WISCONSIN TAX FREE FUND
SEMI - ANNUAL REPORT
Dated June 30, 1995
Voyageur offers a family of mutual funds, each with an individual objective
stated in its prospectus. Investment objectives of the funds range from high
current income to long-term capital appreciation. Exchange privileges allow you
to change your investment between Voyageur Funds as your objectives or market
conditions change.
VOYAGEUR TAX FREE FUNDS seek high current income free from both Federal income
taxes and state income taxes (where applicable). The Funds invest in investment
grade municipal bonds.
Voyageur ARIZONA Tax Free Fund Voyageur KANSAS Tax Free Fund
Voyageur CALIFORNIA Tax Free Fund Voyageur MINNESOTA Tax Free Fund
Voyageur COLORADO Tax Free Fund Voyageur NEW MEXICO Tax Free Fund
Voyageur FLORIDA Tax Free Fund Voyageur NORTH DAKOTA Tax Free Fund
Voyageur IDAHO Tax Free Fund Voyageur UTAH Tax Free Fund
Voyageur IOWA Tax Free Fund Voyageur WISCONSIN Tax Free Fund
VOYAGEUR INSURED TAX FREE FUNDS seek high current income free from both Federal
income taxes and state income taxes (where applicable) with the added safety of
an insured portfolio. The Funds invest in insured municipal bonds.
<TABLE>
<S> <C>
Voyageur ARIZONA Insured Tax Free Fund Voyageur MISSOURI Insured Tax Free Fund
Voyageur CALIFORNIA Insured Tax Free Fund Voyageur NATIONAL Insured Tax Free Fund
Voyageur FLORIDA Insured Tax Free Fund Voyageur OREGON Insured Tax Free Fund
Voyageur MINNESOTA Insured Fund Voyageur WASHINGTON Insured Tax Free Fund
</TABLE>
VOYAGEUR LIMITED TERM FUNDS seek to preserve original investment principal while
providing income free from both Federal income taxes and state income taxes
(where applicable). The Funds invest in intermediate term investment grade
municipal bonds.
<TABLE>
<S> <C>
Voyageur FLORIDA Limited Term Tax Free Fund Voyageur MINNESOTA Limited Term Tax Free Fund
</TABLE>
VOYAGEUR EQUITY FUNDS seek long term capital appreciation by investing in common
stocks.
Voyageur AGGRESSIVE GROWTH Fund Voyageur INTERNATIONAL Equity Fund
Voyageur GROWTH Stock Fund
VOYAGEUR INCOME FUNDS seek high current income from investments issued,
guaranteed or otherwise backed by the full faith and credit of the U.S.
Government.
Voyageur U.S. GOVERNMENT SECURITIES Fund
VOYAGEUR CASH TRUST SERIES MONEY MARKET FUNDS seek high current income,
principal protection and liquidity by investing in money market instruments.
Voyageur CALIFORNIA MUNICIPAL CASH Series Voyageur MUNICIPAL CASH Series
Voyageur FLORIDA MUNICIPAL CASH Series Voyageur OHIO MUNICIPAL CASH Series
Voyageur GOVERNMENT CASH Series Voyageur PRIME CASH Series
Voyageur MINNESOTA MUNICIPAL CASH Series Voyageur TREASURY CASH Series
For more complete information regarding the investment objectives, fees and
expenses of the Funds, please obtain a prospectus from your Investment
Representative or from Voyageur, 90 South Seventh Street, Suite 4400,
Minneapolis, MN 55402-4115; (612) 376-7044 (local); 800-525-6584 (MKTG).
Dear Shareholder:
The municipal bond market's dramatic rebound in the first half of 1995 caused
many mutual funds to recover much of the ground they lost in last year's bear
market. This strong rally was evidenced by the Fund's performance. I am pleased
to present a considerably brighter picture of the municipal bond market and the
Fund's performance than was presented in my last letter to you.
The results below summarize the Fund's net asset value, dividends paid and total
net assets for the reporting period.
<TABLE>
<CAPTION>
NET ASSET NET ASSET TOTAL NET
VALUE VALUE DIVIDENDS ASSETS
BEGINNING END PAID PER END OF
PERIOD OF PERIOD OF PERIOD SHARE PERIOD (000'S)
<S> <C> <C> <C> <C>
Period ended June 30, 1995:
Class A Shares $8.74 $9.37 $0.25 $25,146
Class B Shares 9.39* 9.37 0.07 233
Class C Shares 9.33** 9.38 0.10 46
</TABLE>
* Net asset value at April 22, 1995 (commencement of operations)
** Net asset value at March, 28, 1995 (commencement of operations)
In the pages that follow, the Fund's Manager will update you on how the economy
and the municipal bond market affected the Fund during this reporting period.
The manager will discuss the Fund's performance and some strategies used to
maximize performance.
We assert that a long-range view of investing provides the greatest benefit to
our shareholders. We encourage you to maintain a long-range view of investing;
we believe that you will derive the greatest benefit by doing so.
Thank-you for investing with Voyageur.
Sincerely,
John G. Taft
President
Voyageur Wisconsin Tax Free Fund
DISCUSSION OF FUND MANAGEMENT BY ELIZABETH H. HOWELL, PORTFOLIO MANAGER
Ms. Howell is Senior Vice President and Tax Exempt Portfolio Manager for the
Voyageur Wisconsin Tax Free Fund. She has over ten years experience as a
securities analyst and portfolio manager.
The municipal market rally caused the Wisconsin Tax Free Fund to post sharply
positive total return performance for the reporting period. The Fund had a total
investment return of 9.98%. We attribute the Fund's performance to several
factors. First, the Fund's longer duration and longer average maturity captured
superior price appreciation in the declining interest rate environment. At the
end of the reporting period, the Fund's duration was 9.1 years and the average
maturity was 15.1 years. Longer maturity bonds are more sensitive to changes in
long term interest rates. Second, a majority of the bonds held low coupons
(5.50% and less). In a declining interest environment these low coupon
securities outperformed high coupon securities as these bonds (at a greater
discount to the market) are less likely to be called or refunded than high
coupon issues. Third, consistent with our strategy from last year, we continued
to hold and purchase bonds with good call protection to maintain the longer
duration in the portfolio. This allowed the Fund to take full advantage of the
declining rate environment in the first half of 1995. Finally, another factor
that contributed favorably to strong returns was the fact that we were fully
invested in long bonds. We achieved relatively stronger performance from owning
100% bonds and holding no cash in the portfolio.
We continue to adhere to buying high quality bonds for our tax free funds. We
expect this strategy will continue to provide favorable returns as we are
bullish on the bond market for the balance of the year. We believe that the
Voyageur Wisconsin Tax Free Fund is poised to take full advantage of the current
market conditions.
<TABLE>
<CAPTION>
VOYAGEUR WISCONSIN TAX FREE FUND
STATEMENT OF ASSETS AND LIABILITIES (UNAUDITED) JUNE 30, 1995
<S> <C>
ASSETS
Investments in securities (note 1) (identified cost: $25,667,716).......... $25,960,305
Cash in bank on demand deposit............................................. 585
Accrued interest receivable................................................ 432,040
Receivable for Fund shares sold............................................ 108,556
Organizational costs (note 4).............................................. 8,826
Total assets............................................................ 26,510,312
LIABILITIES
Dividends payable to shareholders.......................................... 27,501
Payable for investment securities purchased................................ 996,360
Payable for Fund shares redeemed........................................... 1,423
Other accrued expenses..................................................... 59,898
Total liabilities....................................................... 1,085,182
NET ASSETS APPLICABLE TO OUTSTANDING SHARES................................ $25,425,130
Represented by:
Capital Stock - $.01 par value (note 1)................................. $ 27,122
Additional paid-in capital.............................................. 25,828,033
Distributions in excess of net investment income (note 1)............... (6,104)
Accumulated net realized loss on investments............................ (716,510)
Unrealized appreciation of investments.................................. 292,589
TOTAL - REPRESENTING NET ASSETS APPLICABLE TO OUTSTANDING SHARES...... $25,425,130
Net assets applicable to outstanding Class A Shares........................ $25,146,170
Net assets applicable to outstanding Class B Shares........................ $ 233,189
Net assets applicable to outstanding Class C Shares........................ $ 45,771
SHARES OUTSTANDING AND NET ASSET VALUE PER SHARE:
Class A - Shares of Capital Stock outstanding: 2,682,449 (note 5)....... $9.37
Class B - Shares of Capital Stock outstanding: 24,888 (note 5).......... $9.37
Class C - Shares of Capital Stock outstanding: 4,879 (note 5)........... $9.38
</TABLE>
See accompanying notes to financial statements.
<TABLE>
<CAPTION>
VOYAGEUR WISCONSIN TAX FREE FUND
STATEMENT OF OPERATIONS (UNAUDITED) SIX MONTHS ENDED JUNE 30, 1995
<S> <C>
Investment income:
Interest............................................................... $ 691,728
Expenses (note 3):
Investment advisory and management fee.................................. 57,224
Dividend-disbursing, administrative and accounting services fees........ 31,676
Distribution fees - Class A............................................. 28,549
Distribution fees - Class B............................................. 356
Distribution fees - Class C............................................. 47
Printing, postage and supplies.......................................... 6,182
Audit and accounting fees............................................... 7,018
Legal fees.............................................................. 3,941
Directors' fees......................................................... 1,559
Registration fees....................................................... 5,282
Custodian fees.......................................................... 4,545
Amortization of organizational costs.................................... 765
Other................................................................... 1,567
Total expenses........................................................ 148,711
Less: Expenses waived, absorbed or reduced............................. (30,870)
Total net expenses ................................................... 117,841
Investment income - net............................................... 573,887
Realized and unrealized gain (loss) on investments:
Realized loss on security transactions (note 2)......................... (182,230)
Net change in unrealized appreciation or depreciation of investments.... 1,713,101
Net income on investments............................................. 1,530,871
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS....................... $2,104,758
</TABLE>
See accompanying notes to financial statements.
<TABLE>
<CAPTION>
VOYAGEUR WISCONSIN TAX FREE FUND
STATEMENTS OF CHANGES IN NET ASSETS (UNAUDITED)
SIX MONTHS FOUR MONTHS
ENDED ENDED
JUNE 30, 1995 DECEMBER 31,
(UNAUDITED) 1994 (NOTE 1)
<S> <C> <C>
Operations:
Investment income - net ................................................. $ 573,887 $ 350,233
Realized loss on investments - net ...................................... (182,230) (111,327)
Net change in unrealized appreciation or depreciation of investments .... 1,713,101 (1,024,537)
Net increase (decrease) in net assets resulting from operations ....... 2,104,758 (785,631)
Distributions to shareholders from:
Investment income - net:
Class A ............................................................... (605,281) (319,554)
Class B ............................................................... (1,328) N/A
Class C ............................................................... (177) N/A
Distributions in excess of net investment income:
Class A ............................................................... (6,061) --
Class B ............................................................... (32) N/A
Class C ............................................................... (11) N/A
Total distributions ................................................. (612,890) (319,554)
Capital share transactions (note 5): Proceeds from sale of shares:
Class A (note 3) ...................................................... 4,307,500 6,613,622
Class B ............................................................... 233,214 N/A
Class C ............................................................... 46,259 N/A
Net asset value of shares issued in reinvestment of net investment income
distributions and distributions in excess of net income:
Class A ............................................................. 390,357 136,785
Class B ............................................................. 1,151 N/A
Class C ............................................................. 150 N/A
Payments for redemption of shares:
Class A ............................................................... (1,212,146) (1,571,590)
Increase in net assets from capital share transactions .................. 3,766,485 5,178,817
Total increase in net assets .......................................... 5,258,353 4,073,632
Net assets at beginning of period .......................................... 20,166,777 16,093,145
Net assets at end of period (including distributions in excess of
net investment income of $6,104 and undistributed net investment
income of $32,899, respectively) ...................................... $ 25,425,130 $ 20,166,777
</TABLE>
See accompanying notes to financial statements.
VOYAGEUR WISCONSIN TAX FREE FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
(1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Voyageur Wisconsin Tax Free Fund (the Fund) is one of a series of funds
within Voyageur Mutual Funds, Inc. which is registered under the Investment
Company Act of 1940 (as amended) as a non-diversified, open-end management
investment company. The Fund offers Class A, Class B and Class C Shares. Class A
Shares are sold with a front-end sales charge. Class B Shares, first offered
March 1, 1995, may be subject to a contingent deferred sales charge and such
shares automatically convert to Class A after eight years. Class C Shares, first
offered on March 1, 1995, are not subject to a contingent deferred sales charge
or a front-end sales charge and have no conversion feature. All classes of
shares have identical voting, dividend, liquidation and other rights and the
same terms and conditions except that the level of distribution fees charged
differs between classes. Income, expenses (other than expenses incurred under
each class' Distribution Agreement) and realized and unrealized gains or losses
are allocated to each class of shares based upon relative net assets. Pursuant
to the articles of incorporation for Voyageur Mutual Funds, Inc., the Fund has
100 billion shares of authorized capital stock that may be issued. Effective
December 31, 1994, the Fund changed its fiscal year-end from August 31 to
December 31.
The significant accounting policies followed by the Fund are summarized as
follows:
Investments in Securities
Securities are valued at fair value as determined by the Board of Directors.
Determination of fair value involves, among other things, using pricing services
or prices quoted by independent brokers. Short-term securities are valued at
amortized cost which approximates market value.
Security transactions are accounted for on the date the securities are
purchased or sold. Securities gains and losses are calculated on the
identified-cost basis. Interest income, including level-yield amortization of
premium and original issue discount, is accrued daily.
The Fund concentrates its investments in limited geographical areas, and
therefore may have more credit risk related to the economic conditions of these
areas than a portfolio with broader geographical diversification.
Securities Purchased on a When-Issued Basis
Delivery and payment for securities which have been purchased by the Fund on
a forward commitment or when-issued basis can take place up to a month or more
after the transaction date. During this period, such securities are subject to
market fluctuations and the portfolio maintains, in a segregated account with
its custodian, assets with a market value equal to or greater than the amount of
its purchase commitments.
Federal Taxes
The Fund's policy is to comply with the requirements of the Internal Revenue
Code applicable to regulated investment companies and to distribute income to
shareholders in amounts that will avoid or minimize federal income or excise
taxes for the Fund. Net investment income and net realized gains (losses) for
the Fund may differ for financial statement and tax purposes primarily because
of losses deferred for tax purposes due to "wash sale" transactions. The
character of distributions made during the year from net investment income or
net realized gains may differ from their ultimate characterization for federal
income tax purposes. Also, due to the timing of dividend distributions, the
fiscal year in which amounts are distributed may differ from the year that the
income or realized gains (losses) were recorded by the Fund.
For federal income tax purposes, the Fund had capital loss carryovers of
$499,399, at December 31, 1994, that will expire in 2001 through 2003 if not
offset by subsequent capital gains. It is unlikely the Board of Directors will
authorize a distribution of any net realized capital gains until the available
capital loss carryover has been offset or expires.
Distributions to Shareholders
Dividends declared daily from net investment income are payable monthly in
cash or reinvested in additional shares of the Fund. Net short-term realized
capital gains, if any, may be paid throughout the year and net long-term
realized capital gains, when available, are distributed annually.
Illiquid Securities
At June 30, 1995, investments in securities for the Fund include issues
that are illiquid. The Fund currently limits investments in illiquid securities
to 15% of net assets, at market value, at the date of purchase. The aggregate
value of such securities at June 30, 1995, was $2,037,980 which represents 8.02%
of net assets.
(2) INVESTMENT SECURITIES TRANSACTIONS
Purchase cost and proceeds of sales of investment securities other than
short-term securities aggregated $6,805,762 and $2,561,347, respectively, for
the period ended June 30, 1995.
(3) EXPENSES
The Fund has an investment advisory and management fee agreement with
Voyageur Fund Managers, Inc. (Voyageur) under which Voyageur manages the Fund's
assets and provides other specified services. The fee for investment management
and advisory services is payable monthly and is based on the average daily net
assets of the Fund at the annual rate of .50%. In addition, the Fund will pay
most other operating expenses including directors' fees, registration fees,
printing of shareholder reports, legal and auditing services and other
miscellaneous expenses. Voyageur is obligated to pay all expenses of the Fund
(excluding distribution fees, insurance premiums on portfolio securities, taxes,
interest and brokerage commissions) which exceed 1% of average daily net assets
on an annual basis.
The Fund will also pay a fee to Voyageur for acting as the Fund's dividend
disbursing, administrative and accounting services agent. The fee is paid
monthly and is equal to the sum of $1.33 per shareholder account per month, a
fixed monthly fee ranging from $1,000 to $1,500 based on the level of the Fund's
average daily net assets and an annualized percentage of average daily net
assets at reducing rates from .11% to .02%. The Fund is also responsible for
reimbursing Voyageur's out-of pocket expense in connection with the performance
of dividend-disbursing, administrative and accounting services.
All classes of shares have a Distribution Agreement under Rule 12b-1 of the
Investment Company Act of 1940 with Voyageur Fund Distributors, Inc. (Fund
Distributors). Under this plan the Fund is obligated to pay Fund Distributors a
monthly distribution fee at an annual rate of .25% of the Fund's average daily
net assets of the Fund's Class A Shares and 1.00% of the Fund's average daily
net assets of the Class B and Class C Shares. Fund Distributors may waive all or
part of its distribution fee at its sole discretion. During the period ended
June 30, 1995, Fund Distributors voluntarily waived Class A distribution fees of
$26,232 and Class B distribution fees of $93. During the period ended June 30,
1995 the Fund earned $16,834 in credits on uninvested cash balances held at the
custodian. Of these credits $4,545 were used to reduce certain fees for various
custodial, pricing and accounting services provided by the custodian bank. The
remaining $12,289 of credits are included in interest income.
Sales charges paid by Class A shareholders were $93,362. Of this amount, Fund
Distributors received $16,653.
(4) ORGANIZATIONAL COSTS
Organizational costs are being amortized over 60 months on an inverse
acceleration (sum-of-the-years' digits) basis.
(5) CAPITAL SHARE TRANSACTIONS
Transactions in shares of capital stock during the periods ended June 30,
1995 and December 31, 1994 were as follows:
<TABLE>
<CAPTION>
CLASS A CLASS B CLASS C
PERIOD FROM PERIOD FROM
SIX MONTHS FOUR MONTHS APRIL 22, MARCH 28,
ENDED ENDED 1995* TO 1995* TO
JUNE 30, 1995 DECEMBER 31, JUNE 30, 1995 JUNE 30, 1995
(UNAUDITED) 1994 (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
Shares sold........................... 463,940 737,946 24,767 4,863
Shares issued for
reinvested distributions.......... 42,297 15,475 121 16
Shares redeemed....................... (130,763) (180,346) -- --
Increase in shares outstanding........ 375,474 573,075 24,888 4,879
</TABLE>
* Commencement of operations.
(6) FINANCIAL HIGHLIGHTS
Per share data (rounded to the nearest cent) for a share of capital stock
outstanding and selected information for each period are as follows:
<TABLE>
<CAPTION>
A SHARES B SHARES C SHARES
SIX MONTHS PERIOD FROM PERIOD FROM
ENDED FOUR MONTHS YEAR APRIL 22, MARCH 28,
JUNE 30, ENDED ENDED 1995* TO 1995* TO
1995 DECEMBER 31, AUGUST 31, JUNE 30, 1995 JUNE 30, 1995
(UNAUDITED) 1994 1994 (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C>
Net asset value:
Beginning of period ......................... $ 8.74 $ 9.28 $ 10.00 $ 9.39 $ 9.33
Operations:
Net investment income ....................... .24 .16 .49 .07 .10
Net realized and unrealized gain (loss)
on investments ............................ .64 (.55) (.72) (.02) .05
Total from operations ................... .88 (.39) (.23) .05 .15
Distributions to shareholders:
From net investment income .................. (.25) (.15)(a) (.49)(a) (.07) (.10)
Net asset value:
End of period ............................... $ 9.37 $ 8.74 $ 9.28 $ 9.37 $ 9.38
Total investment return (b) .................... 9.98% (4.12)% (2.40)% .50% 1.46%
Net assets at end of year (000's omitted) ...... $25,146 $20,167 $16,093 $ 233 $ 46
Ratios:
Ratio of expenses to average daily net assets 1.03%(d) .08%(d) .04% 1.74%(d) 1.99%(d)
Ratio of net investment income to
average daily net assets .................. 5.01%(d) 5.54%(d) 4.89% 3.73%(d) 3.74%(d)
Assuming no voluntary waivers and
reimbursements and expense reductions:
Expenses (c) ......................... 1.30%(d) 1.25%(d) 1.25% 2.00%(d) 1.99%(d)
Net investment income ................ 4.74%(d) 4.37%(d) 3.68% 3.47%(d) 3.74%(d)
Portfolio turnover rate (excluding
short-term securities) ...................... 15.97% 20.52% 86.26% 15.97% 15.97%
</TABLE>
* Commencement of operations.
NOTES TO FINANCIAL HIGHLIGHTS
(a) For federal income tax purposes, all of the net investment income
distributions were derived from interest on securities exempt from federal
income tax. For the year ended August 31, 1994, $.02 per share of the
distributions from net investment income were subject to state income tax.
(b) Total investment return is based on the change in net asset value of a
share during the period and assumes reinvestment of distributions at net
asset value and does not reflect the impact of a sales charge.
(c) Voyageur and Fund Distributors voluntarily waived or reimbursed expenses
during the periods presented. The annual contractual expense limit for the
Fund (excluding distribution fees, insurance premiums on portfolio
securities, taxes, interest and brokerage commissions) is 1% of average
daily net assets. The maximum distribution fee is .25% of the Fund's
average daily net assets for Class A Shares and 1.00% of the Fund's average
daily net assets for Class B and Class C Shares.
(d) Annualized.
<TABLE>
<CAPTION>
VOYAGEUR WISCONSIN TAX FREE FUND
INVESTMENTS IN SECURITIES (UNAUDITED) JUNE 30, 1995
PRINCIPAL
AMOUNT COUPON MARKET
($000) NAME OF ISSUER (d) RATE MATURITY VALUE (a)
(Percentage of each investment category relates to total net assets.)
MUNICIPAL BONDS (97.6%):
ESCROWED WITH U.S. GOVERNMENT BONDS (3.8%):
<S> <C> <C> <C> <C>
$700 Virgin Island Public Finance Authority Series A......................... 7.30% 10-01-18 $ 812,875
140 Wisconsin Housing Finance Authority (FHA Insured)....................... 6.10 12-01-17 142,570
955,445
GENERAL OBLIGATION (6.2%):
1,600 Puerto Rico Commonwealth (AMBAC Insured)................................ 5.85 07-01-15 1,590,000
UTILITY (6.8%):
1,000 Puerto Rico Electric Power Authority Series 94U......................... 6.00 07-01-14 990,720
285 Puerto Rico Telephone Authority Revenue Authority....................... 5.75 01-01-11 280,696
490 Puerto Rico Telephone Revenue Authority................................. 5.50 01-01-22 459,542
1,730,958
TRANSPORTATION (8.3%):
1,000 Guam Highway (Capital Guaranty Insured)................................. 6.30 05-01-12 1,033,750
900 Puerto Rico Commonwealth Highway & Transportation....................... 5.25 07-01-21 795,573
300 Puerto Rico Highway Revenue Series W.................................... 5.50 07-01-15 282,600
2,111,923
INDUSTRIAL (25.7%):
200 Hartford CDA Quad Graphics Revenue...................................... 5.90 12-01-06 206,156
240 Hartford CDA Quad Graphics Revenue...................................... 6.15 12-01-09 246,163
1,500 Madison CDA Community Center............................................ 6.10 03-01-10 1,571,250
2,000 Milwaukee Goodwill Industries........................................... 6.35(e) 10-01-09 2,037,980
1,100 Puerto Rico Pepsico Project Series A.................................... 6.25 11-15-13 1,128,083
250 Two Rivers Architectural Forest Products................................ 6.35 12-15-12 256,465
1,080 West Allis Poblocki Investment.......................................... 5.90 05-01-03 1,089,785
6,535,882
HEALTH CARE (18.1%):
200 Kaukauna Housing Authority.............................................. 6.10 09-01-07 201,940
1,000 Puerto Rico Ind Hosp Auxilio (MBIA Insured)............................. 6.25 07-01-24 1,025,000
305 Sheboygan County Housing Revenue - Rocky Knoll Health Center Project.... 5.15 12-01-10 287,340
250 Sheboygan County Housing Revenue - Rocky Knoll Health Center Project.... 5.20 12-01-11 235,003
355 Sheboygan County Housing Revenue - Rocky Knoll Health Center Project.... 5.20 12-01-12 331,097
105 Sheboygan County Housing Revenue - Rocky Knoll Health Center Project.... 5.25 12-01-13 98,097
100 Sheboygan County Housing Revenue - Rocky Knoll Health Center Project.... 5.25 12-01-15 92,676
100 Sheboygan County Housing Revenue - Rocky Knoll Health Center Project.... 5.30 12-01-16 92,926
200 Sheboygan County Housing Revenue - Rocky Knoll Health Center Project.... 5.30 12-01-17 185,178
195 Sheboygan County Housing Revenue - Rocky Knoll Health Center Project.... 5.30 12-01-18 180,012
395 Sheboygan County Housing Revenue - Rocky Knoll Health Center Project.... 5.30 12-01-19 363,570
65 Superior Memorial Hospital (FHA Insured)................................ 5.50 05-01-06 66,381
300 Superior Memorial Hospital (FHA Insured)................................ 5.50 11-01-06 306,375
100 Superior Memorial Hospital (FHA Insured)................................ 5.60 05-01-07 102,125
230 Superior Memorial Hospital (FHA Insured)................................ 5.60 11-01-07 234,887
225 Superior Memorial Hospital (FHA Insured)................................ 5.65 05-01-08 228,937
150 Superior Memorial Hospital (FHA Insured)................................ 5.65 11-01-08 152,625
160 Superior Memorial Hospital (FHA Insured)................................ 5.70 11-01-09 162,200
250 Superior Memorial Hospital (FHA Insured)................................ 5.80 05-01-10 254,375
4,600,744
HOUSING (12.6%):
125 Dane County Multifamily Housing Authority............................... 5.85 07-01-11 120,970
125 Dane County Multifamily Housing Authority............................... 5.90 07-01-12 120,840
500 New Berlin Multifamily Housing.......................................... 7.13 05-01-24 486,250
1,000 Puerto Rico Housing Authority Single Family Mortgage Revenue
(GNMA Insured)........................................................ 6.85 10-15-23 1,015,000
1,000 Puerto Rico Housing Bank & Finance Agency (GNMA Insured)................ 6.25 04-01-29 978,750
480 Wauwatosa Harwood Place Multifamily Housing Revenue..................... 5.75 12-01-08 477,600
3,199,410
EDUCATION (2.0%):
500 Madison Edgewood College................................................ 6.25 04-01-14 507,905
OTHER REVENUE (14.1%):
1,000 Cudahey G.O. DA Revenue................................................. 6.00 06-01-11 970,550
125 Madison County Authority - Monona Terrace............................... 5.80 03-01-05 129,416
365 Madison County Authority - Monona Terrace............................... 5.90 03-01-06 377,837
300 Omro Community Development Authority.................................... 5.88 12-01-11 298,485
1,800 Puerto Rico Municipal Finance Authority (FSA Insured)................... 6.00 07-01-14 1,806,750
3,583,038
TOTAL MUNICIPAL BONDS (cost: $24,522,716) $24,815,305
SHORT-TERM SECURITIES (4.5%):
90 Dreyfus Investment Tax-Exempt Money Market Fund......................... 3.86(b) 90,000
1,055 Nuveen Investment Tax-Free Fund......................................... 3.81(b) 1,055,000
TOTAL SHORT-TERM SECURITIES (cost: $1,145,000) $ 1,145,000
TOTAL INVESTMENT IN SECURITIES (cost: $25,667,716)(c) $25,960,305
</TABLE>
VOYAGEUR WISCONSIN TAX FREE FUND
NOTES TO INVESTMENTS IN SECURITIES (UNAUDITED)
(a) Securities are valued by procedures described in note 1 to the financial
statements.
(b) Dividend yields change daily to reflect current market conditions. Rate
shown is the quoted yield as of June 30, 1995.
(c) The cost of securities for federal income tax purposes is $25,702,597. The
aggregate gross unrealized appreciation and depreciation of securities
based on this cost are as follows:
Gross Gross Net
Unrealized Unrealized Unrealized
Appreciation Depreciation Appreciation
533,097 (275,389) 257,708
(d) Investments in bonds, by rating category as a percentage of total bonds,
are as follows:
Aaa/AAA Aa/AA A/A BBB Total
33% 15% 37% 15% 100%
(e) The Fund entered into the following restricted security transaction: On
October 13, 1994, the Fund purchased $2,000,000 par of Milwaukee Goodwill
Industries with a cost basis of $2,000,000. This private placement
represents all of the restricted illiquid securities owned by the Fund and
is equal to 8.02% of net assets.
INVESTMENT ADVISER, TRANSFER AGENT,
DIVIDEND DISBURSING AGENT AND
ACCOUNTING SERVICES AGENT
Voyageur Fund Managers, Inc.
90 South Seventh Street, Suite 4400
Minneapolis, Minnesota 55402
UNDERWRITER
Voyageur Fund Distributors, Inc.
90 South Seventh Street, Suite 4400
Minneapolis, Minnesota 55402
CUSTODIAN
Norwest Bank Minnesota, N.A.
Sixth Street & Marquette Avenue
Minneapolis, Minnesota 55479
GENERAL COUNSEL
Dorsey & Whitney P.L.L.P.
Minneapolis, Minnesota 55402
AUDITORS
KPMG Peat Marwick LLP
Minneapolis, Minnesota 55402
VOYAGEUR
WISCONSIN TAX FREE FUND
SEMI-ANNUAL REPORT
Dated June 30, 1995
INVESTMENT ADVISER, TRANSFER AGENT,
DIVIDEND DISBURSING AGENT AND
ACCOUNTING SERVICES AGENT
Voyageur Fund Managers, Inc.
90 South Seventh Street, Suite 4400
Minneapolis, Minnesota 55402
UNDERWRITER
Voyageur Fund Distributors, Inc.
90 South Seventh Street, Suite 4400
Minneapolis, Minnesota 55402
CUSTODIAN
Norwest Bank Minnesota, N.A.
Sixth Street & Marquette Avenue
Minneapolis, Minnesota 55479
GENERAL COUNSEL
Dorsey & Whitney P.L.L.P.
Minneapolis, Minnesota 55402
AUDITORS
KPMG Peat Marwick LLP
Minneapolis, Minnesota 55402
BULK RATE
U.S. Postage
PAID
Minneapolis, MN.
Permit #3322
VOYAGEUR
90 SOUTH SEVENTH STREET, SUITE 4400
MINNEAPOLIS, MINNESOTA 55402.4115
