<PAGE>
For tax-exempt income
DELAWARE-VOYAGEUR
Closed-End Municipal
Bond Funds
1997
Semi-Annual
Report
professional management
service and guidance
goals
MINNESOTA MUNICIPAL INCOME FUNDS - I, II, III
ARIZONA MUNICIPAL INCOME FUND
FLORIDA INSURED MUNICIPAL INCOME FUND
COLORADO INSURED MUNICIPAL INCOME FUND
DELAWARE
GROUP
==========
<PAGE>
Investment
Objectives and
Strategies
(PHOTO) [glasses, pen, calculator, papers]
EACH OF THE SIX FUNDS in this report are closed-end management investment
companies whose shares trade on the American Stock Exchange (ASE) in New
York. Each Fund seeks to provide high current income exempt from federal
income tax and from the personal income tax of its state, if any, consistent
with the preservation of capital. In addition, Florida Insured Municipal
Income Fund seeks investments that enable its shares to be exempt from
Florida's intangible personal property tax. Each Fund seeks to achieve its
objective by investing at least 80% of its net assets in investment grade,
tax-exempt municipal obligations.
INVESTMENT ADVISER
Delaware Management Company, Inc. has been the Funds' investment adviser since
May 1, 1997. At a meeting on April 11, 1997, the shareholders of each Fund
approved a new investment advisory agreement with Delaware Management that
became effective May 1, 1997. On May 30, 1997, Voyageur Fund Managers, Inc. the
Funds' prior investment adviser, merged into Delaware Management. Delaware
Management is a part of Lincoln National Corporation, one of America's largest
publicly held, diversified financial services companies, with global insurance
operations and more than $120 billion in assets under management.
Delaware currently manages more than $40 billion for mutual fund
shareholders and institutional investors such as pension plans and
foundations. In addition, Delaware manages closed-end equity funds traded on
the New York Stock Exchange.
LEVERAGING
Each of the six funds in this report uses leveraging, a tool that is not
available to open-end mutual funds and one that can be an important contributor
to each Fund's income and capital appreciation potential. Of course, there is no
guarantee any of the Funds will achieve this. Leveraging could result in a
higher degree of volatility because the Fund's net asset value could be more
sensitive to fluctuations in short-term interest rates and equity prices.
Delaware believes this volatility risk is reasonable given the benefits of
higher income potential.
MUNICIPAL LEASE OBLIGATIONS
The Funds may invest without limitation in state or municipal leases and
participation interests therein. These fixed-income securities are generally
illiquid. Municipal leases are obligations issued by state and local governments
or authorities to finance the acquisition of equipment and facilities such as
fire, sanitation or police vehicles or telecommunications equipment, buildings
or other capital assets.
commitment
A TRADITION OF SOUND INVESTING
<PAGE>
- --------------------------------------------------------------------------------
OCTOBER 31, 1997
Dear Shareholder:
WE ARE PLEASED TO PRESENT THE FIRST REPORT OF DELAWARE-Voyageur's closed-end
municipal bond funds since these six funds joined the Delaware family this
past spring.
For the first half of fiscal 1998, each Fund outperformed both its
peers and the two unmanaged Lehman Brothers Municipal Bond Indexes shown on
page 2. We achieved a remarkable level of success amid a period of relatively
high bond market volatility and the most significant federal tax legislation
in more than a decade.
We believe your Funds' superior results are attributable to the
benefits of leveraging and to our strategic positioning in longer term bonds.
Prices of longer term bonds also benefited more than those with shorter
maturities as fear of higher U.S. inflation ebbed amid encouraging government
economic reports.
This past March, after seeing signs of strong U.S. economic growth,
the Federal Reserve Board raised its target for short-term U.S. interest
rates by 25 basis points (0.25%) to 5.5%. Bond prices slumped, with yields on
30-year U.S. Treasury securities rising to 7.18%.
Yet, in just a few weeks, fixed-income markets reversed course.
Tax-exempt bonds enjoyed a sustained rally that lasted through the end of
September. Yields on high quality municipal bonds, which move inversely to
prices, generally declined between 40 and 50 basis points (0.40% to 0.50%).
We are particularly proud that the Florida Insured Municipal Income
Fund maintained a record of superior performance under the new leadership of
two Delaware portfolio managers - Mitchell L. Conery and Patrick P. Coyne.
As shown on page 10, the Fund ranked #1 among its peers for the six, 12 and
36-month periods ended September 30, 1997.
Most municipal income closed-end funds trade at modest discounts to
their net asset value. We are pleased to report the level of discount on five
of the Funds in this report narrowed during the six months ended September
30, 1997. In addition, Minnesota Municipal Income Fund I traded at the
highest premium to its net asset value since the summer of 1996.
1997 semi-annual report
1
<PAGE>
<TABLE>
<CAPTION>
CUMULATIVE RETURN
- --------------------------------------------------------------------------------------------------------------
APRIL 1, 1997 TO SEPTEMBER 30, 1997
BASED ON PREMIUM/ ASE
NET ASSET VALUE DISCOUNT* SYMBOL
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Minnesota Municipal Income Fund I +8.00% +1.45% VMN
Minnesota Municipal Income Fund II +9.72% -4.56% VMM
Minnesota Municipal Income Fund III +9.30% -5.42% VYM
Lipper Minnesota Municipal Fund Average +7.77% -3.47%
- --------------------------------------------------------------------------------------------------------------
Arizona Municipal Income Fund +10.00% -3.88% VAZ
Lipper Arizona Municipal Fund Average +9.03% -1.13%
- --------------------------------------------------------------------------------------------------------------
Florida Insured Municipal Income Fund +11.21% -6.47% VFL
Lipper Florida Insured Municipal Fund Average +8.22% -3.11%
- --------------------------------------------------------------------------------------------------------------
Colorado Insured Municipal Income Fund +9.59% -7.22% VCF
Lipper Insured Municipal Debt Fund Average +7.37% -3.11%
- --------------------------------------------------------------------------------------------------------------
Lehman Brothers Municipal Bond Index +6.56%
Lehman Brothers Insured Municipal Bond Index +6.88%
- --------------------------------------------------------------------------------------------------------------
</TABLE>
*AS OF SEPTEMBER 30, 1997. ALL PERFORMANCE SHOWN ABOVE ASSUMES REINVESTMENT
OF DISTRIBUTIONS. THERE WERE THREE, SIX, 12 AND 21 FUNDS IN THE LIPPER
MINNESOTA, ARIZONA, FLORIDA INSURED AND INSURED MUNICIPAL DEBT FUND AVERAGES,
RESPECTIVELY, FOR THE SIX MONTHS ENDED SEPTEMBER 30, 1997. PAST PERFORMANCE
DOES NOT GUARANTEE FUTURE RESULTS.
On the pages that follow, your Funds' portfolio managers in Denver,
Minneapolis and Philadelphia review each Fund's performance during the past six
months and provide an outlook for the balance of fiscal 1998. I invite you to
read their commentary and believe you will find our Delaware report format
useful and informative.
Delaware Group has been managing closed-end funds since 1993, and we
believe our disciplined, income-oriented approach to this market has been
recognized by both market professionals and investors. We will strive to help
you and your financial adviser achieve your goals.
Sincerely,
/s/ Wayne A. Stork
- -----------------------
Wayne A. Stork
CHAIRMAN
/s/ Jeffrey J. Nick
- -----------------------
Jeffrey J. Nick
PRESIDENT AND CHIEF EXECUTIVE OFFICER
1997 semi-annual report
2
<PAGE>
Your Funds' Portfolio Managers
Mitchell L. Conery and Patrick P. Coyne manage Florida Insured Municipal
Income Fund. Mr. Conery holds an MBA from the State University of New York at
Albany and a bachelor's degree in economics and mathematics from Boston
University. He managed a $5 billion municipal bond portfolio at Travelers Group
before coming to Delaware in January 1997. Mr. Coyne has managed fixed-income
securities at Delaware Management Company since 1990. He holds an MBA in finance
from the University of Pennsylvania's Wharton School of Business and an
undergraduate degree in European history and classics from Harvard University.
Elizabeth H. Howell manages the three Minnesota Funds discussed in this
report. She has more than 13 years experience that includes serving as a
fixed-income portfolio manager at Windsor Financial Group and investment
management positions at Loomis Sayles & Co. and Eaton Vance Management. Ms.
Howell has an MBA from Babson College.
Andrew M. McCullagh Jr. manages Arizona Insured Municipal Income Fund
and Colorado Insured Municipal Income Fund. He has more than 23 years of
experience in municipal bond trading, underwriting and portfolio management. He
holds a graduate certificate in public finance from the University of Michigan
and a bachelor's degree in economics from Washington College in Maryland.
Minnesota Municipal Income Funds - I, II, III
MINNESOTA MUNICIPAL INCOME FUNDS
BOND QUALITY AND PORTFOLIO HIGHLIGHTS
- --------------------------------------------------------------------------------
SEPTEMBER 30, 1997
I II III
- --------------------------------------------------------------------------------
AAA 50.5% 53.1% 59.1%
AA 13.8% 14.3% 4.2%
A 8.8% 10.1% 10.6%
BB 4.4% 5.9% 3.9%
Unrated 19.4% 14.9% 18.9%
I II III
- --------------------------------------------------------------------------------
Average Effective Maturity 7.8 years 8.7 years 8.3 years
Average Effective Duration 5.6 years 6.5 years 6.4 years
Total Market Capitalization (Millions) $57.7 $162.4 $38.5
Current Yield at Net Asset Value 6.13% 5.65% 5.62%
Amount of Leveraging (Millions) $20 $60 $15
APPROXIMATELY 16.1%, 17.1% AND 11.6% OF THE INCOME GENERATED BY MINNESOTA
MUNICIPAL INCOME FUNDS - I, II AND III FOR THE SIX MONTHS ENDED SEPTEMBER 30,
1997, RESPECTIVELY, WAS SUBJECT TO THE ALTERNATIVE MINIMUM TAX.
1997 semi-annual report
3
<PAGE>
MINNESOTA MUNICIPAL INCOME FUNDS
ASSET ALLOCATION
- --------------------------------------------------------------------------------
SEPTEMBER 30, 1997
FUND I FUND II FUND III
- --------------------------------------------------------------------------------
Housing 23.2% 21.6% 19.8%
Health Care 15.0% 16.2% 19.3%
General Obligation 16.0% 14.5% 10.9%
Power Authority 13.9% 8.0% 8.7%
Pre-Refunded 9.9% 12.9% 12.2%
Higher Education 9.1% 9.7% 9.0%
Industrial 6.3% 6.1% 11.1%
Pollution Control 2.8% 6.0% 2.6%
Transportation 1.2% 3.6% 3.3%
Cash Equivalents 2.6% 1.4% 3.1%
Portfolio Manager's Review
As shown on page 2, the Delaware family's three closed-end Minnesota
municipal bond funds provided above-average total returns during the first
half of fiscal 1998 despite substantial interest rate volatility and renewed
efforts in Washington to cut income taxes.
With a below-average unemployment rate and an annualized economic
growth rate of 4.8% that ranks 10th nationwide, Minnesota exhibits credit
characteristics attractive to income-oriented investors. Per capita income in
the state is the highest of all Plains states, according to the Cato Institute,
and ranks 9th nationwide while the state's general obligation bonds carry a
quality rating of AAA, the highest available.
Between March and September, yields on longer term Minnesota general
obligation bonds declined as much as 50 basis points (0.50%) as bond prices
rose. We believe our strong results were attributable to our positioning in
long term bonds. We took a relatively optimistic view of fixed-income
markets, and the average effective duration of each Fund's portfolio was
generally longer than most of our competitors.
HIGH VOLATILITY,
LOWER BOND SUPPLY
Volatility, however, was high: bonds rallied in July, fell in August and
rallied again in September. During this period, prices rose more than they
fell, U.S. economic growth was strong and consumer price increases were
subdued.
In our opinion, one factor helping each Fund's performance during the
first half of fiscal 1998 was a reduced supply of new Minnesota bonds. From
December 1996 to September, 1997, the supply of new municipal bonds issued in
the state declined by more than 14% to an annualized pace of $2.5 billion,
according to THE BOND BUYER, a
1997 semi-annual report
4
<PAGE>
MINNESOTA MUNICIPAL INCOME FUND I
MARKET PRICE VS. NET ASSET VALUE
April 1, 1997 to September 30, 1997
- -----------------------------------
Market Net Asset
Price Value
----- -----
9/30/97 $15.375 $15.16
9/19/97 $15.375 $15.13
9/12/97 $15.5 $15.08
9/5/97 $15.375 $15.04
8/29/97 $15.438 $15
8/22/97 $15.438 $14.97
8/15/97 $15.063
8/8/97 $15.188 $15.07
8/1/97 $15.5 $15.19
7/25/97 $15.375 $15.18
7/18/97 $15.375
7/11/97 $15.25
7/4/97 $15.313 $14.93
6/27/97 $15.188 $14.86
6/20/97 $15 $14.91
6/13/97 $14.938 $14.88
6/6/97 $15 $14.82
5/30/97 $14.688 $14.71
5/23/97 $14.688 $14.64
5/16/97 $14.875 $14.63
5/9/97 $14.75 $14.62
5/2/97 $14.5 $14.57
4/25/97 $14.625 $14.37
4/18/97 $14.5 $14.4
4/11/97 $14.25 $14.38
4/4/97 $14.25 $14.42
4/1/97 $14.375 $14.47
Dollars Per Share
SOURCE: BLOOMBERG BUSINESS NEWS. PAST PERFORMANCE DOES NOT GUARANTEE FUTURE
RESULTS.
trade publication. This has helped support the state's bond prices since
investor demand for Minnesota securities providing tax-exempt income has
remained steady.
AN EMPHASIS ON
HIGH QUALITY
More than half of the net assets of each Fund's portfolio was invested in
Minnesota bonds rated AAA as of September 30, 1997. Minnesota Municipal
Income Funds II and III had slightly more invested in bonds rated AAA than
Minnesota Municipal Income Fund I. In our opinion, this difference helped
Funds II and III achieve higher returns than Fund I during the first half of
fiscal 1998.
Bonds rated AAA are the most sensitive to changes in Federal Reserve
interest rate policy and investor perceptions about future inflation. Hence,
Funds II and III benefited the most as rates and inflation expectations
declined between March and September, in our opinion.
Fund I traded at a modest premium to its net asset value as of
September 30, 1997, whereas Funds II and III traded at a modest discount. We
believe this reflected the fact that Fund I's average coupon was slightly
higher than that of II and III during the first half of the fiscal year,
offering investors additional income potential, all other factors being
equal.
1997 semi-annual report
5
<PAGE>
MINNESOTA MUNICIPAL INCOME FUND II
MARKET PRICE VS. NET ASSET VALUE
APRIL 1, 1997 TO SEPTEMBER 30, 1997
- ----------------------------------
Market Net Asset
Price Value
----- -----
9/30/97 $13.8125 $14.17
9/19/97 $13.875 $14.44
9/12/97 $13.625 $14.38
9/5/97 $13.875 $14.32
8/29/97 $13.875 $14.3
8/22/97 $13.688 $14.24
8/15/97 $13.5
8/8/97 $13.688 $14.34
8/1/97 $13.688 $14.48
7/25/97 $13.875 $14.47
7/18/97 $13.5
7/11/97 $13.875
7/4/97 $13.75 $14.21
6/27/97 $13.563 $14.12
6/20/97 $13.063 $14.2
6/13/97 $13.313 $14.17
6/6/97 $13.125 $14.1
5/30/97 $13.25 $13.95
5/23/97 $13.125 $13.88
5/16/97 $13 $13.87
5/9/97 $12.938 $13.85
5/2/97 $12.625 $13.76
4/25/97 $12.5 $13.51
4/18/97 $12.375 $13.53
4/11/97 $12.5 $13.49
4/4/97 $12.625 $13.52
4/1/97 $12.625 $13.59
Dollars Per Share
SOURCE: BLOOMBERG BUSINESS NEWS. PAST PERFORMANCE DOES NOT GUARANTEE FUTURE
RESULTS.
MINNESOTA MUNICIPAL INCOME FUND III
MARKET PRICE VS. NET ASSET VALUE
April 1, 1997 to September 30, 1997
- -----------------------------------
Market Net Asset
Price Value
----- -----
9/30/97 $12.75 $13.48
9/19/97 $12.625 $13.47
9/12/97 $12.625 $13.43
9/5/97 $12.875 $13.37
8/29/97 $12.813 $13.34
8/22/97 $12.75 $13.29
8/15/97 $12.625
8/8/97 $12.688 $13.37
8/1/97 $12.875 $13.49
7/25/97 $12.5 $13.5
7/18/97 $12.75
7/11/97 $12.875
7/4/97 $12.5 $13.28
6/27/97 $12.375 $13.2
6/20/97 $12.313 $13.29
6/13/97 $12.25 $13.26
6/6/97 $12.313 $13.17
5/30/97 $12.625 $13.04
5/23/97 $12.25 $12.98
5/16/97 $11.938 $12.97
5/9/97 $11.75 $12.94
5/2/97 $11.875 $12.87
4/25/97 $11.5 $12.66
4/18/97 $11.875 $12.67
4/11/97 $11.625 $12.64
4/4/97 $11.625 $12.66
4/1/97 $12.25 $12.71
Dollars Per Share
SOURCE: BLOOMBERG BUSINESS NEWS. PAST PERFORMANCE DOES NOT GUARANTEE FUTURE
RESULTS.
1997 semi-annual report
6
<PAGE>
During the first half of fiscal 1998, I increased our focus on Minnesota
bonds that in our opinion offered good call protection features and were selling
at a discount to face value. This, plus relatively long maturities, enabled each
Fund to outpace the unmanaged Lehman Brothers Municipal Bond Index, our
benchmark.
SUMMARY OUTLOOK
Overall, it appears the capital markets have regained confidence that the Fed
will move in a more restrictive monetary policy at the first signs of
inflation. The Minnesota economy, meanwhile, continues to grow at a steady
pace, providing municipal governments with robust amounts of tax revenue.
In managing each Fund's portfolio, we will continue to seek good
structure - a prudent combination of average coupon, call date and effective
maturity that represent the mathematical underpinnings of the portfolio. By
managing duration as conditions warrant, we will seek to maximize each Fund's
income and total return potential.
ELIZABETH H. HOWELL
VICE PRESIDENT
SENIOR PORTFOLIO MANAGER
October 31, 1997
Arizona Municipal Income Fund
ARIZONA MUNICIPAL INCOME FUND
PORTFOLIO HIGHLIGHTS AND ASSET ALLOCATION
- --------------------------------------------------------------------------------
SEPTEMBER 30, 1997
General Obligation 29.3%
Higher Education 5.2%
Hospitals 13.6%
Housing 9.9%
Industrial Development 4.0%
Certificates of Participation 3.7%
Power Authority 3.1%
Transportation 11.0%
Water and Sewer Bonds 19.0%
Cash Equivalents 1.2%
- -------------------------------------------------------
Average Effective Maturity 8.3 years
Average Effective Duration 6.4 years
Average Quality AA
Current Yield at Net Asset Value 5.26%
Amount of Leveraging $25 million
APPROXIMATELY 3.7% OF THE INCOME GENERATED BY ARIZONA MUNICIPAL INCOME FUND
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 1997, WAS SUBJECT TO THE ALTERNATIVE
MINIMUM TAX.
1997 semi-annual report
7
<PAGE>
Portfolio Manager's Review
For the first half of fiscal 1998, Arizona Municipal Bond Fund outperformed
its peers and its unmanaged benchmark, the Lehman Brothers Municipal Bond
Index. The Fund provided a total return of +10.00% for the six months ended
September 30, 1997 (capital change plus reinvested dividends at net asset
value).
With a population just over 3.7 million and a per capita income that's
growing at an annualized rate of 4.4%, Arizona exhibited characteristics we
believe are attractive to income-oriented investors.
Arizona residents have enjoyed considerable tax relief in the 1990s.
More than $1.5 billion in tax cuts have been enacted in recent years. The top
marginal state tax rate on income has fallen from 7% in 1991 to 5.6% in 1996,
according to the Cato Institute. The state's finances, meanwhile, are
healthy. Arizona maintained a $400 million budget surplus in fiscal 1996 on
revenues of $4.7 billion.
Most municipal bonds issued in Arizona in calendar 1997 have been
protected by private insurance guaranteeing the payment of principal and
interest. Since December 1996, the supply of new municipal bonds in the state
has grown by 43% to an annualized pace of $2.3 billion, according to THE BOND
BUYER, a trade publication.
General obligation bonds made up the largest component of your Fund's
net assets at mid-year, followed by water and sewer bonds.
ARIZONA MUNICIPAL INCOME FUND
MARKET PRICE VS. NET ASSET VALUE
APRIL 1, 1997 TO SEPTEMBER 30, 1997
- --------------------------------------------------------------------------------
Market Net Asset
Price Value
----- -----
9/30/97 $14.125 $14.7
9/19/97 $14.063 $14.68
9/12/97 $14.125 $14.61
9/5/97 $14 $14.56
8/29/97 $14.125 $14.53
8/22/97 $13.75 $14.49
8/15/97 $13.813
8/8/97 $13.938 $14.58
8/1/97 $14.125 $14.77
7/25/97 $14.25 $14.75
7/18/97 $14.063
7/11/97 $14.063
7/4/97 $13.813 $14.46
6/27/97 $13.813 $14.36
6/20/97 $13.625 $14.44
6/13/97 $13.875 $14.42
6/6/97 $13.5 $14.33
5/30/97 $13.438 $14.15
5/23/97 $13.438 $14.06
5/16/97 $13.313 $14.07
5/9/97 $12.938 $14.03
5/2/97 $12.875 $13.95
4/25/97 $13 $13.72
4/18/97 $12.625 $13.75
4/11/97 $13 $13.7
4/4/97 $12.875 $13.74
4/1/97 $13 $13.78
Dollars Per Share
SOURCE: BLOOMBERG BUSINESS NEWS. PAST PERFORMANCE DOES NOT GUARANTEE FUTURE
RESULTS.
1997 semi-annual report
8
<PAGE>
This reflected Arizona's growing population base, as most general obligation
bonds in your Funds portfolio were issued for school improvements. The state
also has a higher-than-average number of municipal water projects, reflecting
its arid climate.
By focusing on higher yielding securities, we were able to provide
most of the income available from the longest term municipal bonds with much
less interest rate risk.
In addition to maintaining a strong weighting in general obligation
bonds, we expect our strategy for the coming months will include focusing on
bonds with higher-than-average yields, since these issues tend to be less
affected by short-term swings in interest rates. In our opinion, interest
rates are unlikely to move significantly lower in the coming months even if
inflation does not accelerate. In general, we will also seek bonds with good
call protection features and relatively shorter maturities.
ANDREW M. MCCULLAGH, JR.
VICE PRESIDENT
SENIOR PORTFOLIO MANAGER
October 31, 1997
Florida Insured Municipal Income Fund
Portfolio Managers' Review
We are pleased to report that Florida Insured Municipal Income Fund provided
an exceptionally strong total return of +11.21% for the six months ended
September 30, 1997 (capital change plus reinvested dividends at net asset
value).
Despite a 24.5% surge in the amount of new bonds issued in Florida
during calendar 1997, the state's municipal securities have performed well.
In our opinion, this reflected a strong state economy as well as the fact that
more than 70% of municipal bonds issued in Florida were protected by private
insurance guaranteeing the payment of principal and interest when due.
With a population just over 13 million and a per capita income that's
growing at an above-average annualized rate of 4.8%, Florida exhibited
characteristics that we believe are attractive to income - oriented investors.
Florida's growth and demographic makeup generate a substantial need for public
financing in the health care industry. This sector represented the largest
portion of Florida Insured Municipal Income Fund's portfolio as of September 30.
Florida has no state income tax, so the primary advantage of owning
Florida municipal securities is that income is exempt from federal income
taxes. Also, we prefer
1997 semi-annual report
9
<PAGE>
Florida Insured Municipal Income Fund
VLF: NUMBER ONE UNDER THE SUN
- --------------------------------------------------------------------------------
BASED ON NET ASSET VALUE FOR PERIODS ENDED SEPTEMBER 30, 1997
<TABLE>
<CAPTION>
SIX MONTHS ONE YEAR THREE YEARS* LIFETIME*
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Florida Insured Municipal Income Fund +11.21% +12.15% +13.28% +6.83%
Lipper Florida Insured Municipal
Fund Average +8.22% +10.03% +10.48% +6.56%
Florida Insured Municipal Income
Fund's Rank #1 #1 #1 #3
Number of Funds in Category 12 12 12 9
</TABLE>
*AVERAGE ANNUAL TOTAL RETURN. FUND'S INCEPTION DATE WAS MARCH 3, 1993. PAST
PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS.
FLORIDA INSURED MUNICIPAL INCOME FUND
MARKET PRICE VS. NET ASSET VALUE
APRIL 1, 1997 TO SEPTEMBER 30, 1997
Market Net Asset
Price Value
----- -----
9/30/97 $13.8125 $14.78
9/19/97 $13.813 $14.77
9/12/97 $13.5 $14.69
9/5/97 $13.375 $14.65
8/29/97 $13.75 $14.61
8/22/97 $13.563 $14.55
8/15/97 $13.375
8/8/97 $13.438 $14.66
8/1/97 $13.563 $14.83
7/25/97 $13.188 $14.88
7/18/97 $13.313
7/11/97 $13.688
7/4/97 $13.75 $14.52
6/27/97 $13.625 $14.39
6/20/97 $13.5 $14.52
6/13/97 $13.5 $14.48
6/6/97 $13.375 $14.36
5/30/97 $13.125 $14.17
5/23/97 $13.188 $14.07
5/16/97 $12.875 $14.07
5/9/97 $13.125 $14.01
5/2/97 $12.75 $13.92
4/25/97 $12.625 $13.63
4/18/97 $12.875 $13.67
4/11/97 $12.625 $13.59
4/4/97 $12.375 $13.62
4/1/97 $12.5 $13.67
Dollars Per Share
SOURCE: BLOOMBERG BUSINESS NEWS. PAST PERFORMANCE DOES NOT GUARANTEE FUTURE
RESULTS.
to select Florida bonds that are exempt from the state's intangibles tax on
assets.
When the bond market weakened in April, we saw an opportunity to
modestly extend duration to increase income potential. The Fund also
benefited by generally avoiding certain areas of South Florida such as Miami,
where credit quality remains a concern. We were also underweighted in the
electric utility sector, particularly cogeneration plants. Increased industry
competition and legal issues have made it difficult for some alternative power
producers to be profitable, increasing the sector's credit risks.
1997 semi-annual report
10
<PAGE>
We are optimistic that investor demand for Florida bonds could increase
in the coming months among high tax brackets investors. One reason: regulators
in Tallahassee are more vigorously enforcing compliance with the state's
intangibles tax on bonds and stocks. In our opinion, that could prompt some
investors to switch assets from corporate bonds and mortgage-backed securities
(both of which are subject to the intangibles tax) to Florida securities, which
are exempt.
In Florida and across the U.S., inflation appears to be benign.
Despite a strong U.S. economy, the Federal Reserve Board has been able to
effectively control consumer price increases. Should interest rates remain
stable or decline for the balance of 1997, we believe municipal bond investments
could potentially provide an attractive real rate of return.
In our opinion, the long-term outlook for Florida's economy and bond
market is bright. Municipalities will continue to need capital from private
investors to meet the needs of a growing population in the nation's fourth
largest state, presenting investors with many income opportunities.
MITCHELL L. CONERY
VICE PRESIDENT
SENIOR PORTFOLIO MANAGER
PATRICK P. COYNE
VICE PRESIDENT
SENIOR PORTFOLIO MANAGER
October 31, 1997
FLORIDA INSURED MUNICIPAL INCOME FUND
PORTFOLIO HIGHLIGHTS AND ASSET ALLOCATION
- --------------------------------------------------------------------------------
SEPTEMBER 30, 1997
Certificates of Participation 13.1%
General Obligation 4.3%
Higher Education 5.0%
Hospitals 15.8%
Housing 11.9%
Transportation 4.7%
Pre-Refunded 1.9%
Utility 8.8%
Water & Sewer 11.3%
Other Revenue Bonds 21.8%
Cash Equivalents 1.4%
- -------------------------------------------------------
Average Effective Maturity 10.8 years
Average Effective Duration 7.8 years
Average Quality AA
Current Yield at Net Asset Value 5.13%
Amount of Leveraging $20 million
APPROXIMATELY 16.8% OF THE INCOME GENERATED BY FLORIDA INSURED MUNICIPAL
INCOME FUND FOR THE SIX MONTHS ENDED SEPTEMBER 30, 1997, WAS SUBJECT TO THE
ALTERNATIVE MINIMUM TAX.
1997 semi-annual report
11
<PAGE>
Colorado Insured Municipal Income Fund
COLORADO INSURED MUNICIPAL INCOME FUND
PORTFOLIO HIGHLIGHTS AND ASSET ALLOCATION
SEPTEMBER 30, 1997
- --------------------------------------------------------------------------------
General Obligation 27.7%
Higher Education 10.3%
Hospitals 9.9%
Transportation 15.6%
Pre-Refunded 12.7%
Sales Tax Revenue 4.9%
Utility & Pollution Control 6.8%
Housing 6.5%
Leases/Certificates of
Participation 4.1%
Cash Equivalents 1.5%
- -----------------------------------------------------
Average Effective Maturity 9.4 years
Average Effective Duration 7.4 years
Average Quality AAA
Current Yield at Net Asset Value 5.04%
Amount of Leveraging $40 million
NONE OF THE INCOME GENERATED BY COLORADO INSURED MUNICIPAL INCOME FUND FOR
THE SIX MONTHS ENDED SEPTEMBER 30, 1997, WAS SUBJECT TO THE ALTERNATIVE
MINIMUM TAX.
Portfolio Manager's Review
Colorado Insured Municipal Income Fund provided a relatively strong total
return of +9.59% for the six months ended September 30, 1997 (at net asset
value with dividends reinvested). The Fund outpaced the unmanaged Lehman
Brothers Insured Municipal Bond Index by some 270 basis points (2.7%).
We attribute our results to a positioning that sought to capitalize
on declining interest rates. For much of the period, we kept the Fund's
duration (sensitivity to interest rates) longer than that of the Lehman
index.
While the Fund has consistently strived to maximize total return,
since March we have taken steps to augment the Fund's yield. The Fund
continues to invest exclusively in the highest rated investment grade
municipal bonds.
We have been attempting to improve the Fund's dividend yield by
selling lower yielding bonds with short call periods and replacing them with
higher yielding bonds with longer call protection periods. Colorado's strong
economy permitted us to make these swaps on favorable terms.
In Denver and other parts of the state, we believe strength in
non-residential construction, high technology industries and financial
services should continue to fuel Colorado's economic growth for the
1997 semi-annual report
12
<PAGE>
next few years. Economists anticipate job growth will remain steady in 1997
while the state's unemployment rate is expected to fall to about 3.5% by year's
end, well below the national average.
Consumer price inflation is higher in Colorado than in other states.
Prices are rising at a 4% annual pace compared to about 3% nationwide,
according to regional labor officials. However, this is offset by annual
growth in personal income - about 7% - that has been and is expected to
continue to be much higher than the national average. Colorado residents' per
capita income ranks 13th among states.
We believe Colorado's key economic strength going into the
21st Century will be its diversity. A hub for communications and
trans-portation, the state also has a strong manufacturing base, health care
industry and tourism sector. For the fourth straight year, Colorado received
the highest possible grade for economic performance in the Corporation for
Enterprise Development's 1996 Report Card, an objective ranking based on
economic performance.
In our opinion, this bodes well for the credit quality of the state's
bond market. According to the Cato Institute, the state's finances are helped
by constitutional caps on spending and "by one of the nation's most anti-tax
electorates."
ANDREW M. MCCULLAGH, JR.
VICE PRESIDENT
SENIOR PORTFOLIO MANAGER
October 31, 1997
COLORADO INSURED MUNICIPAL INCOME FUND
MARKET PRICE VS. NET ASSET VALUE
APRIL 1, 1997 TO SEPTEMBER 30, 1997
Market Net Asset
Price Value
----- -----
9/30/97 $13.8125 $14.78
9/19/97 $13.813 $14.77
9/12/97 $13.5 $14.69
9/5/97 $13.375 $14.65
8/29/97 $13.75 $14.61
8/22/97 $13.563 $14.55
8/15/97 $13.375
8/8/97 $13.438 $14.66
8/1/97 $13.563 $14.83
7/25/97 $13.188 $14.88
7/18/97 $13.313
7/11/97 $13.688
7/4/97 $13.75 $14.52
6/27/97 $13.625 $14.39
6/20/97 $13.5 $14.52
6/13/97 $13.5 $14.48
6/6/97 $13.375 $14.36
5/30/97 $13.125 $14.17
5/23/97 $13.188 $14.07
5/16/97 $12.875 $14.07
5/9/97 $13.125 $14.01
5/2/97 $12.75 $13.92
4/25/97 $12.625 $13.63
4/18/97 $12.875 $13.67
4/11/97 $12.625 $13.59
4/4/97 $12.375 $13.62
4/1/97 $12.5 $13.67
Dollars Per Share
SOURCE BLOOMBERG BUSINESS NEWS. PAST PERFORMANCE DOES NOT GUARANTEE FUTURE
RESULTS.
1997 semi-annual report
13
<PAGE>
Financial Statements
DELAWARE-VOYAGEUR ARIZONA MUNICIPAL INCOME FUND, INC. --
STATEMENT OF NET ASSETS
SEPTEMBER 30, 1997
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
-----------------------------------
<S> <C> <C>
MUNICIPAL BONDS - 98.84%
GENERAL OBLIGATION BONDS - 29.31%
Eagle Mountain Community Facility
District A2 6.40% 07/01/17 ................. $ 1,500,000 $ 1,614,105
Maricopa County Alhambra Elementary
School District #68
5.625% 07/01/13 (AMBAC) ................... 3,400,000 3,524,712
Maricopa County Unified School
District #4 5.55% 07/01/10 (FGIC) .......... 1,900,000 2,003,664
Maricopa County Unified School
District #11 5.50% 07/01/10 ................ 3,000,000 3,102,780
Maricopa County Unified School
District #41 6.25% 07/01/15 (FSA) .......... 1,500,000 1,625,685
Maricopa County Washington Elementary
Unified School District #6
5.375% 07/01/14 (AMBAC) ................... 1,000,000 1,011,630
Mesa General Obligation Project of 1987
5.70% 07/01/08 (MBIA) ..................... 1,800,000 1,912,086
Mohave County Unified School District #1
5.90% 07/01/15 (FGIC) ..................... 1,500,000 1,592,235
Pima County Unified School District #6
5.75% 07/01/12 (FGIC) ..................... 2,000,000 2,083,880
Pinal County Unified School District
5.80% 07/01/11 (FGIC) ..................... 1,000,000 1,067,640
Santa Cruz Valley Unified School District #35
5.80% 07/01/09 (AMBAC) .................... 600,000 636,498
-----------
20,174,915
-----------
HIGHER EDUCATION REVENUE BONDS - 5.19%
Northern Arizona University
5.00% 06/01/17 (FGIC) ..................... 1,475,000 1,437,063
University of Arizona
6.25% 06/01/11 ............................ 1,000,000 1,065,480
University of Arizona
6.35% 06/01/14 ............................ 1,000,000 1,070,650
-----------
3,573,193
-----------
HOSPITAL REVENUE BONDS - 13.60%
Arizona Hospital Health Facilities Authority
6.25% 09/01/11 (MBIA) ..................... 1,500,000 1,634,835
Maricopa County Health Facilities
Catholic Health Care West Series A
5.75% 07/01/11 (MBIA) ..................... 1,750,000 1,824,200
Maricopa County Health Facilities
Catholic Health Care West Series A
6.00% 07/01/21 (MBIA) ..................... 1,100,000 1,136,784
Maricopa County Industrial Development
Authority Baptist Hospital
5.50% 09/01/13 (MBIA) ..................... 300,000 306,885
</TABLE>
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
-----------------------------------
<S> <C> <C>
MUNICIPAL BONDS (CONTINUED)
HOSPITAL REVENUE BONsDS (CONTINUED)
Mohave County Industrial Development
Authority Baptist Hospital
5.50% 09/01/21 (MBIA) .................... $ 500,000 $ 503,645
Mohave County Industrial Developement
Authority Baptist Hospital
5.75% 09/01/26 (MBIA) .................... 150,000 154,152
Phoenix Industrial Development Authority
John C. Lincoln Hospital
5.50% 12/01/13 (FSA) ..................... 1,100,000 1,125,388
Scottsdale Industrial Development Authority
Scottsdale Memorial Hospital
5.25% 09/01/18 (AMBAC) ................... 1,000,000 980,050
University of Arizona Medical Center
6.25% 07/01/16 (MBIA) .................... 700,000 743,281
University of Arizona Medical Center
5.00% 07/01/21 (MBIA) .................... 1,000,000 954,460
----------
9,363,680
----------
HOUSING REVENUE BONDS - 9.95%
Maricopa County Industrial Development
Authority Grove Apartments AMT
6.15% 07/20/28 (GNMA) .................... 1,000,000 1,050,610
Peoria Multifamily Housing Mortgage
Revenue 7.30% 02/20/28 (GNMA) ............. 1,230,000 1,362,668
Phoenix Industrial Development Authority
Multifamily Mortgage Revenue
6.80% 11/01/25 (FHA) ..................... 500,000 525,875
Pima County Industrial Development Authority
Single Family Mortgage Revenue Series A
6.25% 11/01/30 (GNMA) .................... 1,405,000 1,472,187
Tempe Industrial Development Authority
Multifamily Mortgage Revenue
6.125% 06/01/10 (FHA) .................... 2,305,000 2,433,642
----------
6,844,982
----------
INDUSTRIAL DEVELOPMENT
REVENUE BONDS - 4.04%
Maricopa County Stadium District
5.50% 07/01/13 (MBIA) .................... 1,750,000 1,780,730
Navajo County Pollution Control Corporation
5.50% 08/15/28 (AMBAC) ................... 1,000,000 1,003,090
----------
2,783,820
----------
LEASE/CERTIFICATES OF PARTICIPATION - 3.66%
Scottsdale Municipal Property Corporation
6.25% 11/01/14 (FGIC) .................... 1,300,000 1,391,832
Tucson 5.60% 07/01/11 ..................... 1,100,000 1,128,974
----------
2,520,806
----------
</TABLE>
1997 semi-annual report
14
<PAGE>
DELAWARE-VOYAGEUR ARIZONA MUNICIPAL INCOME FUND, INC.
STATEMENT OF NET ASSETS (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
-----------------------------------
<S> <C> <C>
MUNICIPAL BONDS (CONTINUED)
POWER AUTHORITY REVENUE BONDS - 3.08%
Salt River Project Electric System Revenue
6.25% 01/01/27 ........................... $ 2,000,000 $ 2,118,880
-----------
2,118,880
-----------
TRANSPORTATION REVENUE BONDS - 10.97%
Arizona State Transportation Board
5.25% 07/01/09 ........................... 1,000,000 1,020,310
City of Phoenix Junior Lien Street & Highway
6.25% 07/01/11 (FGIC) .................... 1,300,000 1,400,347
Tucson Airport Authority Revenue
5.70% 06/01/13 (MBIA) .................... 2,000,000 2,059,820
Tucson Street & Highway Revenue
5.50% 07/01/12 (MBIA) .................... 3,000,000 3,069,930
-----------
7,550,407
-----------
WATER AND SEWER REVENUE BONDS - 19.04%
Chandler Water & Sewer Revenue
5.00% 07/01/09 (FGIC) .................... 1,000,000 1,013,380
Oro Valley Canada Hills Water Revenue
5.45% 07/01/14 (MBIA) .................... 2,290,000 2,327,693
Phoenix Civic Improvement Corporation
5.50% 07/01/21 (AMBAC) ................... 2,000,000 2,005,300
Phoenix Civic Improvement Corporation
Water System Revenue Junior Lien
5.60% 07/01/18 ........................... 1,000,000 1,017,180
Phoenix Civic Improvement Corporation
Water System Revenue Junior Lien
5.375% 07/01/22 (MBIA) ................... 1,155,000 1,156,190
Phoenix Water System Revenue
5.50% 07/01/22 ........................... 2,000,000 2,007,300
Tucson Water Revenue Refunding Series A
5.75% 07/01/18 (AMBAC) ................... 3,500,000 3,576,055
-----------
13,103,098
-----------
Total Municipal Bonds
(cost of $64,567,341) .................... 68,033,781
-----------
</TABLE>
<PAGE>
- --------------------------------------------------------------------------------
MARKET
VALUE
------------
TOTAL MARKET VALUE OF SECURITIES OWNED - 98.84%
(cost of $64,567,341)* ................................... $ 68,033,781
RECEIVABLES AND OTHER ASSETS
NET OF LIABILITIES - 1.16% ............................... 800,135
------------
TOTAL NET ASSETS - 100.00% ................................ $ 68,833,916
LIQUIDATION VALUE PREFERRED STOCK ......................... (25,000,000)
------------
NET ASSETS APPLICABLE TO 2,982,200 COMMON SHARES
($.01 PAR VALUE) OUTSTANDING ............................. $ 43,833,916
============
NET ASSET VALUE PER COMMON SHARE
($43,833,916 / 2,982,200 shares) ......................... $14.70
============
- ------------------
* Also cost for tax purposes.
AMBAC - Insured by the AMBAC Indemnity Corporation
AMT - Subject to Alternative Minimum Tax
FGIC - Insured by the Financial Guaranty Insurance Corporation
FHA - Insured by the Federal Housing Authority
FSA - Insured by the Financial Security Assurance
GNMA - Insured by the Government National Mortgage Association
MBIA - Insured by the Municipal Bond Insurance Association
COMPONENTS OF NET ASSETS AT SEPTEMBER 30, 1997:
Common Stock, $.01 par value, 2 million shares authorized
to the Fund ............................................... $ 40,838,893
Preferred Stock, $.01 par value, 1 million shares authorized
to the Fund ............................................... 25,000,000
Undistributed net investment income ........................ 414,388
Accumulated net realized loss on investments ............... (885,805)
Net unrealized gain on investments ......................... 3,466,440
------------
Total Net Assets ........................................... $ 68,833,916
============
See accompanying notes
1997 semi-annual report
15
<PAGE>
DELAWARE-VOYAGEUR COLORADO INSURED MUNICIPAL INCOME FUND, INC. --
STATEMENT OF NET ASSETS
SEPTEMBER 30, 1997
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
-----------------------------------
<S> <C> <C>
MUNICIPAL BONDS - 98.53%
CERTIFICATES OF PARTICIPATION - 1.91%
Arapahoe County Colorado Library District
5.70% 12/15/10 (MBIA) ........................... $ 2,000,000 $ 2,111,120
-----------
2,111,120
-----------
GENERAL OBLIGATION BONDS - 27.73%
Adams & Weld Counties School District #27J,
Brighton Series A 5.60% 12/01/12 (FGIC) .......... 2,000,000 2,094,660
Adams County School District #12, Five Star
5.40% 12/15/15 (FGIC) ........................... 1,250,000 1,274,100
Adams County School District #12, Five Star
5.40% 12/15/16 (FGIC) ........................... 2,000,000 2,030,060
Archuleta & Hinsdale Counties School District #50JT
5.50% 12/01/14 (MBIA) ........................... 1,000,000 1,017,450
Archuleta & Hinsdale Counties School District #50JT
5.55% 12/01/20 (MBIA) ............................ 4,000,000 4,036,120
Brighton County 5.50% 12/01/11 (FSA) .............. 1,200,000 1,243,572
Eagle Garfield & Routt Counties School
District #Re-50J 6.30% 12/01/12 (FGIC) ........... 1,000,000 1,104,150
El Paso County School District #20
5.625% 12/15/16 (MBIA) .......................... 1,000,000 1,032,150
El Paso County School District #20
5.625% 12/15/16 (AMBAC) ......................... 3,000,000 3,096,450
Larimer County School District #R 1, Poudre
Improvement 5.625% 12/15/12 (MBIA) ............... 1,000,000 1,034,550
Larimer & Weld Counties School District #Re-5J
5.75% 11/15/20 (AMBAC) ........................... 1,000,000 1,036,400
Larimer & Weld Counties School District #Re-5J
5.75% 11/15/20 (MBIA) ............................ 1,700,000 1,761,880
Larimer, Weld & Boulder Counties School
District #R-2J Thompson
5.45% 12/15/16 (FGIC) ........................... 1,250,000 1,270,600
Mesa County Colorado Valley School District #51
Grand Junction 5.50% 12/01/15 (MBIA) ............. 1,000,000 1,024,160
Mesa County Colorado Valley School District #51
Grand Junction 5.50% 12/01/16 (MBIA) ............. 1,100,000 1,124,827
Piney Creek Colorado Metropolitan District
5.65% 12/01/17 (FGIC) ........................... 2,100,000 2,147,061
Pueblo County (MBIA) 5.80% 06/01/11 ............... 1,405,000 1,482,106
Stonegate Village Metropolitan District Series A
5.50% 12/01/21 (FSA) ............................. 2,750,000 2,788,720
-----------
30,599,016
-----------
HEALTH CARE REVENUE BONDS - 9.89%
Colorado Health Facilities Authority Revenue,
Boulder Community Hospital Project,
Series 1994 B 5.875% 10/01/23 (MBIA) ............. 2,625,000 2,710,995
Colorado Health Facilities Authority Revenue,
North Colorado Medical Center
5.95% 05/15/12 (MBIA) ........................... 2,000,000 2,099,620
Colorado Health Facilities Authority Revenue,
North Colorado Medical Center
6.00% 05/15/20 (MBIA) ........................... 1,000,000 1,052,280
</TABLE>
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
-----------------------------------
<S> <C> <C>
MUNICIPAL BONDS (CONTINUED)
HEALTH CARE REVENUE BONDS (CONTINUED)
Colorado Springs Memorial Hospital Revenue
6.00% 12/15/24 (MBIA) ........................... $ 2,350,000 $ 2,476,219
Logan County Health Care Facilities Revenue,
Western Health Network Inc. ......................
5.90% 01/01/19 (MBIA) ........................... 2,510,000 2,578,121
-----------
10,917,235
-----------
HIGHER EDUCATION REVENUE BONDS - 10.32%
Aurora Educational Development Revenue
6.00% 10/15/15 (Connie Lee) ...................... 2,500,000 2,601,600
Colorado Mountain College Residence Hall Authority
Revenue 5.75% 06/01/23 (MBIA) .................... 1,000,000 1,031,310
Colorado Postsecondary Education Facility Authority
Revenue, University of Denver Project
6.00% 03/01/16 (Connie Lee) ...................... 4,000,000 4,156,320
Colorado State Board Community College &
Occupational Education Revenue
5.75% 11/01/11 (AMBAC) .......................... 500,000 529,785
Colorado State Colleges Board of Trustees, Adams
State College 5.75% 05/15/19 (MBIA) .............. 2,000,000 2,053,120
University of Northern Colorado Revenue Auxillary
Facilities System 5.60% 06/01/24 (MBIA) .......... 1,000,000 1,016,190
-----------
11,388,325
-----------
HOUSING REVENUE BONDS - 6.47%
Colorado Housing Finance Authority-Single-Family
Housing Series AA
5.625% 11/01/23 (MBIA) .......................... 5,000,000 5,046,950
Snowmass Village Multi-Family Housing, Revenue
Refunding Essential Function Housing
6.25% 12/15/16 (FSA) ............................ 2,000,000 2,096,460
-----------
7,143,410
-----------
LEASE OBLIGATION REVENUE BONDS - 2.16%
Puerto Rico Public Buildings Authority Revenue
Series B 5.00% 07/01/27 (AMBAC) .................. 2,500,000 2,388,125
-----------
2,388,125
-----------
MISCELLANEOUS & SALES TAX
REVENUE BONDS - 4.94%
Castle Rock Sales & Use Tax Revenue
5.90% 06/01/16 (FSA) ............................ 1,755,000 1,824,761
Douglas County Sales & Use Tax Revenue
5.50% 10/15/11 (MBIA) ........................... 3,500,000 3,628,450
-----------
5,453,211
-----------
POLLUTION CONTROL REVENUE BONDS - 1.41%
Adams County Pollution Control Revenue Refunding,
Public Service Company Project, Series A
5.875% 04/01/14 (MBIA) .......................... 1,500,000 1,559,370
-----------
1,559,370
-----------
</TABLE>
1997 semi-annual report
16
<PAGE>
DELAWARE-VOYAGEUR COLORADO INSURED MUNICIPAL INCOME FUND, INC.
STATEMENT OF NET ASSETS (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
-----------------------------------
<S> <C> <C>
MUNICIPAL BONDS (CONTINUED)
*PRE-REFUNDED BONDS - 12.73%
City of Westminster County Sales & Use Tax
Refunding Revenue, Series A
6.25% 12/01/12 - 02 (FGIC) ....................... $ 5,000,000 $ 5,441,800
Jefferson County School District #R-001
6.00% 12/15/12 - 02 (AMBAC) ...................... 1,575,000 1,709,537
Jefferson County School District #R-001
6.25% 12/15/12 - 02 (AMBAC) ...................... 2,435,000 2,671,073
Regional Transportation District Colorado Sales Tax
Revenue 6.25% 11/01/12 - 02 (FGIC) ............... 3,855,000 4,221,842
------------
14,044,252
------------
TRANSPORTATION REVENUE BONDS - 15.60%
Arapahoe County Capital Improvements Highway
Revenue 6.05% 08/31/15 (MBIA) .................... 4,700,000 5,045,403
Colorado Springs Airport Revenue, Series A
5.25% 01/01/17 (MBIA) ........................... 1,000,000 997,510
Denver City & County Airport Revenue, Series A
5.50% 11/15/25 (MBIA) ............................ 6,000,000 5,974,020
Denver City & County Airport Revenue, Series A
5.60% 11/15/20 (MBIA) ........................... 2,500,000 2,524,825
Denver City & County Airport Revenue, Series D
5.50% 11/15/25 (MBIA) ........................... 2,000,000 1,991,340
Regional Transportation District Colorado Sales Tax
Revenue 6.25% 11/01/12 (FGIC) .................... 645,000 689,337
------------
17,222,435
------------
UTILITY REVENUE BONDS - 5.37%
Platte River Power Authority Colorado Power
Revenue Series DD
5.375% 06/01/17 (MBIA) .......................... 2,750,000 2,762,788
Municipal Subdistrict of Northern Colorado Water
Conservancy District Revenue Series F
6.50% 12/01/12 (AMBAC) .......................... 2,800,000 3,158,736
------------
5,921,524
------------
Total Municipal Bonds
(cost of $104,737,615) .......................... 108,748,023
------------
</TABLE>
<PAGE>
MARKET
VALUE
------------------
TOTAL MARKET VALUE OF SECURITIES OWNED - 98.53%
(cost of $104,737,615)** ................................. $ 108,748,023
RECEIVABLES AND OTHER ASSETS
NET OF LIABILITIES - 1.47% ............................... 1,618,179
-------------
TOTAL NET ASSETS - 100.00% ................................ 110,366,202
LIQUIDATION VALUE OF PREFERRED STOCK ....................... (40,000,000)
-------------
NET ASSETS APPLICABLE TO 4,837,100 COMMON SHARES
($.01 PAR VALUE) OUTSTANDING .............................. $ 70,366,202
=============
NET ASSET VALUE PER COMMON SHARE
($70,366,202 / 4,837,100 shares) ......................... $ 14.55
=============
- -------------------
* For Pre-Refunded Bonds, the stated maturity is followed by the year in
which each bond is pre-refunded.
**Also cost for federal tax purposes.
AMBAC - Insured by the American Municipal Bond Assurance Corporation
Connie Lee - Insured by the College Construction Insurance Association
FGIC - Insured by the Financial Guaranty Insurance Company
FSA - Insured by the Financial Security Assurance
MBIA - Insured by the Municipal Bond Insurance Association
COMPONENTS OF NET ASSETS AT SEPTEMBER 30, 1997:
Common Stock, $.01 par value, 200 million shares authorized
to the Fund ............................................... $ 67,238,110
Preferred Stock, $.01 par value, 1 million shares authorized
to the Fund ............................................... 40,000,000
Undistributed net investment income ........................ 690,921
Accumulated net realized loss on investments ............... (1,573,237)
Net unrealized gain on investments ......................... 4,010,408
-------------
Total Net Assets ........................................... $ 110,366,202
=============
See accompanying notes
1997 semi-annual report
17
<PAGE>
DELAWARE-VOYAGEUR FLORIDA INSURED MUNICIPAL INCOME FUND --
STATEMENT OF NET ASSETS
SEPTEMBER 30, 1997
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
-------------------------------
<S> <C> <C>
MUNICIPAL BONDS - 98.57%
CERTIFICATES OF PARTICIPATION - 13.10%
Dade County School Board Lease
5.60% 08/01/17 (AMBAC) ................ $1,000,000 $1,018,830
Escambia County School Board Lease
5.50% 02/01/22 (MBIA) ................. 5,000,000 5,046,650
St. Lucie County School Board Lease
5.375% 07/01/19 (FSA) ................. 1,250,000 1,245,912
----------
7,311,392
----------
GENERAL OBLIGATION BONDS - 4.31%
Reedy Creek Improvement-Sports Complex
5.75% 06/01/13 (MBIA) ................. 2,300,000 2,405,501
----------
2,405,501
----------
HIGHER EDUCATION REVENUE BONDS - 5.02%
Florida Agricultural & Mechanical
University/Student Apartment Facility
5.625% 07/01/21 (MBIA) ................ 1,250,000 1,275,725
Volusia Education Facilities Authority
Revenue Stetson University
5.50% 06/01/17 (MBIA) ................. 1,500,000 1,522,845
----------
2,798,570
----------
HOSPITAL REVENUE BONDS - 15.78%
Lakeland Hospital System Revenue
Lakeland Regional Medical Center
5.75% 11/15/15 (FGIC) ................. 2,500,000 2,570,275
Orange County Health Facilities Authority
Revenue Adventist Health System
5.75% 11/15/25 (AMBAC) ................ 1,500,000 1,539,225
Orange County Health Facilities Authority
Revenue Orlando Regional Health
6.25% 10/01/18 (MBIA) ................. 2,000,000 2,244,380
Venice Health Care Revenue
Bon Secours Health System Project
5.60% 08/15/16 (MBIA) ................. 2,405,000 2,453,870
----------
8,807,750
----------
HOUSING REVENUE BONDS - 11.89%
Florida Housing Finance Agency
Homeowner Mortgage Series 2 AMT
5.90% 07/01/29 (MBIA) ................. 1,250,000 1,277,500
Florida State Housing Revenue
Leigh Meadows Project Series N AMT
6.30% 09/01/36 (AMBAC) ................ 2,510,000 2,628,874
Florida State Housing Revenue
Woodbridge Project Series L AMT
6.05% 12/01/16 (AMBAC) ................ 1,120,000 1,165,080
Florida State Housing Revenue Woodbridge
Project Series L AMT
6.25% 06/01/36 (AMBAC) ................ 1,500,000 1,566,030
----------
6,637,484
----------
</TABLE>
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
-------------------------------
<S> <C> <C>
MUNICIPAL BONDS (CONTINUED)
*PRE-REFUNDED BONDS - 1.94%
Dade County Seaport
6.25% 10/01/21-01 (AMBAC) .............. $1,000,000 $1,084,280
----------
1,084,280
----------
TRANSPORTATION REVENUE BONDS - 4.72%
Dade County Aviation Revenue Series B
5.60% 10/01/26 (MBIA) .................. 1,000,000 1,013,100
Hillsborough County Aviation Authority
Revenue Tampa International Airport
Series B 5.60% 10/01/19 (FGIC) .......... 1,600,000 1,622,608
----------
2,635,708
----------
UTILITY REVENUE BONDS - 8.75%
Florida State Municipal Power
Agency Revenue St. Lucie Project
5.70% 10/01/16 (FGIC) .................. 1,250,000 1,276,700
Sunrise Utility System Revenue Series A
5.75% 10/01/26 (AMBAC) ................. 2,500,000 2,568,825
Tampa Utilities Tax Revenue
6.00% 10/01/15 (AMBAC) ................. 1,000,000 1,038,730
----------
4,884,255
----------
WATER AND SEWER REVENUE BONDS - 11.29%
City of Panama Beach Water & Sewer
5.50% 06/01/18 (AMBAC) ................. 1,000,000 1,006,000
Dade County Water & Sewer
5.50% 10/01/25 (FGIC) .................. 1,100,000 1,098,427
Florida Keys Aqueduct Water Revenue
5.25% 09/01/21 (AMBAC) ................. 1,700,000 1,665,898
Indian River County Water & Sewer Revenue
5.50% 09/01/16 (FGIC) .................. 1,000,000 1,023,850
Sarasota County Utility System Revenue
5.50% 10/01/22 (FGIC) .................. 1,500,000 1,506,030
----------
6,300,205
----------
OTHER REVENUE BONDS - 21.77%
Boca Raton Community Redevelopment Tax
Increment Revenue Mizner Park Project
5.875% 03/01/13 (FGIC) ................. 1,500,000 1,568,640
Dade County Professional Sports Franchise
Facilities Revenue 6.00% 10/01/22 (FGIC) 1,000,000 1,046,840
Florida Ports Financing Commission Revenue
AMT 5.375% 06/01/27 (MBIA) .............. 2,250,000 2,218,612
Hillsborough County Industrial Development
Authority Revenue Allegheny Health System
Knox Village 5.75% 12/01/21 (MBIA) ...... 1,000,000 1,020,670
Miami Beach Resort Tax Revenue
5.50% 10/01/16 (AMBAC) ................. 1,000,000 1,020,670
Orange County Public Service Tax Revenue
6.00% 10/01/24 (FGIC) .................. 3,000,000 3,180,420
</TABLE>
1997 semi-annual report
18
<PAGE>
DELAWARE-VOYAGEUR FLORIDA INSURED MUNICIPAL INCOME FUND
STATEMENT OF NET ASSETS (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
-------------------------------
<S> <C> <C>
MUNICIPAL BONDS (CONTINUED)
OTHER REVENUE BONDS (CONTINUED)
Orange County Sales Tax Revenue
6.125% 01/01/19 (FGIC) ......................... $ 1,000,000 $ 1,042,060
Village Center Community Development
District Revenue Series A
5.85% 11/01/16 (MBIA) .......................... 1,000,000 1,050,720
-----------
12,148,632
-----------
Total Municipal Bonds
(cost of $52,532,346) .......................... 55,013,777
-----------
TOTAL MARKET VALUE OF SECURITIES OWNED - 98.57%
(cost of $52,532,346)** ......................... $55,013,777
RECEIVABLES AND OTHER ASSETS
NET OF LIABILITIES - 1.43% ...................... 795,734
-----------
TOTAL NET ASSETS - 100.00% ....................... $55,809,511
-----------
LIQUIDATION VALUE OF PREREFERRED STOCK ........... (20,000,000)
-----------
NET ASSETS APPLICABLE TO 2,422,200 COMMON SHARES
($.01 PAR VALUE) OUTSTANDING .................... $35,809,511
===========
NET ASSET VALUE PER COMMON SHARE
($35,809,511 / 2,422,200 shares) ................ $14.78
======
- -------------------
* For Pre-Refunded Bonds, the stated maturity is
followed by the year in which each bond is pre-refunded.
**Also cost for tax purposes.
AMBAC - Insured by the AMBAC Indemnity Corporation
AMT - Subject to Alternative Minimum Tax
FGIC - Insured by the Financial Guaranty Insurance Corporation
FSA - Insured by the Financial Security Assurance
MBIA - Insured by the Municipal Bond Insurance Association
COMPONENTS OF NET ASSETS AT SEPTEMBER 30, 1997:
Common Stock, $.01 par value, unlimited shares authorized
to the Fund ............................................... $ 33,361,389
Preferred Stock, $.01 par value, unlimited shares authorized
to the Fund ............................................... 20,000,000
Undistributed net investment income ........................ 386,176
Accumulated net realized loss on investments ............... (419,485)
Net unrealized gain on investments ......................... 2,481,431
------------
Total Net Assets ........................................... $ 55,809,511
============
</TABLE>
See accompanying notes
1997 semi-annual report
19
<PAGE>
DELAWARE-VOYAGEUR MINNESOTA MUNICIPAL INCOME FUND, INC. --
STATEMENT OF NET ASSETS
SEPTEMBER 30, 1997
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
-------------------------------
<S> <C> <C>
MUNICIPAL BONDS - 97.20%
GENERAL OBLIGATION BONDS - 15.98%
Carver County Series 1992-A
5.875% 02/01/14 ........................... $1,000,000 $1,022,660
Edina Recreational Facilities Bonds
Series 1992-A 6.00% 01/01/09 ............... 305,000 318,996
Edina Recreational Facilities Bonds
Series 1992-A 6.00% 01/01/10 ............... 320,000 334,058
Minneapolis 6.00% 03/01/16 .................. 1,600,000 1,654,752
Minneapolis-St. Paul Metro Airport Commission
AMT 6.60% 01/01/11 ........................ 1,500,000 1,603,020
Puerto Rico Commonwealth
6.00% 07/01/26 ............................ 2,000,000 2,096,060
Rosemount Independent School District #196
5.70% 04/01/12 ............................ 1,000,000 1,045,850
St. Francis Independent School District #15
6.30% 02/01/11(FSA) ....................... 1,250,000 1,402,888
----------
9,478,284
----------
HIGHER EDUCATION REVENUE BONDS - 9.05%
Minnesota Higher Education Facility
St. Thomas University Series 3-C
6.25% 09/01/16 ............................ 1,000,000 1,049,280
Minnesota Higher Education Facility
Macalester College Series 3-J
6.40% 03/01/22 ............................ 1,000,000 1,059,210
Minnesota State University Board Revenue
State University System Series A
6.05% 06/30/18 ............................ 250,000 259,547
Northfield St. Olaf College Revenue
6.30% 10/01/12 ............................ 1,075,000 1,148,455
Northfield St. Olaf College Revenue
6.40% 10/01/21 ............................ 1,750,000 1,850,818
----------
5,367,310
----------
HOSPITAL REVENUE BONDS - 15.01%
Bloomington Health Care Facilities
Masonic Home Care Center
5.875% 07/01/22 (AMBAC) ................... 1,000,000 1,030,440
Duluth Economic Development Authority
Health Care Revenue Duluth Clinic
Series 1992 6.30% 11/01/22 (AMBAC) ......... 1,270,000 1,364,716
Duluth Economic Development Authority
Health Care Revenue St. Mary's Hospital
Series 1993-C
6.00% 02/15/20 (Connie Lee) ................ 1,000,000 1,035,380
Duluth Economic Development Authority
Health Care Revenue St. Luke's Hospital
Series 1992-B
6.40% 05/01/18 (Connie Lee) ................ 1,000,000 1,067,040
</TABLE>
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
-------------------------------
<S> <C> <C>
MUNICIPAL BONDS (CONTINUED)
HOSPITAL REVENUE BONDS (CONTINUED)
Minneapolis Hospital System Revenue
Fairview Hospital Series 1991-A
6.50% 01/01/11 (MBIA) ......................... $ 2,210,000 $ 2,401,099
Minneapolis Hospital System Revenue
Fairview Hospital Series 1993-A
5.25% 11/15/19 (MBIA) ......................... 1,500,000 1,471,050
Minneapolis/St. Paul HRA HealthOne
6.75% 08/15/14 (MBIA) ......................... 500,000 537,865
------------
8,907,590
------------
HOUSING REVENUE BONDS - 23.18%
Brooklyn Center Multifamily Housing Revenue
Four Courts AMT 7.50% 06/01/25 ................ 1,800,000 1,834,362
Minnesota Housing Finance Agency
Single Family Mortgage Revenue
Series 1991-A AMT
7.45% 07/01/22 (FHA) .......................... 1,425,000 1,519,734
Minnesota Housing Finance Agency
Single Family Mortgage Revenue
Series 1992-G 6.50% 07/01/06 ................... 430,000 459,558
Minnetonka Senior Housing Project
(Presbyterian Homes Guaranteed)
7.70% 06/01/25 ................................ 2,725,000 2,917,930
New Brighton Multifamily Mortgage Revenue
Polynesian Village Apartments
Series 1995-A 7.60% 04/01/25 ................... 1,400,000 1,439,088
St. Anthony Multifamily Housing Development
6.875% 07/01/22 (Asset Guaranty) ............... 2,265,000 2,423,346
St. Paul HRA Multifamily Housing Revenue
Pointe of St. Paul Project
Series 1992 6.60% 10/01/12 (FNMA) .............. 2,950,000 3,155,055
------------
13,749,073
------------
INDUSTRIAL DEVELOPMENT REVENUE BONDS - 6.26%
Bass Brook PCR Minnesota Power and Light
6.00% 07/01/22 ................................ 2,575,000 2,650,834
Metropolitan Council Sports Facilities Commission
Hubert H. Humphrey Metrodome
6.00% 10/01/09 ................................ 1,000,000 1,066,200
------------
3,717,034
------------
POLLUTION CONTROL REVENUE BONDS - 2.79%
Minnesota Public Facilities Authority
Water Pollution Control Revenue
Series 1992 6.50% 03/01/14 ..................... 1,500,000 1,658,010
------------
1,658,010
------------
</TABLE>
1997 semi-annual report
20
<PAGE>
DELAWARE-VOYAGEUR MINNESOTA MUNICIPAL INCOME FUND, INC.
STATEMENT OF NET ASSETS (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
-------------------------------
<S> <C> <C>
MUNICIPAL BONDS (CONTINUED)
POWER AUTHORITY REVENUE BONDS - 13.90%
Anoka County Solid Waste Disposal
National Rural Co-Op Utility AMT
6.95% 12/01/08 ................................ $ 1,000,000 $ 1,073,770
Northern Minnesota Municipal Power Agency
Electric System Revenue Series A
5.00% 01/01/21 ................................ 1,500,000 1,402,140
Northern Minnesota Municipal Power Agency
Electric System Revenue Series B
5.50% 01/01/18 (AMBAC) ........................ 1,250,000 1,262,513
Southern Minnesota Municipal Power Agency
5.75% 01/01/11 (FGIC) ......................... 1,000,000 1,042,550
Southern Minnesota Municipal Power Agency
5.50% 01/01/15 (AMBAC) ........................ 610,000 619,772
Southern Minnesota Municipal Power Agency
5.00% 01/01/16 (FGIC) ......................... 580,000 567,054
Western Minnesota Municipal Power Agency
5.50% 01/01/15 (MBIA) ......................... 2,275,000 2,277,343
-----------
8,245,142
-----------
*PRE-REFUNDED BONDS - 9.85%
Dakota & Washington Counties HRA
Single Family Mortgage Revenue
Bloomington AMT
8.375% 09/01/21(GNMA) Escrowed to
Maturity ....................................... 2,555,000 3,521,096
Duluth Economic Development Authority
Health Care Revenue Duluth Clinic Series 1992
6.30% 11/01/22-04 (AMBAC) ..................... 730,000 812,600
St. Cloud Hospital Revenue
6.75% 07/01/15-01 (AMBAC) ..................... 1,000,000 1,105,640
Southern Minnesota Municipal Power Agency
5.50% 01/01/15 (AMBAC) Escrowed to
Maturity ....................................... 390,000 402,141
-----------
5,841,477
-----------
TRANSPORTATION REVENUE BONDS - 1.18%
Puerto Rico Commonwealth Highway & Transportation
Authority 5.50% 07/01/26 ...................... 700,000 699,930
-----------
699,930
-----------
Total Municipal Bonds
(cost of $53,843,678) ......................... 57,663,850
-----------
</TABLE>
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
VALUE
------------
<S> <C>
TOTAL MARKET VALUE OF SECURITIES OWNED - 97.20%
(cost of $53,843,678)** .................................. $ 57,663,850
RECEIVABLES AND OTHER ASSETS
NET OF LIABILITIES - 2.80% ............................... 1,662,246
------------
TOTAL NET ASSETS - 100.00% ................................ $ 59,326,096
LIQUIDATION VALUE OF PREFERRED STOCK ...................... (20,000,000)
------------
NET ASSETS APPLICABLE TO 2,594,700 COMMON SHARES
($.01 PAR VALUE) OUTSTANDING ............................. $ 39,326,096
============
NET ASSET VALUE PER COMMON SHARE
($39,326,096 / 2,594,700 shares) ......................... $15.16
============
- ----------------
* For Pre-Refunded Bonds, the stated maturity is followed by the year in
which each bond is pre-refunded.
**Also cost for tax purposes.
AMBAC - Insured by the AMBAC Indemnity Corporation
AMT - Subject to Alternative Minimum Tax
Asset Guaranty - Insured by the Asset Guaranty Insurance Company
Connie Lee - Insured by the College Construction Insurance Association
FGIC - Insured by the Financial Guaranty Insurance Corporation
FHA - Insured by the Federal Housing Authority
FNMA - Insured by the Federal National Mortgage Association
FSA - Insured by the Financial Security Assurance
GNMA - Insured by the Government National Mortgage Association
MBIA - Insured by the Municipal Bond Insurance Association
COMPONENTS OF NET ASSETS AT SEPTEMBER 30, 1997:
Common Stock, $.01 par value, 200 million shares authorized
to the Fund .............................................. $ 35,478,065
Preferred Stock $.01 par value, 1 million shares authorized
to the Fund .............................................. 20,000,000
Overdistribution of net investment income ................. (45,438)
Accumulated net realized gain on investments .............. 73,297
Net unrealized gain on investments ........................ 3,820,172
------------
Total Net Assets .......................................... $ 59,326,096
============
</TABLE>
See accompanying notes
1997 semi-annual report
21
<PAGE>
DELAWARE-VOYAGEUR MINNESOTA MUNICIPAL INCOME FUND II, INC. --
STATEMENT OF NET ASSETS
SEPTEMBER 30, 1997
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
-------------------------------
<S> <C> <C>
MUNICIPAL BONDS - 98.48%
GENERAL OBLIGATION BONDS - 14.47%
Becker AMT
6.25% 08/01/25 (MBIA) ..................... $ 3,700,000 $ 3,951,193
Buffalo Independent School District
6.15% 02/01/22 (FSA) ...................... 4,030,000 4,194,384
Esko Independent School District
5.65% 04/01/12 (FSA) ...................... 550,000 567,919
Hawley Independent School District
5.75% 02/01/17 (FSA) ...................... 1,000,000 1,032,610
Melrose Independent School District #740
Series A 5.63% 02/01/13 (FSA) .............. 3,225,000 3,290,984
Minneapolis Convention Center Facilities
5.40% 04/01/12 ............................ 2,000,000 2,047,220
Minnesota State
5.375% 08/01/11 ........................... 1,000,000 1,022,230
Red Wing Independent School District #256
Series 1993-A 5.70% 02/01/12 ............... 2,925,000 3,002,981
Red Wing Independent School District #256
Series 1993-A 5.70% 02/01/13 ............... 1,625,000 1,664,520
Rosemount Independent School District #196
5.70% 04/01/12 ............................ 1,270,000 1,328,229
Stewartville Independent School District #534
5.75% 02/01/17 ............................ 1,705,000 1,755,110
-----------
23,857,380
-----------
HIGHER EDUCATION REVENUE BONDS - 9.67%
Minnesota Higher Education Facility
Macalster College 5.55% 03/01/16 ........... 1,250,000 1,277,325
Minnesota Higher Education Facility
St. Thomas University Series 4A-1
5.625% 10/01/21 ........................... 1,000,000 1,010,180
Minnesota State Higher Education Facility
St. Thomas University Series R1
5.60% 10/01/15 ............................ 1,050,000 1,073,730
Minnesota State Higher Education Facility
St. Thomas University Series R2
5.60% 09/01/14 ............................ 275,000 282,224
Minnesota State University Board Revenue
Series 1993-A State University System
6.10% 06/30/23 ............................ 1,150,000 1,196,311
Minnesota State University Board Revenue
Series 1993-C State University System
5.60% 06/30/16 (MBIA) ..................... 4,115,000 4,203,596
Minnesota State University Board Revenue
Series 1993-C State University System
5.60% 06/30/19 (MBIA) ..................... 3,720,000 3,789,006
University of Minnesota Series A
5.50% 07/01/21 ............................ 3,000,000 3,117,480
-----------
15,949,852
-----------
</TABLE>
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
-------------------------------
<S> <C> <C>
MUNICIPAL BONDS (CONTINUED)
HOSPITAL REVENUE BONDS - 16.15%
Bloomington Health Care Facilities
Masonic Home Care Center
5.875% 07/01/22 (AMBAC) ......................... $ 4,000,000 $ 4,121,760
Brainerd Lutheran Hospital Health Care Facilities
Series A 6.65% 03/01/17 (FSA) .................... 1,195,000 1,299,276
Detroit Lakes Benedictine Health Systems
St. Mary's Hospital
6.00% 02/15/19 (Connie Lee) ...................... 1,250,000 1,294,225
Duluth Economic Development Authority
Health Care Facilities Revenue Duluth Clinic
6.20% 11/01/12 (AMBAC) .......................... 720,000 775,894
Duluth Economic Development Authority
Health Care Facilities Revenue Duluth Clinic
Series 1992 6.30% 11/01/22 (AMBAC) ............... 3,890,000 4,180,116
Duluth Economic Development Authority
Health Care Facilities Revenue St. Mary's Hospital
Series 1993-C
6.00% 02/15/20 (Connie Lee) ...................... 6,000,000 6,212,280
Minnesota Agricultural and Economic Development
Health Care System Fairview Hospital Series A
5.75% 11/15/26 (MBIA) ........................... 4,800,000 4,943,328
Minneapolis-St. Paul HRA HealthOne
7.40% 08/15/11 (MBIA) ........................... 2,105,000 2,303,165
Minneapolis-St. Paul HRA Childrens Health Care
5.50% 08/15/25 (FSA) ............................ 1,500,000 1,512,390
-----------
26,642,434
-----------
HOUSING REVENUE BONDS - 21.56%
Chanhassen Multifamily Housing Heritage Park
Project AMT 6.20% 07/01/30 (FHA) ................. 1,105,000 1,154,018
Dakota County HRA Multifamily Mortgage Revenue
Imperial Ridge Project Series 1993-A
6.10% 12/15/28 (GNMA) ........................... 1,880,000 1,963,021
Harmony Minnesota Multifamily Revenue
Zedakah Foundation Project Series A
5.95% 09/01/20 .................................. 1,000,000 1,021,340
Minnesota Housing Finance Agency
Multifamily Rental Housing
Series D 5.90% 02/01/14 ......................... 1,115,000 1,152,263
Minnesota Housing Finance Agency
Multifamily Rental Housing
Series D 6.00% 08/01/22 ......................... 2,295,000 2,369,932
</TABLE>
1997 semi-annual report
22
<PAGE>
DELAWARE-VOYAGEUR MINNESOTA MUNICIPAL INCOME FUND II, INC.
STATEMENT OF NET ASSETS (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
-------------------------------
<S> <C> <C>
MUNICIPAL BONDS (CONTINUED)
HOSPITAL REVENUE BONDS (CONTINUED)
Minnesota Housing Finance Agency
Single Family Housing Revenue
Series 1994-F 6.30% 07/01/25 ................... $ 1,545,000 $ 1,631,118
Minnesota Housing Finance Agency
Single Family Mortgage Revenue AMT
7.05% 07/01/22 ................................ 1,710,000 1,803,708
Minnesota Housing Finance Agency
Single Family Mortgage Revenue
Series 1992-B2 AMT 6.15% 01/01/26 .............. 3,970,000 4,105,258
Minnesota Housing Finance Agency
Single Family Mortgage Revenue
Series 1992-C2 AMT 6.15% 07/01/23 .............. 4,015,000 4,136,534
Minnesota Housing Finance Agency
Single Family Mortgage Revenue
Series 1994-J AMT 6.95% 07/01/26 ............... 3,685,000 3,967,529
Minnetonka Senior Housing Project
(Presbyterian Homes of Minnesota Guaranteed)
7.25% 06/01/09 ................................ 1,225,000 1,296,589
Minnetonka Senior Housing Project
(Presbyterian Homes of Minnesota Guaranteed)
7.50% 06/01/14 ................................ 760,000 814,226
Minnetonka Senior Housing Project
(Presbyterian Homes of Minnesota Guaranteed)
7.55% 06/01/19 ................................ 2,365,000 2,525,560
New Brighton Multifamily Mortgage Revenue
Polynesian Village Apartments
Series 1995-A 7.60% 04/01/25 ................... 3,820,000 3,926,654
St. Paul HRA Single family Mortgage Revenue
6.40% 03/01/21 (FNMA) ......................... 2,000,000 2,115,680
Stillwater, Minnesota Multifamily
Mortgage Revenue
AMT 7.25% 11/01/27 ............................ 1,540,000 1,571,816
-----------
35,555,246
-----------
INDUSTRIAL DEVELOPMENT
REVENUE BONDS - 6.07%
Bass Brook PCR Minnesota Power and Light
6.00% 07/01/22 ................................ 7,660,000 7,885,587
Metropolitan Council Sports Facilities Commission
Hubert H. Humphrey Metrodome
6.00% 10/01/09 ................................ 2,000,000 2,132,400
-----------
10,017,987
-----------
</TABLE>
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
-------------------------------
<S> <C> <C>
MUNICIPAL BONDS (CONTINUED)
POLLUTION CONTROL REVENUE BONDS - 5.99%
Cloquet, Minnesota Pollution Control Revenue
Potlatch Corporation Project
5.90% 10/01/26 ........................... $ 5,000,000 $ 5,159,150
Minnesota Public Facilities Authority
Water Pollution Control Revenue
6.25% 03/01/16 ........................... 1,000,000 1,070,810
Minnesota Public Facilities Authority
Water Pollution Control Revenue
Series 1992 6.50% 03/01/14 ................ 3,300,000 3,647,622
-----------
9,877,582
-----------
POWER AUTHORITY REVENUE BONDS - 8.03%
Northern Minnesota Municipal Power Agency
Electric System Revenue Series B
5.50% 01/01/18 (AMBAC) ................... 5,955,000 6,014,610
Puerto Rico Electric Power Authority
5.25% 07/01/21 ........................... 2,000,000 1,933,960
Southern Minnesota Municipal Power Agency
5.75% 01/01/18 (FGIC) .................... 3,565,000 3,683,928
Western Minnesota Municipal Power Agency
5.50% 01/01/15 (MBIA) .................... 1,605,000 1,606,653
-----------
13,239,151
-----------
*PRE-REFUNDED BONDS - 12.90%
Dakota & Washington Counties HRA
Single Family Mortgage Revenue
Bloomington AMT
8.375% 09/01/21 (GNMA) Escrowed to
Maturity .................................. 5,500,000 7,579,660
Duluth Economic Development Authority
Hospital Facilities Revenue Duluth Clinic
6.20% 11/01/12-04 (AMBAC) ................ 280,000 309,996
Duluth Economic Development Authority
Health Care Facilities Revenue
6.30% 11/01/22-04 (AMBAC) ................ 960,000 1,068,624
St. Paul HRA Sales Tax Revenue Civic Center
5.55% 11/01/23 (MBIA) Escrowed to
Maturity .................................. 4,200,000 4,306,890
St. Paul HRA Sales Tax Revenue Civic Center
5.55% 11/01/23 Escrowed to
Maturity .................................. 2,300,000 2,358,535
Southern Minnesota Municipal Power Agency
5.75% 01/01/18-16 ........................ 3,715,000 3,896,849
Western Minnesota Municipal Power Agency
6.625% 01/01/16 Escrowed to
Maturity .................................. 1,535,000 1,758,296
-----------
21,278,850
-----------
</TABLE>
1997 semi-annual report
23
<PAGE>
DELAWARE-VOYAGEUR MINNESOTA MUNICIPAL INCOME FUND II, INC.
STATEMENT OF NET ASSETS (CONTINUED)
- --------------------------------------------------------------------------------
PRINCIPAL MARKET
AMOUNT VALUE
-------------------------------
MUNICIPAL BONDS (CONTINUED)
TRANSPORTATION REVENUE BONDS - 3.64%
Puerto Rico Commonwealth Highway &
Transportation Authority 5.50% 07/01/26 .... $ 6,000,000 $ 5,999,400
-------------
5,999,400
-------------
Total Municipal Bonds
(cost of $155,136,171) .................................... 162,417,882
-------------
TOTAL MARKET VALUE OF SECURITIES OWNED - 98.48 %
(cost of $155,136,171)** .................................. 162,417,882
RECEIVABLES AND OTHER ASSETS
NET OF LIABILITIES - 1.52% ................................ 2,504,076
-------------
TOTAL NET ASSETS - 100.00% ................................. $ 164,921,958
LIQUIDATION VALUE OF PREFERRED STOCK ....................... (60,000,000)
-------------
NET ASSETS APPLICABLE TO 7,252,200 COMMON SHARES
($.01 PAR VALUE) OUTSTANDING .............................. $ 104,921,958
=============
NET ASSET VALUE PER COMMON SHARE
($104,921,958 / 7,252,200 shares) ......................... $14.47
=============
- ----------------------
* For Pre-Refunded Bonds, the stated maturity is followed by the
year in which each bond is pre-refunded.
** Also cost for tax purposes.
AMBAC - Insured by the AMBAC Indemnity Corporation
AMT - Subject to Alternative Minimum Tax
Connie Lee - Insured by the College Construction Insurance Association
FGIC - Insured by the Financial Guaranty Insurance Corporation
FHA - Insured by the Federal Housing Authority
FNMA - Insured by the Federal National Mortgage Association
FSA - Insured by the Financial Security Assurance
GNMA - Insured by the Government National Mortgage Association
MBIA - Insured by the Municipal Bond Insurance Association
COMPONENTS OF NET ASSETS AT SEPTEMBER 30, 1997:
Common Stock, $.01 par value, 200 million shares authorized
to the Fund ............................................... $ 99,710,002
Preferred Stock, $.01 par value, 1 million shares authorized
to the Fund ............................................... 60,000,000
Undistributed net investment income ........................ 680,513
Accumulated net realized loss on investments ............... (2,750,268)
Net unrealized gain on investments ......................... 7,281,711
-------------
Total Net Assets ........................................... $ 164,921,958
=============
See accompanying notes
<PAGE>
DELAWARE-VOYAGEUR MINNESOTA MUNICIPAL INCOME FUND III, INC. --
STATEMENT OF NET ASSETS
SEPTEMBER 30, 1997
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
-------------------------------
<S> <C> <C>
MUNICIPAL BONDS - 96.88%
GENERAL OBLIGATION BONDS - 10.86%
Brooklyn Park Minnesota Series A
5.50% 02/01/19 ................................ $1,075,000 $1,092,157
Esko Independent School District
5.75% 04/01/17 (FSA) .......................... 2,145,000 2,205,425
North Branch Independent School District
5.625% 02/01/17 (FGIC) ........................ 1,000,000 1,021,260
----------
4,318,842
----------
HIGHER EDUCATION REVENUE BONDS - 8.98%
Minnesota Higher Education Facilities
Authorities Revenue
St. Thomas University Series 4-A1
5.625% 10/01/21 ............................... 1,010,000 1,020,282
Minnesota Higher Education Facilities
St. Mary's College Series 3-Q
6.15% 10/01/23 ................................ 1,000,000 1,022,770
Minnesota Higher Education Facilities
St. Benedict College Series 3-W
6.375% 03/01/20 ............................... 1,275,000 1,321,282
Minnesota Higher Education Facilities
Macalester College Series 4-C
5.50% 03/01/12 ................................ 200,000 206,244
----------
3,570,578
----------
HOSPITAL REVENUE BONDS - 19.28%
Duluth Economic Development Authority
Hospital Facilities Revenue Duluth Clinic
6.20% 11/01/12 (AMBAC) ........................ 1,080,000 1,163,840
Minnesota Agricultural and Economic Development
Health Care System Fairview Hospital
Series A 5.75% 11/15/26 (MBIA) ................. 2,000,000 2,059,720
Princeton Fairview Hospital Revenue Series 1991-C
6.25% 01/01/21 (MBIA) ......................... 2,000,000 2,126,780
Robbinsdale North Memorial Medical Center
Series 1993-B 5.50% 05/15/23 (AMBAC) ........... 1,500,000 1,505,445
Wadena County Health Care Facilities Revenue
7.75% 09/01/24 ................................ 750,000 812,677
----------
7,668,462
----------
</TABLE>
1997 semi-annual report
24
<PAGE>
DELAWARE-VOYAGEUR MINNESOTA MUNICIPAL INCOME FUND III, INC.
STATEMENT OF NET ASSETS (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
-------------------------------
<S> <C> <C>
MUNICIPAL BONDS (CONTINUED)
HOUSING REVENUE BONDS - 19.84%
Brooklyn Center Multifamily Housing Revenue
Four Courts AMT 7.50% 06/01/25 ................... $1,000,000 $1,019,090
Burnsville Multifamily Mortgage Revenue Series A
7.10% 01/01/30 (FSA) ............................ 2,000,000 2,222,200
Edina HRA Edina Park Plaza
7.70% 12/01/28 (FHA) ............................ 1,000,000 1,048,960
Minneapolis Multifamily Housing Revenue
Olsen Townhomes AMT 6.00% 12/01/19 ............... 1,875,000 1,912,350
Minnesota HFA Single Family Mortgage
Revenue Series 1991-A AMT
7.45% 07/01/22 (FHA) ............................ 1,585,000 1,690,371
----------
7,892,971
----------
INDUSTRIAL DEVELOPMENT
REVENUE BONDS - 11.15%
Bass Brook PCR Minnesota Power and Light
6.00% 07/01/22 ................................... 1,505,000 1,549,322
Minnesota Public Facility Authority Water Pollution
Control 5.40% 03/01/15 ........................... 2,820,000 2,884,860
----------
4,434,182
----------
POLLUTION CONTROL REVENUE BONDS - 2.59%
Cloquet, Minnesota Pollution Control Revenue
Potlatch Corporation Project
5.90% 10/01/26 ................................... 1,000,000 1,031,830
----------
1,031,830
----------
POWER AUTHORITY REVENUE BONDS - 8.70%
Moorhead Public Utilities Revenue
6.25% 11/01/12 (MBIA) ............................ 1,500,000 1,599,690
Southern Minnesota Municipal Power Agency
5.75% 01/01/18 (FGIC) ............................ 1,800,000 1,860,048
----------
3,459,738
----------
*PRE-REFUNDED BONDS - 12.21%
Duluth Economic Development Authority
Hospital Facilities Revenue Duluth Clinic
6.20% 11/01/12-04 (AMBAC) ....................... 420,000 464,995
St. Paul HRA Sales Tax Revenue Civic Center
5.55% 11/01/23 (MBIA) Escrowed
to Maturity ...................................... 1,300,000 1,333,085
University of Minnesota Hospital
6.75% 12/01/16 Escrowed to Maturity .............. 2,580,000 3,057,713
----------
4,855,793
----------
</TABLE>
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
----------------------------
MUNICIPAL BONDS (CONTINUED)
TRANSPORTATION REVENUE BONDS - 3.27%
<S> <C> <C>
Puerto Rico Commonwealth Highway & Transportation
Authority 5.50% 07/01/26 .............. $ 1,300,000 $ 1,299,870
------------
1,299,870
------------
Total Municipal Bonds
(cost of $36,357,914) ..................................... 38,532,266
------------
TOTAL MARKET VALUE OF SECURITIES OWNED - 96.88 %
(cost of $36,357,914)** ................................... 38,532,266
RECEIVABLES AND OTHER ASSETS
NET OF LIABILITIES - 3.12% ................................ 1,240,850
------------
TOTAL NET ASSETS - 100.00% ................................. $ 39,773,116
LIQUIDATION VALUE OF PREFERRED STOCK ....................... (15,000,000)
------------
NET ASSETS APPLICABLE TO 1,837,200 COMMON SHARES
($.01 PAR VALUE) OUTSTANDING .............................. $ 24,773,116
============
NET ASSET VALUE PER COMMON SHARE
($24,773,116 / 1,837,200 shares) .......................... $13.48
============
- ------------------
* For Pre-Refunded Bonds, the stated maturity is followed by the
year in which each bond is pre-refunded.
** Also cost for tax purposes.
AMBAC - Insured by the AMBAC Indemnity Corporation
FGIC - Insured by the Financial Guaranty Insurance Corporation
FHA - Insured by the Federal Housing Authority
FSA - Insured by the Financial Security Assurance
MBIA - Insured by the Municipal Bond Insurance Association
COMPONENTS OF NET ASSETS AT SEPTEMBER 30, 1997:
Common Stock, $.01 par value, 200 million shares authorized
to the Fund ............................................... $ 25,246,730
Preferred Stock, $.01 par value, 1 million shares authorized
to the Fund ............................................... 15,000,000
Undistributed net investment income ........................ 190,379
Accumulated net realized loss on investments ............... (2,838,345)
Net unrealized gain on investments ......................... 2,174,352
------------
Total Net Assets ........................................... $ 39,773,116
============
</TABLE>
See accompanying notes
1997 semi-annual report
25
<PAGE>
THE DELAWARE-VOYAGEUR FUNDS
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Selected data for each common share of the Fund outstanding throughout each
period was as follows:
<TABLE>
<CAPTION>
Arizona Municipal Income Fund, Inc.
--------------------------------------------------------------
SIX MONTHS
ENDED YEAR YEAR YEAR YEAR 2/26/93*
9/30/97 ENDED ENDED ENDED ENDED TO
(UNAUDITED) 3/31/97 3/31/96 3/31/95 3/31/94 3/31/93
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period................ $ 13.78 $ 13.74 $ 13.22 $ 12.70 $ 13.77 $ 13.95
Income (loss) from investment operations:
Net investment income.............................. 0.54 1.08 1.09 1.08 0.95 0.01
Net realized and unrealized gain (loss) on
investments ...................................... 0.90 0.01 0.47 0.56 (0.79) (0.13)
------- ------- ------- ------- -------- -------
Total from investment operations.................... 1.44 1.09 1.56 1.64 0.16 (0.12)
------- ------- ------- ------- -------- -------
Less dividends and distributions to:
Common shareholders from net investment income(1) . (0.38) (0.76) (0.73) (0.78) (0.75) -
Preferred shareholders from net investment
income(1) ........................................ (0.14) (0.29) (0.31) (0.28) (0.18) -
Common shareholders from net realized gain on
investments ...................................... - - - (0.05) (0.09) -
Preferred shareholders from net realized gain
on investments ................................... - - - (0.01) (0.02) -
------- ------- ------- ------- -------- -------
Total dividends and distributions.................. (0.52) (1.05) (1.04) (1.12) (1.04) -
------- ------- ------- ------- -------- -------
Capital share transactions:
Capital charge with respect to issuance of shares - - - - (0.19) (0.06)
Net asset value, end of period...................... $ 14.70 $ 13.78 $ 13.74 $ 13.22 $ 12.70 $ 13.77
======= ======= ======= ======= ======== =======
Market value, end of period......................... $ 14.13 $ 13.00 $ 12.75 $ 12.13 $ 13.88 $ 15.13
======= ======= ======= ======= ======== =======
Total investment return based on:(2)
Market value....................................... 11.72% 8.20% 11.52% (6.43%) (2.91%) 8.42%
======= ======= ======= ======= ======== =======
Net asset value.................................... 10.00% 5.94% 9.55% 11.29% (2.20%) (1.29%)
======= ======= ======= ======= ======== =======
Ratios and supplemental data:
Net assets applicable to capital shares, end of
period (000 omitted) ............................. $68,834 $ 66,102 $ 65,990 $ 64,438 $ 62,881 $41,063
======= ======= ======= ======= ======== =======
Ratio of expenses to average net assets(3)(4)...... 0.82%** 0.78% 0.78% 0.79% 0.82% 0.90%**
Ratio of expenses to average net assets
applicable to common shares(4).................... 1.30%** 1.25% 1.26% 1.32% 1.24% 0.90%**
Ratio of net investment income to average net
assets(3) ........................................ 4.77%** 4.85% 4.88% 5.19% 4.41% 1.29%**
Ratio of net investment income to average net
assets applicable to common shares(5)............. 5.62%** 5.71% 5.57% 6.42% 5.45% 1.29%**
Portfolio turnover................................. 7% 31% 30% 18% 15% 0%
Leverage analysis:
Value of preferred shares outstanding
(000 omitted)..................................... $ 25,000 $ 25,000 $ 25,000 $ 25,000 $ 25,000 -
Net asset coverage per share of preferred shares,
end of period .................................... $137,668 $132,205 $131,979 $128,877 $125,762 -
Liquidation value per share of preferred shares(6). $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 -
</TABLE>
- ----------------------
* Commencement of operations
** Annualized
(1) For federal income tax purposes, all of the net investment income
distributions were derived from interest on securities exempt from federal
income tax.
(2) Total investment return is calculated assuming a purchase of common stock
on the opening of the first day and a sale on the closing of the last day
of each period reported. Dividends and distributions, if any, are assumed
for the purposes of this calculation, to be reinvested at prices obtained
under the Fund's dividend reinvestment plan. Generally, total investment
return based on net asset value will be higher than total investment return
based on market value in periods where there is an increase in the discount
or a decrease in the premium of the market value to the net asset value
from the beginning to the end of such periods. Conversely, total investment
return based on net asset value will be lower than total investment return
based on market value in periods where there is a decrease in the discount
or an increase in the premium of the market value to the net asset value
from the beginning to the end of such periods. The total investment returns
calculated based on market value and net asset value for a period of less
than one year have not been annualized.
(3) Ratios calculated on the basis of expenses and net investment income
applicable to both the common and preferred shares relative to the average
net assets of common and preferred shareholders.
(4) Beginning in the year ended March 31, 1996, the expense ratio reflects the
effect of gross expenses attributable to earnings credits on uninvested
cash balances received by the Fund. Prior period expense ratios have not
been adjusted.
(5) Ratio reflects total net investment income less dividends paid to preferred
shareholders from net investment income dividend by average net assets
applicable to common stock.
(6) Excluding any accumulated but unpaid dividends.
See accompanying notes
1997 semi-annual report
26
<PAGE>
THE DELAWARE-VOYAGEUR FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
- --------------------------------------------------------------------------------
Selected data for each common share of the Fund outstanding throughout each
period was as follows:
<TABLE>
<CAPTION>
COLORADO INSURED MUNICIPAL INCOME FUND, INC.
-----------------------------------------------------------
SIX MONTHS
ENDED YEAR YEAR YEAR 7/29/93*
9/30/97 ENDED ENDED ENDED TO
(UNAUDITED) 3/31/97 3/31/96 3/31/95 3/31/94
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period................................. $ 13.58 $ 13.61 $ 13.19 $ 12.80 $ 14.10
Income from investment operations:
Net investment income............................................... 0.54 1.05 1.03 1.02 0.59
Net realized and unrealized gain (loss) on investments 0.94 (0.06) 0.41 0.44 (1.19)
------- ------- ------- ------- -------
Total from investment operations.................................... 1.48 0.99 1.44 1.46 (0.60)
------- ------- ------- ------- -------
Less dividends and distributions to:
Common shareholders from net investment income(1)................... (0.37) (0.73) (0.70) (0.76) (0.39)
Preferred shareholders from net investment income(1)................ (0.14) (0.29) (0.32) (0.27) (0.11)
Common shareholders from net realized gain on
security transactions.............................................. - - - (0.03) -
Preferred shareholders from net realized gain on
security transactions.............................................. - - - (0.01) -
------- ------- ------- ------- -------
Total dividends and distributions................................... (0.51) (1.02) (1.02) (1.07) (0.50)
------- ------- ------- ------- -------
Capital share transactions:
Capital charge with respect to issuance of shares - - - - (0.20)
------- ------- ------- ------- -------
Net asset value, end of period....................................... $ 14.55 $ 13.58 $ 13.61 $ 13.19 $ 12.80
======= ======= ======= ======= =======
Market value, end of period.......................................... $ 13.50 $ 12.50 $ 12.63 $ 12.25 $ 14.50
======= ======= ======= ======= =======
Total investment return based on:(2)
Market value........................................................ 10.46% 4.77% 8.99% (10.05%) 5.52%
======= ======= ======= ======= =======
Net asset value..................................................... 9.59% 5.19% 8.55% 9.67% (6.66%)
======= ======= ======= ======= =======
Ratios and supplemental data:
Net assets applicable to capital shares, end of period (000
omitted) .......................................................... $110,366 $105,687 $105,843 $103,781 $101,923
======= ======= ======= ======= =======
Ratio of expenses to average net assets(3)(4)....................... 0.77%** 0.77% 0.75% 0.76% 0.78%**
Ratio of expenses to average net assets applicable to
common shares(4)................................................... 1.25%** 1.23% 1.21% 1.27% 1.13%**
Ratio of net investment income to average net assets ............... 5.00%** 4.76% 4.68% 4.88% 4.26%**
Ratio of net investment income to average net assets
applicable to common shares(5)..................................... 6.00%** 5.51% 5.18% 5.88% 5.02%**
Portfolio turnover.................................................. 6% 88% 39% 7% 3%
Leverage analysis:
Value of preferred shares outstanding (000 omitted) ................ $ 40,000 $ 40,000 $ 40,000 $ 40,000 $ 40,000
Net asset coverage per share of preferred shares, end of period .... $137,958 $132,109 $132,304 $129,726 $127,404
Liquidation value per share of preferred shares(6).................. $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000
</TABLE>
<PAGE>
- ----------------
* Commencement of operations
** Annualized.
(1) For federal income tax purposes, all of the net investment income
distributions were derived from interest on securities exempt from federal
income tax.
(2) Total investment return is calculated assuming a purchase of common stock
on the opening of the first day and a sale on the closing of the last day
of each period reported. Dividends and distributions, if any, are assumed
for the purposes of this calculation, to be reinvested. Generally, total
investment return based on net asset value will be higher than total
investment return based on market value in periods where there is an
increase in the discount or a decrease in the premium of the market value
to the net asset value from the beginning to the end of such periods.
Conversely, total investment return based on net asset value will be lower
than total investment return based on market value in periods where there
is a decrease in the discount or an increase in the premium of the market
value to the net asset value from the beginning to the end of such periods.
The total investment returns calculated based on market value and net asset
value for a period of less than one year have not been annualized.
(3) Ratios calculated on the basis of expenses and net investment income
applicable to both the common and preferred shares relative to the average
net assets of common and preferred shareholders.
(4) Beginning in the year ended March 31, 1996, the expense ratio reflects the
effect of gross expenses attributable to earnings credits on uninvested
cash balances received by the Fund. Prior period expense ratios have not
been adjusted.
(5) Ratio reflects total net investment income less dividends paid to preferred
shareholders from net investment income dividend by average net assets
applicable to common stock.
(6) Excluding any accumulated but unpaid dividends.
See accompanying notes
1997 semi-annual report
27
<PAGE>
THE DELAWARE-VOYAGEUR FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
- --------------------------------------------------------------------------------
Selected data for each common share of the Fund outstanding throughout each
period was as follows:
<TABLE>
<CAPTION>
FLORIDA INSURED MUNICIPAL INCOME FUND
---------------------------------------------------------------------
SIX MONTHS
ENDED YEAR YEAR YEAR YEAR 7/26/93*
9/30/97 ENDED ENDED ENDED ENDED TO
(UNAUDITED) 3/31/97 3/31/96 3/31/95 3/31/94 3/31/93
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period ................... $ 13.67 $ 13.71 $ 13.17 $ 12.46 $ 13.73 $ 14.05
Income (loss) from investment operations:
Net investment income ................................. 0.54 1.08 1.06 1.07 0.96 0.01
Net realized and unrealized gain (loss) on investments 1.09 (0.08) 0.51 0.69 (1.10) (0.25)
-------- --------- -------- -------- -------- --------
Total from investment operations ...................... 1.63 1.00 1.57 1.76 (0.14) (0.24)
-------- --------- -------- -------- -------- --------
Less dividends and distributions to:
Common shareholders from net investment income(1) ..... (0.38) (0.75) (0.72 (0.77) (0.74) --
Preferred shareholders from net investment income(1) .. (0.14) (0.29) (0.31) (0.28) (0.19) --
-------- --------- -------- -------- -------- --------
Total dividends and distributions ..................... (0.52) (1.04) (1.03) (1.05) (0.93) --
-------- --------- -------- -------- -------- --------
Capital share transactions:
Capital charge with respect to issuance of shares ..... -- -- -- -- (0.20) (0.08)
-------- --------- -------- -------- -------- --------
Net asset value, end of period ......................... $ 14.78 $ 13.67 $ 13.71 $ 13.17 $ 12.46 $ 13.73
======== ========= ======== ======== ======== ========
Market value, end of period ............................ $ 13.81 $ 12.50 $ 12.75 $ 12.25 $ 12.50 $ 15.13
======== ========= ======== ======== ======== ========
Total investment return based on:(2)
Market value .......................................... 13.66% 3.94% 10.39% 4.69% (13.04%) 7.65%
======== ========= ======== ======== ======== ========
Net asset value ....................................... 11.21% 5.23% 9.66% 12.56% (4.40%) (2.28%)
======== ========= ======== ======== ======== ========
Ratios and supplemental data:
Net assets applicable to capital shares
end of period (000 omitted) ......................... $ 55,810 $ 53,110 $ 53,207 $ 51,891 $ 50,189 $ 33,247
======== ========= ======== ======== ======== ========
Ratio of expenses to average net assets(3)(4) ......... 0.83%** 0.78% 0.80% 0.81% 0.85% 0.90%**
Ratio of expenses to average net assets
applicable to common shares(4) ...................... 1.31%** 1.25% 1.27% 1.35% 1.28% 0.90%**
Ratio of net investment income to average net assets .. 4.77%** 4.91% 4.82% 5.21% 4.49% 1.24%**
Ratio of net investment income to average net assets
applicable to common shares(5) ...................... 5.56%** 5.74% 5.45% 6.37% 5.46% 1.24%**
Portfolio turnover .................................... 4% 68% 22% 10% 20% 0%
Leverage analysis:
Value of preferred shares outstanding (000 omitted) ... $ 20,000 $ 20,000 $ 20,000 $ 20,000 $ 20,000 --
Net asset coverage per share of preferred shares,
end of period ........................................ $139,524 $ 132,775 $133,017 $ 129,728 $125,473 --
Liquidation value per share of preferred shares(6) .... $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 --
</TABLE>
- ----------
* Commencement of operations
** Annualized
(1) For federal income tax purposes, all of the net investment income
distributions were derived from interest on securities exempt from federal
income tax.
(2) Total investment return is calculated assuming a purchase of common stock on
the opening of the first day and a sale on the closing of the last day of
each period reported. Dividends and distributions, if any, are assumed for
the purposes of this calculation, to be reinvested at prices obtained under
the Fund's dividend reinvestment plan. Generally, total investment return
based on net asset value will be higher than total investment return based
on market value in periods where there is an increase in the discount or a
decrease in the premium of the market value to the net asset value from the
beginning to the end of such periods. Conversely, total investment return
based on net asset value will be lower than total investment return based on
market value in periods where there is a decrease in the discount or an
increase in the premium of the market value to the net asset value from the
beginning to the end of such periods. The total investment returns
calculated based on market value and net asset value for a period of less
than one year have not been annualized.
(3) Ratios calculated on the basis of expenses and net investment income
applicable to both the common and preferred shares relative to the average
net assets of common and preferred shareholders.
(4) Beginning in the year ended March 31, 1996, the expense ratio reflects the
effect of gross expenses attributable to earnings credits on uninvested cash
balances received by the Fund. Prior period expense ratios have not been
adjusted.
(5) Ratio reflects total net investment income less dividends paid to preferred
shareholders from net investment income dividend by average net assets
applicable to common stock.
(6) Excluding any accumulated but unpaid dividends.
See accompanying notes
28 1997 semi-annual report
<PAGE>
THE DELAWARE-VOYAGEUR FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
- --------------------------------------------------------------------------------
Selected data for each common share of the Fund outstanding throughout each
period was as follows:
<TABLE>
<CAPTION>
MINNESOTA MUNICIPAL INCOME FUND, INC.
---------------------------------------------------------------------
SIX MONTHS
ENDED YEAR YEAR YEAR YEAR 5/1/92*
9/30/97 ENDED ENDED ENDED ENDED TO
(UNAUDITED) 3/31/97 3/31/96 3/31/95 3/31/94 3/31/93
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period ....................... $ 14.47 $ 14.43 $ 14.21 $ 13.89 $ 14.67 $ 13.95
Income from investment operations:
Net investment income ..................................... 0.58 1.06 1.18 1.21 1.20 0.90
Net realized and unrealized gain (loss) on investments .... 0.70 0.18 0.26 0.34 (0.68) 1.00
-------- -------- -------- -------- -------- --------
Total from investment operations .......................... 1.28 1.24 1.44 1.55 0.52 1.90
-------- -------- -------- -------- -------- --------
Less dividends and distributions to:
Common shareholders from net investment income(1) ......... (0.46) (0.93) (0.93) (0.93) (0.93) (0.70)
Preferred shareholders from net investment income(1) ...... (0.13) 0.27) (0.29) (0.27) (0.18) (0.12)
Common shareholders from net realized gain on
investments .............................................. - - - (0.02) (0.16) (0.06)
Preferred shareholders from net realized gain on
investments .............................................. - - - (0.01) (0.03) (0.02)
-------- -------- -------- -------- -------- --------
Total dividends and distributions ......................... (0.59) (1.20) (1.22) (1.23) (1.30) (0.90)
-------- -------- -------- -------- -------- --------
Capital share transactions:
Capital charge with respect to issuance of shares ......... - - - - - (0.28)
-------- -------- -------- -------- -------- --------
Net asset value, end of period ............................. $ 15.16 $ 14.47 $ 14.43 $ 14.21 $ 13.89 $ 14.67
======== ======== ======== ======== ======== ========
Market value, end of period ................................ $ 15.38 $ 14.38 $ 15.00 $ 14.50 $ 15.63 $ 16.00
======== ======== ======== ======== ======== ========
Total investment return based on:(2)
Market value .............................................. 10.26% 2.01% 10.31% (0.71%) 4.28% 20.31%
Net asset value ........................................... 8.00% 6.90% 8.20% 9.72% 1.63% 10.91%
Ratios and supplemental data:
Net assets applicable to capital shares,
end of period (000 omitted) .............................. $ 59,326 $ 57,544 $ 57,429 $ 56,881 $ 56,034 $ 58,075
======== ======== ======== ======== ======== ========
Ratio of expenses to average net assets(3)(4) ............. 0.84%** 0.81% 0.82% 0.85% 0.78% 0.88%**
Ratio of expenses to average net assets
applicable to common shares(4) .......................... 1.28%** 1.24% 1.24% 1.33% 1.17% 1.21%**
Ratio of net investment income to average net assets(3) ... 5.14%** 4.78% 5.28% 5.66% 5.22% 4.92%**
Ratio of net investment income to average net assets
applicable to common shares(5) .......................... 6.03%** 5.45% 6.04% 6.93% 6.68% 6.62%**
Portfolio turnover ........................................ 0% 5% 7% 13% 11% 43%
Leverage analysis:
Value of preferred shares outstanding (000 omitted) ....... $ 20,000 $ 20,000 $ 20,000 $ 20,000 $ 20,000 $ 20,000
Net asset coverage per share of preferred shares,
end of period ............................................ $148,315 $143,860 $143,573 $142,201 $140,086 $145,188
Liquidation value per share of preferred shares(6) ........ $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000
- -----------
</TABLE>
<PAGE>
* Commencement of operations
** Annualized.
(1) For federal income tax purposes, all of the net investment income
distributions were derived from interest on securities exempt from federal
income tax.
(2) Total investment return is calculated assuming a purchase of common stock on
the opening of the first day and a sale on the closing of the last day of
each period reported. Dividends and distributions, if any, are assumed for
the purposes of this calculation, to be reinvested at prices obtained under
the Fund's dividend reinvestment plan. Generally, total investment return
based on net asset value will be higher than total investment return based
on market value in periods where there is an increase in the discount or a
decrease in the premium of the market value to the net asset value from the
beginning to the end of such periods. Conversely, total investment return
based on net asset value will be lower than total investment return based on
market value in periods where there is a decrease in the discount or an
increase in the premium of the market value to the net asset value from the
beginning to the end of such periods. The total investment returns
calculated based on market value and net asset value for a period of less
than one year have not been annualized.
(3) Ratios calculated on the basis of expenses and net investment income
applicable to both the common and preferred shares relative to the average
net assets of common and preferred shareholders.
(4) Beginning in the year ended March 31, 1996, the expense ratio reflects the
effect of gross expenses attributable to earnings credits on uninvested cash
balances received by the Fund. Prior period expense ratios have not been
adjusted.
(5) Ratio reflects total net investment income less dividends paid to preferred
shareholders from net investment income dividend by average net assets
applicable to common stock.
(6) Excluding any accumulated but unpaid dividends.
See accompanying notes
1997 semi-annual report 29
<PAGE>
THE DELAWARE-VOYAGEUR FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
- --------------------------------------------------------------------------------
Selected data for each common share of the Fund outstanding throughout each
period was as follows:
<TABLE>
<CAPTION>
Minnesota Municipal Income Fund II, Inc.
----------------------------------------------------------------------
SIX MONTHS
ENDED YEAR YEAR YEAR YEAR 2/26/93*
9/30/97 ENDED ENDED ENDED ENDED TO
(UNAUDITED) 3/31/97 3/31/96 3/31/95 3/31/94 3/31/93
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period .................... $ 13.59 $ 13.48 $ 13.12 $ 12.73 $ 13.84 $ 13.95
Income from investment operations:
Net investment income .................................. 56 1.13 1.10 1.11 0.98 0.03
Net realized and unrealized gain (loss) on security
transactions 0.88 0.08 0.38 0.39 (0.96) (0.11)
-------- -------- -------- -------- ------- --------
Total from investment operations ....................... 1.44 1.21 1.48 1.50 0.02 (0.08)
-------- -------- -------- -------- ------- --------
Less dividends and distributions to:
Common shareholders from net investment income(1) ...... (0.41) (0.81) (0.80) (0.83) (0.76) -
Preferred shareholders from net investment income(1) ... (0.15) (0.29) (0.32) (0.28) (0.18) -
Common shareholders from net realized gain on security
transactions .......................................... - - - - (0.02) -
Preferred shareholders from net realized gain on
security transactions ................................. - - - - (0.00) -
-------- -------- -------- -------- ------- --------
Total dividends and distributions ...................... (0.56) (1.10) (1.12) (1.11) (0.96) -
-------- -------- -------- -------- ------- --------
Capital share transactions:
Capital charge with respect to issuance of shares ...... - - - - (0.17) (0.03)
-------- -------- -------- -------- ------- --------
Net asset value, end of period ......................... $ 14.47 $ 13.59 $ 13.48 $ 13.12 $ 12.73 $ 13.84
======== ======== ======== ======== ======= ========
Market value, end of period ............................ $ 13.81 $ 12.63 $ 13.25 $ 12.38 $ 4.63 $ 15.13
======== ======== ======== ======== ======= ========
Total investment return based on:(2)
Market value ........................................... 12.74% 1.47% 14.16% (9.59%) 1.71% 8.42%
======== ======== ======== ======== ======= ========
Net asset value ........................................ 9.72% 6.97% 8.88% 10.16% (2.93%) (0.79%)
======== ======== ======== ======== ======= ========
Ratios and supplemental data:
Net assets applicable to capital shares, end of period
(000 omitted) $164,922 $158,572 $157,755 $155,139 $152,326 $100,392
======== ======== ======== ======== ======= ========
Ratio of expenses to average net assets(3)(4) .......... 0.78%** 0.74% 0.77% 0.77% 0.76% 0.83%**
Ratio of expenses to average net assets
applicable to common shares(4) ........................ 1.23%** 1.19% 1.23% 1.28% 1.15% 0.83%**
Ratio of net investment income to average net
assets(3) ............................................. 35.02%** 5.15% 5.03% 5.39% 4.54% 2.29%**
Ratio of net investment income to average net assets
applicable to common shares(5) ........................ 5.79%** 6.15% 5.76% 6.69% 5.58% 2.29%**
Portfolio turnover ..................................... 4% 20% 11% 32% 27% 11%
Leverage analysis:
Value of preferred shares outstanding (000 omitted) .... $ 60,000 $ 60,000 $ 60,000 $ 60,000 $ 60,000 -
Net asset coverage per share of preferred shares,
end of period ......................................... $137,435 $132,143 $131,462 $129,283 $126,938 -
Liquidation value per share of preferred shares(6) ..... $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 -
</TABLE>
<PAGE>
- ---------------
* Commencement of operations
** Annualized.
(1) For federal income tax purposes, all of the net investment income
distributions were derived from interest on securities exempt from federal
income tax.
(2) Total investment return is calculated assuming a purchase of common stock on
the opening of the first day and a sale on the closing of the last day of
each period reported. Dividends and distributions, if any, are assumed for
the purposes of this calculation, to be reinvested at prices obtained under
the Fund's dividend reinvestment plan. Generally, total investment return
based on net asset value will be higher than total investment return based
on market value in periods where there is an increase in the discount or a
decrease in the premium of the market value to the net asset value from the
beginning to the end of such periods. Conversely, total investment return
based on net asset value will be lower than total investment return based on
market value in periods where there is a decrease in the discount or an
increase in the premium of the market value to the net asset value from the
beginning to the end of such periods. The total investment returns
calculated based on market value and net asset value for a period of less
than one year have not been annualized.
(3) Ratios calculated on the basis of expenses and net investment income
applicable to both the common and preferred shares relative to the average
net assets of common and preferred shareholders.
(4) Beginning in the year ended March 31, 1996, the expense ratio reflects the
effect of gross expenses attributable to earnings credits on uninvested cash
balances received by the Fund. Prior period expense ratios have not been
adjusted.
(5) Ratio reflects total net investment income less dividends paid to preferred
shareholders from net investment income dividend by average net assets
applicable to common stock.
(6) Excluding any accumulated but unpaid dividends.
See accompanying notes
30 1997 semi-annual report
<PAGE>
THE DELAWARE-VOYAGEUR FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
- --------------------------------------------------------------------------------
Selected data for each common share of the Fund outstanding throughout each
period was as follows:
<TABLE>
<CAPTION>
Minnesota Municipal Income Fund III, Inc.
------------------------------------------------------------
SIX MONTHS
ENDED YEAR YEAR YEAR 10/29/93*
9/30/97 ENDED ENDED ENDED TO
(UNAUDITED) 3/31/97 3/31/96 3/31/95 3/31/94
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period ..................... $ 12.71 $ 12.54 $ 12.20 $ 11.86 $ 14.03
Income from investment operations:
Net investment income ................................... 0.52 1.08 1.05 1.06 0.32
Net realized and unrealized gain (loss) on investments .. 0.77 0.15 0.33 0.28 (1.88)
-------- -------- -------- -------- -------
Total from investment operations ........................ 1.29 1.23 1.38 1.34 (1.56)
-------- -------- -------- -------- -------
Less dividends and distributions to:
Common shareholders from net investment income(1) ....... (0.38) (0.75) (0.72) (0.73) (0.25)
Preferred shareholders from net investment income(1) .... (0.14) (0.31) (0.32) (0.28) (0.06)
-------- -------- -------- -------- -------
Total dividends and distributions ....................... (0.52) (1.06) (1.04) (1.01) (0.31)
-------- -------- -------- -------- -------
Capital share transactions:
Capital charge with respect to issuance of shares ....... - - - 0.01 (0.30)
-------- -------- -------- -------- -------
Net asset value, end of period ........................... $ 13.48 $ 12.71 $ 12.54 $ 12.20 $ 11.86
======== ======== ======== ======== =======
Market value, end of period .............................. $ 12.75 $ 12.25 $ 12.00 $ 11.25 $ 14.00
======== ======== ======== ======== =======
Total investment return based on:(2)
Market value ............................................ 7.27% 8.62% 13.51% (14.27%) 1.53%
======== ======== ======== ======== =======
Net asset value ......................................... 9.30% 7.50% 8.79% 9.55% (13.85%)
======== ======== ======== ======== =======
Ratios and supplemental data:
Net assets applicable to capital shares, end of period
(000 omitted) .......................................... $ 39,773 $ 38,348 $ 38,046 $ 37,418 $36,785
======== ======== ======== ======== =======
Ratio of expenses to average net assets(3)(4) ........... 0.86%** 0.81% 0.81% 0.82% 0.90%**
Ratio of expenses to average net assets applicable to
common shares(4) ....................................... 1.39%** 1.33% 1.33% 1.40% 1.30%**
Ratio of net investment income to average net assets(3).. 4.90%** 5.17% 5.05% 5.37% 3.95%**
Ratio of net investment income to average net assets
applicable to common shares(5).......................... 5.80%** 6.05% 5.81% 6.79% 4.62%**
Portfolio turnover ...................................... 8% 39% 35% 47% 21%
Leverage analysis:
Value of preferred shares outstanding (000 omitted) ..... $ 15,000 $ 15,000 $ 15,000 $ 15,000 $ 15,000
Net asset coverage per share of preferred shares,
end of period .......................................... $132,577 $127,826 $126,821 $124,728 $122,616
Liquidation value per share of preferred shares(6)....... $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000
</TABLE>
<PAGE>
- ------------------
* Commencement of operations
** Annualized.
(1) For federal income tax purposes, all of the net investment income
distributions were derived from interest on securities exempt from federal
income tax.
(2) Total investment return is calculated assuming a purchase of common stock on
the opening of the first day and a sale on the closing of the last day of
each period reported. Dividends and distributions, if any, are assumed for
the purposes of this calculation, to be reinvested at prices obtained under
the Fund's dividend reinvestment plan. Generally, total investment return
based on net asset value will be higher than total investment return based
on market value in periods where there is an increase in the discount or a
decrease in the premium of the market value to the net asset value from the
beginning to the end of such periods. Conversely, total investment return
based on net asset value will be lower than total investment return based on
market value in periods where there is a decrease in the discount or an
increase in the premium of the market value to the net asset value from the
beginning to the end of such periods. The total investment returns
calculated based on market value and net asset value for a period of less
than one year have not been annualized.
(3) Ratios calculated on the basis of expenses and net investment income
applicable to both the common and preferred shares relative to the average
net assets of common and preferred shareholders.
(4) Beginning in the year ended March 31, 1996, the expense ratio reflects the
effect of gross expenses attributable to earnings credits on uninvested cash
balances received by the Fund. Prior period expense ratios have not been
adjusted.
(5) Ratio reflects total net investment income less dividends paid to preferred
shareholders from net investment income dividend by average net assets
applicable to common stock.
(6) Excluding any accumulated but unpaid dividends.
See accompanying notes
1997 semi-annual report 31
<PAGE>
THE DELAWARE-VOYAGEUR FUNDS
STATEMENT OF OPERATIONS
SIX MONTHS ENDED SEPTEMBER 30, 1997
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FLORIDA COLORADO
MINNESOTA MINNESOTA MINNESOTA ARIZONA INSURED INSURED
MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL
INCOME INCOME INCOME INCOME INCOME INCOME
FUND, INC. FUND II, INC. FUND III, INC. FUND, INC. FUND FUND, INC.
---------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest ......................... $1,755,361 $ 4,712,524 $1,131,890 $1,898,508 $1,540,383 $3,015,555
---------- ----------- ---------- ---------- ---------- ----------
EXPENSES:
Management fees................... 117,392 325,443 78,632 135,877 109,912 203,085
Administration fees............... 50,000 122,041 29,487 50,954 41,217 81,138
Remarketing agent fees............ 25,000 75,000 18,750 31,250 25,000 51,285
Dividend disbursing,
transfer agent
and custodian fees
and expenses..................... 12,423 22,460 6,481 10,099 8,971 17,941
Professional fees................. 11,626 18,255 7,581 11,437 9,295 16,028
Directors'/Trustees' fees......... 2,646 5,014 1,203 2,162 1,745 6,034
Other............................. 28,417 64,010 26,705 36,312 32,333 26,798
---------- ----------- ---------- ---------- ---------- ----------
Total Expenses.................... 247,504 632,223 168,839 278,091 228,473 402,309
NET INVESTMENT INCOME............. 1,507,857 4,080,301 963,051 1,620,417 1,311,910 2,613,246
---------- ----------- ---------- ---------- ---------- ----------
NET REALIZED AND UNREALIZED
GAIN ON INVESTMENTS:
Net realized gain (loss)
on investments.................... (102) (98,936) 51,042 9,941 47,577 36,196
Net change in unrealized
appreciation of investments...... 1,823,438 6,443,752 1,366,322 2,669,811 2,598,470 4,489,176
---------- ----------- ---------- ---------- ---------- ----------
NET REALIZED AND UNREALIZED
GAIN ON INVESTMENTS............... 1,823,336 6,344,816 1,417,364 2,679,752 2,646,047 4,525,372
---------- ----------- ---------- ---------- ---------- ----------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS......... $3,331,193 $10,425,117 $2,380,415 $4,300,169 $3,957,957 $7,138,618
========== =========== ========== ========== ========== ==========
</TABLE>
See accompanying notes
32 1997 semi-annual report
<PAGE>
THE DELAWARE-VOYAGEUR FUNDS
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MINNESOTA MUNICIPAL MINNESOTA MUNICIPAL MINNESOTA MUNICIPAL
INCOME FUND I, INC. INCOME FUND II, INC. INCOME FUND III, INC.
---------------------------------------------------------------------------------
SIX MONTHS SIX MONTHS SIX MONTHS
ENDED ENDED ENDED
9/30/97 YEAR ENDED 9/30/97 YEAR ENDED 9/30/97 YEAR ENDED
(UNAUDITED) 3/31/97 (UNAUDITED) 3/31/97 (UNAUDITED) 3/31/97
<S> <C> <C> <C> <C> <C> <C>
INCREASE IN NET ASSETS FROM OPERATIONS:
Net investment income ........................... $ 1,507,857 $ 2,753,370 $ 4,080,301 $ 8,173,422 $ 963,051 $ 1,978,163
Net realized gain (loss) on investments ......... (102) 101,820 (98,936) (122,342) 51,042 (485,545)
Net change in unrealized appreciation
of investments ................................. 1,823,438 374,814 6,443,752 732,771 1,366,322 752,657
----------- ----------- ----------- ----------- --------- -----------
Net increase in net assets resulting from
operations ..................................... 3,331,193 3,230,004 10,425,117 8,783,851 2,380,415 2,245,275
----------- ----------- ----------- ----------- --------- -----------
DISTRIBUTIONS TO:
Common shareholders from net investment income .. (1,206,536) (2,413,073) (2,964,337) (5,860,687) (695,840) (1,374,458)
Preferred shareholders from net investment income (342,752) (702,068) (1,110,871) (2,106,108) (259,359) (569,220)
----------- ----------- ----------- ----------- --------- -----------
(1,549,288) (3,115,141) (4,075,208) (7,966,795) (955,199) (1,943,678)
----------- ----------- ----------- ----------- --------- -----------
NET INCREASE IN NET ASSETS ...................... 1,781,905 114,863 6,349,909 817,056 1,425,216 301,597
NET ASSETS:
Beginning of period ............................. 57,544,191 57,429,328 158,572,049 157,754,993 38,347,900 38,046,303
=========== =========== ============ ============ =========== ===========
End of period ................................... $59,326,096 $57,544,191 $164,921,958 $158,572,049 $39,773,116 $38,347,900
=========== =========== ============ ============ =========== ===========
ARIZONA MUNICIPAL FLORIDA INSURED MUNICIPAL COLORADO INSURED MUNICIPAL
INCOME FUND, INC. INCOME FUND INCOME FUND, INC.
-------------------------------------------------------------------------------------
SIX MONTHS SIX MONTHS SIX MONTHS
ENDED ENDED ENDED
9/30/97 YEAR ENDED 9/30/97 YEAR ENDED 9/30/97 YEAR ENDED
(UNAUDITED) 3/31/97 (UNAUDITED) 3/31/97 (UNAUDITED) 3/31/97
INCREASE IN NET ASSETS FROM OPERATIONS:
Net investment income...................... $ 1,620,417 $ 3,219,712 $ 1,311,910 $ 2,625,869 $ 2,613,246 $ 5,058,004
Net realized gain (loss) on investments.... 9,941 (169,429) 47,577 55,988 36,196 (1,395,905)
Net change in unrealized appreciation/
depreciation of investments............... 2,669,811 192,773 2,598,470 (263,919) 4,489,176 1,100,880
----------- ----------- ----------- ----------- ----------- -----------
Net increase in net assets resulting from
operations................................ 4,300,169 3,243,056 3,957,957 2,417,938 7,138,618 4,762,979
----------- ----------- ----------- ----------- ----------- -----------
DISTRIBUTIONS TO:
Common shareholders from net investment
income.................................... (1,151,875) (2,275,793) (917,409) (1,812,111) (1,777,636) (3,509,923)
Preferred shareholders from net investment
income.................................... (416,835) (854,450) (340,984) (702,830) (681,492) (1,409,304)
----------- ----------- ----------- ----------- ----------- -----------
(1,568,710) (3,130,243) (1,258,393) (2,514,941) (2,459,128) (4,919,227)
----------- ----------- ----------- ----------- ----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS...... 2,731,459 112,813 2,699,564 (97,003) 4,679,490 (156,248)
NET ASSETS:
Beginning of period........................ 66,102,457 65,989,644 53,109,947 53,206,950 105,686,712 105,842,960
----------- ----------- ----------- ----------- ----------- -----------
End of period.............................. $68,833,916 $66,102,457 $55,809,511 $53,109,947 $110,366,202 $105,686,712
=========== =========== =========== =========== ============ ============
</TABLE>
See accompanying notes
1997 semi-annual report 33
<PAGE>
The Delaware-Voyageur Funds -
Notes to Financial Statements September 30, 1997
(Unaudited)
- --------------------------------------------------------------------------------
Delaware-Voyageur Minnesota Municipal Income Fund, Inc. (formerly Voyageur
Minnesota Municipal Income Fund, Inc.) ("Minnesota Municipal Fund");
Delaware-Voyageur Minnesota Municipal Income Fund II, Inc. (formerly Voyageur
Minnesota Municipal Income Fund II, Inc.), ("Minnesota Municipal II Fund");
Delaware-Voyageur Minnesota Municipal Income Fund III, Inc. (formerly
Voyageur Minnesota Municipal Income Fund III, Inc.) (Minnesota Municipal III
Fund"); Delaware-Voyageur Arizona Municipal Income Fund, Inc. (formerly
Voyageur Arizona Municipal Income Fund, Inc.) ("Arizona Municipal Income
Fund"); Delaware-Voyageur Florida Insured Municipal Income Fund (formerly
Voyageur Florida Insured Municipal Income Fund) ("Florida Insured Municipal
Fund") and Delaware-Voyageur Colorado Insured Municipal Income Fund, Inc.
(formerly Voyageur Colorado Insured Municipal Income Fund Inc.) ("Colorado
Insured Municipal Fund") (collectively referred to as the "Funds") are
registered under the Investment Company Act of 1940 (as amended) as
closed-end management investment companies. The Minnesota Municipal II,
Florida Insured Municipal and Arizona Municipal Funds are registered as
diversified funds. The Minnesota Municipal, Minnesota Municipal III and
Colorado Insured Municipal Funds are registered as non-diversified funds. The
Funds' shares trade on the American Stock Exchange.
The investment objective of each Fund is to provide high current income
exempt from federal income tax and from the personal income tax of its state,
if any, consistent with the preservation of capital. Florida Insured
Municipal Fund will generally seek investments that will enable its shares to
be exempt from Florida's intangible personal property tax. Each Fund will
seek to achieve its investment objective by investing substantially all of
its net assets in investment grade, tax-exempt municipal obligations of its
respective state.
1. Fund Reorganization
On April 30, 1997, Lincoln National Corporation ("LNC") acquired Voyageur
Fund Manager Inc.'s ("Voyageur") parent, Dougherty Financial Group, Inc.
("DFG") pursuant to an agreement and plan of merger dated January 15, 1997,
in which LNC would acquire DFG including the mutual fund investment advisory
business of DFG conducted by Voyageur. Upon completion of the acquisition,
Delaware Management Company, Inc. ("DMC") became the Investment Manager to
the Funds.
2. Significant Accounting Policies
The following accounting policies are in accordance with generally accepted
accounting principles and are consistently followed by the Funds.
Security Valuation - Long-term debt securities are valued by an independent
pricing service and such prices are believed to reflect the fair value of
such securities. Money market instruments having less than 60 days to
maturity are valued at amortized cost which approximates market value. Other
securities and assets for which market quotations are not readily available
are valued at fair value as determined in good faith by or under the
direction of the Fund's Board of Directors/Trustees.
<PAGE>
Federal Income Taxes - Each Fund intends to continue to qualify as a
regulated investment company and make the requisite distributions to
shareholders. Accordingly, no provision for federal income taxes has been
made in the financial statements. Income and capital gain distributions are
determined in accordance with federal income tax regulations which may differ
from generally accepted accounting principles.
Other - Expenses common to all Funds within the Delaware-Voyageur Funds are
allocated amongst the Funds on the basis of average net assets. Security
transactions are recorded on the date the securities are purchased or sold
(trade date). Costs used in calculating realized gains and losses on the sale
of investment securities are those of the specific securities sold. Interest
income is recorded on the accrual basis. Original issue discounts are
accreted to interest income over the lives of the respective securities. The
Funds intend to pay monthly dividends from net investment income. Capital
gains, if any, are distributed annually.
Use of Estimates - The preparation of financial statements in conformity with
generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities at the date of the financial statements and the reported amounts
of revenues and expenses during the reporting period. Actual results could
differ from those estimates.
3. Investment Management, Administration and Transactions with Affiliates
Commencing May 1, 1997, and in accordance with the terms of their respective
Investment Management Agreements, the Funds pay DMC, the Investment Manager
of each Fund an annual fee of .40% which is calculated daily based upon the
average daily net assets of each Fund, including assets attributable to any
preferred stock that may
be outstanding.
Prior to May 1, 1997, the Funds had an Investment Advisory and Management
Agreement with Voyageur. Voyageur received a fee for its Investment Advisory
and Management services based upon the average daily net assets of the Funds,
including assets attributable to any preferred stock that was outstanding, at
an annual rate of 0.40% for each Fund.
The Funds have Administrative Agreements with Mitchell Hutchins Asset Management
Inc. and Princeton Administrators, L.P. (on Colorado Insured Municipal Fund
only) (the "Administrators").
The Administration Agreements provide the Administrators with a monthly fee
computed at an annual rate of .15% of each Fund's average daily net assets,
including assets attributable to any preferred stock that may be outstanding.
Certain Funds have minimum annual fees payable to the Administrators. The
Minnesota Municipal Fund paid the minimum fee for the six months ended
September 30, 1997.
34 1997 semi-annual report
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
On September 30, 1997, the Funds had payables to affiliates as follows:
Minnesota Minnesota Minnesota
Municipal Municipal II Municipal III
Fund Fund Fund
--------- ------------ -------------
Investment Management fee
payable to DMC. .............. $98,517 $273,476 $66,041
Arizona Florida Colorado
Municipal Insured Insured
Income Municipal Municipal
Fund Fund Fund
--------- ---------- ---------
Investment Management fee
payable to DMC. .............. $114,173 $92,454 $172,761
Certain officers of DMC are officers, Directors/Trustees and/or employees of
the Funds. These officers, Directors/Trustees and employees are not
compensated by the Funds.
4. Investments
During the six months ended September 30, 1997, the Funds made purchases and
sales of investment securities other than U.S. government securities and
temporary cash investments as follows:
Minnesota Minnesota Minnesota
Municipal Municipal II Municipal III
Fund Fund Fund
--------- ------------ -------------
Purchases ................. $0 $5,764,440 $3,105,451
Sales ..................... $135,000 $6,100,360 $3,209,455
Arizona Florida Colorado
Municipal Insured Insured
Income Municipal Municipal
Fund Fund Fund
---------- ---------- -----------
Purchases ................. $5,013,083 $2,334,369 $6,775,995
Sales ..................... $4,854,649 $1,909,075 $6,205,927
At September 30, 1997, the aggregate unrealized appreciation (depreciation)
of securities for federal income tax purposes for each Fund were as follows:
Minnesota Minnesota Minnesota
Municipal Municipal II Municipal III
Fund Fund Fund
--------- ------------ -------------
Aggregate unrealized
appreciation ............... $3,820,172 $7,281,711 $2,174,352
Aggregate unrealized
depreciation ............... - - -
---------- ---------- ----------
Net unrealized appreciation . $3,820,172 $7,281,711 $2,174,352
---------- ---------- ----------
Arizona Florida Colorado
Municipal Insured Insured
Income Municipal Municipal
Fund Fund Fund
--------- --------- ---------
Aggregate unrealized
appreciation................ $3,466,440 $2,481,431 $4,013,146
Aggregate unrealized
depreciation................ - - $ 2,738
---------- ---------- ----------
Net unrealized
appreciation................ $3,466,440 $2,481,431 $4,010,108
---------- ---------- ----------
<PAGE>
For federal income tax purposes, as of March 31, 1997, Minnesota Municipal II
Fund, Minnesota Municipal III Fund, Arizona Municipal Fund, Florida Insured
Municipal Fund and Colorado Insured Municipal Fund had capital loss
carryforwards of $2,612,098, $2,889,387, $895,746, $467,062 and $1,609,433,
respectively, that will expire in years 2002 through 2005 if not offset by
subsequent realized capital gains.
5. Capital Stock
Pursuant to their articles of incorporation, Minnesota Municipal Fund,
Minnesota Municipal II Fund, Minnesota Municipal III Fund, Arizona Municipal
Fund and Colorado Insured Municipal Fund each have 200 million shares of
$0.01 par value common shares authorized. Florida Insured Municipal has been
authorized to issue an unlimited amount of $0.01 par value common shares.
For the six months ended September 30, 1997 and the year ended March 31,
1997, the Funds did not have any transactions in common shares.
The Funds each have one million shares of $0.01 par value preferred shares
authorized, except for Florida Insured Municipal Fund which has an unlimited
amount of $0.01 par value preferred shares authorized. Under resolutions
adopted by the Board of Directors/Trustees, Minnesota Municipal Fund is
allowed to issue up to 400 preferred shares, of which the entire amount was
issued on August 6, 1992. On May 14, 1993, Minnesota Municipal II Fund,
Arizona Municipal Fund and Florida Insured Municipal Fund issued 1,200, 500
and 400 preferred shares, respectively. On December 10, 1993, Minnesota
Municipal III Fund issued 300 preferred shares and on September 23, 1993,
Colorado Insured Municipal Fund issued 800 preferred shares. The preferred
shares have a liquidation preference of $50,000 per share plus any amount
equal to accumulated but unpaid dividends.
Dividends for the outstanding preferred shares of each Fund are cumulative at
a rate established at the initial public offering and are typically reset
every 28 days based on the results of an auction. Dividends rates (adjusted
for any capital gain distributions) ranged from 3.60% to 3.80% on Minnesota
Municipal Fund, from 3.55% to 3.90% on Minnesota Municipal II Fund, from
3.58% to 3.85% on Minnesota Municipal III Fund, from 3.20% to 3.80% on
Arizona Municipal Fund, from 3.60% to 3.85% on Florida Insured Municipal Fund
and from 3.35% to 3.70% on Colorado Insured Municipal Fund during the period
ended September 30, 1997. Smith Barney Inc. and Merrill Lynch, Pierce, Fenner
& Smith Incorporated (on Colorado Insured Municipal Fund only), as the
remarketing agents, receive an annual fee from each of the Funds of .25% of
the average amount of preferred stock outstanding.
Under the 1940 act, the Funds may not declare dividends or make other
distributions on common shares or purchase any such shares if, at the time of
the declaration, distribution or purchase, asset coverage with respect to the
outstanding preferred stock is less than 200%. The preferred shares are
redeemable at the option of the Funds, in whole or in part, on any dividend
payment date at $50,000 per share plus any accumulated but unpaid dividends
whether or not declared. The preferred shares are also subject to mandatory
redemption at $50,000 per share plus any accumulated but unpaid dividends,
whether or not declared, if certain requirements relating to the composition
of the assets and liabilities of each Fund is not satisfied. The holders of
preferred shares have voting rights equal to the holders of common shares
(one vote per share) and will vote together with holders of common shares as
a single class. However, holders of preferred shares are also entitled to
elect two of each Fund's
1997 semi-annual report 35
<PAGE>
Directors/Trustees. In addition, the 1940 Act requires that along with approval
by shareholders that might otherwise be required, the approval of the holders of
a majority of any outstanding preferred shares, voting separately as a class
would be required to (a) adopt any plan of reorganization that would adversely
affect the preferred shares, and (b) take any action requiring a vote of
security holders pursuant to Section 13(a) of the 1940 Act, including, among
other things, changes in each of the Funds'subclassification as a closed-end
investment company or changes in their fundamental investment restrictions.
6. Concentration of Credit Risk
The Funds concentrate their investments in limited geographical areas. The
value of these investments may be adversely affected by new legislation
within the state, regional or local economic conditions, and differing levels
of supply and demand for municipal bonds. Many municipalities insure
repayment for their obligations. Although bond insurance reduces the risk of
loss due to default by an issuer, such bonds remain subject to the risk that
the market may fluctuate for other reasons, and there is no assurance that
the insurance company will meet its obligations. These securities have been
identified in the Statement of Net Assets.
The Funds may invest up to 15% of its total assets in illiquid securities
which may include securities with contractual restrictions on resale,
securities exempt from registration under Rule 144A of the Securities Act of
1933, as amended, and other securities which may not be readily marketable.
The relative illiquidity of some of these securities may adversely affect the
Funds' ability to dispose of such securities in a timely manner and at a fair
price when it is necessary to liquidate such securities. These securities, if
any, have been identified in the Statement of Net Assets.
- --------------------------------------------------------------------------------
Dividend Reinvestment Plans
Each Fund offers an automatic dividend reinvestment program. If Fund shares are
registered in your name and you are not already reinvesting dividends but would
like to do so, contact the dividend plan agent, Norwest Bank, Minnesota, NA at
1.800.468.9716. You will be asked to put your request in writing. If you have
shares registered in "street" name, contact your financial adviser or the
broker/dealer holding the shares.
Under the Funds' current policies, all distributions of net
investment income and capital gains to common stock shareholders are
automatically reinvested in additional shares unless shareholders elect to
receive all dividends and other distributions in cash paid by check mailed
directly to the shareholders by the dividend plan agent.
After each Fund declares a dividend or determines to make a capital
gains distribution, the plan agent will, as agent for the participants,
receive the cash payment and use it to buy shares in the open market on the
American Stock Exchange. The Funds will not issue any new shares in
connection with the plan.
- --------------------------------------------------------------------------------
36 1997 SEMI-ANNUAL REPORT
<PAGE>
THIS SEMI-ANNUAL REPORT IS FOR THE INFORMATION OF DELAWARE-VOYAGEUR CLOSED-END
MUNICIPAL BOND FUNDS' SHAREHOLDERS. It sets forth details about charges,
expenses, investment objectives and operating policies of the Funds. You should
read it carefully before you invest. The return and principal value of an
investment in the Funds will fluctuate so that shares, when redeemed, may be
worth more or less than their original cost.
Board of Directors
WAYNE A. STORK
Chairman
Delaware Group of Funds
Philadelphia, PA
JEFFREY J. NICK
President and Chief Executive Officer
Delaware Group of Funds
Philadelphia, PA
WALTER P. BABICH+
Board Chairman, Citadel Constructors, Inc.
King of Prussia, PA
ANTHONY D. KNERR+
Consultant, Anthony Knerr & Associates
New York, NY
ANN R. LEVEN+
Treasurer, National Gallery of Art
Washington, DC
W. THACHER LONGSTRETH
City Councilman
Philadelphia, PA
THOMAS F. MADISON
President and Chief Executive Officer
MLM Partners
Minneapolis, Minn.
CHARLES E. PECK
Secretary/Treasurer, Enterprise Homes, Inc.
Fredericksburg, VA
+Audit Committee Member
<PAGE>
Executive Officers
WAYNE A. STORK
Chairman
Delaware Group of Funds
Philadelphia, PA
JEFFREY J. NICK
President and Chief Executive Officer
Delaware Group of Funds
Philadelphia, PA
RICHARD G. UNRUH, JR.
Executive Vice President
Delaware Group of Funds
Philadelphia, PA
PAUL E. SUCKOW
Executive Vice President/Chief Investment Officer
Fixed-Income
Delaware Group of Funds
Philadelphia, PA
DAVID K. DOWNES
Executive Vice President/Chief Operating Officer/
Chief Financial Officer
Delaware Group of Funds
Philadelphia, PA
GEORGE M. CHAMBERLAIN. JR
Senior Vice President/Secretary/General Counsel
Delaware Group of Funds
Philadelphia, PA
JOSEPH H. HASTINGS
Senior Vice President/Corporate Controller
Delaware Group of Funds
Philadelphia, PA
MICHAEL P. BISHOF
Senior Vice President/Treasurer
Delaware Group of Funds
Philadelphia, PA
directors & officers
1997 semi-annual report
<PAGE>
THE DELAWARE GROUP INCLUDES OPEN-END AND CLOSED-END FUNDS WITH A WIDE RANGE OF
INVESTMENT OBJECTIVES. STOCK FUNDS, INCOME FUNDS, TAX-FREE FUNDS, MONEY MARKET
FUNDS AND CLOSED-END FUNDS GIVE INVESTORS THE ABILITY TO CREATE A PORTFOLIO
THAT FITS THEIR PERSONAL FINANCIAL GOALS. FOR A PROSPECTUS OF ANY OPEN-END
DELAWARE GROUP FUND, CONTACT YOUR FINANCIAL ADVISER OR CALL THE DELAWARE GROUP
AT 1.800.523.4640. READ THE PROSPECTUS CAREFULLY BEFORE INVESTING. NOTICE IS
HEREBY GIVEN IN ACCORDANCE WITH SECTION 23(C) OF THE INVESTMENT COMPANY ACT OF
1940 THAT THE FUND MAY PURCHASE AT MARKET PRICES FROM TIME TO TIME SHARES OF ITS
COMMON STOCK IN THE OPEN MARKET.
PRINCIPAL OFFICE OF
THE FUND
1818 Market Street
Philadelphia, PA 19103
INVESTMENT MANAGER
Delaware Management Company, Inc.
Philadelphia, PA
INDEPENDENT AUDITORS
Ernst & Young LLP
2001 Market Street
Philadelphia, PA
REGISTRAR AND STOCK
TRANSFER AGENT
Norwest Bank Minnesota, NA
P.O. Box 64854
St. Paul, Minnesota 55164-0854
1.800.468.9716
NUMBER OF RECORDHOLDERS
AS OF SEPTEMBER 30, 1997:
Minnesota Municipal Income Fund I 536
Minnesota Municipal Income Fund II 906
Minnesota Municipal Income Fund III 227
Arizona Municipal Income Fund 191
Florida Insured
Municipal Income Fund 339
Colorado Insured
Municipal Income Fund 302
FOR SECURITIES DEALERS
1.800.362.7500
FOR FINANCIAL INSTITUTIONS
REPRESENTATIVES
1.800.659.2265
Be sure to consult your financial adviser when making investments. Mutual
funds can be a valuable part of your financial plan; however, shares of the
Funds are not FDIC or NCUSIF insured, are not guaranteed by any bank or any
credit union, and involve investment risk, including the possible loss of the
principal amount invested. Shares of the Funds are not bank or credit union
deposits.
DELAWARE
GROUP
- --------
Copy Rights Delaware Distributors, L.P.
Printed in the USA on
recycled paper
(307)
VOY-CESA[9/97]PP11/97
