OREGON INSURED 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 $8.92 $9.56 $0.26 $18,317
Class B Shares 8.92 9.56 0.24 2,303
</TABLE>
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 Oregon Insured Tax Free Fund
FACTORS AFFECTING FUND PERFORMANCE
During the reporting period, municipal bond funds rebounded strongly and largely
reversed the negative total return performance from 1994. Yields fell a striking
90 basis points (.90%) and long term treasury bond yields fell 125 basis points
(1.25%). Responding to strong economic growth and continued inflation fears, the
Federal Reserve Board raised short term interest rates in February an additional
50 basis points to 6.00%. The market viewed this rate increase as, most likely,
the final increase in the Fed's one-year campaign of tighter monetary policy.
Since February 1995, the market witnessed a dramatic shift in sentiment as the
economy revealed signs of a slow down with no evidence of inflation. As yields
fell, bond prices increased and investment returns on all fixed income classes
were sharply positive.
Several notable events in the reporting period affected the bond market's
performance:
* The Federal Reserve Board continued its restrictive policy and raised short
term interest rates 50 basis points in February. This seemed to prove
successful in slowing domestic growth and curbing the threat of inflation.
As indications of a slowing economy became more evident, market
participants became more comfortable with the fact that the Fed's strategy
had succeeded and that the economy could sustain slow growth and low
inflation. The reversal of sentiment in 1995 resulted in a substantial bond
market rally.
* The reduction of municipal bond issuance in 1995 coupled with strong demand
bolstered municipal bond prices. Bond issuance in the first half of this
year was down 50% from 1994 levels and, in addition, a record $80 billion
in bonds was to be called away from investors in June and July. This
shortage of supply should continue to have a positive technical impact on
municipal bond performance throughout the rest of 1995.
* The issue of radical tax reform, specifically proposals such as a flat tax
or national sales tax, dominated the municipal bond marketplace in the
second quarter of 1995. While municipal bond prices increased, this price
appreciation compared to treasuries did not occur as rapidly in the second
quarter. This price differential (called a risk premium) between treasury
yields and municipal yields resulted from the discussions surrounding tax
reform. We view the current price discrepancies between municipal bonds and
treasuries as an opportunity to purchase quality bonds at a discount to
taxable bond equivalents.
* Radical tax reform proposals caused many investors to fear that the tax
advantage of municipal bonds may erode. While there are numerous proposals
and relative degrees of reform, it is the radical reform proposals that
suggest a drastic restructuring of the current federal tax code and that
have been the subject of much media attention. All of the discussions and
proposals are in preliminary stages. At Voyageur, we believe the likelihood
of radical reform is remote. Clearly some reform is possible, although we
believe that we are at least two to three years away from potential
enactment. We continue to monitor the issue of tax reform and believe that
this discussion will continue to prevail in the months ahead.
* In general, the municipal market recovered from the temporary setback of
prices surrounding the Orange County, California derivative debacle last
year. However, California state-specific bonds continue to lag the overall
market, and volatility remains high due to the county's credit problems.
OUTLOOK
Our outlook for the municipal bond market is optimistic both in the near term
and for the balance of the decade. We anticipate a steeper yield curve (lower
short term rates) for the rest of the year and well into 1996. We believe the
economic fundamentals will affirm our view that inflation is under control and
that the Fed has been successful in slowing the domestic economy. Economic
growth should slow to 3.0% to 3.5% for the year, inflation should remain in
check in the 3.0 to 3.5% range, and unemployment will be in the 5.0% to 5.4%
range.
The "technical"condition of the municipal bond market, or the supply and demand
equation, continues to be very favorable. Currently we are experiencing the
lowest municipal bond supply in five years, while the demand continues to
strengthen prices. In addition, during the summer, volumes of bonds will be
called out of the marketplace. On a net basis, the fewer number of bonds in the
marketplace bodes favorably for the bond prices throughout the balance of the
year.
We expect the bond market to witness lower volatility during the second half of
the year. Throughout 1994 and during the first half of 1995, bond investors
experienced unusually high volatility in both bull and bear market cycles. We
look for bond yields to remain in a narrow trading range and believe lower
interest rates will prevail for the coming year.
Given our expectations for the rest of the year, we will continue to make minor
adjustments to the duration of our portfolios as needed. By maintaining our
longer-than-average duration last year, we were able to capture superior returns
in the bond market rally for the first and second quarters. We continue to
monitor the tax reform discussion and look for opportunities to purchase quality
bonds trading at a discount in the market. We seek bonds with good call
protection, specifically ten-year call protection, to avoid the risk of having
bonds called away in a declining yield environment. We believe that high quality
bonds with call protection will perform the best in the economic environment of
lower rates.
The dramatic change in sentiment from bearish to bullish demonstrated how the
market climate has changed. At Voyageur, we remain committed to the long term
approach to investing. We believe those investors who take a conservative
approach with asset allocation will, over the course of time, be rewarded for
their patience with above average returns.
DISCUSSION OF FUND MANAGEMENT BY ELIZABETH H. HOWELL, PORTFOLIO MANAGER
Ms. Howell is Senior Vice President and Tax Exempt Portfolio Manager for the
Voyageur Oregon Insured Tax Free Fund. She has over ten years experience as a
securities analyst and portfolio manager.
At the state level, the supply of new issue Oregon bonds was light compared to
the 1994 levels. The shortage of bonds helped to support the strong price
performance in the Oregon market.
The Voyageur Oregon Insured Tax Free Fund performed favorably during the
reporting period with a total return of 10.05%. Moreover, the Fund ranked fourth
among its 15 fund competitors in its Lipper objective of Oregon 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 8.04% for one year and 2.95% since inception.)
We attribute this strong performance to a combination of factors. First, the
long average maturity (19.1 years) and long duration (9.15 years) of the Fund
captured strong investment returns in a declining interest rate market. Bonds
with long maturities and long durations are more price sensitive to changes in
long term rates, and correspondingly, rallied the strongest in the first half of
1995 as interest rates declined. Second, the Fund held high quality insured
bonds with excellent call protection. We buy strong call protection because it
enables investors to lock in favorable yields for a longer period of time. We
are constantly swapping bonds within the market to maintain adequate call
protection within the portfolio. Maintaining adequate call protection is a key
component of our investment strategy.
We continue to believe that these high quality insured bonds have positioned
the Voyageur Oregon Insured Fund to take full advantage of the favorable market
conditions of lower interest rates and low inflation in 1995.
<TABLE>
<CAPTION>
VOYAGEUR OREGON INSURED TAX FREE FUND
STATEMENT OF ASSETS AND LIABILITIES (UNAUDITED) JUNE 30, 1995
<S> <C>
ASSETS
Investments in securities, at market value (note 1)
(identified cost: $20,084,884)............................. $20,195,843
Cash in bank on demand deposit................................ 8
Accrued interest receivable................................... 342,911
Receivable for Fund shares sold............................... 115,912
Receivable for investment securities sold..................... 692,520
Total assets............................................... 21,347,194
LIABILITIES
Dividends payable to shareholders............................. 22,723
Payable for investment securities purchased................... 663,016
Payable for Fund shares redeemed.............................. 42
Other accrued expenses........................................ 41,258
Total liabilities.......................................... 727,039
NET ASSETS APPLICABLE TO OUTSTANDING SHARES................... $20,620,155
Represented by:
Paid-in capital (note 1)................................... $20,934,404
Distributions in excess of net investment income........... (17,790)
Accumulated net realized loss on investments (note 1)...... (407,418)
Unrealized appreciation of investments..................... 110,959
TOTAL NET ASSETS......................................... $20,620,155
Net assets applicable to outstanding Class A Shares........... $18,317,031
Net assets applicable to outstanding Class B Shares........... $ 2,303,124
SHARES OUTSTANDING AND NET ASSET VALUE PER SHARE
Class A - Shares of beneficial interest outstanding:
1,915,399 (note 4)....................................... $9.56
Class B - Shares of beneficial interest outstanding:
240,806 (note 4)......................................... $9.56
</TABLE>
See accompanying notes to financial statements.
<TABLE>
<CAPTION>
VOYAGEUR OREGON INSURED TAX FREE FUND
STATEMENT OF OPERATIONS (UNAUDITED) SIX MONTHS ENDED JUNE 30, 1995
<S> <C>
Investment income:
Interest. .............................................................. $ 540,662
Expenses (note 3):
Investment advisory and management fee.................................. 46,493
Dividend-disbursing, administrative and accounting services fees........ 23,744
Printing, postage and supplies.......................................... 4,677
Audit and accounting fees............................................... 5,910
Legal fees.............................................................. 967
Distribution fees - Class A............................................. 21,100
Distribution fees - Class B............................................. 8,714
Directors' fees......................................................... 943
Registration fees....................................................... 1,025
Custodian fees.......................................................... 3,905
Other ................................................................ 1,706
Total expenses........................................................ 119,184
Less: Expenses waived, absorbed or reduced............................. (57,514)
Total net expenses.................................................... 61,670
Investment income - net............................................... 478,992
Realized and unrealized gain (loss) on investments:
Realized loss on security transactions (note 2)......................... (166,514)
Net change in unrealized appreciation or depreciation of investments.... 1,417,022
Net gain on investments............................................... 1,250,508
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS....................... $1,729,500
</TABLE>
See accompanying notes to financial statements.
<TABLE>
<CAPTION>
VOYAGEUR OREGON INSURED TAX FREE FUND
STATEMENTS OF CHANGES IN NET ASSETS (UNAUDITED) JUNE 30, 1995
SIX MONTHS TWO MONTHS
ENDED ENDED
JUNE 30, 1995 DECEMBER 31,
(UNAUDITED) 1994 (NOTE 1)
<S> <C> <C>
Operations:
Investment income - net ............................................ $ 478,992 $ 147,638
Realized loss on investments - net ................................. (166,514) --
Net change in unrealized appreciation or depreciation of investments 1,417,022 (142,380)
Net increase in net assets resulting from operations ............... 1,729,500 5,258
Distributions to shareholders from:
Investment income - net:
Class A .......................................................... (450,686) (127,333)
Class B .......................................................... (41,317) (9,803)
Distribution in excess of net investment income:
Class A .......................................................... (16,456) --
Class B .......................................................... (1,334) --
Total distributions ............................................ (509,793) (137,136)
Capital share transactions (note 4):
Proceeds from sale of shares:
Class A (note 3) ................................................. 4,628,476 1,520,487
Class B .......................................................... 912,923 211,612
Net asset value of shares issued in reinvestment of
net investment income distributions and distributions
in excess of net investment income:
Class A ...................................................... 273,903 33,387
Class B ...................................................... 22,207 2,197
Payments for redemption of shares:
Class A .......................................................... (2,355,395) (864,598)
Class B (note 3) ................................................. (34,446) (49,480)
Increase in net assets from share transactions ..................... 3,447,668 853,605
Total increase in net assets ..................................... 4,667,375 721,727
Net assets at beginning of period ..................................... 15,952,780 15,231,053
Net assets at end of period (including distributions in excess of
net investment income of $17,790 and undistributed
net investment income of $13,011, respectively.) ................. $ 20,620,155 $ 15,952,780
</TABLE>
See accompanying notes to financial statements
VOYAGEUR OREGON INSURED TAX FREE FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
(1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Voyageur Oregon Insured Tax Free Fund (the Fund) is one of a series of
eight funds within the Voyageur Investment Trust, a Massachusetts business trust
registered under the Investment Company Act of 1940 (as amended) as an open-end
management investment company with an unlimited number of authorized shares of
beneficial interest. 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 may be subject
to a contingent deferred sales charge and such shares automatically convert to
Class A after eight years. Class C Shares, which the Fund began offering March
1, 1995, are not subject to a front-end sales charge or a contingent deferred
sales charge and have no conversion feature. As of June 30, 1995 there were no
Class C Shares outstanding. 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. The Fund is registered as a
non-diversified Fund. Effective December 31, 1994, the Fund changed its fiscal
year from October 31 to December 31.
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 Oregon
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
substantially all of its income to shareholders in amounts that will avoid or
minimize federal income or excise taxes for the Fund. For federal income tax
purposes, at December 31, 1994 the Fund had a capital loss carryover of $240,904
that will expire in 2001 if not offset by subsequent capital gains. It is
unlikely the Board of Trustees will authorize a distribution of any net realized
capital gains until the available capital loss carryovers have been offset or
expire.
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) INVESTMENT SECURITIES TRANSACTIONS
Purchase cost and proceeds of sales of investment securities other than
short-term securities aggregated $6,187,859 and $2,766,887 for the Fund during
the six-month period ended June 30, 1995, respectively.
(3) EXPENSES
The Fund has an investment advisory and management fee 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 payable 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. There was no portfolio insurance expense for the Fund.
Portfolio insurance expense, if any, is recognized over the premium period.
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.
During the six-month period ended June 30, 1995, excluding waivers of
distribution fees and expense reductions, Voyageur voluntarily absorbed fees and
expenses of $30,000.
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.
All classes of shares have a Distribution Agreement under Rule 12b-1 of the
Investment Company Act of 1940 with Voyageur Fund Distributors, Inc. (Fund
Distributors). Under this plan the Fund is obligated to pay Fund Distributors a
monthly distribution fee at an annual rate of .25% of the Fund's average daily
net assets of the Class A Shares and 1.00% of the Fund's average daily net
assets of the Class B and Class C Shares. Fund Distributors may waive all or
part of its distribution fee at its sole discretion. During the six-month period
ended June 30, 1995 Fund Distributors voluntarily waived Class A distribution
fees of $19,672 and Class B distribution fees of $3,937. The Fund earned $15,799
in credits on uninvested cash balances held at the custodian. Of these credits
$3,905 were used to reduce certain fees for various custodial, pricing and
accounting services provided by the custodian bank and $11,894 are included in
interest income.
Sales charges paid by Class A shareholders for the six-month period ended
June 30, 1995 were $176,412. Of these amounts, Fund Distributors received
$22,267. Contingent deferred sales charges paid by Class B shareholders for the
six-month period ended June 30, 1995 were $1,333.
(4) SHARE TRANSACTIONS
Transactions in shares of beneficial interest during each period were as
follows:
<TABLE>
<CAPTION>
CLASS A CLASS B
SIX MONTHS TWO MONTHS SIX MONTHS TWO MONTHS
ENDED ENDED ENDED ENDED
JUNE 30, 1995 DECEMBER 31, JUNE 30, 1995 DECEMBER 31,
(UNAUDITED) 1994 (UNAUDITED) 1994
<S> <C> <C> <C> <C>
Shares sold......................... 488,651 173,044 96,030 24,167
Shares issued for reinvested
distributions.................... 29,070 3,842 2,349 253
Shares redeemed..................... (245,314) (98,584) (3,660) (5,595)
Increase in shares outstanding...... 272,407 78,302 94,719 18,825
</TABLE>
(5) FINANCIAL HIGHLIGHTS
Per share data (rounded to the nearest cent) for a share of beneficial
interest outstanding and selected information for each period are as follows:
<TABLE>
<CAPTION>
CLASS A CLASS B
PERIOD FROM ERIOD FROM
SIX MONTHS TWO MONTHS YEAR AUGUST 1, SIX MONTHS TWO MONTHS MARCH 1,
ENDED ENDED ENDED 1993(d) TO ENDED ENDED 1994(d) TO
JUNE 30, 1995 DECEMBER 31, OCTOBER 31, OCTOBER 31, JUNE 30, 1995 DECEMBER 31, OCTOBER 31,
(UNAUDITED) 1994 1994 1993 (UNAUDITED) 1994 1994
<S> <C> <C> <C> <C> <C> <C> <C>
Net assets value:
Beginning of period ............ $ 8.92 $ 9.00 $ 10.24 $ 10.00 $ 8.92 $ 9.00 $ 10.00
Operations:
Net investment income .......... .24 .09 .50 .13 .22 .08 .27
Net realized and unrealized
gain (loss) on investments ... .66 (.09) (1.24) .24 .66 (.09) (1.00)
Total from operations ........ .90 .00 (.74) .37 .88 (.01) (.73)
Distributions to shareholders:
From net investment income ..... (.25) (.08)(a) (.50)(a) (.13)(a) (.23) (.07)(a) (.27)(a)
From distributions in excess of
net investment income ........ (.01) -- -- -- (.01) -- --
Total distributions ............ (.26) (.08) (.50) (.13) (.24) (.07) (.27)
Net asset value:
End of period .................. $ 9.56 $ 8.92 $ 9.00 $ 10.24 $ 9.56 $ 8.92 $ 9.00
Total investment return (b) ....... 10.05% .06% (7.35)% 3.64% 9.76% .03% (7.21)%
Net assets at end of period
(000's omitted) ................ $18,317 $14,650 $14,086 $4,609 $2,303 $1,303 $1,146
Ratios:
Ratio of expenses to
average daily net assets ..... .61%(e) .05%(e) .03% --% 1.14%(e) .60%(e) .75%(e)
Ratio of net investment income
to average daily net assets .. 5.20%(e) 5.79%(e) 5.17% 4.61%(e) 4.62%(e) 5.19%(e) 4.43%(e)
Assuming no voluntary
waivers and reimbursements
and reductions:
Expenses (c) ........... 1.21%(e) 1.25%(e) 1.25% 1.25%(e) 1.95%(e) 2.00%(e) 2.00%(e)
Net investment income .. 4.60%(e) 4.59%(e) 3.95% 3.36%(e) 3.81%(e) 3.79%(e) 3.18%(e)
Portfolio turnover rate (excluding
short-term securities) ......... 15.22% --% 48.98% 11.08% 15.22% --% 48.98%
</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 year ended October 31, 1994, $.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) Voyageur and Fund Distributors voluntarily waived or reimbursed expenses
during the periods presented. 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) Adjusted to an annual basis.
<TABLE>
<CAPTION>
VOYAGEUR OREGON INSURED 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.)
OREGON MUNICIPAL BONDS (97.0%):
GENERAL OBLIGATION (44.9%):
<S> <C> <C> <C>
$250 Brookings (MBIA Insured)............................................... 5.38% 12-01-14 239,588
500 Clackamas County School District #12 (FGIC Insured).................... 5.00 06-01-11 465,470
215 Clackamas Molalla River School District #35 (AMBAC Insured)............ 5.20 06-01-13 202,425
250 Deschutes County Bend/LaPine School District (FGIC Insured)............ 5.20 12-01-13 235,145
500 Hermiston Water Revenue (AMBAC Insured)................................ 6.20 08-01-24 510,430
500 Jackson County School District #549C (FSA Insured)..................... 5.38 06-01-12 479,870
500 Lake Oswego (FGIC Insured)............................................. 5.13 02-01-14 461,970
500 Lane County School District #4 (MBIA Insured).......................... 5.38 07-01-13 480,935
500 Lane County School District #19 (MBIA Insured)......................... 6.30 10-15-14 519,795
700 Lincoln County School District (FGIC Insured).......................... 5.25(e) 06-15-12 665,903
500 Malheur County Jail (MBIA Insured)..................................... 6.30 12-01-12 520,795
500 Marion-Polk County School District #24J (FGIC Insured)................. 5.00 10-01-12 460,620
500 Multnomah County (FGIC Insured)........................................ 5.25 10-01-13 473,505
500 Multnomah County School District (FGIC Insured)........................ 5.63 06-01-12 495,935
500 Multnomah County School District #3 Park Rose (FGIC Insured)........... 5.50 12-01-11 492,020
500 Multnomah County School District #39 Corbett (MBIA Insured)............ 6.00 12-01-13 508,295
500 Portland (MBIA Insured)................................................ 5.75 06-01-15 499,970
250 Tillamook County (FGIC Insured)........................................ 6.25 01-01-14 258,425
500 Umatilla Pendleton School District #016R (AMBAC Insured)............... 6.00 07-01-14 508,810
300 Washington County Sherwood School District #88J (FSA Insured).......... 6.10 06-01-12 309,000
500 Washington-Multnomah Beaverton School District #48J (FGIC Insured)..... 5.00 09-01-12 460,740
9,249,646
UTILITIES (28.3%):
250 Albany Water Revenue (FSA Insured)..................................... 5.00 08-01-12 229,160
500 Beaverton Water Revenue (FSA Insured).................................. 6.13 06-01-14 511,220
500 Central Lincoln Peoples Utility District (AMBAC Insured)............... 5.75 01-01-15 499,995
1,250 Eugene Electric Revenue Series C (MBIA Insured)........................ 5.80 08-01-22 1,246,550
500 Klamath Falls Water Revenue (FSA Insured).............................. 6.10 06-01-14 510,220
1,250 McMinville Sewer System Revenue (FGIC Insured)......................... 5.00 02-01-14 1,142,075
100 Portland Sewer System Revenue (FGIC Insured)........................... 5.15 03-01-08 97,214
1,000 Portland Sewer System Revenue (FSA Insured)............................ 6.25 06-01-15 1,032,490
500 Salem Water & Sewer Revenue (AMBAC Insured)............................ 5.00 11-01-13 458,145
100 Washington County Sewer Revenue (AMBAC Insured)........................ 6.13 10-01-12 102,575
5,829,644
HEALTH CARE (8.7%):
750 Portland Legacy Health System (AMBAC Insured).......................... 6.70 05-01-21 791,100
1,000 Western Lane Hospital District (MBIA Insured).......................... 5.88 08-01-12 1,009,840
1,800,940
EDUCATION (11.2%):
750 Central Oregon Community College (FGIC Insured)........................ 5.90 06-01-09 768,360
1,055 Oregon HME Lewis & Clark College (MBIA Insured)........................ 6.13 10-01-24 1,074,876
500 Portland Community College District (MBIA Insured)..................... 5.25 01-15-14 472,380
2,315,616
LEASE (3.9%):
700 Washington County Education Service (MBIA Insured)..................... 7.10 06-01-25 810,697
TOTAL MUNICIPAL BONDS (cost: $19,895,584) $20,006,543
SHORT-TERM SECURITIES (0.9%):
189 Nuveen Investment Tax Free Fund (cost: $189,300)....................... 3.81(d) 189,300
TOTAL INVESTMENTS IN SECURITIES (cost: $20,084,884)(c) $20,195,843
</TABLE>
NOTES TO INVESTMENTS IN SECURITIES
(a) Securities are valued by procedures described in note 1 to the financial
statements.
(b) All investments in bonds are rated 100% Aaa/AAA.
(c) Also represents the cost of securities for federal income tax purposes and
the aggregate gross unrealized appreciation and depreciation of securities
based on this cost were as follows:
Gross Gross Net
Unrealized Unrealized Unrealized
Appreciation Depreciation Appreciation
475,591 (364,632) 110,959
(d) Dividend yields change daily to reflect current market conditions. Rate
shown is the quoted yield as of June 30, 1995.
(e) As of June 30, 1995 the cost of securities purchased on a when-issued basis
fund was $662,403.
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
OREGON INSURED 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
