FLORIDA TAX FREE FUND
FLORIDA INSURED TAX FREE FUND
FLORIDA LIMITED TERM TAX FREE FUND
ANNUAL REPORT
Dated December 31, 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 MINNESOTA Tax Free Fund
Voyageur CALIFORNIA Tax Free Fund Voyageur NATIONAL 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 KANSAS 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.
Voyageur ARIZONA Insured Voyageur MISSOURI Insured
Tax Free Fund Tax Free Fund
Voyageur CALIFORNIA Insured Voyageur NATIONAL Insured
Tax Free Fund Tax Free Fund
Voyageur FLORIDA Voyageur OREGON
Tax Free Fund Tax Free Fund
Voyageur MINNESOTA Insured Fund Voyageur WASHINGTON
Tax Free Fund
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.
Voyageur FLORIDA Limited Term Tax Free Fund Voyageur NATIONAL Limited
Voyageur MINNESOTA Limited Term Tax Free Fund Term Tax Free Fund
VOYAGEUR EQUITY FUNDS seek long term capital appreciation by investing in common
stocks.
Voyageur AGGRESSIVE GROWTH Fund Voyageur GROWTH Stock Fund
Voyageur GROWTH AND INCOME Fund Voyageur INTERNATIONAL Equity 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:
1995 was an excellent year for municipal bond fund investors and I am pleased to
report that your Funds did extremely well.
As you may recall, the previous year, 1994, represented one of the most
difficult years for fixed income investors since the 1920s. Voyageur's
investment strategy, however, emphasizes total return over the long term.
Shareholders who maintained a long term outlook through 1994 are to be
congratulated for their patience. This patience was rewarded in 1995.
Two of the major factors contributing to the resurgence of the municipal bond
market this past year were:
* Progressively lower interest rates throughout the year. (Falling interest
rates directly increases the value of your Fund's portfolio, and hence your
shares.)
* A narrowing "spread" between yields on higher quality bonds versus lower
quality bonds. (Your Funds benefited from maintaining a large position in
quality bonds.)
In the following pages, Steve Eldredge, the Funds' portfolio manager, will
elaborate on these and other points of interest regarding the municipal bond
market in 1995 and will also share Voyageur's economic outlook for the next
fiscal year.
Finally, I'd like to apprise you of the amount of capital appreciation and
current income generated by the Funds on your behalf in 1995.
<TABLE>
<CAPTION>
VOYAGEUR FLORIDA TAX FREE FUND
TOTAL NET
NET ASSET NET ASSET ASSETS
VALUE VALUE DIVIDENDS END OF
BEGINNING END PAID PER PERIOD
OF PERIOD OF PERIOD SHARE (000'S)
--------- --------- ----- -------
PERIOD
- ------
Period ended December 31, 1995:
<S> <C> <C> <C> <C>
Class A Shares $10.00* $10.73 $0.49 $4,421
Class B Shares 10.37** 10.73 0.17 101
Class C Shares 10.20*** 10.73 0.36 9
___________________________________
*Net asset value at March 2, 1995 (commencement of operations)
**Net asset value at September 15, 1995 (commencement of operations)
***Net asset value at April 22, 1995 (commencement of operations)
</TABLE>
<TABLE>
<CAPTION>
VOYAGEUR FLORIDA INSURED TAX FREE FUND
TOTAL NET
NET ASSET NET ASSET ASSETS
VALUE VALUE DIVIDENDS END OF
BEGINNING END PAID PER PERIOD
OF PERIOD OF PERIOD SHARE (000'S)
--------- --------- ----- -------
PERIOD
- ------
Period ended December 31, 1995:
<S> <C> <C> <C> <C>
Class A Shares $9.52 $10.94 $0.56 $242,425
Class B Shares 9.52 10.94 0.52 2,814
</TABLE>
<TABLE>
<CAPTION>
VOYAGEUR FLORIDA LIMITED TERM TAX FREE FUND
TOTAL NET
NET ASSET NET ASSET ASSETS
VALUE VALUE DIVIDENDS END OF
BEGINNING END PAID PER PERIOD
OF PERIOD OF PERIOD SHARE (000'S)
--------- --------- ----- -------
PERIOD
- ------
Period ended December 31, 1995:
<S> <C> <C> <C> <C>
Class A Shares $9.64 $10.56 $0.53 $859
Class B Shares 10.58* 10.56 0.15 41
Class C Shares 10.08** 10.55 0.33 54
___________________________________
*Net asset value at September 15, 1995 (commencement of operations)
**Net asset value at March 23, 1995 (commencement of operations)
</TABLE>
I will be reporting to you again in August, 1996 to review the first half of the
coming year. In the interim, if you have any questions or comments about your
Funds, please call Voyageur's Shareholder Services Department at (800)545- 3863
or your financial advisor.
Thank you for investing with Voyageur.
Sincerely,
John G. Taft
President
Voyageur Florida Tax Free Fund
Voyageur Florida Insured Tax Free Fund
Voyageur Florida Limited Term Tax Free Fund
FUND INVESTMENT OBJECTIVES AND STRATEGIES
The primary objective of the Voyageur Florida Tax Free Fund is to seek as high a
level of current income free from federal income tax as is consistent with the
preservation of capital. Voyageur Florida Insured Tax Free Fund seeks as high a
level of current income free from federal income tax as is consistent with
preservation of capital, with the added safety of an insured portfolio. Voyageur
Florida Limited Term Tax Free Fund seeks to preserve original investment
principal while providing income free from federal income tax.
The Florida Tax Free Fund generally invests in long-term investment grade
municipal bonds; the Florida Insured Tax Free Fund generally invests in
long-term, insured municipal bonds; the Florida Limited Term Tax Free Fund
generally invests in intermediate-term, high quality municipal bonds. The Funds
are exempt from federal income tax and the Florida state intangibles tax. We
believe that insured municipal bonds for the Florida Insured Tax Free Fund and
investment grade municipal bonds for the Florida Tax Free Fund and the Florida
Limited Term Tax Free Fund offer the best value in today's interest rate
environment. The Voyageur Florida Insured Tax Free Fund adopted a modification
of an investment policy which will permit this Fund to retain insured municipal
bonds in its portfolio the rating of which is not lower than AA by Standard &
Poor's Ratings Service or Aa by Moody's Investor Service so long as such AA or
Aa insured municipal bonds do not exceed 35% of the Fund's total assets. Such
bonds must still have a AAA or Aaa rating at the time of initial investment by
the Fund.
DISCUSSION OF FUNDS PERFORMANCE
by Steven P. Eldredge
MR. ELDREDGE IS A SENIOR VICE PRESIDENT AND TAX EXEMPT PORTFOLIO MANAGER FOR
VOYAGEUR FUND MANAGERS AND MANAGES THE VOYAGEUR FLORIDA TAX FREE FUNDS. HE HAS
SPECIALIZED IN THE FLORIDA MUNICIPAL BOND MARKET SINCE 1978.
We are pleased to report the 1995 performance results of the Voyageur Florida
Tax Free Funds for the fiscal year ending December 31, 1995. Of the Voyageur
Florida Tax Free Fund, Voyageur Florida Insured Tax Free Fund and Voyageur
Florida Limited Term Tax Free Fund, only the Class 'A' and 'B' shares of the
Florida Insured Tax Free Fund and the Class 'A' shares of the Florida Limited
Term Tax Free Fund have been in operation for the entire fiscal year. The
Voyageur Florida Insured Tax Free Fund achieved a total return of +21.2% in 1995
for Class 'A' shares (assuming purchase at net asset value and reinvestment of
dividends and capital gains). Class 'B' shares achieved a +20.8% total return.
The Voyageur Florida Limited Term Tax Free Fund achieved a total return of
+15.1% in 1995 for Class 'A' shares (assuming purchase at net asset value and
reinvestment of dividends and capital gains). For information pertaining to
total returns, relative performance, and inception dates for the other Funds
and/or share classes, as well as information about the Funds' performance over
additional timeframes and including the effect of sales charges, please refer to
the charts on pages 8, 9 and 10.
FACTORS AFFECTING FUND PERFORMANCE IN 1995
As discussed in John Taft's introduction, a general downward trend in prevailing
interest rates had a positive impact on the net asset value of Funds shares in
1995. The Voyageur Florida Insured Fund's relative performance for the fiscal
year was very good, beating the industry average by over 3%. According to Lipper
Analytical Services, the Fund (Class 'A' shares) was ranked #5 of 73 Florida
municipal bond funds for one year total return. As a group, these 73 funds
achieved an average one year total return of +17.8%. The Voyageur Florida
Limited Term Tax Free Fund (Class 'A' shares) was ranked #2 of 22 Florida
intermediate municipal bond funds for one year total return. (Once again, please
refer to the charts on pages 8, 9 and 10 for additional performance
information.)
Each of the Funds was able to capture significant capital appreciation through
duration management. Longer duration funds experience wider fluctuations in
market prices than shorter duration funds. For example, the Voyageur Florida
Insured Tax Free Fund started 1995 with an average weighted duration of 11.8
years which allowed for a significant increase in net asset value. After having
captured this market rally, the duration of the Fund was systematically reduced,
closing the year at approximated 8.5 years. As of December 31, 1995, the
duration for the Voyageur Florida Tax Free Fund was 9.7 years, and the duration
for the Voyageur Florida Limited Term Tax Free Fund was 6.3 years.
The Funds also benefited from relative changes in value between high quality
bonds and lower quality bonds. As interest rate spreads between these two
classes of municipal bonds narrowed, high quality bonds (which had been
dramatically oversold during the 1994 bear market) gained significant relative
value. The Voyageur Florida Insured Tax Free Fund is comprised exclusively of
bonds rated AAA and/or Aaa by Moody's Investors Service and/or Standard & Poor's
Ratings Service; Seventy-six percent of the Voyageur Florida Tax Free Fund's
portfolio was comprised of bonds rated A/a or higher; and ninety-four percent of
the Voyageur Florida Limited Term Tax Free Fund's portfolio was comprised of
bonds rated A/a or higher. As you can see, throughout 1995, asset quality
remained high in all the Voyageur Florida Tax Free Funds.
Finally, supply and demand trends of municipal bonds benefited Fund
shareholders. Even though the economy grew at a steady pace in 1995, new
issuance of municipal bonds remained low. The primary reason for this lower rate
of new issuance stems from some municipal bond refinancing limitations
established under the Tax Reform Act of 1986. A lower level of supply of
municipal bonds favors existing bond holders, particularly large institutional
buyers, such as mutual funds.
OUTLOOK FOR 1996
Our outlook for the municipal bond market remains bullish. However, we do not
anticipate as significant levels of total return in the upcoming year as was
achieved in 1995.
Our 1996 economic outlook calls for:
* CONTINUED LOW RATES OF INFLATION. We expect a Consumer Price Index (CPI)
increase of from 2.5% to 2.8%.
* SLOWING OF ECONOMIC GROWTH. In 1995, U.S. Gross Domestic Product (GDP)
climbed about 3%. Voyageur's 1996 projection for GDP calls for an increase
of about 2.4%.
* STABLE TO SLIGHTLY DECLINING INTEREST RATES. During 1995, the Federal
Reserve Board encouraged lower interest rates by reducing the Federal Funds
Rate by a total of .5%. (Rates were subsequently lowered by an additional
.25% in February 1996.) We expect further reductions of .5% to .75%, which
will likely occur well in advance of the November elections.
In conclusion, Voyageur believes the municipal bond market will have a good year
in 1996. However, we advise against expectations of total return levels achieved
in 1995.
PURSUANT TO RULE 232.304(a) OF REGULATION S-T THE FOLLOWING IS A TABULAR
REPRESENTATION OF A LINE GRAPH FOR VOYAGEUR FLORIDA INSURED TAX FREE FUND
PORTFOLIO ABSTRACT FOR THE PERIOD ENDED DECEMBER 31, 1995. THE DATA REPRESENTS
THE CUMULATIVE TOTAL RETURN OF A HYPOTHETICAL INVESTMENT IN CLASS A SHARES OF
$10,000 MADE ON THE DATE THE FUND COMMENCED OPERATIONS THROUGH DECEMBER 31,
1995.
ENDING VALUE ENDING VALUE ENDING VALUE
WITH SALES WITHOUT SALES LEHMAN BROS.
DATE CHARGE CHARGE BOND INDEX
- ---- ------ ------ ----------
Jan-92 9525 10000 10000
Jan-92 9643.05 10123.93 10030
Feb-92 9651.98 10133.31 10026.991
Mar-92 9675.83 10158.35 10026.993
Apr-92 9728.39 10213.53 10115.23
May-92 9869.03 10361.19 10234.59
Jun-92 10030.62 10530.84 10418.813
Jul-92 10340.44 10856.11 10779.304
Aug-92 10177.52 10685.06 10644.562
Sep-92 10271.99 10784.24 10696.721
Oct-92 10167.37 10674.41 10573.708
Nov-92 10443.41 10964.21 10815.846
Dec-92 10596.87 11125.33 10932.657
Jan-93 10724.39 11259.2 11054.01
Feb-93 11067.84 11619.78 11502.803
Mar-93 11092.39 11645.55 11363.619
Apr-93 11209.6 11768.61 11496.573
May-93 11276.01 11838.33 11571.301
Jun-93 11468.08 12039.98 11766.856
Jul-93 11482.84 12055.47 11791.566
Aug-93 11759.82 12346.26 12045.085
Sep-93 11878.85 12471.23 12186.012
Oct-93 11923.58 12518.19 12201.854
Nov-93 11764.28 12350.95 12087.157
Dec-93 11946.6 12542.36 12356.7
Jan-94 12206 12814.7 12500.038
Feb-94 11868.75 12460.63 12151.287
Mar-94 11365.16 11931.92 11581.392
Apr-94 11143.37 11699.07 11699.522
May-94 11305.18 11868.95 11813.007
Jun-94 11201.5 11760.1 11725.591
Jul-94 11442.93 12013.58 11970.656
Aug-94 11439.28 12009.74 11986.218
Sep-94 11199.55 11758.06 11788.445
Oct-94 10924.92 11469.73 11549.14
Nov-94 10592.61 11120.85 11340.1
Dec-94 10912.52 11456.71 11617.933
Jan-95 11310.29 11874.32 12003.648
Feb-95 11825.13 12414.84 12373.36
Mar-95 11959.84 12556.26 12510.705
Apr-95 11955.02 12551.21 12521.964
May-95 12395.1 13013.23 12943.955
Jun-95 12237.69 12847.97 12801.571
Jul-95 12280.66 12893.08 12903.984
Aug-95 12371.45 12988.4 13078.187
Sep-95 12569.35 13196.17 13168.427
Oct-95 12791.99 13429.91 13392.29
Nov-95 13051.93 13702.81 13633.351
Dec-95 13228.35 13888.03 13773.775
VOYAGEUR FLORIDA INSURED TAX FREE FUND
AVERAGE ANNUAL TOTAL RETURNS
(CLASS A SHARES)
----------------
SINCE
1 Year 1/1/92**
------ --------
Without Sales Charge 21.22% 8.56%
With Sales Charge* 15.46% 7.24%
Lehman Bros. Long 18.56% 8.33%
Insured Municipal
Bond Index
VOYAGEUR FLORIDA INSURED TAX FREE FUND
AVERAGE ANNUAL TOTAL RETURNS
(CLASS B SHARES)
----------------
SINCE
1 Year 3/11/94**
------ ---------
Without Contingent 20.76% 6.80%
Deferred Sales Charge
With Contingent 16.76% 4.68%
Deferred Sales Charge***
*Averagve annual total returns include th emaximum 4.75% sales charge.
** Commencement of operations.
*** Assumes redemption on December 31, 1995.
PURSUANT TO RULE 232.304(a) OF REGULATION S-T THE FOLLOWING IS A TABULAR
REPRESENTATION OF A LINE GRAPH FOR VOYAGEUR FLORIDA LIMITED TERM TAX FREE FUND
PORTFOLIO ABSTRACT FOR THE PERIOD ENDED DECEMBER 31, 1995. THE DATA REPRESENTS
THE CUMULATIVE TOTAL RETURN OF A HYPOTHETICAL INVESTMENT IN CLASS A SHARES OF
$10,000 MADE ON THE DATE THE FUND COMMENCED OPERATIONS THROUGH DECEMBER 31,
1995.
ENDING VALUE ENDING VALUE ENDING VALUE
WITH SALES WITHOUT SALES LEHMAN BROS.
DATE CHARGE CHARGE BOND INDEX
- ---- ------ ------ ----------
May-94 9725 10000 10000
Jun-94 9735.79 10011.1 10044.975
Jul-94 9741.25 10016.71 10161.4967
Aug-94 9830.86 10108.86 10210.2719
Sep-94 9729.83 10004.97 10141.8631
Oct-94 9622.66 9894.76 10074.9268
Nov-94 9475.88 9743.84 9983.24494
Dec-94 9574.7 9845.45 10096.0556
Jan-95 9773.89 10050.27 10221.2467
Feb-95 10033.9 10317.63 10400.1185
Mar-95 10134.56 10421.14 10506.1997
Apr-95 10185.12 10473.13 10546.1233
May-95 10438.14 10733.31 10767.5919
Jun-95 10489.16 10785.77 10785.8968
Jul-95 10571.15 10870.08 10917.4847
Aug-95 10684.3 10986.42 11016.8338
Sep-95 10787.33 11092.37 11044.3759
Oct-95 10870.25 11177.64 11111.7466
Nov-95 10974.18 11284.51 11212.8635
Dec-95 11023.9 11335.63 11271.1704
VOYAGEUR FLORIDA LIMITED TERM TAX FREE FUND
AVERAGE ANNUAL TOTAL RETURNS
(CLASS A SHARES)
----------------
SINCE
1 Year 5/1/94**
------ --------
Without Sales Charge 15.14% 7.79%
With Sales Charge* 11.97% 6.01%
Lehman Bros. 5 11.64% 7.44%
Year Municipal
Bond Index
VOYAGEUR FLORIDA LIMITED TERM TAX FREE FUND
TOTAL RETURNS
(CLASS B SHARES
---------------
SINCE
9/15/95**
---------
Without Contingent Deferred 1.13%
Sales Charge
With Contingent Deferred (1.87%)
Sales Charge***
VOYAGEUR FLORIDA LIMITED TERM TAX FREE FUND
TOTAL RETURNS
(CLASS C SHARES)
----------------
SINCE
3/23/95**
---------
7.95%
* Average annual total returns include the maximum 2.75% sales charge.
** Commencement of operations.
*** Assumes redemption on December 31, 1995.
PURSUANT TO RULE 232.304(a) OF REGULATION S-T THE FOLLOWING IS A TABULAR
REPRESENTATION OF A LINE GRAPH FOR VOYAGEUR FLORIDA TAX FREE FUND PORTFOLIO
ABSTRACT FOR THE PERIOD ENDED DECEMBER 31, 1995. THE DATA REPRESENTS THE
CUMULATIVE TOTAL RETURN OF A HYPOTHETICAL INVESTMENT IN CLASS A SHARES OF
$10,000 MADE ON THE DATE THE FUND COMMENCED OPERATIONS THROUGH DECEMBER 31,
1995.
ENDING VALUE ENDING VALUE ENDING VALUE
WITH SALES WITHOUT SALES LEHMAN BROS.
DATE CHARGE CHARGE BOND INDEX
- ---- ------ ------ ----------
Mar-95 9525 10000 10000
Mar-95 9651.875 10133.2 10110.3024
Apr-95 9649.213 10130.41 10108.2803
May-95 9993.627 10492 10489.3625
Jun-95 9886.06 10379.07 10327.8263
Jul-95 9914.973 10409.42 10381.531
Aug-95 9983.76 10481.64 10523.758
Sep-95 10131.06 10636.28 10606.8957
Oct-95 10347.73 10863.76 10832.8225
Nov-95 10565.78 11092.69 11072.2279
Dec-95 10714.71 11249.04 11227.2391
VOYAGEUR FLORIDA TAX FREE FUND
TOTAL RETURNS
(CLASS A SHARES)
----------------
SINCE
3/2/95**
--------
Without Sales Charge 12.49%
With Sales Charge* 7.15%
Lehman Bros. 20 12.27%
Year Municipal
Bond Index
VOYAGEUR FLORIDA TAX FREE FUND
TOTAL RETURNS
(CLASS B SHARES)
----------------
SINCE
9/15/95**
---------
Without Contingent Deferred 5.10%
Sales Charge
With Contingent Deferred 1.10%
Sales Charge***
VOYAGEUR FLORIDA TAX FREE FUND
TOTAL RETURNS
(CLASS C SHARES)
----------------
SINCE
4/22/95**
---------
8.88%
* Average annual total returns include the maximum 4.75% sales charge.
** Commencement of operations.
*** Assumes redemption on December 31, 1995.
INDEPENDENT AUDITORS' REPORT
The Board of Trustees and Shareholders
Voyageur Investment Trust
Voyageur Investment Trust II:
We have audited the accompanying statements of assets and liabilities,
including the schedules of investments in securities, of Voyageur Florida Tax
Free Fund and Voyageur Florida Insured Tax Free Fund (funds within Voyageur
Investment Trust) and Voyageur Florida Limited Term Tax Free Fund (a fund within
Voyageur Investment Trust II) as of December 31, 1995, the related statements of
operations for the year ended December 31, 1995 (period from March 2, 1995,
commencement of operations, to December 31, 1995 for Voyageur Florida Tax Free
Fund), the statements of changes in net assets for the period from March 2,
1995, commencement of operations, to December 31, 1995 for Voyageur Florida Tax
Free Fund, the year ended December 31, 1995, the two-month period ended December
31, 1994 and the year ended October 31, 1994 for Voyageur Florida Insured Tax
Free Fund and for the year ended December 31, 1995 and the period from May 1,
1994, commencement of operations, to December 31, 1994 for Voyageur Florida
Limited Term Tax Free Fund and the financial highlights for the periods
presented in note 6. These financial statements and the financial highlights are
the responsibility of Fund management. Our responsibility is to express an
opinion on these financial statements and the financial highlights based on our
audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and the financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts disclosures in the financial
statements. Investment securities held in custody are confirmed to us by the
custodian. As to securities purchased but not received, we request confirmations
from brokers and where replies are not received we carry out other appropriate
auditing procedures. An audit also includes assessing the accounting principles
used and significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements and the financial highlights
referred to above present fairly, in all material respects, the financial
position of Voyageur Florida Tax Free Fund, Voyageur Florida Insured Tax Free
Fund and Voyageur Florida Limited Term Tax Free Fund as of December 31, 1995,
and the results of their operations, changes in their net assets and the
financial highlights for the periods stated in the first paragraph above, in
conformity with generally accepted accounting principles.
KPMG Peat Marwick LLP
Minneapolis Minnesota
February 9, 1996
<TABLE>
<CAPTION>
THE VOYAGEUR FUNDS
STATEMENTS OF ASSETS AND LIABILITIES DECEMBER 31, 1995
- -------------------------------------------------------------------------------------------------------------------
VOYAGEUR VOYAGEUR VOYAGEUR
FLORIDA FLORIDA FLORIDA
TAX FREE INSURED LIMITED TERM
FUND TAX FREE FUND TAX FREE FUND
-------- ------------- -------------
ASSETS
<S> <C> <C> <C>
Investments in securities, at market value (note 1) (identified cost:
$4,389,074, $235,230,708 and $821,038, respectively)........ $4,604,360 $247,437,810 $ 854,931
Cash in bank on demand deposit................................. 72,479 -- 123,605
Accrued interest receivable.................................... 75,217 4,230,248 12,296
Receivable for Fund shares sold................................ 15,005 37,037 --
Organizational costs (note 4).................................. -- 20,052 30,714
---------- ------------ ---------
Total assets................................................ 4,767,061 251,725,147 1,021,546
---------- ------------ ---------
LIABILITIES
Bank overdraft................................................. -- 964,984 --
Dividends payable to shareholders.............................. 28,557 1,036,979 6,113
Payable for Fund shares redeemed............................... -- 180,500 --
Payable for investment securities purchased.................... 196,415 4,219,250 49,683
Distribution fees payable...................................... 4,806 8,234 186
Other accrued expenses......................................... 6,321 75,870 11,850
---------- ------------ ---------
Total liabilities........................................... 236,099 6,485,817 67,832
---------- ------------ ---------
NET ASSETS APPLICABLE TO OUTSTANDING SHARES.................... $4,530,962 $245,239,330 $ 953,714
========== ============ =========
Represented by:
Paid-in capital (note 1).................................... $4,315,638 $245,805,537 $ 912,144
Undistributed net investment income......................... 38 69,987 7,677
Accumulated net realized loss on investments (note 1)....... -- (12,843,296) --
Unrealized appreciation of investments...................... 215,286 12,207,102 33,893
---------- ------------ ---------
Total net assets.......................................... $4,530,962 $245,239,330 $ 953,714
========== ============ =========
Net assets applicable to outstanding Class A Shares............ $4,421,203 $242,425,038 $ 859,162
========== ============ =========
Net assets applicable to outstanding Class B Shares............ $ 101,114 $ 2,814,292 $ 40,907
========== ============ =========
Net assets applicable to outstanding Class C Shares............ $ 8,645 N/A $ 53,645
========== ============ =========
SHARES OUTSTANDING AND NET ASSET VALUE PER SHARE
Class A - Shares of beneficial interest outstanding: 412,140,
22,159,712 and 81,392, respectively (note 5).............. $10.73 $10.94 $10.56
====== ====== ======
Class B - Shares of beneficial interest outstanding: 9,424,
257,299 and 3,875, respectively (note 5).................. $10.73 $10.94 $10.56
====== ====== ======
Class C - Shares of beneficial interest outstanding: 806,
N/A and 5,083, respectively (note 5)...................... $10.73 N/A $10.55
====== ======= ======
See accompanying notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
THE VOYAGEUR FUNDS
STATEMENTS OF OPERATIONS YEAR ENDED DECEMBER 31, 1995
- -----------------------------------------------------------------------------------------------------------------
VOYAGEUR VOYAGEUR VOYAGEUR
FLORIDA FLORIDA FLORIDA
TAX FREE INSURED LIMITED TERM
FUND* TAX FREE FUND TAX FREE FUND
-------- ------------- -------------
Investment income:
<S> <C> <C> <C>
Interest............................................ $123,053 $14,154,310 $32,584
-------- ----------- -------
Expenses (note 3):
Investment advisory and management fee.............. 10,974 1,235,118 2,665
Dividend-disbursing, administrative and
accounting services fees.......................... 15,010 325,819 10,995
Printing, postage and supplies...................... 959 53,809 1,052
Audit and accounting fees........................... 2,832 18,817 2,633
Legal fees.......................................... 546 5,091 671
Distribution fees - Class A......................... 5,427 611,873 1,536
Distribution fees - Class B......................... 195 22,840 120
Distribution fees - Class C......................... 48 N/A 402
Directors' fees..................................... 475 12,978 133
Registration fees................................... 1,970 2,516 838
Custodian fees...................................... 2,642 37,020 6,702
Amortization of organizational costs................ -- 15,794 3,300
Other .............................................. 1,099 15,656 94
-------- ----------- -------
Total expenses.................................... 42,177 2,357,331 31,141
Less: Expenses waived or absorbed.................. (35,099) (1,089,651) (26,419)
-------- ----------- -------
Net expenses before earnings credits on uninvested cash 7,078 1,267,680 4,722
Less: Earnings credits on uninvested cash.......... (46) (37,020) (111)
-------- ----------- -------
Total net expenses................................ 7,032 1,230,660 4,611
-------- ----------- -------
Investment income - net........................... 116,021 12,923,650 27,973
-------- ----------- -------
Realized and unrealized gain (loss) on investments:
Realized gain (loss) on security transactions (note 2) 8,195 (10,106,237) 2,938
Net change in unrealized appreciation or
depreciation of investments....................... 215,286 44,984,832 56,693
-------- ----------- -------
Net gain on investments........................... 223,481 34,878,595 59,631
-------- ----------- -------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS... $339,502 $47,802,245 $87,604
======== =========== =======
___________________________________
* Period from March 2, 1995 (commencement of operations) to December 31, 1995.
See accompanying notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
THE VOYAGEUR FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
- -----------------------------------------------------------------------------------------------------------
VOYAGEUR FLORIDA
TAX FREE FUND
----------------
PERIOD FROM
MARCH 2, 1995*
TO DECEMBER 31,
Operations: 1995
----------------
<S> <C>
Investment income - net........................................................ $ 116,021
Realized gain (loss) on investments - net...................................... 8,195
Net change in unrealized appreciation or depreciation of investments .......... 215,286
----------
Net increase (decrease) in net assets resulting from operations.............. 339,502
----------
Distributions to shareholders from:
Investment income - net:
Class A...................................................................... (114,869)
Class B...................................................................... (890)
Class C...................................................................... (224)
Net realized gain on investments:
Class A...................................................................... (8,023)
Class B...................................................................... (156)
Class C...................................................................... (16)
----------
Total distributions............................................................ (124,178)
----------
Share transactions (note 5)
Proceeds from sale of shares:
Class A (note 3)............................................................. 7,295,342
Class B...................................................................... 98,749
Class C...................................................................... 8,000
Net asset value of shares issued in reinvestment of net investment income and
realized gain distributions:
Class A.................................................................... 58,440
Class B.................................................................... 127
Class C.................................................................... 188
Payments for redemption of shares:
Class A...................................................................... (3,145,208)
Class B (note 3)............................................................. --
Class C (note 3)............................................................. --
----------
Increase (decrease) in net assets from share transactions...................... 4,315,638
----------
Total increase (decrease) in net assets...................................... 4,530,962
Net assets at beginning of period................................................. --
----------
Net assets at end of period (including undistributed net investment income of
$38, $69,987, $456,366, $226,091, $7,677 and $4,101, respectively)............. $4,530,962
==========
_________________________________
* Commencement of operations.
See accompanying notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
THE VOYAGEUR FUNDS
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
- ----------------------------------------------------------------------------------------------------------------------------
VOYAGEUR FLORIDA
INSURED TAX FREE FUND
-------------------------------------------
YEAR TWO MONTHS YEAR
ENDED ENDED ENDED
DECEMBER 31, DECEMBER 31, OCTOBER 31,
1995 1994 (NOTE 1) 1994
------------ ------------ -------------
Operations:
<S> <C> <C> <C>
Investment income - net.................................................... $ 12,923,650 2,550,708 $ 15,534,263
Realized gain (loss) on investments - net.................................. (10,106,237) (2,714,141) 998,155
Net change in unrealized appreciation or depreciation of investments ...... 44,984,832 (598,143) (42,668,553
------------ ------------ -------------
Net increase (decrease) in net assets resulting from operations.......... 47,802,245 (761,576) (26,136,135
------------ ------------ -------------
Distributions to shareholders from:
Investment income - net:
Class A.................................................................. (13,200,309) (2,309,982) (15,291,790
Class B.................................................................. (111,406) (10,719) (19,754
Class C.................................................................. N/A N/A N/A
Net realized gain on investments:
Class A.................................................................. -- (362,080) (1,658,750
Class B.................................................................. -- (2,123) (965
Class C.................................................................. N/A N/A N/A
------------ ------------ -------------
Total distributions........................................................ (13,311,715) (2,684,904) (16,971,259
------------ ------------ -------------
Share transactions (note 5)
Proceeds from sale of shares:
Class A (note 3)......................................................... 15,868,684 1,526,367 65,436,366
Class B.................................................................. 1,240,744 349,116 1,262,199
Class C.................................................................. N/A N/A N/A
Net asset value of shares issued in reinvestment of net
investment income and realized gain distributions:
Class A................................................................ 3,537,588 336,032 4,711,199
Class B................................................................ 35,055 1,922 10,015
Class C................................................................ N/A N/A N/A
Payments for redemption of shares:
Class A.................................................................. (51,412,855) (17,898,652) (57,085,493
Class B (note 3)......................................................... (225,432) (336) (72,097
Class C (note 3)......................................................... N/A N/A N/A
------------ ------------ -------------
Increase (decrease) in net assets from share transactions.................. (30,956,216) (15,685,551) 14,262,189
------------ ------------ -------------
Total increase (decrease) in net assets.................................. 3,534,314 (19,132,031) (28,845,205
Net assets at beginning of period............................................. 241,705,016 260,837,047 289,682,252
------------ ------------ -------------
Net assets at end of period (including undistributed net investment income of
$38, $69,987, $456,366, $226,091, $7,677 and $4,101, respectively)......... $245,239,330 $241,705,016 $260,837,047
============ ============ ============
_________________________________
* Commencement of operations.
See accompanying notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
THE VOYAGEUR FUNDS
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
- --------------------------------------------------------------------------------------------------------------------------
VOYAGEUR FLORIDA
LIMITED TERM TAX FREE FUND
---------------------------------
YEAR PERIOD FROM
ENDED MAY 1, 1994* TO
DECEMBER 31, DECEMBER 31,
1995 1994
--------- ----------
Operations:
<S> <C> <C>
Investment income - net........................................................ $ 27,973 $ 10,091
Realized gain (loss) on investments - net...................................... 2,938 --
Net change in unrealized appreciation or depreciation of investments .......... 56,693 (22,800)
---------- ------------
Net increase (decrease) in net assets resulting from operations.............. 87,604 (12,709)
---------- ------------
Distributions to shareholders from:
Investment income - net:
Class A...................................................................... (28,766) (10,149)
Class B...................................................................... (436) N/A
Class C...................................................................... (1,435) N/A
Net realized gain on investments:
Class A...................................................................... (2,605) --
Class B...................................................................... (144) N/A
Class C...................................................................... (189) N/A
-------- ----------
Total distributions............................................................ (33,575) (10,149)
-------- ----------
Share transactions (note 5)
Proceeds from sale of shares:
Class A (note 3)............................................................. 902,017 1,066,161
Class B...................................................................... 40,710 N/A
Class C...................................................................... 50,007 N/A
Net asset value of shares issued in reinvestment of net investment income and
realized gain distributions:
Class A.................................................................... 14,355 7,664
Class B.................................................................... 302 N/A
Class C.................................................................... 1,271 N/A
Payments for redemption of shares:
Class A...................................................................... (701,186) (458,748)
Class B (note 3)............................................................. (10) N/A
Class C (note 3)............................................................. -- N/A
-------- ----------
Increase (decrease) in net assets from share transactions...................... 307,466 615,077
-------- ----------
Total increase (decrease) in net assets...................................... 361,495 592,219
Net assets at beginning of period................................................. 592,219 --
-------- ----------
Net assets at end of period (including undistributed net investment income of
$38, $69,987, $456,366, $226,091, $7,677 and $4,101, respectively)............. $953,714 $ 592,219
======== ==========
__________________________________
* Commencement of operations.
See accompanying notes to financial statements.
</TABLE>
THE VOYAGEUR FUNDS
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
(1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Voyageur Florida Tax Free Fund (Florida Tax Free Fund) and the Voyageur
Florida Insured Tax Free Fund (Florida Insured Tax Free Fund), funds within the
Voyageur Investment Trust, a Massachusetts business trust registered under the
Investment Company Act of 1940 (as amended) as open-end management investment
companies with an unlimited number of authorized shares of beneficial interest.
Voyageur Florida Limited Term Tax Free Fund (Florida Limited Term Fund) is a
fund within Voyageur Investment Trust II, 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. Florida Tax Free Fund seeks high current income free from
federal income tax and state intangibles tax by investing in investment grade
municipal bonds. Florida Insured Tax Free Fund seeks high current income free
from federal income tax and state intangibles tax with the added safety of an
insured portfolio by investing in insured municipal bonds. Florida Limited Term
Fund seeks to preserve original investment principal while providing income free
both federal income tax and state intangibles tax by investing in intermediate
term investment grade municipal bonds.
Florida Tax Free Fund, Florida Insured Tax Free Fund and Florida Limited
Term Fund (the Funds) each offer Class A, Class B and Class C Shares. As of
December 31, 1995 Florida Insured Tax Free Fund had no Class C Shares
outstanding. Class A Shares are sold with a front-end sales charge. Class B
Shares, first offered in 1995 by Florida Tax Free Fund and Florida Limited Term
Fund, may be subject to a contingent deferred sales charge and such shares
automatically convert to Class A after eight years. Class C Shares, first
offered in 1995 by Florida Tax Free Fund and Florida Insured Tax Free Fund, are
not subject to a contingent deferred sales charge or a front-end 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 differ 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. Florida Insured Tax Free
Fund is registered as a diversified Fund. Florida Limited Term Fund and Florida
Tax Free Fund are registered as non-diversified Funds. Effective December 31,
1994, Florida Insured Tax Free Fund changed its fiscal year from October 31 to
December 31. The significant accounting policies followed by the Funds are
summarized as follows:
USE OF ESTIMATES
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of net increase (decrease) in net assets
from operations during the reporting period. Actual results could differ from
those estimates.
INVESTMENTS IN SECURITIES
Securities are valued at fair value as determined by the Board of Trustees.
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 Funds concentrate their investments in limited geographical areas and
therefore, may have more credit risk related to the economic conditions of these
areas than a portfolio with broader geographical diversification.
FEDERAL TAXES
The Funds' policy is to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
their income to shareholders in amounts that will avoid or minimize federal
income or excise taxes for the Funds. Net investment income and net realized
gains (losses) for the Funds 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. 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 Funds. For federal income tax purposes, Florida Insured Tax Free Fund had a
capital loss carryover at December 31, 1995, of $12,820,379 that will expire in
2003 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 carryover has been offset or expires.
On the statements of assets and liabilities for Florida Insured Tax Free
Fund and Florida Limited Term Fund, as a result of permanent book-to-tax
differences, reclassification adjustments have been made to increase
undistributed net investment income and decrease additional paid-in capital by
$1,686 and $6,240, respectively.
DISTRIBUTIONS TO SHAREHOLDERS
Dividends declared daily from net investment income are payable monthly in
cash or reinvested in additional shares of the Funds. 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.
SECURITIES PURCHASED ON A WHEN-ISSUED BASIS
Delivery and payment for securities which have been purchased by the Funds
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.
(2) INVESTMENT SECURITIES TRANSACTIONS
Purchase cost and proceeds of sales of investment securities other than
short-term securities aggregated $6,011,801 and $1,630,922, for Florida Tax Free
Fund, $249,601,438 and $272,862,304 for Florida Insured Tax Free Fund and
$425,593 and $176,481 for Florida Limited Term Fund during the period ended
December 31, 1995, respectively.
(3) EXPENSES
Each Fund has an investment advisory and management fee agreement with
Voyageur Fund Managers, Inc. (Voyageur) under which Voyageur manages the Funds'
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 each Fund at the annual rate of .50% for Florida Tax Free Fund and for
Florida Insured Tax Free Fund and .40% for Florida Limited Term Fund. In
addition, the Funds 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 Florida Insured Tax Free Fund. Portfolio insurance expense, if any,
is recognized over the premium period. Voyageur is obligated to pay all expenses
of the Funds (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 period ended December
31, 1995, Voyageur absorbed $14,412 for Florida Tax Free Fund and $22,410 for
Florida Limited Term Fund pursuant to the contractual 1% expense limitation and,
excluding waiver of distribution fees, voluntarily absorbed $20,588 for Florida
Tax Free Fund, $480,000 for Florida Insured Tax Free Fund and $2,590 for Florida
Limited Term Fund. During the period ended December 31, 1995, credits earned on
uninvested cash balances held by each Fund at the custodian were $46 for Florida
Tax Free Fund, $48,512 for Florida Insured Tax Free Fund and $111 for Florida
Limited Term Fund. Of these credits, $46, $37,020 and $111, respectively, were
used to reduce certain fees for various custodial, pricing and accounting
services provided by the custodian bank. The remaining $11,492 in credits for
Florida Insured Tax Free Fund are included in interest income.
The Funds will also pay a fee to Voyageur for acting as the Funds'
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 each
Fund's average daily net assets and an annualized percentage of average daily
net assets at reducing rates from .11% to .02%. Each 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 Fund 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, each Fund is obligated to pay Fund Distributors a monthly
distribution fee at an annual rate of .25% of each Fund's average daily net
assets of the Class A Shares and 1.00% of each Fund's average daily net assets
of the Class B Shares and Class C Shares. Fund Distributors may waive all or
part of its distribution fee at its sole discretion. During the period ended
December 31, 1995, Fund Distributors voluntarily waived Class A distribution
fees of $595,950 for Florida Insured Tax Free Fund and $1,389 for Florida
Limited Term Fund; and Class B distribution fees of $99 for Florida Tax Free
Fund, $13,701 for Florida Insured Tax Free Fund and $30 for Florida Limited Term
Fund.
Sales charges paid by Class A shareholders were $42,789 Florida Tax Free
Fund, $355,988 for Florida Insured Tax Free Fund and $3,866 for Florida Limited
Term Fund. Of these amounts, Fund Distributors received $6,121 for Florida Tax
Free Fund, $46,946 for Florida Insured Tax Free Fund and $741 for Florida
Limited Term Fund. Contingent deferred sales charges for the year ended December
31, 1995 were $1,166 for Florida Insured Tax Free Fund's Class B shareholders.
(4) ORGANIZATIONAL COSTS
Organizational costs for the Funds are being amortized over 60 months on an
inverse acceleration (sum-of-the-years digits) basis. If Voyageur redeems any or
all of its shares in the Funds representing initial capital prior to the end of
the 60-month amortization period, Voyageur will reimburse the Fund for the
unamortized balance in the same proportion as the number of shares redeemed bear
to the number of initial shares outstanding at the time of redemption.
(5) SHARE TRANSACTIONS
Transactions in shares of beneficial interest during each period were as
follows:
<TABLE>
<CAPTION>
FLORIDA TAX FREE FUND
------------------------------------------------------------
CLASS A CLASS B CLASS C
----------------- ------------------ ---------------
PERIOD FROM PERIOD FROM PERIOD FROM
MARCH 2, 1995* SEPTEMBER 15, 1995* APRIL 22, 1995*
TO DECEMBER 31, TO DECEMBER 31, TO DECEMBER 31,
1995 1995 1995
----------------- ------------------ ---------------
<S> <C> <C> <C>
Shares sold............................... 714,330 9,412 788
Shares issued for
reinvested distributions............... 5,684 12 18
Shares redeemed........................... (307,874) -- --
------------ --------- -------
Increase in shares outstanding............ 412,140 9,424 806
============ ======== =======
_______________________________
* Commencement of operations
</TABLE>
<TABLE>
<CAPTION>
FLORIDA INSURED TAX FREE FUND
-----------------------------------------------------------------------------------
CLASS A CLASS B
---------------------------------------- ---------------------------------------
PERIOD FROM
YEAR TWO MONTHS YEAR YEAR TWO MONTHS MARCH 1,
ENDED ENDED ENDED ENDED ENDED 1994* TO
DECEMBER 31, DECEMBER 31, OCTOBER 31, DECEMBER 31, DECEMBER 31, OCTOBER 31,
1995 1994 1994 1995 1994 1994
----------- ----------- ----------- ----------- ------------ -----------
<S> <C> <C> <C> <C> <C> <C>
Shares sold.................. 1,522,503 163,472 6,083,008 120,147 37,194 123,827
Shares issued for
reinvested distributions.. 344,908 36,293 450,509 3,406 208 1,002
Shares redeemed.............. (4,946,296) (1,913,092) (5,567,599) (21,459) (36) (6,990)
----------- ----------- ----------- -------- -------- --------
Increase (decrease) in
shares outstanding........ (3,078,885) (1,713,327) 965,918 102,094 37,366 117,839
============ =========== =========== ======== ======== ========
_______________________________
* Commencement of operations
</TABLE>
<TABLE>
<CAPTION>
FLORIDA LIMITED TERM FUND
--------------------------------------------------------------------
CLASS A CLASS B CLASS C
-------------------------- ------------------- ---------------
YEAR PERIOD FROM PERIOD FROM PERIOD FROM
ENDED MAY 1, 1994* TO SEPTEMBER 15, 1995* MARCH 23, 1995*
DECEMBER 31, DECEMBER 31, TO DECEMBER 31, TO DECEMBER 31,
1995 1994 1995 1995
-------- -------- -------- ------
<S> <C> <C> <C> <C>
Shares sold............................... 88,686 107,691 3,848 4,960
Shares issued for
reinvested distributions............... 1,412 785 28 123
Shares redeemed........................... (70,114) (47,068) (1) --
-------- -------- -------- ------
Increase in shares outstanding............ 19,984 61,408 3,875 5,083
======== ======== ======== =======
_______________________________
* Commencement of operations
</TABLE>
(6) 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>
FLORIDA TAX FREE FUND
----------------------------------------------------------------
CLASS A CLASS B CLASS C
----------------- --------------------- -----------------
PERIOD FROM PERIOD FROM PERIOD FROM
MARCH 2, 1995(a) SEPTEMBER 15, 1995(a) APRIL 22, 1995(a)
TO DECEMBER 31, TO DECEMBER 31, TO DECEMBER, 31
1995 1995 1995
----------------- --------------------- -----------------
Net asset value:
<S> <C> <C> <C>
Beginning of period........................... $10.00 $10.37 $10.20
------ ------ ------
Operations:
Net investment income......................... .47 .15 .33
Net realized and unrealized loss on investments .75 .38 .56
------ ------ ------
Total from operations......................... 1.22 .53 .89
------ ------ ------
Distributions to shareholders:
From net investment income (b)................ (.47) (.15) (.34)
From net realized gains....................... (.02) (.02) (.02)
------ ------ ------
Total distributions......................... (.49) (.17) (.36)
------ ------ ------
Net asset value:
End of period................................. $10.73 $10.73 $10.73
====== ====== ======
Total investment return (c)...................... 12.49% 5.10% 8.88%
Net assets at end of period (000's omitted)...... $4,421 $101 $9
Ratios:
Ratio of expenses to
average daily net assets (f)................ .32%(e) .44%(e) 1.11%(e)
Ratio of net investment income
to average daily net assets................. 5.26%(e) 4.88%(e) 4.57%(e)
Assuming no voluntary waivers
and reimbursements:
Expenses (d).......................... 1.25%(e) 2.00%(e) 2.00%(e)
Net investment income................. 4.33%(e) 3.32%(e) 3.68%(e)
Portfolio turnover rate (excluding
short-term securities)........................ 63.52% 63.52% 63.52%
See accompanying notes to Financial Highlights.
</TABLE>
(6) FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
FLORIDA INSURED TAX FREE FUND
-------------------------------------------------------------------
CLASS A
-------------------------------------------------------------------
PERIOD FROM
YEAR TWO MONTHS JANUARY 1,
ENDED ENDED 1992(a) TO
DECEMBER 31, DECEMBER 31, YEAR ENDED OCTOBER 31, OCTOBER 31,
1995 1994 1994 1993 1992
------ ----- ------ ------ ------
Net Asset Value:
<S> <C> <C> <C> <C> <C>
Beginning of period...................... $ 9.52 $9.64 $11.15 $10.11 $10.00
------ ----- ------ ------ ------
Operations:
Net investment income.................... .54 .10 .55 .58 .51
Net realized and unrealized
gain (loss) on investments ........... 1.44 (.12) (1.46) 1.12 .15
------ ----- ------ ------ ------
Total from operations................ 1.98 (.02) (.91) 1.70 .66
------ ----- ------ ------ ------
Distributions to shareholders:
From net investment income (b)........... (.56) (.09) (.54) (.58) (.51)
From net realized gains.................. -- (.01) (.06) (.08) (.04)
------ ----- ------ ------ ------
Total distributions.................... (.56) (.10) (.60) (.66) (.55)
------ ----- ------ ------ ------
Net asset value:
End of period............................ $10.94 $9.52 $9.64 $11.15 $10.11
====== ===== ===== ====== ======
Total investment return (c)................. 21.22% (0.11)% (8.38)% 17.27% 6.74%
Net assets at end of period
(000's omitted).......................... $242,425 $240,228 $259,702 $289,682 $50,666
Ratios:
Ratio of expenses to
average daily net assets (f)........... .51% .20%(e) .44% .18% --%
Ratio of net investment income
to average daily net assets............ 5.24% 6.24%(e) 5.24% 5.18% 5.38%(e)
Assuming no voluntary waivers
and reimbursements:
Expenses (d)..................... .95% 1.06%(e) .96% 1.12% 1.25%(e)
Net investment income............ 4.80% 5.38%(e) 4.72% 4.24% 4.13%(e)
Portfolio turnover rate (excluding
short-term securities)................... 101.48% 2.51% 49.12% 53.51% 208.24%
See accompanying notes to Financial Highlights.
</TABLE>
(6) FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
FLORIDA INSURED TAX FREE FUND
------------------------------------------------
CLASS B
------------------------------------------------
YEAR TWO MONTHS PERIOD FROM
ENDED ENDED MARCH 1, 1994(a)
DECEMBER 31, DECEMBER 31, TO OCTOBER 31,
1995 1994 1994
------ ----- ------
Net Asset Value:
<S> <C> <C> <C>
Beginning of period........................... $ 9.52 $9.63 $10.82
------ ----- ------
Operations:
Net investment income......................... .50 .09 .31
Net realized and unrealized
gain (loss) on investments ................ 1.44 (.11) (1.19)
------ ----- ------
Total from operations..................... 1.94 (.02) (.88)
------ ----- ------
Distributions to shareholders:
From net investment income (b)................ (.52) (.08) (.30)
From net realized gains....................... -- (.01) (.01)
------ ----- ------
Total distributions......................... (.52) (.09) (.31)
------ ----- ------
Net asset value:
End of period................................ $10.94 $9.52 $9.63
====== ===== =====
Total investment return (c)..................... 20.76% (0.03)% (8.10)%
Net assets at end of period
(000's omitted)............................... $2,814 $1,477 $1,135
Ratios:
Ratio of expenses to
average daily net assets (f)............... .89% .59%(e) 1.00%(e)
Ratio of net investment income
to average daily net assets................ 4.80% 5.68%(e) 4.63%(e)
Assuming no voluntary waivers
and reimbursements:
Expenses (d)......................... 1.68% 1.81%(e) 1.28%(e)
Net investment income................. 4.01% 4.46%(e) 4.35%(e)
Portfolio turnover rate (excluding
short-term securities)........................ 101.48% 2.51% 49.12%
See accompanying notes to Financial Highlights.
</TABLE>
(6) FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
FLORIDA LIMITED TERM FUND
-----------------------------------------------------------------------
CLASS A CLASS B CLASS C
----------------------------- --------------------- -----------------
YEAR PERIOD FROM PERIOD FROM PERIOD FROM
ENDED MAY 1, 1994(a) SEPTEMBER 15, 1995(a) MARCH 23, 1995(a)
DECEMBER 31, TO DECEMBER 31, TO DECEMBER 31, TO DECEMBER 31,
1995 1994 1995 1995
----- ------ ------ ------
Net asset value:
<S> <C> <C> <C> <C>
Beginning of period.................... $9.64 $10.00 $10.58 $10.08
----- ------ ------ ------
Operations:
Net investment income.................. .44 .18 .10 .25
Net realized and unrealized gain (loss)
on investments....................... 1.01 (.36) .03 .55
----- ------ ------ ------
Total from operations.................. 1.45 (.18) .13 .80
----- ------ ------ ------
Distributions to shareholders:
From net investment income (b)......... (.49) (.18) (.11) (.29)
From net realized gains................ (.04) -- (.04) (.04)
----- ------ ------ ------
Total distributions.................. (.53) (.18) (.15) (.33)
----- ------ ------ ------
Net asset value:
End of period.......................... $10.56 $9.64 $10.56 $10.55
====== ===== ====== ======
Total investment return (c)............... 15.14% (1.55)% 1.13% 7.95%
Net assets at end of period (000's omitted) $859 $592 $41 $54
Ratios:
Ratio of expenses to
average daily net assets (f)......... .63% --%(e) 1.52%(e) 1.62%(e)
Ratio of net investment income
to average daily net assets.......... 4.28% 4.19%(e) 3.32%(e) 3.10%(e)
Assuming no voluntary waivers
and reimbursements:
Expenses (d)................... 1.25% 1.25%(e) 2.00%(e) 2.00%(e)
Net investment income.......... 3.66% 2.94%(e) 2.84%(e) 2.72%(e)
Portfolio turnover rate (excluding
short-term securities)................. 27.76% --% 27.76% 27.76%
See accompanying notes to Financial Highlights.
</TABLE>
NOTES TO FINANCIAL HIGHLIGHTS
- -----------------------------
(a) Commencement of operations.
(b) For federal income tax purposes, all of the net investment income
distributions were derived from interest on securities exempt from federal
income tax.
(c) 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.
(d) Voyageur and Fund Distributors voluntarily waived or reimbursed a portion
of 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 each
Fund's average daily net assets for Class A Shares and 1.00% of each Fund's
average daily net assets for Class B and Class C Shares.
(e) Annualized.
(f) Beginning in the year ended December 31, 1995, the expense ratio reflects
the effect of gross expenses attributable to earnings credits on uninvested
cash balances received by the Funds. Prior period expense ratios have not
been adjusted.
<TABLE>
<CAPTION>
VOYAGEUR FLORIDA TAX FREE FUND
INVESTMENTS IN SECURITIES DECEMBER 31, 1995
- -------------------------------------------------------------------------------------------------------------------
PRINCIPAL
AMOUNT COUPON MARKET
($000) NAME OF ISSUER (b) RATE MATURITY VALUE (a)
- -------------------------------------------------------------------------------------------------------------------
(PERCENTAGE OF EACH INVESTMENT CATEGORY RELATES TO TOTAL NET ASSETS.)
MUNICIPAL BONDS (101.6%):
UTILITIES (23.5%):
------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
$100 Charlotte County Utility Revenue (FGIC Insured)........................ 5.50% 10-01-17 100,990
100 Fort Pierce Utility Authority Revenue (AMBAC Insured).................. 5.25 10-01-16 99,678
100 Key West Sewer Revenue (FGIC Insured).................................. 5.70 10-01-26 101,937
100 Miramar Wastewater Improvement Revenue (FGIC Insured).................. 6.75 10-01-25 111,033
150 Puerto Rico Electric Power Authority Revenue........................... 5.50 07-01-25 148,059
100 St. Lucie County Utility System Revenue (FGIC Insured)................. 5.50 10-01-17 100,623
150 St. Lucie County Special Assessment Revenue, South Hutchinson Island... 6.10 01-01-20 153,563
250 Vero Beach Electric Refunding Revenue (MBIA Insured)................... 5.38 12-01-21 250,463
------------
1,066,346
------------
TRANSPORTATION (5.8%):
------------------------------------------------------------------------------------------------------
160 Florida State Mid Bay Bridge Authority Revenue......................... 6.13 10-01-22 161,923
100 Hillsborough County Aviation Authority Revenue, Tampa Airport
(FGIC Insured)....................................................... 5.60 10-01-19 101,038
------------
262,961
------------
HEALTH CARE (20.5%):
------------------------------------------------------------------------------------------------------
155 Dade County Public Facility Revenue, Jackson Memorial Hospital
(MBIA Insured)...................................................... 5.25 06-01-23 150,607
100 Hillsborough County Hospital Authority, Tampa General Hospital
(FSA Insured)....................................................... 6.38 10-01-13 107,600
225 Orange County Health Facility Revenue Adventist Health System
(AMBAC Insured)..................................................... 5.25 11-15-20 219,793
100 Palm Beach Health Facility Revenue, Good Samaritan Health.............. 6.30 10-01-22 106,250
200 Sarasota Health Facility Revenue, Sunnyside Properties................. 6.00(d) 05-15-10 195,658
150 South Miami Health Facility Authority Revenue (MBIA Insured)........... 5.50 10-01-20 150,296
------------
930,204
------------
HOUSING (30.5%):
------------------------------------------------------------------------------------------------------
150 Blackwater Housing Corporation......................................... 6.50 06-01-25 154,347
500 Dade County Housing Finance Authority, Multifamily Mortgage
(MBIA Insured)....................................................... 6.25 07-01-24 518,125
200 Florida Housing Finance Agency, Homeowner Mortgage..................... 6.00 01-01-17 203,076
500 Florida Housing Finance Agency, Vineyards Project...................... 6.40 11-01-15 504,900
------------
1,380,448
------------
OTHER REVENUE (21.3%):
------------------------------------------------------------------------------------------------------
100 Boca Raton Special Assessment Revenue.................................. 5.20 07-01-22 96,326
145 Florida State Division of Bond Finance, General Services Revenue....... 5.38 07-01-12 145,610
100 Jacksonville Sales Tax Revenue (FGIC Insured).......................... 5.38 10-01-18 100,072
155 Miami Parking Facility Revenue......................................... 5.70 10-01-09 158,653
100 North Palm Beach County Impt. Dist. Revenue - Dev. 31-1................ 6.75 11-01-15 102,952
110 Orange County Sales Tax Revenue........................................ 5.38 01-01-24 107,173
250 Orlando & Orange County Expressway Authority Revenue................... 5.95 07-01-23 253,615
------------
964,401
------------
TOTAL INVESTMENTS IN SECURITIES (cost: $4,389,074) (c) $4,604,360
============
See accompanying notes to financial statements.
VOYAGEUR FLORIDA INSURED TAX FREE FUND
INVESTMENTS IN SECURITIES (CONTINUED) DECEMBER 31, 1995
- -------------------------------------------------------------------------------------------------------------------
PRINCIPAL
AMOUNT COUPON MARKET
($000) NAME OF ISSUER (b) RATE MATURITY VALUE (a)
- -------------------------------------------------------------------------------------------------------------------
(PERCENTAGE OF EACH INVESTMENT CATEGORY RELATES TO TOTAL NET ASSETS.)
MUNICIPAL BONDS (100.9%):
GENERAL OBLIGATION (11.6%):
------------------------------------------------------------------------------------------------------
$ 1,000 Coral Springs Water & Sewer Improvement District (MBIA Insured) 6.00% 06-01-10 $1,094,320
6,000 Florida State Board of Education (MBIA Insured)........................ 5.75 06-01-11 6,264,780
5,500 Florida State Board of Education (MBIA Insured)........................ 6.10 06-01-24 5,855,465
4,600 Florida State Department of Transportation Right of Way (MBIA Insured). 5.60 07-01-10 4,746,556
4,900 Florida State Department of Transportation Right of Way (MBIA Insured). 5.70 07-01-11 5,088,944
2,350 Florida State Department of Transportation Right of Way (MBIA Insured). 5.75 07-01-12 2,443,084
3,000 Indian River School District (FSA Insured)............................. 5.50 04-01-13 3,038,760
------------
28,531,909
------------
UTILITY (29.1%):
------------------------------------------------------------------------------------------------------
2,385 Bradenton Utility System Revenue (FGIC Insured)........................ 5.75 10-01-11 2,500,052
1,700 Coco Beach Utility Systems (MBIA Insured).............................. 5.50 11-01-13 1,726,945
1,000 Coral Springs Water & Sewer Revenue (FGIC Insured)..................... 6.00 09-01-10 1,065,450
1,000 Dade County Water & Sewer Revenue (FGIC Insured)....................... 5.50 10-01-18 1,007,050
7,725 Dade County Water & Sewer Revenue (FGIC Insured)....................... 5.50 10-01-25 7,757,445
2,070 Florida State Municipal Power St. Lucie (FGIC Insured)................. 5.50 10-01-12 2,098,483
7,000 Hillsborough County Utility (MBIA Insured)............................. 5.50 08-01-16 7,064,890
2,000 Indian River Water & Sewer Revenue (FGIC Insured)...................... 5.50 09-01-15 2,021,160
3,000 Jacksonville Electric Authority Revenue (FSA Insured).................. 5.50 10-01-14 3,029,850
2,000 Jupiter Water Revenue (AMBAC Insured).................................. 6.25 10-01-12 2,144,040
1,000 Key West Sewer Revenue Refunding (FGIC Insured)........................ 5.60 10-01-14 1,019,460
1,000 Kissimmee Utility Electric Revenue (FGIC Insured)...................... 5.25 10-01-18 984,910
1,000 Lakeland Electric & Water Revenue (FGIC Insured)....................... 5.88(d) 10-01-08 1,081,640
1,015 Lakeland Electric & Water Revenue (FGIC Insured)....................... 6.00(d) 10-01-13 1,108,370
1,000 Lakeland Electric & Water Revenue (FGIC Insured)....................... 6.00(d) 10-01-14 1,091,810
1,250 Longboat Key Water & Sewer (AMBAC Insured)............................. 5.50 07-01-10 1,276,500
1,800 Miami Beach Water & Sewer Revenue (FSA Insured)........................ 5.40 09-01-09 1,833,732
3,400 Miami Beach Water & Sewer Revenue (FSA Insured)........................ 5.38 09-01-15 3,404,692
2,175 Miramar Water Improvement Assessment Revenue (FGIC Insured)............ 6.75 10-01-25 2,414,968
1,000 New Smyrna Beach Utility Revenue (FGIC Insured)........................ 6.00 10-01-13 1,058,840
1,500 North Port Utilities System Revenue (FGIC Insured)..................... 6.15 10-01-09 1,619,055
5,000 North Port Utilities System Revenue (FGIC Insured)..................... 6.25 10-01-22 5,356,600
1,475 Ocoee Water & Sewer System (MBIA Insured).............................. 5.75 10-01-10 1,547,187
2,500 Okeechobee Utility Authority System Revenue (MBIA Insured)............. 5.50 10-01-15 2,530,425
5,000 Port St. Lucie Utility System Revenue (FGIC Insured)................... 6.00 09-01-24 5,235,150
1,500 Titusville Water & Sewer (MBIA Insured)................................ 6.20 10-01-14 1,627,275
7,850 Vero Beach Electric Refunding (MBIA Insured)........................... 5.38 12-01-21 7,864,522
------------
71,470,501
------------
INDUSTRIAL (5.7%):
------------------------------------------------------------------------------------------------------
1,000 Canaveral Port Authority Revenue (FGIC Insured)........................ 6.00 06-01-12 1,058,900
2,500 Citrus County Capital Improvement (MBIA Insured)....................... 5.38 07-01-11 2,527,575
1,000 Collier County Capital Improvement (FGIC Insured)...................... 5.75 10-01-13 1,032,340
5,230 Dade County Pro Sports Tax Revenue Series 95 (MBIA Insured)............ 5.25 10-01-30 5,027,913
1,000 Hernando County Capital Improvement (MBIA Insured).................... 5.75 02-01-10 1,040,440
1,000 Palm Beach Solid Waste Authority Revenue (MBIA Insured)................ 6.00 12-01-07 1,078,680
2,000 Palm Beach Solid Waste Authority Revenue (MBIA Insured)................ 6.25 12-01-08 2,174,080
------------
13,939,928
------------
HEALTH CARE (12.7%):
------------------------------------------------------------------------------------------------------
2,500 Alachua County Shands Hospital Facilities (MBIA Insured)............... 5.75 12-01-15 2,544,275
1,000 Broward County Holy Cross Health (AMBAC Insured)....................... 5.25 06-01-08 1,001,420
4,000 Dade County Baptist Hospital Health Facility (MBIA Insured)............ 5.25 05-15-21 3,901,200
1,350 Dunedin Hospital Mease Health Care (MBIA Insured)...................... 5.38 11-15-13 1,349,595
3,600 Hillsborough County Hospital (FSA Insured)............................. 6.38 10-01-13 3,873,600
8,250 Orange County Orlando Medical Center (MBIA Insured).................... 5.50 11-15-15 8,279,370
5,000 Orange County Adventist Health (AMBAC Insured)......................... 5.25 11-15-20 4,884,300
2,675 South Miami Health Facility Authority Revenue (MBIA Insured)........... 5.50 10-01-20 2,680,270
2,500 Tallahassee Health Facility (MBIA Insured)............................. 6.00 12-01-15 2,616,350
------------
31,130,380
------------
EDUCATION (1.8%):
------------------------------------------------------------------------------------------------------
4,500 University of Puerto Rico Revenue Series 95M (MBIA Insured)............ 5.25 06-01-25 4,466,250
------------
CERTIFICATE OF PARTICIPATION (7.6%):
------------------------------------------------------------------------------------------------------
1,265 Collier County School Board COP (FSA Insured).......................... 5.13(d) 02-15-11 1,242,116
3,000 Collier County School District COP (FSA Insured)....................... 5.00 02-15-16 2,880,360
12,750 Palm Beach County School Board (AMBAC Insured)......................... 5.38 08-01-15 12,699,000
1,680 St. Lucie School Board COP (FSA Insured)............................... 5.38 07-01-19 1,670,458
------------
18,491,934
------------
TRANSPORTATION (7.2%):
------------------------------------------------------------------------------------------------------
2,000 Florida State Turnpike Authority (FGIC Insured)........................ 6.30 07-01-12 2,143,340
10,000 Florida Transportation Department (FGIC Insured)....................... 5.25 07-01-12 10,007,300
1,500 Lee City Airport Revenue (AMBAC Insured)............................... 5.50 10-01-10 1,516,860
4,000 Orlando Orange County Expressway (FGIC Insured)........................ 5.25 07-01-12 4,002,920
------------
17,670,420
------------
OTHER REVENUE (25.2%):
------------------------------------------------------------------------------------------------------
2,000 Collier County Capital Improvement Revenue (MBIA Insured).............. 5.75 10-01-10 2,086,980
1,340 Coral Springs Franchise Revenue (AMBAC Insured)........................ 6.10 09-01-13 1,427,341
3,000 Florida Div Board Preservation 2000 (AMBAC Insured).................... 5.75 07-01-11 3,140,760
5,800 Florida Div Board Preservation 2000 (MBIA Insured)..................... 6.25 07-01-13 6,193,240
22,000 Florida Div Board Preservation 2000 (AMBAC Insured).................... 5.75 07-01-13 22,874,940
2,260 Hillsborough County Utility Revenue (MBIA Insured)..................... 5.50 08-01-13 2,287,617
2,225 Jacksonville Capital Improvement (AMBAC Insured)....................... 5.50 10-01-19 2,232,676
2,855 Jacksonville Sales Tax Revenue (FGIC Insured).......................... 5.38 10-01-18 2,857,056
2,500 Jupiter Sales Tax Revenue (AMBAC Insured).............................. 6.38 09-01-20 2,679,575
1,000 Marion County Public Improvement Revenue (MBIA Insured)................ 6.13 12-01-08 1,073,420
1,000 Nassau County Optional Gas Tax (FGIC Insured).......................... 6.00 03-01-09 1,066,240
1,000 Ocala Optional Gas Tax Revenue (AMBAC Insured)......................... 6.00 12-01-09 1,071,130
1,000 Osceola County Celebration '94 (MBIA Insured).......................... 6.10 05-01-16 1,064,840
1,000 Osceola County Enterprise '94 (MBIA Insured)........................... 6.10 05-01-16 1,064,840
1,225 Pembroke Pines Capital Improvement Revenue (AMBAC Insured)............. 5.95 10-01-20 1,289,790
1,000 Reedy Creek Improvement District Revenue (MBIA Insured)................ 5.60 06-01-11 1,025,520
1,000 Reedy Creek Improvement District Revenue (MBIA Insured)................ 5.70 06-01-12 1,031,220
2,300 Reedy Creek Improvement District Revenue (MBIA Insured)................ 5.75 06-01-13 2,378,867
3,500 Reedy Creek Improvement District Revenue (MBIA Insured)................ 5.75 06-01-14 3,612,700
1,200 Sanford Community Redevelopment (AMBAC Insured)........................ 6.00 06-01-11 1,277,736
------------
61,736,488
------------
TOTAL INVESTMENTS IN SECURITIES (cost: $235,230,708) (c) $247,437,810
============
See accompanying notes to investments in securities.
VOYAGEUR FLORIDA LIMITED TERM TAX FREE FUND
INVESTMENTS IN SECURITIES (CONTINUED) DECEMBER 31, 1995
- -------------------------------------------------------------------------------------------------------------------
PRINCIPAL
AMOUNT COUPON MARKET
($000) NAME OF ISSUER (b) RATE MATURITY VALUE (a)
- -------------------------------------------------------------------------------------------------------------------
(PERCENTAGE OF EACH INVESTMENT CATEGORY RELATES TO TOTAL NET ASSETS.)
FLORIDA MUNICIPAL BONDS (89.6%):
ESCROWED WITH U.S. GOVERNMENT BONDS (12.0%):
------------------------------------------------------------------------------------------------------
$ 50 Boyton Beach Water & Sewer (AMBAC Insured)............................. 7.40% 11-01-00 $ 57,547
25 Dade County U of N Miami Education Facility (MBIA Insured)............. 7.10 10-01-01 28,876
25 Manatee County Water & Sewer........................................... 6.80 10-01-00 27,619
------------
114,042
------------
UTILITIES (26.7%):
------------------------------------------------------------------------------------------------------
25 East County Water (Lee County Drain Revenue)........................... 5.45 11-01-02 26,366
25 Orlando Waste Water System Revenue (AMBAC Insured)..................... 4.70 10-01-03 25,134
50 Pensacola Gas Revenue (AMBAC Insured).................................. 4.63 12-01-04 49,727
100 St. Lucie County Special Asset Revenue................................. 5.60 11-01-09 101,500
50 Tallahassee Utilities System Revenue................................... 5.50 10-01-05 52,227
------------
254,954
------------
CERTIFICATE OF PARTICIPATION (2.6%):
------------------------------------------------------------------------------------------------------
25 Volusia County School Board COP (FSA Insured).......................... 5.10 08-01-08 25,021
------------
TRANSPORTATION (8.1%):
------------------------------------------------------------------------------------------------------
25 Broward County Airport System Revenue (AMBAC Insured).................. 4.70 10-01-02 25,257
25 Orange & Orlando County Expressway (FGIC Insured)...................... 4.70 07-01-04 25,000
25 Orlando Aviation Airport Revenue (AMBAC Insured)....................... 5.90 10-01-04 27,277
------------
77,534
------------
HEALTH CARE (21.7%):
------------------------------------------------------------------------------------------------------
25 Dade County Health Facility Authority (AMBAC Insured).................. 6.10 08-15-03 27,284
50 Leesburg Regional Medical Center....................................... 5.30 07-01-03 50,058
50 Palm Beach County (Good Samaritan Health Systems)...................... 5.70 10-01-02 53,124
25 Palm Beach County (Good Samaritan Health Systems)...................... 6.00 10-01-04 27,119
50 Sarasota Health Facility Authority Revenue............................. 5.50(d) 05-15-01 49,375
------------
206,960
------------
HOUSING (2.7%):
------------------------------------------------------------------------------------------------------
25 Escambia County Housing Finance Authority.............................. 5.75 04-01-04 25,963
------------
OTHER REVENUE (15.8%):
------------------------------------------------------------------------------------------------------
25 Brevard County Sales Tax Revenue (MBIA Insured)........................ 5.20 12-01-04 25,991
100 Florida Department of General Services (MBIA Insured).................. 4.50 07-01-04 98,654
25 Orlando Capital Improvement Special Revenue............................ 5.50 10-01-04 25,812
------------
150,457
------------
TOTAL INVESTMENT IN SECURITIES (cost: $821,038) (c) $854,931
============
See accompanying notes to investments in securities.
</TABLE>
VOYAGEUR FLORIDA TAX FREE FUND
VOYAGEUR FLORIDA INSURED TAX FREE FUND
VOYAGEUR FLORIDA LIMITED TERM TAX FREE FUND
NOTES TO INVESTMENTS IN SECURITIES DECEMBER 31, 1995
- --------------------------------------------------------------------------------
(a) Securities are valued by procedures described in note 1 to the financial
statements.
(b) Investments in bonds, by rating category (unaudited) as a percentage of
total bonds, are as follows:
<TABLE>
<CAPTION>
AAA/AAA AA/AA A/A BAA/BBB NR/NR TOTAL
------- ----- --- ------- ----- -----
<S> <C> <C> <C> <C> <C> <C>
Florida Tax Free Fund................... 49% 8% 19% 18% 6% 100%
Florida Insured Tax Free Fund........... 100% -- -- -- -- 100%
Florida Limited Term Tax Free Fund...... 55% 24% 15% 6% -- 100%
</TABLE>
(c) Also represents the cost of securities for federal income tax purposes for
Florida Tax Free Fund and Florida Limited Term Tax Free Fund. At December
31, 1995 the cost of investments for federal income tax purposes was
$235,253,625 for Florida Insured Tax Free Fund. The aggregate gross
unrealized appreciation and depreciation of securities based on this cost
were as follows:
<TABLE>
<CAPTION>
GROSS GROSS NET
UNREALIZED UNREALIZED UNREALIZED
APPRECIATION DEPRECIATION APPRECIATION
------------ ------------ ------------
<S> <C> <C> <C>
Florida Tax Free Fund..................... $ 215,286 $ -- $ 215,286
Florida Insured Tax Free Fund............. 12,184,185 -- 12,184,185
Florida Limited Term Tax Free Fund........ 33,942 (49) 33,893
</TABLE>
(d) At December 31, 1995, the cost of securities purchased on a when issued
basis was $195,282 for Florida Tax Free Fund, $4,212,687 for Florida
Insured Tax Free Fund and $49,424 for Florida Limited Term Tax Free Fund.
FEDERAL INCOME TAX INFORMATION
- --------------------------------------------------------------------------------
Information for federal income tax purposes is presented as an aid to
shareholders in reporting the dividend distributions for the year ended December
31, 1995 shown below. Exempt interest dividends are exempt from federal income
tax and should not be included in shareholder's gross income, but need to be
reported on the income tax return for informational purposes. Each shareholder
should consult a tax adviser about reporting this income for state and local
purposes. In January 1996, the Fund separately provided each shareholder with
tax information for calendar year 1995.
<TABLE>
<CAPTION>
VOYAGEUR FLORIDA TAX FREE FUND
-------------------------------------------------------
PER CLASS PER CLASS PER CLASS
A SHARE B SHARE C SHARE
------- ------- -------
PERIOD FROM PERIOD FROM PERIOD FROM
MARCH 2, 1995 SEPTEMBER 15, 1995 APRIL 22, 1995
TO DECEMBER 31, TO DECEMBER 31, TO DECEMBER 31,
1995 1995 1995
--------------- ------------------ ---------------
<S> <C> <C> <C>
Net investment income distributions (none qualifying for
corporate dividend received deduction)................. $.4711 $.1467 $.3396
Short-term capital gain distribution...................... .0195 .0195 .0195
------ ------ ------
Total Distribution..................................... $.4906 $.1662 $.3591
====== ====== ======
</TABLE>
The short-term capital gain distributions above are taxable as ordinary income
to shareholders for federal and state income tax purposes.
<TABLE>
<CAPTION>
VOYAGEUR FLORIDA INSURED TAX FREE FUND
--------------------------------------
PER CLASS PER CLASS
A SHARE B SHARE
------- -------
YEAR ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31,
1995 1995
------------ ------------
<S> <C> <C>
Net investment income distributions (none qualifying for
corporate dividend received deduction)................. $.5579 $.5160
====== ======
</TABLE>
<TABLE>
<CAPTION>
VOYAGEUR FLORIDA LIMITED TERM TAX FREE FUND
----------------------------------------------------
PER CLASS PER CLASS PER CLASS
A SHARE B SHARE C SHARE
------- ------- -------
YEAR PERIOD FROM PERIOD FROM
ENDED SEPTEMBER 15, 1995 MARCH 23, 1995
DECEMBER 31, TO DECEMBER 31, TO DECEMBER 31,
1995 1995 1995
------------- ------------------ ---------------
<S> <C> <C> <C>
Net investment income distributions (none qualifying for
corporate dividend received deduction)................. $.4878 $.1116 $.2857
Long-term capital gain distribution....................... .0372 .0372 .0372
------ ------ ------
Total Distribution..................................... $.5250 $.1488 $.3229
====== ====== ======
</TABLE>
For federal income tax purposes, 100.00%, 99.83% and 100.00% of the above net
investment income distributions for Voyageur Florida Tax Free Fund, Voyageur
Florida Insured Tax Free Fund and Voyageur Florida Limited Term Tax Free Fund,
respectively, were derived from interest on securities exempt from federal
income tax.
