VOYAGEUR INVESTMENT TRUST, N-30D, 1999-11-01

VOYAGEUR INVESTMENT TRUST
N-30D, 1999-11-01

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<PAGE>
Delaware Tax-Free Florida Fund
Delaware Tax-Free Florida Insured Fund
Delaware Tax-Free New York Fund

FOR TAX-EXEMPT INCOME

service and guidance

professional management

goals

(various photos illustrating service and guidance,
professional management and goals)

1999
Annual Report

DELAWARE (SM)
INVESTMENTS
- ---------------------
Philadelphia o London

<PAGE>

A TRADITION OF SOUND INVESTING

commitment

A Commitment
To Our Investors

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

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

(photos of computer keyboard, house)

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

Table of Contents
LETTER TO SHAREHOLDERS Page 1
PORTFOLIO MANAGERS' REVIEW Page 3
DELAWARE TAX-FREE FLORIDA FUNDS Page 5
DELAWARE TAX-FREE NEW YORK FUND Page 6
PERFORMANCE SUMMARY Page 8
STATEMENTS OF NET ASSETS Page 11
FINANCIAL HIGHLIGHTS Page 20

tax-exempt
income

tradition

<PAGE>

for tax-exempt
income
1

September 7, 1999

Dear Shareholder:

It's been a rough year for municipal bonds as the landscape for investing
changed several times. Conditions varied from worldwide economic uncertainty to
record-high stock market levels, leaving municipal bonds struggling to stay in
the ballgame.
At the opening of our fiscal year, nations from around the globe faced
financial difficulties, threatening the stability of the global economy.
Investors the world over flocked toward the safety of U.S.
Treasuries--considered by many to be one of the world's safest investments. As
demand for Treasury securities increased, so did their price, driving yields
down.
As the flight toward quality ensued, municipal bond prices remained
relatively stable, a positive situation considering that many other fixed income
alternatives suffered substantial declines. Still, the combination of decreased
demand for municipal bonds and near record high levels of municipal bond supply
caused municipal bonds to sell at what we considered very attractive values
relative to Treasuries.
These values drew non-traditional municipal bond investors toward the
attractive yields municipal bonds offered compared to Treasuries. These
investors included those who are not eligible for the tax advantages that
municipal bonds offer--that is, non-U.S. residents or life insurance or pension
companies. Demand by these new players helped municipal bond prices remain
stable amidst global turbulence.
Stability returned to the equity markets in late autumn after the Federal
Reserve Board lowered the federal funds rate (the rate banks charge each other
for overnight lending) three times. Investors ventured back into other types of
investments including stocks and, to a small degree, municipal bonds. From late
autumn, municipal bonds outperformed Treasuries until the spring of 1999.

AVERAGE ANNUAL TOTAL RETURNS
- --------------------------------------------------------------------------------
AS OF AUGUST 31, 1999
<TABLE>
One Year Three Years
- ------------------------------------------------------------------------------------------------
<S> <C> <C>
Delaware Tax-Free Florida Fund A Class -1.50% +6.18%
Lipper Florida Municipal Debt Fund Average (63 Funds) -1.48% +4.95%
- ------------------------------------------------------------------------------------------------
Delaware Tax-Free Florida Insured Fund A Class -0.83% +5.85%
Lipper Florida Insured Municipal Debt Fund Average (13 Funds) -1.69% +5.13%
- ------------------------------------------------------------------------------------------------
Delaware Tax-Free New York Fund A Class -2.44% +3.51%
Lipper New York Municipal Debt Fund Average (97 Funds) -1.64% +5.07%
- ------------------------------------------------------------------------------------------------
Lehman Brothers Municipal Bond Index +0.50% +6.05%
Lehman Brothers Insured Municipal Bond Index -0.29% +6.01%
</TABLE>
- --------------------------------------------------------------------------------
The results shown above are based on net asset value and assume reinvestment of
distributions. For complete performance for all classes, see pages 8 through 10.
The Lipper categories represent the average returns of municipal bond funds with
similar investment objectives. The Lehman Brothers Municipal Bond Index and
Lehman Brothers Insured Municipal Bond Index are unmanaged and include no
management fees or expenses. You cannot invest directly in any index.
Performance of other Fund Classes vary due to different fees and expenses. Past
performance does not guarantee future results.

<PAGE>

for tax-exempt
income
2

The yield difference between municipal bonds and Treasuries moved more in line
with historical levels in early spring, reducing municipal bonds' attractiveness
to non-traditional investors. As a result, many moved their assets to higher
yielding investment vehicles, reducing municipal demand and pushing prices
lower. As a result of lower bond demand and fears of increasing inflation,
municipal yields rose proportionally with Treasuries throughout much of spring
and early summer.
To curb potential inflation, the Federal Reserve Board raised the federal
funds rate on June 30 and then again on August 24.
Investors were reassured when fears of inflation were calmed after the
second rate increase and municipal bond prices began to rise.
The municipal bond market was thrown a few curve balls over the past few
months but now looks as if it may be ready to step back up to the plate. Bond
yields have been on the rise, particularly in the last few days of the fiscal
period. 30-year AAA general obligation municipal bond yields have increased from
4.86% on August 31, 1998 to 5.52% on August 31, 1999 (Source: Municipal Market
Data). As a result, retail investors have recently returned to the market,
showing a renewed interest in the municipal bond arena.
On the following pages, Patrick Coyne and Mitchell Conery, senior portfolio
managers for Delaware Tax-Free Florida Funds and Delaware Tax-Free New York
Fund, discuss in further detail the performance of each Fund over the past year.
We strongly urge you to review their commentary.
We see the coming year as a time to be cautiously optimistic. Investors
appear much more interested in municipal bonds recently, which could contribute
to attractive municipal bond performance as we move into fiscal 2000. As you and
your financial adviser work together to review your investment portfolio,
remember that municipal bonds provide solid opportunities for tax-advantaged
investing. We believe state and locally issued bonds provide an attractive level
of current income that is generally exempt from both federal and state income
taxes for residents of states where the bonds are issued.
Thank you for your continued confidence in Delaware Investments. We look
forward to reporting to you again in the fall.

Sincerely,

/s/ WAYNE A. STORK
- ------------------
WAYNE A. STORK
Chairman,
Delaware Investments Family of Funds

/s/ DAVID K. DOWNES
- ------------------
DAVID K. DOWNES
President and Chief Executive Officer,
Delaware Investments Family of Funds

discipline

<PAGE>

for tax-exempt
income
3

Portfolio Managers' Review

BY PATRICK P. COYNE AND
MITCHELL L. CONERY
Vice Presidents/Senior Portfolio Managers
September 7, 1999

FLUCTUATING INTEREST RATES OVER THE past year have increased volatility in the
bond markets. In the fall of 1998, responding to strains on the global economy,
the Federal Reserve Board lowered short-term interest rates three times. This
led to strong performance in the municipal bond arena over the winter.
In order to realize the Funds' income potential to the greatest extent
possible, we lengthened the duration of Delaware Tax-Free Florida Fund, Delaware
Tax-Free Florida Insured Fund and Delaware Tax-Free New York Fund. Duration is a
common measure of a bond or bond fund's sensitivity to interest rates. The
longer the duration, the more the bond's price will change for a given increase
or decrease in interest rates.
As winter came to an end, economic indicators hinted at inflationary
conditions on the horizon. Municipal bond yields rose and prices fell as
investors sought to preserve capital through very safe investments, like U.S.
Treasuries. In an attempt to thwart inflation, the Fed raised the federal funds
rate for the first time on June 30 and then once more on August 24. This
sequence of interest rate hikes pushed bond yields even higher, hampering
short-term bond fund performance, particularly for funds with longer durations,
like Tax-Free Florida and Tax-Free New York Funds.
For the one-year period ended August 31, 1999, Delaware Tax-Free New York
Fund did not perform as well as the average of funds with similar strategies, as
tracked by Lipper Analytical (see page 1 for further detail). The primary reason
for this is that we have maintained a longer duration than the average of the
funds included in this category. The Lipper category to which these Funds are
assigned does not place any restrictions on duration, so the funds we are
measured against may have very different durations. When interest rates went up,
we were harder hit than mutual funds with shorter durations. Delaware Tax-Free
Florida Fund kept pace with its peers in the Lipper Florida Municipal Debt Fund
average. The Fund's long-term performance remains positively strong. We believe
funds like ours with a longer average duration should be well positioned over
the coming year as we expect interest rates to remain stable or increase only
slightly.

market
overview

<PAGE>

for tax-exempt
income
4

Delaware Tax-Free Florida Insured Fund was able to preserve capital to a greater
extent than the average of its peers in the Lipper Florida Insured Municipal
Debt Fund category (see page 1 for further detail). We attribute its performance
to its conservative investment strategy.
Because municipal bonds were selling at a considerable discount to
Treasuries throughout much of late winter and early spring, we were able to
purchase new securities at what we considered very attractive prices, enabling
us to reposition the Funds' portfolios for the remainder of calendar 1999. We
chose to focus on municipal bonds with the following features:

o Longer duration -- We expect that over the next few months interest rates
will either remain stable or increase only slightly. Although bonds with
longer durations can be more volatile in the short term, they do have the
potential to provide greater capital appreciation over the long haul.
o Call protection -- This provision ensures that the issuer of the bond
cannot redeem the bond until a specified time. This means a bond
purchaser, like us, can collect the specified bond yield until we choose
to sell the bond or the stated call date occurs.

The bond market staged a comeback late in our fiscal period, although not
early enough to have a significant impact on our fiscal period performance. We
expect the coming months to provide a more stable interest rate environment, one
that favors our current positioning.
As always, we strive to seek a high level of current income free of
federal and state income taxes for residents of the state where the bond is
issued. Among other factors, we pay particular attention to the following when
selecting bonds for each Fund:

o The financial strength of the issuer; and,
o The revenue expected from the project backing the bond.

MUNICIPAL BOND ISSUANCE FALLS IN 1999
Municipal bond supply has drastically decreased since last year, when many
municipalities took advantage of low rates to finance new education, health care
and transportation projects. In 1998, $285 billion worth of municipal bonds were
issued--the second largest annual volume in the market's history. So far in
calendar 1999, municipal bond volume has dropped substantially through August
31--by 26% in Florida and by 55% in New York (Source: The Bond Buyer). The drop
in supply should, in our opinion, give the market the opportunity to absorb last
year's monumental issuance and increase the potential for capital appreciation
over the coming year.

Because municipal bonds were selling at a considerable discount to Treasuries
throughout much of late winter and early spring, we were able to purchase new
securities at what we considered very attractive prices.

(photo of computer keyboard)

<PAGE>

for tax-exempt
income
5

(photo of globes)

On the pages that follow we will take a closer look at the Funds in the
context of their individual state.

DELAWARE TAX-FREE
FLORIDA FUNDS
In order to increase the income potential of the Delaware Tax-Free Florida
Funds, we lengthened the duration of each Fund over the past year. Duration is a
common measure of a bond or bond fund's sensitivity to interest rates. The
longer the duration, the more the bond's price will change for a given increase
or decrease in interest rates. We lengthened Delaware Tax-Free Florida Fund's
average duration over the past 12 months by 1.5 years to 9.2 years. Currently,
the average duration of the funds in the Lipper Florida Municipal Debt Funds
category is shorter than the duration of Delaware Tax-Free Florida Fund (Source:
Lipper Analytical). Because of this, when interest rates went up, our bond
prices declined more than mutual funds that were shorter in duration. Since we
expect interest rates to remain stable or increase slightly, we think this
situation will reverse and that funds with a longer average duration will
perform well over the coming year.
In order to remain consistent with the Fund's more conservative investment
objectives, we maintain a shorter duration for Delaware Tax-Free Florida Insured
Fund than for Delaware Tax-Free Florida Fund. Delaware Tax-Free Florida Insured
Fund's duration is in line with the average of its peers in the Lipper Florida
Insured Municipal Debt Funds average (Source: Lipper Analytical). We lengthened
Delaware Tax-Free Florida Insured Fund's average duration over the past 12
months by 2.7 years to 7.9 years.
Demand for insured municipal bonds, which guarantee the payment of
principal and interest, remained strong in Florida over the past year.
Approximately 70% of all new municipal bonds issued in Florida are insured, more
than in most states. (Source: The Bond Buyer).

tax-free
florida

(line graph)
MUNICIPAL BONDS OFFER GOOD VALUE COMPARED TO TREASURIES
- --------------------------------------------------------------------------------
AUGUST 31, 1999

Aug. '89 0.85%
Sep. '89 0.87%
Oct. '89 0.90%
Nov. '89 0.87%
Dec. '89 0.86%
Jan. '90 0.83%
Feb. '90 0.82%
Mar. '90 0.83%
Apr. '90 0.82%
May '90 0.82%
Jun. '90 0.85%
Jul. '90 0.83%
Aug. '90 0.81%
Sep. '90 0.81%
Oct. '90 0.81%
Nov. '90 0.82%
Dec. '90 0.85%
Jan. '91 0.84%
Feb. '91 0.84%
Mar. '91 0.84%
Apr. '91 0.83%
May '91 0.82%
Jun. '91 0.83%
Jul. '91 0.82%
Aug. '91 0.83%
Sep. '91 0.85%
Oct. '91 0.83%
Nov. '91 0.83%
Dec. '91 0.87%
Jan. '92 0.84%
Feb. '92 0.83%
Mar. '92 0.83%
Apr. '92 0.81%
May '92 0.82%
Jun. '92 0.80%
Jul. '92 0.79%
Aug. '92 0.82%
Sep. '92 0.84%
Oct. '92 0.85%
Nov. '92 0.82%
Dec. '92 0.83%
Jan. '93 0.83%
Feb. '93 0.80%
Mar. '93 0.84%
Apr. '93 0.82%
May '93 0.82%
Jun. '93 0.82%
Jul. '93 0.84%
Aug. '93 0.87%
Sep. '93 0.86%
Oct. '93 0.87%
Nov. '93 0.86%
Dec. '93 0.82%
Jan. '94 0.83%
Feb. '94 0.84%
Mar. '94 0.87%
Apr. '94 0.84%
May '94 0.81%
Jun. '94 0.83%
Jul. '94 0.82%
Aug. '94 0.82%
Sep. '94 0.81%
Oct. '94 0.82%
Nov. '94 0.84%
Dec. '94 0.84%
Jan. '95 0.81%
Feb. '95 0.80%
Mar. '95 0.80%
Apr. '95 0.82%
May '95 0.85%
Jun. '95 0.89%
Jul. '95 0.86%
Aug. '95 0.88%
Sep. '95 0.90%
Oct. '95 0.88%
Nov. '95 0.87%
Dec. '95 0.88%
Jan. '96 0.87%
Feb. '96 0.84%
Mar. '96 0.86%
Apr. '96 0.84%
May '96 0.84%
Jun. '96 0.83%
Jul. '96 0.82%
Aug. '96 0.81%
Sep. '96 0.80%
Oct. '96 0.83%
Nov. '96 0.84%
Dec. '96 0.82%
Jan. '97 0.82%
Feb. '97 0.81%
Mar. '97 0.81%
Apr. '97 0.81%
May '97 0.80%
Jun. '97 0.80%
Jul. '97 0.82%
Aug. '97 0.81%
Sep. '97 0.82%
Oct. '97 0.85%
Nov. '97 0.86%
Dec. '97 0.85%
Jan. '98 0.86%
Feb. '98 0.86%
Mar. '98 0.87%
Apr. '98 0.87%
May '98 0.87%
Jun. '98 0.90%
Jul. '98 0.89%
Aug. '98 0.94%
Sep. '98 0.97%
Oct. '98 0.96%
Nov. '98 0.96%
Dec. '98 0.97%
Jan. '99 0.95%
Feb. '99 0.89%
Mar. '99 0.88%
Apr. '99 0.87%
May '99 0.86%
Jun. '99 0.87%
Jul. '99 0.86%
Aug. '99 0.89%

Municipal Bonds are considered to be undervalued

Municipal bonds typically offer about 84% of the income that is offered by
comparable Treasury Securities (Source:Municipal Market Data).

The above chart shows the percentage of income that the average 30-year
AAA-rated general obligation bond provided compared to a 30-year U.S. Treasury
bond. The U.S. government does not guarantee principal and interest of municipal
bonds, unlike Treasuries. Municipal bonds have historically had annual default
rates of less than 2%.
Source: Municipal Market Data

<PAGE>

for tax-exempt
income
6

For both Funds, we maintain a focus on high-grade bonds so that as we aim
to increase the Funds' income potential, we strive not to increase our credit
risks. As of August 31, 1999, over 86% of Delaware Tax-Free Florida Fund's net
assets were allocated to bonds rated investment grade (bonds rated BBB or higher
by Moody's or Standard & Poor's).
As mandated by the Fund's investment policies, Delaware Tax-Free Florida
Insured Fund continues to invest exclusively in insured municipal bonds rated
AAA by Moody's or Standard & Poor's, the highest credit quality available.

DELAWARE TAX-FREE
NEW YORK FUND
The New York state economy continued to grow over the course of the past year,
although not as briskly as the national economy. As the 10th largest economy in
the world, its mammoth size may be what has hindered it from growing at the
lively pace of our national economy. New York's diverse economy contributes to
the state's economic strength. The state accounts for nearly eight percent of
the United States' Gross Domestic Product (Source: New York state economic
data).
The supply of newly issued New York municipal bonds has decreased
dramatically since fiscal 1998. So far through August 31, 1999, New York has
issued over 51% fewer bonds than during the same period in 1998. Despite the
drastic decrease in new issues, New York issued the second largest number of
bonds in the nation, second only to California (Source: The Bond Buyer).
In early winter, as interest rates were stabilizing, we substantially
lengthened your Fund's duration. Duration is a common measure of a bond or bond
fund's sensitivity to interest rates. The longer the duration, the more the
bond's price will change for a given increase or decrease in interest rates. Our
goal was to increase the Fund's income potential to the greatest extent
possible, consistent with the preservation of capital.
As we reported in March, this strategy was successful for most of the
winter when interest rates remained stable. Rising

tax-free
new york

PORTFOLIO HIGHLIGHTS
- --------------------------------------------------------------------------------
AUGUST 31, 1999
<TABLE>

Delaware Tax-Free Delaware Tax-Free Delaware Tax-Free
Florida Fund Florida Insured Fund New York Fund
- ------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Weighted Average
Effective Maturity+ 16.58 years 12.05 years 22.62 years
Average Duration++ 9.22 years 7.88 years 9.63 years
Average Coupon 5.75% 5.91% 5.88%
AMT Income* 6.28% 22.13% 5.45%
- ------------------------------------------------------------------------------------------------
Before Expense Before Expense Before Expense
Current 30-Day SEC Yield** Limitation Limitation Limitation
<S> <C> <C> <C> <C> <C> <C>
(Class A) 4.72% 4.35% 4.29% 4.29% 4.72% 4.02%
(Class B) 4.15% 3.77% 3.70% 3.70% 4.15% 3.43%
(Class C) 4.15% 3.77% 3.70% 3.70% 4.16% 3.43%
</TABLE>

+ Weighted average effective maturity is the average time remaining until
scheduled principal repayment by issuers of portfolio securities.
++ Average duration is the average measure of each portfolio security's
length. It indicates how interest rate changes will affect a bond's price.
* Amount of income subject to the federal alternative minimum tax for the
year ended August 31, 1999.
** Calculated according to Securities and Exchange Commission guidelines.

An expense limitation for each fund was in effect for the period shown.
Performance would have been lower without the limitation. See page 28 for
additional information.

<PAGE>

for tax-exempt
income
7

(photo of people on beach)

interest rates this past summer, however, created turbulence for municipal
bonds, particularly for funds like Delaware Tax-Free New York Fund that were
relatively long in duration.
The Fund's average duration hit a peak of 10.1 years on July 16. As
inflation fears continued and it became apparent that the Federal Reserve Board
might raise the federal funds rate for a second time, we shortened the Fund's
duration a bit. As of August 31, 1999 the Fund's average duration was 9.6 years.
The shorter duration helped us to preserve capital to a greater extent during
the remainder of the summer than if we had maintained a longer duration.
To offset the risks associated with investing in bonds that are longer in
duration, we maintained our focus on pre-refunded bonds. Pre-refunded bonds,
which are issued by municipalities to refinance existing debt at lower interest
rates, are generally rated AAA and are backed by the safety of the U.S.
government. As of August 31, 1999, over 24% of the Fund's portfolio was invested
in pre-refunded issues.
Despite dozens of New York State tax cuts over the past three years, taxes
on New York citizens remain the heaviest in the nation. Municipal bonds are
still an attractive alternative for New York residents seeking income that is
exempt from federal, state and sometimes local taxes.

OUTLOOK
Over the next few months we expect conditions for municipal bond investors to
improve. Stock market volatility has begun to take its toll on investors and
many have returned to the bond market, including to municipal bond mutual funds
(Source: Bloomberg Business News).
Decreased municipal bond supply over the past year has enabled the market
to absorb a lot of the overwhelming number of municipal bonds issued in 1998.
This should, in our opinion, allow greater potential for capital appreciation as
the availability of these bonds decreases.
It is our opinion that there is some risk of inflation in the near future,
but we believe that interest rates should remain relatively stable or increase
only slightly. For this reason, we plan to maintain a longer average duration
for both Delaware Tax-Free Florida Fund and Delaware Tax-Free New York Fund
while focusing on bonds with high credit ratings. We believe that relatively
stable interest rates should provide an environment that will enable these Funds
to take advantage of increased income potential over the next few months.

outlook

CREDIT QUALITY
- --------------------------------------------------------------------------------
AUGUST 31, 1999
Tax-Free Tax-Free Florida Tax-Free
Florida Fund Insured Fund New York Fund
- --------------------------------------------------------------------------------
AAA 45.1% 100% 45.4%
AA 21.5% 0% 11.3%
A 15.0% 0% 39.7%
BBB 4.5% 0% 3.6%
Unrated* 13.9% 0% 0%

* Many unrated bonds in this portfolio may be of investment grade quality,
based on the portfolio managers' analysis of each individual bond.

<PAGE>

for tax-exempt
income
8

Performance Summary

(line graph)
DELAWARE TAX-FREE FLORIDA FUND
- --------------------------------------------------------------------------------
GROWTH OF A $10,000 INVESTMENT
MARCH 2, 1995 (FUND INCEPTION) TO AUGUST 31, 1999

Delaware Tax-Free Lehman Brothers
Florida Fund Municipal
Class A Bond Index
- --------------------------------------------------------------------------------
Mar. '95 $ 9,625 $10,000
May '95 10,098 10,331
Aug. '95 10,088 10,469
Nov. '95 10,676 10,866
Feb. '96 10,806 10,978
May '96 10,538 10,803
Aug. '96 10,795 11,017
Nov. '96 11,244 11,505
Feb. '97 11,347 11,583
May '97 11,527 11,698
Aug. '97 11,895 12,036
Nov. '97 12,258 12,329
Feb. '98 12,611 12,642
May '98 12,804 12,795
Aug. '98 13,122 13,077
Nov. '98 13,273 13,287
Feb. '99 13,360 13,419
May '99 13,312 13,400
Aug. '99 $12,924 $13,148

Chart assumes $10,000 invested on March 2, 1995, and includes the effect of a
3.75% sales charge and the reinvestment of distributions. Performance of other
Fund classes will vary due to differing charges and expenses. Past performance
does not guarantee future results. The Lehman Brothers Municipal Bond Index
tracks approximately 15,000 municipal bonds with a rating of Baa or higher.

DELAWARE TAX-FREE FLORIDA FUND
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS THROUGH AUGUST 31, 1999

Lifetime Three Years One Year
- --------------------------------------------------------------------------------
Class A (Est. 3/2/95)
Excluding Sales Charge +6.80% +6.18% -1.50%
Including Sales Charge +5.89% +4.84% -5.22%
- --------------------------------------------------------------------------------
Class B (Est. 9/15/95)
Excluding Sales Charge +5.39% +5.51% -2.24%
Including Sales Charge +4.74% +4.60% -5.99%
- --------------------------------------------------------------------------------
Class C (Est. 4/22/95)
Excluding Sales Charge +5.56% +5.39% -2.33%
Including Sales Charge +5.56% +5.39% -3.26%

All performance includes reinvestment of distributions and, where indicated,
applicable sales charge as described below. Return and share value will
fluctuate so that shares, when redeemed, may be worth more or less than the
original cost. Past performance is not a guarantee of future results.
Performance for Class B and Class C shares excluding sales charge assumes either
the investment was not redeemed or that contingent sales charges did not apply.
Returns reflect a voluntary expense limitation in effect at the time. Returns
would have been lower without the limitation.

Class A shares have a 3.75% maximum front-end sales charge and a 12b-1 fee.
Class B shares do not have a front-end sales charge but are subject to a 1%
annual distribution fee and service fee. They are also subject to a deferred
sales charge of up to 4% if redeemed before the end of the sixth year.
Class C shares have a 1% annual distribution and service fee. If shares are
redeemed within 12 months, a 1% contingent deferred sales charge applies.

<PAGE>

for tax-exempt
income
9

(line graph)
DELAWARE TAX-FREE FLORIDA INSURED FUND
- --------------------------------------------------------------------------------
GROWTH OF A $10,000 INVESTMENT
JANUARY 1, 1992 (FUND INCEPTION) TO AUGUST 31, 1999

Delaware Tax-Free Lehman Brothers
Florida Insured Fund Insured Municipal
Class A Bond Index
- --------------------------------------------------------------------------------
Jan. '92 $ 9,625 $10,000
Feb. '92 9,753 10,027
Mar. '92 9,767 10,027
Apr. '92 9,830 10,115
May '92 9,972 10,235
Jun. '92 10,135 10,419
Jul. '92 10,448 10,779
Aug. '92 10,284 10,645
Sep. '92 10,379 10,697
Oct. '92 10,273 10,574
Nov. '92 10,552 10,816
Dec. '92 10,707 10,933
Jan. '93 10,836 11,054
Feb. '93 11,183 11,503
Mar. '93 11,208 11,364
Apr. '93 11,326 11,497
May '93 11,393 11,571
Jun. '93 11,587 11,767
Jul. '93 11,602 11,792
Aug. '93 11,882 12,045
Sep. '93 12,002 12,186
Oct. '93 12,047 12,202
Nov. '93 11,886 12,087
Dec. '93 12,071 12,357
Jan. '94 12,333 12,500
Feb. '94 11,992 12,151
Mar. '94 11,483 11,581
Apr. '94 11,259 11,700
May '94 11,422 11,813
Jun. '94 11,318 11,726
Jul. '94 11,562 11,971
Aug. '94 11,558 11,986
Sep. '94 11,316 11,788
Oct. '94 11,038 11,549
Nov. '94 10,702 11,340
Dec. '94 11,026 11,618
Jan. '95 11,428 12,004
Feb. '95 11,948 12,373
Mar. '95 12,084 12,511
Apr. '95 12,079 12,522
May '95 12,524 12,944
Jun. '95 12,365 12,802
Jul. '95 12,408 12,904
Aug. '95 12,500 13,078
Sep. '95 12,700 13,168
Oct. '95 12,925 13,392
Nov. '95 13,187 13,633
Dec. '95 13,366 13,774
Jan. '96 13,447 13,874
Feb. '96 13,316 13,763
Mar. '96 13,013 13,562
Apr. '96 12,955 13,516
May '96 12,935 13,510
Jun. '96 13,053 13,668
Jul. '96 13,208 13,793
Aug. '96 13,238 13,788
Sep. '96 13,420 13,990
Oct. '96 13,578 14,156
Nov. '96 13,825 14,434
Dec. '96 13,754 14,359
Jan. '97 13,759 14,379
Feb. '97 13,893 14,512
Mar. '97 13,690 14,296
Apr. '97 13,839 14,423
May '97 14,053 14,649
Jun. '97 14,206 14,806
Jul. '97 14,690 15,260
Aug. '97 14,528 15,085
Sep. '97 14,709 15,278
Oct. '97 14,834 15,380
Nov. '97 14,936 15,479
Dec. '97 15,169 15,733
Jan. '98 15,338 15,907
Feb. '98 15,345 15,896
Mar. '98 15,359 15,903
Apr. '98 15,325 15,817
May '98 15,536 16,092
Jun. '98 15,599 16,158
Jul. '98 15,645 16,192
Aug. '98 15,833 16,474
Sep. '98 15,994 16,699
Oct. '98 15,999 16,691
Nov. '98 16,077 16,754
Dec. '98 16,097 16,785
Jan. '99 16,275 16,989
Feb. '99 16,213 16,892
Mar. '99 16,230 16,926
Apr. '99 16,252 16,958
May '99 16,142 16,835
Jun. '99 15,875 16,560
Jul. '99 15,880 16,612
Aug. '99 $15,700 $16,425

Chart assumes $10,000 invested on January 1, 1992, and includes the effect of a
3.75% sales charge and the reinvestment of distributions. Performance of other
Fund classes will vary due to differing charges and expenses. Past performance
does not guarantee future results. The Lehman Brothers Insured Municipal Bond
Index tracks approximately 5,100 municipal bonds that are backed by an insurer
and have a rating of BBB or higher.

DELAWARE TAX-FREE FLORIDA INSURED FUND
AVERAGE ANNUAL TOTAL RETURNS THROUGH AUGUST 31, 1999

Lifetime Five Years One Year
- --------------------------------------------------------------------------------
Class A (Est. 1/1/92)
Excluding Sales Charge +6.61% +6.33% -0.83%
Including Sales Charge +6.08% +5.51% -4.53%
- --------------------------------------------------------------------------------
Class B (Est. 3/11/94)
Excluding Sales Charge +4.80% +5.70% -1.58%
Including Sales Charge +4.65% +5.38% -5.36%
- --------------------------------------------------------------------------------
Class C (Est. 9/29/97)+
Excluding Sales Charge +2.65% -1.58%
Including Sales Charge +2.65% -2.52%

+ Class C shares were sold and outstanding from September 29, 1997 until
December 18, 1997, when all of the outstanding Class C shares were redeemed.
There were no outstanding Class C shares or shareholder activity from
December 19, 1997 through January 7, 1999. The performance for Class C shares
during the period from December 19, 1997 through January 7, 1999 is based on
the performance of Class B shares.

<PAGE>

for tax-exempt
income
10

(line graph)
DELAWARE TAX-FREE NEW YORK FUND
- --------------------------------------------------------------------------------
GROWTH OF A $10,000 INVESTMENT
TEN YEARS ENDED AUGUST 31, 1999

Delaware Tax-Free Lehman Brothers
New York Fund Municipal
Class A Bond Index
- --------------------------------------------------------------------------------
Aug. '89 $ 9,625 $10,000
Nov. '89 9,774 10,269
Feb. '90 9,823 10,397
May '90 9,904 10,550
Aug. '90 10,010 10,643
Nov. '90 10,290 11,060
Feb. '91 10,516 11,356
May '91 10,779 11,613
Aug. '91 11,056 11,898
Nov. '91 11,350 12,195
Feb. '92 11,555 12,490
May '92 11,864 12,754
Aug. '92 12,405 13,197
Nov. '92 12,575 13,418
Feb. '93 13,304 14,209
May '93 13,425 14,280
Aug. '93 13,822 14,840
Nov. '93 13,876 14,906
Feb. '94 13,989 14,996
May '94 13,725 14,633
Aug. '94 13,923 14,861
Nov. '94 13,476 14,123
Feb. '95 14,170 15,278
May '95 14,585 15,966
Aug. '95 14,736 16,179
Nov. '95 15,103 16,792
Feb. '96 15,230 16,966
May '96 15,025 16,695
Aug. '96 15,253 17,026
Nov. '96 15,623 17,779
Feb. '97 15,718 17,900
May '97 15,830 18,077
Aug. '97 16,149 18,600
Nov. '97 16,477 19,053
Feb. '98 16,839 19,536
May '98 16,990 19,773
Aug. '98 17,319 20,208
Nov. '98 17,565 20,533
Feb. '99 17,699 20,737
May '99 17,532 20,708
Aug. '99 $16,894 $20,319

Chart assumes $10,000 invested on September 1, 1989, and includes the effect of
a 3.75% sales charge and the reinvestment of distributions. Performance of other
Fund classes will vary due to differing charges and expenses. Past performance
does not guarantee future results. The Lehman Brothers Municipal Bond Index
tracks approximately 15,000 municipal bonds with a rating of Baa or higher.

DELAWARE TAX-FREE NEW YORK FUND
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS THROUGH AUGUST 31, 1999

Lifetime Ten Years Five Years One Year
- --------------------------------------------------------------------------------
Class A (Est. 11/6/87)
Excluding Sales Charge +6.54% +5.79% +3.98% -2.44%
Including Sales Charge +6.20% +5.39% +3.19% -6.14%
- --------------------------------------------------------------------------------
Class B (Est. 11/14/94)
Excluding Sales Charge +4.13% -3.18%
Including Sales Charge +3.78% -6.88%
- --------------------------------------------------------------------------------
Class C (Est. 4/26/95)
Excluding Sales Charge +2.99% -3.08%
Including Sales Charge +2.99% -4.01%

<PAGE>

for tax-exempt income 11

Financial Statements

VOYAGEUR INVESTMENT TRUST
DELAWARE TAX-FREE FLORIDA FUND
STATEMENT OF NET ASSETS
AUGUST 31, 1999
- --------------------------------------------------------------------------------
Principal Market
Amount Value
- --------------------------------------------------------------------------------
MUNICIPAL BONDS - 97.02%
Continuing Care/retirement Revenue
Bonds - 7.10%
Jacksonville Health Facilities Authority (Cypress
Village Project National Benevolent Association)
Series A 6.125% 12/1/16........................... $200,000 $ 200,466
Orange County Florida Health Facilities
5.25% 6/1/19...................................... 500,000 480,360
Palm Beach Health Facilities Authority (Adult
Community Services) 5.625% 11/15/20............... 250,000 239,970
Volusia County Health Facilities Authority (John
Knox Village) Series A 6.00% 6/1/17............... 250,000 257,510
-----------
1,178,306
-----------
Higher Education Revenue Bonds - 3.96%
Pinellas County Educational Facilities Authority
(Clearwater Christian College Private
Placement) 8.00% 2/1/11........................... 400,000 431,080
Pinellas Educational Authority Revenue
5.38% 10/1/28..................................... 250,000 225,140
-----------
656,220
-----------
Highway Revenue Bonds - 1.06%
Dunes Community Development District-Intracoastal
Waterway Bridge (ITT Industries Corporation)
5.50% 10/1/07..................................... 175,000 176,339
-----------
176,339
-----------
Hospitals Revenue Bonds - 16.81%
Hillsborough County Industrial Development Authority
(University Community Hospital) 5.63%
8/15/23........................................... 1,000,000 925,190
Hillsborough County (Tampa General Hospital)
6.375% 10/1/13 (FSA).............................. 100,000 106,299
Lee County Hospital Board (Lee Memorial Hospital)
6.35% 3/26/20 (MBIA).............................. 500,000 528,825
Leesburg Regional Medical Center Project Series A
6.125% 7/1/12..................................... 100,000 102,921
North Miami Health Facilities Authority (Catholic
Health Services) 6.00% 8/15/16
(LOC Suntrust Bank-Miami)......................... 500,000 510,385
Palm Beach County Florida Health Facilities
Hospital 5.00% 12/1/23............................ 550,000 485,897
Puerto Rico Industrial Tourist Educational
Medical & Environmental Control Facilities
(Mennonite General Hospital)
Series A 5.625% 7/1/27............................ 140,000 129,377
-----------
2,788,894
-----------

- --------------------------------------------------------------------------------
Principal Market
Amount Value
- --------------------------------------------------------------------------------
MUNICIPAL BONDS (CONTINUED)
Housing Revenue Bonds - 9.12%
Dade County Housing Finance Authority (Lincoln
Fields Apartments Section 8)
6.25% 7/1/24 (FHA/MBIA)........................... $500,000 $ 509,750
Duval Housing Finance Authority (St. Augustine
Apartments) 6.00% 3/1/21.......................... 300,000 302,577
Florida Housing Finance Agency (Homeowner
Mortgage) Series 1B 6.00% 7/1/17
(FHA/VA).......................................... 185,000 188,498
Florida Housing Finance Agency (The Vineyards
Project) Series H 6.40% 11/1/15................... 500,000 511,770
-----------
1,512,595
-----------
Industrial Development Revenue Bonds - 6.61%
Polk County Industrial Development Authority
Solid Waste Disposal (Tampa Electric Company
Project) 5.85% 12/1/30 (AMT)...................... 350,000 353,696
Saint Johns County Industrial Development
Authority (Professional Golf Hall of Fame)
Series A 5.50% 3/1/17............................. 750,000 743,347
-----------
1,097,043
-----------
Lease/Certificates of Participation - 12.17%
Brevard County School Board
5.50% 7/1/21 (AMBAC).............................. 750,000 737,775
Florida St. University Systems Certificates of
Participation 5.00% 5/1/18........................ 400,000 371,964
Hillsborough County Florida School Board
Certificates of Participation (Master Lease
Program) Series A 5.00% 7/1/23 (MBIA)............. 1,000,000 910,510
-----------
2,020,249
-----------
*Pre-Refunded/Escrowed to Maturity
Bonds - 4.67%
Miramar Wastewater Improvement
6.75% 10/1/25-04 (FGIC)........................... 100,000 111,002
Palm Beach County Health Facilities Authority
(Good Samaritan Health System) 6.30%
10/1/22-05........................................ 130,000 141,453
St. Lucie County (Special Assessment South
Hutchinson Island) 6.10% 11/1/20-05 (AG).......... 150,000 163,616
Volusia Florida Industrial Development Authority
(Bishops Glen Project Retirement Health
Facilities) 7.50% 11/1/16-06...................... 320,000 359,149
-----------
775,220
-----------
Recreational Facility Revenue Bonds - 5.59%
Jacksonville Sewer & Solid Waste Disposal
Facilities Authority (Anheuser Busch Project)
5.875% 2/1/36 (AMT)............................... 150,000 148,544

<PAGE>

12 for tax-exempt income

DELAWARE TAX-FREE FLORIDA FUND
STATEMENT OF NET ASSETS (CONTINUED)
- --------------------------------------------------------------------------------
Principal Market
Amount Value
- --------------------------------------------------------------------------------
MUNICIPAL BONDS (CONTINUED)
Recreational Facility Revenue Bonds (Continued)

Village Center Community Development District
(Florida Recreational Revenue) Series A
5.50% 11/1/10 (MBIA)................................ $750,000 $ 779,122
-----------
927,666
-----------
Transportation Revenue Bonds - 3.94%
Florida State Mid-Bay Bridge Authority
Series D 6.125% 10/1/22............................. 160,000 159,306
Greater Orlando Aviation Authority
(Orlando Airport Facilities) 5.50% 10/1/17
(FGIC/AMT).......................................... 500,000 494,895
-----------
654,201
-----------
Utility Revenue Bonds - 0.53%
Puerto Rico Electric Power Authority
Series X 5.50% 7/1/25............................... 90,000 88,169
-----------
88,169
-----------
Waste Disposal Revenue Bonds - 1.21%
Dade County Solid Waste Special Obligation
5.125% 10/1/10 (AMBAC).............................. 200,000 200,538
-----------
200,538
-----------
Water & Sewer Revenue Bonds - 10.04%
Jacksonville Electric Authority Revenue Water &
Sewer Systems Series A 5
5.625% 10/1/37...................................... 500,000 494,170
Key West Sewer 5.70% 10/1/26 (FGIC).................... 100,000 100,504
North Springs, District of Florida Water & Sewer
4.75% 10/1/23....................................... 200,000 171,998
Peace River/Manasota Regional Water Supply
Authority Series A 5.00% 10/1/28 (MBIA)............. 1,000,000 899,800
-----------
1,666,472
-----------
Other Revenue Bonds - 14.21%
Bay City, Florida Sales Tax Revenue
4.75% 9/1/23........................................ 500,000 430,125
Dade County Special Obligation Series B
5.00% 10/1/35 (AMBAC)............................... 200,000 177,554
Lake Bernadette Community Development District
(Special Assessment) Series A 8.00%
5/1/17.............................................. 250,000 258,665
Miami, Dade County (Special Obligation Sub)
Series B 5.00% 10/1/37 (MBIA)....................... 250,000 220,105
Northern Palm Beach County Improvement District
(Special Assessment-Abacoa Water Control)
7.20% 8/1/16 (FGIC)................................. 300,000 324,087
Orlando, Florida (Special Assessment) Series B
5.25% 5/1/05........................................ 450,000 439,434
Orlando & Orange County Expressway Authority
5.95% 7/1/23........................................ 250,000 250,738
Tampa Palms Community Development District
(Richmond Place Project) 7.50% 5/1/18............... 245,000 257,855
-----------
2,358,563
-----------
Total Municipal Bonds (cost $16,332,620)............... 16,100,475
-----------

- --------------------------------------------------------------------------------
Number of Market
Shares Value
- --------------------------------------------------------------------------------
Short-Term Investments - 1.55%
Norwest Advantage Municipal Money Market Fund.......... 257,733 $ 257,733
-----------
Total Short-Term Investments (cost $257,733)........... 257,733
-----------

TOTAL MARKET VALUE OF SECURITIES OWNED - 98.57%
(cost $16,590,353)............................................. $16,358,208
RECEIVABLES AND OTHER ASSETS NET OF LIABILITIES - 1.43%........... 237,771
-----------
NET ASSETS APPLICABLE TO 1,576,087 SHARES
($0.01 PAR VALUE) OUTSTANDING - 100.00%........................ $16,595,979
===========

NET ASSET VALUE - TAX-FREE FLORIDA FUND CLASS A
($11,406,270 / 1,083,656 SHARES)............................... $10.53
======
NET ASSET VALUE - TAX-FREE FLORIDA FUND CLASS B
($4,467,683 / 423,882 SHARES )................................. $10.54
======
NET ASSET VALUE - TAX-FREE FLORIDA FUND CLASS C
($722,026 / 68,549 SHARES ).................................... $10.53
======
- ------------------------
* For Pre-Refunded Bonds, the stated maturity is followed by the year in
which each bond is pre-refunded.

Summary of Abbreviations:
AG - Insured by 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 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 AUGUST 31, 1999:
Common stock, $0.01 par value, 10,000,000,000 shares
authorized to the Fund with 1,000,000,000 shares allocated to
Tax-Free Florida Fund Class A, 1,000,000,000 shares allocated
to Tax-Free Florida Fund Class B, and 1,000,000,000 shares
allocated to Tax-Free Florida Fund Class C..................... $16,953,378
Accumulated net realized loss on investments...................... (125,254)
Net unrealized depreciation of investments........................ (232,145)
-----------
Total Net Assets.................................................. $16,595,979
===========

NET ASSET VALUE AND OFFERING PRICE FOR TAX-FREE
FLORIDA FUND CLASS A
Net asset value per share (A)..................................... $10.53
Sales charge (3.75% of offering price or 3.89% of amount
invested per share) (B)........................................ 0.41
------
Offering price.................................................... $10.94
======
- ---------------------
(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 for Tax-Free Florida Fund Class A.

See accompanying notes

<PAGE>

for tax-exempt income 13

VOYAGEUR INVESTMENT TRUST
DELAWARE TAX-FREE FLORIDA INSURED FUND
STATEMENT OF NET ASSETS
AUGUST 31, 1999
- --------------------------------------------------------------------------------
Principal Market
Amount Value
- --------------------------------------------------------------------------------
MUNICIPAL BONDS - 98.65%
General Obligation Bonds - 6.83%
Florida State Board of Education Capital Outlay
Public Education-Series B 4.50% 6/1/28
(MBIA)............................................ $11,000,000 $ 8,931,560
-----------
8,931,560
-----------
Higher Education Revenue Bonds - 1.61%
Escambia, Florida Housing Financial Authority
Dormatory Revenue University of West Florida
Foundation Income Project 4.75% 6/1/28
(MBIA)............................................ 2,500,000 2,107,125
-----------
2,107,125
-----------
Hospital Revenue Bonds - 15.43%
Hillsborough County-Tampa General Hospital
6.375% 10/1/13 (FSA).............................. 3,600,000 3,826,764
Indian River County Hospital District
6.10% 10/1/18 (FSA)............................... 3,000,000 3,157,770
Lee County Hospital Board - Lee Memorial
Hospital 6.35% 3/26/20 (MBIA)..................... 10,000,000 10,576,497
Tallahassee Health Facilities - Tallahassee
Memorial Regional Medical Center Series B
6.00% 12/1/15 (MBIA).............................. 2,500,000 2,606,825
-----------
20,167,856
-----------
Housing Revenue Bonds - 22.41%
Florida State Housing Finance Agency Crossings
Indian Run Apartments HUD Series V (LOC
First Union National Bank of North Carolina)
6.10% 12/1/26 (AMT) (AMBAC)....................... 750,000 765,308
Florida State Housing Finance Agency Crossings
Indian Run Apartments HUD Series V (LOC
First Union National Bank of North Carolina)
6.20% 12/1/36 (AMT) (AMBAC)....................... 1,790,000 1,839,189
Florida State Housing Finance Agency Landings at
Sea Forest Apartments FHA Series T (LOC
First Union National Bank of North Carolina)
5.85% 12/1/18 (AMT) (AMBAC)....................... 495,000 500,584
Florida State Housing Finance Agency Landings At
Sea Forest Apartments FHA Series T (LOC
First Union National Bank of North Carolina)
6.05% 12/1/36 (AMT) (AMBAC)....................... 700,000 714,322
Florida State Housing Finance Agency Leigh
Meadows Apartments Section 8 Series N
(LOC First Union National Bank of North Carolina)
6.20% 9/1/26 (AMT) (AMBAC)........................ 2,765,000 2,839,904
Florida State Housing Finance Agency Leigh
Meadows Apartments Section 8 Series N (LOC
First Union National Bank of North Carolina)
6.30% 9/1/36 (AMT) (AMBAC)........................ 2,000,000 2,069,300
Florida State Housing Finance Agency Mariner
Club Apartments - Series K-1 6.25%
9/1/26 (AMT) (AMBAC).............................. 2,000,000 2,075,280

- --------------------------------------------------------------------------------
Principal Market
Amount Value
- --------------------------------------------------------------------------------
MUNICIPAL BONDS (CONTINUED)
Housing Revenue Bonds(Continued)
Florida State Housing Finance Agency Mariner
Club Apartments Series K-1 6.375%
9/1/36 (AMT) (AMBAC).............................. $3,500,000 $3,641,960
Florida State Housing Finance Agency Riverfront
Apartments Section 8 Series A 6.25%
4/1/37 (AMT) (AMBAC).............................. 1,000,000 1,029,030
Florida State Housing Finance Agency Spinnaker
Cove Apartments Series G (LOC First Union
National Bank of North Carolina) 6.50%
7/1/36 (AMT) (AMBAC).............................. 500,000 523,550
Florida State Housing Finance Agency Sterling
Palms Apartments Series D-1 (LOC First Union
National Bank of North Carolina) 6.30%
12/1/16 (AMT) (AMBAC)............................. 1,000,000 1,042,930
Florida State Housing Finance Agency Sterling
Palms Apartments Series D-1 (LOC First Union
National Bank of North Carolina) 6.40%
12/1/26 (AMT) (AMBAC)............................. 1,500,000 1,559,940
Florida State Housing Finance Agency Sterling
Palms Apartments Series D-1 (LOC First Union
National Bank of North Carolina) 6.50%
6/1/36 (AMT) (AMBAC).............................. 6,540,000 6,845,680
Florida State Housing Finance Agency
Woodbridge Apartments Series L (LOC First
Union National Bank of North Carolina)
6.15% 12/1/26 (AMT) (AMBAC)....................... 1,750,000 1,791,913
Florida State Housing Finance Agency Woodbridge
Apartments Series L (LOC First Union National
Bank of North Carolina) 6.25% 6/1/36
(AMT) (AMBAC)..................................... 2,000,000 2,063,480
-----------
29,302,370
-----------
Industrial Development Revenue Bonds - 0.80%
Canaveral Port Authority 6.00% 6/1/12 (FGIC)...... 1,000,000 1,049,040
-----------
1,049,040
-----------
Municipal Lease Bonds - 4.47%
Palm Beach County School Board, Inverse
Floating Certificate 6.83% 8/1/15
(AMBAC)........................................... 5,875,000 5,837,929
-----------
5,837,929
-----------
Pre-Refunded Bonds - 15.57%
Florida State Turnpike Authority 6.30%
7/10/12-02 (FGIC)................................. 2,000,000 2,124,680
Miramar Wastewater Improvement 6.75%
10/1/25-04 (FGIC)................................. 2,425,000 2,691,799
North Port Utilities System 6.15%
10/1/09-02 (FGIC)................................. 1,500,000 1,606,815
North Port Utilities System 6.25%
10/1/22-02 (FGIC)................................. 5,000,000 5,370,300

<PAGE>

14 for tax-exempt income

DELAWARE TAX-FREE FLORIDA INSURED FUND
STATEMENT OF NET ASSETS (CONTINUED)
- --------------------------------------------------------------------------------
Principal Market
Amount Value
- --------------------------------------------------------------------------------
MUNICIPAL BONDS (CONTINUED)
Pre-Refunded Bonds (Continued)
Palm Beach Solid Waste Authority 6.00%
12/1/07-02 (MBIA)................................. $1,000,000 $ 1,069,260
Palm Beach Solid Waste Authority 6.25%
12/1/08-02 (MBIA)................................. 2,000,000 2,153,520
Port St. Lucie Utility System 6.00%
9/1/24-04 (FGIC).................................. 5,000,000 5,336,750
-----------
20,353,124
-----------
Sales Tax Revenue Bonds - 3.62%
Bay City, Florida Sales Tax Revenue 4.75%
9/1/23 (FSA)...................................... 5,500,000 4,731,375
-----------
4,731,375
-----------
Special Utility Bonds - 0.80%
New Smyrna Beach Utilities Commission 6.00%
10/1/13 (FGIC).................................... 1,000,000 1,052,370
-----------
1,052,370
-----------
State Agency Revenue Bonds - 1.11%
Ocoee, Florida Revenue Refunding &
Improvement Transportation 4.50%
10/1/23 (MBIA).................................... 1,750,000 1,448,790
-----------
1,448,790
-----------
Transportation Revenue Bonds - 4.98%
Florida State Turnpike Authority, Inverse
Floating Certificate 6.57% 7/1/12 (FGIC).......... 5,000,000 5,006,700
Orlando & Orange County Expressway, Inverse
Floating Certificate 6.57% 7/1/12
(AMBAC)........................................... 1,500,000 1,502,010
-----------
6,508,710
-----------
Water & Sewer Revenue Bonds - 5.77%
Coral Springs Water & Sewer Series A
6.00% 9/1/10 (FGIC)............................... 1,000,000 1,053,030
Jupiter Water Series A 6.25% 10/1/12
(AMBAC)........................................... 2,000,000 2,098,540
North Springs Improvement District Water
Revenue 4.75% 10/1/23 (MBIA)...................... 1,125,000 967,489
Tampa Bay, Florida Water Utility Systems
Revenue 4.75% 10/1/27 (FGIC)...................... 4,015,000 3,429,011
-----------
7,548,070
-----------
Other Revenue Bonds - 15.25%
Florida State Board of Education Lottery Revenue
4.50% 7/1/18 (FGIC)............................... 5,000,000 4,255,750
Florida State Division Board of Finance
Department of General Services Department
of Environmental Resources Preservation
2000 Series A 5.75% 7/1/13 (AMBAC)................ 5,000,000 5,124,200
Jupiter Sales Tax 6.375% 9/1/20 (AMBAC).............. 2,500,000 2,617,575
Marion County Public Improvement Sales Tax
6.125% 12/1/08 (MBIA)............................. 1,000,000 1,054,100
Nassau County Optional Gas Tax-Fuel Sales Tax
6.00% 3/1/09 (FGIC).................................. 1,000,000 1,045,420

- --------------------------------------------------------------------------------
Principal Market
Amount Value
- --------------------------------------------------------------------------------
MUNICIPAL BONDS (CONTINUED)
Other Revenue Bonds (Continued)
Ocala Optional Gas Tax-Fuel Sales Tax 6.00%
12/1/09 (AMBAC)................................... $1,000,000 $ 1,052,410
Ocoee, Florida Revenue 4.50% 10/1/28 (MBIA).......... 1,000,000 813,530
Orange County, Florida Tourist Revenue 4.75%
10/1/20 (AMBAC)................................... 1,000,000 864,430
Osceola County Celebration Community
Development District Assessment 6.10%
5/1/16 (MBIA)..................................... 705,000 736,767
Osceola County Enterprise Community Development
District - Special Assessment 6.10%
5/1/16 (MBIA)..................................... 1,000,000 1,045,060
Pembroke Pines Capital Improvement 5.95%
10/1/20 (AMBAC)................................... 1,225,000 1,325,487
------------
19,934,729
------------
Total Municipal Bonds (cost $126,837,008)............ 128,973,048
------------

TOTAL MARKET VALUE OF SECURITIES OWNED - 98.65%
(cost $126,837,008)............................................ $128,973,048
RECEIVABLES AND OTHER ASSETS NET OF LIABILITIES - 1.35%........... 1,770,115
------------
NET ASSETS APPLICABLE TO 12,161,321 SHARES
($0.01 PAR VALUE) OUTSTANDING - 100.00%........................ $130,743,163
============

NET ASSET VALUE - TAX- FREE FLORIDA INSURED FUND CLASS A
($125,837,735 / 11,705,000 SHARES)............................. $10.75
======
NET ASSET VALUE - TAX- FREE FLORIDA INSURED FUND CLASS B
($4,798,928 / 446,420 SHARES).................................. $10.75
======
NET ASSET VALUE - TAX- FREE FLORIDA INSURED FUND CLASS C
($106,500 / 9,901 SHARES)...................................... $10.76
======
- ----------------------

* 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
FSA - Insured by Financial Security Assurance
MBIA - Insured by the Municipal Bond Insurance Association

COMPONENTS OF NET ASSETS AT AUGUST 31, 1999:
Common stock, $0.01 par value, unlimited shares authorized
to the Tax-Free Florida Insured Fund........................... $134,685,031
Accumulated net realized loss on investments...................... (6,077,908)
Net unrealized appreciation of investments........................ 2,136,040
------------
Total net assets.................................................. $130,743,163
============

<PAGE>

for tax-exempt income 15

DELAWARE TAX-FREE FLORIDA INSURED FUND
STATEMENT OF NET ASSETS (CONTINUED)
- --------------------------------------------------------------------------------
NET ASSET VALUE AND OFFERING PRICE FOR
TAX-FREE FLORIDA INSURED FUND CLASS A
Net asset value per share (A)....................................... $10.75
Sales charge (3.75% of offering price or 3.91% of
amount invested per share) (B)................................... 0.42
------
Offering price...................................................... $11.17
======
- ----------------------
(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 for Tax- Free Florida Insured Fund Class A.

See accompanying notes

VOYAGEUR MUTUAL FUNDS, INC.
DELAWARE TAX-FREE NEW YORK FUND
STATEMENT OF NET ASSETS
AUGUST 31, 1999
- --------------------------------------------------------------------------------
Principal Market
Amount Value
- --------------------------------------------------------------------------------
MUNICIPAL BONDS - 96.31%
City Agencies Revenue Bonds - 8.08%
New York City Transitional Finance Authority
Revenue (Future Tax) Series A 5.00%
8/15/27............................................ $500,000 $ 444,970
New York State (Local Government Assistance
Refunded) Series B 4.875% 4/1/20................... 600,000 535,110
----------
980,080
----------
General Obligation Bonds - 3.48%
New York City Series C 5.375% 11/15/27................ 450,000 421,785
----------
421,785
----------
Higher Education Revenue Bonds - 19.63%
Albany, New York Individual Development
Agency (Sage College Project) Series A 5.30%
4/1/29............................................. 500,000 446,740
New York State Dormitory Authority Revenue
(Rochester Institute of Technology) 5.00%
7/1/14............................................. 500,000 475,815
New York State Dormitory Authority Revenue
Series F 5.25% 7/1/18.............................. 600,000 577,056
New York State Dormitory Authority Revenue
(State University Educational Facilities)
Series B
4.75% 5/15/28...................................... 500,000 416,665
7.50% 5/15/11...................................... 400,000 464,680
----------
2,380,956
----------
Hospital Revenue Bonds - 10.34%
New York State Dormitory Authority Revenue
(Chapel Oaks) 5.45% 7/1/26 (LOC Allied
Irish Bank)........................................ 450,000 426,326

- --------------------------------------------------------------------------------
Principal Market
Amount Value
- --------------------------------------------------------------------------------
Municipal Bonds (CONTINUED)
Hospital Revenue Bonds (Continued)
New York State Dormitory Authority Revenue
(Mental Health) Series D 5.90% 2/15/12............. $250,000 $259,523
New York State Dormitory Authority Revenue
(Millard Fillmore Hospital) 5.375%
2/1/32 (AMBAC)..................................... 450,000 425,930
New York State Medical Care Facility Finance
Agency Revenue (Mental Health) 7.70%
2/15/18............................................ 140,000 141,915
----------
1,253,694
----------
Industrial Development Revenue
Bonds - 5.76%
New York City Industrial Development Agency
(Brooklyn Navy Yard Cogen Partners) 5.75%
10/1/36 (AMT)...................................... 450,000 424,426
Oneida County, New York Industrial Development
Agency Revenue (Mohawk Valley Handicapped)
5.35% 3/15/29...................................... 300,000 274,707
----------
699,133
----------
Pre-Refunded/Escrowed to Maturity
Bonds - 24.36%
New York City General Obligation Series F 8.25%
11/15/17-01........................................ 690,000 759,517
New York State Dormitory Authority Revenue
(Pooled Capital Program) 7.80%
12/1/05-98 (FGIC).................................. 136,000 138,169
New York State (Local Government Assistance
Corporation) Series B 7.50% 4/1/20-01.............. 600,000 642,852
New York State Thruway Authority Service Contract
Revenue (Local Highway & Bridge) 6.25%
4/1/14-05.......................................... 500,000 546,110
New York State Urban Development Corporation
Revenue Correctional Facilities 7.375%
1/1/18-02.......................................... 600,000 652,392
United Nations Development Corporation Senior
Lien Series A 6.00% 7/1/12-03...................... 200,000 215,046
----------
2,954,086
----------
Territorial Revenue Bonds - 5.93%
Puerto Rico Commonwealth Highway &
Transportation Authority Highway Revenue
Series Y 5.50% 7/1/36.............................. 475,000 461,106
Puerto Rico Electric Power Authority Series EE
4.75% 7/1/24....................................... 300,000 258,096
----------
719,202
----------
Transportation Revenue Bonds - 7.81%
Metropolitan Transportation Authority New York
Service Contract (Commuter Facilities)
Series 0 5.75% 7/1/13.............................. 400,000 411,908
New York City Industrial Development Agency
(British Airways) 5.25% 12/1/32.................... 600,000 535,452
----------
947,360
----------

<PAGE>

16 for tax-exempt income

DELAWARE TAX-FREE NEW YORK FUND
STATEMENT OF NET ASSETS (CONTINUED)
- --------------------------------------------------------------------------------
Principal Market
Amount Value
- --------------------------------------------------------------------------------
MUNICIPAL BONDS (CONTINUED)
Water & Sewer Revenue Bonds - 10.92%
Clifton Park, New York Water Authority (Water
System Revenue) Series A 5.00% 10/1/19............. $500,000 $ 460,120
New York City Municipal Water Financial Authority
Series A 4.75% 6/15/31............................. 500,000 417,855
Series B 5.75% 6/15/29............................. 450,000 446,153
-----------
1,324,128
-----------
Total Municipal Bonds (cost $11,869,489).............. 11,680,424
-----------

TOTAL MARKET VALUE OF SECURITIES OWNED - 96.31%
(COST $11,869,489)............................................. $11,680,424
RECEIVABLES AND OTHER ASSETS NET OF LIABILITIES - 3.69%........... 447,194
-----------
NET ASSETS APPLICABLE TO 1,227,675 SHARES
($0.01 PAR VALUE) OUTSTANDING - 100%........................... $12,127,618
===========

NET ASSET VALUE - TAX-FREE NEW YORK FUND CLASS A
($10,579,861 / 1,070,763 SHARES)............................... $9.88
=====
NET ASSET VALUE - TAX-FREE NEW YORK FUND CLASS B
($1,435,358 / 145,509 SHARES).................................. $9.86
=====
NET ASSET VALUE - TAX-FREE NEW YORK FUND CLASS C
($112,399 / 11,403 SHARES)..................................... $9.86
=====
- -------------------
* 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 AUGUST 31, 1999:
Common stock, $0.01 par value, 100,000,000,000 shares
authorized to the Fund with 10,000,000,000 shares allocated
to Tax-Free New York Fund Class A, 10,000,000,000 shares
allocated to Tax-Free New York Fund Class B, and
10,000,000,000 shares allocated to Tax-Free New York Fund
Class C........................................................ $12,337,412
Accumulated net realized loss on investments...................... (20,729)
Net unrealized depreciation of investments........................ (189,065)
-----------
Total Net Assets.................................................. $12,127,618
===========

NET ASSET VALUE AND OFFERING PRICE FOR TAX-FREE
NEW YORK FUND CLASS A
Net asset value per share (A)..................................... $9.88
Sales charge (3.75% of offering price or 3.85% of amount invested
per share) (B)................................................. 0.38
------
Offering price.................................................... $10.26
======
- ---------------------
(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 for Tax-Free New York Fund Class A.

See accompanying notes

<PAGE>

for tax-exempt income 17

STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED AUGUST 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
Voyageur Voyaguer Mutual
Investment Trust Funds, Inc.
---------------------------------------------------
Tax-Free Tax-Free Tax-Free
Florida Fund Florida Insured New York Fund
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest.................................................................... $ 889,027 $ 8,082,711 $ 674,981
---------- ------------ ---------

EXPENSES:
Management fees............................................................. 87,289 718,482 62,067
Distribution expense........................................................ 78,249 394,288 38,303
Dividend disbursing and transfer agent fees and expenses.................... 16,972 90,604 16,225
Registration fees........................................................... 2,950 -- 8,530
Reports and statements to shareholders...................................... 12,950 2,145 3,750
Accounting and administration............................................... 6,900 32,595 4,550
Custodian fees.............................................................. 2,005 500 1,530
Professional fees........................................................... 5,785 4,126 6,330
Taxes (other than taxes on income).......................................... 705 -- 450
Directors' fees............................................................. 1,425 1,028 750
Other....................................................................... 11,474 3,310 7,361
---------- ------------ ---------
226,704 1,247,078 149,846
Less expenses absorbed or waived............................................ (88,384) -- (62,720)
Less expenses paid indirectly............................................... (377) (3,310) (275)
---------- ------------ ---------
Total operating expenses.................................................... 137,943 1,243,768 86,851
Interest expense............................................................ 405 9,099 503
---------- ------------ ---------
Total expenses.............................................................. 138,348 1,252,867 87,354
---------- ------------ ---------

NET INVESTMENT INCOME....................................................... 750,679 6,829,844 587,627
---------- ------------ ---------

NET REALIZED AND UNREALIZED GAIN (LOSS)ON INVESTMENTS:
Net realized gain (loss) on investments..................................... (123,698) 3,752,953 (11,244)
Net change in unrealized appreciation/depreciation of investments........... (972,725) (11,471,230) (924,826)
---------- ------------ ---------

NET REALIZED AND UNREALIZED LOSS ON INVESTMENTS............................. (1,096,423) (7,718,277) (936,070)
---------- ------------ ---------
Net decrease in net assets resulting from operations........................ $ (345,744) $ (888,433) $(348,443)
========== =========== =========
</TABLE>

See accompanying notes

<PAGE>

18 for tax-exempt income

STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
Voyageur Investment Trust Voyageur Investment Trust
Tax-Free Florida Fund Tax-Free Florida Insured Fund
------------------------------------------------------------------------------
Year Eight Months Year Year Eight Months Year
Ended Ended Ended Ended Ended Ended
8/31/99 8/31/98 12/31/97 8/31/99 8/31/98 12/31/97
<S> <C> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS:
Net investment income............................... $ 750,679 $ 382,405 $ 430,343 $ 6,829,844 $ 4,948,531 $ 8,878,219
Net realized gain (loss) on investments............. (123,698) 17,721 28,365 3,752,953 1,552,120 2,172,843
Net change in unrealized appreciation/depreciation
of investments................................... (972,725) 222,208 380,127 (11,471,230) 280,912 5,978,357
----------- ----------- ----------- ------------ ------------ ------------
Net increase (decrease) in net assets resulting
from operations.................................. (345,744) 622,334 838,835 (888,433) 6,781,563 17,029,419
----------- ----------- ----------- ------------ ------------ ------------

DISTRIBUTION TO SHAREHOLDERS FROM:
Net investment income:
Class A.......................................... (549,061) (296,074) (330,131) (6,646,531) (4,846,965) (8,815,981)
Class B.......................................... (172,634) (77,237) (100,213) (181,234) (101,566) (165,230)
Class C.......................................... (28,984) (9,128) (3,278) (2,079) -- (200)
Net realized gain on investments:
Class A.......................................... (11,362) (4,266) (11,878) -- -- --
Class B.......................................... (4,026) (1,470) (4,598) -- -- --
Class C.......................................... (621) (246) (239) -- -- --
----------- ----------- ----------- ------------ ------------ ------------
(766,688) (388,421) (450,337) (6,829,844) (4,948,531) (8,981,411)
----------- ----------- ----------- ------------ ------------ ------------

CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold:
Class A.......................................... 4,574,720 2,841,918 2,855,133 4,395,898 2,118,858 4,527,089
Class B.......................................... 2,352,953 1,428,837 1,142,910 1,543,291 758,358 820,580
Class C.......................................... 504,377 419,228 110,984 109,981 -- 21,663
Net asset value of shares issued upon reinvestment
of distributions from net investment income
and net realized gain on investments:
Class A.......................................... 260,924 120,860 109,685 1,978,302 1,398,970 2,516,492
Class B.......................................... 61,646 14,952 18,887 69,064 34,650 49,154
Class C.......................................... 11,255 4,259 2,636 1,971 -- 126
----------- ----------- ----------- ------------ ------------ ------------
7,765,875 4,830,054 4,240,235 8,098,507 4,310,836 7,935,104
----------- ----------- ----------- ------------ ------------ ------------
Cost of shares repurchased:
Class A.......................................... (2,654,355) (651,778) (1,502,655) (19,743,806) (20,739,783) (44,980,021)
Class B.......................................... (1,015,161) (814,622) (213,644) (754,885) (582,617) (333,793)
Class C.......................................... (298,373) (11,000) -- -- -- (22,065)
----------- ----------- ----------- ------------ ------------ ------------
(3,967,889) (1,477,400) (1,716,299) (20,498,691) (21,322,400) (45,335,879)
----------- ----------- ----------- ------------ ------------ ------------
Increase (decrease) in net assets derived from
capital share transactions....................... 3,797,986 3,352,654 2,523,936 (12,400,184) (17,011,564) (37,400,775)
----------- ----------- ----------- ------------ ------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS............... 2,685,554 3,586,567 2,912,434 (20,118,461) (15,178,532) (29,352,767)

NET ASSETS:
Beginning of period................................. 13,910,425 10,323,858 7,411,424 150,861,624 166,040,156 195,392,923
----------- ----------- ----------- ------------ ------------ ------------
End of period....................................... $16,595,979 $13,910,425 $10,323,858 $130,743,163 $150,861,624 $166,040,156
=========== =========== =========== ============ ============ ============
</TABLE>

See accompanying notes

<PAGE>

for tax-exempt income 19

STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>

Voyageur Mutual Funds, Inc.
Tax-Free New York Fund
----------------------------------------------
Year Eight Months Year
Ended Ended Ended
8/31/99 8/31/98 12/31/97
<S> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS:
Net investment income............................................................ $ 587,627 $ 340,336 $ 556,331
Net realized gain (loss) on investments.......................................... (11,244) 20,031 187,711
Net change in unrealized appreciation/depreciation of investments................ (924,826) 22,820 (71,772)
----------- ----------- -----------
Net increase (decrease) in net assets resulting from operations.................. (348,443) 383,187 672,270
----------- ----------- -----------

DISTRIBUTION TO SHAREHOLDERS FROM:
Net investment income:
Class A....................................................................... (538,857) (331,533) (548,002)
Class B....................................................................... (44,901) (7,311) (8,649)
Class C....................................................................... (3,869) (1,658) (2,665)
Net realized gain on investments:
Class A....................................................................... (24,643) (9,366) (154,974)
Class B....................................................................... (1,574) (428) (2,715)
Class C....................................................................... (176) (54) (902)
----------- ----------- -----------
(614,020) (350,350) (717,907)
----------- ----------- -----------

CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold:
Class A....................................................................... 2,613,937 750,401 657,442
Class B....................................................................... 1,443,259 308,323 72,748
Class C....................................................................... 59,191 -- --
Net asset value of shares issued upon reinvestment of distributions from net
investment income and net realized gain on investments:
Class A....................................................................... 428,293 255,096 574,581
Class B....................................................................... 32,257 6,080 10,758
Class C....................................................................... 3,986 1,717 3,708
----------- ----------- -----------
4,580,923 1,321,617 1,319,237
----------- ----------- -----------
Cost of shares repurchased:
Class A....................................................................... (1,595,227) (619,981) (1,671,287)
Class B....................................................................... (400,648) (15,315) (167,603)
Class C....................................................................... -- -- (236)
----------- ----------- -----------
(1,995,875) (635,296) (1,839,126)
----------- ----------- -----------
Increase (decrease) in net assets derived from capital share transactions........ 2,585,048 686,321 (519,889)
----------- ----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS............................................ 1,622,585 719,158 (565,526)

NET ASSETS:
Beginning of period.............................................................. 10,505,033 9,785,875 10,351,401
----------- ----------- -----------
End of period.................................................................... $12,127,618 $10,505,033 $9,785,875
=========== =========== ==========
</TABLE>

See accompanying notes

<PAGE>

20 for tax-exempt income

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

Voyageur Investment Trust
Tax-Free Florida Fund - Class A
---------------------------------------------------------
Eight Period From
Year Months Year Year 3/2/95(2)
Ended Ended Ended Ended to
8/31/99 8/31/98(1) 12/31/97(4) 12/31/96 12/31/95
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period...................................... $11.230 $11.020 $10.520 $10.730 $10.000

Income (loss) from investment operations:
Net investment income.................................................. 0.532 0.374 0.591 0.590 0.470
Net realized and unrealized gain (loss) on investments................. (0.688) 0.215 0.523 (0.210) 0.750
------- ------- ------- ------- -------
Total from investment operations....................................... (0.156) 0.589 1.114 0.380 1.220
------- ------- ------- ------- -------

Less dividends and distributions:
Dividends from net investment income................................... (0.532) (0.374) (0.594) (0.590) (0.470)
Distributions from net realized gain on investments.................... (0.012) (0.005) (0.020) -- (0.020)
------- ------- ------- ------- -------
Total dividends and distributions...................................... (0.544) (0.379) (0.614) (0.590) (0.490)
------- ------- ------- ------- -------
Net asset value, end of period............................................ $10.530 $11.230 $11.020 $10.520 $10.730
======= ======= ======= ======= =======

Total Return(3)........................................................... (1.50%) 5.44% 10.93% 3.74% 12.49%

Ratios and supplemental data:
Net assets, end of period (000 omitted)................................ $11,406 $9,988 $7,506 $5,761 $4,421
Ratio of expenses to average net assets................................ 0.62% 0.55% 0.56% 0.33% 0.32%(5)
Ratio of expenses to average net assets prior to expense
limitation and expenses paid indirectly.............................. 1.16% 1.10% 1.11% 1.25% 1.25%(5)
Ratio of net investment income to average net assets................... 4.81% 4.92% 5.53% 5.66% 5.26%(5)
Ratio of net investment income to average net assets prior
to expense limitation and expenses paid indirectly................... 4.27% 4.37% 4.98% 4.74% 4.33%(5)
Portfolio turnover..................................................... 30% 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 21

Voyageur Investment Trust
Tax-Free Florida Fund - Class B
---------------------------------------------------------
Eight Period From
Year Months Year Year 9/15/95(2)
Ended Ended Ended Ended to
8/31/99 8/31/98(1) 12/31/97(4) 12/31/96 12/31/95
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period...................................... $11.240 $11.030 $10.530 $10.730 $10.370

Income (loss) from investment operations:
Net investment income.................................................. 0.449 0.318 0.527 0.560 0.150
Net realized and unrealized gain (loss) on investments................. (0.688) 0.215 0.531 (0.200) 0.380
------- ------- ------- ------- -------
Total from investment operations....................................... (0.239) 0.533 1.058 0.360 0.530
------- ------- ------- ------- -------

Less dividends and distributions:
Dividends from net investment income................................... (0.449) (0.318) (0.538) (0.560) (0.150)
Distributions from net realized gain on investments.................... (0.012) (0.005) (0.020) -- (0.020)
------- ------- ------- ------- -------
Total dividends and distributions...................................... (0.461) (0.323) (0.558) (0.560) (0.170)
------- ------- ------- ------- -------
Net asset value, end of period............................................ $10.540 $11.240 $11.030 $10.530 $10.730
======= ======= ======= ======= =======

Total Return(3)........................................................... (2.24%) 4.91% 10.35% 3.51% 5.10%

Ratios and supplemental data:
Net assets, end of period (000 omitted)................................ $4,468 $3,368 $2,685 $1,635 $101
Ratio of expenses to average net assets................................ 1.37% 1.30% 1.10% 0.76% 0.44%(5)
Ratio of expenses to average net assets prior to expense
limitation and expenses paid indirectly.............................. 1.91% 1.85% 1.65% 2.00% 2.00%(5)
Ratio of net investment income to average net assets................... 4.06% 4.17% 4.99% 5.23% 4.88%(5)
Ratio of net investment income to average net assets prior
to expense limitation and expenses paid indirectly................... 3.52% 3.62% 4.44% 3.99% 3.32%(5)
Portfolio turnover..................................................... 30% 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>

22 for tax-exempt income

Voyageur Investment Trust
Tax-Free Florida Fund - Class C
--------------------------------------------------------
Eight Period From
Year Months Year Year 4/22/95(2)
Ended Ended Ended Ended to
8/31/99 8/31/98(1) 12/31/97(4) 12/31/96 12/31/95
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period...................................... $11.240 $11.020 $10.520 $10.730 $10.200

Income (loss) from investment operations:
Net investment income.................................................. 0.449 0.318 0.511 0.370 0.330
Net realized and unrealized gain (loss) on investments................. (0.698) 0.225 0.521 (0.210) 0.560
------- ------- ------- ------- -------
Total from investment operations....................................... (0.249) 0.543 1.032 0.160 0.890
------- ------- ------- ------- -------

Less dividends and distributions:
Dividends from net investment income................................... (0.449) (0.318) (0.512) (0.370) (0.340)
Distributions from net realized gain on investments.................... (0.012) (0.005) (0.020) -- (0.020)
------- ------- ------- ------- -------
Total dividends and distributions...................................... (0.461) (0.323) (0.532) (0.370) (0.360)
------- ------- ------- ------- -------
Net asset value, end of period............................................ $10.530 $11.240 $11.020 $10.520 $10.730
======= ======= ======= ======= =======

Total Return(3)........................................................... (2.33%) 5.01% 10.09% 2.97% 8.88%

Ratios and supplemental data:
Net assets, end of period (000 omitted)................................ $722 $554 $133 $16 $9
Ratio of expenses to average net assets................................ 1.37% 1.30% 1.31% 1.15% 1.11%(5)
Ratio of expenses to average net assets prior to expense
limitation and expenses paid indirectly.............................. 1.91% 1.85% 1.86% 2.00% 2.00%(5)
Ratio of net investment income to average net assets................... 4.06% 4.17% 4.78% 4.83% 4.57%(5)
Ratio of net investment income to average net assets prior to
expense limitation and expenses paid indirectly...................... 3.52% 3.62% 4.23% 3.98% 3.68%(5)
Portfolio turnover..................................................... 30% 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 23

<TABLE>
Voyageur Investment Trust
Tax-Free Florida Insured Fund - Class A
------------------------------------------------------------------------
Eight Two
Year Months Year Year Year Months Year
Ended Ended Ended Ended Ended Ended Ended
8/31/99 8/31/98(1) 12/31/97(3) 12/31/96 12/31/95 12/31/94 10/31/94
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period.................... $11.370 $11.240 $10.710 $10.940 $9.520 $9.640 $11.150

Income (loss) from investment operations:
Net investment income................................ 0.537 0.355 0.548 0.530 0.540 0.100 0.550
Net realized and unrealized gain (loss)
on investments..................................... (0.620) 0.130 0.536 (0.230) 1.440 (0.120) (1.460)
------- ------- ------- ------- ------- ------- -------
Total from investment operations..................... (0.083) 0.485 1.084 0.300 1.980 (0.020) (0.910)
------- ------- ------- ------- ------- ------- -------

Less dividends and distributions:
Dividends from net investment income................. (0.537) (0.355) (0.554) (0.530) (0.560) (0.090) (0.540)
Distributions from net realized gain
on investments..................................... -- -- -- -- -- (0.010) (0.060)
------- ------- ------- ------- ------- ------- -------
Total dividends and distributions.................... (0.537) (0.355) (0.554) (0.530) (0.560) (0.100) (0.600)
------- ------- ------- ------- ------- ------- -------
Net asset value, end of period.......................... $10.750 $11.370 $11.240 $10.710 $10.940 $9.520 $9.640
======= ======= ======= ======= ======= ======= =======

Total Return(2)......................................... (0.83%) 4.38% 10.42% 2.90% 21.22% (0.11%) (8.38%)

Ratios and supplemental data:
Net assets, end of period (000 omitted).............. $125,838 $146,659 $162,097 $192,171 $242,425 $240,228 $259,702
Ratio of expenses to average net assets.............. 0.85% 0.87% 0.79% 0.73% 0.51% 0.20%(4) 0.44%
Ratio of expenses to average net assets prior
to expense limitation and expenses
paid indirectly.................................... 0.85% 1.05% 0.85% 0.96% 0.95% 1.06%(4) 0.96%
Ratio of net investment income to average
net assets......................................... 4.77% 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 and
expenses paid indirectly........................... 4.77% 4.54% 5.01% 4.79% 4.80% 5.38%(4) 4.72%
Portfolio turnover................................... 25% 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>

24 for tax-exempt income

Voyageur
Investment Trust
Tax-Free Florida
Voyageur Investment Trust Insured Fund -
Tax-Free Florida Insured Fund - Class B Class C
------------------------------------------------------------------------ ----------------
Eight Two Period From
Year Months Year Year Year Months 3/11/94(2) 1/8/99(1,6)
Ended Ended Ended Ended Ended Ended to to
8/31/99 8/31/98(1) 12/31/97(4) 12/31/96 12/31/95 12/31/94 10/31/94 8/31/99
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period...... $11.370 $11.230 $10.710 $10.940 $9.520 $9.630 $10.640 $11.370

Income (loss) from investment operations:
Net investment income.................. 0.452 0.299 0.477 0.480 0.500 0.090 0.310 0.286
Net realized and unrealized gain
(loss) on investments................ (0.620) 0.139 0.523 (0.230) 1.440 (0.110) (1.010) (0.610)
------- ------- ------- ------- ------- ------- ------- -------
Total from investment operations....... (0.168) 0.438 1.000 0.250 1.940 (0.020) (0.700) (0.324)
------- ------- ------- ------- ------- ------- ------- -------

Less dividends and distributions:
Dividends from net investment income... (0.452) (0.298) (0.480) (0.480) (0.520) (0.080) (0.300) (0.286)
Distributions from net realized gain
on investments....................... -- -- -- -- -- (0.010) (0.010) --
------- ------- ------- ------- ------- ------- ------- -------
Total dividends and distributions...... (0.452) (0.298) (0.480) (0.480) (0.520) (0.090) (0.310) (0.286)
------- ------- ------- ------- ------- ------- ------- -------
Net asset value, end of period............ $10.750 $11.370 $11.230 $10.710 $10.940 $9.520 $9.630 $10.760
======= ======= ======= ======= ======= ======= ======= =======

Total Return(3)........................... (1.58%) 3.95% 9.58% 2.40% 20.76% (0.03%) (6.69%) (2.91%)

Ratios and supplemental data:
Net assets, end of period
(000 omitted)........................ $4,799 $4,202 $3,943 $3,222 $2,814 $1,477 $1,135 $107
Ratio of expenses to average
net assets........................... 1.60% 1.62% 1.46% 1.24% 0.89% 0.59%(5) 1.00%(5) 1.60%
Ratio of expenses to average net
assets prior to expense limitation
and expenses paid indirectly......... 1.60% 1.80% 1.52% 1.72% 1.68% 1.81%(5) 1.28%(5) 1.60%
Ratio of net investment income to
average net assets................... 4.02% 3.97% 4.40% 4.51% 4.80% 5.68%(5) 4.63%(5) 4.02%
Ratio of net investment income to
average net assets prior to expense
limitation and expenses paid
indirectly........................... 4.02% 3.79% 4.34% 4.03% 4.01% 4.46%(5) 4.35%(5) 4.02%
Portfolio turnover..................... 25% 13% 15% 57% 101% 3% 49% 25%
</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 Class C shares were sold and outstanding from September 29, 1997 until
December 18, 1997, when all of the outstanding Class C shares were
redeemed. There were no outstanding Class C shares or shareholder activity
from December 19, 1997 through January 7, 1999. The shareholder activity
for the period September 29, 1997 through December 18, 1997 is not being
disclosed in the Financial Highlights due to its immateriality.

See accompanying notes

<PAGE>

for tax-exempt income 25

Voyageur Mutual Funds, Inc.
Tax-Free New York Fund - Class A
--------------------------------------------------------------------------
Eight Three Three
Year Months Year Months Year Year Months
Ended Ended Ended Ended Ended Ended Ended
8/31/99 8/31/98(1) 12/31/97(4) 12/31/96(2) 9/30/96 9/30/95 9/30/94
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period................... $10.670 $10.640 $10.690 $10.720 $10.870 $10.740 $10.810

Income (loss) from investment operations:
Net investment income............................... 0.523 0.362 0.603 0.120 0.550 0.570 0.150
Net realized and unrealized gain (loss) on
investments....................................... (0.766) 0.040 0.128 0.010 (0.130) 0.170 (0.060)
------- ------- ------- ------- ------- ------- -------
Total from investment operations.................... (0.243) 0.402 0.731 0.130 0.420 0.740 0.090
------- ------- ------- ------- ------- ------- -------

Less dividends and distributions:
Dividends from net investment income................ (0.523) (0.362) (0.606) (0.120) (0.550) (0.590) (0.160)
Distributions from net realized gain on
investments....................................... (0.024) (0.010) (0.175) (0.040) (0.020) (0.020) --
------- ------- ------- ------- ------- ------- -------
Total dividends and distributions................... (0.547) (0.372) (0.781) (0.160) (0.570) (0.610) (0.160)
------- ------- ------- ------- ------- ------- -------
Net asset value, end of period......................... $9.880 $10.670 $10.640 $10.690 $10.720 $10.870 $10.740
======= ======= ======= ======= ======= ======= =======

Total Return(3)........................................ (2.44%) 3.85% 7.09% 1.21% 3.94% 7.31% 0.79%

Ratios and supplemental data:
Net assets, end of period (000 omitted)............. $10,580 $9,978 $9,563 $10,044 $10,548 $11,931 $12,797
Ratio of expenses to average net assets............. 0.66% 1.00% 1.00% 0.97%(5) 1.34% 1.31% 1.09%(5)
Ratio of expenses to average net assets prior to
expense limitation and expenses
paid indirectly................................... 1.19% 1.15% 1.39% 1.12%(5) 1.55% 1.82% 1.09%(5)
Ratio of net investment income to average
net assets........................................ 4.99% 5.12% 5.66% 5.31%(5) 5.14% 5.66% 5.74%(5)
Ratio of net investment income to average net
assets prior to expense limitation and
expenses paid indirectly.......................... 4.46% 4.97% 5.27% 5.16%(5) 4.93% 5.15% 5.74%(5)
Portfolio turnover.................................. 21% 21% 30% 5% 12% 10% 0%
</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 accompanying notes

<PAGE>

26 for tax-exempt income

Voyageur Mutual Funds, Inc.
Tax-Free New York Fund - Class B
--------------------------------------------------------------------
Eight Three Period
Year Months Year months Year From
Ended Ended Ended Ended Ended 11/14/94(2)
8/31/99 8/31/98(1) 12/31/97(5) 12/31/96(3) 9/30/96 to 9/30/95
<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 (loss) from investment operations:
Net investment income...................................... 0.445 0.311 0.524 0.100 0.470 0.430
Net realized and unrealized gain (loss) on investments..... (0.766) 0.049 0.136 -- (0.130) 0.540
------- ------- ------- ------- ------- -------
Total from investment operations........................... (0.321) 0.360 0.660 0.100 0.340 0.970
------- ------- ------- ------- ------- -------

Less dividends and distributions:
Dividends from net investment income....................... (0.445) (0.310) (0.525) (0.100) (0.470) (0.450)
Distributions from net realized gain on investments........ (0.024) (0.010) (0.175) (0.040) (0.020) (0.020)
------- ------- ------- ------- ------- -------
Total dividends and distributions.......................... (0.469) (0.320) (0.700) (0.140) (0.490) (0.470)
------- ------- ------- ------- ------- -------
Net asset value, end of period................................ $9.860 $10.650 $10.610 $10.650 $10.690 $10.840
======= ======= ======= ======= ======= =======

Total Return(4)............................................... (3.18%) 3.44% 6.39% 0.95% 3.14% 9.46%

Ratios and supplemental data:
Net assets, end of period (000 omitted).................... $1,435 $469 $167 $254 $448 $266
Ratio of expenses to average net assets.................... 1.41% 1.75% 1.75% 1.87%(6) 2.09% 2.09%(6)
Ratio of expenses to average net assets prior to expense
limitation and expenses paid indirectly.................. 1.94% 1.90% 2.14% 2.00%(6) 2.30% 2.60%(6)
Ratio of net investment income to average net assets....... 4.24% 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 and expenses paid indirectly....... 3.71% 4.22% 4.52% 4.30%(6) 4.18% 4.17%(6)
Portfolio turnover......................................... 21% 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>

for tax-exempt income 27

FINANCIAL HIGHLIGHTS (CONTINUED)
- --------------------------------------------------------------------------------
Selected data for each share of the Fund outstanding throughout each period were
as follows:
<TABLE>
Voyageur Mutual Funds, Inc.
Tax-Free New York Fund - Class C
--------------------------------------------------------------------
Eight Three
Year Months Year months Year Period From
Ended Ended Ended Ended Ended 4/26/95(2)
8/31/99 8/31/98(1) 12/31/97(5) 12/31/96(3) 9/30/96 to 9/30/95
<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 (loss) from investment operations:
Net investment income...................................... 0.445 0.308 0.522 0.100 0.470 0.210
Net realized and unrealized gain (loss) on investments..... (0.756) 0.042 0.128 -- (0.130) 0.060
------- ------- ------- ------- ------- -------
Total from investment operations........................... (0.311) 0.350 0.650 0.100 0.340 0.270
------- ------- ------- ------- ------- -------

Less dividends and distributions:
Dividends from net investment income....................... (0.445) (0.310) (0.525) (0.100) (0.470) (0.210)
Distributions from net realized gain on investments........ (0.024) (0.010) (0.175) (0.040) (0.020) --
------- ------- ------- ------- ------- -------
Total dividends and distributions.......................... (0.469) (0.320) (0.700) (0.140) (0.490) (0.210)
------- ------- ------- ------- ------- -------
Net asset value, end of period................................ $ 9.860 $10.640 $10.610 $10.660 $10.700 $10.850
======= ======= ======= ======= ======= =======

Total Return(4)............................................... (3.08%) 3.35% 6.29% 0.95% 3.14% 2.54%

Ratios and supplemental data:
Net assets, end of period (000 omitted).................... $112 $58 $56 $53 $52 $51
Ratio of expenses to average net assets.................... 1.41% 1.75% 1.75% 1.84%(6) 2.09% 2.09%(6)
Ratio of expenses to average net assets prior to expense
limitation and expenses paid indirectly.................. 1.94% 1.90% 2.14% 2.00%(6) 2.30% 2.60%(6)
Ratio of net investment income to average net assets....... 4.24% 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 and expenses
paid indirectly.......................................... 3.71% 4.22% 4.52% 4.29%(6) 4.18% 3.93%(6)
Portfolio turnover......................................... 21% 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>

28 for tax-exempt income

NOTES TO FINANCIAL STATEMENTS
AUGUST 31, 1999
- --------------------------------------------------------------------------------
Delaware Tax-Free Florida Fund ("Tax-Free Florida Fund") and Delaware Tax-Free
Florida Insured Fund ("Tax-Free Florida Insured Fund"), series of the Voyageur
Investment Trust are registered as a Maryland Corporation 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 Tax-Free New
York Fund ("Tax-Free New York Fund"), a series of Voyageur Mutual Funds, Inc.,
is registered as a Delaware Business Trust under the Investment Company Act of
1940 (as amended) as a non-diversified, open-end management investment company.

Tax-Free Florida Fund, Tax--Free Florida Insured Fund and Tax-Free New York Fund
each referred to separately as a "Fund" or collectively as the "Funds". 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 Class A carries a front-end sales charge of 3.75%. The
Class B carries a deferred sales charge and the Class C carries a level load
deferred sales charge.

1. Significant Accounting Policies
The following accounting policies are in accordance with generally accepted
accounting principles and are consistently followed by the Funds.

Security Valuation - Long-term debt securities are valued by an independent
pricing service and such prices are believed to reflect the fair value of such
securities. Money market instruments having less than 60 days to maturity are
valued at amortized cost which approximates market value. Other securities and
assets for which market quotations are not readily available, are valued at fair
value as determined in good faith by or under the direction of the Funds Board
of Directors.

Federal Income Taxes - Each Fund intends to continue to qualify as a regulated
investment company and make the requisite distributions to shareholders.
Accordingly, no provision for federal income taxes has been made in the
financial statements. Income and capital gain distributions are determined in
accordance with federal income tax regulations which may differ from generally
accepted accounting principles.

Class Accounting - Investment income, common expenses and realized and
unrealized gain (loss) on investments are allocated to the various classes of
the Funds on the basis of daily net assets of each class. Distribution expenses
relating to a specific Class C are charged directly to that class.

Use of Estimates - The preparation of financial statements in conformity with
generally accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities at
the date of the financial statements and the reported amounts of revenues and
expenses during the reporting period. Actual results could differ from those
estimates.

Other - Expenses common to all funds within the Delaware Investments Family of
Funds are allocated amongst the funds on the basis of average net assets.
Security transactions are recorded on the date the securities are purchased or
sold (trade date). Costs used in calculating realized gains and losses on the
sale of investment securities are those of the specific securities sold.
Interest income is recorded on the accrual basis. Original issue discounts and
market premiums are 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.

Certain expenses of the Funds are paid through "soft dollar" arrangements with
brokers. These transactions are done subject to best price and execution. The
amount of these expenses for the year ended August 31, 1999 were:

Tax-Free Tax-Free Tax-Free
Florida Fund Florida Insured Fund New York Fund
-------------- --------------------- ---------------
$377 $3,310 $275

The expenses paid under the above arrangements are included in their respective
expense captions on the Statement of Operations with the corresponding expense
offset shown as "expenses paid indirectly".

2. Investment Management and Other Transactions with Affiliates In accordance
with the terms of the Investment Management Agreement, the Funds pay Delaware
Management Company ("DMC"), the Investment Manager of each Fund, an annual fee,
which is calculated daily on the net assets of each Fund.

Commencing April 1, 1999, and in accordance with the terms of the Investment
Management Agreement, the Funds pay DMC an annual fee which is calculated daily
at the rate of 0.55% on the first $500 million of average daily net assets of
the fund, 0.50% on the next $500 million, 0.45% on the next $1,500 million and
0.425% on the average daily net assets in excess of $2,500 million for the
Tax-Free Florida Fund and the Tax-Free New York Fund; and 0.50% on the first
$500 million of average daily net assets of the fund, 0.475% on the next $500
million, 0.45% on the next $1,500 million and 0.425% in excess of $2,500 million
for the Tax-Free Florida Insured Fund. Prior to April 1, 1999, the Funds paid
DMC an annual fee calculated at the rate of 0.50% of average daily net assets.

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 exceed the following
percentages of average daily net assets through December 31, 1999:

Tax-Free Tax-Free Tax-Free
Florida Florida Insured New York
Fund Fund Fund
--------- --------------- ----------
Operating expense limitation as a
percentage of average daily
net assets (per annum)............. 0.50%* 0.65%* 0.25%*

* Prior to July 1, 1999, such expenses were limited to 0.35% for Tax-Free
Florida Fund. Prior to December 31, 1998, such expenses were limited to
0.31%, 0.62%, 0.75% for Tax-Free Florida Fund, Tax-Free Florida Insured
Fund and Tax-Free New York Fund, respectively.

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

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

Tax-Free Tax-Free Tax-Free
Florida Florida Insured New York
Fund Fund Fund
--------- --------------- ----------
Investment Management
fees payable to DMC................ -- $48,705 --
Dividend disbursing, transfer
agent fees, accounting
services and other expenses
payable to DSC..................... 2,193 15,882 2,258
Other expenses payable to DMC
and affiliates..................... 4,402 34,134 3,328

Pursuant to the Distribution Agreement, the Funds pay Delaware Distributors,
L.P. ("DDLP"), the Distributor and an affiliate of DMC, an annual fee not to
exceed 0.25% of the average daily net assets of the Class A and 1.00% of the
average daily net assets of the B and Class C for each Fund.

<PAGE>

for tax-exempt income 29

NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
2. Investment Management and Other Transactions with Affiliates (Continued) For
the year ended August 31, 1999, DDLP earned commissions on sales of the Fund
Class A shares for each Fund as follows:

Tax-Free Tax-Free Tax-Free
Florida Fund Florida Insured Fund New York Fund
-------------- --------------------- ---------------
$2,891 $13,240 $10,857

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

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

Tax-Free Tax-Free Tax-Free
Florida Florida Insured New York
Fund Fund Fund
----------- -------------- -----------
Purchases........................... $8,572,342 $35,321,307 $4,546,087
Sales .............................. 4,714,994 48,298,529 2,435,398

At August 31, 1999 the aggregate cost of securities and unrealized appreciation
(depreciation) for federal income tax purposes for each Fund were as follows:

Tax-Free Tax-Free Tax-Free
Florida Florida Insured New York
Fund Fund Fund
----------- -------------- -----------
Cost of Investments............... $16,593,075 $126,837,008 $11,869,489
=========== ============ ===========
Aggregate unrealized
appreciation................... $287,110 $5,400,166 $357,741
Aggregate unrealized
depreciation................... (521,977) (3,264,126) (546,806)
----------- ------------ -----------
Net unrealized appreciation
(depreciation)................. $ (234,867) $ 2,136,040 $ (189,065)
=========== ============ ===========

For federal income tax purposes as of August 31, 1999, Tax-Free Florida had a
capital loss carryover of $17,781 that will expire in 2007, Tax-Free Florida
Insured Fund had a capital loss carryover of $5,342,463 that will expire in 2003
and $735,445 that will expire in 2004.

4. Capital Stock
Transactions in capital stock shares were as follows:

Tax-Free Florida Fund
Year Eight Months Year
Ended Ended Ended
8/31/99 8/31/98 12/31/97
----------- ------------ -----------
Shares sold:
Class A........................ 411,029 256,196 264,535
Class B........................ 210,129 128,599 105,990
Class C........................ 45,217 37,815 10,329

Shares issued upon reinvestment of
distributions from net investment
income and net realized gains on
investments:
Class A........................ 23,627 10,894 10,263
Class B........................ 5,623 1,346 1,765
Class C........................ 1,021 384 243
----------- ------------ -----------
696,646 435,234 393,125
----------- ------------ -----------
Shares repurchased:
Class A........................ (240,238) (58,717) (141,380)
Class B........................ (91,522) (73,617) (19,696)
Class C........................ (26,950) (989) --
----------- ------------ -----------
(358,710) (133,323) (161,076)
----------- ------------ -----------

Net increase (decrease)........... 337,936 301,911 232,049
=========== ============ ===========

4. Capital Stock (Continued)

Tax-Free Florida Insured Fund
Year Eight Months Year
Ended Ended Ended
8/31/99 8/31/98 12/31/97
----------- ------------ -----------
Shares sold:
Class A........................ 388,751 187,745 417,805
Class B........................ 136,924 67,195 76,153
Class C........................ 9,723 -- 1,960

Shares issued upon reinvestment of
distributions from net investment
income and net realized gains on
investments:
Class A........................ 175,844 123,895 231,868
Class B........................ 6,149 3,070 4,520
Class C........................ 178 -- 11
----------- ------------ -----------
717,569 381,905 732,317
----------- ------------ -----------

Shares repurchased:
Class A........................ (1,755,957) (1,839,015) (4,163,715)
Class B........................ (66,242) (51,692) (30,565)
Class C........................ -- -- (1,971)
----------- ------------ -----------
(1,822,199) (1,890,707) (4,196,251)
----------- ------------ -----------

Net increase (decrease)........... (1,104,630) (1,508,802) (3,463,934)
=========== ============ ===========

Tax-Free New York Fund
Year Eight Months Year
Ended Ended Ended
8/31/99 8/31/98 12/31/97
----------- ------------ -----------
Shares sold:
Class A........................ 247,644 70,625 61,662
Class B........................ 137,868 29,186 6,824
Class C........................ 5,576 -- --

Shares issued upon reinvestment of
distributions from net investment
income and net realized gains on
investments:
Class A........................ 40,908 24,015 54,059
Class B........................ 3,107 574 1,014
Class C........................ 383 162 349
----------- ------------ -----------
435,486 124,562 123,908
----------- ------------ -----------

Shares repurchased:
Class A........................ (153,072) (58,367) (156,730)
Class B........................ (39,547) (1,444) (15,960)
Class C........................ -- -- (22)
----------- ------------ -----------
(192,619) (59,811) (172,712)
----------- ------------ -----------

Net increase (decrease)........... 242,867 64,751 (48,804)
=========== ============ ===========

5. 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 August 31, 1999 or at any time
during the fiscal year.

<PAGE>

30 for tax-exempt income

NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
6. Credit and Market Risk
The Funds concentrate their investments in securities issued by municipalities,
mainly in Florida for Tax-Free Florida and Tax-Free Florida Insured Funds 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.

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 as of August 31, 1999

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

For the fiscal year ended August 31, 1999, each Fund designates as long term
capital gains, ordinary income and tax-exempt income distributions paid during
the year as follows:

Tax-Free Tax-Free Tax-Free
Florida Florida Insured New York
Fund Fund Fund
----------- ------------ -----------
Long Term Capital
Gains Distributions............ 1% -- 4%
Ordinary Income
Distributions.................. 1% -- --
Tax Exempt Income
Distributions.................. 98% 100% 96%

Total Distributions............... 100% 100% 100%

- --------------------------------------------------------------------------------

REPORT OF INDEPENDENT AUDITORS
- --------------------------------------------------------------------------------
To the Shareholders and Board of Directors
Voyageur Investment Trust - Delaware Tax-Free Florida Fund
Voyageur Investment Trust - Delaware Tax-Free Florida Insured Fund
Voyageur Mutual Funds, Inc. - Delaware Tax-Free New York Fund

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

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

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

/s/ ERNST & YOUNG LLP
---------------------
ERNST & YOUNG LLP

Philadelphia, Pennsylvania
October 1, 1999

<PAGE>

for tax-exempt income 31

PROXY RESULTS (UNAUDITED)
- --------------------------------------------------------------------------------
Voyageur Investment Trust shareholders voted on the following proposals at the
annual meeting of shareholders on December 4, 1998 and the Voyageur Mutual Funds
Inc., shareholders voted at the annual meeting of shareholders on March 17,
1999, or as adjourned. The description of each proposal and number of shares
voted are as follows:

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

Shares Shares Voted
Voted Withheld
For Authority Abstain
-----------------------------------------
Wayne A. Stork...................... 8,679,494 888,169 --
Jeffrey J. Nick*.................... 8,679,494 888,169 --
Walter P. Babich.................... 8,681,341 886,322 --
Anthony D. Knerr.................... 8,685,567 882,096 --
Ann R. Leven........................ 8,685,567 882,096 --
W. Thacher Longstreth............... 8,685,567 882,096 --
Thomas F. Madison................... 8,685,567 882,096 --
Charles E. Peck..................... 8,685,567 882,096 --

To elect the Voyageur Mutual Funds, Inc. Board of Directors.

Shares Shares Voted
Voted Withheld
For Authority Abstain
------------------------------------------
Jeffrey J. Nick*.................... 23,375,980 933,942 --
Walter P. Babich.................... 23,375,739 934,183 --
Anthony D. Knerr.................... 23,481,657 828,265 --
Ann R. Leven........................ 23,479,947 829,975 --
Thomas F. Madison................... 23,485,349 824,573 --
Charles E. Peck..................... 23,485,349 824,573 --
Wayne A. Stork...................... 23,485,349 824,573 --
Jan L. Yeomans...................... 23,485,349 824,573 --

* Mr. Nick resigned from the Board of Directors (or Trustees for the Company)
on June 4, 1999.

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

For Against Abstain
------------------------------------------
Tax-Free Florida Fund............... 721,579 50,985 122,407
Tax-Free Florida Insured Fund....... 6,373,477 624,177 634,457
Tax-Free New York Fund.............. 554,011 41,177 196,050

3. To approve a change in the Fund's fundamental policy concerning
diversification of investments.

For Against Abstain
------------------------------------------
Tax-Free Florida Insured Fund....... 6,432,611 542,173 657,327

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

4A. To adopt a new fundamental investment restriction concerning concentration
of the investments in the same industry.

For Against Abstain
------------------------------------------
Tax-Free Florida Fund.............. 729,773 39,015 126,183
Tax-Free Florida Insured Fund....... 6,386,645 559,610 685,855
Tax-Free New York Fund.............. 579,934 40,667 170,636

4B. To adopt a new fundamental investment restriction concerning borrowing
money and issuing senior securities.

For Against Abstain
------------------------------------------
Tax-Free Florida Fund............... 696,967 64,169 133,834
Tax-Free Florida Insured Fund....... 6,333,139 614,499 684,472
Tax-Free New York Fund.............. 582,590 44,043 164,604

4C. To adopt a new fundamental investment restriction concerning underwriting.

For Against Abstain
------------------------------------------
Tax-Free Florida Fund............... 734,052 39,015 121,904
Tax-Free Florida Insured Fund....... 6,339,772 570,818 721,521
Tax-Free New York Fund.............. 602,416 31,689 157,132

4D. To adopt a new fundamental investment restriction concerning investments
in real estate.

For Against Abstain
------------------------------------------
Tax-Free Florida Fund............... 749,488 40,823 104,660
Tax-Free Florida Insured Fund....... 6,356,077 608,716 667,317
Tax-Free New York Fund.............. 595,751 45,969 149,517

4E. To adopt a new fundamental investment restriction concerning investments
in commodities.

For Against Abstain
------------------------------------------
Tax-Free Florida Fund............... 724,317 56,790 113,863
Tax-Free Florida Insured Fund....... 6,314,983 626,414 690,714
Tax-Free New York Fund.............. 597,521 36,494 157,222

4F. To adopt a new fundamental investment restriction concerning lending by
the Fund.

For Against Abstain
------------------------------------------
Tax-Free Florida Fund............... 716,303 59,742 118,925
Tax-Free Florida Insured Fund....... 6,321,710 595,325 715,075
Tax-Free New York Fund.............. 577,309 47,194 166,734

4G. To reclassify all current fundamental investment restrictions as
non-fundamental.

For Against Abstain
------------------------------------------
Tax-Free Florida Fund............... 706,357 72,867 115,747
Tax-Free Florida Insured Fund....... 6,256,116 633,825 742,169
Tax-Free New York Fund.............. 574,734 46,789 169,714

<PAGE>

32 for tax-exempt income

PROXY RESULTS (CONTINUED)
- --------------------------------------------------------------------------------
5. To approve a new investment management agreement with Delaware Management
Company for the Funds.

For Against Abstain
------------------------------------------
Tax-Free Florida Fund............... 752,426 39,945 102,600
Tax-Free Florida Insured Fund....... 6,416,796 528,790 686,523
Tax-Free New York Fund.............. 575,791 42,591 172,856

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

For Against Abstain
----------------------------------------
8,653,081 253,504 661,075

To ratify the selection of Ernst & Young LLP, as the independent auditors
for Voyageur Mutual Funds, Inc.

For Against Abstain
----------------------------------------
23,192,942 243,342 873,624

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

For Against Abstain
----------------------------------------
7,269,732 433,060 824,288

To approve the restructuring of Voyageur Mutual Funds, Inc. from a
Minnesota Corporation into a Delaware Business Trust and the dissolution of
the Minnesota Corporation.

For Against Abstain
----------------------------------------
18,642,505 933,974 1,312,086

<PAGE>

This annual report is for the information of Delaware Tax-Free Florida Fund,
Delaware Tax-Free Florida Insured Fund and Delaware Tax-Free New York Fund
shareholders, but it may be used with prospective investors when preceded or
accompanied by a current Prospectus, which 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 each Fund will fluctuate so that shares,
when redeemed, may be worth more or less than their original cost.

Board of Trustees

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

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

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

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

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

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

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

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

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

Affiliated Officers

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

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

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

(photo of globes)

directors
& officers

- --------------------------------------------------------------------------------

INVESTMENT MANAGER
Delaware Management Company
Philadelphia, Pennsylvania

INTERNATIONAL AFFILIATE
Delaware International Advisers Ltd.
London, England

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

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

1818 Market Street
Philadelphia, PA 19103-3682

<PAGE>

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

(photo of globes)

For Shareholders
1.800.523.1918

For Securities Dealers
1.800.362.7500

For Financial Institutions

Representatives Only
1.800.659.2265

www.delawareinvestments.com

DELAWARE (SM)
INVESTMENTS
- ---------------------
Philadelphia o London

Be sure to consult your financial adviser when making investments. Mutual funds
can be a valuable part of your financial plan; however, shares of the Funds are
not FDIC or NCUSIF insured, are not guaranteed by any bank or any credit union,
and involve investment risk, including the possible loss of the principal amount
invested. Shares of the Funds are not bank or credit union deposits.

Printed in the USA
on recycled paper

(2192) (J5178)
AR-FLNY[8/99]PPL10/99