<PAGE>
FOR TAX-EXEMPT INCOME
Tax-Free Florida Fund
Tax-Free Florida Insured Fund
Tax-Free New York Fund
service and guidance
professional management
goals
1999
Semi-Annual Report
DELAWARE(SM)
INVESTMENTS
- ---------------------
Philadelphia o London
<PAGE>
for tax-
exempt
income
2
March 12, 1999
Dear Shareholder:
DURING THE FIRST HALF OF FISCAL 1999, global economic uncertainty changed the
landscape for fixed income investing. Concerns about credit risk during the late
summer and early fall of 1998 drove foreign and domestic investors to the safety
and liquidity of U.S. Treasuries. Treasury prices rose as a result, pushing bond
yields to record lows.
Yields on municipal bonds fell modestly compared to Treasury yields. This
created what we considered attractive buying opportunities as the typical gap
between yields on municipal bonds and taxable fixed income securities narrowed
significantly.
By late October, at the height of the Treasury market's price rally, longer
term municipal bonds offered as much as 98% of the income potential of
comparable Treasuries. Although the gap has widened since then, as of fiscal
year end 30-year municipal bonds were still yielding about 89% of the yields on
Treasuries. Traditionally, 83% has marked the normal relationship between
municipal bonds and Treasuries. (Source: Municipal Market Data)
Over the past six months, we increased the average duration on Tax-Free
Florida Fund and Tax-Free New York Fund, striving to take advantage of higher
yields available on bonds at the longer end of the maturity range.
Since last fall, new issuance of municipal bonds has tapered off. This gave
the market time to absorb last year's $285 billion in total municipal bond
supply--the second largest annual volume in the market's history. The state of
New York led the nation with $36.5 billion or 12.8% of last year's total volume.
Refunding activity--up 42% since 1997--contributed to the large supply.
Cumulative Total Return
- --------------------------------------------------------------------------------
Six Months Ended
February 28, 1999
- --------------------------------------------------------------------------------
Tax-Free Florida Fund A Class +1.78%
Lehman Brothers Municipal Bond Index +2.62%
Lipper Florida Municipal Debt Fund Average (63 funds) +1.77%
- --------------------------------------------------------------------------------
Tax-Free Florida Insured Fund A Class +2.37%
Lehman Brothers Insured Bond Index +2.54%
Lipper Florida Insured Fund Average (15 funds) +2.10%
- --------------------------------------------------------------------------------
Tax-Free New York Fund A Class +2.16%
Lehman Brothers Municipal Bond Index +2.62%
Lipper New York Municipal Debt Fund Average (99 funds) +1.91%
- --------------------------------------------------------------------------------
All performance shown above is at net asset value and assumes reinvestment of
distributions. For complete performance information for all Classes, see pages 7
and 8. Each index shown above is unmanaged. You cannot invest directly in an
index. The Lehman Brothers indexes include bonds of various qualities from many
states.
<PAGE>
for tax-
exempt
income
3
Just as homeowners take advantage of low interest rates to refinance their
mortgages, municipalities can refinance bonds to raise capital that is then used
to pay off older bonds with higher interest rates. Many states have used lower
interest rates to reduce existing debt payments.
On the pages that follow, Patrick Coyne and Mitchell Conery--the Funds'
portfolio managers--review key events in the municipal bond market during the
past six months and each Fund's current positioning. They also share their
outlook for the remainder of fiscal 1999.
We thank you for your investment, and look forward to reporting to you again
next fall.
Sincerely,
/s/ Jeffrey J. Nick
- -------------------
JEFFREY J. NICK
Chairman, President and
Chief Executive Officer
Delaware Investments Family of Funds
Jeffrey J. Nick Named Chairman
On December 17, 1998, Jeffrey J. Nick was named Chairman of the Delaware
Investments Family of Funds. He replaces Wayne A. Stork who has retired as
Chairman of the Board of Directors, but continues to serve as a Board Member.
Mr. Nick was named President and Chief Executive Officer of Delaware Investments
Family of Funds in October 1997. He has been CEO of Lincoln National Investment
Companies, an indirect parent company of Delaware Investments, since October
1996 and previously managed Lincoln's operations in the United Kingdom. Mr. Nick
holds an MBA from the University of Chicago and a Bachelor of Arts degree from
Princeton University.
<PAGE>
for tax-
exempt
income
4
Portfolio Managers' Review
PATRICK P. COYNE AND
MITCHELL L. CONERY
Vice Presidents/Senior Portfolio Managers
March 12, 1999
MUNICIPAL BONDS STILL
OFFER VALUE
As economic and currency problems escalated in Russia and Asia last summer,
investors sought refuge in U.S. Treasury bonds. Bond prices rose and the yield
on the 30-year U.S. Treasury hit a historic low of 4.75% in October. Falling
Treasury yields allowed municipal bond yields to nearly catch up to Treasuries.
By October, 30-year AAA (the highest quality rating) general obligation
municipal bonds yielded as much as 98% of the yield available from comparable
maturity Treasuries. We considered this a compelling value given that the
interest on municipal bonds is exempt from federal income tax.
As we finished the first half of fiscal 1999, the yield on the 30-year U.S.
Treasury had risen to 5.57%, once again widening the yield gap between
Treasuries and municipal bonds. However, with 30-year tax-exempt bonds still
yielding more than their historic average of 83% of Treasuries, we believe
municipal bonds remain attractively priced compared to Treasuries.
IMPROVING CREDIT QUALITY
ADDS APPEAL
Other reasons municipal bonds appear attractive, in our view, are the financial
strength of state and local governments and the improving credit quality of
their debt issues. Over the past year, credit quality upgrades have exceeded
downgrades by a seven-to-one margin, according to Standard and Poor's.
During the past six months, the difference between yields of bonds with
a quality rating of AAA (the highest rating available) and those with lower
ratings has narrowed. Under these conditions, we felt it more prudent to
purchase higher quality bonds because we were not being sufficiently rewarded
for the added risk of owning lower grade bonds. The table on page 5 reflects our
focus on higher credit quality.
STRATEGIC POSITIONING
TAX-FREE FLORIDA FUND
AND TAX-FREE FLORIDA
INSURED FUND
During the first fiscal half, we lengthened the average duration (sensitivity to
interest rates) of Tax-Free Florida Fund.
<PAGE>
for tax-
exempt
income
5
Despite a relatively conservative positioning, Tax-Free Florida Fund and
Tax-Free Florida Insured kept pace with their peers.
As interest rates declined in late fall, we began to increase Tax-Free
Florida Fund's duration slightly. As of February 28, Tax-Free Florida Fund's
average duration was 9.2 years, up 1.5 years since August 31. Our goal was to
increase the Funds' income potential.
We remain focused on high-grade bonds so that as we strive to increase the
Funds' income potential, we are not increasing our credit risks. At the end of
February, over 86% of Tax-Free Florida Fund's net assets was allocated to bonds
rated investment-grade (bonds with ratings of BBB or higher), just as in August.
Tax-Free Florida Insured Fund was exclusively invested in insured municipal
bonds, in keeping with the Fund's investment policies. Insured bonds guarantee
the payment of principal and interest. Approximately 75% of all new municipal
bonds issued in Florida are insured, more than in any other state.
TAX-FREE NEW YORK FUND
Under the leadership of Governor George Pataki, the strength of New York State's
economy has improved in recent years. Today, it accounts for nearly eight
percent of the nation's gross domestic product and is the 10th largest economy
in the world, according to data available from the Governor's office.
AS LONG AS LONG-TERM BONDS OFFER A SIGNIFICANT YIELD PREMIUM OVER SHORT-TERM
BONDS, WE WILL PROBABLY MAINTAIN EACH FUND'S LARGER AVERAGE DURATION.
PORTFOLIO CREDIT QUALITY
- --------------------------------------------------------------------------------
FEBRUARY 28, 1999
Tax-Free Tax-Free Tax-Free
Florida Florida Insured New York
Fund Fund Fund
- --------------------------------------------------------------------------------
AAA 58.23% 100.00% 43.55%
AA 15.44% 0.00% 7.85%
A 6.26% 0.00% 30.14%
BBB 6.65% 0.00% 18.46%
BB &B 0.00% 0.00% 0.00%
Not Rated 13.42% 0.00% 0.00%
<PAGE>
for tax-
exempt
income
6
In 1998, New York was the nation's principal source of municipal bonds--over
$36 billion worth. Pre-refunded bonds are bonds issued by municipalities to
refinance existing debt at lower interest rates and are secured by an escrow
fund consisting of U.S. government securities. They made up a large portion of
the issuance in New York, led by the $3.4 billion refinancing by the Long Island
Power Authority (LIPA) to retire older revenue bonds.
While we did not own LIPA, many of the securities we held were pre-refunded.
As of February 28, pre-refunded bonds represented approximately 24% of net
assets and many had relatively high coupon rates (the stated rate of interest on
the bond) that have added nicely to the Fund's dividend.
We have increased the average duration of Tax-Free New York Fund. As of
February 28, the Fund's average duration was 8.2 years. Tax-Free New York was
able to outpace its peers and its index during the first half of this fiscal
year.
MARKET OUTLOOK
We expect to continue our strategy of extending average duration, consistent
with each Fund's objective, as long as we can significantly increase income
potential through this approach. Although we still think municipal bonds are
relatively inexpensive based on their income potential compared to Treasuries,
we also see the real value opportunities in longer maturity bonds where interest
rates are currently higher.
To help manage the risks of investing in longer term bonds, we continue to
focus on securities with investment-grade quality ratings. With state and local
government credit quality improving, we believe municipal bonds remain a sound
choice for most investors seeking to increase their income potential without
increasing their income tax liability.
PORTFOLIO HIGHLIGHTS
- --------------------------------------------------------------------------------
FEBRUARY 28, 1999
Tax-Free Tax-Free Tax-Free
Florida Florida Insured New York
Fund Fund Fund
- --------------------------------------------------------------------------------
Number of Securities 47 52 25
Average Effective Maturity 15.22 years 8.86 years 13.95 years
Average Duration 9.2 years 6.0 years 8.2 years
AMT Income* 6.71% 21.70% 7.42%
Average Coupon 5.70% 6.07% 5.90%
Current 30-Day SEC Yield**
A Class 4.29% 3.56% 4.08%
B Class 3.70% 2.95% 3.50%
C Class 3.70% 2.95% 3.50%
*Amount of income subject to the federal alternative minimum tax for the six
months ended February 28, 1999.
**Calculated according to Securities and Exchange Commission Guidelines.
<PAGE>
for tax-
exempt
income
7
Performance Summary
TAX-FREE FLORIDA FUND PERFORMANCE
- --------------------------------------------------------------------------------
AVERAGE ANNUAL RETURNS THROUGH FEBRUARY 28, 1999
Lifetime One Year
- --------------------------------------------------------------------------------
Class A (Est. 3/2/95)
Excluding Sales Charge +8.57% +5.94%
Including Sales Charge +7.53% +1.98%
- --------------------------------------------------------------------------------
Class B (Est. 9/15/95)
Excluding Sales Charge +7.35% +5.34%
Including Sales Charge +6.62% +1.34%
- --------------------------------------------------------------------------------
Class C (Est. 4/22/95)
Excluding Sales Charge 7.34% +5.24%
Including Sales Charge 7.34% +4.24%
TAX-FREE FLORIDA INSURED FUND PERFORMANCE
- --------------------------------------------------------------------------------
AVERAGE ANNUAL RETURNS THROUGH FEBRUARY 28, 1999
Lifetime Five Years One Year
- --------------------------------------------------------------------------------
Class A (Est. 1/1/92)
Excluding Sales Charge +7.56% +6.22% +5.66%
Including Sales Charge +6.99% +5.42% +1.69%
- --------------------------------------------------------------------------------
Class B (Est. 3/11/94)
Excluding Sales Charge +6.05% +4.97%
Including Sales Charge +5.73% +0.97%
- --------------------------------------------------------------------------------
Class C (Est. 9/30/97)
Excluding Sales Charge +3.13% +1.41%
Including Sales Charge +3.13% +0.41%
Returns reflect reinvestment of distributions and any applicable sales charges
as noted below. Return and share value will fluctuate so that shares, when
redeemed, may be worth more or less than their original cost. Class B and C
results excluding sales charge assumes either that contingent sales charges did
not apply or the investment was not redeemed. Past performance is not a
guarantee of future results. Each Fund may invest in municipal securities that
generate income subject to the federal alternative minimum tax.
Voluntary expense limitations were in effect for the periods shown. Returns
would have been lower without the limitations.
Class A shares of Tax-Free Florida Fund, Tax-Free Florida Insured Fund and
Tax-Free New York Fund reflect the effect of 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 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 redeemed within
12 months, a 1% contingent deferred sales charge applies.
<PAGE>
for tax-
exempt
income
8
TAX-FREE NEW YORK FUND PERFORMANCE
- --------------------------------------------------------------------------------
AVERAGE ANNUAL RETURNS THROUGH FEBRUARY 28, 1999
Lifetime Ten Years Five Years One Year
- --------------------------------------------------------------------------------
Class A (Est. 11/6/87)
Excluding Sales Charge +7.28% +6.94% +4.84% +5.11%
Including Sales Charge +6.92% +6.92% +4.04% +1.21%
- --------------------------------------------------------------------------------
Class B (Est. 11/14/94)
Excluding Sales Charge +5.85% +4.33%
Including Sales Charge +5.46% +0.34%
- --------------------------------------------------------------------------------
Class C (Est. 4/26/95)
Excluding Sales Charge 4.72% +4.24%
Including Sales Charge 4.72% +3.24%
Returns reflect reinvestment of distributions and any applicable sales charges
as noted below. Return and share value will fluctuate so that shares, when
redeemed, may be worth more or less than their original cost. Class B and C
results excluding sales charge assumes either that contingent sales charges did
not apply or the investment was not redeemed. Past performance is not a
guarantee of future results. Each Fund may invest in municipal securities that
generate income subject to the federal alternative minimum tax.
Voluntary expense limitations were in effect for the periods shown. Returns
would have been lower without the limitations.
Class A shares of Tax-Free Florida Fund, Tax-Free Florida Insured Fund and
Tax-Free New York Fund reflect the effect of 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 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 redeemed within
12 months, a 1% contingent deferred sales charge applies.
<PAGE>
for tax-exempt income 9
Financial Statements
VOYAGEUR INVESTMENT TRUST
DELAWARE - VOYAGEUR TAX-FREE FLORIDA FUND
STATEMENT OF NET ASSETS
FEBRUARY 28, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
Principal Market
Amount Value
--------------------------------------------------
MUNICIPAL BONDS - 101.41%
CONTINUING CARE / RETIREMENT REVENUE BONDS - 4.31%
Jacksonville Health Facilities Authority (Cypress
Village Project National Benevolent Association)
Series A 6.125% 12/1/16 ........................... $ 200,000 $ 213,826
Palm Beach Health Facilities Authority (Adult
Community Services) 5.625% 11/15/20 ............... 250,000 258,763
Volusia County Health Facilities Authority (John
Knox Village) Series A 6.00% 6/1/17 ............... 250,000 274,120
----------
746,709
----------
HIGHER EDUCATION REVENUE BONDS - 4.85%
Florida State University 5.00% 5/1/18 ................ 400,000 396,564
Pinellas County Educational Facilities Authority
(Clearwater Christian College Private Placement)
8.00% 2/1/11 ...................................... 400,000 443,044
----------
839,608
----------
HIGHWAY REVENUE BONDS - 1.48%
Orlando & Orange County Expressway Authority
Refunding, Junior Lien 5.95% 7/1/23 ............... 250,000 256,093
----------
256,093
----------
HOSPITALS REVENUE BONDS - 9.68%
Hillsborough County (Tampa General Hospital)
6.375% 10/1/13 (FSA) .............................. 100,000 109,155
Lee County Hospital Board (Lee Memorial Hospital)
6.35% 3/26/20 (MBIA) .............................. 500,000 542,670
Leesburg Regional Medical Center Project Series A
6.125% 7/1/12 ..................................... 100,000 107,272
North Miami Health Facilities Authority (Catholic
Health Services) 6.00% 8/15/16
(LOC Suntrust Bank-Miami) ......................... 500,000 532,240
Palm Beach County Florida Health Facilities
Hospital 5.00% 12/1/23 ............................ 250,000 244,425
Puerto Rico Industrial Tourist Educational
Medical & Envrionmental Control Facilities
(Mennonite General Hospital)
Series A 5.625% 7/1/27 ............................ 140,000 141,567
----------
1,677,329
----------
HOUSING REVENUE BONDS - 9.05%
Dade County Housing Finance Authority
(Lincoln Fields Apartments Section 8)
6.25% 7/1/24 (FHA / MBIA) ......................... 500,000 523,170
Duval Housing Finance Authority (St. Augustine
Apartments) 6.00% 3/1/21 .......................... 300,000 314,433
Florida Housing Finance Agency (Homeowner Mortgage)
Series 1B 6.00% 7/1/17 (FHA / VA) ................. 190,000 199,538
Florida Housing Finance Agency (The Vineyards
Project) Series H 6.40% 11/1/15 ................... 500,000 530,630
----------
1,567,771
----------
<PAGE>
- --------------------------------------------------------------------------------
Principal Market
Amount Value
--------------------------------------------------
MUNICIPAL BONDS (CONTINUED)
INDUSTRIAL DEVELOPMENT REVENUE BONDS - 1.97%
Dunes Community Development District-Intracoastal
Waterway Bridge (Guarantor: ITT Industries
Corporation) 5.50% 10/1/07 ........................ $175,000 $ 183,341
Jacksonville Sewer & Solid Waste Disposal
Facilities Authority (Anheuser Busch Project)
5.875% 2/1/36 (AMT) ............................... 150,000 157,358
----------
340,699
----------
LEASE/CERTIFICATES OF PARTICIPATION - 13.87%
Brevard County School Board
5.50% 7/1/21 (AMBAC) .............................. 750,000 780,465
Hillsborough County Florida School Board
(Master Lease Program) Series A
5.00% 7/1/23 (MBIA) ............................... 900,000 886,239
Miami-Dade County Florida School Board
Series A 5.00% 8/1/26 ............................. 750,000 735,698
----------
2,402,402
----------
OTHER REVENUE BONDS - 15.91%
Bay City Florida Sales Tax Revenue
4.75% 9/1/23 ...................................... 500,000 478,375
Dade County Special Obligation Series B
5.00% 10/1/35 (AMBAC) ............................. 200,000 195,718
Lake Bernadette Community Development
District (Special Assessment) Series A
8.00% 5/1/17 ...................................... 250,000 262,853
Miami, Dade County (Special Obligation Sub)
Series B 5.00% 10/1/37 (MBIA) ..................... 250,000 244,553
Northern Palm Beach County Improvement
District (Special Assessment-Abacoa Water
Control) 7.20% 8/1/16 (FGIC) ...................... 300,000 330,063
Orange County (Florida Tourist) Series B
4.75% 10/1/20 ..................................... 500,000 482,315
Orlando Florida (Special Assesment) Series B
5.25% 5/1/05 ...................................... 500,000 498,665
Tampa Palms Community Development District
(Richmond Place Project) 7.50% 5/1/18 ............. 250,000 263,145
----------
2,755,687
----------
*PRE-REFUNDED/ESCROWED TO MATURITY - 4.72%
Miramar Wastewater Improvement
6.75% 10/1/25-04 (FGIC) ........................... 100,000 115,509
Palm Beach County Health Facilites Authority
(Good Samaritan Health System)
6.30% 10/1/22-05 .................................. 130,000 147,944
St Lucie County (Special Assessment
South Hutchinson Island)
6.10% 11/1/20-05 (AG) ............................. 150,000 171,506
<PAGE>
10 for tax-exempt income
STATEMENT OF NET ASSETS (CONTINUED)
- --------------------------------------------------------------------------------
Principal Market
Amount Value
--------------------------------------------------
MUNICIPAL BONDS (CONTINUED)
*PRE-REFUNDED/ESCROWED TO MATURITY (CONTINUED)
Volusia Florida Industrial Development Authority
(Bishops Glen Project Retirement Health
Facilities) 7.50% 11/1/16-06 .................. $325,000 $ 382,616
-----------
817,575
-----------
RECREATIONAL FACILITY REVENUE BONDS - 13.64%
Saint Johns County Industrial Development
(Authority Professional Golf Hall of Fame)
Series A 5.50% 3/1/17 (MBIA) ..................... 750,000 785,228
Village Center Community Development District
(Florida Recreational Revenue)
Series A 5.50% 11/1/10 (MBIA) .................... 750,000 832,538
Village Center Community Development
(District Florida Recreational Revenue)
Series A 5.00% 11/1/21 (MBIA) .................... 750,000 744,923
-----------
2,362,689
-----------
TRANSPORTATION REVENUE BONDS - 4.04%
Florida State Mid-Bay Bridge Authority
Series D 6.125% 10/1/22 .......................... 160,000 165,894
Greater Orlando Aviation Authority
(Orlando Airport Facilities)
5.50% 10/1/17 (FGIC/AMT) ......................... 500,000 533,135
-----------
699,029
-----------
UTILITY REVENUE BONDS - 4.72%
Puerto Rico Electric Power Authority
Series X 5.50% 7/1/25 ............................ 90,000 93,298
Tallahassee Florida Energy Systems
Series A 4.75% 10/1/26 ........................... 500,000 475,645
Village Center Community Development District
(Florida Utilities Revenue) Series B
5.00% 10/1/23 .................................... 250,000 247,893
-----------
816,836
-----------
WASTE DISPOSAL REVENUE BONDS - 3.36%
Dade County Solid Waste Special Obligation
5.125% 10/1/10 (AMBAC) ........................... 200,000 213,197
Polk County Industrial Development Authority
Solid Waste Disposal (Tampa Electric Company
Project) 5.85% 12/1/30 (AMT) ..................... 350,000 368,554
-----------
581,751
-----------
WATER & SEWER REVENUE BONDS - 9.81%
Jacksonville Electric Authority Revenue Water
& Sewer Systems Series A 5
625% 10/1/37 ..................................... 500,000 512,830
Key West Sewer 5.70% 10/1/26 (FGIC) ............... 100,000 106,200
North Springs, District of Florida Water &
Sewer 4.75% 10/1/23 .............................. 200,000 191,326
Peace River/Manasota Regional Water
Supply Authority Series A
5.00% 10/1/28 (MBIA) ............................. 900,000 889,002
-----------
1,699,358
-----------
Total Municipal Bonds (cost $16,905,313) .......... 17,563,536
-----------
<PAGE>
- --------------------------------------------------------------------------------
TOTAL MARKET VALUE OF SECURITIES OWNED - 101.41%
(Cost $16,905,313) ..................................... $17,563,536
LIABILITIES NET OF RECEIVABLES AND
OTHER ASSETS - (1.41%) ................................. (243,664)
-----------
NET ASSETS APPLICABLE TO 1,552,340 SHARES
($.01 PAR VALUE) OUTSTANDING - 100.00% ................. $17,319,872
===========
NET ASSET VALUE - TAX-FREE FLORIDA FUND A CLASS
($11,874,219 / 1,064,643 SHARES) ....................... $11.15
======
NET ASSET VALUE - TAX-FREE FLORIDA FUND B CLASS
($4,497,139 / 402,704 SHARES) .......................... $11.17
======
NET ASSET VALUE - TAX-FREE FLORIDA FUND C CLASS
($948,514 / 84,993 SHARES) ............................. $11.16
======
- ------------
*For Pre-Refunded Bonds, the stated maturity is followed by the year in which
each bond is pre-refunded.
- ------------
Summary of Abbreviations:
AG - Asset Guaranty
AMBAC - Insured by the AMBAC Indemnity Corporation
AMT - Alternative Minimum Tax
FGIC - Insured by the Financial Guaranty Insurance Company
FHA - Insured by the Federal Housing Authority
FSA - Insured by the Financial Security Assurance
LOC - Letter Of Credit
MBIA - Insured by the Municipal Bond Insurance Association
VA - Insured by the Veterans Administration
COMPONENTS OF NET ASSETS AT FEBRUARY 28, 1999:
Common Stock, $.01 par value, 10,000,000,000
shares authorized to the Fund with 1,000,000,000
shares allocated to Tax-Free Florida Fund A Class,
1,000,000,000 shares allocated to Tax-Free Florida Fund
B Class, and 1,000,000,000 shares allocated to Tax-Free
Florida Fund C Class ..................................... $16,677,123
Accumulated net realized loss on investments ................ (15,474)
Net unrealized appreciation of investments .................. 658,223
-----------
Total Net Assets ............................................ $17,319,872
===========
NET ASSET VALUE AND OFFERING PRICE FOR TAX-FREE
FLORIDA FUND A CLASS
Net asset value per share (A) ............................... $11.15
Sales charge (3.75% of offering price or 3.86% of
amount invested per share) (B) ........................... 0.43
------
Offering price .............................................. $11.58
======
- ------------
(A) Net asset value per share 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 - VOYAGEUR TAX-FREE FLORIDA INSURED FUND
STATEMENT OF NET ASSETS
FEBRUARY 28, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
PRINCIPAL MARKET
AMOUNT VALUE
----------- -----------
MUNICIPAL BONDS - 99.52%
GENERAL OBLIGATION BONDS - 4.26%
Florida Board of Education (FSA)
6.10% 6/1/24 ..................................... $ 5,500,000 $ 6,224,020
-----------
6,224,020
-----------
HOSPITAL REVENUE BONDS - 20.63%
Alachua County Health Facilities Shands Teaching
Hospital Series A (MBIA) 5.80% 12/1/26 ........... 5,000,000 5,412,750
Hillsborough County-Tampa General Hospital (FSA)
6.375% 10/1/13 ................................... 3,600,000 3,929,580
Indian River County Hospital District
(FSA) 6.10% 10/1/18 .............................. 3,000,000 3,339,810
Lee County Hospital Board - Lee Memorial Hospital
(MBIA) 6.35% 3/26/20 ............................. 10,000,000 10,853,400
Tallahassee Health Facilities - Tallahassee
Memorial Regional Medical Center Series B (MBIA)
6.00% 12/1/15 .................................... 2,500,000 2,697,025
Tampa Florida Health Systems - Catholic Health-A-1
4.875% 11/15/23 .................................. 4,000,000 3,868,640
-----------
30,101,205
-----------
HOUSING REVENUE BONDS - 20.88%
Florida State Housing Finance Agency Crossings
Indian Run Apartments HUD Series V (AMT)
LOC First Union National Bank of North
Carolina (AMBAC) 6.10% 12/1/26 ................... 750,000 796,305
Florida State Housing Finance Agency Crossings
Indian Run Apartments HUD Series V (AMT)
LOC First Union National Bank of North
Carolina (AMBAC) 6.20% 12/1/36 ................... 1,790,000 1,914,011
Florida State Housing Finance Agency Landings at
Sea Forest Apartments FHA Series T (AMT)
LOC First Union National Bank of North
Carolina (AMBAC) 5.85% 12/1/18 ................... 500,000 525,725
Florida State Housing Finance Agency Landings at
Sea Forest Apartments FHA Series T (AMT)
LOC First Union National Bank of North
Carolina (AMBAC) 6.05% 12/1/36 ................... 700,000 743,323
Florida State Housing Finance Agency Leigh
Meadows Apartments Section 8 Series N
(AMT) LOC First Union National Bank of North
Carolina (AMBAC) 6.20% 9/1/26 .................... 2,765,000 2,953,020
<PAGE>
PRINCIPAL MARKET
AMOUNT VALUE
----------- -----------
MUNICIPAL BONDS (CONTINUED)
HOUSING REVENUE BONDS (CONTINUED)
Florida State Housing Finance Agency Leigh
Meadows Apartments Section 8 Series N
(AMT) LOC First Union National Bank of North
Carolina (AMBAC) 6.30% 9/1/36 .................... $2,000,000 $ 2,150,800
Florida Housing Finance Agency Mariner Club
Apartments-Series K-1 (AMT) (AMBAC)
6.25% 9/1/26 ..................................... 2,000,000 2,158,780
Florida State Housing Finance Agency Mariner
Club Apartments Series K-1 (AMT) (AMBAC)
6.375% 9/1/36 .................................... 3,500,000 3,784,305
Florida State Housing Finance Agency Riverfront
Apartments Section 8 Series A (AMT)
(AMBAC) 6.25% 4/1/37 ............................. 1,000,000 1,073,390
Florida State Housing Finance Agency Spinnaker
Cove Apartments Series G (AMT) LOC First
Union National Bank of North Carolina
(AMBAC) 6.50% 7/1/36 ............................. 500,000 543,450
Florida State Housing Finance Agency Sterling
Palms Apartments Series D-1 (AMT) LOC
First Union National Bank of North Carolina
(AMBAC) 6.30% 12/1/16 ............................ 1,000,000 1,082,540
Florida State Housing Finance Agency Sterling
Palms Apartments Series D-1 (AMT) LOC
First Union National Bank of North Carolina
(AMBAC) 6.40% 12/1/26 ............................ 1,500,000 1,620,465
Florida State Housing Finance Agency Sterling
Palms Apartments Series D-1 (AMT) LOC
First Union National Bank of North Carolina
(AMBAC) 6.50% 6/1/36 ............................. 6,540,000 7,104,140
Florida State Housing Finance Agency
Woodbridge Apartments Series L (AMT)
LOC First Union National Bank of North
Carolina (AMBAC) 6.15% 12/1/26 ................... 1,750,000 1,864,643
Florida State Housing Finance Agency
Woodbridge Apartments Series L (AMT)
LOC First Union National Bank of North
Carolina (AMBAC) 6.25% 6/1/36 .................... 2,000,000 2,146,100
-----------
30,460,997
-----------
<PAGE>
12 for tax-exempt income
STATEMENT OF NET ASSETS (CONTINUED)
- --------------------------------------------------------------------------------
PRINCIPAL MARKET
AMOUNT VALUE
----------- -----------
MUNICIPAL BONDS (CONTINUED)
LEASE/CERTIFICATES OF PARTICIPATION - 5.25%
Brevard County School Board (AMBAC)
5.50% 7/1/21 ................................... $ 1,250,000 $ 1,300,775
**Palm Beach County School Board, Inverse
Floating Certificate (AMBAC)
6.98% 8/1/15 ................................... 5,875,000 6,363,624
-----------
7,664,399
-----------
*PRE-REFUNDED/ESCROWED TO MATURITY - 21.00%
Florida State Turnpike Authority (FGIC)
6.30% 7/1/12-02 ................................ 2,000,000 2,188,860
Manatee County School Board (MBIA)
6.125% 7/1/16-06 ............................... 2,000,000 2,304,340
Miramar Wastewater Improvement (FGIC)
6.75% 10/1/25-04 ............................... 2,425,000 2,801,093
North Port Utilities System (FGIC)
6.15% 10/1/09-02 ............................... 1,500,000 1,656,360
North Port Utilities System (FGIC)
6.25% 10/1/22-02 ............................... 5,000,000 5,537,850
Palm Beach Solid Waste Authority (MBIA)
6.00% 12/1/07-02 ............................... 1,000,000 1,089,010
Palm Beach Solid Waste Authority (MBIA)
6.25% 12/1/08-02 ............................... 2,000,000 2,201,160
Port St Lucie Utility System (FGIC)
6.00% 9/1/24-04 ................................ 5,000,000 5,553,900
Sunrise Utility System Series A (AMBAC)
5.75% 10/1/26-06 ............................... 5,000,000 5,604,000
Titusville Water & Sewer (MBIA)
6.20% 10/1/14-04 ............................... 1,500,000 1,707,750
-----------
30,644,323
-----------
SPECIAL UTILITY REVENUE BONDS - 0.74%
New Smyrna Beach Utilities Commission (FGIC)
6.00% 10/1/13 .................................. 1,000,000 1,077,460
-----------
1,077,460
-----------
STATE AGENCY REVENUE BONDS - 0.47%
Ocoee Florida Revenue Refunding and
Improvement Transportation
4.50% 10/1/23 .................................. 750,000 691,275
-----------
691,275
-----------
TRANSPORTATION REVENUE BONDS - 4.84%
**Florida State Turnpike Authority, Inverse Floating
Certificate (FGIC) 6.72% 7/1/12 ................ 5,000,000 5,446,050
**Orlando & Orange County Expressway, Inverse
Floating Certificate (AMBAC)
6.72% 7/1/12 ................................... 1,500,000 1,611,000
-----------
7,057,050
-----------
<PAGE>
PRINCIPAL MARKET
AMOUNT VALUE
----------- -----------
MUNICIPAL BONDS (CONTINUED)
WATER & SEWER REVENUE BONDS - 2.95%
Coral Springs Water & Sewer-Series A (FGIC)
6.00% 9/1/10 .................................... $ 1,000,000 $ 1,080,670
Jupiter Water Series A (AMBAC)
6.25% 10/1/12 ................................... 2,000,000 2,144,200
North Springs Improvement District Water
Revenue 4.75% 10/1/23 ........................... 1,125,000 1,076,220
4,301,090
OTHER REVENUE BONDS - 18.50%
Canaveral Port Authority (FGIC)
6.00% 6/1/12 .................................... 1,000,000 1,074,000
Florida State Board of Education Lottery
Revenue 4.50% 7/1/18 ............................ 5,000,000 4,698,100
Florida State Division Board of Finance
Department of General Services
Department of Environmental Resources
Preservation 2000 Series A (AMBAC)
5.75% 7/1/13 .................................... 10,000,000 10,831,100
Jupiter Sales Tax (AMBAC)
6.375% 9/1/20 ................................... 2,500,000 2,677,500
Marion County Public Improvement Sales Tax
(MBIA) 6.125% 12/1/08 ........................... 1,000,000 1,078,290
Nassau County Optional Gas Tax-Fuel Sales Tax
(FGIC) 6.00% 3/1/09 ............................. 1,000,000 1,076,030
Ocala Optional Gas Tax-Fuel Sales Tax
(AMBAC) 6.00% 12/1/09 ........................... 1,000,000 1,089,010
Orange County Florida Tourist Revenue
4.75% 10/1/20 ................................... 1,000,000 964,630
Osceola County Celebration Community
Development District Assessment
(MBIA) 6.10% 5/1/16 ............................. 1,000,000 1,088,060
Osceola County Enterprise Community
Development District-Special Assessment
(MBIA) 6.10% 5/1/16 ............................. 1,000,000 1,088,060
Pembroke Pines Capital Improvement
(AMBAC) 5.95% 10/1/20 ........................... 1,225,000 1,323,245
-----------
26,988,025
-----------
Total Municipal Bonds (cost $132,628,638) .......... 145,209,844
-----------
<PAGE>
for tax-exempt income 13
STATEMENT OF NET ASSETS (CONTINUED)
- --------------------------------------------------------------------------------
TOTAL MARKET VALUE OF SECURITIES OWNED - 99.52%
(COST $132,628,638) ..................................... $145,209,844
RECEIVABLES AND OTHER ASSETS NET OF LIABILITIES - 0.48% .... 701,476
------------
NET ASSETS APPLICABLE TO 12,827,911 SHARES
($.01 PAR VALUE) OUTSTANDING - 100.00% .................. $145,911,320
============
NET ASSET VALUE - TAX-FREE FLORIDA INSURED FUND A CLASS
($141,410,462 / 12,432,157 SHARES) ...................... $11.37
NET ASSET VALUE - TAX-FREE FLORIDA INSURED FUND B CLASS ======
($4,450,580 / 391,336 SHARES) ........................... $11.37
NET ASSET VALUE - TAX-FREE FLORIDA INSURED FUND C CLASS ======
($50,278 / 4,418 SHARES) ................................ $11.38
======
- -------------------
* For Pre-Refunded bonds, the stated maturity is followed by the year in which
each bond is pre-refunded.
** Inverse Floaters represent a security that pays interest at rates that
increase (decrease) with a decrease (increase) in a specific index. Interest
rates disclosed are in effect February 28,1999.
- -------------------
Summary of Abbreviations:
AMBAC - Insured by the Ambac Indemnity Corporation
AMT - Alternative Minimum Tax
FGIC - Insured by the Financial Guaranty Insurance Company
FSA - Insured by Financial Security Assurance
MBIA - Insured by the Municipal Bond Insurance Association
LOC - Letter of Credit
COMPONENTS OF NET ASSETS AT FEBRUARY 28, 1999:
Common stock, $.01 par value, unlimited shares authorized
to the Tax-Free Florida Insured Fund .................... $142,114,198
Distributions in excess of net investment income ........... (6,789)
Accumulated net realized loss on investments ............... (8,777,295)
Net unrealized appreciation of investments ................. 12,581,206
------------
Total net assets ........................................... $145,911,320
============
NET ASSET VALUE AND OFFERING PRICE FOR TAX-FREE
FLORIDA INSURED FUND A CLASS
Net asset value per share (A) .............................. $11.37
Sales charge (3.75% of offering price or 3.87% of
amount invested per share) (B) .......................... 0.44
------
Offering price ............................................. $11.81
======
- -------------------
(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>
VOYAGER MUTUAL FUNDS, INC.
DELAWARE-VOYAGEUR TAX-FREE NEW YORK FUND
STATEMENT OF NET ASSETS
FEBRUARY 28, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
PRINCIPAL MARKET
AMOUNT VALUE
----------- -----------
MUNICIPAL BONDS - 96.97%
CITY AGENCIES REVENUE BONDS - 8.95%
New York City Transitional Finance Authority
Revenue (Future Tax) Series A
5.00% 5/15/27 ................................. $500,000 $491,785
New York State (Local Government Assistance
Refunded) Series B 4.875% 4/1/20 .............. 600,000 587,214
-----------
1,078,999
-----------
ELECTRIC/UTILITY REVENUE BONDS - 6.30%
Puerto Rico Electric Power Authority Series EE
4.75% 7/1/24 .................................. 800,000 760,376
-----------
760,376
-----------
GENERAL OBLIGATION BONDS - 3.79%
New York City Series C 5.375% 11/15/27 .......... 450,000 457,470
-----------
457,470
-----------
HIGHER EDUCATION REVENUE BONDS - 14.50%
New York State Dorm Authority
Revenue 7.50% 5/15/11 ......................... 400,000 497,552
New York State Dorm Authority
Revenue (Pooled Capital Program)
7.80% 12/01/05 (FGIC) ......................... 161,000 164,490
New York State Dorm Authority Revenue -
Series F 5.25% 7/01/18 ........................ 600,000 614,898
New York State Dorm Authority Revenue
(State University Educational Facilities)
Series B 4.75% 5/15/28 ........................ 500,000 472,085
-----------
1,749,025
-----------
HOSPITAL REVENUE BONDS - 11.12%
New York State Dorm Authority Revenue
(Chapel Oaks) 5.45% 7/1/26
(LOC Allied Irish Bank) ....................... 450,000 456,809
New York State Dorm Authority Revenue
(Mental Health) Series D
5.90% 2/15/12 ................................. 250,000 275,265
New York State Dorm Authority Revenue
(Millard Fillmore Hospital)
5.375% 2/1/32 (AMBAC) ......................... 450,000 459,878
New York State Medical Care Facility Finance
Agency Revenue (Mental Health)
7.70% 2/15/18 ................................. 145,000 148,806
-----------
1,340,758
-----------
INDUSTRIAL DEVELOPMENT REVENUE BONDS - 3.82%
New York City Industrial Development Agency
(Brooklyn Navy Yard Cogen Partners)
5.75% 10/1/36 (AMT) ........................... 450,000 461,070
-----------
461,070
-----------
*PRE-REFUNDED/ESCROWED TO MATURITY - 24.10%
New York City Series F
8.25% 11/15/17-01 ............................. 690,000 784,068
New York State (Local Government Assistance
Corporation) Series B 7.50% 4/1/20-01 ......... 600,000 660,114
<PAGE>
14 for tax-exempt income
STATEMENT OF NET ASSETS (CONTINUED)
- --------------------------------------------------------------------------------
PRINCIPAL MARKET
AMOUNT VALUE
----------- -----------
MUNICIPAL BONDS (CONTINUED)
*PRE-REFUNDED/ESCROWED TO MATURITY (CONTINUED)
New York State Thruway Authority
Service Contract Revenue (Local Highway
& Bridge) 6.25% 4/1/14-05 ..................... $500,000 $569,465
New York State Urban Development Corporation
Revenue Correctional Facilities
7.375% 1/1/18-02 .............................. 600,000 671,184
United Nations Development Corporation
Senior Lien Series A 6.00% 7/1/12-03 .......... 200,000 221,642
-----------
2,906,473
-----------
TERRITORIAL REVENUE BONDS - 5.90%
Puerto Rico Commonwealth Highway & Transportation
Authority Highway Revenue Series Y
5.50% 7/1/36 .................................. 475,000 509,143
Puerto Rico Public Building Authority Revenue
Guaranteed Government Facilities Series B
5.25% 7/1/21 .................................. 200,000 202,530
-----------
711,673
-----------
TRANSPORTATION REVENUE BONDS - 10.58%
Metropolitan Transportation Authority New York
Service Contract (Commuter Facilities) Series 0
5.75% 7/1/13 .................................. 400,000 440,764
Metropolitan Transportation Authority New York
(Transit Facilities Revenue) Series B
4.75% 7/1/26 .................................. 250,000 237,160
New York City Industrial Development Agency
(British Airways) 5.25% 12/1/32 ............... 600,000 598,067
-----------
1,275,991
-----------
WATER & SEWER REVENUE BONDS - 7.91%
New York City Municipal Water Financial Authority
(Water & Sewer Systems Revenue) Series A
4.75% 6/15/31 ................................. 500,000 472,400
New York City Municipal Water Financial
Authority (Water & Sewer System Revenue)
Series B 5.75% 6/15/29 ........................ 450,000 481,685
-----------
954,085
-----------
Total Municipal Bonds (cost $11,021,555) 11,695,920
-----------
NUMBER
OF SHARES
---------
SHORT-TERM INVESTMENTS - 2.15%
Norwest Advantage Municipal Money
Market Fund ..................................... 259,878 259,878
-----------
Total Short-Term Investments (cost $259,878) ....... 259,878
-----------
<PAGE>
TOTAL MARKET VALUE OF SECURITIES OWNED - 99.12%
(COST $11,281,433) ........................................ $11,955,798
RECEIVABLES AND OTHER ASSETS NET OF LIABILITIES - 0.88% ...... 106,009
-----------
NET ASSETS APPLICABLE TO 1,136,159 SHARES
($.01 PAR VALUE) OUTSTANDING - 100% ....................... $12,061,807
===========
NET ASSET VALUE-TAX-FREE NEW YORK FUND A CLASS
($10,902,511 / 1,026,781 SHARES) .......................... $10.62
NET ASSET VALUE-TAX-FREE NEW YORK FUND B CLASS ======
($1,080,237 / 101,914 SHARES) ............................. $10.60
NET ASSET VALUE-TAX-FREE NEW YORK FUND C CLASS ======
($79,059 / 7,464 SHARES) .................................. $10.59
======
- -------------------
* 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
AMT - Alternative Minimum Tax
FGIC - Insured by the Financial Guaranty Insurance Company
LOC - Letter of Credit
COMPONENTS OF NET ASSETS AT FEBRUARY 28, 1999:
Common stock, $.01 par value, 100,000,000,000 shares
authorized to the Fund with 10,000,000,000 shares allocated to
Tax-Free New York Fund A Class, 10,000,000,000 shares allocated
to Tax-Free New York Fund B Class, and 10,000,000,000 shares
allocated to Tax-Free New York Fund C Class ................. $11,368,886
Accumulated net realized gain on investments ................... 19,042
Distribution in excess of Net Investment Income ................ (486)
Net unrealized appreciation of investments ..................... 674,365
-----------
Total Net Assets ............................................... $12,061,807
===========
Net Asset Value and Offering Price for Tax-Free
New York Fund A Class
Net asset value per share (A) .................................. $10.62
Sales charge (3.75% of offering price or 3.86% of
amount invested per share) (B) .............................. 0.41
Offering price ................................................. $11.03
- -------------------
(A) Net asset value per share 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 15
<TABLE>
<CAPTION>
STATEMENTS OF OPERATIONS
SIX MONTHS ENDED FEBRUARY 28, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
VOYAGEUR INVESTMENT TRUST VOYAGEUR INVESTMENT TRUST VOYAGEUR MUTUAL FUNDS, INC.
TAX-FREE FLORIDA FUND TAX-FREE FLORIDA INSURED FUND TAX-FREE NEW YORK FUND
------------------------- ----------------------------- ---------------------------
INVESTMENT INCOME:
<S> <C> <C> <C>
Interest ................................... $412,447 $4,091,331 $319,989
EXPENSES:
Management fees ............................ 39,909 369,258 28,347
Distribution Expense ....................... 36,348 201,137 17,024
Dividend disbursing and transfer
agent fees and expenses .................. 10,322 27,873 8,350
Registration fees .......................... 750 1,000 2,680
Reports and statements to shareholders ..... 3,750 3,000 1,800
Accounting and administration .............. 6,318 6,111 2,311
Custodian fees ............................. 805 500 597
Professional fees .......................... 2,199 4,000 4,930
Taxes (other than taxes on income) ......... 200 2,000 --
Directors' fees ............................ 525 528 300
Other ...................................... 5,228 237 2,212
-------- ---------- --------
106,354 615,644 68,551
Less expenses absorbed by Delaware
Management Co. ........................... (44,881) -- (18,103
-------- ---------- --------
Total operating expenses ................... 61,473 615,644 50,448
Interest expense ........................... -- 7,666 241
-------- ---------- --------
Total expenses ............................. 61,473 623,310 50,689
-------- ---------- --------
NET INVESTMENT INCOME ...................... 350,974 3,468,021 269,300
-------- ---------- --------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS:
Net realized gain (loss) on investments .... (13,918) 1,076,483 28,696
Net change in unrealized appreciation/
depreciation of investments .............. (82,357) (1,026,064) (61,396
-------- ---------- --------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS .......................... (96,275) 50,419 (32,700
-------- ---------- --------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS ......................... $254,699 $3,518,440 $236,600
======== ========== ========
</TABLE>
See accompanying notes
<PAGE>
16 for tax-exempt income
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VOYAGEUR INVESTMENT TRUST
TAX-FREE FLORIDA FUND
-----------------------------------------
SIX MONTHS EIGHT MONTHS YEAR
ENDED ENDED ENDED
2/28/99 8/31/98 12/31/97
(UNAUDITED)
INCREASE IN NET ASSETS FROM
OPERATIONS:
<S> <C> <C> <C>
Net investment income ........................... 350,974 382,405 $430,343
Net realized gain (loss)
on investments ................................ (13,918) 17,721 28,365
Net change in unrealized appreciation/
depreciation of investments ................... (82,357) 222,208 380,127
----------- ----------- -----------
Net increase in net assets
resulting from operations ..................... 254,699 622,334 838,835
----------- ----------- -----------
DISTRIBUTION TO SHAREHOLDERS FROM:
Net investment income:
A Class ...................................... (259,362) (296,074) (330,131)
B Class ...................................... (77,923) (77,237) (100,213)
C Class ...................................... (13,689) (9,128) (3,278)
Net realized gain on investment
transactions:
A Class ...................................... (11,362) (4,266) (11,878)
B Class ...................................... (4,026) (1,470) (4,598)
C Class ...................................... (621) (246) (239)
----------- ----------- -----------
(366,983) (388,421) (450,337)
----------- ----------- -----------
Capital share transactions:
Proceeds from shares sold:
A Class ...................................... 3,463,448 2,841,918 2,855,133
B Class ...................................... 1,703,056 1,428,837 1,142,910
C Class ...................................... 404,750 419,228 110,984
Netasset value of shares issued
upon reinvestment of dividends from
net investment income and net
realized gain on investment
transactions:
A Class ...................................... 125,743 120,860 109,685
B Class ...................................... 30,281 14,952 18,887
C Class ...................................... 5,857 4,259 2,636
----------- ----------- -----------
5,733,135 4,830,054 4,240,235
----------- ----------- -----------
Cost of shares repurchased:
A Class ...................................... (1,627,133) (651,778) (1,502,655)
B Class ...................................... (574,287) (814,622) (213,644)
C Class ...................................... (9,984) (11,000) --
----------- ----------- -----------
(2,211,404) (1,477,400) (1,716,299)
----------- ----------- -----------
Increase (decrease) in net assets
derived from capital share
transactions .................................. 3,521,731 3,352,654 2,523,936
----------- ----------- -----------
NET INCREASE (DECREASE)
IN NET ASSETS: ................................ 3,409,447 3,586,567 2,912,434
NET ASSETS:
Beginning of period ............................. 13,910,425 10,323,858 7,411,424
----------- ----------- -----------
End of period ................................... $17,319,872 $13,910,425 $10,323,858
=========== =========== ===========
<PAGE>
[RESTUBBED FROM PREVIOUS TABLE]
<CAPTION>
VOYAGEUR INVESTMENT TRUST
TAX-FREE FLORIDA INSURED FUND
--------------------------------------------
SIX MONTHS EIGHT MONTHS YEAR
ENDED ENDED ENDED
2/28/99 8/31/98 12/31/97
(UNAUDITED)
INCREASE IN NET ASSETS FROM
OPERATIONS:
<S> <C> <C> <C>
Net investment income ........................... 3,468,021 4,948,531 $8,878,219
Net realized gain (loss)
on investments ................................ 1,076,483 1,552,120 2,172,843
Net change in unrealized appreciation/
depreciation of investments ................... (1,026,064) 280,912 5,978,357
------------ ------------ ------------
Net increase in net assets
resulting from operations ..................... 3,518,440 6,781,563 17,029,419
------------ ------------ ------------
DISTRIBUTION TO SHAREHOLDERS FROM:
Net investment income:
A Class ...................................... (3,387,641) (4,846,965) (8,815,981)
B Class ...................................... (86,910) (101,566) (165,230)
C Class ...................................... (259) -- (200)
Net realized gain on investment
transactions:
A Class ...................................... -- -- --
B Class ...................................... -- -- --
C Class ...................................... -- -- --
------------ ------------ ------------
(3,474,810) (4,948,531) (8,981,411)
------------ ------------ ------------
Capital share transactions:
Proceeds from shares sold:
A Class ...................................... 2,928,520 2,118,847 4,527,089
B Class ...................................... 764,663 758,358 820,580
C Class ...................................... 50,000 11 21,663
Netasset value of shares issued
upon reinvestment of dividends from
net investment income and net
realized gain on investment
transactions:
A Class ...................................... 1,022,278 1,398,970 2,516,492
B Class ...................................... 33,547 34,650 49,154
C Class ...................................... 226 -- 126
------------ ------------ ------------
4,799,234 4,310,836 7,935,104
------------ ------------ ------------
Cost of shares repurchased:
A Class ...................................... (9,242,270) (20,739,783) (44,980,021)
B Class ...................................... (550,898) (582,617) (333,793)
C Class ...................................... -- -- (22,065)
------------ ------------ ------------
(9,793,168) (21,322,400) (45,335,879)
------------ ------------ ------------
Increase (decrease) in net assets
derived from capital share
transactions .................................. (4,993,934) (17,011,564) (37,400,775)
------------ ------------ ------------
NET INCREASE (DECREASE)
IN NET ASSETS: ................................ (4,950,304) (15,178,532) (29,352,767)
NET ASSETS:
Beginning of period ............................. 150,861,624 166,040,156 195,392,923
------------ ------------ ------------
End of period ................................... $145,911,320 $150,861,624 $166,040,156
============ ============ ============
<PAGE>
[RESTUBBED FROM PREVIOUS TABLE]
<CAPTION>
VOYAGEUR MUTUAL FUNDS, INC.
TAX-FREE NEW YORK FUND
----------------------------------------
SIX MONTHS EIGHT MONTHS YEAR
ENDED ENDED ENDED
2/28/99 8/31/98 12/31/97
(UNAUDITED)
INCREASE IN NET ASSETS FROM
OPERATIONS:
<S> <C> <C> <C>
Net investment income ........................... 269,300 340,336 $556,331
Net realized gain (loss)
on investments ................................ 28,696 20,031 187,711
Net change in unrealized appreciation/
depreciation of investments ................... (61,396) 22,820 (71,772)
----------- ----------- ----------
Net increase in net assets
resulting from operations ..................... 236,600 383,187 672,270
----------- ----------- ----------
DISTRIBUTION TO SHAREHOLDERS FROM:
Net investment income:
A Class ...................................... (254,208) (331,533) (548,002)
B Class ...................................... (14,057) (7,311) (8,649)
C Class ...................................... (1,521) (1,658) (2,665)
Net realized gain on investment
transactions:
A Class ...................................... (24,808) (9,366) (154,974)
B Class ...................................... (1,574) (428) (2,715)
C Class ...................................... (180) (54) (902)
----------- ----------- ----------
(296,348) (350,350) (717,907)
----------- ----------- ----------
Capital share transactions:
Proceeds from shares sold:
A Class ...................................... 1,505,537 750,401 657,442
B Class ...................................... 679,747 308,323 72,748
C Class ...................................... 20,000 -- --
Netasset value of shares issued
upon reinvestment of dividends from
net investment income and net
realized gain on investment
transactions:
A Class ...................................... 213,404 255,096 574,581
B Class ...................................... 10,997 6,080 10,758
C Class ...................................... 1,701 1,717 3,708
----------- ----------- ----------
2,431,386 1,321,617 1,319,237
----------- ----------- ----------
Cost of shares repurchased:
A Class ...................................... (741,739) (619,981) (1,671,287)
B Class ...................................... (73,125) (15,315) (167,603)
C Class ...................................... -- -- (236)
----------- ----------- ----------
(814,864) (635,296) (1,839,126)
----------- ----------- ----------
Increase (decrease) in net assets
derived from capital share
transactions .................................. 1,616,522 686,321 (519,889)
----------- ----------- ----------
NET INCREASE (DECREASE)
IN NET ASSETS: ................................ 1,556,774 719,158 (565,526)
NET ASSETS:
Beginning of period ............................. 10,505,033 9,785,875 10,351,401
----------- ----------- ----------
End of period ................................... $12,061,807 $10,505,033 $9,785,875
=========== =========== ==========
</TABLE>
See accompanying notes
<PAGE>
for tax-exempt income 17
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Selected data for each share of the Fund outstanding throughout each period were
as follows:
<TABLE>
<CAPTION>
VOYAGEUR INVESTMENT TRUST
TAX-FREE FLORIDA FUND - CLASS A
-----------------------------------------------------------------
SIX MONTHS EIGHT MONTHS PERIOD FROM
ENDED ENDED YEAR ENDED 3/2/95(2)
2/28/99(1) 8/31/98(1) 12/31/97(4) 12/31/96 TO 12/31/95
(UNAUDITED)
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period ...................... $11.230 $11.020 $10.520 $10.730 $10.000
Income from investment operations:
Net investment income .................................. 0.266 0.374 0.591 0.590 0.470
Net realized and unrealized gain (loss) on investments . (0.068) 0.215 0.523 (0.210) 0.750
------- ------- ------- ------- -------
Total from investment operations ....................... 0.198 0.589 1.114 0.380 1.220
------- ------- ------- ------- -------
Less dividends and distributions:
Dividends from net investment income ................... (0.266) (0.374) (0.594) (0.590) (0.470)
Distributions from net realized gain on
investment transactions ............................... (0.012) (0.005) (0.020) - (0.020)
------- ------- ------- ------- -------
Total dividends and distributions ...................... (0.278) (0.379) (0.614) (0.590) (0.490)
------- ------- ------- ------- -------
Net asset value, end of period ............................ $11.150 $11.230 $11.020 $10.520 $10.730
======= ======= ======= ======= =======
Total Return(3) ........................................... 1.78% 5.44% 10.93% 3.74% 12.49%
Ratios and supplemental data:
Net assets, end of period (000 omitted) ................ $11,874 $9,988 $7,506 $5,761 $4,421
Ratio of expenses to average net assets ................ 0.58% 0.55% 0.56% 0.33% 0.32%(5)
Ratio of expenses to average net assets prior to
expense limitation .................................... 1.16% 1.10% 1.11% 1.25% 1.25%(5)
Ratio of net investment income to average net assets ... 4.78% 4.92% 5.53% 5.66% 5.26%(5)
Ratio of net investment income to average net assets
prior to expense limitation ........................... 4.20% 4.37% 4.98% 4.74% 4.33%(5)
Portfolio turnover ..................................... 18% 20% 19% 70% 64%
</TABLE>
- ---------------
(1) Ratios have been annualized and total return has not been annualized.
(2) Commencement of operations.
(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) Commencing May 1, 1997, Delaware Management Company replaced Voyageur Fund
Managers, Inc. as the Fund's investment manager.
(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>
VOYAGEUR INVESTMENT TRUST
TAX-FREE FLORIDA FUND - CLASS B
-----------------------------------------------------------------
SIX MONTHS EIGHT MONTHS PERIOD FROM
ENDED ENDED YEAR ENDED 3/2/95(2)
2/28/99(1) 8/31/98(1) 12/31/97(4) 12/31/96 TO 12/31/95
(UNAUDITED)
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period ...................... $11.240 $11.030 $10.530 $10.730 $10.370
Income from investment operations:
Net investment income .................................. 0.224 0.318 0.527 0.560 0.150
Net realized and unrealized gain (loss) on investments . (0.058) 0.215 0.531 (0.200) 0.380
------- ------- ------- ------- -------
Total from investment operations ....................... 0.166 0.533 1.058 0.360 0.530
------- ------- ------- ------- -------
Less dividends and distributions:
Dividends from net investment income ................... (0.224) (0.318) (0.538) (0.560) (0.150)
Distributions from net realized gain on
investment transactions ............................... (0.012) (0.005) (0.020) - (0.020)
------- ------- ------- ------- -------
Total dividends and distributions ...................... (0.236) (0.323) (0.558) (0.560) (0.170)
------- ------- ------- ------- -------
Net asset value, end of period ............................ $11.170 $11.240 $11.030 $10.530 $10.730
======= ======= ======= ======= =======
Total Return(3) ........................................... 1.49% 4.91% 10.35% 3.51% 5.10%
Ratios and supplemental data:
Net assets, end of period (000 omitted) ................ $4,497 $3,368 $2,685 $1,635 $101
Ratio of expenses to average net assets ................ 1.33% 1.30% 1.10% 0.76% 0.44%(5)
Ratio of expenses to average net assets prior to
expense limitation .................................... 1.91% 1.85% 1.65% 2.00% 2.00%(5)
Ratio of net investment income to average net assets ... 4.03% 4.17% 4.99% 5.23% 4.88%(5)
Ratio of net investment income to average net assets
prior to expense limitation ........................... 3.45% 3.62% 4.44% 3.99% 3.32%(5)
Portfolio turnover ..................................... 18% 20% 19% 70% 64%
</TABLE>
- ---------------
(1) Ratios have been annualized and total return has not been annualized.
(2) Commencement of operations.
(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) Commencing May 1, 1997, Delaware Management Company replaced Voyageur Fund
Managers, Inc. as the Fund's investment manager.
(5) Annualized
See accompanying notes
<PAGE>
for tax-exempt income 19
FINANCIAL HIGHLIGHTS (CONTINUED)
- --------------------------------------------------------------------------------
Selected data for each share of the Fund outstanding throughout each period were
as follows:
<TABLE>
<CAPTION>
VOYAGEUR INVESTMENT TRUST
TAX-FREE FLORIDA FUND - CLASS C
-----------------------------------------------------------------
SIX MONTHS EIGHT MONTHS PERIOD FROM
ENDED ENDED YEAR ENDED 3/2/95(2)
2/28/99(1) 8/31/98(1) 12/31/97(4) 12/31/96 TO 12/31/95
(UNAUDITED)
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period ...................... $11.240 $11.020 $10.520 $10.730 $10.200
Income from investment operations:
Net investment income .................................. 0.224 0.318 0.511 0.370 0.330
Net realized and unrealized gain (loss) on investments . (0.068) 0.225 0.521 (0.210) 0.560
------- ------- ------- ------- -------
Total from investment operations ....................... 0.156 0.543 1.032 0.160 0.890
------- ------- ------- ------- -------
Less dividends and distributions:
Dividends from net investment income ................... (0.224) (0.318) (0.512) (0.370) (0.340)
Distributions from net realized gain on
investment transactions ............................... (0.012) (0.005) (0.020) - (0.020)
------- ------- ------- ------- -------
Total dividends and distributions ...................... (0.236) (0.323) (0.532) (0.370) (0.360)
------- ------- ------- ------- -------
Net asset value, end of period ............................ $11.160 $11.240 $11.020 $10.520 $10.730
======= ======= ======= ======= =======
Total Return(3) ........................................... 1.40% 5.01% 10.09% 2.97% 8.88%
Ratios and supplemental data:
Net assets, end of period (000 omitted) ................ $949 $554 $133 $16 $9
Ratio of expenses to average net assets ................ 1.33% 1.30% 1.31% 1.15% 1.11%(5)
Ratio of expenses to average net assets prior to
expense limitation .................................... 1.91% 1.85% 1.86% 2.00% 2.00%(5)
Ratio of net investment income to average net assets ... 4.03% 4.17% 4.78% 4.83% 4.57%(5)
Ratio of net investment income to average net assets
prior to expense limitation ........................... 3.45% 3.62% 4.23% 3.98% 3.68%(5)
Portfolio turnover ..................................... 18% 20% 19% 70% 64%
</TABLE>
- ---------------
(1) Ratios have been annualized and total return has not been annualized.
(2) Commencement of operations.
(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) Commencing May 1, 1997, Delaware Management Company replaced Voyageur Fund
Managers, Inc. as the Fund's investment manager.
(5) Annualized
See accompanying notes
<PAGE>
20 for tax-exempt income
FINANCIAL HIGHLIGHTS (CONTINUED)
- --------------------------------------------------------------------------------
Selected data for each share of the Fund outstanding throughout each period were
as follows:
<TABLE>
<CAPTION>
VOYAGEUR INVESTMENT TRUST
TAX-FREE FLORIDA INSURED FUND - CLASS A
-----------------------------------------------------------------------------------------
SIX MONTHS EIGHT MONTHS YEAR YEAR YEAR TWO MONTHS YEAR
ENDED ENDED ENDED ENDED ENDED ENDED ENDED
2/28/99(1) 8/31/98(1) 12/31/97(3) 12/31/96 12/31/95 12/31/94 10/31/94
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period ..... $11.370 $11.240 $10.710 $10.940 $9.520 $9.640 $11.150
Income from investment operations:
Net investment income ................. 0.267 0.355 0.548 0.530 0.540 0.100 0.550
Net realized and unrealized
gain (loss) on investments ........... - 0.130 0.536 (0.230) 1.440 (0.120) (1.460)
------- ------- ------- ------- -------- -------- --------
Total from investment operations ...... 0.267 0.485 1.084 0.300 1.980 (0.020) (0.910)
------- ------- ------- ------- -------- -------- --------
Less dividends and distributions:
Dividends from net investment income .. (0.267) (0.355) (0.554) (0.530) (0.560) (0.090) (0.540)
Distributions from net realized gain
on investment transactions ........... - - - - - (0.010) (0.060)
------- ------- ------- ------- -------- -------- --------
Total dividends and distributions ..... (0.267) (0.355) (0.554) (0.530) (0.560) (0.100) (0.600)
------- ------- ------- ------- -------- -------- --------
Net asset value, end of period ........... $11.370 $11.370 $11.240 $10.710 $10.940 $9.520 $ 9.640
======= ======= ======= ======= ======== ======== ========
Total Return(2) .......................... 2.37% 4.38% 10.42% 2.90% 21.22% (0.11%) (8.38%)
Ratios and supplemental data:
Net assets, end of period
(000 omitted) ....................... $141,410 $146,659 $162,097 $192,171 $242,425 $240,228 $259,702
Ratio of expenses to average
net assets .......................... 0.82% 0.87% 0.79% 0.73% 0.51% 0.20%(4) 0.44%
Ratio of expenses to average net
assets prior to expense limitation .. 0.82% 1.05% 0.85% 0.96% 0.95% 1.06%(4) 0.96%
Ratio of net investment income
to average net assets ............... 4.72% 4.72% 5.07% 5.02% 5.24% 6.24%(4) 5.24%
Ratio of net investment income
to average net assets prior
to expense limitation ............... 4.72% 4.54% 5.01% 4.79% 4.80% 5.38%(4) 4.72%
Portfolio turnover .................... 16% 13% 15% 57% 101% 3% 49%
</TABLE>
- ---------------
(1) Ratios have been annualized and total return has not been annualized.
(2) 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.
(3) Commencing May 1, 1997, Delaware Management Company replaced Voyageur Fund
Managers, Inc. as the fund's investment manager.
(4) Annualized
See accompanying notes
<PAGE>
for tax-exempt income 21
FINANCIAL HIGHLIGHTS (CONTINUED)
- --------------------------------------------------------------------------------
Selected data for each share of the Fund outstanding throughout each period were
as follows:
<TABLE>
<CAPTION>
VOYAGEUR INVESTMENT TRUST
TAX-FREE FLORIDA
INSURED FUND - CLASS B
------------------------------------------------------------
SIX MONTHS EIGHT MONTHS YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED
2/28/99(1) 8/31/98(1) 12/31/97(4) 12/31/96 12/31/95
(UNAUDITED)
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period .................... $11.370 $11.230 $10.710 $10.940 $9.520
Income from investment operations:
Net investment income ................................ 0.225 0.299 0.477 0.480 0.500
Net realized and unrealized gain
(loss) on investments ............................... - 0.139 0.523 (0.230) 1.440
------- ------- ------- ------- -------
Total from investment operations ..................... 0.225 0.438 1.000 0.250 1.940
------- ------- ------- ------- -------
Less dividends and distributions:
Dividends from
net investment income ............................... (0.225) (0.298) (0.480) (0.480) (0.520)
Distributions from net realized gain
on investment transactions .......................... - - - - -
------- ------- ------- ------- -------
Total dividends and distributions .................... (0.225) (0.298) (0.480) (0.480) (0.520)
------- ------- ------- ------- -------
Net asset value, end of period .......................... $11.370 $11.370 $11.230 $10.710 $10.940
======= ======= ======= ======= =======
Total Return(3) ......................................... 1.99% 3.95% 9.58% 2.40% 20.76%
Ratios and supplemental data:
Net assets, end of period
(000 omitted) ...................................... $4,451 $4,202 $3,943 $3,222 $2,814
Ratio of expenses to average
net assets ......................................... 1.57% 1.62% 1.46% 1.24% 0.89%
Ratio of expenses to average
net assets prior to
expense limitation ................................. 1.57% 1.80% 1.52% 1.72% 1.68%
Ratio of net investment income
to average net assets .............................. 3.97% 3.97% 4.40% 4.51% 4.80%
Ratio of net investment income
to average net assets prior
to expense limitation .............................. 3.97% 3.79% 4.34% 4.03% 4.01%
Portfolio turnover ................................... 16% 13% 15% 57% 101%
</TABLE>
<PAGE>
[RESTUBED TABLE FOR ABOVE]
<TABLE>
<CAPTION>
VOYAGEUR INVESTMENT TRUST
TAX-FREE FLORIDA
INSURED FUND - CLASS C
-------------------------------------------------
TWO MONTHS PERIOD FROM 1/08/99(7)
ENDED 3/11/94(2) TO
12/31/94 TO 10/31/94 2/28/99
(Unaudited)
<S> <C> <C> <C>
Net asset value, beginning of period .................... $9.630 $10.640 $11.360
Income from investment operations:
Net investment income ................................ 0.090 0.310 0.066
Net realized and unrealized gain
(loss) on investments .............................. (0.110) (1.010) 0.013
------ ------- -------
Total from investment operations ..................... (0.020) (0.700) 0.079
------ ------- -------
Less dividends and distributions:
Dividends from
net investment income .............................. (0.080) (0.300) (0.059)
Distributions from net realized gain
on investment transactions ......................... (0.010) (0.010) -
------ ------- -------
Total dividends and distributions .................... (0.090) (0.310) (0.059)
------ ------- -------
Net asset value, end of period .......................... $9.520 $ 9.630 $11.380
====== ======= =======
Total Return(3) ......................................... (0.03%) (6.69%) (6)
Ratios and supplemental data:
Net assets, end of period
(000 omitted) ...................................... $1,477 $1,135 $50
Ratio of expenses to average
net assets .......................................... 0.59%(5) 1.00%(5) 1.57%
Ratio of expenses to average
net assets prior to
expense limitation ................................. 1.81%(5) 1.28%(5) 1.57%
Ratio of net investment income
to average net assets .............................. 5.68%(5) 4.63%(5) 3.97%
Ratio of net investment income
to average net assets prior
to expense limitation .............................. 4.46%(5) 4.35%(5) 3.97%
Portfolio turnover ................................... 3% 49% 16%
</TABLE>
- ----------
(1) Ratios have been annualized and total return has not been annualized.
(2) Commencement of operations.
(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) Commencing May 1, 1997, Delaware Management Company replaced Voyageur Fund
Managers, Inc. as the fund's investment manager.
(5) Annualized
(6) Total return has been omitted as management believes that such information
for this relatively short period is not meaningful.
(7) Resumption of operations. Florida Insured C Class was established on
September 29, 1997. However, the shareholders all liquidated by the end of
1997 and the Class was inactive until this date. See accompanying notes
<PAGE>
22 for tax-exempt income
FINANCIAL HIGHLIGHTS (CONTINUED)
- --------------------------------------------------------------------------------
Selected data for each share of the Fund outstanding throughout each period were
as follows:
<TABLE>
<CAPTION>
VOYAGEUR MUTUAL FUNDS, INC.
TAX-FREE NEW YORK FUND - CLASS A
------------------------------------------------------------------------
SIX MONTHS EIGHT MONTHS YEAR THREE MONTHS
ENDED ENDED ENDED ENDED YEAR ENDED
2/28/99(1) 8/31/98(1) 12/31/97(4) 12/31/96(2) 9/30/96 9/30/95
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period .................... $10.670 $10.640 $10.690 $10.720 $10.870 $10.740
Income from investment operations:
Net investment income ................................ 0.254 0.362 0.603 0.120 0.550 0.570
Net realized and unrealized gain
(loss) on investments .............................. (0.026) 0.040 0.128 0.010 (0.130) 0.170
------- ------- ------- ------- ------- -------
Total from investment operations ..................... 0.228 0.402 0.731 0.130 0.420 0.740
------- ------- ------- ------- ------- -------
Less dividends and distributions:
Dividends from net investment income ................. (0.254) (0.362) (0.606) (0.120) (0.550) (0.590)
Distributions from net realized gain
on investment transactions ......................... (0.024) (0.010) (0.175) (0.040) (0.020) (0.020)
------- ------- ------- ------- ------- -------
Total dividends and distributions .................... (0.278) (0.372) (0.781) (0.160) (0.570) (0.610)
------- ------- ------- ------- ------- -------
Net asset value, end of period .......................... $10.620 $10.670 $10.640 $10.690 $10.720 $10.870
======= ======= ======= ======= ======= =======
Total Return(3) ......................................... 2.16% 3.85% 7.09% 1.21% 3.94% 7.31%
Ratios and supplemental data:
Net assets, end of period
(000 omitted) ...................................... $10,903 $9,978 $9,563 $10,044 $10,548 $11,931
Ratio of expenses to average
net assets ......................................... 0.85% 1.00% 1.00% 0.97%(5) 1.34% 1.31%
Ratio of expenses to average
net assets prior to
expense limitation ................................. 1.17% 1.15% 1.39% 1.12%(5) 1.55% 1.82%
Ratio of net investment income
to average net assets .............................. 5.15% 5.12% 5.66% 5.31%(5) 5.14% 5.66%
Ratio of net investment income
to average net assets prior
to expense limitation .............................. 4.83% 4.97% 5.27% 5.16%(5) 4.93% 5.15%
Portfolio turnover ................................... 28% 21% 30% 5% 12% 10%
</TABLE>
<PAGE>
[RESTUBED TABLE FOR ABOVE]
<TABLE>
<CAPTION>
-------------------------
THREE MONTHS YEAR
ENDED ENDED
10/31/94 6/30/94
<S> <C> <C>
Net asset value, beginning of period .................... $10.810 $11.510
Income from investment operations:
Net investment income ................................ 0.150 0.620
Net realized and unrealized gain
(loss) on investments .............................. (0.060) (0.540)
------- -------
Total from investment operations ..................... 0.090 0.080
------- -------
Less dividends and distributions:
Dividends from net investment income ................. (0.160) (0.620)
Distributions from net realized gain
on investment transactions ......................... - (0.160)
------- -------
Total dividends and distributions .................... (0.160) (0.780)
------- -------
Net asset value, end of period .......................... $10.740 $10.810
======= =======
Total Return(3) ......................................... 0.79% 0.63%
Ratios and supplemental data:
Net assets, end of period
(000 omitted) ...................................... $12,797 $12,851
Ratio of expenses to average
net assets ......................................... 1.09%5 0.99%
Ratio of expenses to average
net assets prior to
expense limitation ................................. 1.09%5 1.09%
Ratio of net investment income
to average net assets .............................. 5.74%5 5.55%
Ratio of net investment income
to average net assets prior
to expense limitation .............................. 5.74%5 5.45%
Portfolio turnover ................................... 0% 4%
</TABLE>
- ----------
(1) Ratios have been annualized and total return has not been annualized.
(2) Effective November 16, 1996, the Fund's shareholders approved a change of
investment advisor from Fortis Advisers, Inc. to Voyageur Fund Managers,
Inc..
(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) Commencing May 1, 1997, Delaware Management Company replaced Voyageur Fund
Managers, Inc. as the Fund's investment manager.
(5) Annualized
See accompany notes
<PAGE>
for tax-exempt income 23
FINANCIAL HIGHLIGHTS (CONTINUED)
- --------------------------------------------------------------------------------
Selected data for each share of the Fund outstanding throughout each period were
as follows:
<TABLE>
<CAPTION>
VOYAGEUR MUTUAL FUNDS, INC.
TAX-FREE NEW YORK FUND - CLASS B
-------------------------------------------------------------------------
SIX MONTHS EIGHT MONTHS YEAR THREE MONTHS YEAR PERIOD FROM
ENDED ENDED ENDED ENDED ENDED 11/14/94(2)
2/28/99(1) 8/31/98(1) 12/31/97(5) 12/31/96(3) 12/31/95 TO 9/30/95
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period .................... $10.650 $10.610 $10.650 $10.690 $10.840 $10.340
Income from investment operations:
Net investment income ................................ 0.215 0.311 0.524 0.100 0.470 0.430
Net realized and unrealized gain (loss) on
investments ........................................ (0.026) 0.049 0.136 - (0.130) 0.540
------- ------- ------- ------- ------- -------
Total from investment operations ..................... 0.189 0.360 0.660 0.100 0.340 0.970
------- ------- ------- ------- ------- -------
Less dividends and distributions:
Dividends from net investment income ................. (0.215) (0.310) (0.525) (0.100) (0.470) (0.450)
Distributions from net realized gain on investment
transactions ....................................... (0.024) (0.010) (0.175) (0.040) (0.020) (0.020)
------- ------- ------- ------- ------- -------
Total dividends and distributions .................... (0.239) (0.320) (0.700) (0.140) (0.490) (0.470)
------- ------- ------- ------- ------- -------
Net asset value, end of period .......................... $10.600 $10.650 $10.610 $10.650 $10.690 $10.840
======= ======= ======= ======= ======= =======
Total Return(4) ......................................... 1.79% 3.44% 6.39% 0.95% 3.14% 9.46%
Ratios and supplemental data:
Net assets, end of period (000 omitted) .............. $1,080 $469 $167 $254 $448 $266
Ratio of expenses to average net assets .............. 1.60% 1.75% 1.75% 1.87%(6) 2.09% 2.09%(6)
Ratio of expenses to average net assets prior
to expense limitation .............................. 1.92% 1.90% 2.14% 2.00%(6) 2.30% 2.60%(6)
Ratio of net investment income to average net assets . 4.40% 4.37% 4.91% 4.43%(6) 4.39% 4.68%(6)
Ratio of net investment income to average net assets
prior to expense limitation ........................ 4.08% 4.22% 4.52% 4.30%(6) 4.18% 4.17%(6)
Portfolio turnover ................................... 28% 21% 30% 5% 12% 10%
</TABLE>
- ----------
(1) Ratios have been annualized and total return has not been annualized.
(2) Commencement of operations.
(3) Effective November 16, 1996, the Fund's shareholders approved a change of
investment advisor from Fortis Advisers, Inc. to Voyageur Fund Managers,
Inc.
(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) Commencing May 1, 1997, Delaware Management Company replaced Voyageur Fund
Managers, Inc. as the Fund's investment manager.
(6) Annualized
See accompanying notes
<PAGE>
24 for tax-exempt income
FINANCIAL HIGHLIGHTS (CONTINUED)
- --------------------------------------------------------------------------------
Selected data for each share of the Fund outstanding throughout each period were
as follows:
<TABLE>
<CAPTION>
VOYAGEUR MUTUAL FUNDS, INC.
TAX-FREE NEW YORK FUND - CLASS B
-------------------------------------------------------------------------
SIX MONTHS EIGHT MONTHS YEAR THREE MONTHS YEAR PERIOD FROM
ENDED ENDED ENDED ENDED ENDED 11/14/94(2)
2/28/99(1) 8/31/98(1) 12/31/97(5) 12/31/96(3) 12/31/95 TO 9/30/95
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period .................... $10.640 $10.610 $10.660 $10.700 $10.850 $10.790
Income from investment operations:
Net investment income ................................ 0.214 0.308 0.522 0.100 0.470 0.210
Net realized and unrealized gain (loss) on
investments ........................................ (0.026) 0.042 0.128 - (0.130) 0.060
------- ------- ------- ------- ------- -------
Total from investment operations ..................... 0.188 0.350 0.650 0.100 0.340 0.270
------- ------- ------- ------- ------- -------
Less dividends and distributions:
Dividends from net investment income ................. (0.214) (0.310) (0.525) (0.100) (0.470) (0.210)
Distributions from net realized gain on investment
transactions ....................................... (0.024) (0.010) (0.175) (0.040) (0.020) -
------- ------- ------- ------- ------- -------
Total dividends and distributions .................... (0.238) (0.320) (0.700) (0.140) (0.490) (0.210)
------- ------- ------- ------- ------- -------
Net asset value, end of period .......................... $10.590 $10.640 $10.610 $10.660 $10.700 $10.850
======= ======= ======= ======= ======= =======
Total Return(4).......................................... 1.79% 3.35% 6.29% 0.95% 3.14% 2.54%
Ratios and supplemental data:
Net assets, end of period (000 omitted) .............. $79 $58 $56 $53 $52 $51
Ratio of expenses to average net assets .............. 1.60% 1.75% 1.75% 1.84%(6) 2.09% 2.09%(6)
Ratio of expenses to average net assets prior
to expense limitation .............................. 1.92% 1.90% 2.14% 2.00%(6) 2.30% 2.60%(6)
Ratio of net investment income to average net assets . 4.40% 4.37% 4.91% 4.45%(6) 4.39% 4.44%(6)
Ratio of net investment income to average net assets
prior to expense limitation ........................ 4.08% 4.22% 4.52% 4.29%(6) 4.18% 3.93%(6)
Portfolio turnover ................................... 28% 21% 30% 5% 12% 10%
</TABLE>
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(1) Ratios have been annualized and total return has not been annualized.
(2) Commencement of operations.
(3) Effective November 16, 1996, the Fund's shareholders approved a change of
investment advisor from Fortis Advisers, Inc. to Voyageur Fund Managers,
Inc.
(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) Commencing May 1, 1997, Delaware Management Company replaced Voyageur Fund
Managers, Inc. as the Fund's investment manager.
(6) Annualized
See accompanying notes
<PAGE>
for tax-exempt income 25
NOTES TO FINANCIAL STATEMENTS
FEBRUARY 28, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
Delaware-Voyageur Tax-Free Florida Fund ("Tax-Free Florida Fund") and
Delaware-Voyageur Tax-Free Florida Insured Fund ("Tax-Free Florida Insured
Fund"), series of the Voyageur Investment Trust (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 is registered as a
non-diversified fund. The Tax-Free Florida Insured Fund is registered as a
diversified fund. Delaware-Voyageur Tax-Free New York Fund("Tax-Free New York
Fund"), a series of Voyageur Mutual Funds, Inc., is registered under the
Investment Company Act of 1940 (as amended) as a non-diversified, open-end
management investment company.
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 income taxes and state intangibles tax with the added
safety of an insured portfolio by investing in insured municipal bonds. The
Tax-Free New York Fund seeks high current income free from both federal and
state income taxes by investing in investment grade municipal bonds. The Funds
each offer three classes of shares. The A Class carries a front-end sales charge
of 3.75%. The B Class carries a deferred sales charge and the C Class carries a
level load deferred sales charge.
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
acquired 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, and Delaware
Service Company, Inc. ("DSC") became the transfer, dividend-disbursing,
shareholder servicing and accounting and administration service agent for the
Funds. DMC, DDLP and DSC assumed these services under substantially similar fee
structures that were in effect prior to the acquisition.
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 Funds Board
of Directors.
<PAGE>
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.
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 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, if any, 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
In accordance with the terms of the Investment Management Agreement, the Funds
pay DMC, the Investment Manager of each Fund, an annual fee, which is calculated
daily on the net assets of each Fund.
DMC has elected to waive its fees and reimburse each Fund to the extent that
annual operating expenses exclusive of taxes, interest, brokerage commissions,
distribution expenses and extraordinary expenses do not exceed the following
percentages of average daily net assets through February 28, 1999:
<PAGE>
26 for tax-exempt income
NOTES TO FINANCIAL STATMENTS (CONTINUED)
- --------------------------------------------------------------------------------
3. Investment Management and Other Transactions with Affiliates (Continued)
<TABLE>
<CAPTION>
TAX-FREE TAX-FREE FLORIDA TAX-FREE
FLORIDA FUND INSURED FUND NEW YORK FUND
------------ ------------ -------------
<S> <C> <C> <C>
Management fee as a percentage of average daily
net assets (per annum) ................................... 0.55% 0.50% 0.50%
Operating expense limitation as a percentage of average daily
net assets (per annum) ................................... 0.35% 0.65% 0.25%
</TABLE>
The Funds have engaged DSC, an affiliate of DMC, to provide dividend disbursing,
transfer agent and accounting 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 February 28, 1999, the Funds had payables to affiliates as follows:
<TABLE>
<CAPTION>
TAX-FREE TAX-FREE FLORIDA TAX-FREE
FLORIDA FUND INSURED FUND NEW YORK FUND
------------ ------------ -------------
<S> <C>
Investment Management fees payable to DMC ................... -- $38,449 --
Dividend disbursing, transfer agent fees, accounting fees and
other expenses payable to DSC ............................ $1.713 $17,377 $ 1,538
Other expenses payable to DMC and affiliates ................ $ 246 $ 1,353 $ 602
</TABLE>
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 Fund.
For the six months ended February 28, 1999, DDLP earned commissions on sales of
the Fund A Class shares for each Fund as follows:
Tax-Free Tax-Free Florida Tax-Free
Florida Fund Insured Fund New York Fund
------------ ------------ -------------
$1,347 $7,425 $1,009
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.
4. Investments
During the six months ended February 28, 1999 the Funds 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 Fund Insured Fund New York Fund
------------ ------------ -------------
Purchases: ................... $5,661,783 $12,048,903 $36,809,881
Sales: ....................... $1,090,988 $16,526,719 $36,869,133
At February 28, 1999 the aggregate cost of securities and unrealized
appreciation (depreciation) for federal income tax purposes for each Fund were
as follows:
<TABLE>
<CAPTION>
Tax-Free Tax-Free Florida Tax-Free
Florida Fund Insured Fund New York Fund
<S> <C> <C> <C>
Cost of Investments ................... $16,905,313 $13,628,638 $11,281,433
=========== =========== ============
Aggregate unrealized appreciation 677,092 12,724,497 683,507
Aggregate unrealized depreciation 18,869 143,291 9,142
----------- ----------- ------------
Net unrealized appreciation ..... $658,223 $12,581,206 $ 674,365
=========== =========== ============
</TABLE>
For federal income tax purposes as of August 31, 1998, Tax-Free Florida Insured
Fund had a capital loss carryover of $9,830,861 that will expire in 2003 through
2004.
<PAGE>
for tax-exempt income 27
Notes to Financial Statments (Continued)
5. Capital Stock
Transactions in capital stocks shares were as follows:
<TABLE>
<CAPTION>
Tax-Free Tax-Free Tax-Free
Florida Fund Florida Insured Fund New York Fund
---------------------------------- ----------------------------------- ----------------------------
Six Eight Six Eight Six Eight
Months Months Year Months Months Year Months Months Year
Ended Ended Ended Ended Ended Ended Ended Ended Ended
2/28/99 8/31/98 12/31/97 2/28/99 8/31/98 12/31/97 2/28/99 8/31/98 12/31/97
(Unaudited) (Unaudited) (Unaudited)
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Shares sold:
A Class .............. 309,587 256,196 264,535 256,885 187,745 417,805 140,979 70,625 61,662
B Class .............. 151,561 128,599 105,990 67,079 67,195 76,153 63,678 29,186 6,824
C Class .............. 36,103 37,815 10,329 4,398 -- 1,960 1,860 -- --
Shares issued upon
reinvestment of dividends
from net investment
income and net realized
gains from security
transactions:
A Class .............. 11,216 10,894 10,263 89,674 123,895 231,868 20,005 24,015 54,059
B Class .............. 2,603 1,346 1,765 2,943 3,070 4,520 1,033 574 1,014
C Class .............. 522 384 243 20 -- 11 160 162 349
-------- -------- -------- -------- ---------- ---------- ------- ------- -------
511,592 435,234 393,125 420,999 381,905 732,317 227,715 124,562 123,908
-------- -------- -------- -------- ---------- ---------- ------- ------- -------
Shares repurchased:
A Class .............. (145,398) (58,717) (141,380) (810,764) (1,839,015) (69,486) (58,367) (156,730)
B Class .............. (51,112) (73,617) (19,696) (48,275) (51,692) (30,565) (6,878) (1,444) (15,960)
C Class .............. (893) (989) -- -- -- (1,971) -- -- (22)
-------- -------- -------- -------- ---------- ---------- ------- ------- -------
(197,403) (133,323) (161,076) (859,039) (1,890,707) (4,196,251) (76,364) (59,811) (172,712)
-------- -------- -------- -------- ---------- ---------- ------- ------- -------
Net Increase (Decrease) . 314,189 301,911 232,049 (438,040) (1,508,802) (3,463,934) 151,351 64,751 (48,804)
======== ======== ======== ======== ========== ========== ======= ======= =======
</TABLE>
See accompanying notes
6. Lines of Credit
Committed lines of credit were $500,000 for Tax-free Florida Fund, $8,800,000
for Tax-Free Florida Insured Fund and $500,000 for Tax-Free New York Fund. No
amount was outstanding for any of the Funds at February 28, 1999 or at any time
during the fiscal year.
7. Credit and Market Risk
The Funds concentrate their investments in securities issued by municipalities,
mainly in Florida for Tax-Free Florida Fund and Tax-Free Florida Insured Fund
and in New York for the Tax-Free New York Fund. The value of these investments
may be adversely affected by new legislation within the states, 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 Statements of Net
Assets.
<PAGE>
This Semi-Annual Report is for the information of Tax-Free Florida, Tax-Free
Florida Insured, and Tax-Free New York shareholders, but it may be used with
prospective investors when preceded or accompanied by a current Prospectus for
any of these Funds 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. 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
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
For Shareholders
1.800.523.1918
For Securities Dealers
1.800.362.7500
For Financial Institutions
Representatives Only
1.800.659.2265
www.delawarefunds.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.
(C) Delaware Distributors, L.P.
Printed in the USA
on recycled paper
(J4561) (1605)
SA-FLNY [2/99] PP4/99
