VOYAGEUR INVESTMENT TRUST, N-30D, 1999-10-28

VOYAGEUR INVESTMENT TRUST
N-30D, 1999-10-28

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<PAGE>

F o r T a x-e x e m p t I n c o m e

Delaware Tax-Free Utah Fund
Delaware Tax-Free Washington Insured Fund

(Various photos demonstrating service and guidance, professional management and
goals)

service and guidance

professional management

goals

1999
Annual
Report

DELAWARE
INVESTMENTS
- ---------------------
Philadelphia o London

<PAGE>

A T R A D I T I O N O F S O U N D I N V E S T I N G

commitment

tax-exempt
income

tradition

A Commitment
To Our Investors

Delaware Investments has a tradition of money management that dates back to
1929. We have a long and distinguished history of helping individuals and
institutions--including some of America's largest pension funds--reach their
financial goals.
Headquartered in Philadelphia, a block from the nation's oldest stock
exchange, the Delaware organization established its first mutual fund in 1938.
Delaware International Advisers Ltd., our international affiliate, was
established in 1990 and is headquartered in London.
Delaware Investments offers a full range of mutual funds. We also manage
investments for variable annuities and closed-end funds as well as offer a wide
range of retirement plan services for individuals and businesses.
Delaware Investments has approximately $47 billion in mutual fund assets and
institutional advisory accounts under management for more than half-a-million
investors.

Complete information on any fund offered by Delaware Investments can be found in
each fund's current prospectus. Prospectuses for all funds offered by Delaware
Investments are available from your financial adviser. Please read the
prospectus carefully before you invest or send money.

Fund Objectives:
To seek as high a level of current income exempt from federal income tax and
applicable state personal income taxes as is consistent with preservation of
capital.

Table of Contents
Letter to Shareholders Page 1
Portfolio Managers' Review Page 4
Delaware Tax-Free Utah Fund Page 5
Delaware Tax-Free Washington
Insured Fund Page 6
Performance Summary Page 8
Statements of Net Assets Page 10
Financial Highlights Page 14

<PAGE>

September 7, 1999

for tax-exempt
income

Dear Shareholder:

Fiscal 1999 was a challenging year for both taxable and tax exempt fixed income
investors. Just before our fiscal year began in August, debt problems in Russia
and Brazil, along with ongoing concerns about recessions in Asia, created strong
worldwide demand for U.S. Treasury bonds. Demand for Treasuries, during times of
extreme market turbulence is often referred to as "a flight to quality."
Early in the fall, slower corporate earnings growth also fueled demand for
the relative safety of U.S. government debt. Prices for long-term Treasury bonds
rose sharply, pushing yields to historic lows. As prices for U.S. Treasury bonds
moved higher, municipal bonds seemed to offer exceptional value compared to
Treasuries. Later in the fall, as demand for Treasuries reversed, an abundant
supply of municipal bonds was met with relatively stable demand.
As winter approached, three Federal Reserve interest rate cuts helped to
restore investors' confidence in the U.S. economy and reduce concerns over
global recession. This set the stage for the significant stock market recovery
that started in the fourth quarter of 1998 and has continued since. In the
spring of 1999, the Dow Jones Industrial Average closed above both the 10,000
and 11,000 marks for the first time.
During the spring and summer, fixed-income investments took second billing to
equities. The performance of Treasury bonds suffered through June, as strength
in the domestic economy reduced demand for "safe haven" investments. Though
municipal bonds weren't such a clear value as they appeared in spring 1998 when
yields on Treasury bonds and municipal bonds were nearly identical, in our view,
tax-free bonds remained attractive compared to Treasury securities in early
summer. The interest income you receive from investing in municipal bonds is
free

We are, however, pleased that total returns for these two Delaware Municipal
Bond Funds outpaced the returns of their respective Lipper peer groups.
<TABLE>
<CAPTION>
ANNUAL Total Returns
- ------------------------------------------------------------------------------------------------
<S> <C>
One Year Ended August 31, 1999
- ------------------------------------------------------------------------------------------------
Delaware Tax-Free Utah Fund Class A -0.14%
Lipper Other State Municipal Debt Fund Average (79 Funds) -0.92%
- ------------------------------------------------------------------------------------------------
Delaware Tax-Free Washington Insured
Fund Class A -1.51%
Lipper Washington Municipal Debt Fund Average (7 funds) -4.34%
- ------------------------------------------------------------------------------------------------
Lehman Brothers Municipal Bond Index +0.50%
- ------------------------------------------------------------------------------------------------
Lehman Brothers Insured Municipal Bond Index -0.29%
- ------------------------------------------------------------------------------------------------

All performance shown above is at net asset value and assumes reinvestment of distributions.
Past performance does not guarantee future results. Performance of other Fund classes
varies due to different charges and expenses. The Lipper categories represent the average
returns of municipal bond funds with similar investment objectives. The unmanaged
Lehman Brothers Indexes are composed of bonds with a variety of quality ratings from many
states. You cannot invest directly in an index. Complete performance information for
both funds can be found on pages 8 and 9.
</TABLE>

<PAGE>

for tax-exempt
income

from federal income taxes. Some income may be subject to the alternative minimum
tax (AMT) for investors who are subject to that tax. The AMT is a federal tax
designed to ensure that wealthy individuals and corporations pay at least some
income tax.
On June 30, the Federal Reserve Board raised the Fed Funds rate, its target
rate for overnight loans between banks, by a quarter of a percentage point
citing inflationary concerns. The Treasury market improved as a result, posting
solid gains into the first week of July. Although they have some important
differences, municipal bonds typically move in lock-step with Treasuries--and
the muni market improved during this time period as well. Even U.S. equity
indexes hit new records following the rate increase (Source: Bloomberg).
On August 24th, The Federal Reserve again raised interest rates by a quarter
of a percentage point, the second increase in less than two months, saying the
action should help avert inflation while allowing the nation's long economic
expansion to continue. The Dow Jones Industrial Average reacted favorably to the
interest rate increase, reaching an all-time high of 11,326 on August 25, 1999
(Source: Bloomberg).
Municipals weathered the turbulence in the fixed income arena better than
Treasuries this past year. The 30-year U.S. Treasury bond yield stood at 6.21%,
while 30-year AAA-rated general obligation municipal bonds closed at 5.52% on
August 31, 1999. In essence, the yields of municipal general obligations were at
89% of Treasuries, before tax rates (Source: Bloomberg). As mentioned
previously, municipal bonds provide even better yield after taxes are taken into
account because the interest income from municipal bonds is generally free from
federal income taxes.
Despite increasing yields, municipal bonds, like most fixed-income
instruments, did not deliver exceptional total return for the fiscal year ending
August 31. Delaware's Tax-Free Utah Fund and Tax-Free Washington Insured Fund
were no exception--both Funds were down slightly for the fiscal year. We are,
however, pleased that total returns for these two Delaware Municipal Bond Funds
outpaced the returns of their respective Lipper peer groups.
Please see the Portfolio Managers' Review for a discussion of individual fund
performance.
Looking forward, we believe taxable and tax-exempt bonds may remain in the
shadow of stocks as long as economic growth and the roaring bull market continue
in 1999. However, we still believe fixed income investments play a vital role in
well-balanced portfolios. Tax-exempt municipal bonds, which your fund holds,
remain especially popular with investors for good reason. They offer a wide
range of benefits, including:

o Attractive current income free from federal, and in some cases, state and
local taxes
o Relatively dependable income
o Wide range of choices--investment quality, maturity, type of bond and
geographical location--to fit in with your investment objectives.

In the pages that follow, your Funds' portfolio managers, Elizabeth H.
Howell,

discipline

<PAGE>

for tax-exempt
income

and Andrew M. McCullagh, Jr. review the positioning of your municipal bond funds
and provide an outlook for the remainder of the year.
Unfortunately, due to limited appeal for single-state municipal bond funds in
Washington and Utah, we are liquidating both the Delaware Tax-Free Utah Fund and
Delaware Tax-Free Washington Insured Fund on November 18, 1999. Please see the
boxed section below for more information. As a shareholder you have the
opportunity to exchange your shares of the Fund for shares of Delaware Tax-Free
Insured Fund, our national tax-free municipal bond fund, or any other Delaware
Investments Fund. We hope we will be able to meet your tax advantaged investment
needs through one of our other 27 municipal bond funds. We thank you for
investing with Delaware Investments.

Sincerely,

/s/ Wayne A. Stork
- ------------------------------------
Wayne A. Stork
Chairman
Delaware Investments Family of Funds

/s/ David K. Downes
- ------------------------------------
David K. Downes
President and Chief Executive Officer
Delaware Investments Family of Funds

Important Information About Your Fund

Due to limited appeal for single-state municipal bond funds in Washington and
Utah, Delaware Tax-Free Utah Fund and Delaware Tax-Free Washington Insured Fund
are both scheduled to be liquidated on November 18, 1999. As a shareholder you
have the opportunity to exchange your shares of the Fund for shares of Delaware
Tax-Free Insured Fund, our national tax-free municipal bond fund, or any other
Delaware Investments Fund. You can make an exchange by:

o Calling our Shareholder Service Center at 1.800.523.1918
o Mailing the Exchange Form (which was sent to you in a previous letter) to:

Delaware Investments
1818 Market Street
Philadelphia, PA 19103-3682
Attn: Account Services

You will not be charged any fees or sales charges for this exchange, though
you should be aware that the transaction could have tax implications for you. A
1999 1099-B will be generated for exchanges or redemptions from your Fund.
Please discuss your specific situation with your tax adviser.
If you do not exchange or redeem your shares before the fund closes, your
shares will be automatically redeemed and a check will be sent to your address
of record. No contingent deferred sales charges will be deducted for this
redemption. You will then have up to one year to reinvest those proceeds into
any Delaware Investments fund at net asset value.
Delaware Investments has a long tradition of sound investing and commitment
to shareholder service. If you have any questions about your account, our
Shareholder Service representatives are ready to assist you. Call us at
1.800.523.1918.

<PAGE>

for tax-exempt
income

Portfolio Managers' Review

Elizabeth H. Howell
Vice President and Senior Portfolio Manager
Andrew M. McCullagh, Jr.
Vice President and Senior Portfolio Manager
September 18, 1999

Overview
In late summer and fall of 1998, state and local governments issued municipal
bonds at near-record levels, led by education, transportation and health care
issues. New U.S. municipal bond issuance reached $285 billion in 1998, second
only to the record $292 billion sold in 1993 (Source: The Bond Buyer).
This provided us with ample opportunities to select bonds with solid credit
ratings, high current income potential and the possibility of price
appreciation. The large municipal bond supply, however, slightly exceeded
investor demand, which temporarily stifled price gains. This led to
disappointing returns in early 1999.
New bond issuance cooled off considerably over the first three months of
1999, then picked back up again in March. This higher supply was sustained
throughout the summer. Still, for example, total supply in the state of Utah
from January through August 31, 1999 was down 31.0% from the same period in
fiscal 1998. Mild demand for municipal bonds in the summer kept prices in check,
which meant these securities continued to offer good values relative to Treasury
bonds.
Prices of most fixed income securities declined this past year as the stock
market grabbed the headlines. Municipal bonds were no exception. Despite a
difficult year, the municipal bond market began gaining luster late in the
summer as the yield gap between municipals and Treasury securities narrowed.
Less than two weeks after the Federal Reserve raised its Federal funds target
rate a second time on August 24 (by 0.25%), high-quality municipal bonds were,
in our opinion, still looking extraordinarily attractive relative to Treasury
bonds. As of August 31, 1999, municipal bond investors were giving up very
little yield in return for freedom from certain taxes.
A couple of factors are at play in the improving municipal market:

o Treasury bond supply has been steadily tapering off this past spring and
summer,

Despite a difficult year, the municipal bond market began gaining luster late in
the summer as the yield gap between municipals and Treasury securities narrowed.

market
overview

(photo of computer keyboard)
<PAGE>
for tax-exempt
income

pushing prices higher. This made Treasuries relatively more expensive compared
to municipal bonds. For nearly two decades, the government securities market
has grown exponentially (Source: Bloomberg). The government relied upon
Treasuries to help it finance the nation's $5.5 trillion in debt. Now, with a
back-to-back budget surplus occurring for the first time since 1956 and 1957,
Treasury bonds are becoming relatively scarce (Source: Bloomberg).

o Moreover, a robust U.S. economy has improved the credit quality of many
municipal bond jurisdictions, so default risk for high-quality municipal bonds
is relatively low.

In our view, the single biggest factor weighing down municipal bonds now is
the take-no-prisoners bull market in stocks. Against annual double-digit gains
in the stock market, the yield on municipals tends to look undersized.

Delaware Tax-Free Utah Fund
Delaware Tax-Free Utah Fund had a total return of -0.14% (Class A shares at net
asset value with distributions reinvested) for the one year ended August 31,
1999.
Although this return was slightly negative for the year, we succeeded in
preserving capital to a greater degree than the Lipper Other States Municipal
Debt Fund Average.
We maintained a conservative stance in regard to the Fund's average duration
in order to preserve capital to the greatest extent possible before the Fund's
scheduled closing on November 18, 1999. Duration is a common measure of a bond
or bond fund's sensitivity to interest rates. The longer the duration, the more
the bond's price will change for a given increase or decrease in interest rates.
Tax-Free Utah Fund had an average duration of only 6.7 years at the close of its
fiscal year. This strategy proved effective for us, allowing the Fund to

tax-free
utah

<TABLE>
<CAPTION>
Portfolio Highlights
- ------------------------------------------------------------------------------------------------
<S> <C> <C>
August 31, 1999
Delaware
Delaware Tax-Free Tax-Free Washington
Utah Fund Insured Fund
- ------------------------------------------------------------------------------------------------
Average Duration 6.7 years 8.7 years
Average Effective Maturity* 10.7 years 14.0 years
Average Maturity** 18.5 years 21.3 years
Alternative Minimum Tax*** 14.22% 13.88%
- ------------------------------------------------------------------------------------------------
Current 30-Day SEC Yield+
Class A 4.31% (3.80%) 4.45% (3.94%)
Class B 3.73% (3.19%) 3.87% (3.33%)
Class C -- -- 3.87% (3.34%)
- ------------------------------------------------------------------------------------------------
*Average effective maturity takes into consideration all prepayments, puts
and adjustable coupons.
**Average maturity is the stated maturity on the bond and does not take into
account any prepayments.
***Percentage of income generated for the year ended August 31, 1999 that was
subject to the federal alternative minimum tax.
+Calculated according to Securities and Exchange Commission guidelines. An
expense limitation for each Fund was in effect for the period shown. Yields
may have been lower without the limitation. Yields prior to expense
limitation shown in parentheses.
</TABLE>

(photo of globe)
<PAGE>

for tax-exempt
income

preserve principal better than many of its peers when interest rates rose this
past summer.
Economic expansion continues in Utah as corporations and residents prepare
for the 2002 Winter Olympics. This colossal event has inspired a population
growth spurt and a construction boom. Utah boasts extremely low unemployment and
a good business environment--factors that have attracted people to the area. All
of this has contributed to rising property values.

Delaware Tax-Free Washington Insured Fund
Delaware Tax-Free Washington Insured Fund had a total return of -1.51% (Class A
Shares at net asset value with distributions reinvested) for the one year ended
August 31, 1999. We succeeded in preserving capital to a greater degree than the
Lipper Washington State Municipal Debt Fund Average which delivered a -4.34%
return for the same one year period.
In fiscal 1999, more than 50% of all new municipal issues carried insurance
according to Securities Data Corporation, up from 23% of all new municipal
issues in fiscal 1998. This demonstrates growing demand for the added security
of insured municipal bonds. Delaware Tax-Free Washington Insured Fund invests in
bonds protected by private insurance, which guarantees the timely payment of
principal and interest. All of these insured bonds in the Fund carry AAA
ratings.

We maintained a somewhat aggressive stance in regard to the Fund's average
duration. Duration is a common measure of a bond or bond fund's sensitivity to
interest rates. The longer the duration, the more the bond's price will change
for a given increase or decrease in interest rates. Delaware Tax-Free Washington
Insured Fund had an average duration of 8.7 years at the close of its fiscal
year. This strategy proved effective for us, allowing the Fund to deliver high
income. This resulted in the Fund providing a greater total return for the year
than all other Washington state municipal bond funds tracked by Lipper.

Outlook
The U.S. seems to be the engine of growth for the entire world at this time. We
believe strong forward momentum for the U.S. economy is likely to result in
solid growth (about 3% annually) for the remainder of this year. We don't think
this will create an inflationary environment if labor productivity can maintain
respectable gains.
We also believe the Federal Reserve's two rate increases represented
fine-tuning rather than fundamental changes in policy. Both actions were made by
the central bank in an attempt to avert inflation while allowing the nation's
long economic expansion to continue.

tax-free
washington

<PAGE>

for tax-exempt
income

(photo of couple talking with financial advisor)

Having now taken back two of last fall's three rate cuts, the Fed did leave
open the possibility that it could raise rates a third time this year. We
believe they would do so if economic data showed inflationary pressure in the
form of a sharp decline in unemployment, further big wage increases or a
substantial rise in the Consumer Price Index, an index that tracks U.S.
inflationary levels in percentage points. For the most part, we think the Fed is
finished for the year, with any threat of inflation now contained.
In the coming year, we think that municipal bond prices have the potential to
rise. Because municipal bonds are generally not subject to the ebb and flow of
foreign demand, like Treasuries, they have been far more stable the last two
years. According to Bloomberg, over the last two years as of August 31, the
price of 10-year Treasuries was three times as volatile as municipal bond prices
based on standard deviation. We believe more investors will flock to municipal
bonds in the months ahead and drive up demand.
If prices rise, state municipal bond mutual funds have the potential to rise
in value. We see the possibility of attractive capital appreciation considering
that municipal prices would have to rise significantly in order to push their
yields down to historical 85% yield levels as compared to Treasuries.
If U.S. economic growth slows modestly for the remainder of 1999, which we
think it will, the Federal Reserve is less likely to raise short-term rates.
Bonds will likely breathe a sigh of relief and long-term interest rates could
fall. From an economic perspective, we believe inflation remains tame. We feel
that municipal bonds, at their reasonable current prices, should offer investors
good value in the remainder of 1999.
Regardless of market conditions, municipal bond funds have the potential to
offer valuable asset allocation benefits without adding to taxable investment
income. In our view, investors seeking to diversify their portfolios with less
volatile investments will find attractive opportunities in municipal bonds and
municipal bond funds. As we mentioned previously in this annual report, due to
limited appeal for single-state municipal bond funds in Washington and Utah, we
are liquidating both the Delaware Tax-Free Utah Fund and Delaware Tax-Free
Washington Insured Fund on November 18, 1999. As a shareholder you have the
opportunity to exchange your shares of the Fund for shares of Delaware Tax-Free
Insured Fund, our national tax-free municipal bond fund, or any other Delaware
Investments Fund.
We hope we will be able to meet your tax advantaged investment needs through
one of our other 27 municipal bond funds in the near future. We thank you for
investing with Delaware Investments.

outlook

<PAGE>

for tax-exempt
income

Performance Summary
<TABLE>
<CAPTION>
DELAWARE TAX-FREE UTAH FUND'S
LIFETIME PERFORMANCE

Growth of a $10,000 Investment
October 5, 1992 through August 31, 1999
<S> <C> <C> <C> <C> <C> <C> <C> <C>

Oct-92 Aug-93 Aug-94 Aug-95 Aug-96 Aug-97 Aug-98 Aug-99
Lehman Brothers Municipal Bond Index $10,000 $11,258 $11,274 $12,273 $12,916 $14,110 $15,330 $15,414
Delaware Tax-Free Utah Fund A Class $ 9,625 $11,145 $11,191 $12,020 $12,749 $13,879 $15,135 $15,113
Lipper Other States Municipal Debt Funds Average (13 funds) $10,000 $11,069 $11,104 $11,899 $12,524 $13,520 $14,502 $14,458
</TABLE>

Chart assumes a $10,000 investment on October 5, 1992, and includes the effect
of a 3.75% front-end sales charge and the reinvestment of all distributions. The
Lipper Average represents a peer group of municipal bond mutual funds from many
states. The unmanaged Lehman Brothers Municipal Bond Index is composed of bonds
with a variety of quality ratings from many states. Performance for other
classes will differ due to different charges and expenses. Past performance does
not guarantee future results.

DELAWARE TAX-FREE UTAH FUND'S PERFORMANCE
- --------------------------------------------------------------------------------
Average Annual Total Returns through August 31, 1999

Lifetime Five Years One Year
- --------------------------------------------------------------------------------
Class A (Est. 10/5/92)
Excluding Sales Charge +6.81% +6.20% -0.14%
Including Sales Charge +6.22% +5.39% -3.92%
- --------------------------------------------------------------------------------
Class B (Est. 5/27/95)
Excluding Sales Charge +4.95% -0.89%
Including Sales Charge +4.55% -4.67%
- --------------------------------------------------------------------------------

Performance for all Classes includes reinvestment of distributions and
applicable sales charge 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 shares excluding sales charge assumes either contingent
deferred sales charges did not apply or the investment was not redeemed. Returns
reflect a voluntary expense limitation in effect at the time. Returns would have
been lower without the limitation.

<PAGE>

for tax-exempt
income

<TABLE>
<CAPTION>
DELAWARE TAX-FREE WASHINGTON INSURED FUND'S
LONG-TIME PERFORMANCE

Growth of a $10,000 Investment
August 1, 1993 through August 31, 1999
<S> <C> <C> <C> <C> <C> <C> <C>
Aug-93 Aug-94 Aug-95 Aug-96 Aug-97 Aug-98 Aug-99
Lehman Brothers Municipal Bond Index $10,000 $10,014 $10,902 $11,473 $12,533 $13,617 $13,692
Delaware Tax Free Washington Insured Fund A Class 9,625 10,084 10,830 11,518 12,624 13,817 13,608
Lipper Washington Municipal Debt Fund Average (3 funds) 10,000 9,783 10,554 11,168 12,240 13,361 13,084
</TABLE>

Chart assumes a $10,000 investment on August 1, 1993, and includes the effect of
a 3.75% front-end sales charge and the reinvestment of all distributions. The
Lipper Average represents a peer group of municipal bond mutual funds from
Washington. The unmanaged Lehman Brothers Municipal Bond Index is composed of
bonds with a variety of quality ratings from many states. Performance for other
classes will differ due to different charges and expenses. Past performance does
not guarantee future results.

DELAWARE TAX-FREE WASHINGTON INSURED FUND'S PERFORMANCE
- --------------------------------------------------------------------------------
Average Annual Total Returns through August 31, 1999

Lifetime Five Years One Year
- --------------------------------------------------------------------------------
Class A (Est. 8/1/93)
Excluding Sales Charge +5.88% +6.18% -1.51%
Including Sales Charge +5.21% +5.38% -5.17%
- --------------------------------------------------------------------------------
Class B (Est. 10/24/95)
Excluding Sales Charge +4.58% -2.24%
Including Sales Charge +3.89% -6.00%
- --------------------------------------------------------------------------------
Class C (Est. 4/21/95)
Excluding Sales Charge +5.05% -2.34%
Including Sales Charge +5.05% -3.28%

Performance for all Classes includes reinvestment of distributions and
applicable sales charge 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 either
contingent deferred sales charges did not apply or 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 each Fund have a 3.75% maximum front-end sales charge and 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.
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.

<PAGE>

10 for tax-exempt income

Financial Statements

VOYAGEUR INVESTMENT TRUST - DELAWARE TAX-FREE UTAH FUND
STATEMENT OF NET ASSETS
AUGUST 31, 1999

- --------------------------------------------------------------------------------
PRINCIPAL MARKET
AMOUNT VALUE
- --------------------------------------------------------------------------------
MUNICIPAL BONDS - 96.27%
HIGHER EDUCATION REVENUE BONDS - 32.71%
Salt Lake County, Utah College (Westminster
College Project) 5.75% 10/1/27 ...................... $160,000 $149,664
Southern Utah University Board of Regents
(AMBAC) 6.35% 05/01/10 .............................. 150,000 159,561
Southern Utah University Pavilion Student Fee
6.30% 6/1/16 ........................................ 390,000 398,084
Utah State Board of Regents (MBIA) 5.875%
7/1/21 .............................................. 100,000 101,534
Utah State Board of Regents (AMBAC) 6.30%
6/1/12 .............................................. 100,000 106,087
---------
914,930
---------
HOUSING REVENUE BONDS - 26.18%
Clearfield City, Utah Multi-Family Revenue Federal
Housing Authority (Oakstone Apartments)
Series A 5.75% 11/1/27 .............................. 150,000 147,197
Salt Lake City Multi-Family Housing Authority
6.00% 4/1/25 ........................................ 100,000 100,175
Salt Lake County Housing Authority Multi-Family
(Bridgeside) (FHA) 6.30% 11/1/28 .................... 270,000 278,303
Utah Housing Finance Multi-Family (Cottonwood
Project) (FNMA) 6.30% 7/1/15 ........................ 200,000 206,616
---------
732,291
---------
LEASES/CERTIFICATES OF PARTICIPATION - 9.90%
Weber County, Utah Municipal Building Authority
Lease Revenue 5.75% 12/15/19 ........................ 175,000 173,740
West Valley City, Utah Municipal Building Authority
Lease Revenue 6.00% 1/15/10 ......................... 100,000 103,244
---------
276,984
---------
*PRE-REFUNDED BONDS - 18.97%
Iron County School District 6.50% (MBIA)
1/15/13-05 .......................................... 100,000 108,839
Provo, Utah City School District 6.25%
6/15/13-02 .......................................... 100,000 106,778
Salt Lake City Municipal Building Authority Lease
Revenue Series A 6.375% 10/1/12-02 .................. 100,000 106,736
Salt Lake County Service Area # 1 6.00%
12/15/12-02 ......................................... 100,000 103,648
Weber State University Board of Regents 6.25%
(MBIA) 4/1/10-02 .................................... 100,000 104,781
---------
530,782
---------
WATER & SEWER REVENUE BONDS - 8.51%
Utah Water Finance Agency Revenue 5.40%
10/1/24 ............................................. 250,000 238,125
---------
238,125
---------
Total Municipal Bonds (cost $2,627,801) ................ 2,693,112
---------

<PAGE>

- --------------------------------------------------------------------------------
NUMBER OF MARKET
SHARES VALUE
- --------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 2.60%
Norwest Advantage Municipal Money Market Fund ........... 72,767 $72,767
----------
Total Short-Term Investments (cost $72,767) ............. 72,767
----------

TOTAL MARKET VALUE OF SECURITIES - 98.87%
(COST $2,700,568) ............................................ $2,765,879
RECEIVABLES AND OTHER ASSETS
NET OF LIABILITIES - 1.13% ................................... 31,636
----------
NET ASSETS APPLICABLE TO 258,698 SHARES
($0.01 PAR VALUE) OUTSTANDING - 100.00% ...................... $2,797,515
==========

NET ASSET VALUE - TAX-FREE UTAH FUND CLASS A
($2,264,448 / 209,419 SHARES) .................................... $10.81
======
NET ASSET VALUE - TAX-FREE UTAH FUND CLASS B
($533,056 / 49,278 SHARES) ....................................... $10.82
======
NET ASSET VALUE - TAX-FREE UTAH FUND CLASS C
($10.81 / 1 SHARE) ............................................... $10.81
======
- -------------
*For Pre-Refunded Bonds, the stated maturity is followed by the year in which
each bond is pre-refunded.

Summary of Abbreviations:
AMBAC - Insured by the AMBAC Indemnity Corporation
FHA - Insured by the Federal Housing Administration
FNMA - Insured by the Federal National Mortgage Association
MBIA - Insured by the Municipal Bond Insurance Association

COMPONENTS OF NET ASSETS AT AUGUST 31, 1999:
Common stock, $0.01 par value, 10,000,000,000 shares
authorized to the Fund with 1,000,000,000 shares allocated
to Tax-Free Utah Fund Class A and 1,000,000,000
shares allocated to Tax-Free Utah Fund Class B and
1,000,000,000 shares allocated to Tax-Free Utah Fund Class C... $2,733,188
Accumulated net realized loss on investments ..................... (984)
Net unrealized appreciation of investments ....................... 65,311
----------
Total net assets ................................................. $2,797,515
==========

NET ASSET VALUE AND OFFERING PRICE -
TAX-FREE UTAH FUND
Net asset value per share Class A (A) ................................ $10.81
Sales charge (3.75% of offering price or 3.89% of amount
invested per share) (B) ............................................ 0.42
------
Offering price ....................................................... $11.23
======
- -----------
(A) Net asset value per share, as illustrated, is the estimated amount which
would be paid upon the redemption or repurchase of shares.
(B) See How to Buy Shares in the current Prospectus for purchases of $100,000 or
more.

See accompanying notes

<PAGE>

for tax-exempt income 11

VOYAGEUR INVESTMENT TRUST
DELAWARE TAX-FREE WASHINGTON INSURED FUND
STATEMENT OF NET ASSETS
AUGUST 31, 1999
- --------------------------------------------------------------------------------
PRINCIPAL MARKET
AMOUNT VALUE
- --------------------------------------------------------------------------------
MUNICIPAL BONDS - 97.89%
GENERAL OBLIGATION BONDS - 14.06%
Benton County Independent School District #116
(FGIC) 5.80% 12/1/10 ................................ $100,000 $104,074
Bothell (AMBAC) 5.70% 12/1/10 .......................... 75,000 77,253
Kent Washington Series A (MBIA) 6.00%
12/1/16 ............................................. 100,000 105,204
King County Kent School District #415 (MBIA)
5.55% 12/1/11 ....................................... 75,000 77,212
King County Washington Series B (MBIA)
4.75% 1/1/20 ........................................ 125,000 109,575
Snohomish County (MBIA) 5.90% 12/1/15 .................. 75,000 78,074
Washington State Series 93A Utility General
Obligation (FGIC) 5.75% 10/1/17 ..................... 100,000 100,913
---------
652,305
---------
HIGHER EDUCATION REVENUE BONDS - 13.26%
Washington Higher Education Pacific Lutheran
College (Connie Lee) 5.70% 11/1/26 .................. 200,000 197,802
Washington State Higher Education Facilities
(MBIA) 5.00% 10/1/28 Whitworth College
Project ............................................. 75,000 66,806
Washington State Higher Educational Facilities
Seattle University Project (AMBAC) 5.20%
5/1/28 .............................................. 150,000 138,269
Washington State University: Housing & Dining
System (MBIA) 6.375% 10/1/18 ........................ 200,000 212,084
---------
614,961
---------
HOSPITAL REVENUE BONDS - 15.59%
University Of Washington Medical Center (FSA)
6.30% 8/15/14 ....................................... 200,000 213,018
Washington State Health Care Facility Authority
Revenue Multicare Health Systems (MBIA)
5.00% 8/15/22 ....................................... 250,000 223,050
Washington State Health Care Facility Authority
Revenue Peace Health (MBIA) 5.625%
11/15/15 ............................................ 100,000 100,545
Washington State Health Care Facility Authority
Revenue Swedish Health Systems (AMBAC)
5.25% 11/15/26 ...................................... 100,000 92,511
Washington State Health Care Facility Authority
Revenue Yakima Valley Memorial Hospital
(Connie Lee) 5.25% 12/1/20 .......................... 100,000 94,019
---------
723,143
---------
HOUSING REVENUE BONDS - 18.73%
King County, Washington Housing Authority-
Fred Lind Manor Project-A (GNMA) 6.672%
6/20/32 ............................................. 200,000 212,058
Kitsap County Housing (GNMA) 7.10% 2/20/36 ............. 200,000 215,288
Washington State Housing Finance
Commonwealth Multi-Family Mortgage
Revenue A (GNMA) 6.00% 7/1/30 ....................... 60,000 61,081

<PAGE>

Washington State Housing Finance - Single
Family Series 2A (GNMA) (AMT) 6.30%
12/1/27 ............................................. $180,000 $185,661
Washington State Housing Single Family
Mortgage Revenue (GNMA) 6.20% 12/1/22 ............... 190,000 194,813
---------
868,901
---------
INDUSTRIAL DEVELOPMENT REVENUE BOND - 1.70%
University Of Washington Parking Revenue
(AMBAC) 6.125% 11/1/14 ............................... 75,000 78,960
---------
78,960
---------
POWER AUTHORITY REVENUE BONDS - 16.55%
Grant County Public #2 Wanapum (MBIA)
5.875% 1/1/26 ........................................ 100,000 101,337
Grant County Washington Public Utilities District
#2 Preist Rapids Hydro Electric Series 2A
(MBIA) 5.25% 1/1/18 .................................. 500,000 461,740
Kittitas County Public #1 (MBIA) 5.80% 12/1/20 .......... 100,000 101,465
Washington State Public Power #1 (MBIA)
5.75% 7/1/12 ......................................... 100,000 103,203
---------
767,745
---------
*PRE-REFUNDED BONDS - 4.04%
Clark County School District #114 (FGIC) 6.00%
12/1/11-05 ........................................... 75,000 80,553
Vancouver Water And Sewer Revenue (FGIC)
6.00% 6/1/16-05 ...................................... 100,000 106,625
---------
187,178
---------
TRANSPORTATION REVENUE BONDS - 3.91%
Port Seattle Washington Passenger Facilities (MBIA)
Charge Revenue Series A 5.00% 12/1/23 ................ 150,000 133,577
Port Tacoma Washington (AMBAC)
5.30% 12/1/17 ........................................ 50,000 47,691
---------
181,268
---------
WATER & SEWER REVENUE BONDS - 7.36%
Covington Water District Revenue (AMBAC)
6.00% 3/1/15 ......................................... 75,000 77,366
Olympia Washington Water and Sewer (FGIC)
5.125% 11/1/17 ....................................... 100,000 93,862
Seattle Metropolitan Sewer Revenue (FGIC)
5.70% 1/1/14 ......................................... 75,000 76,615
Seattle Washington Water Revenue (FGIC)
5.25% 3/1/24 ......................................... 100,000 93,349
---------
341,192
---------
OTHER REVENUE BONDS - 2.69%
Central Puget Sound Washington Regional
Transportation Authority (FGIC) 4.75%
2/1/28 ............................................... 150,000 124,925
---------
124,925
---------
Total Municipal Bonds (cost $4,550,291) ................. 4,540,578
---------

<PAGE>

12 for tax-exempt income

DELAWARE TAX-FREE WASHINGTON INSURED FUND
STATEMENT OF NET ASSETS (CONTINUED)

- --------------------------------------------------------------------------------
NUMBER OF MARKET
SHARES VALUE
- --------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 10.01%
Dreyfus Tax-Exempt Cash Management Inc. ................. 232,452 $232,452
Norwest Advantage Municipal Money Market Fund ........... 232,130 232,130
---------
Total Short-Term Investments (cost $464,582) ............ 464,582
---------

TOTAL MARKET VALUE OF SECURITIES
(cost $5,014,873) - 107.90% .................................. $5,005,160
LIABILITIES NET OF RECEIVABLES AND OTHER ASSETS - (7.90%)** ..... (366,539)
----------
NET ASSETS APPLICABLE TO 453,627 SHARES
($0.01 PAR VALUE) OUTSTANDING - 100.00% ...................... $4,638,621
==========

NET ASSET VALUE - TAX-FREE WASHINGTON INSURED FUND CLASS A
($3,005,117 / 294,011 SHARES) ..................................... $10.22
======
NET ASSET VALUE - TAX-FREE WASHINGTON INSURED FUND CLASS B
($1,436,081 / 140,306 SHARES) ..................................... $10.24
======
NET ASSET VALUE - TAX-FREE WASHINGTON INSURED FUND CLASS C
($197,423 / 19,310 SHARES) ........................................ $10.22
======
- -------------
Summary of Abbreviations:
AMBAC - Insured by the AMBAC Indemnity Corporation
AMT - Alternative Minimum Tax
Connie Lee - Insured by the College Construction Insurance Association
FGIC - Insured by the Financial Guaranty Insurance Company
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 AUGUST 31, 1999:
Common stock, $0.01 par value, unlimited shares authorized
to the Tax-Free Washington Insured Fund ....................... $4,729,074
Accumulated net realized loss on investments ..................... (80,740)
Net unrealized depreciation of investments ....................... (9,713)
----------
Total net assets ................................................. $4,638,621
==========
- ---------------
* For Pre-Refunded Bonds, the stated maturity is followed by the year in which
each bond is pre-refunded.
** Of this amount, $491,890 represents payable for security purchased at
August 31, 1999.

NET ASSET VALUE AND OFFERING PRICE PER SHARE -
TAX-FREE WASHINGTON INSURED FUND
Net asset value Class A (A) .......................................... $10.22
Sales charge (3.75% of offering price or 3.91% of amount
invested per share) (B) ........................................... 0.40
------
Offering price ....................................................... $10.62
======
- ---------------
(A) Net asset value per share, as illustrated, is the estimated amount which
would be paid upon the redemption or repurchase of shares.
(B) See How to Buy Shares in the current Prospectus for purchases of $100,000
or more.

See accompanying notes

<PAGE>

VOYAGEUR INVESTMENT TRUST
STATEMENTS OF OPERATIONS
YEAR ENDED AUGUST 31, 1999
- --------------------------------------------------------------------------------
TAX-FREE TAX-FREE
UTAH WASHINGTON
FUND INSURED FUND
----------- -------------
INVESTMENT INCOME:
Interest .............................................. $180,330 $230,589

EXPENSES:
Management fees ....................................... 16,554 21,284
Distribution expense .................................. 12,572 23,467
Dividend disbursing and transfer agent fees
and expenses ....................................... 7,705 8,737
Accounting and administration ......................... 1,330 1,675
Reports and statements to shareholders ................ 375 1,393
Professional fees ..................................... 2,070 7,500
Registration fees ..................................... 650 1,514
Custodian fees ........................................ 1,240 1,490
Taxes (other than taxes on income) .................... 1,300 1,194
Directors' fees ....................................... 760 573
Other ................................................. 852 4,794
--------- ---------
45,408 73,621
--------- ---------
Less expenses absorbed or waived ...................... (13,557) (38,509)
Less expenses paid indirectly ......................... (74) (98)
--------- ---------
Total operating expenses
(before interest expense) .......................... 31,777 35,014
Interest expense ...................................... 88 --
--------- ---------
Total expenses ........................................ 31,865 35,014
--------- ---------

NET INVESTMENT INCOME ................................. 148,465 195,575
--------- ---------

NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS:
Net realized gain on investments ...................... 26,183 --
Net change in unrealized appreciation/depreciation
of investments ..................................... (173,375) (287,880)
--------- ---------

NET REALIZED AND UNREALIZED LOSS ON
INVESTMENTS ........................................ (147,192) (287,880)
--------- ---------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS .......................... $1,273 ($92,305)
========= ========

See accompanying notes

<PAGE>

for tax-exempt income 13

Voyageur Investment Trust
Statements of Changes In Net Assets
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Tax-Free Utah Fund
------------------------------------------------------
Year ended Eight months ended Year ended
8/31/99 8/31/98 12/31/97
<S> <C> <C> <C>
Increase (Decrease) In Net Assets From Operations:
Net investment income ............................ $ 148,465 $ 115,621 $ 197,470
Net realized gain on investments ................. 26,183 33,973 57,047
Net change in unrealized appreciation/depreciation
of investments ................................ (173,375) 270 111,041
----------- ----------- -----------
Net increase (decrease) in net assets resulting
from operations ............................... 1,273 149,864 365,558
----------- ----------- -----------

Distributions To Shareholders From:
Net investment income:
Class A ....................................... (123,961) (99,545) (178,847)
Class B ....................................... (24,504) (16,076) (20,903)
Class C ....................................... -- -- --
Net realized gain on investments:
Class A ....................................... (19,377) -- --
Class B ....................................... (4,497) -- --
Class C ....................................... -- -- --
----------- ----------- -----------
(172,339) (115,621) (199,750)
----------- ----------- -----------
Capital Share Transactions:
Proceeds from shares sold:
Class A ....................................... 130,282 114,506 199,784
Class B ....................................... 111,185 32,104 133,701
Class C ....................................... -- -- --
Net asset value of shares issued upon reinvestment
of distributions from net investment income and
net realized gain on investments:
Class A ....................................... 43,163 30,175 61,141
Class B ....................................... 21,340 11,858 18,642
Class C ....................................... -- -- --
----------- ----------- -----------
305,970 188,643 413,268
----------- ----------- -----------
Cost of shares repurchased:
Class A ....................................... (573,422) (592,413) (1,040,871)
Class B ....................................... (175,089) -- (15,563)
Class C ....................................... -- -- --
----------- ----------- -----------
(748,511) (592,413) (1,056,434)
----------- ----------- -----------
Increase (decrease) in net assets derived from
capital share transactions .................... (442,541) (403,770) (643,166)
----------- ----------- -----------

Net Increase (Decrease) In Net Assets ............ (613,607) (369,527) (477,358)

Net Assets:
Beginning of period .............................. 3,411,122 3,780,649 4,258,007
----------- ----------- -----------
End of period .................................... $ 2,797,515 $ 3,411,122 $ 3,780,649
=========== =========== ===========
</TABLE>

<PAGE>

[RESTUBBED TABLE]
<TABLE>
<CAPTION>

Tax-Free Washington Insured Fund
------------------------------------------------------
Year ended Eight months ended Year ended
8/31/99 8/31/98 12/31/97
<S> <C> <C> <C>
Increase (Decrease) In Net Assets From Operations:
Net investment income ............................ $ 195,575 $ 112,796 $ 156,411
Net realized gain on investments ................. -- -- 38
Net change in unrealized appreciation/depreciation
of investments ................................ (287,880) 45,476 141,117
----------- ----------- -----------
Net increase (decrease) in net assets resulting
from operations ............................... (92,305) 158,272 297,566
----------- ----------- -----------

Distributions To Shareholders From:
Net investment income:
Class A ....................................... (123,479) (76,929) (125,449)
Class B ....................................... (61,678) (31,959) (30,887)
Class C ....................................... (10,418) (3,908) (1,855)
Net realized gain on investments:
Class A ....................................... -- -- --
Class B ....................................... -- -- --
Class C ....................................... -- -- --
----------- ----------- -----------
(195,575) (112,796) (158,191)
----------- ----------- -----------
Capital Share Transactions:
Proceeds from shares sold:
Class A ....................................... 934,595 109,476 404,281
Class B ....................................... 355,602 336,594 522,233
Class C ....................................... 15,572 230,500 46,196
Net asset value of shares issued upon reinvestment
of distributions from net investment income and
net realized gain on investments:
Class A ....................................... 62,171 35,377 63,054
Class B ....................................... 33,134 18,593 19,999
Class C ....................................... 9,076 2,988 913
----------- ----------- -----------
1,410,150 733,528 1,056,676
----------- ----------- -----------
Cost of shares repurchased:
Class A ....................................... (139,416) (219,070) (577,974)
Class B ....................................... (160,502) (29,422) (131,521)
Class C ....................................... (97,015) (21,200) --
----------- ----------- -----------
(396,933) (269,692) (709,495)
----------- ----------- -----------
Increase (decrease) in net assets derived from
capital share transactions .................... 1,013,217 463,836 347,181
----------- ----------- -----------

Net Increase (Decrease) In Net Assets ............ 725,337 509,312 486,556

Net Assets:
Beginning of period .............................. 3,913,284 3,403,972 2,917,416
----------- ----------- -----------
End of period .................................... $ 4,638,621 $ 3,913,284 $ 3,403,972
=========== =========== ===========
</TABLE>

See accompanying notes

<PAGE>

14 for tax-exempt income

Voyageur Investment Trust
Financial Highlights
- --------------------------------------------------------------------------------
Selected data for each share of the Fund outstanding throughout each period were
as follows:

<TABLE>
<CAPTION>
Tax-Free Utah Fund - Class A
------------------------------------------------------
Year Eight months Year Year
ended ended ended ended
8/31/99 8/31/98(1) 12/31/97(2) 12/31/96
<S> <C> <C> <C> <C>
Net asset value, beginning of period ........................... $11.440 $11.330 $10.840 $11.040

Income (loss) from investment operations:
Net investment income ....................................... 0.539 0.372 0.565 0.550
Net realized and unrealized gain (loss) on investments ...... (0.546) 0.110 0.495 (0.200)
-------- -------- -------- --------
Total from investment operations............................. (0.007) 0.482 1.060 0.350
-------- -------- -------- --------

Less dividends and distributions:
Dividends from net investment income......................... (0.539) (0.372) (0.570) (0.550)
Distributions from net realized gains on investments ........ (0.084) -- -- --
-------- -------- -------- --------
Total dividends and distributions............................ (0.623) (0.372) (0.570) (0.550)
-------- -------- -------- --------
Net asset value, end of period ................................. $10.810 $11.440 $11.330 $10.840
======== ======== ======== ========

Total return(3) (0.14%) 4.30% 10.08% 3.35%

Ratios and supplemental data:
Net assets, end of period (000 omitted)...................... $2,264 $2,803 $3,223 $3,861
Ratio of expenses to average net assets...................... 0.85% 0.76% 0.69% 0.68%
Ratio of expenses to average net assets prior to
expense limitation and expenses paid indirectly ........... 1.27% 1.17% 3.12% 1.25%
Ratio of net investment income to average net assets ........ 4.78% 4.89% 5.10% 5.14%
Ratio of net investment income to average net assets
prior to expense limitation and expenses paid indirectly .. 4.36% 4.48% 2.67% 4.57%
Portfolio turnover .......................................... 46% 84% 39% 39%

</TABLE>

<PAGE>

[RESTUBBED TABLE]
<TABLE>
<CAPTION>
Tax-Free Utah Fund - Class A
----------------------------------------
Year Two months Year
ended ended ended
12/31/95 12/31/94 10/31/94
<S> <C> <C> <C>
Net asset value, beginning of period ........................... $9.800 $9.940 $11.070

Income (loss) from investment operations:
Net investment income ....................................... 0.590 0.100 0.600
Net realized and unrealized gain (loss) on investments....... 1.240 (0.150) (1.070)
-------- -------- --------
Total from investment operations ............................ 1.830 (0.050) (0.470)
-------- -------- --------

Less dividends and distributions:
Dividends from net investment income ........................ (0.590) (0.090) (0.600)
Distributions from net realized gains on investments ........ -- -- (0.060)
-------- -------- --------
Total dividends and distributions ........................... (0.590) (0.090) (0.660)
-------- -------- --------
Net asset value, end of period ................................. $11.040 $9.800 $9.940
======== ======== ========

Total return(3) 19.06% (0.41%) (4.50%)

Ratios and supplemental data:
Net assets, end of period (000 omitted) ..................... $4,142 $3,728 $4,054
Ratio of expenses to average net assets ..................... 0.38% 0.11%(4) 0.10%
Ratio of expenses to average net assets prior to
expense limitation and expenses paid indirectly............ 1.25% 1.14%(4) 1.25%
Ratio of net investment income to average net assets ........ 5.51% 6.38%(4) 5.64%
Ratio of net investment income to average net assets ........
prior to expense limitation and expenses paid indirectly... 4.64% 5.35%(4) 4.49%
Portfolio turnover .......................................... 35% -- 2%
</TABLE>

- ----------------------
1 Ratios have been annualized and total return has not been annualized.
2 Commencing May 1, 1997, Delaware Management Company replaced Voyageur
Fund Managers, Inc. as the Fund's investment manager.
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 Annualized.

See accompanying notes

<PAGE>

for tax-exempt income 15

Financial Highlights (Continued)
- --------------------------------------------------------------------------------
Selected data for each share of the Fund outstanding throughout each period were
as follows:

<TABLE>
<CAPTION>
Tax-Free Utah Fund - Class B
-------------------------------------------------------------------
Year Eight months Year Year Period
ended ended ended ended 5/27/95(3) to
8/31/99 8/31/98(1) 12/31/97(2) 12/31/96 12/31/95
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period ......................... $11.450 $11.330 $10.830 $11.040 $10.630

Income (loss) from investment operations:
Net investment income ..................................... 0.454 0.313 0.464 0.470 0.300
Net realized and unrealized gain (loss) on investments .... (0.546) 0.120 0.515 (0.210) 0.390
-------- -------- -------- -------- --------
Total from investment operations........................... (0.092) 0.433 0.979 0.260 0.690
-------- -------- -------- -------- --------

Less dividends and distributions:
Dividends from net investment income ...................... (0.454) (0.313) (0.479) (0.470) (0.280)
Distributions from net realized gains on investments ...... (0.084) -- -- -- --
-------- -------- -------- -------- --------
Total dividends and distributions ......................... (0.538) (0.313) (0.479) (0.470) (0.280)
-------- -------- -------- -------- --------
Net asset value, end of period................................ $10.820 $11.450 $11.330 $10.830 $11.040
======== ======== ======== ======== ========

Total return(4)............................................... (0.89%) 3.87% 9.28% 2.47% 6.60%

Ratios and supplemental data:
Net assets, end of period (000 omitted).................... $533 $608 $558 $397 $363
Ratio of expenses to average net assets.................... 1.60% 1.51% 1.50% 1.46% 0.92%(5)
Ratio of expenses to average net assets prior to expense
limitation and expenses paid indirectly.................. 2.02% 1.92% 3.93% 2.00% 2.00%(5)
Ratio of net investment income to average net assets ...... 4.03% 4.14% 4.29% 4.34% 4.74%(5)
Ratio of net investment income to average net assets
prior to expense limitation and expenses paid indirectly. 3.61% 3.73% 1.86% 1.86% 3.66%(5)
Portfolio turnover ........................................ 46% 84% 39% 39% 35%
</TABLE>
- ----------------------
1 Ratios have been annualized and total return has not been annualized.
2 Commencing May 1, 1997, Delaware Management Company replaced Voyageur Fund
Managers, Inc. as the Fund's investment manager.
3 Commencement of operations.
4 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.
5 Annualized.

As of August 31, 1999, the Class C had one share outstanding, representing the
initial seed purchase. Data from this Class are excluded because the data are
not believed to be meaningful.

See accompanying notes
<PAGE>
16 for tax-exempt income

FINANCIAL HIGHLIGHTS (CONTINUED)

Selected data for each share of the Fund outstanding throughout each period were
as follows:
<TABLE>
<CAPTION>

TAX-FREE WASHINGTON INSURED FUND - CLASS A
----------------------------------------------------------------------------
YEAR EIGHT MONTHS YEAR YEAR YEAR TWO MONTHS YEAR
ENDED ENDED ENDED ENDED ENDED ENDED ENDED
8/31/99 8/31/98(1) 12/31/97(2) 12/31/96 12/31/95 12/31/94 10/31/94
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period ................ $10.900 $10.770 $10.300 $10.440 $9.210 $9.370 $10.670

Income (loss) from investment operations:
Net investment income ........................... 0.530 0.355 0.541 0.540 0.590 0.090 0.550
Net realized and unrealized gain (loss)
on investments ................................. (0.680) 0.131 0.481 (0.140) 1.210 (0.160) (1.260)
------- ------- ------- ------- ------- ------ ------
Total from investment operations ................ (0.150) 0.486 1.022 0.400 1.800 (0.070) (0.710)
------- ------- ------- ------- ------- ------ ------

Less dividends and distributions:
Dividends from net investment income ............ (0.530) (0.356) (0.552) (0.540) (0.570) (0.090) (0.570)
Distributions from net realized gains
on investments ................................. -- -- -- -- -- -- (0.020)
------- ------- ------- ------- ------- ------ ------
Total dividends and distributions................ (0.530) (0.356) (0.552) (0.540) (0.570) (0.090) (0.590)
------- ------- ------- ------- ------- ------ ------
Net asset value, end of period ..................... $10.220 $10.900 $10.770 $10.300 $10.440 $9.210 $9.370
======= ======= ======= ======= ======= ====== ======

Total return(3) .................................... (1.51%) 4.59% 10.23% 3.98% 19.94% (0.69%) (6.85%)

Ratios and supplemental data:
Net assets, end of period (000 omitted).......... $3,005 $2,325 $2,372 $2,382 $2,099 $2,049 $2,118
Ratio of expenses to average net assets ......... 0.52% 0.50% 0.49% 0.44% 0.28% 0.10%(4) 0.14%
Ratio of expenses to average net assets prior to
expense limitation and expenses paid indirectly. 1.42% 1.34% 1.38% 1.25% 1.25% 1.25%(4) 1.25%
Ratio of net investment income to average
net assets .................................... 4.90% 4.94% 5.20% 5.29% 5.57% 6.18%(4) 5.44%
Ratio of net investment income to average
net assets prior to expense limitation
and expenses paid indirectly................... 4.00% 4.10% 4.31% 4.48% 4.60% 5.03%(4) 4.33%
Portfolio turnover .............................. 1% 1% 20% 33% 51% -- --
</TABLE>
- ----------------------
(1) Ratios have been annualized and total return has not been annualized.
(2) Commencing May 1, 1997, Delaware Management Company replaced Voyageur Fund
Managers, Inc. as the Fund's investment manager.
(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) Annualized.

See accompanying notes

<PAGE>
for tax-exempt income 17

FINANCIAL HIGHLIGHTS (CONTINUED)

Selected data for each share of the Fund outstanding throughout each period were
as follows:
<TABLE>
<CAPTION>
TAX-FREE WASHINGTON INSURED FUND - CLASS B
---------------------------------------------------------
EIGHT PERIOD
YEAR MONTHS YEAR YEAR 10/24/95(3)
ENDED ENDED ENDED ENDED TO
8/31/99 8/31/98(1) 12/31/97(2) 12/31/96 12/31/95
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period ....................... $10.920 $10.780 $10.310 $10.440 $10.180

Income (loss) from investment operations:
Net investment income.................................... 0.448 0.301 0.471 0.470 0.090
Net realized and unrealized gain (loss) on investments... (0.680) 0.141 0.470 (0.140) 0.250
------- ------- ------- ------- -------
Total from investment operations ........................ (0.232) 0.442 0.941 0.330 0.340
------- ------- ------- ------- -------

Less dividends:
Dividends from net investment income .................... (0.448) (0.302) (0.471) (0.460) (0.080)
------- ------- ------- ------- -------
Total dividends.......................................... (0.448) (0.302) (0.471) (0.460) (0.080)
------- ------- ------- ------- -------
Net asset value, end of period ............................. $10.240 $10.920 $10.780 $10.310 $10.440
======= ======= ======= ======= =======

Total return(4) (2.24%) 4.16% 9.38% 3.32% 3.30%

Ratios and supplemental data:
Net assets, end of period (000 omitted).................. $1,436 $1,304 $963 $516 $15
Ratio of expenses to average net assets.................. 1.27% 1.25% 1.24% 1.21% 1.04%(5)
Ratio of expenses to average net assets prior to
expense limitation and expenses paid indirectly ........ 2.17% 2.09% 2.13% 2.00% 2.00%(5)
Ratio of net investment income to average net assets..... 4.15% 4.19% 4.45% 4.47% 4.44%(5)
Ratio of net investment income to average net assets
prior to expense limitation and expenses paid
indirectly.............................................. 3.25% 3.35% 3.56% 3.68% 3.48%(5)
Portfolio turnover ...................................... 1% 1% 20% 33% 51%
</TABLE>
- ----------------------
(1) Ratios have been annualized and total return has not been annualized.
(2) Commencing May 1, 1997, Delaware Management Company replaced Voyageur Fund
Managers, Inc. as the Fund's investment manager.
(3) Commencement of operations.
(4) 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.
(5) Annualized.

See accompanying notes

<PAGE>

18 for tax-exempt income

FINANCIAL HIGHLIGHTS (CONTINUED)

Selected data for each share of the Fund outstanding throughout each period were
as follows:
<TABLE>
<CAPTION>

TAX-FREE WASHINGTON INSURED FUND - CLASS C
---------------------------------------------------------
EIGHT PERIOD
YEAR MONTHS YEAR YEAR 4/21/95(3)
ENDED ENDED ENDED ENDED TO
8/31/99 8/31/98(1) 12/31/97(2) 12/31/96 12/31/95
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period ....................... $10.910 $10.770 $10.300 $10.430 $9.940

Income (loss) from investment operations:
Net investment income ................................... 0.448 0.302 0.465 0.450 0.310
Net realized and unrealized gain (loss) on investments... (0.690) 0.140 0.469 (0.140) 0.480
------- ------- ------- ------- -------
Total from investment operations ........................ (0.242) 0.442 0.934 0.310 0.790
------- ------- ------- ------- -------

Less dividends:
Dividends from net investment income .................... (0.448) (0.302) (0.464) (0.440) (0.300)
------- ------- ------- ------- -------
Total dividends ......................................... (0.448) (0.302) (0.464) (0.440) (0.300)
------- ------- ------- ------- -------
Net asset value, end of period ............................. $10.220 $10.910 $10.770 $10.300 $10.430
======= ======= ======= ======= =======

Total return(4) (2.34%) 4.17% 9.31% 3.12% 8.13%

Ratios and supplemental data:
Net assets, end of period (000 omitted) ................. $197 $284 $69 $19 $19
Ratio of expenses to average net assets ................. 1.27% 1.25% 1.29% 1.37% 1.30%(5)
Ratio of expenses to average net assets prior to
expense limitation and expenses paid indirectly......... 2.17% 2.09% 2.18% 2.00% 2.00%(5)
Ratio of net investment income to average net assets..... 4.15% 4.19% 4.40% 4.36% 4.45%(5)
Ratio of net investment income to average net assets
prior to expense limitation and expenses paid
indirectly ............................................. 3.25% 3.35% 3.51% 3.73% 3.75%(5)
Portfolio turnover....................................... 1% 1% 20% 33% 51%
</TABLE>
- ----------------------
(1) Ratios have been annualized and total return has not been annualized.
(2) Commencing May 1, 1997, Delaware Management Company replaced Voyageur Fund
Managers, Inc. as the Fund's investment manager.
(3) Commencement of operations.
(4) 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.
(5) Annualized.

See accompanying notes
<PAGE>
for tax-exempt income 19

NOTES TO FINANCIAL STATEMENTS
AUGUST 31, 1999
- --------------------------------------------------------------------------------

Delaware Tax-Free Utah Fund ("Tax-Free Utah Fund") and Delaware Tax-Free
Washington Insured Fund ("Tax-Free Washington Insured Fund"), series within the
Voyageur Investment Trust, are registered as open-end management investment
companies under the Investment Company Act of 1940 (as amended). These financial
statements and related notes pertain to the Tax-Free Utah Fund and the Tax-Free
Washington Insured Fund (each referred to as a "Fund" or collectively as the
"Funds"). The Funds offer three classes of shares. The Class A carries a
front-end sales charge of 3.75%. The Class B carries a back-end deferred sales
charge and the Class C carries a level load deferred sales charge.

The Tax-Free Utah Fund seeks a high level of current income free from both
federal and state income taxes by investing in investment grade municipal bonds.
The Tax-Free Washington Insured Fund seeks a high level of current income free
from both federal and state income taxes with the added safety of an insured
portfolio by investing in insured municipal bonds.

1. 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 Funds' 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.

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.

Other - Expenses common to all funds within the Delaware Investments Family of
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 and
market premiums are amortized 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, if any, are distributed annually.

<PAGE>

Certain expenses of the Funds are paid through "soft dollar" arrangements with
brokers. These transactions are done subject to best price and execution. The
expenses paid under the above arrangement are included in their respective
expense captions on the Statement of Operations with the corresponding expense
offset shown as "expenses paid indirectly". The amounts of these expenses for
the year ended August 31, 1999 are as follows:
SOFT DOLLAR
EXPENSES
-----------
Tax-Free Utah Fund ............................... $74
Tax-Free Washington Insured Fund ................. $98

2. Investment Management and Other Transactions with Affiliates
Commencing January 1, 1999, and in accordance with the terms of the Investment
Management Agreement, the Tax-Free Utah Fund pays Delaware Management Company
("DMC"), the Investment Manager of the Fund, an annual fee which is calculated
at the rate of 0.55% on the first $500 million of average daily net assets of
the Fund, 0.50% on the next $500 million, 0.45% on the next $1,500 million and
0.425% on the average daily net assets in excess of $2,500 million. The Tax-Free
Washington Insured Fund pays DMC an annual fee which is calculated at the rate
of 0.50% on the first $500 million of average daily net assets of the Fund,
0.475% on the next $500 million, 0.45% on the next $1,500 million and 0.425% on
the average daily net assets in excess of $2,500 million. Prior to January 1,
1999, the Funds paid DMC an annual fee which was calculated at the rate of 0.50%
of the average daily net assets of the Funds.

DMC has elected to waive its fees and reimburse each Fund to the extent that
annual operating expenses, exclusive of distribution expenses, taxes, interest,
brokerage commissions and extraordinary expenses, do not exceed the following
percentages of average daily net assets through December 31, 1999.

The operating expense limits for each Fund are as follows:
OPERATING
EXPENSE
LIMITATION AS A
PERCENTAGE OF
AVERAGE DAILY
NET ASSETS
(PER ANNUM)
----------------
Tax-Free Utah Fund ................................... 0.60%
Tax-Free Washington Insured Fund ..................... 0.35%*

- ----------------------
* Prior to July 1, 1999, the expense limitation for Tax-Free Washington Insured
Fund was 0.25%.

The Funds have engaged Delaware Service Company, Inc. ("DSC"), an affiliate of
DMC, to provide dividend disbursing, transfer agent and accounting and
administrative services. Each Fund pays DSC a monthly fee based on number of
shareholder accounts, shareholder transactions and average net assets, subject
to certain minimums.

On August 31, 1999, the Funds had payables to affiliates as follows:

DIVIDEND DISBURSING,
TRANSFER AGENT
FEES,ACCOUNTING
SERVICES
AND OTHER OTHER EXPENSES
EXPENSES PAYABLE TO
PAYABLE DMC AND
TO DSC AFFILIATES
------------- ----------------
Tax-Free Utah Fund ........................ $1,025 $ 411
Tax-Free Washington Insured Fund .......... 1,164 1,918

<PAGE>
20 for tax-exempt income

NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------

2. Investment Management and Other Transactions with Affiliates (Continued)
Pursuant to the Distribution Agreement, the Funds pay Delaware Distributors,
L.P. ("DDLP"), the Distributor and an affiliate of DMC, an annual fee not to
exceed 0.25% of the average daily net assets of the Class A and 1.00% of the
average daily net assets of the B and Classes.

For the year ended August 31, 1999, commissions earned by DDLP on sales of the
Funds' Class A shares were as follows:

Tax-Free Utah Fund .................................... $476
Tax-Free Washington Insured Fund ...................... 3,006

Certain officers of DMC, DSC and DDLP are officers, directors and/or employees
of the Funds. These officers, directors and employees are paid no compensation
by the Funds.

3. Investments
During the year ended August 31, 1999, the Funds made purchases and sales of
investment securities other than U.S. government securities and temporary cash
investments as follows:

PURCHASES SALES
---------- ----------
Tax-Free Utah Fund ................................ $1,449,431 $1,959,463
Tax-Free Washington Insured Fund .................. 1,024,979 10,000

At August 31, 1999, the aggregate cost of securities and unrealized appreciation
(depreciation) for federal income tax purposes for each Fund were as follows:
<TABLE>
<CAPTION>
AGGREGATE AGGREGATE NET UNREALIZED
COST OF UNREALIZED UNREALIZED APPRECIATION
INVESTMENTS APPRECIATION DEPRECIATION (DEPRECIATION)
----------- ------------ ------------ ---------------
<S> <C> <C> <C> <C>
Tax-Free Utah Fund ................................ $2,700,568 $ 86,160 ($20,849) $65,311
Tax-Free Washington Insured Fund .................. 5,014,873 114,913 (124,626) (9,713)
</TABLE>
For federal income tax purposes, Tax-Free Washington Insured Fund had
accumulated capital losses at August 31, 1999 which may be carried forward and
applied against future gains as follows:
<TABLE>
<CAPTION>
YEAR OF YEAR OF
EXPIRATION EXPIRATION
2003 2004 Total
---------- ---------- -------
<S> <C> <C> <C>
Tax-Free Washington Insured Fund .................. $77,949 $2,791 $80,740
</TABLE>

4. Capital Stock
Transactions in capital stock shares were as follows:
<TABLE>
<CAPTION>
TAX-FREE UTAH FUND TAX-FREE WASHINGTON INSURED FUND
-------------------------------- -----------------------------------
EIGHT EIGHT
YEAR MONTHS YEAR YEAR MONTHS YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
8/31/99 8/31/98 12/31/97 8/31/99 8/31/98 12/31/97
<S> <C> <C> <C> <C> <C> <C>
Shares sold:
Class A ........................................ 11,568 10,066 18,541 87,856 10,134 38,633
Class B ........................................ 9,852 2,835 12,225 32,827 31,122 50,130
Class C ........................................ -- -- -- 1,444 21,312 4,447

Shares issued upon reinvestment of distributions
from net investment income and net realized
gain on investments:
Class A ........................................ 3,824 2,657 5,592 5,795 3,273 6,061
Class B ........................................ 1,890 1,044 1,701 3,068 1,719 1,911
Class C ........................................ -- -- -- 843 276 86
---------- ---------- ---------- ---------- ---------- ----------
27,134 16,602 38,059 131,833 67,836 101,268
---------- ---------- ---------- ---------- ---------- ----------
Shares repurchased:
Class A ........................................ (50,898) (52,281) (95,952) (12,980) (20,291) (55,657)
Class B ........................................ (15,574) -- (1,374) (15,012) (2,728) (12,744)
Class C ........................................ -- -- -- (9,025) (1,963) --
---------- ---------- ---------- ---------- ---------- ----------
(66,472) (52,281) (97,326) (37,017) (24,982) (68,401)
---------- ---------- ---------- ---------- ---------- ----------
Net increase (decrease) ........................... (39,338) (35,679) (59,267) 94,816 42,854 32,867
========== ========== ========== ========== ========== ==========
</TABLE>

<PAGE>

for tax-exempt income 21

NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------

5. Lines of Credit
The Funds have a committed line of credit for the following amounts:

Tax-Free Utah Fund ............................. $200,000
Tax-Free Washington Insured Fund ............... 200,000

No amounts were outstanding at August 31, 1999, or at any time during the fiscal
year.

6. Credit And Market Risk
The Funds concentrate their investments in securities mainly issued by each
specific states' 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.

7. Fund Liquidation
On September 16, 1999, the Board of Directors of Voyageur Investment Trust voted
to liquidate the Tax-Free Utah Fund and Tax-Free Washington Insured Fund. The
planned liquidation date is November 18, 1999, at which time the net assets of
the Funds will be distributed to shareholders on that date.

8. Tax Information (Unaudited)
The information set forth is for each Fund's fiscal year as required by federal
laws. Shareholders, however, must report distributions on a calendar year basis
for income tax purposes, which may include distributions for portions of two
fiscal years of a Fund. Accordingly, the information needed by shareholders for
income tax purposes will be sent to them in early 2000. Please consult your tax
advisor for proper treatment of this information.

For the fiscal year ended August 31, 1999, each Fund designates as long term
capital gains, ordinary income and tax-exempt income distributions paid during
the year as follows:
<TABLE>
<CAPTION>
LONG TERM ORDINARY TAX TOTAL
CAPITAL GAINS INCOME EXEMPT DISTRIBUTIONS
FUND DISTRIBUTIONS DISTRIBUTIONS INTEREST (TAX BASIS)
- --------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Tax-Free Utah
Fund 14% -- 86% 100%
Tax-Free Washington
Insured Fund -- -- 100% 100%
</TABLE>

<PAGE>

22 for tax-exempt income

REPORT OF INDEPENDENT AUDITORS
- --------------------------------------------------------------------------------
TO THE SHAREHOLDERS AND BOARD OF DIRECTORS

VOYAGEUR INVESTMENT TRUST - DELAWARE TAX-FREE UTAH FUND

VOYAGEUR INVESTMENT TRUST - DELAWARE TAX-FREE WASHINGTON INSURED FUND

We have audited the accompanying statements of net assets of Delaware Tax-Free
Utah Fund and Delaware Tax-Free Washington Insured Fund (the "Funds") as of
August 31, 1999, and the related statements of operations for the year then
ended, the statements of changes in net assets for each of the periods indicated
therein, and financial highlights for each of the periods presented from January
1, 1997 through August 31, 1999. These financial statements and the financial
highlights are the responsibility of the Funds' management. Our responsibility
is to express an opinion on these financial statements and financial highlights
based on our audits. The financial highlights for the periods presented through
December 31, 1996 were audited by other auditors whose reports thereon dated
February 14, 1997 expressed unqualified opinions on those financial highlights.

We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements and financial highlights. Our procedures included confirmation of
securities owned as of August 31, 1999, by correspondence with the custodian and
brokers. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of each
of the respective Funds at August 31, 1999, the results of their operations for
the year then ended, the changes in their net assets for each of the periods
indicated therein, and their financial highlights for each of the periods
presented from January 1, 1997 through August 31, 1999, in conformity with
generally accepted accounting principles.

/s/ Ernst & Young LLP

Philadelphia, Pennsylvania
October 1,1999

<PAGE>
for tax-exempt income 23

PROXY RESULTS (UNAUDITED)
- --------------------------------------------------------------------------------

Voyageur Investment Trust shareholders voted on the following proposals at the
annual meeting of shareholders on March 17, 1999, or as adjourned. The
description of each proposal and number of shares voted are as follows:

1. To elect the Voyageur Investment Trust Board of Directors.

SHARES SHARES VOTED
VOTED WITHHELD
FOR AUTHORITY
------------------------------
Wayne A. Stork ................................. 556,726 35,951
Jeffrey J. Nick * .............................. 556,726 35,951
Walter P. Babich ............................... 556,726 35,951
Anthony D. Knerr ............................... 556,726 35,951
Ann R. Leven ................................... 556,726 35,951
W. Thacher Longstreth .......................... 556,726 35,951
Thomas F. Madison .............................. 556,726 35,951
Charles E. Peck ................................ 556,726 35,951

- ----------------------
* Jeffrey J. Nick resigned from Board of Directors on June 4, 1999.

2. To approve the redesignation of the investment objective from fundamental to
non-fundamental.

FOR AGAINST ABSTAIN
------------------------------
Tax-Free Utah Fund ............................. 145,724 0 21,897
Tax-Free Washington Insured Fund ............... 184,553 7,963 6,353

3. To approve standardized fundamental investment restrictions (proposal
involves separate votes on seven sub-proposals 3A-3G)

3A.To adopt a new fundamental investment restriction concerning concentration of
the investments in the same industry.

FOR AGAINST ABSTAIN
------------------------------
Tax-Free Utah Fund ............................. 145,724 0 21,897
Tax-Free Washington Insured Fund ............... 197,128 312 1,429

3B.To adopt a new fundamental investment restriction concerning borrowing money
and issuing senior securities.

FOR AGAINST ABSTAIN
-----------------------------
Tax-Free Utah Fund ............................... 145,724 0 21,897
Tax-Free Washington Insured Fund ................. 195,406 0 3,463

<PAGE>

3C.To adopt a new fundamental investment restriction concerning underwriting.

FOR AGAINST ABSTAIN
---------------------------
Tax-Free Utah Fund ............................. 145,724 0 21,897
Tax-Free Washington Insured Fund ............... 195,507 1,933 1,429

3D.To adopt a new fundamental investment restriction concerning investments in
real estate.

FOR AGAINST ABSTAIN
--------------------------
Tax-Free Utah Fund ............................. 145,724 0 21,897
Tax-Free Washington Insured Fund ............... 193,473 3,967 1,429

3E.To adopt a new fundamental investment restriction concerning investments in
commodities.

FOR AGAINST ABSTAIN
-------------------------
Tax-Free Utah Fund ............................. 145,724 0 21,897
Tax-Free Washington Insured Fund ............... 190,392 7,048 1,429

3F.To adopt a new fundamental investment restriction concerning lending by the
Fund.

FOR AGAINST ABSTAIN
-------------------------
Tax-Free Utah Fund ............................. 145,724 0 21,897
Tax-Free Washington Insured Fund ............... 190,704 4,702 3,463

3G.To reclassify all current fundamental investment restrictions as
non-fundamental.

FOR AGAINST ABSTAIN
------------------------
Tax-Free Utah Fund ............................. 145,724 0 21,897
Tax-Free Washington Insured Fund ............... 192,145 3,261 3,463

4. To approve a new investment management agreement with Delaware Management
Company for the Funds.

FOR AGAINST ABSTAIN
-------------------------
Tax-Free Utah Fund ............................. 145,724 0 21,897
Tax-Free Washington Insured Fund ............... 194,179 0 4,690

5. To ratify the selection of Ernst & Young LLP, as the independent auditors for
Voyageur Investment Trust.

FOR AGAINST ABSTAIN
-------------------------
472,897 0 34,338

6. To approve the restructuring of Voyageur Investment Trust from a
Massachusetts Business Trust into a Maryland Corporation.

FOR AGAINST ABSTAIN
-------------------------
338,795 0 27,695

<PAGE>

D E L A W A R E I N V E S T M E N T S F A M I L Y OF F U N D S

FOR GROWTH OF CAPITAL
Delaware Select Growth Fund
Delaware Trend Fund
Delaware DelCap Fund
Delaware Small Cap Value Fund
Delaware U.S. Growth Fund
Delaware Growth Stock Fund
Delaware Tax-Efficient Equity Fund
Delaware Social Awareness Fund

FOR TOTAL RETURN
Delaware Blue Chip Fund
Delaware Devon Fund
Delaware Growth and Income Fund
Delaware Decatur Equity Income Fund
Delaware REIT Fund
Delaware Balanced Fund

FOR INTERNATIONAL DIVERSIFICATION
Delaware Emerging Markets Fund
Delaware New Pacific Fund
Delaware Overseas Equity Fund
Delaware International Equity Fund
Delaware Global Equity Fund
Delaware Global Bond Fund

<PAGE>

FOR CURRENT INCOME
Delaware Delchester Fund
Delaware High-Yield Opportunities Fund
Delaware Strategic Income Fund Delaware
Corporate Bond Fund
Delaware Extended Duration Bond Fund
Delaware American Government Bond Fund
Delaware U.S. Government Securities Fund
Delaware Limited-Term Government Fund

FOR TAX-EXEMPT INCOME
Delaware National High-Yield Municipal Bond Fund
Delaware Tax-Free USA Fund
Delaware Tax-Free Insured Fund
Delaware Tax-Free USA Intermediate Fund
Delaware State Tax-Free Funds*

MONEY MARKET FUNDS
Delaware Cash Reserve
Delaware Tax-Free Money Fund

ASSET ALLOCATION FUNDS
Delaware Foundation Funds
Growth Portfolio
Balanced Portfolio
Income Portfolio

* Available for the following states: Arizona, California, Colorado, Florida,
Idaho, Iowa, Kansas, Minnesota, Missouri, North Dakota, New Jersey,
New Mexico, New York, Ohio, Oregon, Pennsylvania, Utah, Washington, Wisconsin.
Insured and intermediate bond funds are available in selected states.

funds

<PAGE>

THIS ANNUAL REPORT IS FOR THE INFORMATION OF DELAWARE TAX-FREE UTAH FUND AND
DELAWARE TAX-FREE
Washington Insured Fund shareholders, but it may be used with prospective
investors when preceded or accompanied by a current Prospectus for Delaware
Tax-Free Utah Fund or Delaware Tax-Free Washington Insured Fund and the Delaware
Investments Performance Update for the most recently completed calendar quarter.
The prospectus sets forth details about charges, expenses, investment objectives
and operating policies of each Fund. You should read the prospectus carefully
before you invest or send money. 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 each Fund will fluctuate so that shares, when
redeemed, may be worth more or less than their original cost.

Board of Trustees

WAYNE A. STORK
Chairman
Delaware Investments Family of Funds
Philadelphia, PA

WALTER P. BABICH
Board Chairman, Citadel Constructors, Inc.
King of Prussia, PA

DAVID K. DOWNES
President and Chief Executive Officer
Delaware Investments Family of Funds
Philadelphia, PA

JOHN H. DURHAM
Partner, Complete Care Services
Horsham, PA

ANTHONY D. KNERR
Consultant, Anthony Knerr & Associates
New York, NY

ANN R. LEVEN
Treasurer, National Gallery of Art
Washington, DC

THOMAS F. MADISON
President and Chief Executive Officer
MLM Partners, Inc.
Minneapolis, MN

CHARLES E. PECK
Secretary/Treasurer, Enterprise Homes, Inc.
Fredericksburg, VA

JAN L. YEOMANS
Vice President and Treasurer
3M Corporation
St. Paul, Minnesota

<PAGE>

Affiliated Officers

RICHARD J. FLANNERY
Executive Vice President and General Counsel
Delaware Investments Family of Funds
Philadelphia, PA

BRUCE D. BARTON
President and Chief Executive Officer
Delaware Distributors, L.P.
Philadelphia, PA

ERIC E. MILLER
Senior Vice President, Secretary
and Deputy General Counsel
Delaware Investments Family of Funds
Philadelphia, PA

directors
& officers

INVESTMENT MANAGER

Delaware Management Company
Philadelphia, Pennsylvania

INTERNATIONAL AFFILIATE
Delaware International Advisers Ltd.
London, England

NATIONAL DISTRIBUTOR
Delaware Distributors, L.P.
Philadelphia, Pennsylvania

SHAREHOLDER SERVICING,
DIVIDEND DISBURSING
AND TRANSFER AGENT
Delaware Service Company, Inc.
Philadelphia, Pennsylvania

1818 Market Street
Philadelphia, PA 19103-3682

(photo of globe)

<PAGE>

[PHOTO OF GLOBES]

When used with prospective investors, this report must be preceded or
accompanied by a current Delaware Tax-Free Utah Fund and Delaware Tax-Free
Washington Insured Fund Prospectus and the Delaware Investments Performance
Update for the most recently completed calendar quarter. For a prospectus of any
other mutual fund from Delaware Investments, contact your financial adviser or
Delaware.

For Shareholders
1.800.523.1918

For Securities Dealers
1.800.362.7500

For Financial Institutions
Representatives Only
1.800.659.2265

www.delawareinvestments.com

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 Fund 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 Fund are not bank or credit union deposits.

DELAWARE
INVESTMENTS
- ---------------------
Philadelphia o London

Printed in the USA
on recycled paper

(2201)J5190
AR-UTWA[8/99]PPL10/99