VOYAGEUR INVESTMENT TRUST
N-30D, 1996-08-29
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                                     [LOGO]
                                    VOYAGEUR
                     YOUR TAX SENSITIVE INVESTMENT MANAGER


                              KANSAS TAX FREE FUND

                               SEMI-ANNUAL REPORT

                               DATED JUNE 30, 1996


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 HIGH YIELD FUNDS seek high current income free from both Federal income
taxes and state income taxes (where applicable). The Funds invest in medium and
lower grade municipal bonds.

        Voyageur MINNESOTA High Yield Municipal Bond Fund

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.

<TABLE>

<S>                                                          <C>
        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

</TABLE>

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 NATIONAL 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.

<TABLE>
<S>                                                          <C>
        Voyageur AGGRESSIVE GROWTH Fund                      Voyageur GROWTH Stock Fund
        Voyageur GROWTH AND INCOME Fund                      Voyageur INTERNATIONAL Equity Fund

</TABLE>

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.

<TABLE>
<S>                                                          <C>
        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

</TABLE>

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).


LETTER FROM THE PRESIDENT

[PHOTO] JOHN G. TAFT
        PRESIDENT

Dear Shareholder:

Since our last report, the headline story in the municipal bond market has been
the demise of a radical tax reform. One of the best ways to illustrate this
demise is to look at how municipal bonds have traded in relation to Treasury
securities. At the height of the tax reform scare -- when Steve Forbes was
campaigning on his Flat Tax platform in January 1996 -- long municipal
securities were trading at a very cheap 90% of Treasuries. At the time of this
report, market fears have abated and municipal bonds are trading at a more
traditional 81%.

We believe the issue of reforming the tax code is far from thoroughly closed.
And it is likely -- in this a U.S. presidential election year -- that we may see
renewed discussions about less radical tax reforms. However, as is often the
case in the financial markets, we believe these times of short-term volatility
and uncertainty represent good opportunities for long-term investors.

At Voyageur, we continue to stress the importance of maintaining a long-term
view -- in both the investment horizons of our shareholders and in our approach
to purchasing securities for the Voyageur Tax Free Funds. In order to select the
best long-term securities for the funds, we favor purchasing negotiated new
municipal issues over those in the secondary or competitive market.

Unlike the taxable bond market where the structure of new bond issues are
frequently predetermined and fixed, we have more flexibility and negotiating
power in determining how a municipal bond issue will be structured. In many
cases, our credit research analysts -- who are experienced experts in the area
of municipal bond transactions -- work closely with municipal bond issuers to
determine the appropriate structure for new bond issues. Our analysts' intimate
knowledge of what's in the market and their ability to actually dissect
individual municipal securities helps us to determine appropriate prices that
accurately reflect an issuer's strength and value while assisting us in
protecting our shareholders' interests. They also help us pinpoint rising and
falling stars -- bonds whose credits may be upgraded or downgraded -- in the
municipal market.

We remain committed to providing our clients with the best investment products
and services available in today's financial markets. The Voyageur Tax Free Funds
allow you access to a wide variety of national and state-specific municipal
bonds funds, all of which are actively managed to meet their individual fund
objectives.

As part of our commitment to you, we have also redesigned our shareholder
reports to provide you with more in-depth information about your Voyageur fund
investments in an easier-to-read format. We welcome any comments you may have
about these changes and encourage you to call our Voyageur Shareholder Services
at 800.543.3863.

If at any time you have questions about your Voyageur fund investments, please
contact your personal financial advisor or Voyageur Shareholder Services. Our
Voyageur Shareholder Services 800 number -- known as Voyageur On Call(TM) --
allows you 24-hour access, seven days a week to an automated voice response
service with shareholder services representatives available from 8 a.m. to 5
p.m. Central Standard Time.

We appreciate your continued patronage of Voyageur Funds and look forward to
working with you and your financial advisors in creating products and services
designed to bring you closer to your investment goals.

Sincerely,


/s/ John G. Taft
John G. Taft
President
Voyageur Kansas Tax Free Fund



VOYAGEUR KANSAS TAX FREE FUND

[PHOTO] ELIZABETH H. HOWELL IS THE
        SENIOR MUNICIPAL BOND
        MANAGER FOR THE VOYAGEUR
        KANSAS TAX FREE FUND. MS.
        HOWELL HAS MORE THAN 10
        YEARS INVESTMENT INDUSTRY
        EXPERIENCE.

For the six months ended June 30, 1996, the total return at net asset value
(NAV) for the Class A shares of Voyageur Kansas Tax Free Fund was -1.49%.*
Within the Fund, we remained committed to purchasing municipal bonds with high
credit ratings, emphasizing general obligation bonds.

AREAS OF OPPORTUNITY
During the past six months, we continued to search for areas or sectors where we
could add value to the Fund. One such area has been to include investments that
have added income to the Fund. Although we still maintain our commitment to
total return, we believe addition of income will allow us to dampen the effects
of market volatility while allowing our shareholders to benefit from higher
income streams.

In order to attempt to protect our shareholders' current level of income for a
longer period of time, we also continued to take advantage of opportunities to
extend the Fund's call protection. This emphasis has led to the Fund having an
average call protection of nine years.

OUTLOOK FOR THE MUNICIPAL MARKET
The U.S. economy is still showing signs of moderate growth with moderate
inflation -- a trend we expect to see continue for the remainder of the year.
Our outlook for the municipal market continues to be favorable, and we expect
interest rates to decline over the long term. This has caused us to position the
Fund to take advantage of this trend.

*Past performance is no guarantee of future results.


<TABLE>
<CAPTION>

VOYAGEUR KANSAS TAX FREE FUND

STATEMENT OF ASSETS AND LIABILITIES (UNAUDITED)                              JUNE 30, 1996
- ------------------------------------------------------------------------------------------
<S>                                                                           <C>         
       ASSETS
Investments in securities, at market value (note 1)
   (identified cost, $11,331,010) ......................................      $ 11,640,753
Cash in bank on demand deposit .........................................           131,619
Accrued interest receivable ............................................           226,101
                                                                              ------------
   Total assets ........................................................        11,998,473
                                                                              ------------

       LIABILITIES
Dividends payable to shareholders ......................................            13,024
Payable for Fund shares redeemed .......................................            20,517
Other accrued expenses .................................................            20,652
                                                                              ------------
   Total liabilities ...................................................            54,193
                                                                              ------------
NET ASSETS APPLICABLE TO OUTSTANDING SHARES ............................      $ 11,944,280
                                                                              ============

Represented by:
   Paid-in capital (note 1) ............................................      $ 11,878,787
   Distributions in excess of net investment income ....................            (3,023)
   Accumulated net realized loss on investments ........................          (241,227)
   Unrealized appreciation of investments ..............................           309,743
                                                                              ------------

     TOTAL NET ASSETS ..................................................      $ 11,944,280
                                                                              ============

Net assets applicable to outstanding Class A shares ....................      $ 10,185,231
                                                                              ============
Net assets applicable to outstanding Class B shares ....................      $  1,716,232
                                                                              ============
Net assets applicable to outstanding Class C shares ....................      $     42,817
                                                                              ============

SHARES OUTSTANDING AND NET ASSET VALUE PER SHARE
   Class A - Shares of beneficial interest outstanding: 987,564 (note 4)      $      10.31
                                                                              ============
   Class B - Shares of beneficial interest outstanding: 166,217 (note 4)      $      10.33
                                                                              ============
   Class C - Shares of beneficial interest outstanding: 4,152 (note 4) .      $      10.31
                                                                              ============

</TABLE>

See accompanying notes to financial statements.


<TABLE>
<CAPTION>

VOYAGEUR KANSAS TAX FREE FUND

STATEMENT OF OPERATIONS (UNAUDITED)                     SIX MONTHS ENDED JUNE 30, 1996
- --------------------------------------------------------------------------------------
<S>                                                                          <C>       
Investment income:
   Interest ...........................................................      $ 327,131
                                                                             ---------

Expenses (note 3):
   Investment advisory and management fee .............................         28,829
   Dividend-disbursing, administrative and accounting services fees ...         17,214
   Printing, postage and supplies .....................................          1,366
   Audit and accounting fees ..........................................          3,761
   Legal fees .........................................................            155
   Distribution fees - Class A ........................................         12,868
   Distribution fees - Class B ........................................          6,021
   Distribution fees - Class C ........................................            180
   Directors' fees ....................................................            611
   Registration fees ..................................................            220
   Custodian fees .....................................................          8,057
   Other ..............................................................          1,581
                                                                             ---------
     Total expenses ...................................................         80,863
   Less:  Expenses waived or absorbed .................................        (38,458)
                                                                             ---------
   Net expenses before earnings credits on uninvested cash balances ...         42,405
   Less:  Earnings credits on uninvested cash balances ................         (2,613)
                                                                             ---------
     Total net expenses ...............................................         39,792
                                                                             ---------
     Investment income - net ..........................................        287,339
                                                                             ---------

Realized and unrealized gain (loss) on investments:
   Realized loss on security transactions .............................       (110,328)
   Net change in unrealized appreciation or depreciation of investments       (330,197)
                                                                             ---------
     Net loss on investments ..........................................       (440,525)
                                                                             ---------

     NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS .............      $(153,186)
                                                                             =========

</TABLE>

See accompanying notes to financial statements.


<TABLE>
<CAPTION>

VOYAGEUR KANSAS TAX FREE FUND

STATEMENTS OF CHANGES IN NET ASSETS (UNAUDITED)
- --------------------------------------------------------------------------------------------------------------------
                                                                                      SIX MONTHS            YEAR    
                                                                                         ENDED              ENDED
                                                                                     JUNE 30, 1996      DECEMBER 31,
Operations:                                                                           (UNAUDITED)           1995
                                                                                     ------------       ------------
<S>                                                                                  <C>                <C>         
   Investment income - net ....................................................      $    287,339       $    504,236
   Realized loss on investments - net .........................................          (110,328)          (130,899)
   Net change in unrealized appreciation or
     depreciation of investments ..............................................          (330,197)         1,235,987
                                                                                     ------------       ------------
       Net increase (decrease) in net assets resulting from
          operations ..........................................................          (153,186)         1,609,324
                                                                                     ------------       ------------

Distributions to shareholders from:
   Investment income - net:
     Class A ..................................................................          (265,657)          (488,511)
     Class B ..................................................................           (26,537)           (10,386)
     Class C ..................................................................              (757)              (542)
   Distributions in excess of net investment income:
     Class A ..................................................................            (3,667)              --
                                                                                     ------------       ------------
       Total distributions ....................................................          (296,618)          (499,439)
                                                                                     ------------       ------------

Share transactions (note 4): 
   Proceeds from sale of shares:
     Class A (note 3) .........................................................           805,173          3,515,631
     Class B ..................................................................         1,074,066            643,899
     Class C ..................................................................            33,650             49,366
   Netasset value of shares issued in reinvestment of net investment income and
      realized gain distributions:
       Class A ................................................................           162,952            289,383
       Class B ................................................................            14,461              4,425
       Class C ................................................................               752                445
   Payments for redemption of shares:
     Class A ..................................................................        (1,050,673)        (1,562,117)
     Class B ..................................................................           (10,110)               (52)
     Class C ..................................................................           (30,130)           (11,437)
                                                                                     ------------       ------------
   Increase in net assets from share transactions .............................         1,000,141          2,929,543
                                                                                     ------------       ------------
     Total increase in net assets .............................................           550,337          4,039,428
Net assets at beginning of period .............................................        11,393,943          7,354,515
                                                                                     ------------       ------------
Net assets at end of period (including undistributed or
   (distributions in excess of) net investment income $(3,023) and
     $6,256, respectively) ....................................................      $ 11,944,280       $ 11,393,943
                                                                                     ============       ============

</TABLE>

See accompanying notes to financial statements.


VOYAGEUR KANSAS TAX FREE FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
(1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

      Voyageur Kansas Tax Free Fund (the Fund), a series within Voyageur
Investment Trust, a Massachusetts business trust, is registered under the
Investment Company Act of 1940 (as amended) as an open-end management investment
company. The Fund is registered as a non-diversified Fund. The Fund seeks high
current income free from federal and state income taxes and local intangibles
tax by investing in investment grade municipal bonds.

      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 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 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.

      Voyageur Investment Trust has an unlimited number of authorized shares of
beneficial interest that may be issued in one or more series. Effective December
31, 1994, the Fund changed its fiscal year end from October 31 to December 31.

      The significant accounting policies followed by the Fund is 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 Fund concentrates its investments in certain geographic areas and
therefore, may have more credit risk related to the economic conditions of these
areas 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 its
income to shareholders in amounts that will avoid or minimize federal income or
excise taxes for the Fund. Net investment income and net realized gains (losses)
for the Fund may differ for financial statement and tax purposes primarily
because of losses deferred for tax purposes due to "wash sale" transactions. The
character of distributions made during the year from net investment income or
net realized gains may differ from their ultimate characterization for federal
income tax purposes. The effect on dividend distributions on certain book-to-tax
differences is reflected as excess distributions of net realized gains in the
statement of changes in net assets. Also, due to the timing of dividend
distributions, the fiscal year in which amounts are distributed may differ from
the year that the income or realized gains (losses) were recorded by the Fund.
For federal income tax purposes, the Fund has a capital loss carryover at
December 31, 1995, of $130,899 that will expire in 2003 and 2004 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.

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 $4,658,904 and $4,012,409, respectively, for
the six months ended June 30, 1996.

(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. 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 months ended June 30, 1996, Voyageur absorbed
$4,121 pursuant to the contractual 1% expense limitation and, excluding waiver
of distribution fees and expense reductions, voluntarily absorbed fees and
expenses of $25,879.

      The Fund will also pay a fee to Voyageur for acting as the Fund's
dividend-disbursing, administrative and accounting services agent. The fee is
paid monthly and is equal to the sum of $1.33 per shareholder account per month,
a fixed monthly fee ranging from $1,000 to $1,500 based on the level of the
Fund's average daily net assets and an annualized percentage of average daily
net assets at reducing rates from .11% to .02%. The Fund is also responsible for
reimbursing Voyageur's out-of-pocket expense in connection with the performance
of dividend-disbursing, administrative and accounting services.

      Each class of shares has a Distribution Agreement under Rule 12b-1 of the
Investment Company Act of 1940 with Voyageur Fund Distributors, Inc. (Fund
Distributors). Under 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 months ended
June 30, 1996, Fund Distributors voluntarily waived Class A distribution fees of
$7,067 and Class B distribution fees of $1,391. During the six months ended June
30, 1996, the Fund earned $2,613 in credits on uninvested cash balances held by
the Fund at the custodian. These credits were used to reduce certain fees for
various custodial, pricing and accounting services provided by the custodian
bank.

      Sales charges paid by Class A shareholders during the six months ended
June 30, 1996 were $32,120. Of these amounts, Fund Distributors received $4,631.

(4)   SHARE TRANSACTIONS

Transactions in shares of beneficial interest during each period were as
follows:


                                           A SHARES
                                   -----------------------
                                  SIX MONTHS        YEAR
                                     ENDED          ENDED
                                 JUNE 30, 1996   DECEMBER 31,
                                  (UNAUDITED)       1995
                                   --------       --------
Shares sold .................        77,055        344,300
Shares issued for
   reinvested distributions .        15,568         28,446
Shares redeemed .............      (100,277)      (152,018)
                                   --------       --------
Increase (decrease) in shares
   outstanding ..............        (7,654)       220,728
                                   ========       ========



<TABLE>
<CAPTION>
                                          B SHARES                        C SHARES
                               -------------------------------  -------------------------------
                                SIX MONTHS      PERIOD FROM      SIX MONTHS      PERIOD FROM
                                   ENDED     APRIL 8, 1995* TO     ENDED     APRIL 12, 1995* TO
                               JUNE 30, 1996   DECEMBER 31,     JUNE 30, 1996   DECEMBER 31,
                                (UNAUDITED)        1995         (UNAUDITED)        1995
                                 --------       --------          --------       --------
<S>                               <C>             <C>                <C>            <C>  
Shares sold ...............       102,413         62,637             3,250          4,753
Shares issued for
   reinvested distributions         1,385            424                72             43
Shares redeemed ...........          (637)            (5)           (2,862)        (1,104)
                                 --------       --------          --------       --------
Increase in shares
   outstanding ............       103,161         63,056               460          3,692
                                 ========       ========          ========       ========

</TABLE>

*  Commencement of operations.

(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>
                                                                         A SHARES
                                          -----------------------------------------------------------------------
                                                                                                     PERIOD FROM
                                            SIX MONTHS        YEAR       TWO MONTHS        YEAR      NOVEMBER 30,
                                               ENDED          ENDED         ENDED          ENDED      1992(d) TO
                                           JUNE 30, 1996  DECEMBER 31,  DECEMBER 31,    OCTOBER 31,   OCTOBER 31,
                                            (UNAUDITED)        1995           1994        1994           1993
                                          -----------------------------------------------------------------------
<S>                                            <C>            <C>            <C>         <C>            <C>   
Net asset value:
   Beginning of period...................      $10.73         $ 9.50         $9.63       $10.85         $10.00
                                               ------         ------         -----       ------         ------
Operations:
   Net investment income.................         .26            .56           .09          .57            .56
   Net realized and unrealized
     gain (loss) on investments..........        (.41)          1.22          (.13)       (1.21)           .85
                                               ------         ------         -----       ------         ------
       Total from operations.............        (.15)          1.78          (.04)        (.64)          1.41
                                               ------         ------         -----       ------         ------
Distributions to shareholders:
   From net investment income (a)........        (.27)          (.55)         (.09)        (.57)          (.56)
   From net realized gains...............          --             --            --         (.01)            --
                                               ------         ------         -----       ------         ------
     Total distributions.................        (.27)          (.55)         (.09)        (.58)          (.56)
                                               ------         ------         -----       ------         ------
Net asset value:
     End of period.......................      $10.31         $10.73         $9.50       $ 9.63         $10.85
                                               ======         ======         =====       ======         ======

Total investment return (b)..............     (1.49)%         19.13%        (.38)%      (6.10)%         14.49%
Net assets at end of period
   (000's omitted).......................     $10,185        $10,677        $7,355       $6,469         $2,057

Ratios:
   Ratio of expenses to
     average daily net assets (f)........     .66%(e)           .37%       .01%(e)         .06%            --%
   Ratio of net investment income
     to average daily net assets.........    5.06%(e)          5.32%      5.88%(e)        5.30%       5.26%(e)
       Assuming no voluntary waivers
         and reimbursements:
           Expenses (c)..................    1.25%(e)          1.11%      1.25%(e)        1.25%       1.25%(e)
           Net investment income.........    4.47%(e)          4.58%      4.64%(e)        4.11%       4.01%(e)
Portfolio turnover rate (excluding
   short-term securities)................      34.94%         19.71%           --%       38.96%         28.87%

</TABLE>

See accompanying notes to Financial Highlights.


<TABLE>
<CAPTION>
                                                        B SHARES                           C SHARES
                                              ------------------------------    ------------------------------
                                                                PERIOD FROM                       PERIOD FROM
                                               SIX MONTHS        APRIL 8,         SIX MONTHS       APRIL 12,
                                                  ENDED         1995(d) TO           ENDED        1995(d) TO
                                              JUNE 30, 1996    DECEMBER 31,     JUNE 30, 1996     DECEMBER 31,
                                               (UNAUDITED)         1995          (UNAUDITED)         1995
                                              ----------------------------------------------------------------
<S>                                              <C>              <C>              <C>              <C>   
Net asset value:
   Beginning of period.....................      $10.74           $10.19           $10.72           $10.20
                                                 ------           ------           ------           ------
Operations:
   Net investment income...................         .23              .34              .21              .32
   Net realized and unrealized
     gain (loss) on investments...........         (.40)             .54             (.40)             .51
                                                 ------           ------           ------           ------
       Total from operations..............         (.17)             .88             (.19)             .83
                                                 ------           ------           ------           ------
Distributions to shareholders:
   From net investment income (a)..........        (.24)            (.33)            (.22)            (.31)
   From net realized gains.................          --               --               --               --
                                                 ------           ------           ------           ------
     Total distributions...................        (.24)            (.33)            (.22)            (.31)
                                                 ------           ------           ------           ------
Net asset value:
     End of period.........................      $10.33           $10.74           $10.31           $10.72
                                                 ======           ======           ======           ======

Total investment return (b)................     (1.71)%            8.76%          (1.83)%            8.29%
Net assets at end of period
   (000's omitted).........................      $1,716             $677              $43              $40

Ratios:
   Ratio of expenses to
     average daily net assets (f)..........    1.32%(e)          .94%(e)         1.55%(e)         1.27%(e)
   Ratio of net investment income
     to average daily net assets...........    4.36%(e)         4.63%(e)         4.12%(e)         4.21%(e)
       Assuming no voluntary waivers
         and reimbursements:
           Expenses (c)....................    2.00%(e)         1.68%(e)         2.00%(e)         1.79%(e)
           Net investment income...........    3.68%(e)         3.89%(e)         3.67%(e)         3.69%(e)
Portfolio turnover rate (excluding
   short-term securities)..................      34.94%           19.71%           34.94%           19.71%

</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 the year ended October 31, 1994, $.01 per share of the
     distributions from net investment income was subject to state income tax
     for the Fund.
(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 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 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.
(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 Fund. Prior period expense ratios have not
     been adjusted.


<TABLE>
<CAPTION>

VOYAGEUR KANSAS TAX FREE FUND
INVESTMENTS IN SECURITIES (UNAUDITED)                                                                 JUNE 30, 1996
- -------------------------------------------------------------------------------------------------------------------
   PRINCIPAL
    AMOUNT                                                                        COUPON                   MARKET
    ($000)        NAME OF ISSUER (c)                                               RATE      MATURITY     VALUE (a)
- -------------------------------------------------------------------------------------------------------------------
             (PERCENTAGE OF EACH INVESTMENT CATEGORY RELATES TO TOTAL NET ASSETS.)
             MUNICIPAL BONDS (97.5%):
             GENERAL OBLIGATION (34.2%)
             -------------------------------------------------------------------------------------------------------
<S>          <C>                                                                  <C>       <C>           <C>      
     $240    Allen County United School District #258 (AMBAC Insured)...........   6.88%     09-01-10     $ 274,706
      300    Atchison County United School District #409 (FSA Insured)..........   5.38      09-01-15       288,021
      250    Douglas County Lawrence United School District #497................   6.00      09-01-15       253,165
      300    Jefferson County United School District #339 (MBIA Insured)........   5.50      10-01-12       296,169
      250    Jefferson County United School District #340 (FSA Insured).........   6.35      09-01-15       259,835
      750    Johnson County.....................................................   6.13      09-01-12       771,210
      250    Sedgwick County Maize United School District #266 (FSA Insured)       5.88      09-01-12       252,812
      250    Sedgwick County Renwick United School District #267
                (AMBAC Insured).................................................   6.15      11-01-09       263,913
      250    Sedgwick County United School District #265 (FSA Insured)..........   5.50      10-01-13       245,338
      130    Shawnee County United School District #437 (AMBAC Insured).........   5.25      09-01-10       126,572
      200    Shawnee County United School District #501 (FGIC Insured)..........   5.75      02-01-11       201,338
      250    Shawnee County United School District #345 (MBIA Insured)..........   5.75      09-01-11       251,985
      250    Summer County  United School District #356 (MBIA Insured)..........   5.75      09-01-11       252,175
      350    Topeka Utility Series B............................................   5.60      08-15-10       351,214
                                                                                                        -----------
                                                                                                          4,088,453
                                                                                                        -----------

             UTILITIES (34.6%):
             -------------------------------------------------------------------------------------------------------

      250    Atchison Water & Sewer Series 96A (AMBAC Insured)................     5.70      09-01-11       251,257
      270    Atchison Water & Sewer Series 96A (AMBAC Insured)................     5.80      09-01-12       272,138
      250    Haysville Water & Sewer (FSA Insured)............................     5.80      10-01-16       250,358
      175    Johnson County Water Revenue.....................................     5.25      12-01-15       163,711
      900    Kansas City Utility System Revenue (FGIC Insured)................     6.38      09-01-23       934,119
    2,500    Puerto Rico Electric Power Authority.............................     5.25      07-01-21     2,257,900
                                                                                                        -----------
                                                                                                          4,129,483
                                                                                                        -----------

             TRANSPORTATION (1.6%):
             -------------------------------------------------------------------------------------------------------

      100    Kansas Department of Transportation..............................     5.38      03-01-13        96,317
      100    Kansas Turnpike Authority (AMBAC Insured)........................     5.25      09-01-13        95,296
                                                                                                        -----------
                                                                                                            191,613
                                                                                                        -----------

             OTHER (10.1%):
             -------------------------------------------------------------------------------------------------------

    1,200    Puerto Rico Facilities...........................................     6.50      08-01-24     1,199,916
                                                                                                        -----------

             INDUSTRIAL (2.5%):
             -------------------------------------------------------------------------------------------------------

      250    Kansas Development Finance Authority Water Pollution Control.....     6.00      11-01-14       251,927
       50    Wamego Pollution Control Revenue Western Resources Inc. Project
                (MBIA Insured)................................................     6.00      02-01-33        50,145
                                                                                                        -----------
                                                                                                            302,072
                                                                                                        -----------

             HEALTH CARE (6.8%):
             -------------------------------------------------------------------------------------------------------

      250    Lawrence Memorial Hospital.......................................     6.20      07-01-19       247,553
      250    Olathe Good Samaritan Lutheran Health (AMBAC Insured)............     6.00      05-01-19       251,025
      100    Olathe Health Facility (AMBAC Insured)...........................     5.88      09-01-16        99,996
      250    Shawnee County Sister of Charity Hospital (FSA Insured)..........     5.00      12-01-23       215,662
                                                                                                        -----------
                                                                                                            814,236
                                                                                                        -----------

             HOUSING (2.6%):
             -------------------------------------------------------------------------------------------------------

       50    Martin Creek Multifamily Housing Revenue (FHA Insured)...........     6.50      08-01-24        51,217
      250    Olathe Multifamily Deerfield Apartment Series 1994A
                 (FNMA Insured)...............................................     6.45      06-01-19       256,340
                                                                                                        -----------
                                                                                                            307,357
                                                                                                        -----------

             EDUCATION (5.1%):
             -------------------------------------------------------------------------------------------------------

      300    Kansas City Community College (MBIA Insured).....................     6.25      05-15-20       306,009
      300    Kansas Development Finance Authority Wichita State University
                (AMBAC Insured)...............................................     5.88      06-01-17       301,614
                                                                                                        -----------
                                                                                                            607,623
                                                                                                        -----------

                TOTAL INVESTMENTS IN SECURITIES (cost: $11,331,010) (b)                                 $11,640,753
                                                                                                        ===========

</TABLE>


NOTES TO INVESTMENTS IN SECURITIES (UNAUDITED)

(a)  Securities are valued by procedures described in note 1 to the financial
     statements.
(b)  Also represents the cost of securities for federal income tax purposes and
     the aggregate gross unrealized appreciation and depreciation in securities
     based on these costs were as follows:

                  Gross             Gross                Net
               Unrealized        Unrealized           Unrealized
              Appreciation     (Depreciation)       Appreciation
              ------------     --------------       ------------
                $310,943          $(1,200)            $309,743

(c)  Investments in bonds, by rating category (unaudited) as a percentage of
     total bonds, are as follows:

             Aaa/AAA          Aa/AA         A/A        Baa/BBB       Total
             -------          -----         ---        -------       -----
               50%             19%          2%           29%         100%



                       INVESTMENT ADVISER, TRANSFER AGENT,
                          DIVIDEND DISBURSING AGENT AND
                            ACCOUNTING SERVICES AGENT

                          Voyageur Fund Managers, Inc.
                       90 South Seventh Street, Suite 4400
                              Minneapolis, MN 55402




                                   UNDERWRITER

                        Voyageur Fund Distributors, Inc.
                       90 South Seventh Street, Suite 4400
                              Minneapolis, MN 55402



                                    CUSTODIAN

                          Norwest Bank Minnesota, N.A.
                         Sixth Street & Marquette Avenue
                              Minneapolis, MN 55479




                                 GENERAL COUNSEL

                            Dorsey & Whitney P.L.L.P.
                              Minneapolis, MN 55402




                                    AUDITORS

                              KPMG Peat Marwick LLP
                              Minneapolis, MN 55402


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