COLORADO TAX FREE FUND
SEMI-ANNUAL REPORT
Dated June 30, 1995
Voyageur offers a family of mutual funds, each with an individual objective
stated in its prospectus. Investment objectives of the funds range from high
current income to long-term capital appreciation. Exchange privileges allow you
to change your investment between Voyageur Funds as your objectives or market
conditions change.
VOYAGEUR TAX FREE FUNDS seek high current income free from both Federal income
taxes and state income taxes (where applicable). The Funds invest in investment
grade municipal bonds.
Voyageur ARIZONA Tax Free Fund Voyageur KANSAS Tax Free Fund
Voyageur CALIFORNIA Tax Free Fund Voyageur MINNESOTA Tax Free Fund
Voyageur COLORADO Tax Free Fund Voyageur NEW MEXICO Tax Free Fund
Voyageur FLORIDA Tax Free Fund Voyageur NORTH DAKOTA Tax Free Fund
Voyageur IDAHO Tax Free Fund Voyageur UTAH Tax Free Fund
Voyageur IOWA Tax Free Fund Voyageur WISCONSIN Tax Free Fund
VOYAGEUR INSURED TAX FREE FUNDS seek high current income free from both Federal
income taxes and state income taxes (where applicable) with the added safety of
an insured portfolio. The Funds invest in insured municipal bonds.
<TABLE>
<S> <C>
Voyageur ARIZONA Insured Tax Free Fund Voyageur MISSOURI Insured Tax Free Fund
Voyageur CALIFORNIA Insured Tax Free Fund Voyageur NATIONAL Insured Tax Free Fund
Voyageur FLORIDA Insured Tax Free Fund Voyageur OREGON Insured Tax Free Fund
Voyageur MINNESOTA Insured Fund Voyageur WASHINGTON Insured Tax Free Fund
</TABLE>
VOYAGEUR LIMITED TERM FUNDS seek to preserve original investment principal while
providing income free from both Federal income taxes and state income taxes
(where applicable). The Funds invest in intermediate term investment grade
municipal bonds.
<TABLE>
<S> <C>
Voyageur FLORIDA Limited Term Tax Free Fund Voyageur MINNESOTA Limited Term Tax Free Fund
</TABLE>
VOYAGEUR EQUITY FUNDS seek long term capital appreciation by investing in common
stocks.
Voyageur AGGRESSIVE GROWTH Fund Voyageur INTERNATIONAL Equity Fund
Voyageur GROWTH Stock Fund
VOYAGEUR INCOME FUNDS seek high current income from investments issued,
guaranteed or otherwise backed by the full faith and credit of the U.S.
Government.
Voyageur U.S. GOVERNMENT SECURITIES Fund
VOYAGEUR CASH TRUST SERIES MONEY MARKET FUNDS seek high current income,
principal protection and liquidity by investing in money market instruments.
Voyageur CALIFORNIA MUNICIPAL CASH Series Voyageur MUNICIPAL CASH Series
Voyageur FLORIDA MUNICIPAL CASH Series Voyageur OHIO MUNICIPAL CASH Series
Voyageur GOVERNMENT CASH Series Voyageur PRIME CASH Series
Voyageur MINNESOTA MUNICIPAL CASH Series Voyageur TREASURY CASH Series
For more complete information regarding the investment objectives, fees and
expenses of the Funds, please obtain a prospectus from your Investment
Representative or from Voyageur, 90 South Seventh Street, Suite 4400,
Minneapolis, MN 55402-4115; (612) 376-7044 (local); 800-525-6584 (MKTG).
Dear Shareholder:
The municipal bond market's dramatic rebound in the first half of 1995 caused
many mutual funds to recover much of the ground they lost in last year's bear
market. This strong rally was evidenced by the Fund's performance. I am pleased
to present a considerably brighter picture of the municipal bond market and the
Fund's performance than was presented in my last letter to you.
The results below summarize the Fund's net asset value, dividends paid and total
net assets for the reporting period.
<TABLE>
<CAPTION>
NET ASSET NET ASSET TOTAL NET
VALUE VALUE DIVIDENDS ASSETS
BEGINNING END PAID PER END OF
PERIOD OF PERIOD OF PERIOD SHARE PERIOD (000'S)
<S> <C> <C> <C> <C>
Period ended June 30, 1995:
Class A Shares $9.53 $10.41 $0.28 $391,089
Class B Shares 10.22* 10.41 0.15 404
Class C Shares 9.53 10.41 0.24 816
</TABLE>
* Net asset value at March 22, 1995 (commencement of operations)
In the pages that follow, the Fund's Manager will update you on how the economy
and the municipal bond market affected the Fund during this reporting period.
The manager will discuss the Fund's performance and some strategies used to
maximize performance.
We assert that a long-range view of investing provides the greatest benefit to
our shareholders. We encourage you to maintain a long-range view of investing;
we believe that you will derive the greatest benefit by doing so.
Thank-you for investing with Voyageur.
Sincerely,
John G. Taft
President
Voyageur Colorado Tax Free Fund
DISCUSSION OF FUND MANAGEMENT BY ANDREW M. MCCULLAGH, JR., PORTFOLIO MANAGER
Mr. McCullagh is Senior Vice President and Tax Exempt Portfolio Manager for the
Voyageur Colorado Tax Free Fund. He has over 22 years experience in municipal
bond trading, underwriting, and portfolio management.
The Rocky Mountain region has been identified as one of the fastest growing
areas of the country. Last year, economic growth within the region exceeded five
percent. The pattern of growth has continued and Colorado's economy has
contributed significantly to the growth. Colorado municipal bonds traded at
higher prices compared to other single-state bonds due to the economic boom in
the state and the strong demand for quality in-state paper. The state's economic
growth favorably supported the price of state municipal bonds, as did the
limited supply of bonds. This limited supply continued to affect the overall
strength of the Colorado market. We continue to believe that the demand for
municipal bonds works in municipal bond investors' favor. Although local
municipalities must keep pace with the state's rapid growth, Amendment 1, the
state's tax limitation bill, will continue to limit the municipal issuance in
the state.
THE VOYAGEUR COLORADO TAX FREE FUND
At the end of the reporting period, the Fund's Class A total return was 12.20%,
compared with 11.25% for the Lehman Brothers 20 Year Municipal Bond Index, the
Fund's benchmark. Moreover, the Fund ranked third among its 20 fund competitors
in its Lipper objective of Colorado municipal debt funds for one year, 6/30/94
through 6/30/95. (Note: This Lipper Analytical Services ranking and the total
return information that follow represent past performance which is no guarantee
of future results. Shares may be worth more or less than their original cost.
The total return based on net asset value for the Fund's A-shares was 8.64% at
one year, 8.05% at five years, and 8.28% since inception.)
We attribute the favorable performance of the Fund, in part, to longer duration
and longer maturities. At the end of the reporting period, the duration of the
Fund was 9.9 years with an average maturity of 16.3 years. Because longer
maturity bonds are more price sensitive to changes in long term rates, this Fund
performed exceptionally well during the dramatic price rally and yield decline
in the first half of 1995. We shortened the Fund's duration in the second
quarter in anticipation of tax reform related price volatility. The asset
quality of this Fund remained extremely high as nearly 96% of the portfolio is
comprised of bonds rated in the three highest categories by Standard & Poor's
Corporation and/or Moody's Investor Service (AAA/Aaa, AA/Aa, and A/A).
<TABLE>
<CAPTION>
VOYAGEUR COLORADO TAX FREE FUND
STATEMENT OF ASSETS AND LIABILITIES (UNAUDITED) JUNE 30, 1995
ASSETS
<S> <C>
Investments in securities, (note 1) (identified cost: $396,424,577) . $ 393,788,214
Cash in bank on demand deposit ...................................... 83
Accrued interest receivable ......................................... 2,823,596
Receivable for Fund shares sold ..................................... 84,389
Total assets ..................................................... 396,696,282
LIABILITIES
Dividends payable to shareholders ................................... 423,681
Payable for investment securities purchased ......................... 3,579,660
Payable for Fund shares redeemed .................................... 196,586
Other accrued expenses .............................................. 187,561
Total liabilities ................................................ 4,387,488
NET ASSETS APPLICABLE TO OUTSTANDING CAPITAL STOCK .................. $ 392,308,794
Represented by:
Capital Stock - $.001 par value (note 1) ......................... $ 37,676
Additional paid-in capital ....................................... 403,878,568
Distributions in excess of net investment income ................. (280,594)
Accumulated net realized loss on investments ..................... (8,690,493)
Unrealized depreciation of investments ........................... (2,636,363)
TOTAL NET ASSETS ............................................... $ 392,308,794
Net assets applicable to outstanding Class A shares ................. $ 391,089,097
Net assets applicable to outstanding Class B shares ................. $ 403,569
Net assets applicable to outstanding Class C shares ................. $ 816,128
SHARES OUTSTANDING AND NET ASSET VALUE PER SHARE
Class A - Shares of Capital Stock outstanding: 37,558,878 (note 4) $ 10.41
Class B - Shares of Capital Stock outstanding: 38,751 (note 4) ... $ 10.41
Class C - Shares of Capital Stock outstanding: 78,365 (note 4) ... $ 10.41
</TABLE>
See accompanying notes to financial statements.
<TABLE>
<CAPTION>
VOYAGEUR COLORADO TAX FREE FUND
STATEMENT OF OPERATIONS (UNAUDITED) SIX MONTHS ENDED JUNE 30, 1995
<S> <C>
Investment income:
Interest ....................................................... $ 11,596,620
Expenses (note 3):
Investment advisory and management fee ......................... 953,251
Dividend-disbursing, administrative and accounting services fees 228,205
Printing, postage and supplies ................................. 57,433
Audit and accounting fees ...................................... 19,789
Legal fees ..................................................... 13,557
Distribution fees - Class A .................................... 475,952
Distribution fees - Class B .................................... 511
Distribution fees - Class C .................................... 3,211
Directors' fees ................................................ 14,234
Registration fees .............................................. 15,887
Custodian fees ................................................. 18,055
Other .......................................................... 15,166
Total expenses ............................................... 1,815,251
Less: Expenses waived, absorbed or reduced .................... (332,870)
Total net expenses ........................................... 1,482,381
Investment income - net ...................................... 10,114,239
Realized and unrealized gain (loss) on investments:
Realized loss on security transactions (note 2) ................ (8,505,089)
Net change in unrealized depreciation of investments ........... 42,505,338
Net gain on investments ...................................... 34,000,249
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS .............. $ 44,114,488
</TABLE>
See accompanying notes to financial statements.
<TABLE>
<CAPTION>
VOYAGEUR COLORADO TAX FREE FUND
STATEMENTS OF CHANGES IN NET ASSETS (UNAUDITED)
SIX MONTHS ENDED YEAR ENDED
JUNE 30, 1995 DECEMBER 31,
Operations: (UNAUDITED) 1994
<S> <C> <C>
Investment income - net ............................................ $ 10,114,239 $ 21,790,358
Realized gain (loss) on investments - net .......................... (8,505,089) 1,506,570
Net change in unrealized appreciation or depreciation of investments 42,505,338 (63,674,505)
Net increase (decrease) in net assets resulting from operations .. 44,114,488 (40,377,577)
Distributions to shareholders from:
Investment income - net:
Class A .......................................................... (10,483,324) (21,407,562)
Class B .......................................................... (2,051) N/A
Class C .......................................................... (14,180) (8,634)
Distributions in excess of net investment income:
Class A .......................................................... (280,275) --
Class B .......................................................... (1) N/A
Class C .......................................................... (318) --
Net realized gain on investments:
Class A .......................................................... -- (1,505,770)
Class C .......................................................... -- (800)
Excess distribution of net realized gain:
Class A .......................................................... -- (185,306)
Class C .......................................................... -- (98)
Total distributions ............................................ (10,780,149) (23,108,170)
Capital share transactions (note 4):
Proceeds from sale of shares:
Class A (note 3) ................................................. 24,635,465 91,267,797
Class B .......................................................... 400,868 N/A
Class C .......................................................... 309,080 533,645
Net asset value of shares issued in reinvestment of net
investment income distributions, distributions in excess of
net investment income and realized gain distributions:
Class A ...................................................... 7,870,178 22,202,278
Class B ...................................................... 1,671 N/A
Class C ...................................................... 12,798 6,041
Payments for redemption of shares:
Class A .......................................................... (28,837,967) (95,093,556)
Class B .......................................................... (10) N/A
Class C (note 3) ................................................. (20,031) (46,472)
Increase in net assets from capital share transactions ............. 4,372,052 18,869,733
Total increase (decrease) in net assets .......................... 37,706,391 (44,616,014)
Net assets at beginning of period ..................................... 354,602,403 399,218,417
Net assets at end of period (including distributions in excess of
net investment income of $280,594 and undistributed net investment
income of $385,316, respectively) ................................ $ 392,308,794 $ 354,602,403
</TABLE>
See accompanying notes to financial statements.
VOYAGEUR COLORADO TAX FREE FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
(1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Voyageur Colorado Tax Free Fund (the Fund), a fund within Voyageur Mutual
Funds II, Inc., is registered under the Investment Company Act of 1940 (as
amended) as a diversified, open-end management investment company. The Fund
offers Class A, Class B and Class C Shares. Class A Shares are sold with a
front-end sales charge. Class B Shares (first offered March 1, 1995) may be
subject to a contingent deferred sales charge and such shares automatically
convert to Class A after eight years. Class C Shares may be subject to a
contingent deferred sales charge and have no conversion feature. All classes of
shares have identical voting, dividend, liquidation and other rights and the
same terms and conditions, except that the level of distribution fees charged
differs between classes. Income, expenses (other than expenses incurred under
each class' Distribution Agreement) and realized and unrealized gains or losses
on investments are allocated to each class of shares based upon its relative net
assets. Pursuant to its amended articles of incorporation, Voyageur Mutual Funds
II, Inc. has 10 trillion shares of authorized capital stock that may be issued
in one or more series.
The significant accounting policies followed by the Fund are summarized as
follows:
Investments in Securities
Securities are valued at fair value as determined by the Board of Directors.
Determination of fair value involves, among other things, using pricing services
or prices quoted by independent brokers. Short-term securities are valued at
amortized cost which approximates market value.
Security transactions are accounted for on the trade date. Securities gains
and losses are calculated on the identified-cost basis. Interest income,
including level-yield amortization of premium and original issue discount, is
accrued daily.
The Fund concentrates its investments in a single state, and therefore may
have more credit risk related to the economic conditions of the state of
Colorado than a portfolio with broader geographical diversification.
Securities Purchased on a When-Issued Basis
Delivery and payment for securities which have been purchased by the Fund on
a forward commitment or when-issued basis can take place up to a month or more
after the transaction date. During this period, such securities are subject to
market fluctuations and the portfolio maintains, in a segregated account with
its custodian, assets with a market value equal to or greater than the amount of
its purchase commitments.
Federal Taxes
The Fund's policy is to comply with the requirements of the Internal Revenue
Code applicable to regulated investment companies and to distribute all of its
taxable income to shareholders in amounts that will avoid or minimize federal
income or excise taxes for the Fund. Net investment income and net realized
gains (losses) for the Fund may differ for financial statement and tax purposes
primarily because of losses deferred for tax purposes due to "wash sale"
transactions. The character of distributions made during the year from net
investment income or net realized gains may differ from their ultimate
characterization for federal income tax purposes. The effect on dividend
distributions on certain book-to-tax differences is reflected as excess
distributions of net realized gains in the statement of changes in net assets.
Also, due to the timing of dividend distributions, the fiscal year in which
amounts are distributed may differ from the year that the income or realized
gains (losses) were recorded by the Fund.
Distributions to Shareholders
Dividends declared daily from net investment income are payable monthly in
cash or reinvested in additional shares of the Fund. Net short-term realized
capital gains, if any, may be distributed throughout the year and net long-term
realized capital gains, when available, are distributed annually.
(2) SECURITIES TRANSACTIONS
Purchase cost and proceeds from sales of securities other than short-term
securities aggregated $187,303,872 and $193,666,677, respectively, for the
six-months ended June 30, 1995.
(3) EXPENSES
The Fund has an investment advisory and management agreement with Voyageur
Fund Managers, Inc. (Voyageur) under which Voyageur manages the Fund's assets
and provides other specified services. The fee for investment management and
advisory services is paid monthly and is based on the average daily net assets
of the Fund at the annual rate of .50%. In addition, the Fund will pay most
other operating expenses including directors' fees, registration fees, printing
of shareholder reports, legal and auditing services and other miscellaneous
expenses. Voyageur is obligated to pay all expenses of the Fund (excluding
distribution fees, insurance premiums on portfolio securities, taxes, interest
and brokerage commissions) which exceed 1% of average daily net assets, on an
annual basis.
The Fund will also pay a fee to Voyageur for acting as the Fund's dividend
disbursing, administrative and accounting services agent. The fee is paid
monthly and is equal to the sum of $1.33 per shareholder account per
month, a fixed monthly fee ranging from $1,000 to $1,500 based on the level of
the Fund's average daily net assets and an annualized percentage of average
daily net assets at reducing rates from .11% to .02%. The Fund is also
responsible for reimbursing Voyageur's out-of-pocket expense in connection with
the performance of dividend-disbursing, administrative and accounting services.
Each class of shares has a Distribution Agreement under Rule 12b-1 of the
Investment Company Act of 1940 with Voyageur Fund Distributors, Inc. (Fund
Distributors). Under these plans the Fund is obligated to pay Fund Distributors
a monthly distribution fee at an annual rate of .25% of average daily net assets
of the Class A Shares and 1.00% of average daily net assets of the Class B and
Class C Shares. Fund Distributors may waive all or part of its distribution fees
at its sole discretion. During the period ended June 30, 1995, Fund Distributors
voluntarily waived Class A distribution fees of $314,721 and Class B
distribution fees of $94. During the six months ended June 30, 1995, the Fund
earned $51,373 in credits on uninvested cash balances held at the custodian. Of
these credits, $18,055 were used to reduce certain fees for various custodial,
pricing and accounting services provided by the custodian bank and $33,318 are
included in interest income.
Sales charges paid by Class A shareholders were $332,025. Of this amount,
Fund Distributors received $49,513. Contingent deferred sales charges paid by
Class C Shareholders for the period ended June 30, 1995 were $151.
(4) CAPITAL STOCK
Transactions in shares of capital stock during each period were as follows:
<TABLE>
<CAPTION>
CLASS A CLASS B CLASS C
SIX MONTHS YEAR PERIOD FROM SIX MONTHS PERIOD FROM
ENDED ENDED MARCH 22, 1995* ENDED MAY 6, 1994*
JUNE 30, 1995 DECEMBER 31, TO JUNE 30, 1995 JUNE 30, 1995 TO DECEMBER 31,
(UNAUDITED) 1994 (UNAUDITED) (UNAUDITED) 1994
<S> <C> <C> <C> <C> <C>
Shares sold.................... 2,445,099 8,693,338 38,593 30,230 52,742
Shares issued for reinvested
distributions............... 777,755 2,106,985 159 1,258 615
Shares redeemed................ (2,834,845) (9,582,653) (1) (1,913) (4,567)
Increase in shares outstanding. 388,009 1,217,670 38,751 29,575 48,790
</TABLE>
* Commencement of Operations
(5) FINANCIAL HIGHLIGHTS
Per share data (rounded to the nearest cent) for a share of capital
stock outstanding and selected information for each period are as follows:
<TABLE>
<CAPTION>
CLASS A
SIX MONTHS
ENDED
JUNE 30, 1995 YEAR ENDED DECEMBER 31,
(UNAUDITED) 1994 1993 1992 1991 1990
<S> <C> <C> <C> <C> <C> <C>
Net asset value:
Beginning of period ................. $ 9.53 $ 11.10 $ 10.57 $ 10.27 $ 10.02 $ 10.00
Operations:
Net investment income ............... .26 .55 .56 .58 .61 .64
Net realized and unrealized
gain (loss) on investments ........ .90 (1.54) .85 .45 .43 .02
Total from operations ............... 1.16 (.99) 1.41 1.03 1.04 .66
Distributions to shareholders:
From net investment income .......... (.27) (.54)(a) (.56)(a) (.58)(a) (.61)(a) (.64)(a)
From distributions in excess of
net investment income ............. (.01) -- -- -- -- --
From net realized gains ............. -- (.04) (.32) (.15) (.18) --
Total distributions ............... (.28) (.58) (.88) (.73) (.79) (.64)
Net asset value:
End of period ....................... $ 10.41 $ 9.53 $ 11.10 $ 10.57 $ 10.27 $ 10.02
Total investment return (b) ............ 12.20% (9.12)% 13.72% 10.42% 10.80% 6.81%
Net assets at end of
period (000's omitted) .............. $391,089 $354,138 $399,218 $202,165 $104,863 $53,987
Ratios:
Ratio of expenses to
average daily net assets .......... .78%(e) .66% .75% .80% .82% 1.00%
Ratio of net investment income
to average daily net assets ....... 5.30%(e) 5.35% 4.97% 5.59% 6.15% 6.38%
Assuming no voluntary waivers and
reimbursements and reductions:
Expenses (c) ................ .95%(e) .72% .75% .80% .82% 1.00%
Net investment income ....... 5.13%(e) 5.29% 4.97% 5.59% 6.15% 6.38%
Portfolio turnover rate (excluding
short-term securities) .............. 49.04% 69.32% 58.61% 69.72% 92.42% 69.64%
</TABLE>
See accompanying notes to Financial Highlights.
<TABLE>
<CAPTION>
CLASS B CLASS C
PERIOD FROM SIX MONTHS PERIOD FROM
MARCH 22, 1995(d) ENDED MAY 6, 1994(d)
TO JUNE 30, 1995 JUNE 30, 1995 TO DECEMBER 31,
(UNAUDITED) (UNAUDITED) 1994
<S> <C> <C> <C>
Net asset value:
Beginning of period ................. $ 10.22 $ 9.53 $ 10.21
Operations:
Net investment income ............... .15 .22 .29
Net realized and unrealized
gain (loss) on investments ........ .19 .90 (.67)
Total from operations ........... .34 1.12 (.38)
Distributions to shareholders:
From net investment income (a) ...... (.15) (.24) (.27)(a)
From net realized gains ............. -- -- (.03)
Total distributions ............... (.15) (.24) (.30)
Net asset value:
End of period ....................... $ 10.41 $ 10.41 $ 9.53
Total investment return (b) ............ 2.70% 11.67% (3.75)%
Net assets at end of
period (000's omitted) .............. $ 404 $ 816 $ 465
Ratios:
Ratio of expenses to
average daily net assets .......... 1.43%(e) 1.70%(e) 1.80%(e)
Ratio of net investment income
to average daily net assets ....... 4.02%(e) 4.26%(e) 4.23%(e)
Assuming no voluntary waivers and
reimbursements and reductions:
Expenses (c) ................ 1.62%(e) 1.71%(e) 1.81%(e)
Net investment income ....... 3.83%(e) 4.25%(e) 4.22%(e)
Portfolio turnover rate (excluding
short-term securities) .............. 49.04% 49.04% 69.32%
</TABLE>
See accompanying notes to Financial Highlights.
Notes to Financial Highlights
(a) For federal income tax purposes, all of the net investment income
distributions were derived from interest on securities exempt from
federal income tax. For Class A Shares for the years ended December 31,
1993, 1992, 1991 and 1990 $.01 per share of the distribution from net
investment income was subject to state income tax.
(b) Total investment return is based on the change in net asset value of a
share during the period and assumes reinvestment of distributions at net
asset value and does not reflect the impact of a sales charge.
(c) For the periods ended December 31, 1994 and June 30, 1995, Fund
Distributors voluntarily waived distribution fees. The annual contractual
expense limit for the Fund (excluding distribution fees, insurance
premiums on portfolio securities, taxes, interest and brokerage
commissions) is 1% of average daily net assets. The maximum distribution
fee is .25% of the Fund's average daily net assets for Class A Shares and
1.00% of the Fund's average daily net assets for Class B and Class C
Shares.
(d) Commencement of operations.
(e) Annualized.
<TABLE>
<CAPTION>
VOYAGEUR COLORADO TAX FREE FUND
INVESTMENTS IN SECURITIES (UNAUDITED) JUNE 30, 1995
PRINCIPAL
AMOUNT COUPON MARKET
($000) NAME OF ISSUER (b) RATE MATURITY VALUE (a)
(PERCENTAGE OF EACH INVESTMENT CATEGORY RELATES TO TOTAL NET ASSETS.)
COLORADO MUNICIPAL BONDS (99.4%):
ESCROWED WITH U.S. GOVERNMENT SECURITIES (3.2%):
<S> <C> <C> <C> <C>
$18,850 Arapahoe County Single Family Mortgage Zero Coupon..................... 6.14%(d) 09-01-10 $ 7,364,129
6,500 El Paso County Single Family Mortgage Zero Coupon...................... 5.90(d) 09-01-15 1,844,115
9,000 Mesa County Single Family Mortgage Zero Coupon......................... 5.98(d) 12-01-11 3,253,680
12,461,924
GENERAL OBLIGATION (24.6%):
3,865 Adams County School District #1 (MBIA Insured)......................... 5.20 12-01-12 3,622,008
3,000 Adams County School District #1 (MBIA Insured)......................... 5.25 06-01-17 2,775,660
8,010 Arapahoe County Water & Sanitation Series 1995A........................ 6.00 12-01-15 7,944,318
10,075 Arapahoe County Water & Sanitation Series 1995A........................ 6.15 12-01-19 10,094,747
1,000 Bayfield School District #10 JT-R (MBIA Insured)....................... 6.65 06-01-15 1,069,500
6,050 Denver City and County Schools (MBIA Insured).......................... 5.13 12-01-12 5,618,393
6,575 Eagles Nest Metropolitan District Limited Tax.......................... 6.50 11-15-17 6,482,884
4,500 El Paso County Harrison School District #2 Metropolitan District....... 5.70 12-01-14 4,395,015
3,420 El Paso County School District #20 (MBIA Insured)...................... 6.15 12-15-08 3,652,628
3,225 El Paso County School District #20 (CGIC Insured)...................... 5.55 12-15-14 3,130,508
4,200 Highlands Ranch Metropolitan District #4 (LOC - Swiss Bank Insured).... 6.00 12-01-15 4,241,832
14,075 Jefferson County School District #R-001 (AMBAC Insured)................ 6.00 12-15-12 14,253,330
2,435 Jefferson County School District #R-001 (AMBAC Insured)................ 6.25 12-15-12 2,516,913
4,250 Jefferson County Section 14 Metropolitan District...................... 6.20 12-01-13 4,289,143
1,000 Jefferson County Section 14 Metropolitan District...................... 6.20 06-01-14 1,008,710
5,150 La Plata County Durango School District #9 (FGIC Insured).............. 6.60 11-01-17 5,432,220
3,000 Larimer County School District #R1 (MBIA Insured)...................... 8.50 12-15-06 3,848,550
1,000 Larimer County School District #R1 (MBIA Insured)...................... 8.50 12-15-07 1,289,840
3,385 Larimer County School District #R1 (MBIA Insured)...................... 5.63 12-15-12 3,313,136
2,600 Larimer County School District #R1 (MBIA Insured)...................... 6.15 12-15-16 2,647,372
3,500 Poudre Valley Hospital District........................................ 5.38 11-15-09 3,399,235
1,400 San Miguel County School District #R-1 Series 1995 (MBIA Insured)...... 5.50(e) 12-01-12 1,358,742
96,384,684
UTILITIES (9.6%):
4,000 Centennial County Water & Sanitary District (LOC - Swiss Bank Insured). 6.00 12-01-15 4,039,840
4,500 Colorado Springs County Utility........................................ 6.13 11-15-20 4,540,365
1,000 Colorado Springs County Utility Series A............................... 6.00 11-15-18 1,005,220
1,965 Fort Collins Wastewater (FGIC Insured)................................. 5.38 12-01-08 1,947,315
1,850 Fort Collins Wastewater (FGIC Insured)................................. 5.38 12-01-09 1,814,480
1,735 Fort Collins Wastewater (FGIC Insured)................................. 5.38 12-01-10 1,682,777
2,245 Little Thompson Water District (MBIA Insured).......................... 5.63(e) 12-01-14 2,198,686
5,000 Northern Colorado Conservancy Subdistrict.............................. 5.00 12-01-17 4,455,700
12,250 Platte River Power Authority Series BB................................. 6.13 06-01-14 12,362,822
1,000 Thornton Sewer Revenue (MBIA Insured).................................. 5.88 05-15-15 1,004,000
1,500 Westminster Water & Sewer Utility Revenue (AMBAC Insured).............. 6.00 12-01-09 1,542,525
1,000 Westminster Water & Sewer Utility Revenue (AMBAC Insured).............. 6.25 12-01-14 1,029,640
37,623,370
TRANSPORTATION (6.2%):
11,600 Denver City & County Airport Revenue (MBIA Insured).................... 5.60 11-15-20 11,188,548
13,825 Denver City & County Airport Revenue (MBIA Insured).................... 5.70 11-15-25 13,303,383
24,491,931
INDUSTRIAL (7.3%):
7,215 Adams County Pollution Control (MBIA Insured).......................... 5.88 04-01-14 7,249,488
4,000 Grand Junction Industrial Development (Dayton Hudson).................. 5.25 05-01-03 3,944,280
18,250 Morgan County Pollution Control Revenue (MBIA Insured)................. 5.50 06-01-12 17,625,850
28,819,618
HEALTH CARE (20.7%):
2,555 Boulder County Hospital Revenue Longmont United Project................ 5.80 12-01-13 2,255,426
2,250 Boulder County Hospital Revenue Longmont United Project................ 5.88 12-01-20 1,934,618
3,135 Colorado Craig Hospital Project........................................ 5.38 12-01-13 2,920,566
3,970 Colorado Craig Hospital Project........................................ 5.50 12-01-21 3,667,446
3,625 Colorado Health Hospital Revenue Series 1994B (MBIA Insured)........... 5.88 10-01-23 3,587,662
3,200 Colorado Health Facilities Authority Revenue National Jewish
Center Series 1992................................................... 7.10 02-15-22 3,064,000
2,005 Colorado Health Sisters of Charity (AMBAC Insured)..................... 6.25 05-15-09 2,143,305
3,045 Colorado Health Sisters of Charity (AMBAC Insured)..................... 6.25 05-15-10 3,233,090
1,250 Colorado Health Sisters of Charity (AMBAC Insured)..................... 6.25 05-15-11 1,320,362
5,000 Colorado Rocky Mountain Adventist Healthcare........................... 6.63 02-01-13 4,867,350
7,500 Colorado Northern Colorado Medical Center (MBIA Insured)............... 5.95 05-15-12 7,521,525
8,975 Colorado Springs Memorial Hospital (MBIA Insured)...................... 6.00 12-15-15 9,025,440
12,895 Colorado Springs Memorial Hospital (MBIA Insured)...................... 6.00 12-15-24 12,876,689
7,250 Denver City and County Childrens Hospital (FGIC Insured)............... 6.00 10-01-15 7,298,792
2,750 Denver Sister of Charity Leavenworth Health (MBIA Insured)............. 5.00 12-01-23 2,383,700
5,500 Mesa County Sister of Charity Leavenworth Health (MBIA Insured)........ 5.00 12-01-23 4,767,400
1,000 Poudre Valley Hospital District Revenue (AMBAC Insured)................ 5.20 12-01-11 939,810
7,000 University of Colorado Hospital Authority (AMBAC Insured).............. 6.40 11-15-22 7,205,170
81,012,351
HOUSING (11.5%):
9,550 Aurora Single Family Mortgage Revenue Series 1993A..................... 7.30 05-01-10 10,039,438
1,625 Colorado Housing Finance Authority Multifamily Housing Mortgage Revenue 5.90 10-01-29 1,517,652
4,990 Colorado Housing Finance Authority Single Family Access Series 94C..... 8.00 12-01-24 5,588,800
1,240 Colorado Housing Finance Authority Single Family Housing............... 5.30 06-01-11 1,145,785
3,590 Colorado Housing Finance Authority Single Family Mortgage.............. 7.50 11-01-24 3,886,175
3,490 Colorado Housing Finance Authority 1994 Series D II Revenue............ 8.13 06-01-25 3,939,338
5,375 Colorado Single Family Housing Authority Access Series 1994C........... 7.90 12-01-24 6,006,562
9,325 Englewood Multifamily Marks Apartments Series B........................ 6.00 12-15-20 8,844,576
4,000 Pueblo County Single Family Mortgage Revenue Series 1994A(GNMA Insured) 7.05 11-01-27 4,188,240
45,156,566
EDUCATION (12.3%):
1,000 Auraria Higher Education Center (FSA Insured).......................... 5.30 04-01-12 939,670
4,420 Aurora Educational Facilities (Connie Lee Insured)..................... 6.00 10-15-15 4,432,951
2,000 Board of Trustees Adams St. College (MBIA Insured)..................... 5.75 05-15-19 1,969,220
1,000 Board of Trustees Mesa St. College (MBIA Insured)...................... 5.70 05-15-14 988,200
2,000 Board of Trustees Mesa St. College (MBIA Insured)...................... 5.75 05-15-19 1,969,220
1,000 Board of Trustees Western College (MBIA Insured)....................... 5.63 05-15-15 977,140
1,000 Boulder Valley School District #2 Revenue.............................. 6.25 12-01-12 1,038,610
3,000 Boulder Valley School District #2 Revenue.............................. 6.30 12-01-13 3,128,760
6,250 Boulder Valley School District #2 Revenue.............................. 6.30 12-01-14 6,505,000
6,700 Colorado Education Facility Authority University of Denver
(Connie Lee Insured)................................................. 6.00 03-01-16 6,714,941
2,400 Colorado Springs Colorado College Project.............................. 5.05 06-01-12 2,169,216
1,645 Colorado Springs Colorado College Project.............................. 5.13 06-01-16 1,470,235
1,035 Colorado State Board Community College (AMBAC Insured)................. 5.70 11-01-15 1,020,210
2,995 Colorado Student Obligation Authority Revenue.......................... 6.10 09-01-02 3,107,312
3,060 Douglas County School District Series 94A (MBIA Insured)............... 6.50 12-15-16 3,262,725
1,000 Eagle County School District #RE50J ( FGIC Insured).................... 6.30 12-01-12 1,038,510
6,200 El Paso County School District #20 (MBIA Insured)...................... 5.55 12-15-11 6,056,160
1,500 Montezuma County Dolores School District #RE4 Series 1994.............. 7.00 12-01-19 1,598,280
48,386,360
OTHER REVENUE (4.0%):
1,880 Auraria Higher Education Center Student Fee Revenue (AMBAC Insured).... 6.50 05-01-12 1,975,579
1,685 Pueblo Urban Renewal Authority Revenue (AMBAC Insured)................. 6.15 12-01-19 1,711,556
6,500 Regional Transportation District (FGIC Insured)........................ 6.25 11-01-12 6,716,125
5,000 Westminster Sales Tax Revenue (FGIC Insured)........................... 6.25 12-01-12 5,138,950
15,542,210
TOTAL MUNICIPAL BONDS (cost: $392,515,377) $389,879,014
SHORT-TERM SECURITIES (1.0%):
$3,909 Dreyfus Investment Tax-Exempt Money Market Fund (cost: $3,909,200)..... 3.86% (f) $ 3,909,200
TOTAL INVESTMENT IN SECURITIES (cost: $396,424,577)(c) $393,788,214
</TABLE>
See accompanying notes to investments in securities.
NOTES TO INVESTMENTS IN SECURITIES
(a) Securities are valued by procedures described in note 1 to the financial
statements.
(b) Investments in bonds, by rating category as a percentage of total bonds,
are as follows:
Aaa/AAA Aa/AA A/A Baa/BBB Total
65% 16% 14% 5% 100%
(c) The cost of securities for federal income tax purposes is $396,609,981.
The aggregate gross unrealized appreciation and depreciation in securities
based on this cost are as follows:
Gross Gross Net
Unrealized Unrealized Unrealized
Appreciation Depreciation Depreciation
4,106,837 (6,928,604) (2,821,767)
(d) The interest rate disclosed for zero coupon issues represents the effective
yield on the date of acquisition.
(e) At June 30, 1995, the cost of securities purchased on a when issued basis
was $3,568,444.
(f) Dividend yields change daily to reflect current market conditions. Rate
shown is the quoted yield as of June 30, 1995.
INVESTMENT ADVISER, TRANSFER AGENT,
DIVIDEND DISBURSING AGENT AND
ACCOUNTING SERVICES AGENT
Voyageur Fund Managers, Inc.
90 South Seventh Street, Suite 4400
Minneapolis, Minnesota 55402
UNDERWRITER
Voyageur Fund Distributors, Inc.
90 South Seventh Street, Suite 4400
Minneapolis, Minnesota 55402
CUSTODIAN
Norwest Bank Minnesota, N.A.
Sixth Street & Marquette Avenue
Minneapolis, Minnesota 55479
GENERAL COUNSEL
Dorsey & Whitney P.L.L.P.
Minneapolis, Minnesota 55402
AUDITORS
KPMG Peat Marwick LLP
Minneapolis, Minnesota 55402
VOYAGEUR
COLORADO TAX FREE FUND
SEMI-ANNUAL REPORT
Dated June 30, 1995
INVESTMENT ADVISER, TRANSFER AGENT,
DIVIDEND DISBURSING AGENT AND
ACCOUNTING SERVICES AGENT
Voyageur Fund Managers, Inc.
90 South Seventh Street, Suite 4400
Minneapolis, Minnesota 55402
UNDERWRITER
Voyageur Fund Distributors, Inc.
90 South Seventh Street, Suite 4400
Minneapolis, Minnesota 55402
CUSTODIAN
Norwest Bank Minnesota, N.A.
Sixth Street & Marquette Avenue
Minneapolis, Minnesota 55479
GENERAL COUNSEL
Dorsey & Whitney P.L.L.P.
Minneapolis, Minnesota 55402
AUDITORS
KPMG Peat Marwick LLP
Minneapolis, Minnesota 55402
BULK RATE
U.S. Postage
PAID
Minneapolis, MN.
Permit #3322
VOYAGEUR
90 SOUTH SEVENTH STREET, SUITE 4400
MINNEAPOLIS, MINNESOTA 55402.4115
