<PAGE>
For Tax-Exempt Income
DELAWARE - VOYAGEUR
Tax-Free Florida Funds
1997
Semi-Annual
Report
professional management
service and guidance
goals
Tax-Free Florida Fund
Tax-Free Florida Insured Fund
Tax-Free Florida Intermediate Fund
DELAWARE
GROUP
- --------
<PAGE>
- --------------------------------------------------------------------------------
JULY 15, 1997
Dear Shareholder:
I AM PLEASED TO PRESENT THE FIRST SHAREHOLDER REPORT OF Delaware-Voyageur's
Tax-Free Florida Funds since the Voyageur funds joined the Delaware family on
April 30, 1997.
On behalf of all of us here in Philadelphia, I welcome you to an
organization of experienced financial professionals dedicated to helping you
reach your investment goals. Delaware has managed municipal bond investments for
more than 20 years and pioneered the concept of single-state, tax-exempt funds.
Since May, the Florida Funds have been co-managed by Patrick P. Coyne
and Mitchell L. Conery, two veteran portfolio managers with a thorough
understanding of the dynamics of the state's bond market. Florida securities
make up a substantial portion of Delaware's national tax-free funds, which the
two men jointly manage.
I am delighted to report that during this transition period, each
Florida Fund outperformed its unmanaged benchmark, as shown on page 3.
We view the municipal bond market's long-term prospects as very
attractive, particularly in a state with an economy as robust as Florida's.
Municipal bond prices have generally been stronger than U.S. Treasuries* during
1997, despite federal tax changes in Washington and a modest tightening of
monetary policy by the Federal Reserve Board.
IN THE COMING YEARS, WE BELIEVE IT WILL BECOME MORE IMPORTANT THAN EVER TO
CONSIDER THE IMPACT OF TAXES ON THE PERFORMANCE OF AN INVESTMENT PORTFOLIO.
As our nation's leaders grapple with tax issues and states take on a
greater fiscal responsibility for managing social and public works programs, we
believe it will become more important than ever to consider the impact of taxes
on the performance of an investment portfolio.
*The principal and interest of U.S. Treasury securities are guaranteed by the
U.S. government. Florida municipal bonds may or may not be guaranteed by the
state, a private insurer or local government entity.
2
1997 semi-annual report
<PAGE>
When Delaware offered its first municipal bond fund in 1977, federal
taxpayers were able to take many more deductions on their tax returns than they
can take today. Among these were:
* interest on student and consumer loans,
* more extensive job-related moving expenses,
* sales and gasoline taxes; and
* a portion of dividend income.
In our opinion, the income from municipal bonds and the tax-free
compounding of such income over time has the potential to help heavily taxed
investors reach their financial goals more quickly. In addition to providing
income free from federal taxes for most taxpayers, Florida securities have the
added benefit of being exempt from the state's asset-based tax on investments.
On the pages that follow, Mr. Coyne and Mr. Conery review each Fund's
performance and outline their approach for the coming months. We look forward to
reporting to you again in 1998 and serving your needs for many years to come.
Sincerely,
/s/ Wayne A. Stork
- ------------------
Wayne A. Stork
Chairman, President and Chief Executive Officer
COMPARATIVE RETURNS FOR THE SIX MONTHS ENDED JUNE 30, 1997*
- ------------------------------------------------------------------------------
Tax-Free Florida Fund A................................. +4.00%
Lehman Brothers Municipal Bond Index.................... +3.20%
Tax-Free Florida Insured Fund A......................... +3.41%
Tax-Free Florida Intermediate Fund A.................... +2.74%
Merrill Lynch Three-To-Seven Year Municipal Bond Index.. +2.48%
*Total return is based on change in net asset value with distributions
reinvested. Past performance does not guarantee future results. Performance of
other Fund classes varies due to different charges and expenses. See Page 8 for
performance information for all Fund classes. See pages 19, 21 and 23 for
six-month returns for B and C classes. The indexes shown above are unmanaged,
contain tax-exempt bonds from many states and assume no management fees or
expenses.
1997 semi-annual report 3
<PAGE>
Introducing Your Fund's Portfolio Managers
Patrick P. Coyne has managed fixed-income securities at Delaware since 1990. He
holds an MBA in finance from the University of Pennsylvania's Wharton School of
Business and an undergraduate degree in European history and classics from
Harvard University.
[Picture] PATRICK P. COYNE
Mitchell L. Conery joined Delaware on January 2, 1997. He had been managing a $5
billion municipal bond portfolio for a major financial services firm in New York
City. Mr. Conery holds an MBA from the State University of New York at Albany.
He holds a bachelor's degree in economics and mathematics from Boston
University.
[Picture] MITCHELL L. CONERY
Performance Review
Delaware-Voyageur's Florida municipal bond funds provided relatively
attractive total returns during the first half of fiscal 1997 despite
substantial interest rate volatility and renewed efforts in Washington to cut
income taxes.
On page 3, you can see that each Fund outperformed a broad unmanaged
benchmark of the municipal bond market amid a period of leadership transition.
As you know, Delaware Management Company acquired Voyageur's retail mutual fund
business in April.
As the Funds' prior manager did, we'll be using Lehman Brothers indexes
as our benchmark for the Tax-Free Florida and Tax-Free Florida Insured Funds.
For the Tax-Free Florida Intermediate Fund, we'll be using the Merrill Lynch
Three-to-Seven-Year Municipal Bond Index because we
4
1997 semi-annual report
<PAGE>
believe the index' average effective maturity reflects the Intermediate Fund's
(formerly Florida Limited-Term Tax-Free) investment strategy more closely than
the Lehman Five-Year Municipal Bond Index.
Of the three Funds, Tax-Free Florida Insured was by far the largest in
terms of assets as of June 30. In part this reflects the fact that more than 70%
of municipal bonds issued in Florida are protected by private insurance
guaranteeing the payment of principal and interest when due.
Since December, the supply of new municipal bonds in Florida has grown
by a modest 6.8% annualized pace to $4.9 billion, according to THE BOND BUYER, a
trade publication. Meanwhile, the Sunshine State's diverse economy remained by
many accounts one of the nation's most dynamic.
With a 1996 population just over 13 million and a per capita income that
grew at an above-average annualized rate of 4.8%, Florida exhibited
characteristics attractive to income-oriented investors. Florida's growth and
demographic makeup have generated a substantial need for public financing for
health care. This sector represented the largest portion of Tax-Free Insured
Fund's portfolio as of June 30.
Florida has no state income tax, so one of the primary advantages of
owning Florida municipal securities is that income is exempt from
TAX-FREE FLORIDA INSURED FUND
PORTFOLIO HIGHLIGHTS AND ASSET ALLOCATION
- --------------------------------------------------------------------------------
JUNE 30, 1997
General Obligation 3.9%
Certificates of Participation 5.7%
Hospitals 20.5%
Other Revenue Bonds 21.8%
Housing 17.6%
Cash 0.8%
Utilities 7.1%
Industrial Development 1.7%
Water/Sewer 9.9%
Transportation 4.0%
Inverse Floaters* 7.0%
*A variable rate municipal security whose value is derived from other municipal
bonds. Approximately 22.4% of the income generated by Tax-Free Florida Insured
Fund for the six months ended June 30, 1997, was subject to the alternative
minimum tax.
Tax-Free Florida
Insured Fund
- -------------------------------------------------------------------------------
Average Effective Maturity 12.6 years
Average Effective Duration 8.0 years
Average Quality AA+
Thirty-Day Current SEC Yield* 4.80%
* For Class A Shares based on securities and Exchange Commission guidelines.
The SEC yield for B class was 4.36% for Tax-Free Florida Insured Fund.
1997 semi-annual report 5
<PAGE>
federal income taxes. For most taxpayers an additional benefit is that Florida
bonds are exempt from the state's intangibles (personal property) tax on assets.
When the bond market weakened in April, the Funds' management saw an
opportunity to modestly extend Tax-Free Florida's and Tax-Free Florida Insured's
duration to increase income potential. Between December 31, 1996 and June 30,
yields on Florida general obligation bonds increased modestly for intermediate-
term bonds and moved modestly lower for both the very long-term bonds and for
securities maturing in less than one year, as shown in the yield chart on page
7.
In fiscal 1997, the Florida Funds benefited by generally minimizing our
exposure to certain areas of South Florida such as Miami, where credit quality
remains a concern. We were also underweighted in the electric utility sector,
particularly cogeneration plants. Increased industry competition and legal
issues have made it difficult for some alternative power producers to be
profitable, increasing the sector's credit risks.
TAX-FREE FLORIDA FUND
PORTFOLIO HIGHLIGHTS AND ASSET ALLOCATION
- -------------------------------------------------------------------------------
JUNE 30, 1997
Waste Disposal 6.6%
Housing 23.1%
Higher Education 5.3%
Hospitals 18.1%
Industrial Development 4.6%
Transportation 5.4%
Utilities 1.9%
Other Revenue Bonds 11.8%
Pollution Control 1.4%
Water/Sewer 8.8%
Cash 4.1%
Nursing Homes 13.6%
Approximately 6.6% of the income generated by Tax-Free Florida Fund for the
six months ended June 30, 1997, was subject to the alternative minimum tax.
Tax-Free Florida
Tax-Free Intermediate
Florida Fund Fund
- -------------------------------------------------------------------------------
Average Effective Maturity 12.0 years 6.5 years
Average Effective Duration 6.9 years 5.0 years
Average Quality AA AA
Thirty-Day Current SEC Yield* 5.43% 4.16%
*For B and C Class shares, SEC yields were 5.23% and 4.88% for Tax-Free Florida
Fund and 3.54% and 3.44% for Tax-Free Intermediate Fund as of July 31, 1997.
6 1997 semi-annual report
<PAGE>
OUTLOOK
We are optimistic that investor demand for Florida bonds could increase in the
coming months among high tax bracket investors. One reason: regulators in
Tallahassee are more vigorously enforcing compliance with the state's
intangibles tax on bonds and stocks. In our opinion, that could prompt some
investors to switch assets from corporate bonds and mortgage-backed securities
(which are both subject to the state intangibles tax) to Florida securities,
which are generally exempt.
In Florida and across the U.S., inflation appears to be benign. Despite
a strong U.S. economy, the Federal Reserve Board has been able to effectively
use monetary policy to control consumer price increases. Should interest rates
remain stable or decline for the balance of 1997, municipal bond investments
could potentially provide an attractive real rate of return.
In our opinion, the long-term outlook for Florida's economy and bond
market is bright. Municipalities will continue to need capital from private
investors to meet the needs of a growing population in the nation's fourth
largest state, presenting many income opportunities.
PATRICK P. COYNE
Vice President
Senior Portfolio Manager
MITCHELL L. CONERY
Vice President
Senior Portfolio Manager
July 15, 1997
outlook
LONG-TERM FLORIDA BOND PRICES
HAVE RISEN MODESTLY, SLIGHTLY REDUCING YIELDS
DECEMBER 31, 1996, VS. JUNE 30, 1997
Yield Yield
Maturity December 31, 1996 June 30, 1997
3 months 3.31% 3.33%
6 months 3.51% 3.48%
1 year 3.68% 3.76%
2 years 3.93% 4.06%
3 years 4.13% 4.26%
4 years 4.28% 4.41%
5 years 4.38% 4.51%
7 years 4.58% 4.67%
10 years 4.88% 4.91%
15 yrs 5.30% 5.27%
20 yrs 5.46% 5.41%
30 yrs 5.52% 5.46%
Source: Bloomberg Business News
1997 semi-annual report 7
<PAGE>
Performance Summary
TAX-FREE FLORIDA FUND
- --------------------------------------------------------------------------------
AVERAGE ANNUAL RETURN THROUGH JUNE 30, 1997
LIFETIME ONE YEAR
- --------------------------------------------------------------------------------
Class A (Est. 3/2/95)
Excluding Sales Charge +8.66% +9.75%
Including Sales Charge +6.89% +5.63%
- --------------------------------------------------------------------------------
Class B (Est. 4/15/95)
Excluding Sales Charge +6.95% +9.33%
Including Sales Charge +4.82% +5.33%
- --------------------------------------------------------------------------------
Class C (Est. 4/22/95)
Excluding Sales Charge +7.07% +8.94%
Including Sales Charge +7.07% +7.94%
TAX-FREE FLORIDA INSURED FUND
- --------------------------------------------------------------------------------
AVERAGE ANNUAL RETURN THROUGH JUNE 30, 1997
LIFETIME FIVE YEARS ONE YEAR
- --------------------------------------------------------------------------------
Class A (Est. 1/1/92)
Excluding Sales Charge +7.36% +7.00% +8.85%
Including Sales Charge +6.62% +6.18% +4.73%
- --------------------------------------------------------------------------------
Class B (Est. 3/11/94)
Excluding Sales Charge +5.39% +8.20%
Including Sales Charge +3.39% +4.20%
TAX-FREE FLORIDA INTERMEDIATE FUND
- --------------------------------------------------------------------------------
AVERAGE ANNUAL RETURN THROUGH JUNE 30, 1997
LIFETIME ONE YEAR
- --------------------------------------------------------------------------------
Class A (Est. 5/1/94)
Excluding Sales Charge +6.02% +6.20%
Including Sales Charge +5.10% +3.30%
- --------------------------------------------------------------------------------
Class B (Est. 4/15/95)
Excluding Sales Charge +3.45% +5.39%
Including Sales Charge +2.37% +3.39%
- --------------------------------------------------------------------------------
Class C (Est. 3/23/95)
Excluding Sales Charge +5.54% +5.17%
Including Sales Charge +5.54% +4.17%
All performance includes reinvestment of distributions and applicable sales
charges as described below. Return and share value will fluctuate so that shares
when redeemed may be worth more or less than the original cost. Past performance
is not a guarantee of future results. Performance for Class B and C shares
"excluding sales charge" assumes the investment was not redeemed. Returns
reflect a voluntary expense limitation in effect at the time. Returns would have
been lower without the limitation.
Class A shares of tax-free Florida and tax-free Florida insured have a 3.75%
maximum front-end sales charge while Class A shares of tax-free Florida
intermediate fund have a 2.75% maximum front-end sales charge. All three funds
have a 12b-1 fee.
Class B shares do not carry a front-end sales charge, but are subject to a 1%
annual distribution and service fee. They are also subject to a deferred sales
charge of up to 4% if redeemed before the end of the sixth year for tax-free
Florida and tax-free Florida insured and up to 2% if redeemed before the end of
the third year for tax-free Florida intermediate fund.
Class C shares have a 1% annual distribution and service fee. If shares are
redeemed within 12 months, a 1% contingent deferred sales charge applies.
8
1997 semi-annual report
<PAGE>
Financial Statements
DELAWARE-VOYAGEUR TAX-FREE FLORIDA FUND
STATEMENT OF NET ASSETS
JUNE 30, 1997
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
---------------------------------
<S> <C> <C>
MUNICIPAL BONDS -- 95.98%
CONTINUING CARE/RETIREMENT
REVENUE BONDS - 13.56%
Jacksonville Health Facilities Authority-Cypress
Village Project National Benevolent Association-
Series A 6.125% 12/01/16............................... $200,000 $ 200,882
Palm Beach Health Facilities Authority-Adult
Community Services Inc.
5.625% 11/15/20........................................ 250,000 246,622
Volusia County Health Facilities Authority,
John Knox Village-Series A
6.000% 06/01/17........................................ 250,000 257,450
Volusia Industrial Development Authority-Bishops
Glen Project/Holy Hill RHF Housing Inc.
7.500% 11/01/16........................................ 330,000 333,709
---------
1,038,663
---------
HIGHER EDUCATION REVENUE BONDS - 5.29%
Pinellas County Educational Facilities Authority
Clearwater Christian College (Private Placement)
8.000% 02/01/11........................................ 400,000 405,360
---------
405,360
---------
HOSPITAL REVENUE BONDS - 18.06%
Hillsborough County Tampa General Hospital
6.375% 10/01/13........................................ 100,000 106,660
Lee County Hospital Board-Lee Memorial Hospital
(MBIA) 6.350% 03/26/20................................. 500,000 529,060
Leesburg Regional Medical Center Project
6.125% 07/01/12........................................ 100,000 103,280
North Miami Health Facilities Authority-Catholic
Health Services LOC Suntrust Bank-Miami
6.000% 08/15/16........................................ 500,000 509,300
Palm Beach County Health Facilities Authority-
Good Samaritan Health System
6.300% 10/01/22........................................ 130,000 135,060
---------
1,383,360
---------
HOUSING REVENUE BONDS - 23.14%
Blackwater Housing Corporation-Series A
6.500% 06/01/25......................................... 250,000 254,527
Dade County Housing Finance Authority, Lincoln Fields
Apartments Section 8- FHA (MBIA)
6.250% 07/01/24........................................ 500,000 510,765
Duval Housing Finance Authority, St. Augustine
Apartments 6.000% 03/01/21............................. 300,000 302,319
Florida Housing Finance Agency-The Vineyards
Project-Series H 6.400% 11/01/15....................... 500,000 500,315
Florida Housing Finance Agency-Homeowner Mortgage-
Series 1B (FHA/VA) 6.000% 07/01/17..................... 200,000 203,740
---------
1,771,666
---------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
---------------------------------
<S> <C> <C>
MUNICIPAL BONDS (CONTINUED)
POLLUTION CONTROL REVENUE BONDS - 1.42%
Martin County Pollution Control-Florida Power & Light
Company Project (MBIA) 7.300% 07/01/20..................... $100,000 $ 109,012
---------
109,012
---------
TRANSPORTATION REVENUE BONDS - 5.41%
Florida State Mid-Bay Bridge Authority-Series D
6.125% 10/01/22............................................ 160,000 161,890
Orlando & Orange County Expressway
Authority 5.950% 07/01/23.................................. 250,000 252,125
---------
414,015
---------
UTILITY REVENUE BONDS - 1.90%
Puerto Rico Electric Power Authority Series X
5.500% 07/01/25............................................ 150,000 145,216
---------
145,216
---------
WASTE DISPOSAL REVENUE BONDS - 6.55%
Jacksonville Sewer & Solid Waste Disposal
Facilities Authority-Anheuser Busch Project
AMT 5.875% 02/01/36........................................ 150,000 150,400
Polk County Industrial Development Authority Solid
Waste Disposal-Tampa Electric Company Project
AMT 5.850% 12/01/30........................................ 350,000 351,425
---------
501,825
---------
WATER AND SEWER REVENUE BONDS - 8.82%
Key West Sewer 5.700% 10/01/26............................. 100,000 99,989
Miramar Wastewater Improvement (FGIC)
6.750% 10/01/25............................................ 100,000 110,063
Northern Palm Beach County Improvement District
Special Assessment-Abacoa Water Control (FGIC)
7.200% 08/01/16............................................ 300,000 312,288
St Lucie County Special Assessment
South Hutchinson Island (Asset Guaranty)
6.100% 11/01/20............................................ 150,000 152,978
---------
675,318
---------
OTHER REVENUE BONDS - 11.83%
Dade County Special Obligation-Series B (AMBAC)
5.000% 10/01/35............................................ 200,000 182,312
Lake Bernadette Community Development District
Special Assessment-Series A
8.000% 05/01/17............................................ 250,000 256,628
Miami Parking Facility 5.700% 10/01/09..................... 205,000 211,738
Tampa Palms Community Development District
Richmond Place Project 7.500% 05/01/18..................... 250,000 254,970
---------
905,648
---------
Total Municipal Bonds (cost $7,147,057).................... 7,350,083
---------
</TABLE>
1997 semi-annual report 9
<PAGE>
DELAWARE-VOYAGEUR TAX-FREE FLORIDA FUND
STATEMENT OF NET ASSETS (Continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
-----------------------------
<S> <C> <C>
SHORT TERM INVESTMENTS - 1.96%
Norwest Advantage Municipal
Money Market Fund.......................................... $150,256 $ 150,256
Total Short Term Investments ----------
(cost $150,256)............................................ 150,256
----------
TOTAL MARKET VALUE OF SECURITIES OWNED - 97.94%
(cost $7,297,313)*......................................... $7,500,339
RECEIVABLES AND OTHER ASSETS NET OF
LIABLITIES - 2.06%. ....................................... 157,836
NET ASSESTS APPLICABLE TO 720,488 SHARES ----------
($.01 PAR VALUE) OUTSTANDING - 100.00%..................... $7,658,175
==========
NET ASSET VALUE - TAX FREE FLORIDA A CLASS
($5,706,727/536,981 shares)................................ $10.63
NET ASSET VALUE - TAX FREE FLORIDA B CLASS ==========
($1,892,919/178,000 shares)................................ $10.63
NET ASSET VALUE - TAX FREE FLORIDA C CLASS ==========
($58,529/5,507 shares)..................................... $10.63
- -------------------------- ==========
*Also cost for federal tax purposes.
FGIC - Insured by the Financial Guaranty Insurance Company
FHA - Insured by the Federal Housing Authority
FSA - Insured by the Financial Security Assurance
MBIA - Insured by the Municipal Bond Insurance Association
COMPONENTS OF NET ASSETS AT JUNE 30, 1997
Common Stock, $.01 par value, unlimited shares authorized
to the Tax-Free Florida Fund............................... $7,452,148
Accumulated overdistributed net investment income.......... (2,335)
Accumulated net realized gain on investments............... 5,336
Net unrealized appreciation of investments................. 203,026
----------
Total net assets........................................... $7,658,175
==========
</TABLE>
<PAGE>
DELAWARE-VOYAGEUR TAX-FREE
FLORIDA INSURED FUND
STATEMENT OF NET ASSETS
JUNE 30, 1997
(UNAUDITED)
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
-----------------------------
MUNICIPAL BONDS - 99.14%
CERTIFICATES OF PARTICIPATION - 5.73%
<S> <C> <C>
Brevard County School Board (AMBAC)
5.50% 07/01/21............................................. $4,000,000 $3,947,520
Manatee County School Board (MBIA)
6.125% 07/01/16............................................ 2,000,000 2,090,340
Orange County School Board - Series A
(MBIA) 5.375% 08/01/22..................................... 4,000,000 3,879,280
---------
9,917,140
GENERAL OBLIGATION BONDS - 3.90% ---------
Coral Springs Improvement District Water and Sewer
(MBIA) 6.00% 06/01/10...................................... 1,000,000 1,069,630
Florida Board of Education Series F (FSA)
6.10% 06/01/24............................................. 5,500,000 5,678,805
---------
6,748,435
HOSPITAL REVENUE BONDS - 20.49% ---------
Alachua County Health Facilities Shands Teaching
Hospital-Series A(MBIA) 5.80% 12/01/....................... 265,000,000 5,078,950
Hillsborough County-Tampa General Hospital
(FSA) 6.375% 10/01/13...................................... 3,600,000 3,839,760
Indian River County Hospital District
(FSA) 6.10% 10/01/18....................................... 3,000,000 3,166,740
Lee County Hospital Board-Lee Memorial Hospital
(MBIA) 6.35% 03/26/20...................................... 10,000,000 $10,581,200
North Broward Hospital District (MBIA)
5.375% 01/15/24. .......................................... 1,500,000 1,445,595
Orange County Health Facilities Authority Adventist
Health System (AMBAC) 5.25% 11/15/20....................... 5,225,000 5,007,588
Tallahassee Health Facilities-Tallahassee
Memorial Regional Medical Center Series B(MBIA)
6.00% 12/01/15............................................. 2,500,000 2,562,875
Venice Health Care Bon Secours Health System
(MBIA) 5.60% 08/15/16...................................... 3,750,000 3,758,963
----------
35,441,671
HOUSING REVENUE BONDS- 17.56% ----------
Florida Housing Finance Agency Riverfront
Apartments Section 8-Series A AMT (AMBAC)
6.25% 04/01/37............................................. 1,000,000 1,019,890
Florida Housing Finance Agency Mariner Club
Apartments-Series K-1 AMT (AMBAC)
6.25% 09/01/26. ........................................... 2,000,000 2,071,320
Florida Housing Finance Agency Mariner Club
Apartments-Series K-1 AMT (AMBAC)
6.375% 09/01/36............................................ 3,500,000 3,645,775
Florida State Housing Finance Agency Crossings
Indian Run Apartments HUD-Series V AMT Letter of
Credit First Union National Bank of North Carolina
(AMBAC) 6.10% 12/01/26. ................................... 750,000 758,550
</TABLE>
10
1997 semi-annual report
<PAGE>
DELAWARE-VOYAGEUR TAX-FREE FLORIDA INSURED FUND
STATEMENT OF NET ASSETS (Continued)
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
-----------------------------
<S> <C> <C>
MUNICIPAL BONDS (CONTINUED)
HOUSING REVENUE BONDS (CONTINUED)
Florida State Housing Finance Agency Crossings Indian
Run Apartments HUD-Series V AMT Letter of Credit
First Union National Bank of North Carolina
(AMBAC)6.20% 12/01/36..................................... $1,790,000 $1,817,673
Florida State Housing Finance Agency Sterling Palms
Apartments Series D-1 AMT Letter of Credit First Union
National Bank of North Carolina (AMBAC)
6.30% 12/01/16............................................ 1,000,000 1,039,120
Florida State Housing Finance Agency Sterling Palms
Apartments Series D-1 AMT Letter of Credit First Union
National Bank of North Carolina (AMBAC)
6.40% 12/01/26............................................ 1,500,000 1,552,290
Florida State Housing Finance Agency Sterling
Palms Apartments Series D-1 AMT Letter of Credit First
Union National Bank of North Carolina (AMBAC)
6.50% 06/01/36............................................ 6,540,000 6,793,294
Florida State Housing Finance Agency Woodbridge
Apartments Series L AMT Letter of Credit First Union
National Bank of North Carolina (AMBAC)
6.15% 12/01/26............................................ 1,750,000 1,777,125
Florida State Housing Finance Agency Woodbridge
Apartments Series L AMT Letter of Credit First Union
National Bank of North Carolina (AMBAC)
6.25% 06/01/36............................................ 2,000,000 2,039,080
Florida State Housing Finance Agency Leigh Meadows
Apartments Section 8 Series N AMT Letter of Credit
First Union National Bank of North Carolina (AMBAC)
6.20% 09/01/26............................................ 2,765,000 2,818,254
Florida State Housing Finance Agency Leigh Meadows
Apartments Section 8 Series N AMT Letter of Credit
First Union National Bank of North Carolina (AMBAC)
6.30% 09/01/36............................................ 2,000,000 2,046,460
Florida State Housing Finance Agency Landings At Sea
Forest Apartments FHA- Series T AMT Letter of Credit
First Union National Bank of North Carolina (AMBAC)
5.85% 12/01/18............................................ 500,000 501,620
Florida State Housing Finance Agency Landings At Sea
Forest Apartments FHA- Series T AMT Letter of Credit
First Union National Bank of North Carolina (AMBAC)
6.05% 12/01/36............................................ 700,000 710,906
Florida State Housing Finance Agency- Spinnaker Cove
Apartments FHA- Series G AMT Letter of Credit First
Union National Bank of North Carolina (AMBAC)
6.50% 07/01/36............................................ 500,000 519,500
Pembroke Pines Capital Improvement (AMBAC)
5.95% 10/01/20............................................ 1,225,000 1,260,819
----------
30,371,676
INDUSTRIAL DEVELOPMENT ----------
REVENUE BONDS - 1.67%
Lee County IDA Bonita Springs Utilities Project AMT
(MBIA) 5.75% 11/01/10..................................... 1,480,000 1,527,567
Lee County IDA Bonita Springs Utilities Project AMT
(MBIA) 5.80% 11/01/11..................................... 1,325,000 1,366,420
----------
2,893,987
----------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
-----------------------------
<S> <C> <C>
MUNICIPAL BONDS (CONTINUED)
INVERSE FLOATERS - 6.98%
Florida State Turnpike Authority, Inverse Floating
Certificate (FGIC) 6.67% 07/01/12......................... $5,000,000 $4,894,100
Palm Beach County School Board, Inverse Floating
Certificate (AMBAC) 6.92% 08/01/15........................ 5,875,000 5,727,949
Orlando & Orange County Expressway, Inverse
Floating Certificate (AMBAC)
5.87% 07/01/12............................................ 1,500,000 1,458,915
----------
12,080,964
TRANSPORTATION REVENUE BONDS - 3.96% ----------
Canaveral Port Authority (FGIC)
6.00% 06/01/12............................................ 1,000,000 1,040,590
Florida Ports Financing Commission State
Transportation Trust Fund - AMT (MBIA)
5.375% 06/01/27........................................... 3,880,000 3,689,065
Florida State Turnpike Authority
Series A (FGIC) 6.30% 07/01/12............................ 2,000,000 2,112,040
----------
6,841,695
UTILITY REVENUE BONDS - 7.11% ----------
Lakeland Electric and Water Junior Subordinate
Lien (FGIC) 6.00% 10/01/14................................ 1,000,000 1,079,570
New Smyrna Beach Utilities Commission (FGIC)
6.00% 10/01/13............................................ 1,000,000 1,044,000
Port St Lucie Utilities System (FGIC)
6.00% 09/01/24............................................ 5,000,000 5,139,900
Sunrise Utilities System Series A (AMBAC)
5.75% 10/01/26............................................ 5,000,000 5,041,850
----------
12,305,320
----------
WATER AND SEWER REVENUE BONDS - 9.89%
Callaway/ Bay County Wastewater System-
Series A (FGIC) 6.00% 09/01/26............................ 1,000,000 1,032,770
Coral Springs Water and Sewer-Series A
(FGIC) 6.00% 09/01/10..................................... 1,000,000 1,050,890
Dade County Water & Sewer (FGIC)
5.75% 10/01/22............................................ 1,750,000 1,770,072
Jupiter Water-Series A (AMBAC)
6.25% 10/01/12............................................ 2,000,000 2,119,680
Miramar Wastewater Improvement
Assessment (FGIC) 6.75% 10/01/25.......................... 2,425,000 2,669,028
North Port Utilities System (FGIC)
6.15% 10/01/09............................................ 1,500,000 1,606,755
North Port Utilities System (FGIC)
6.25% 10/01/22............................................ 5,000,000 5,254,550
Titusville Water & Sewer (MBIA)
6.20% 10/01/14............................................ 1,500,000 1,599,765
----------
17,103,510
OTHER REVENUE BONDS - 21.85% ----------
Collier County Capital Improvement Sales Tax
(MBIA) 5.75% 10/01/10..................................... 2,000,000 2,073,800
Collier County Capital Improvement Sales Tax (FGIC)
5.75% 10/01/13............................................ 1,000,000 1,015,270
Coral Springs Franchise (AMBAC)
6.10% 09/01/13............................................ 1,340,000 1,406,330
</TABLE>
1997 semi-annual report 11
<PAGE>
DELAWARE-VOYAGEUR TAX-FREE FLORIDA INSURED FUND
STATEMENT OF NET ASSETS (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
-----------------------------
<S> <C> <C>
MUNICIPAL BONDS (CONTINUED)
OTHER REVENUE BONDS (CONTINUED)
Hernando County Capital Improvement
Sales Tax (MBIA) 5.75% 02/01/10.......................... $ 1,000,000 $ 1,034,670
Dade County Special Obligation-Series B (AMBAC)
5.00% 10/01/35........................................... 4,000,000 3,646,240
Florida State Division Board Of Finance Department
of General Services Department of Environmental
Resources-Preservation 2000-Series A (AMBAC)
5.75% 07/01/13........................................... 10,000,000 10,289,700
Florida State Division Board Of Finance Department of
General Services Department of Natural Resources
Preservation 2000-Series A (MBIA)
6.25% 07/01/13........................................... 5,800,000 6,128,048
Jupiter Sales Tax (AMBAC)
6.375% 09/01/20.......................................... 2,500,000 2,636,775
Marion County Public Improvement
Sales Tax (MBIA) 6.125% 12/01/08......................... 1,000,000 1,069,930
Miami Special Obligation-Administration Building
Acquisition Project (FGIC) 6.00% 02/01/16................ 1,000,000 1,042,950
Nassau County Optional Gas Tax - Fuel Sales Tax
(FGIC) 6.00% 03/01/09.................................... 1,000,000 1,056,560
Ocala Optional Gas Tax-Fuel Sales Tax
(AMBAC) 6.00% 12/01/09................................... 1,000,000 1,055,540
Osceola County-Celebration Community
Development District-Special Assessment
(MBIA) 6.10% 05/01/16.................................... 1,000,000 1,041,520
Osceola County Enterprise Community Development
District-Special Assessment
(MBIA) 6.10% 05/01/16.................................... 1,000,000 1,044,110
Palm Beach Solid Waste Authority (MBIA)
6.00% 12/01/07........................................... 1,000,000 1,075,480
Palm Beach Solid Waste Authority (MBIA)
6.25% 12/01/08........................................... 2,000,000 2,164,600
-----------
37,781,523
-----------
Total Municipal Bonds (cost $164,016,284)................ 171,485,921
-----------
</TABLE>
MARKET
VALUE
-------------
TOTAL MARKET VALUE OF SECURITIES OWNED - 99.14%
(cost $164,016,284)*.............................. $171,485,921
RECEIVABLES AND OTHER ASSETS NET OF
LIABLITIES - 0.86%................................ 1,492,697
NET ASSESTS APPLICABLE TO 16,033,946 SHARES -------------
($.01 PAR VALUE) OUTSTANDING - 100.00%............ $172,978,618
=============
NET ASSET VALUE - TAX FREE FLORIDA INSURED A CLASS
($169,155,168 / 15,679,418 shares)................ $10.79
NET ASSET VALUE - TAX FREE FLORIDA INSURED B CLASS ======
($3,823,450 / 354,528 shares)..................... $10.78
======
___________________________
*Also cost for federal tax purposes.
AMBAC- Insured by the AMBAC Indemnity Corporation
FGIC- Insured by the Financial Guaranty Insurance Company
FSA -Insured by the Financial Security Assurance
MBIA - Insured by the Municipal Bond Insurance Association
___________________________
COMPONENTS OF NET ASSETS AT JUNE 30, 1997
Common Stock, $.01 par value, unlimited shares
authorized to the Tax-Free Florida Insured Fund... $178,016,180
Accumulated undistributed net investment income... 27,478
Accumulated net realized loss on investments...... (12,534,677)
Net unrealized appreciation of investments........ 7,469,637
------------
Total net assets.................................. $172,978,618
============
12
1997 semi-annual report
<PAGE>
DELAWARE-VOYAGEUR TAX-FREE
FLORIDA INTERMEDIATE FUND
STATEMENT OF NET ASSETS
JUNE 30, 1997
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
-----------------------------
<S> <C> <C>
MUNICIPAL BONDS - 93.69%
CERTIFICATES OF PARTICIPATION - 5.98%
Volusia County School Board (FSA)
10.00% 08/01/00...................................... $200,000 $230,900
---------
230,900
CONTINUING CARE/RETIREMENT - 9.17% ---------
Jacksonville Health Facilities Authority,
National Benevolent Association Cypress Village Project-
Series A 6.00% 12/01/09............................... 100,000 101,729
Sarasota Health Facilities Authority-Sunnyside
Properties 5.50% 05/15/01............................. 50,000 50,673
Sarasota Health Facilities Authority-Sunnyside
Properties 6.00% 05/15/10............................. 200,000 201,410
---------
353,812
ESCROWED TO MATURITY - 6.19% ---------
Leon County Capital Improvement (MBIA)
5.75% 10/01/03........................................ 50,000 53,058
Pasco County School Board Series A (FSA)
6.10% 08/01/01........................................ 175,000 185,920
---------
238,978
GENERAL OBLIGATION BONDS - 1.31% ---------
Puerto Rico Commonwealth 5.10% 07/01/02............... 50,000 50,748
---------
50,748
HIGHER EDUCATION REVENUE BONDS - 5.25% ---------
Pinellas County Educational Facilities Authority-
Clearwater Christian College Private Placement
8.00% 02/01/11........................................ 200,000 202,680
---------
202,680
HOSPITAL REVENUE BONDS - 3.97% ---------
Martin County Health Facilities Authority-Memorial
Medical Center-Series B (MBIA)
5.25% 11/15/07........................................ 150,000 152,995
---------
152,995
---------
HOUSING REVENUE BONDS - 6.37%
Florida Housing Finance Authority Homeowners
Mortgage-Series 3 AMT (FHA/VA)
5.80% 01/01/10........................................ $200,000 $204,376
Manatee County Housing Finance Authority-Single
Family Mortgage-Subseries 1 AMT (GNMA/FNMA)
5.625% 05/01/04....................................... 40,000 41,686
---------
246,062
WASTE DISPOSAL REVENUE BONDS - 5.11% ---------
Dade County Solid Waste Special Obligation
(AMBAC)5.125% 10/01/10................................ 200,000 197,242
---------
197,242
*PRE-REFUNDED BONDS - 15.69% ---------
Florida State Board of Education Capital Outlay-
Series A 4.44% 06/01/12-00............................ 50,000 19,197
Port St. Lucie Storm Water (MBIA)
7.40% 11/01/06-00..................................... 160,000 174,901
Orange County Tourist Development (AMBAC)
7.25% 10/01/06-00..................................... 160,000 176,614
Sunrise Utilities System (AMBAC)
10.25% 10/01/13-00.................................... 200,000 234,922
---------
605,634
TRANSPORTATION REVENUE BONDS - 19.18% ---------
Dunes Community Development District-Intracoastal
Waterway Bridge (Guarantor: ITT Industries
Corporation) 5.50% 10/01/07........................... 175,000 177,531
Hillsborough County Port District-Tampa Port
Authority-Series A (FSA) 5.10% 06/01/03............... 175,000 178,930
Jacksonville Port Authority (MBIA)
7.625% 11/01/02...................................... 160,000 183,030
Port Palm Beach District-Series B AMT (MBIA)
5.40% 09/01/10........................................ 200,000 200,916
---------
740,407
---------
</TABLE>
1997 semi-annual report 13
<PAGE>
DELAWARE-VOYAGEUR TAX-FREE FLORIDA INTERMEDIATE FUND
STATEMENT OF NET ASSETS (Continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
-----------------------------
<S> <C> <C>
MUNICIPAL BONDS (CONTINUED)
UTILITY REVENUE BONDS - 2.74%
Puerto Rico Electric Power Authority-Series O
6.80% 07/01/00................................. $100,000 $ 105,772
---------
105,772
---------
WATER AND SEWER REVENUE BONDS - 7.44%
Kissimmee Suburban Water and Sewer System
(AMBAC) 5.80% 10/01/02......................... 175,000 184,594
St. Lucie County Special Assessment - South
Hutchinson Island (Asset Guaranty) 5.60% 11/01/09 100,000 102,514
---------
287,108
---------
OTHER REVENUE BONDS - 5.29%
Jacksonville Excise Tax - Series B AMT (FGIC)
5.50% 10/01/07.................................. 200,000 204,108
---------
204,108
---------
Total Municipal Bonds (cost $3,540,822)......... 3,616,446
---------
SHORT TERM INVESTMENTS - 5.03%
Norwest Advantage Municipal
Money Market Fund............................... 194,000 194,000
Total Short Term Investments ---------
(cost $194,000)................................. 194,000
---------
TOTAL MARKET VALUE OF SECURITIES OWNED - 98.72%
(cost $3,734,822)**............................. $3,810,446
RECEIVABLES AND OTHER ASSETS
NET OF LIABLITIES - 1.28%....................... 49,480
NET ASSETS APPLICABLE TO 369,174 SHARES ----------
($.01 PAR VALUE) OUTSTANDING - 100.00%.......... $3,859,926
==========
NET ASSET VALUE - TAX FREE FLORIDA INTERMEDIATE A CLASS
($2,888,675 / 276,285 shares)................... $10.46
NET ASSET VALUE - TAX FREE FLORIDA INTERMEDIATE B CLASS =========
($916,803 / 87,680 shares). .................... $10.46
NET ASSET VALUE - TAX FREE FLORIDA INTERMEDIATE C CLASS =========
($54,448 / 5,209 shares)........................ $10.45
=========
_______________________
*For Pre-Refunded Bonds, the stated maturity is followed by the year in which
each bond is pre-refunded.
**Also cost for federal tax purposes.
AMBAC - Insured by the AMBAC Indemnity Corporation
FGIC -Insured by the Financial Guaranty Insurance Company
FHLMC - Insured by the Federal Home Loan Mortgage Corporation
FSA - Insured by the Financial Security Assurance
GNMA - Insured by the Government National Mortgage Association
MBIA - Insured by the Municipal Bond Insurance Association
_______________________
COMPONENTS OF NET ASSETS AT JUNE 30, 1997
Common Stock, $.01 par value, unlimited shares
authorized to the Tax-Free Florida Intermediate
Fund............................................ $3,763,543
Accumulated undistributed net investment income. 12,994
Accumulated net realized gain on investments.... 7,765
Net unrealized appreciation of investments...... 75,624
----------
Total net assets................................ $3,859,926
==========
</TABLE>
14 1997 semi-annual report
<PAGE>
THE DELAWARE - VOYAGEUR FUNDS
STATEMENT OF ASSETS AND LIABILITIES
SIX MONTHS ENDING JUNE 30, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------
TAX-FREE TAX-FREE
TAX-FREE FLORIDA FLORIDA
FLORIDA FUND INSURED FUND INTERMEDIATE FUND
ASSETS: -----------------------------------------------------
<S> <C> <C> <C>
Investments at market . . . . . . . . . . . . $7,500,339 $171,485,921 $3,810,446
Cash. . . . . . . . . . . . . . . . . . . . . 5,292 - 138,352
Dividends and interest receivable . . . . . . 130,183 2,731,601 62,293
Subscriptions receivable. . . . . . . . . . . 47,327 30,325 18
Receivable for securities sold. . . . . . . . - 2,537,603 -
Other assets. . . . . . . . . . . . . . . . . 426 - 16,893
---------- ------------ ----------
Total assets. . . . . . . . . . . . . . . . 7,683,567 176,785,450 4,028,002
---------- ------------ ----------
LIABILITIES:
Liquidations payable. . . . . . . . . . . . . - 402,162 -
Payable for securities purchased. . . . . . . - - 153,822
Other accounts payable and accrued expenses. 25,392 3,404,670 14,254
---------- ------------ ----------
Total liabilities . . . . . . . . . . . . . 25,392 3,806,832 168,076
---------- ------------ ----------
TOTAL NET ASSETS. . . . . . . . . . . . . . . $7,658,175 $172,978,618 $3,859,926
========== ============ ==========
Investments at cost . . . . . . . . . . . . . $7,297,313 $164,016,284 $3,734,822
========== ============ ==========
</TABLE>
See accompanying notes
1997 semi-annual report 15
<PAGE>
THE DELAWARE - VOYAGEUR FUNDS
STATEMENT OF OPERATIONS
SIX MONTHS ENDING JUNE 30, 1997
(UNAUDITED)
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
TAX-FREE TAX-FREE
TAX-FREE FLORIDA FLORIDA
FLORIDA FUND INSURED FUND INTERMEDIATE FUND
---------------------------------------------------
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest. . . . . . . . . . . . . . . . . . . . . . . . . . $232,993 $5,399,325 $104,616
-------- ---------- --------
EXPENSES:
Management fees. . . . . . . . . . . . . . . . . . . . . . . 18,627 451,268 7,915
Dividend disbursing, transfer agent, and custodian fees and
expenses . . . . . . . . . . . . . . . . . . . . . . . . . . 9,891 149,067 8,576
Distribution expense. . . . . . . . . . . . . . . . . . . . 16,181 239,092 8,613
Registration fees. . . . . . . . . . . . . . . . . . . . . . 744 861 3,041
Reports and statements to shareholders. . . . . . . . . . . 1,603 15,229 1,406
Accounting fees and salaries. . . . . . . . . . . . . . . . . 664 15,365 350
Professional fees. . . . . . . . . . . . . . . . . . . . . . 1,900 10,342 2,405
Directors' fees. . . . . . . . . . . . . . . . . . . . . . . 216 3,107 517
Amortization of organization expenses. . . . . . . . . . . . - - 4,607
Other. . . . . . . . . . . . . . . . . . . . . . . . . . . . 276 3,740 115
-------- --------- --------
50,102 888,071 37,545
Less expenses waived or absorbed.. . . . . . . . . . . . . . (25,138) (191,660) (19,458)
-------- --------- --------
Total Net Expenses. . . . . . . . . . . . . . . . . . . . . . 24,964 696,411 18,087
-------- --------- --------
NET INVESTMENT INCOME. . . . . . . . . . . . . . . . . . . . 208,029 4,702,914 86,529
-------- --------- --------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized gain on investments:. . . . . . . . . . . . . . 14,272 1,044,064 6,074
Net change in unrealized appreciation of investments:. . . . 64,781 121,636 10,752
-------- --------- --------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS. . . . . . . 79,053 1,165,700 16,826
-------- --------- --------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS. . . . . $287,082 $5,868,614 $103,355
======== ========= ========
</TABLE>
See accompanying notes
16
1997 semi-annual report
<PAGE>
THE DELAWARE - VOYAGEUR FUNDS
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
TAX-FREE FLORIDA TAX-FREE FLORIDA
TAX-FREE FLORIDA FUND INSURED FUND INTERMEDIATE FUND
---------------------------------------------------------------------------------
SIX MONTHS SIX MONTHS SIX MONTHS
ENDED ENDED ENDED
6/30/97 YEAR ENDED 6/30/97 YEAR ENDED 6/30/97 YEAR ENDED
(UNAUDITED) 12/31/96 (UNAUDITED) 12/31/96 (UNAUDITED) 12/31/96
<S> <C> <C> <C> <C> <C> <C>
INCREASE IN NET ASSETS FROM OPERATIONS:
Net investment income.................... $ 208,029 $ 334,925 $ 4,702,914 $ 10,796,875 $ 86,529 $ 126,866
Net realized gain (loss) on investments.. 14,272 (8,936) 1,044,064 (735,445) 6,074 1,691
Net change in unrealized
appreciation of investments............. 64,781 (77,041) 121,636 (4,859,101) 10,752 6,281
Net increase in assets resulting from ---------- ----------- ------------ ------------- ---------- ---------
operations.............................. 287,082 248,948 5,868,614 5,202,329 103,355 134,838
---------- ----------- ------------ ------------- ---------- ---------
DISTRIBUTION TO SHAREHOLDERS FROM:
Net investment income:
A Class................................. (164,507) (284,033) (4,696,132) (10,629,841) (72,954) (95,504)
B Class................................. (48,713) (47,151) (82,496) (135,565) (19,007) (23,847)
C Class................................. (457) (466) 0 0 (1,074) (1,931)
---------- ----------- ------------ ------------- ---------- ---------
(213,677) (331,650) (4,778,628) (10,765,406) (93,035) (121,282)
---------- ----------- ------------ ------------- ---------- ---------
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold:
A Class................................. 632,886 2,129,354 2,273,025 6,904,605 255,737 356,093
B Class................................. 336,541 1,541,795 671,675 741,141 8,000 7,000
C Class................................. 43,000 15,000 0 0 0 0
Net asset value of shares issued in
connection with the acquisition of
Mackenzie Florida Limited Term Fund
(note 5):
A Class................................. N/A N/A N/A N/A N/A 2,301,714
B Class................................. N/A N/A N/A N/A N/A 1,307,968
Net asset value of shares issued upon
reinvestment of dividends from net
investment income:
A Class................................. 53,080 91,414 1,373,157 2,820,722 46,398 47,740
B Class................................. 8,714 6,313 23,920 40,001 10,413 8,990
C Class................................. 23 121 0 0 0 1,316
---------- ----------- ------------ ------------ ---------- ----------
1,074,244 3,783,997 4,341,777 10,506,469 320,548 4,030,821
---------- ----------- ------------ ------------ ---------- ----------
Cost of shares repurchased:
A Class................................. (793,684) (781,790) (27,725,509) (54,474,488) (580,134) (412,762)
B Class................................. (107,214) (30,651) (120,559) (315,311) (146,051) (330,086)
C Class................................. 0 (8,392) 0 0 0 0
---------- ----------- ------------ ------------ ---------- ----------
(900,898) (820,833) (27,846,068) (54,789,799) (726,185) (742,848)
---------- ----------- ------------ ------------ ---------- ----------
Increase (decrease) in net assets derived
from capital share transactions......... 173,346 2,963,164 (23,504,291) (44,283,330) (405,637) 3,287,973
---------- ----------- ------------ ------------ ---------- ----------
NET INCREASE (DECREASE) IN NET ASSETS.... 246,751 2,880,462 (22,414,305) (49,846,407) (395,317) 3,301,529
NET ASSETS:
Beginning of period...................... 7,411,424 4,530,962 195,392,923 245,239,330 4,255,243 953,714
---------- ----------- ------------ ------------ ---------- ----------
End of period............................ $7,658,175 $7,411,424 $172,978,618 $195,392,923 $3,859,926 $4,255,243
========== =========== ============ ============ ========== ==========
</TABLE>
See accompanying notes
1997 semi-annual report 17
<PAGE>
THE DELAWARE - VOYAGEUR FUNDS
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Selected data for each share of the Fund outstanding throughout each period was
as follows:
<TABLE>
<CAPTION>
TAX-FREE FLORIDA FUND - A CLASS
---------------------------------------------------------
SIX MONTHS PERIOD FROM
ENDED YEAR ENDED 3/2/95(1)
6/30/97 12/31/96 TO 12/31/95
(UNAUDITED)
<S> <C> <C> <C>
Net asset value, beginning of period. . . . . . . . . $10.52 $10.73 $10.00
Income from investment operations:
Net investment income. . . . . . . . . . . . . . . . . 0.28 0.59 0.47
Net realized and unrealized gain (loss) from
investments. . . . . . . . . . . . . . . . . . . . . . 0.12 (0.21) 0.75
------ ------ ------
Net increase in net assets from investment operations. 0.40 0.38 1.22
------ ------ ------
Less dividends and distributions:
Dividends from net investment income(2) . . . . . . . . (0.29) (0.59) (0.47)
Distributions from net realized gain on security
transactions. . . . . . . . . . . . . . . . . . . . . . - - (0.02)
------ ------ ------
Total dividends and distributions . . . . . . . . . . . (0.29) (0.59) (0.49)
------ ------ ------
Net asset value, end of period. . . . . . . . . . . . . $10.63 $10.52 $10.73
====== ====== ======
Total Return(3). . . . . . . . . . . . . . . . . . . . 4.00% 3.74% 12.49%
Ratios and supplemental data:
Net assets, end of period (000 omitted). . . . . . . . $5,707 $5,761 $4,421
Ratio of expenses to average net assets(4). . . . . . . 0.56%(5) 0.33% 0.32%(5)
Ratio of expenses to average net assets prior to
expense limitation. . . . . . . . . . . . . . . . . . . 1.24%(5) 1.25% 1.25%(5)
Ratio of net investment income to average net assets. . 5.68%(5) 5.66% 5.26%(5)
Ratio of net investment income to average net assets
prior to expense limitation. . . . . . . . . . . . . . . 5.00%(5) 4.74% 4.33%(5)
Portfolio turnover. . . . . . . . . . . . . . . . . . . 17.94%(5) 70.17% 63.52%
</TABLE>
- ----------
(1) Commencement of operations.
(2) For federal income tax purposes, all of the net investment income
distributions were derived from interest on securities exempt from federal
income tax.
(3) 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.
(4) For the years ended December 31, 1995 and 1996, 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.
(5) Annualized.
18 1997 semi-annual report
<PAGE>
FINANCIAL HIGHLIGHTS (CONTINUED)
- --------------------------------------------------------------------------------
Selected data for each share of the Fund outstanding throughout each period was
as follows:
<TABLE>
<CAPTION>
TAX-FREE FLORIDA FUND - B CLASS TAX-FREE FLORIDA FUND - C CLASS
---------------------------------------------------------------------------------------
SIX MONTHS PERIOD FROM SIX MONTHS PERIOD FROM
ENDED YEAR ENDED 9/15/95(1) ENDED YEAR ENDED 4/22/95(1)
6/30/97 12/31/96 TO 12/31/95 6/30/97 12/31/96 TO 12/31/95
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period ........ $10.53 $10.73 $ 10.37 $10.52 $10.73 $10.20
Income from investment operations:
Net investment income ....................... 0.26 0.56 0.15 0.25 0.37 0.33
Net realized and unrealized gain (loss)
from investments ............................ 0.11 (0.20) 0.38 0.11 (0.21) 0.56
------ ------ ------- ------ ------ ------
Net increase in net assets from
investment operations ....................... 0.37 0.36 0.53 0.36 0.16 0.89
------ ------ ------- ------ ------ ------
Less dividends and distributions:
Dividends from net investment income(2)...... (0.27) (0.56) (0.15) (0.25) (0.37) (0.34)
Distributions from net realized gain on
security transactions ....................... -- -- (0.02) -- -- (0.02)
------ ------ ------- ------ ------ ------
Total dividends and distributions ........... (0.27) (0.56) (0.17) (0.25) (0.37) (0.36)
------ ------ ------- ------ ------ ------
Net asset value, end of period .............. $10.63 $10.53 $ 10.73 $10.63 $10.52 $10.73
====== ====== ======= ====== ====== ======
Total Return(3).............................. 3.69% 3.51% 5.10% 3.60% 2.97% 8.88%
Ratios and supplemental data:
Net assets, end of period
(000 omitted) .............................. $1,893 $1,635 $ 101 $ 59 $ 16 $ 9
Ratio of expenses to average
net assets(4)................................ 0.98%(5) 0.76% 0.44%(5) 1.31%(5) 1.15% 1.11%(5)
Ratio of expenses to average net assets
prior to expense limitation ................. 1.99%(5) 2.00% 2.00%(5) 1.99%(5) 2.00% 2.00%(5)
Ratio of net investment income to average
net assets .................................. 5.27%(5) 5.23% 4.88%(5) 4.91%(5) 4.83% 4.57%(5)
Ratio of net investment income to average
net assets prior to expense limitation ...... 4.26%(5) 3.99% 3.32%(5) 4.23%(5) 3.98% 3.68%(5)
Portfolio turnover .......................... 17.94%(5) 70.17% 63.52% 17.94%(5) 70.17% 63.52%
</TABLE>
- ----------
(1) Commencement of operations.
(2) For federal income tax purposes, all of the net investment income
distributions were derived from interest on securities exempt from federal
income tax.
(3) 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.
(4) For the years ended December 31, 1995 and 1996, 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.
(5) Annualized.
1997 semi-annual report 19
<PAGE>
FINANCIAL HIGHLIGHTS (CONTINUED)
- --------------------------------------------------------------------------------
Selected data for each share of the Fund outstanding throughout each period was
as follows:
<TABLE>
<CAPTION>
TAX-FREE FLORIDA INSURED FUND - A CLASS
----------------------------------------------------------------------------------------
SIX MONTHS TWO MONTHS PERIOD FROM
ENDED YEAR ENDED YEAR ENDED ENDED YEAR ENDED YEAR ENDED 1/30/92(1)
6/30/97 12/31/96 12/31/95 12/31/94 10/31/94 10/31/93 TO 10/31/92
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period ..... $ 10.71 $ 10.94 $ 9.52 $ 9.64 $ 11.15 $ 10.11 $ 10.00
Income from investment operations:
Net investment income .................... 0.26 0.53 0.54 0.10 0.55 0.58 0.51
Net realized and unrealized gain (loss)
from investments ......................... 0.09 (0.23) 1.44 (0.12) (1.46) 1.12 0.15
------ -------- -------- -------- -------- -------- --------
Net increase (decrease) in net assets from
investment operations .................... 0.35 0.30 1.98 (0.02) (0.91) 1.70 0.66
------ -------- -------- -------- -------- -------- --------
Less dividends and distributions:
Dividends from net investment income(2) .. (0.27) (0.53) (0.56) (0.09) (0.54) (0.58) (0.51)
Distributions from net realized gain on
security transactions .................... -- -- -- (0.01) (0.06) (0.08) (0.04)
------ -------- -------- -------- -------- -------- --------
Total dividends and distributions ........ (0.27) (0.53) (0.56) (0.10) (0.60) (0.66) (0.55)
------ -------- -------- -------- -------- -------- --------
Net asset value, end of period ........... $10.79 $ 10.71 $ 10.94 $ 9.52 $ 9.64 $ 11.15 $ 10.11
====== ======== ======== ======== ======== ======== ========
Total Return(3)........................... 3.41% 2.90% 21.22% (0.11%) (8.38%) 17.27% 6.74%
Ratios and supplemental data:
Net assets, end of period (000 omitted) .. $169,155 $192,171 $242,425 $240,228 $259,702 $289,682 $ 50,666
Ratio of expenses to average net assets(4) 0.75%(5) 0.73% 0.51% 0.20%(5) 0.44% 0.18% 0.00%
Ratio of expenses to average net assets
prior to expense limitation .............. 1.17%(5) 0.96% 0.95% 1.06%(5) 0.96% 1.12% 1.25%(5)
Ratio of net investment income to
average net assets ....................... 5.24%(5) 5.02% 5.24% 6.24%(5) 5.24% 5.18% 5.38%(5)
Ratio of net investment income to average
net assets prior to expense limitation ... 4.82%(5) 4.79% 4.80% 5.38%(5) 4.72% 4.24% 4.13%(5)
Portfolio turnover ....................... 19.86%(5) 57.18% 101.48% 2.51% 49.12% 53.51% 208.24%
</TABLE>
- ----------
(1) Commencement of operations.
(2) For federal income tax purposes, all of the net investment income
distributions were derived from interest on securities exempt from federal
income tax.
(3) 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.
(4) For the years ended December 31, 1995 and 1996, 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.
(5) Annualized.
20 1997 semi-annual report
<PAGE>
FINANCIAL HIGHLIGHTS (CONTINUED)
- --------------------------------------------------------------------------------
Selected data for each share of the Fund outstanding throughout each period was
as follows:
<TABLE>
<CAPTION>
TAX-FREE FLORIDA INSURED FUND - B CLASS
-----------------------------------------------------------------------
SIX MONTHS YEAR YEAR TWO MONTHS PERIOD FROM
ENDED ENDED ENDED ENDED 3/11/94(1)
6/30/97 12/31/96 12/31/95 12/31/94 TO 10/31/94
(Unaudited)
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period ............... $ 10.71 $ 10.94 $ 9.52 $ 9.63 $ 10.64
Income from investment operations:
Net investment income .............................. 0.23 0.48 0.50 0.09 0.31
Net realized and unrealized gain (loss)
from investments .................................. 0.07 (0.23) 1.44 (0.11) (1.01)
--------- --------- --------- --------- ---------
Net increase (decrease) in net assets
from investment operations ........................ 0.30 0.25 1.94 (0.02) (0.70)
--------- --------- --------- --------- ---------
Less dividends and distributions:
Dividends from net investment income(2) ............ (0.23) (0.48) (0.52) (0.08) (0.30)
Distributions from net realized gain on
security transactions .............................. -- -- -- (0.01) (0.01)
--------- --------- --------- --------- ---------
Total dividends and distributions .................. (0.23) (0.48) (0.52) (0.09) (0.31)
--------- --------- --------- --------- ---------
Net asset value, end of period ..................... $ 10.78 $ 10.71 $ 10.94 $ 9.52 $ 9.63
========= ========= ========= ========= =========
Total Return(3) .................................... 2.98% 2.40% 20.76% (0.03%) (6.69%)
Ratios and supplemental data:
Net assets, end of period (000 omitted) ............ $ 3,823 $ 3,222 $ 2,814 $ 1,477 $ 1,135
Ratio of expenses to average net assets(4) ......... 1.38%(5) 1.24% 0.89% 0.59%(5) 1.00%(5)
Ratio of expenses to average net assets
prior to expense limitation ....................... 1.75%(5) 1.72% 1.68% 1.81%(5) 1.28%(5)
Ratio of net investment income to average net assets 4.61%(5) 4.51% 4.80% 5.68%(5) 4.63%(5)
Ratio of net investment income to average
net assets prior to expense limitation ............. 4.24%(5) 4.03% 4.01% 4.46%(5) 4.35%(5)
Portfolio turnover ................................. 19.86%(5) 57.18% 101.48% 2.51% 49.12%
</TABLE>
- ----------
(1) Commencement of operations.
(2) For federal income tax purposes, all of the net investment income
distributions were derived from interest on securities exempt from federal
income tax.
(3) 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.
(4) For the years ended December 31, 1995 and 1996, 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.
(5) Annualized.
1997 semi-annual report 21
<PAGE>
FINANCIAL HIGHLIGHTS (CONTINUED)
- --------------------------------------------------------------------------------
Selected data for each share of the Fund outstanding throughout each period was
as follows:
<TABLE>
<CAPTION>
TAX-FREE FLORIDA INTERMEDIATE FUND - A CLASS
-----------------------------------------------------------
SIX MONTHS PERIOD FROM
ENDED YEAR ENDED YEAR ENDED 5/1/94(1)
6/30/97 12/31/96 12/31/95 TO 12/31/94
(UNAUDITED)
<S> <C> <C> <C> <C>
Net asset value, beginning of period ................... $ 10.43 $ 10.56 $ 9.64 $ 10.00
Income from investment operations:
Net investment income .................................. 0.23 0.42 0.44 0.18
Net realized and unrealized gain (loss) from investments 0.04 (0.08) 1.01 (0.36)
--------- --------- ------- -------
Net increase (decrease) in net assets from
investment operations ................................. 0.27 0.34 1.45 (0.18)
--------- --------- ------- -------
Less dividends and distributions:
Dividends from net investment income(2) ................ (0.24) (0.47) (0.49) (0.18)
Distributions from net realized gain on
security transactions ................................. -- -- (0.04) --
--------- --------- ------- -------
Total dividends and distributions ...................... (0.24) (0.47) (0.53) (0.18)
--------- --------- ------- -------
Net asset value, end of period ......................... $ 10.46 $ 10.43 $ 10.56 $ 9.64
========= ========= ======= =======
Total Return(3) ........................................ 2.74% 3.34% 15.14% (1.55%)
Ratios and supplemental data:
Net assets, end of period (000 omitted) ................ $ 2,889 $ 3,159 $ 859 $ 592
Ratio of expenses to average net assets(4) ............. 0.73%(5) 0.66% 0.63% 0.00%
Ratio of expenses to average net assets prior
to expense limitation ................................. 1.71%(5) 1.25% 1.25% 1.25%(5)
Ratio of net investment income to average net assets ... 4.56%(5) 4.63% 4.28% 4.19%(5)
Ratio of net investment income to average net
assets prior to expense limitation .................... 3.58%(5) 4.04% 3.66% 2.94%(5)
Portfolio turnover ..................................... 17.11%(5) 63.06% 27.76% 0.00%
</TABLE>
- ----------
(1) Commencement of operations.
(2) For federal income tax purposes, all of the net investment income
distributions were derived from interest on securities exempt from federal
income tax.
(3) 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.
(4) For in the years ended December 31, 1995 and 1996, 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.
(5) Annualized.
22 1997 semi-annual report
<PAGE>
FINANCIAL HIGHLIGHTS (CONTINUED)
- --------------------------------------------------------------------------------
Selected data for each share of the Fund outstanding throughout each period was
as follows:
<TABLE>
<CAPTION>
Tax-Free Florida Tax-Free Florida
Intermediate Fund - B Class Intermediate Fund - C Class
---------------------------------------------------------------------------------------
Six Months Period From Six Months Period From
Ended Year Ended 9/15/95(1) Ended Year Ended 3/23/95(1)
6/30/97 12/31/96 to 6/30/97 12/31/96 to
(Unaudited) 12/31/95 (Unaudited) 12/31/95
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period ......... $ 10.42 $ 10.56 $10.58 $10.42 $10.55 $10.08
Income from investment operations:
Net investment income ........................ 0.19 0.34 0.10 0.19 0.33 0.25
Net realized and unrealized gain (loss)
from investments ............................. 0.05 (0.09) 0.03 0.04 (0.09) 0.55
Net increase in net assets from ------- --------- ------ ------ ------ ------
investment operations ........................ 0.24 0.25 0.13 0.23 0.24 0.80
------- --------- ------ ------ ------ ------
Less dividends and distributions:
Dividends from net investment income(2) ...... (0.20) (0.39) (0.11) (0.20) (0.37) (0.29)
Distributions from net realized gain on
security transactions ........................ -- -- (0.04) -- -- (0.04)
------- --------- ------ ------ ------ ------
Total dividends and distributions ............ (0.20) (0.39) (0.15) (0.20) (0.37) (0.33)
------- --------- ------ ------ ------ ------
Net asset value, end of period ............... $ 10.46 $ 10.42 $10.56 $10.45 $10.42 $10.55
======= ========= ====== ====== ====== ======
Total Return(3) ............................. 2.44% 2.47% 1.13% 2.29% 2.37% 7.95%
Ratios and supplemental data:
Net assets, end of period (000 omitted) ...... $ 917 $ 1,042 $ 41 $ 54 $ 54 $ 54
Ratio of expenses to average net assets(4) ... 1.47%(5) 1.48% 1.52%(5) 1.48%(5) 1.55% 1.62%(5)
Ratio of expenses to average net assets
prior to expense limitation ................. 2.46%(5) 2.00% 2.00%(5) 2.46%(5) 2.00% 2.00%(5)
Ratio of net investment income to average
net assets .................................. 3.81%(5) 3.81% 3.32%(5) 3.80%(5) 3.74% 3.10%(5)
Ratio of net investment income to average net
assets prior to expense limitation .......... 2.82%(5) 3.29% 2.84%(5) 2.82%(5) 3.29% 2.72%(5)
Portfolio turnover ........................... 17.11%(5) 63.06% 27.76% 17.11%(5) 63.06% 27.76%
</TABLE>
- ----------
(1) Commencement of operations.
(2) For federal income tax purposes, all of the net investment income
distributions were derived from interest on securities exempt from federal
income tax.
(3) 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.
(4) For the years ended December 31, 1995 and 1996, 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.
(5) Annualized.
1997 semi-annual report 23
<PAGE>
THE DELAWARE-VOYAGEUR FUNDS
NOTES TO FINANCIAL STATEMENTS -- JUNE 30, 1997
(UNAUDITED)
- --------------------------------------------------------------------------------
Delaware-Voyageur Tax-Free Florida Fund (formerly Voyageur Florida Tax Free
Fund) ("Tax-Free Florida Fund") and Delaware-Voyageur Tax-Free Florida Insured
Fund (formerly Voyageur Tax-Free Florida Insured Fund)("Tax-Free Florida Insured
Fund"), are series of the Voyageur Investment Trust; Delaware-Voyageur Tax-Free
Florida Intermediate Fund (formerly Voyageur Florida Limited Term Tax Free
Fund)("Tax-Free Florida Intermediate Fund"), a series of the Voyageur Investment
Trust II (each referred to as a "Fund" or collectively as the "Funds") are
Massachusetts business trusts registered under the Investment Company Act of
1940 (as amended) as open-end management investment companies. The Tax-Free
Florida Fund and Tax-Free Florida Intermediate Fund are registered as a
non-diversified funds. The Tax-Free Florida Insured Fund is registered as a
diversified fund. The Tax-Free Florida Fund seeks high current income free from
both federal income taxes and state intangibles tax by investing in investment
grade municipal bonds. The Tax-Free Florida Insured Fund seeks high current
income free from both federal and income taxes and state intangibles tax with
the added safety of an insured portfolio by investing in insured municipal
bonds. The Tax-Free Florida Intermediate Fund seeks to preserve original
investment principal while providing income free from both federal income taxes
and state intangibles tax by investing in intermediate term investment grade
municipal bonds.The Funds each offer three classes of shares.
1. Fund Reorganization
On April 30, 1997, Lincoln National Corporation ("LNC") acquired Voyageur Fund
Manager Inc.'s ("Voyageur") parent, Dougherty Financial Group, Inc. ("DFG")
pursuant to an agreement and plan of merger dated January 15, 1997, in which LNC
would acquire DFG including the mutual fund investment advisory business of DFG
conducted by Voyageur. Upon completion of the acquisition, Delaware Management
Company, Inc. ("DMC") became the investment adviser to the Funds, Delaware
Distributors, L.P. ("DDLP") became the distributor for the Funds, Delaware
Service Company, Inc. ("DSC") became the transfer, dividend-disbursing,
shareholder servicing agent and accounting service agent for the Funds.
2. Significant Accounting Policies
The following accounting policies are in accordance with generally accepted
accounting principles and are consistently followed by the Funds.
Security Valuation - Long-term debt securities are valued by an independent
pricing service and such prices are believed to reflect the fair value of such
securities. Money market instruments having less than 60 days to maturity are
valued at amortized cost which approximates market value. Other securities and
assets for which market quotations are not readily available are valued at fair
value as determined in good faith by or under the direction of the Fund's Board
of Directors.
Federal Income Taxes - Each Fund intends to continue to qualify as a regulated
investment company and make the requisite distributions to shareholders.
Accordingly, no provision for federal income taxes has been made in the
financial statements. Income and capital gain distributions are determined in
accordance with federal income tax regulations which may differ from generally
accepted accounting principles.
Class Accounting - Investment income, common expenses and realized and
unrealized gain (loss) on investments are allocated to the various classes of
the Funds on the basis of daily net assets of each class. Distribution expenses
relating to a specific class are charged directly to that class.
<PAGE>
Other - Expenses common to all Funds within the Delaware-Voyageur Funds are
allocated amongst the Funds on the basis of average net assets. Security
transactions are recorded on the date the securities are purchased or sold
(trade date). Costs used in calculating realized gains and losses on the sale of
investment securities are those of the specific securities sold. Interest income
is recorded on the accrual basis. Original issue discounts are accreted to
interest income over the lives of the respective securities. The Funds declare
dividends from net investment income daily and pay them monthly. Capital gains
are distributed annually.
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 at
the date of the financial statements and the reported amounts of revenues and
expenses during the reporting period. Actual results could differ from those
estimates.
3. Investment Management and Other Transactions with Affiliates Commencing May
1, 1997, and in accordance with the terms of the Investment Management
Agreement, the Fund pays DMC the Investment Manager of each Fund, an annual fee,
which is calculated daily on the average daily net assets of each Fund. The
management fee rates are as follows:
Tax-Free
Tax-Free Florida
Tax-Free Florida Intermediate
Florida Fund Insured Fund Fund
------------ ------------ ------------
Management fee as a
percentage of average
daily net assets
(per annum)............ 0.50% 0.50% 0.40%
DMC has elected to waive their fees and reimburse each Fund to the extent that
annual operating expenses exclusive of 12b-1 distribution fees, taxes, interest,
brokerage commissions and extraordinary expenses, exceed 0.31%, 0.62%, 0.48% of
average daily net assets for the Tax-Free Florida Fund, Tax-Free Florida Insured
Fund and Tax-Free Florida Intermediate Fund, respectively, through December 31,
1997. Total expenses absorbed by DMC for the two month period ended June 30,
1997 are as follows:
Tax-Free
Tax-Free Florida
Tax-Free Florida Intermediate
Florida Fund Insured Fund Fund
------------ ------------ ------------
Total expenses
absorbed by DMC ....... $6,731 $0 $2,582
Prior to May 1, 1997, the Funds had an investment advisory and management
agreement with Voyageur. Voyageur received a fee for its investment advisory and
management services based on the average daily net assets of the Tax-Free
Florida Fund and Tax-Free Florida Insured Fund at an annual rate of .50% and at
an annual rate of .40% for the Tax-Free Florida Intermediate Fund. During the
period January 1, 1997, to April 30, 1997, Voyageur waived $15,447, $0 and
$15,077 of the Tax-Free Florida Fund, Tax-Free Florida Insured Fund and Tax-Free
Florida Intermediate Fund, respectively.
24 1997 semi-annual report
<PAGE>
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
- -------------------------------------------------------------------------------
Commencing May 1, 1997, the Funds have engaged DSC, an affiliate of DMC, to
serve as dividend disbursing, transfer agent and accounting services agent for
the Fund. For the two month period ended June 30, 1997, the amounts expensed for
each Fund were as follows:
Tax-Free
Tax-Free Florida
Tax-Free Florida Intermediate
Florida Fund Insured Fund Fund
------------ ------------ ------------
Dividend disbursing,
transfer agent fees and
other expenses.......... $5,181 $55,986 $3,008
Accounting fees ......... $ 484 $11,364 $ 250
Prior to May 1, 1997, the Funds paid a fee to Voyageur for acting as the Fund's
dividend disbursing, administrative and accounting services agent. 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.
On June 30, 1997, the Funds had payables to affiliates as follows:
Tax-Free
Tax-Free Florida
Tax-Free Florida Intermediate
Florida Fund Insured Fund Fund
------------ ------------ ------------
Investment Management fee
payable to DMC .............. $ 3,153 $72,839 $ 1,286
Dividend disbursing, transfer
agent fees, accounting fees
and other expenses payable
to DSC ...................... $ 551 $14,025 $ 289
Other expenses payable
to DMC and affiliates ....... $ 1,891 $10,622 $ 1,677
Commencing May 1, 1997, and pursuant to the Distribution Agreement, the Funds
pay DDLP, the Distributor and an affiliate of DMC, an annual fee not to exceed
0.25% of the average daily net assets of the A Class and 1.00% of the average
daily net assets of the B and C Class for each Series. For the period May 1,
1997, to June 30, 1997, DDLP voluntarily waived $0, $1,154 and $0 for the
Tax-Free Florida Fund Class A, Class B and Class C Shares, respectively,
$60,211, $2,110 and $0 for the Tax-Free Florida Insured Fund Class A, Class B
and Class C Shares, respectively, and $436, $152 and $0 for the Tax-Free Florida
Intermediate Fund Class A, Class B and Class C Shares, respectively. For the two
month period ended June 30, 1997, DDLP earned commissions on sales
of the Fund A Class shares for each Fund as follows:
Tax-Free
Tax-Free Florida
Tax-Free Florida Intermediate
Florida Fund Insured Fund Fund
------------ ------------ ------------
$641 $5,802 $686
<PAGE>
Prior to May 1, 1997 each class of shares had a Distribution Agreement with
Voyageur Fund Distributors, Inc. ("VFD"). Under the plan the Funds paid VFD a
fee at an annual rate of 0.25% of the average daily net assets of the Class A
Shares and 1.00% of the average daily net assets of the Class B and C Shares.
For the period January 1, 1997 to April 30, 1997, VFD voluntarily waived $0,
$1,806 and $0 for the Tax-Free Florida Fund Class A, Class B and Class C Shares,
respectively, $125,513, $3,826 and $0, for the Tax-Free Florida Insured Fund
Class A, Class B and Class C Shares, respectively, and $904, $307 and $0 for the
Tax-Free Florida Intermediate Fund Class A, Class B and Class C Shares,
respectively.
Certain officers of DMC, DSC and DDLP are officers, directors and/or employees
of the Fund. These officers, directors and employees are paid no compensation by
the Fund.
4. Investments
During the period ended June 30, 1997, the Fund made purchases and sales of
investment securities other than U.S. government securities and temporary cash
investments for each Fund as follows:
Tax-Free
Tax-Free Florida
Tax-Free Florida Intermediate
Florida Fund Insured Fund Fund
------------ ------------ ------------
Purchases .............. $659,849 $16,899,498 $327,554
Sales .................. 650,013 44,420,431 905,327
At June 30, 1997, the aggregate unrealized appreciation (depreciation) of
securities for federal income tax purposes for each Fund were as follows:
Tax-Free
Tax-Free Florida
Tax-Free Florida Intermediate
Florida Fund Insured Fund Fund
------------ ------------ ------------
Aggregate unrealized
appreciation .............. $203,026 $7,469,637 $75,624
Aggregate unrealized
depreciation .............. -- -- --
-------- ---------- -------
Net unrealized appreciation $203,026 $7,469,637 $75,624
======== ========== =======
For federal income tax purposes, as of December 31, 1996, Tax-Free Florida Fund
had a capital loss carryover of $7,561 that will expire in 2004 and Tax-Free
Florida Insured Fund had a capital loss carryover of $13,555,824 that will
expire in 2002 through 2004.
5. Fund Merger
On May 31, 1996, Voyageur Florida Limited Term Fund acquired all of the net
assets of Mackenzie Florida Limited Term Fund (Mackenzie Fund) pursuant to an
Agreement and Plan of Reorganization approved by the Mackenzie shareholders on
May 29, 1996. The acquisition was accompanied by a tax-free exchange of 230,171
shares of Mackenzie Fund Class A shares for 222,818 shares of Florida Limited
Term Fund Class A shares and 131,059 shares of Mackenzie Fund Class B shares for
126,618 shares of Florida Limited Term Class B shares. The aggregate net assets
of Florida Limited Term Fund and Mackenzie Fund before the acquisition were
$991,683 and $3,609,682 (including $24,698 of net unrealized appreciation of
investments, $2,285,965 of paid-in capital for Class A and $1,299,019 of paid-in
capital for Class B), respectively, resulting in combined net assets of
$4,601,365 on May 31, 1996.
1997 semi-annual report 25
<PAGE>
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
- --------------------------------------------------------------------------------
6. Capital Stock
<TABLE>
<CAPTION>
TAX-FREE FLORIDA TAX-FREE FLORIDA TAX-FREE FLORIDA
FUND INSURED FUND INTERMEDIATE FUND
-------------------------- ---------------- --------------------
SIX MONTHS SIX MONTHS SIX MONTHS
ENDED YEAR ENDED ENDED YEAR ENDED ENDED YEAR ENDED
6/30/97 12/31/96 6/30/97 12/31/96 6/30/97 12/31/96
(UNAUDITED) (UNAUDITED) (UNAUDITED)
----------- ---------- ---------- ----------- ---------- -----------
Shares sold:
<S> <C> <C> <C> <C> <C> <C>
A Class............................... 60,212 203,132 213,557 647,757 24,671 34,201
B Class............................... 31,943 148,113 62,635 69,745 765 683
C Class............................... 4,026 1,479 0 0 0 0
Shares issued in connection with the
acquisition of Mackenzie Florida
Limited Term Fund:
A Class............................... N/A N/A N/A N/A N/A 222,818
B Class............................... N/A N/A N/A N/A N/A 126,618
C Class............................... N/A N/A N/A N/A N/A N/A
Shares issued upon reinvestment
of dividends from net investment
income:
A Class............................... 5,050 8,770 128,391 265,652 4,453 4,599
B Class............................... 829 607 2,237 3,772 999 868
C Class............................... 2 11 0 0 0 126
------- ------- ------- ------- ------ -------
102,062 362,112 406,820 986,926 30,888 389,913
------- ------- ------- ------- ------ -------
Shares repurchased:
A Class............................... (75,728) (76,595) (2,600,309) (5,135,342) (55,824) (40,025)
B Class............................... (10,037) (2,879) (11,252) (29,908) (14,050) (32,078)
C Class............................... 0 (817) 0 0 0 0
------ ------- ---------- ---------- ------- -------
(85,765) (80,291) (2,611,561) (5,165,250) (69,874) (72,103)
------ ------- ---------- ---------- ------- -------
Net Increase (Decrease)................ 16,297 281,821 (2,204,741) (4,178,324) (38,986) 317,810
====== ======= ========== ========== ======= =======
</TABLE>
7. Concentration of Credit Risk
The Funds concentrate their investments in securities mainly issued by Florida
municipalities. The value of these investments may be adversely affected by new
legislation within the state, regional or local economic conditions, and
differing levels of supply and demand for municipal bonds. Many municipalities
insure repayment for their obligations. Although bond insurance reduces the risk
of loss due to default by an issuer, such bonds remain subject to the risk that
market value may fluctuate for other reasons and there is no assurance that the
insurance company will meet its obligations. These securities have been
identified in the Statement of Net Assets.
The Funds may invest up to 15% of its total assets in illiquid securities which
may include securities with contractual restrictions on resale, securities
exempt from registration under Rule 144A of the Securities Act of 1933, as
amended, and other securities which may not be readily marketable. The relative
illiquidity of some of these securities may adversely affect the Fund's ability
to dispose of such securities in a timely manner and at a fair price when it is
necessary to liquidate such securities. These securities, if any, have been
denoted in the Statement of Net Assets.
26 1997 semi-annual report
<PAGE>
VOYAGEUR FUNDS
SHAREHOLDER MEETING RESULTS
- --------------------------------------------------------------------------------
A meeting of the funds' shareholders was held on April 11, 1997. The matters
submitted to a vote of shareholders were the election of new directors and the
approval of a new investment management agreement. Whenever there is a change in
control of an investment manager, the Investment Company Act of 1940 requires
shareholders to vote on a new investment management agreement.
<TABLE>
<CAPTION>
TAX-FREE FLORIDA FUND
NUMBER OF VOTES
-----------------------------------------
FOR AGAINST / WITHHELD ABSTENTIONS
-----------------------------------------
<S> <C>
Walter P. Babich ....................................................... 574,005 -- --
Anthony D. Knerr ....................................................... 574,005 -- --
Ann R. Leven ........................................................... 574,005 -- --
W. Thacher Longstreth .................................................. 574,005 -- --
Thomas F. Madison ...................................................... 574,005 -- --
Jeffrey J. Nick ........................................................ 574,005 -- --
Charles E. Peck ........................................................ 574,005 -- --
Wayne A. Stork ......................................................... 574,005 -- --
Approval of New Investment Management Agreement ........................ 456,176 21,673 96,156
TAX-FREE FLORIDA INSURED FUND
NUMBER OF VOTES
-----------------------------------------
FOR AGAINST / WITHHELD ABSTENTIONS
-----------------------------------------
Walter P. Babich ....................................................... 11,747,866 77,463 --
Anthony D. Knerr ....................................................... 11,751,573 73,756 --
Ann R. Leven ........................................................... 11,751,573 73,756 --
W. Thacher Longstreth .................................................. 11,743,664 81,665 --
Thomas F. Madison ...................................................... 11,742,585 82,744 --
Jeffrey J. Nick ........................................................ 11,751,573 73,756 --
Charles E. Peck ........................................................ 11,747,866 77,463 --
Wayne A. Stork ......................................................... 11,747,371 77,958 --
Approval of New Investment Management Agreement ........................ 11,090,721 221,067 513,541
TAX-FREE FLORIDA INTERMEDIATE FUND
NUMBER OF VOTES
-----------------------------------------
FOR AGAINST / WITHHELD ABSTENTIONS
-----------------------------------------
Walter P. Babich ....................................................... 270,248 466 --
Anthony D. Knerr ....................................................... 270,248 466 --
Ann R. Leven ........................................................... 270,248 466 --
W. Thacher Longstreth .................................................. 270,248 466 --
Thomas F. Madison ...................................................... 270,248 466 --
Jeffrey J. Nick ........................................................ 270,248 466 --
Charles E. Peck ........................................................ 270,248 466 --
Wayne A. Stork ......................................................... 270,248 466 --
Approval of New Investment Management Agreement ........................ 254,818 2,562 13,334
</TABLE>
1997 semi-annual report 27
<PAGE>
THIS SEMI-ANNUAL REPORT IS FOR THE INFORMATION OF THE TAX-FREE FLORIDA FUNDS'
SHAREHOLDERS, BUT IT MAY BE USED WITH PROSPECTIVE INVESTORS WHEN PRECEDED OR
ACCOMPANIED BY A CURRENT PROSPECTUS FOR THE TAX-FREE FLORIDA FUNDS, WHICH SETS
FORTH DETAILS ABOUT CHARGES, EXPENSES, INVESTMENT OBJECTIVES AND OPERATING
POLICIES OF EACH FUND. YOU SHOULD READ THE PROSPECTUS CAREFULLY BEFORE YOU
INVEST. SUMMARY INVESTMENT RESULTS ARE DOCUMENTED IN EACH FUND'S CURRENT
STATEMENT OF ADDITIONAL INFORMATION. THE FIGURES IN THIS REPORT REPRESENT PAST
RESULTS WHICH ARE NOT A GUARANTEE OF FUTURE RESULTS. THE RETURN AND PRINCIPAL
VALUE OF AN INVESTMENT IN THE FUNDS WILL FLUCTUATE SO THAT SHARES, WHEN
REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST.
INVESTMENT MANAGER
Delaware Management Company, Inc.
Philadelphia
NATIONAL DISTRIBUTOR
Delaware Distributors, L.P.
Philadelphia
SHAREHOLDER SERVICING, DIVIDEND DISBURSING AND TRANSFER AGENT
Delaware Service Company, Inc.
Philadelphia
1818 Market Street
Philadelphia, PA 19103-3682
FOR SHAREHOLDERS
1.800.523.1918
FOR SECURITIES DEALERS
1.800.362.7500
FOR FINANCIAL INSTITUTIONS
REPRESENTATIVES
1.800.659.2265
Be sure to consult your financial adviser when making investments. Mutual funds
can be a valuable part of your financial plan: however, shares of the Funds are
not FDIC or NCUSIF insured, are not guaranteed by any bank or any credit union,
and involve investment risk, including the possible loss of the principal amount
invested. Shares of the Funds are not bank or credit union deposits.
Copy Rights Delaware Distributors, L.P.
DELAWARE
GROUP
- -----------
Philadelphia o London
Printed in the USA on
recycled paper
(145)
SA-VOYFL[--]PP8/97
