABLE-FOR-SECURITIES>                             0
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                      177,952
<TOTAL-LIABILITIES>                            177,952
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                    27,606,212
<SHARES-COMMON-STOCK>                           25,664
<SHARES-COMMON-PRIOR>                           24,935
<ACCUMULATED-NII-CURRENT>                     (12,330)
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                      1,707,273
<OVERDISTRIBUTION-GAINS>                             0
<ACCUM-APPREC-OR-DEPREC>                    15,891,140
<NET-ASSETS>                                   802,854
<DIVIDEND-INCOME>                              383,931
<INTEREST-INCOME>                               30,844
<OTHER-INCOME>                                       0
<EXPENSES-NET>                                 392,641
<NET-INVESTMENT-INCOME>                         22,134
<REALIZED-GAINS-CURRENT>                     1,689,703
<APPREC-INCREASE-CURRENT>                  (1,414,242)
<NET-CHANGE-FROM-OPS>                          297,595
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                            0
<DISTRIBUTIONS-OF-GAINS>                        24,583
<DISTRIBUTIONS-OTHER>                                0
<NUMBER-OF-SHARES-SOLD>                             57
<NUMBER-OF-SHARES-REDEEMED>                        129
<SHARES-REINVESTED>                                801
<NET-CHANGE-IN-ASSETS>                         182,686
<ACCUMULATED-NII-PRIOR>                              0
<ACCUMULATED-GAINS-PRIOR>                    1,374,101
<OVERDISTRIB-NII-PRIOR>                              0
<OVERDIST-NET-GAINS-PRIOR>                           0
<GROSS-ADVISORY-FEES>                          218,528
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                405,105
<AVERAGE-NET-ASSETS>                           770,381
<PER-SHARE-NAV-BEGIN>                           32.030
<PER-SHARE-NII>                                  0.068 
<PER-SHARE-GAIN-APPREC>                          0.167
<PER-SHARE-DIVIDEND>                                 0
<PER-SHARE-DISTRIBUTIONS>                        0.985
<RETURNS-OF-CAPITAL>                                 0
<PER-SHARE-NAV-END>                             31.280
<EXPENSE-RATIO>                                  1.500
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
        


</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<CIK> 0000763749
<NAME> VOYAGEUR MUTUAL FUNDS III, INC.
<SERIES>
   <NUMBER> 031
   <NAME> AGGRESSIVE GROWTH FUND A CLASS
       
<S>                             <C>
<PERIOD-TYPE>                   6-MOS
<FISCAL-YEAR-END>                          APR-30-1999
<PERIOD-END>                               OCT-31-1998
<INVESTMENTS-AT-COST>                      104,286,245
<INVESTMENTS-AT-VALUE>                     108,583,777
<RECEIVABLES>                                3,108,192
<ASSETS-OTHER>                                 108,300
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                             111,800,268
<PAYABLE-FOR-SECURITIES>                     3,941,716
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                      532,483
<TOTAL-LIABILITIES>                          4,474,198
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                   111,572,550
<SHARES-COMMON-STOCK>                        3,122,849
<SHARES-COMMON-PRIOR>                        1,552,126
<ACCUMULATED-NII-CURRENT>                    (688,784)
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                    (7,855,227)
<OVERDISTRIBUTION-GAINS>                             0
<ACCUM-APPREC-OR-DEPREC>                     4,297,531
<NET-ASSETS>                                56,328,591
<DIVIDEND-INCOME>                               65,614
<INTEREST-INCOME>                              279,259
<OTHER-INCOME>                                       0
<EXPENSES-NET>                                 896,684
<NET-INVESTMENT-INCOME>                      (551,811)
<REALIZED-GAINS-CURRENT>                   (7,024,354)
<APPREC-INCREASE-CURRENT>                  (1,585,077)
<NET-CHANGE-FROM-OPS>                      (9,161,242)
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                            0
<DISTRIBUTIONS-OF-GAINS>                       759,414
<DISTRIBUTIONS-OTHER>                                0
<NUMBER-OF-SHARES-SOLD>                      2,117,365
<NUMBER-OF-SHARES-REDEEMED>                    584,886
<SHARES-REINVESTED>                             38,244
<NET-CHANGE-IN-ASSETS>                      50,578,425
<ACCUMULATED-NII-PRIOR>                              0
<ACCUMULATED-GAINS-PRIOR>                      506,280
<OVERDISTRIB-NII-PRIOR>                              0
<OVERDIST-NET-GAINS-PRIOR>                           0
<GROSS-ADVISORY-FEES>                          431,419
<INTEREST-EXPENSE>                               2,705
<GROSS-EXPENSE>                              1,118,317
<AVERAGE-NET-ASSETS>                        45,450,624
<PER-SHARE-NAV-BEGIN>                           20.570
<PER-SHARE-NII>                                (0.048)
<PER-SHARE-GAIN-APPREC>                        (2.115)
<PER-SHARE-DIVIDEND>                                 0
<PER-SHARE-DISTRIBUTIONS>                        0.367
<RETURNS-OF-CAPITAL>                                 0
<PER-SHARE-NAV-END>                             18.040
<EXPENSE-RATIO>                                  1.750
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
        


</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<CIK> 0000763749
<NAME> VOYAGEUR MUTUAL FUNDS III, INC.
<SERIES>
   <NUMBER> 032
   <NAME> AGGRESSIVE GROWTH FUND B CLASS
       
<S>                             <C>
<PERIOD-TYPE>                   6-MOS
<FISCAL-YEAR-END>                          APR-30-1999
<PERIOD-END>                               OCT-31-1998
<INVESTMENTS-AT-COST>                      104,286,245
<INVESTMENTS-AT-VALUE>                     108,583,777
<RECEIVABLES>                                3,108,192
<ASSETS-OTHER>                                 108,300
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                             111,800,268
<PAYABLE-FOR-SECURITIES>                     3,941,716
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                      532,483
<TOTAL-LIABILITIES>                          4,474,198
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                   111,572,550
<SHARES-COMMON-STOCK>                        2,093,523
<SHARES-COMMON-PRIOR>                          826,760
<ACCUMULATED-NII-CURRENT>                    (688,784)
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                    (7,855,227)
<OVERDISTRIBUTION-GAINS>                             0
<ACCUM-APPREC-OR-DEPREC>                     4,297,531
<NET-ASSETS>                                36,559,613
<DIVIDEND-INCOME>                               65,614
<INTEREST-INCOME>                              279,259
<OTHER-INCOME>                                       0
<EXPENSES-NET>                                 896,684
<NET-INVESTMENT-INCOME>                      (551,811)
<REALIZED-GAINS-CURRENT>                   (7,024,354)
<APPREC-INCREASE-CURRENT>                  (1,585,077)
<NET-CHANGE-FROM-OPS>                      (9,161,242)
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                            0
<DISTRIBUTIONS-OF-GAINS>                       495,438
<DISTRIBUTIONS-OTHER>                                0
<NUMBER-OF-SHARES-SOLD>                      1,390,340
<NUMBER-OF-SHARES-REDEEMED>                    148,928
<SHARES-REINVESTED>                             25,351
<NET-CHANGE-IN-ASSETS>                      50,578,425
<ACCUMULATED-NII-PRIOR>                              0
<ACCUMULATED-GAINS-PRIOR>                      506,280
<OVERDISTRIB-NII-PRIOR>                              0
<OVERDIST-NET-GAINS-PRIOR>                           0
<GROSS-ADVISORY-FEES>                          431,419
<INTEREST-EXPENSE>                               2,705
<GROSS-EXPENSE>                              1,118,317
<AVERAGE-NET-ASSETS>                        28,540,286
<PER-SHARE-NAV-BEGIN>                           20.000
<PER-SHARE-NII>                                (0.083)
<PER-SHARE-GAIN-APPREC>                        (2.090)
<PER-SHARE-DIVIDEND>                                 0
<PER-SHARE-DISTRIBUTIONS>                        0.367
<RETURNS-OF-CAPITAL>                                 0
<PER-SHARE-NAV-END>                             17.460
<EXPENSE-RATIO>                                  2.500
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
        


</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<CIK> 0000763749
<NAME> VOYAGEUR MUTUAL FUNDS III, INC.
<SERIES>
   <NUMBER> 033
   <NAME> AGGRESSIVE GROWTH FUND C CLASS
       
<S>                             <C>
<PERIOD-TYPE>                   6-MOS
<FISCAL-YEAR-END>                          APR-30-1999
<PERIOD-END>                               OCT-31-1998
<INVESTMENTS-AT-COST>                      104,286,245
<INVESTMENTS-AT-VALUE>                     108,583,777
<RECEIVABLES>                                3,108,192
<ASSETS-OTHER>                                 108,300
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                             111,800,268
<PAYABLE-FOR-SECURITIES>                     3,941,716
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                      532,483
<TOTAL-LIABILITIES>                          4,474,198
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                   111,572,550
<SHARES-COMMON-STOCK>                          662,521
<SHARES-COMMON-PRIOR>                          297,565
<ACCUMULATED-NII-CURRENT>                    (688,784)
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                    (7,855,227)
<OVERDISTRIBUTION-GAINS>                             0
<ACCUM-APPREC-OR-DEPREC>                     4,297,531
<NET-ASSETS>                                11,450,332
<DIVIDEND-INCOME>                               65,614
<INTEREST-INCOME>                              279,259
<OTHER-INCOME>                                       0
<EXPENSES-NET>                                 896,684
<NET-INVESTMENT-INCOME>                      (551,811)
<REALIZED-GAINS-CURRENT>                   (7,024,354)
<APPREC-INCREASE-CURRENT>                  (1,585,077)
<NET-CHANGE-FROM-OPS>                      (9,161,242)
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                            0
<DISTRIBUTIONS-OF-GAINS>                       167,011
<DISTRIBUTIONS-OTHER>                                0
<NUMBER-OF-SHARES-SOLD>                        436,174
<NUMBER-OF-SHARES-REDEEMED>                     79,969
<SHARES-REINVESTED>                              8,751
<NET-CHANGE-IN-ASSETS>                      50,578,425
<ACCUMULATED-NII-PRIOR>                              0
<ACCUMULATED-GAINS-PRIOR>                      506,280
<OVERDISTRIB-NII-PRIOR>                              0
<OVERDIST-NET-GAINS-PRIOR>                           0
<GROSS-ADVISORY-FEES>                          431,419
<INTEREST-EXPENSE>                               2,705
<GROSS-EXPENSE>                              1,118,317
<AVERAGE-NET-ASSETS>                         9,354,931
<PER-SHARE-NAV-BEGIN>                           19.800
<PER-SHARE-NII>                                (0.084)
<PER-SHARE-GAIN-APPREC>                        (2.069)
<PER-SHARE-DIVIDEND>                                 0
<PER-SHARE-DISTRIBUTIONS>                        0.367
<RETURNS-OF-CAPITAL>                                 0
<PER-SHARE-NAV-END>                             17.280
<EXPENSE-RATIO>                                  2.500
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
        


</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<CIK> 0000763749
<NAME> VOYAGEUR MUTUAL FUNDS III, INC.
<SERIES>
   <NUMBER> 034
   <NAME> AGGRESSIVE GROWTH FUND INSTITUTIONAL CLASS
       
<S>                             <C>
<PERIOD-TYPE>                   6-MOS
<FISCAL-YEAR-END>                          APR-30-1999
<PERIOD-END>                               OCT-31-1998
<INVESTMENTS-AT-COST>                      104,286,245
<INVESTMENTS-AT-VALUE>                     108,583,777
<RECEIVABLES>                                3,108,192
<ASSETS-OTHER>                                 108,300
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                             111,800,268
<PAYABLE-FOR-SECURITIES>                     3,941,716
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                      532,483
<TOTAL-LIABILITIES>                          4,474,198
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                   111,572,550
<SHARES-COMMON-STOCK>                          164,872
<SHARES-COMMON-PRIOR>                          115,844
<ACCUMULATED-NII-CURRENT>                    (688,784)
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                    (7,855,227)
<OVERDISTRIBUTION-GAINS>                             0
<ACCUM-APPREC-OR-DEPREC>                     4,297,531
<NET-ASSETS>                                 2,987,534
<DIVIDEND-INCOME>                               65,614
<INTEREST-INCOME>                              279,259
<OTHER-INCOME>                                       0
<EXPENSES-NET>                                 896,684
<NET-INVESTMENT-INCOME>                      (551,811)
<REALIZED-GAINS-CURRENT>                   (7,024,354)
<APPREC-INCREASE-CURRENT>                  (1,585,077)
<NET-CHANGE-FROM-OPS>                      (9,161,242)
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                            0
<DISTRIBUTIONS-OF-GAINS>                        52,266
<DISTRIBUTIONS-OTHER>                                0
<NUMBER-OF-SHARES-SOLD>                        191,134
<NUMBER-OF-SHARES-REDEEMED>                    144,835
<SHARES-REINVESTED>                              2,729
<NET-CHANGE-IN-ASSETS>                      50,578,425
<ACCUMULATED-NII-PRIOR>                              0
<ACCUMULATED-GAINS-PRIOR>                      506,280
<OVERDISTRIB-NII-PRIOR>                              0
<OVERDIST-NET-GAINS-PRIOR>                           0
<GROSS-ADVISORY-FEES>                          431,419
<INTEREST-EXPENSE>                               2,705
<GROSS-EXPENSE>                              1,118,317
<AVERAGE-NET-ASSETS>                         2,724,914
<PER-SHARE-NAV-BEGIN>                           20.640
<PER-SHARE-NII>                                (0.073)
<PER-SHARE-GAIN-APPREC>                        (2.080)
<PER-SHARE-DIVIDEND>                                 0
<PER-SHARE-DISTRIBUTIONS>                        0.367
<RETURNS-OF-CAPITAL>                                 0
<PER-SHARE-NAV-END>                             18.120
<EXPENSE-RATIO>                                  1.500
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
        


</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<CIK> 0000763749
<NAME> VOYAGEUR MUTUAL FUNDS III, INC.
<SERIES>
   <NUMBER> 051
   <NAME> TAX EFFICIENT EQUITY FUND A CLASS
       
<S>                             <C>
<PERIOD-TYPE>                   6-MOS
<FISCAL-YEAR-END>                          APR-30-1999
<PERIOD-END>                               OCT-31-1998
<INVESTMENTS-AT-COST>                       43,800,819
<INVESTMENTS-AT-VALUE>                      46,466,194
<RECEIVABLES>                                  358,440
<ASSETS-OTHER>                                       0
<OTHER-ITEMS-ASSETS>                             2,914
<TOTAL-ASSETS>                              46,827,548
<PAYABLE-FOR-SECURITIES>                       335,263
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                      112,811
<TOTAL-LIABILITIES>                            448,074
<SENIOR-EQUITY>                                 43,164
<PAID-IN-CAPITAL-COMMON>                    44,393,361
<SHARES-COMMON-STOCK>                        2,223,565
<SHARES-COMMON-PRIOR>                        1,261,981
<ACCUMULATED-NII-CURRENT>                            0
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                      (722,426)
<OVERDISTRIBUTION-GAINS>                             0
<ACCUM-APPREC-OR-DEPREC>                     2,665,375
<NET-ASSETS>                                23,991,170
<DIVIDEND-INCOME>                              204,665
<INTEREST-INCOME>                               61,214
<OTHER-INCOME>                                       0
<EXPENSES-NET>                                 322,890
<NET-INVESTMENT-INCOME>                       (57,011)
<REALIZED-GAINS-CURRENT>                     (640,645)
<APPREC-INCREASE-CURRENT>                      166,259
<NET-CHANGE-FROM-OPS>                        (531,397)
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                            0
<DISTRIBUTIONS-OF-GAINS>                             0
<DISTRIBUTIONS-OTHER>                                0
<NUMBER-OF-SHARES-SOLD>                      1,479,489
<NUMBER-OF-SHARES-REDEEMED>                    517,905
<SHARES-REINVESTED>                                  0
<NET-CHANGE-IN-ASSETS>                      22,071,913
<ACCUMULATED-NII-PRIOR>                              0
<ACCUMULATED-GAINS-PRIOR>                     (81,781)
<OVERDISTRIB-NII-PRIOR>                              0
<OVERDIST-NET-GAINS-PRIOR>                           0
<GROSS-ADVISORY-FEES>                          134,186
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                393,564
<AVERAGE-NET-ASSETS>                        18,995,955
<PER-SHARE-NAV-BEGIN>                           11.010
<PER-SHARE-NII>                                  0.002
<PER-SHARE-GAIN-APPREC>                        (0.222)
<PER-SHARE-DIVIDEND>                             0.000
<PER-SHARE-DISTRIBUTIONS>                        0.000
<RETURNS-OF-CAPITAL>                             0.000
<PER-SHARE-NAV-END>                             10.790
<EXPENSE-RATIO>                                  1.450
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
        

</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<CIK> 0000763749
<NAME> VOYAGEUR MUTUAL FUNDS III, INC.
<SERIES>
   <NUMBER> 052
   <NAME> TAX EFFICIENT EQUITY FUND B CLASS
       
<S>                             <C>
<PERIOD-TYPE>                   6-MOS
<FISCAL-YEAR-END>                          APR-30-1999
<PERIOD-END>                               OCT-31-1998
<INVESTMENTS-AT-COST>                       43,800,819
<INVESTMENTS-AT-VALUE>                      46,466,194
<RECEIVABLES>                                  358,440
<ASSETS-OTHER>                                       0
<OTHER-ITEMS-ASSETS>                             2,914
<TOTAL-ASSETS>                              46,827,548
<PAYABLE-FOR-SECURITIES>                       335,263
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                      112,811
<TOTAL-LIABILITIES>                            448,074
<SENIOR-EQUITY>                                 43,164
<PAID-IN-CAPITAL-COMMON>                    44,393,361
<SHARES-COMMON-STOCK>                        1,500,542
<SHARES-COMMON-PRIOR>                          726,194
<ACCUMULATED-NII-CURRENT>                            0
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                      (722,426)
<OVERDISTRIBUTION-GAINS>                             0
<ACCUM-APPREC-OR-DEPREC>                     2,665,375
<NET-ASSETS>                                16,050,729
<DIVIDEND-INCOME>                              204,665
<INTEREST-INCOME>                               61,214
<OTHER-INCOME>                                       0
<EXPENSES-NET>                                 322,890
<NET-INVESTMENT-INCOME>                       (57,011)
<REALIZED-GAINS-CURRENT>                     (640,645)
<APPREC-INCREASE-CURRENT>                      166,259
<NET-CHANGE-FROM-OPS>                        (531,397)
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                            0
<DISTRIBUTIONS-OF-GAINS>                             0
<DISTRIBUTIONS-OTHER>                                0
<NUMBER-OF-SHARES-SOLD>                        819,419
<NUMBER-OF-SHARES-REDEEMED>                     45,071
<SHARES-REINVESTED>                                  0
<NET-CHANGE-IN-ASSETS>                      22,071,913
<ACCUMULATED-NII-PRIOR>                              0
<ACCUMULATED-GAINS-PRIOR>                     (81,781)
<OVERDISTRIB-NII-PRIOR>                              0
<OVERDIST-NET-GAINS-PRIOR>                           0
<GROSS-ADVISORY-FEES>                          134,186
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                393,564
<AVERAGE-NET-ASSETS>                        12,331,631
<PER-SHARE-NAV-BEGIN>                           10.960
<PER-SHARE-NII>                                 (0.038)
<PER-SHARE-GAIN-APPREC>                        (0.222)
<PER-SHARE-DIVIDEND>                             0.000
<PER-SHARE-DISTRIBUTIONS>                        0.000
<RETURNS-OF-CAPITAL>                             0.000
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<EXPENSE-RATIO>                                  2.200
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</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<CIK> 0000763749
<NAME> VOYAGEUR MUTUAL FUNDS III, INC.
<SERIES>
   <NUMBER> 053
   <NAME> TAX EFFICIENT EQUITY FUND C CLASS
       
<S>                             <C>
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<PERIOD-END>                               OCT-31-1998
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<EQUALIZATION>                                       0
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<EXPENSE-RATIO>                                  2.200
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</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<CIK> 0000763749
<NAME> VOYAGEUR MUTUAL FUNDS III, INC.
<SERIES>
   <NUMBER> 054
   <NAME> TAX EFFICIENT EQUITY FUND INSTITUTIONAL CLASS
       
<S>                             <C>
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<FISCAL-YEAR-END>                          APR-30-1999
<PERIOD-END>                               OCT-31-1998
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</TABLE>


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