<PAGE>
For Tax-Exempt Income
DELAWARE GROUP'S
National High Yield
Municipal Bond Fund
1997
Semi-Annual Report
professional management
service and guidance
goals
[Picture]
DELAWARE
GROUP
========
<PAGE>
- --------------------------------------------------------------------------------
JULY 15, 1997
Dear Shareholder:
I am pleased to present the first shareholder report of the National High Yield
Municipal Bond Fund since the Voyageur funds joined the Delaware family on April
30, 1997.
On behalf of all of us here in Philadelphia, I welcome you to an
organization of experienced financial professionals dedicated to helping you
reach your investment goals. Delaware has managed municipal bond investments for
more than 20 years and was a pioneer in high-yield corporate bond investing.
Since May, the Fund has been co-managed by Patrick P. Coyne and Mitchell
L. Conery, two veteran portfolio managers with a thorough understanding of
municipal bond credit risks. Both men jointly manage Delaware's three other
national tax-free funds, which focus primarily on investment grade municipal
bonds.
IN THE COMING YEARS, WE BELIEVE IT WILL BECOME MORE IMPORTANT THAN EVER TO
CONSIDER THE IMPACT OF TAXES ON THE PERFORMANCE OF AN INVESTMENT PORTFOLIO.
I am delighted to report that during this transition period, your Fund
outperformed its broad unmanaged benchmark, as shown on page 7.
We view the municipal bond market's long-term prospects as very
attractive, especially given the robust health of the U.S. economy. Municipal
bond prices have generally been stronger than U.S. Treasuries* during 1997,
despite federal tax changes in Washington and a modest tightening of monetary
policy by the Federal Reserve Board.
As our nation's leaders grapple with tax issues and states take on a
greater fiscal responsibility for managing social and public works programs, we
believe it will become more important than ever to consider the impact of taxes
on the performance of an investment portfolio.
*PRINCIPAL AND INTEREST OF U.S. TREASURIES ARE GUARANTEED BY THE U.S.
GOVERNMENT, UNLIKE MUNICIPAL BONDS, WHICH MAY BE GUARANTEED BY A STATE, LOCAL
GOVERNMENT ENTITY OR PRIVATE INSURER.
2 1 9 9 7 s e m i - a n n u a l r e p o r t
<PAGE>
When Delaware offered its first municipal bond fund in 1977, federal
taxpayers were able to take many more deductions on their tax returns than they
can take today. Among these were:
* Interest on student and consumer loans,
* More extensive job-related moving expenses,
* Sales and gasoline taxes; and,
* A portion of dividend income.
In our opinion, the income from municipal bonds and the tax-free compounding of
such income over time has the potential to help heavily taxed investors reach
their financial goals more quickly.
On the pages that follow, Mr. Coyne and Mr. Conery review your Fund's
performance and outline their approach for the coming months. We look forward to
reporting to you again in 1998 and serving your needs for many years to come.
Sincerely,
/s/ Wayne A. Stork
- -----------------------------------------------
Wayne A. Stork
CHAIRMAN, PRESIDENT AND CHIEF EXECUTIVE OFFICER
Introducing Your Fund's Portfolio Managers
[Picture of Patrick P. Coyne]
PATRICK P. COYNE has managed fixed-income securities at Delaware 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.
[Picture of Mitchell L. Conery]
MITCHELL L. CONERY joined Delaware on January 2, 1997.
He had been managing a $5 billion municipal bond portofolio for a major
financial services firm in New York City. Mr Conery holds an MBA from the
State University of New York at Albany. He holds a bachelor's degree in
economics and mathematics from Boston University.
1 9 9 7 s e m i - a n n u a l r e p o r t 3
<PAGE>
Performance Review
National High Yield Municipal Bond Fund provided an attractive total return of
+4.24% (for Class A shares at net asset value with distributions reinvested)
during the first half of fiscal 1997.
Despite substantial interest rate volatility and renewed efforts in
Washington to cut income taxes, higher risk municipal securities generally
offered superior returns relative to higher quality, investment grade government
securities.
On page 7, you can see that your Fund outperformed a broad unmanaged
benchmark of the municipal bond market as well as the average of its 48 peers in
the Lipper High-Yield Municipal Debt Fund Average for the six months ended June
30, 1997.
We use the Lehman Brothers Municipal Bond Index, which is primarily
composed of investment grade securities, as our benchmark because there is no
widely recognized unmanaged index of higher risk municipal bonds. We believe
this reflects the fact that the high-yield municipal bond market is fragmented
and modest in size, representing less than 10% of municipal debt outstanding.
A robust U.S. economy - evidenced by a 5.9% growth rate in the first
quarter of 1997 - has helped many communities across the nation gather ample tax
revenue to meet bond obligations. This has helped the performance of your Fund,
but it has also reduced the available supply of higher risk, high-yield
municipal securities.
A ROBUST U.S. ECONOMY HAS HELPED MANY COMMUNITIES ACROSS THE NATION GATHER
AMPLE TAX REVENUE TO MEET BOND OBLIGATIONS. THIS HAS HELPED THE PERFORMANCE
OF YOUR FUND.
A DIVERSE PORTFOLIO HELPS US MANAGE RISK
YOUR FUND'S PORTFOLIO COMPOSITION AND STATE CONCENTRATION
- ----------------------------------------------------------
June 30, 1997
Water/Sewer 15.2%
Utility Bonds 2.6%
Higher Education 8.4%
Pollution Control 1.8%
Hospitals 23.8%
Housing 5.5%
Pre-Refunded 7.6%
Other Revenue Bonds 12.6%
General Obligation 12%
Cash 3.6%
Industrial Development 6.9%
NONE OF THE INCOME GENERATED BY THE FUND FOR THE SIX MONTHS ENDED JUNE 30, 1997,
WAS SUBJECT TO THE ALTERNATIVE MINIMUM TAX.
Top Five States
- --------------------------------------------------
State Share of Net Assets
- --------------------------------------------------
Illinois 16.6%
Colorado 12.1%
Pennsylvania 12.0%
Alabama 9.2%
Missouri 9.1%
4 1 9 9 7 s e m i - a n n u a l r e p o r t
<PAGE>
OUTLOOK
Our predecessor had been successful in identifying attractive high-yield bonds
issued by rural communities. Typically the bond market demands a higher yield
from small towns because they often have little or no track record in the
municipal debt market, or the size of a bond issue may be too small to attract
widespread investor interest. Sometimes, too, a community will forego having a
bond issue rated by rating services such as Moody's or Standard & Poor's because
the cost of securing a rating is too great relative to the size of a bond issue.
Such situations present your Fund's management with an opportunity to
increase income potential after we carefully assess credit risks. While we
expect more such opportunities to arise in the coming months, we anticipate
placing a greater degree of focus on high-yield bonds issued by larger
communities and other public entities. We believe this can add value by
increasing our flexibility in managing the portfolio.
High-yield municipal bonds are different from high-yield corporate bonds
in many respects, one of which is that the yield advantage has historically been
much narrower for higher risk municipal debt.
For investors in high tax brackets, high-yield municipal bonds have
historically yielded nearly as much as high-yield corporate bonds after
adjusting for federal income taxes. For example, as of June 30 a taxpayer in the
39.6% federal bracket would have had to earn 8.94% from a taxable investment to
earn the same after-tax yield as the Fund's 5.4%, 30-day current yield (for A
Class shares measured according to Securities and Exchange Commission
guidelines).
In fact, on a taxable equivalent basis, your Fund's 30-day SEC yield as
of June 30 was 70 basis points (0.70%) higher than the average yield of mutual
funds in the Lipper
DURING THE FIRST HALF OF FISCAL 1997, HIGH-YIELD MUNICIPAL BONDS, ON AVERAGE,
YIELDED ABOUT 100 BASIS POINTS (1%) MORE THAN MUNICIPAL BONDS OF COMPARABLE
MATURITY THAT WERE RATED AAA.
QUALITY BREAKDOWN
- --------------------------------------
June 30, 1997
- ------------------------------------
Unrated 71.2%
BBB 14.3%
A 6.5%
AAA 8.0%
high yield
1 9 9 7 s e m i - a n n u a l r e p o r t 5
<PAGE>
PORTFOLIO HIGHLIGHTS
- -----------------------------------------------------
June 30, 1997
- -----------------------------------------------------
Average Effective Maturity 9.2 years
Average Effective Duration 5.5 years
Number of Securities 67
Thirty-Day Current SEC Yield* 5.40%
*FOR A CLASS SHARES BASED ON SECURITIES AND EXCHANGE COMMISSION GUIDELINES.
SEC YIELDS FOR B AND C CLASSES WERE 4.84% AND 4.86%, RESPECTIVELY.
High Current Yield Fund Average, a group of 194 funds specializing in higher
risk corporate bonds. Of course, the amount of this yield advantage depends on
an investor's tax bracket and past performance is no guarantee of future
results.
During the first half of 1997, the nation's unemployment rate fell to
its lowest level since the early 1970s amid reports of labor shortages and
intense competition for recent college graduates in certain fields.
Historically, such developments suggest higher inflation and lower bond prices.
Yet government statistics since December have shown that the Federal Reserve
Board's monetary policy has effectively kept a lid on consumer and producer
price increases. In our opinion, the bond market has benefited from the Fed's
desire to be a vigilant anti-inflation watchdog.
Although the outlook for interest rates appears to be brighter than just
a few months ago, we prefer to take a conservative approach to managing this
type of risk. Rather than bet on the future course of interest rates, your Fund
typically invests in high-yield municipal bonds exclusively for income
potential. We expect to keep the average effective maturity of the Fund's
portfolio relatively constant for the remainder of the fiscal year.
Mitchell L. Conery
VICE PRESIDENT
SENIOR PORTFOLIO MANAGER
Patrick P. Coyne
VICE PRESIDENT
SENIOR PORTFOLIO MANAGER
July 15, 1997
outlook
6 1 9 9 7 s e m i - a n n u a l r e p o r t
<PAGE>
COMPARATIVE RETURNS
FOR THE SIX MONTHS ENDED JUNE 30, 1997*
- --------------------------------------------------------------------------
National High-Yield Municipal Bond Fund A Class +4.24%
Lipper High-Yield Municipal Debt Fund Average (49 funds) +3.42%
Lehman Brothers Municipal Bond Index +3.20%
*TOTAL RETURN IS BASED ON CHANGE IN NET ASSET VALUE WITH DISTRIBUTIONS
REINVESTED. PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. PERFORMANCE
OF B CLASS SHARES VARIES DUE TO DIFFERENT CHARGES AND EXPENSES. SEE PAGE 13
FOR SIX-MONTH RETURNS FOR B CLASS SHARES. THE LIPPER AVERAGE AND UNMANAGED
LEHMAN INDEX SHOWN ABOVE INCLUDES TAX-EXEMPT BONDS FROM MANY STATES. INDEX
RESULTS ASSUME NO MANAGEMENT FEES OR EXPENSES.
NATIONAL HIGH YIELD MUNICIPAL BOND FUND PERFORMANCE
- -------------------------------------------------------------------------------
Average Annual Return Through June 30, 1997
Lifetime Ten Years Five Years One Year
- -------------------------------------------------------------------------------
Class A (Est. 9/22/86)
Excluding Sales Charge +8.05% +8.53% +7.84% +11.76%
Including Sales Charge +7.67% +8.12% +7.02% +7.57%
- -------------------------------------------------------------------------------
Class B (Est. 12/18/96)
Excluding Sales Charge +3.83%
Including Sales Charge +0.28%
ALL PERFORMANCE INCLUDES REINVESTMENT OF DISTRIBUTIONS AND APPLICABLE SALES
CHARGES AS DESCRIBED BELOW. RETURN AND SHARE VALUE WILL FLUCTUATE SO THAT SHARES
WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. PAST PERFORMANCE
IS NOT A GUARANTEE OF FUTURE RESULTS. PERFORMANCE FOR CLASS B AND C SHARES
"EXCLUDING SALES CHARGE" ASSUMES THE INVESTMENT WAS NOT REDEEMED. RETURNS
REFLECT A VOLUNTARY EXPENSE LIMITATION IN EFFECT AT THE TIME. RETURNS WOULD HAVE
BEEN LOWER WITHOUT THE LIMITATION.
CLASS A SHARES HAVE A 3.75% MAXIMUM FRONT-END SALES CHARGE AND A 12B-1 FEE.
CLASS B SHARES DO NOT CARRY A FRONT-END SALES CHARGE, BUT ARE SUBJECT TO A 1%
ANNUAL DISTRIBUTION AND SERVICE FEE. THEY ARE ALSO SUBJECT TO A DEFERRED SALES
CHARGE OF UP TO 4% IF REDEEMED BEFORE THE END OF THE SIXTH YEAR. PERFORMANCE FOR
THIS CLASS FOR THE SHORT TIME PERIOD SINCE INCEPTION MAY NOT BE REPRESENTATIVE
OF LONGER TERM RESULTS.
1 9 9 7 s e m i - a n n u a l r e p o r t 7
<PAGE>
Financial Statements
NATIONAL HIGH YIELD MUNICIPAL BOND FUND
STATEMENT OF NET ASSETS --
JUNE 30, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------
PRINCIPAL MARKET
AMOUNT VALUE
--------------------------------
MUNICIPAL BONDS - 96.48%
CONTINUING CARE/RETIREMENT
REVENUE BONDS - 12.41%
<S> <C> <C>
Alexandria Health Care Facility Revenue-Board
of Social Ministry 8.75% 08/01/21 .................. $ 500,000 $ 546,695
Indianapolis Indiana Economic Development
Revenue-National Benevolent Association
7.25% 10/01/10 .................................... 700,000 743,113
Marion County Missouri Nursing Home Revenue
7.00% 08/01/13 .................................... 1,000,000 1,066,054
South Dakota Health and Education Facilities
Revenue-Westhills Retirement Village
7.25% 09/01/13 .................................... 1,125,000 1,140,705
Spring Park Minnesota Twin Birch Health Care Center
(Guarantor: Presbyterian Homes of Minnesota)
8.25% 08/01/11 .................................... 500,000 531,910
St Louis County Missouri Industrial Development
Authority-Deaconess Manor Association
7.50% 06/01/16 .................................... 1,500,000 1,520,595
Volusia Florida Industrial Development Authority-
Bishops Glen Project Retirement Health Facilities
7.50% 11/01/16 .................................... 1,065,000 1,076,971
---------
6,626,043
---------
GENERAL OBLIGATIONS BONDS - 13.71%
Etowah County Alabama Refunding Warrants
8.50% 11/01/10 .................................... 800,000 894,680
Niles Illinois Park District Unlimited Tax
6.65% 12/01/14 .................................... 860,000 904,522
Illinois State Development Finance Authority East
St. Louis Debt Restructure Revenue
7.375% 11/15/11 ................................... 1,100,000 1,201,728
Orange Beach Alabama Refunding and Capital
Improvement Unlimited Tax
6.25% 10/01/13 .................................... 1,500,000 1,545,840
Panorama Colorado Metropolitan District Unlimited
Tax 9.00% 12/01/09 ................................ 750,000 792,428
Piney Creek Colorado Metropolitan District Unlimited
Tax 8.50% 12/01/14 ................................ 600,000 621,864
Romeoville Illinois Recreational Facilities Unlimited
Tax 7.80% 01/01/11 ................................ 1,000,000 1,100,830
Winter Park West Colorado Water and Sanitation
District Unlimited Tax 9.25% 12/01/06 .............. 250,000 261,212
---------
7,323,104
---------
HIGHER EDUCATION REVENUE BONDS - 4.53%
New Hampshire Education and Health Authority-
Brewster Academy 6.75% 06/01/25 .................... 1,000,000 1,043,060
Pennsylvania Higher Educational Facilities Authority-
Drexel University 6.75% 05/01/12 ................... 1,300,000 1,375,842
---------
2,418,902
---------
</TABLE>
<PAGE>
Financial Statements
NATIONAL HIGH YIELD MUNICIPAL BOND FUND
STATEMENT OF NET ASSETS --
JUNE 30, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------
PRINCIPAL MARKET
AMOUNT VALUE
--------------------------------
MUNICIPAL BONDS (CONTINUED)
HOSPITAL REVENUE BONDS - 9.96%
<S> <C> <C>
Denton County Texas Health Facility Revenue-
Lutheran Social Services Corporation
7.50% 08/15/15 ................................. $1,000,000 $1,080,620
Illinois Health Facility Authority Revenue-Midwest
Physician Group Project 8.10% 11/15/14 .......... 1,000,000 1,133,820
Illinois State Development Finance Authority
Harrisburg Medical Center Project
7.00% 03/01/06 ................................. 400,000 418,696
Illinois State Development Finance Authority
Harrisburg Medical Center Project
7.20% 03/01/07 ................................. 400,000 421,248
Illinois State Development Finance Authority
Harrisburg Medical Center Project
7.20% 03/01/08 ................................. 400,000 418,540
Ohio County West Virginia Building Commission-Ohio
Valley Medical Center
9.625% 01/01/13 ................................. 775,000 784,184
South Dakota Health and Education Facilities
Revenue-Huron Regional
Medical Center 7.00% 04/01/10 ................... 1,000,000 1,065,040
---------
5,322,148
---------
HOUSING REVENUE BONDS - 3.81%
Bernalillo County New Mexico Multifamily
Housing-Topke Commons/Arbors
Project-Series D 7.70% 04/01/27 ................. 1,000,000 1,011,440
Wharton Housing Development
Corporation-State Multifamily Housing
Section 8 8.00% 02/01/03 ....................... 100,000 100,007
Wharton Housing Development
Corporation-State Multifamily Housing
Section 8 8.00% 02/01/04 ....................... 105,000 105,007
Wharton Housing Development
Corporation-State Multifamily Housing
Section 8 8.00% 02/01/05 ....................... 110,000 110,008
Wharton Housing Development
Corporation-State Multifamily Housing
Section 8 8.00% 02/01/06 ....................... 120,000 120,008
Wharton Housing Development
Corporation-State Multifamily Housing
Section 8 8.00% 02/01/07 ....................... 130,000 130,009
Wharton Housing Development
Corporation-State Multifamily Housing
Section 8 8.00% 02/01/08 ........................ 140,000 140,010
Wharton Housing Development
Corporation-State Multifamily Housing
Section 8 8.00% 02/01/09 ....................... 155,000 155,011
</TABLE>
8 1 9 9 7 s e m i - a n n u a l r e p o r t
<PAGE>
STATEMENT OF NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------
PRINCIPAL MARKET
AMOUNT VALUE
--------------------------------
MUNICIPAL BONDS (CONTINUED)
HOUSING REVENUE BONDS (CONTINUED)
<S> <C> <C>
Wharton Housing Development
Corporation-State Multifamily Housing
Section 8 8.00% 02/01/10 .................... $ 165,000 $ 165,012
----------
2,036,512
----------
INDUSTRIAL DEVELOPMENT REVENUE
BONDS - 6.42%
Moundville Alabama Industrial Development
Board Revenue Lawter International,
Inc. Project Series LI 6.75% 12/01/11 ........ 1,500,000 1,577,115
Newbern Tennessee Industrial Development
Board Newbern Rubber, Inc.-(Dana Corporation)
7.90% 03/01/00 ............................... 1,000,000 1,053,990
Troy Economic Development Corporation-Drury
Inn Project (Guaranty Agreement
Lincoln National Corporation)
6.75% 10/01/12 .............................. 750,000 797,752
----------
3,428,857
----------
POLLUTION CONTROL REVENUE BONDS - 1.83%
Yarmouth Maine Pollution Control
Revenue-Central Maine Power
6.75% 06/01/02 .............................. 965,000 975,924
----------
975,924
----------
*PRE-REFUNDED BONDS - 11.17%
Adamstown Borough Pennsylvania
Guaranteed Sewer 9.00% 10/01/17-97 ........... 500,000 506,175
Arapahoe Colorado Water and Sanitation
District Revenue 9.125% 12/01/08-98 .......... 500,000 538,149
Arapahoe Colorado Water and Sanitation
District Revenue 9.25% 12/01/13-98 ........... 210,000 226,468
Bad Axe Michigan Water Supply
Revenue 8.25% 12/01/07-97 ................... 500,000 521,250
Bedford Park Illinois Tax Increment
Revenue 8.00% 12/01/10-04 ................... 1,200,000 1,435,368
Colorado Technical Center Metropolitan District
Unlimited Tax 9.75% 06/01/09-99 .............. 570,000 630,967
Green River Wyoming-Sweetwater Joint
Power Revenue 8.50% 12/01/07-98 .............. 400,000 417,256
Lead South Dakota Recreation Center
Lease Revenue-Northern Hills YMCA
8.875% 10/01/18-98 ........................... 590,000 640,144
Streamwood Illinois Special Service
Area #3 Tax Revenue
8.375% 01/01/09-99 .......................... 1,000,000 1,046,940
----------
5,962,717
----------
UTILITY REVENUE BONDS - 2.58%
Chelsea Oklahoma Gas Authority
7.30% 07/01/19 .............................. 700,000 740,124
Chelsea Oklahoma Gas Authority
7.25% 07/01/13 .............................. 600,000 636,570
----------
1,376,694
----------
</TABLE>
<PAGE>
STATEMENT OF NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------
PRINCIPAL MARKET
AMOUNT VALUE
--------------------------------
MUNICIPAL BONDS (CONTINUED)
WATER AND SEWER REVENUE BONDS - 13.67%
<S> <C> <C>
Clarence Cannon Missouri Wholesale
Water Commission 5.75% 05/15/13 ............. $ 1,000,000 $ 978,550
Easton Pennsylvania Area Joint Sewer
Authority 6.20% 04/01/09 ................... 1,000,000 1,015,780
Elizabeth Borough Pennsylvania Municipal
Authority-Guaranteed Sewer
7.15% 01/01/21 ............................. 500,000 528,350
Franklin County Missouri Public Water
Supply District Waterworks and Sewer
System 7.375% 12/01/18 ..................... 1,255,000 1,318,553
Hopewell Township Pennsylvania Guaranteed
Sewer 6.00% 11/01/13 ....................... 1,215,000 1,192,583
New Kensington Pennsylvania Municipal
Sanitation Authority Sewer
7.50% 10/01/11 ............................. 1,000,000 1,058,020
Upper Bear Creek Alabama Water, Sewer,
and Fire Revenue Disrtrict
6.25% 08/01/15 ............................. 1,250,000 1,206,675
-----------
7,298,511
-----------
OTHER REVENUE BONDS - 16.39%
Arbor Greene Community Development
District, Special Assessment
Revenue 7.00% 05/01/03 ..................... 1,000,000 1,016,070
Colorado Postsecondary Education
Facilities Authority Colorado Ocean Journey
Project 8.00% 12/01/06 ..................... 2,000,000 2,043,440
Fishers Economic Development Revenue-
United Student Aid Fund, Inc. ...............
8.375% 09/01/14 ............................ 1,000,000 1,039,640
Lehigh County General Purpose
Authority-Wiley House 8.75% 11/01/14 ........ 750,000 779,213
Oklahoma City Public Property Authority-City
Golf System 8.30% 10/01/16 .................. 1,000,000 1,043,660
Pocatello Development Authority Allocation
Tax Increment-Private Placement
7.25% 12/01/08 ............................. 250,000 259,963
Prescott Valley, Arizona Improvement District-
Special Assessment 7.90% 01/01/12 ........... 500,000 557,355
Washington State Housing Finance
Commission-State School Directors'
Association-Private Placement
8.25% 07/01/12 ............................. 195,000 208,927
Washington State Housing Finance
Commission-State School Directors'
Association-Private Placement
8.25% 07/01/02 ............................. 625,000 693,731
West Chicago, Illinois Tax Increment
7.375% 12/01/12 ............................. 720,000 761,220
Westminster Colorado Shaw Heights Special
Improvement District 7.50% 12/01/07 ......... 350,000 353,045
-----------
8,756,264
-----------
Total Municipal Bonds (cost $49,026,990) ..... 51,525,676
-----------
</TABLE>
1 9 9 7 s e m i - a n n u a l r e p o r t 9
<PAGE>
STATEMENT OF NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------
PRINCIPAL MARKET
AMOUNT VALUE
--------------------------------
<S> <C> <C>
SHORT TERM INVESTMENTS - .75%
Norwest Advantage Municipal Money
Market Fund ..................................... $400,988 $ 400,988
Total Short Term Investments
(cost $400,988) ................................ 400,988
------------
TOTAL MARKET VALUE OF SECURITIES OWNED - 97.23%
(cost $49,427,978)** ........................... $51,926,664
RECEIVABLES AND OTHER ASSETS NET OF
LIABILITIES - 2.77% ............................ 1,477,052
------------
NET ASSETS APPLICABLE TO 5,080,832
SHARES ($.01 PAR VALUE) OUTSTANDING - 100.00% ... $53,403,716
============
NET ASSET VALUE - NATIONAL HIGH YIELD FUND A CLASS
($52,435,640 / 4,988,750 shares) ............... $10.51
NET ASSET VALUE - NATIONAL HIGH YIELD FUND B CLASS
($947,851 / 90,157 shares) ..................... $10.51
NET ASSET VALUE - NATIONAL HIGH YIELD FUND C CLASS
($20,225 / 1,925 shares) ....................... $10.51
- -------------------
*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.
COMPONENTS OF NET ASSETS AT JUNE 30, 1997:
Common Stock, $.01 par value, 100 billion shares authorized
to the Fund with 10 billion shares allocated to National High
Yield Fund A Class 10 billion shares allocated to National High
Yield Fund B Class 10 billion shares allocated to National High
Yield Fund C Class ............................... $50,697,557
Accumulated overdistributed net investment income . (676)
Accumulated net realized gain on investments ...... 208,149
Net unrealized appreciation of investments ........ 2,498,686
------------
Total net assets .................................. $53,403,716
============
</TABLE>
<PAGE>
NATIONAL HIGH YIELD
MUNICIPAL BOND FUND
STATEMENT OF OPERATIONS
SIX MONTHS ENDED JUNE 30, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------
PRINCIPAL MARKET
AMOUNT VALUE
--------------------------------
<S> <C> <C>
INVESTMENT INCOME:
Interest .......................................... $1,932,081
----------
EXPENSES:
Management fees ................................... $149,052
Distribution expense .............................. 69,323
Dividend disbursing, transfer
agent and custodian
fees and expenses ................................ 43,547
Registration fees ................................. 29,585
Professional fees ................................. 16,759
Reports and statements to shareholders 7,881
Accounting fees and salaries ...................... 3,794
Directors' fees ................................... 1,478
Other ............................................. 663
--------
322,082
Less expenses waived or absorbed .................. (93,280)
--------
Total expense ..................................... 228,802
----------
NET INVESTMENT INCOME ............................. 1,703,279
----------
NET REALIZED AND UNREALIZED GAIN
ON INVESTMENTS
Net realized gain on investments: ................. 330,749
Net change in unrealized appreciation
of investments: ................................. 252,222
----------
NET REALIZED AND UNREALIZED GAIN
ON INVESTMENTS ................................... 582,971
----------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS .................................. $2,286,250
----------
</TABLE>
See accompanying notes
10 1997 s e m i - a n n u a l r e p o r t
<PAGE>
NATIONAL HIGH YIELD MUNICIPAL BOND FUND
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------
SIX MONTHS FIVE MONTHS
ENDED ENDED YEAR ENDED
6/30/97 12/31/96(1) 7/31/96
(UNAUDITED)
----------------------------------------------------
INCREASE IN NET ASSETS FROM OPERATIONS:
<S> <C> <C> <C>
Net investment income ............................ $ 1,703,279 $ 1,546,818 $ 3,937,960
Net realized gain (loss) on
investments ..................................... 330,749 (97,077) 211,120
Net change in unrealized appreciation
of investments .................................. 252,222 1,323,262 691,939
------------ ------------ ------------
Net increase in net assets resulting
from operations ................................. 2,286,250 2,773,003 4,841,019
------------ ------------ ------------
DISTRIBUTION TO SHAREHOLDERS FROM:
Net investment income:
A Class ......................................... (1,699,683) (1,541,075) (3,937,960)
B Class ......................................... (9,793) (121) N/A
C Class ......................................... (101) N/A N/A
Net realized gain from security transactions:
A Class ......................................... -- -- (779,384)
B Class ......................................... -- -- N/A
C Class ......................................... -- N/A N/A
Excess distribution of net realized gain:
A Class ......................................... -- -- (25,474)
B Class ......................................... -- -- N/A
C Class ......................................... -- N/A N/A
------------ ------------ ------------
(1,709,577) (1,541,196) (4,742,818)
------------ ------------ ------------
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold:
A Class ......................................... 1,934,419 2,208,712 2,593,882
B Class ......................................... 850,505 88,126 N/A
C Class ......................................... 20,000 N/A N/A
Net asset value of shares issued upon reinvestment
of dividends from net investment income and net
realized gain on security transactions:
A Class ......................................... 1,020,995 625,742 2,523,625
B Class ......................................... 3,609 -- N/A
C Class ......................................... 76 N/A N/A
------------ ------------ ------------
3,829,604 2,922,580 5,117,507
------------ ------------ ------------
Cost of shares repurchased:
A Class ......................................... (10,195,342) (8,421,106) (8,113,265)
B Class ......................................... (195) -- N/A
C Class ......................................... -- N/A N/A
------------ ------------ ------------
(10,195,537) (8,421,106) (8,113,265)
------------ ------------ ------------
Decrease in net assets derived from
capital share transactions ...................... (6,365,933) (5,498,526) (2,995,758)
------------ ------------ ------------
NET DECREASE IN NET ASSETS ....................... (5,789,260) (4,266,719) (2,897,557)
NET ASSETS:
Beginning of period .............................. 59,192,976 63,459,695 66,357,252
------------ ------------ ------------
End of period .................................... $ 53,403,716 $ 59,192,976 $ 63,459,695
============ ============ ============
- -------------------
(1) The Fund changed its Fiscal year end to December 31.
NA - The Fund's B and C Classes did not commence operations until December 18,
1996 and May 26, 1997, respectively
</TABLE>
See accompanying notes
1 9 9 7 s e m i - a n n u a l r e p o r t 11
<PAGE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------------
Selected data for each share of the Fund outstanding throughout each period were as follows:
NATIONAL HIGH YIELD MUNICIPAL BOND FUND - A CLASS
------------------------------------------------------------------------
SIX MONTHS PERIOD FROM
ENDED 8/1/96 TO YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
6/30/97 12/31/96(1) 7/31/96 7/31/95 7/31/94 7/31/93 7/31/92
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period......... $10.40 $10.19 $10.17 $10.17 $10.50 $10.22 $9.65
Income from investment operations:
Net investment income....................... 0.31 0.26 0.63 0.65 0.62 0.65 0.70
Net realized and unrealized gain (loss)
from investments........................... 0.11 0.21 0.14 0.04 (0.31) 0.28 0.57
------- ------- ------- ------- ------- ------- -------
Net increase in net assets from investment
operations................................. 0.42 0.47 0.77 0.69 0.31 0.93 1.27
------- ------- ------- ------- ------- ------- -------
Less dividends and distributions:
Dividends from net investment income(2)..... (0.31) (0.26) (0.63) (0.65) (0.62) (0.65) (0.70)
Distributions from net realized gain on
security transactions...................... - - (0.12) (0.04) (0.02) - -
------- ------- ------- ------- ------- ------- -------
Total dividends and distributions........... (0.31) (0.26) (0.75) (0.69) (0.64) (0.65) (0.70)
------- ------- ------- ------- ------- ------- -------
Net asset value, end of period............... $10.51 $10.40 $10.19 $10.17 $10.17 $10.50 $10.22
======= ======= ======= ======= ======= ======= =======
Total return(3).............................. 4.24% 4.52% 7.78% 7.16% 2.99% 9.45% 13.84%
Ratios and supplemental data:
Net assets, end of period (000 omitted)..... $52,436 $59,105 $63,460 $66,357 $72,172 $58,048 $43,166
Ratio of expenses to average net assets(4).. 0.84%(5) 0.87%(5) 0.85% 0.79% 0.91% 1.01% 0.84%
Ratio of expenses to average net assets
prior to expense limitation................ 1.18%(5) 1.07%(5) 0.96% 0.90% 1.01% 1.24% 1.14%
Ratio of net investment income to average
net assets................................. 6.28%(5) 6.06%(5) 6.10% 6.45% 5.98% 6.32% 7.15%
Ratio of net investment income to average
net assets prior to expense limitation..... 5.94%(5) 5.86%(5) 5.99% 6.34% 5.88% 6.09% 6.85%
Portfolio turnover.......................... 15.44%(5) 7.51%(5) 0.00% 8.45% 27.88% 16.36% 14.50%
</TABLE>
- --------------------
1 On November 6, 1996, the Fund's shareholders approved a change of investment
adviser from IFG Asset Management Services, Inc. to Voyageur Fund Managers,
Inc.
2 For the period presented, all of the distributions from net investment income
were derived from interest on securities exempt from federal income tax.
3 Total investment return is based on the change in net asset value of a share
during the period and assumes reinvestment of distributions at net asset value
and does not reflect the impact of a sales charge.
4 For the periods ended July 31, 1995, 1996 and December 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 Annualized.
12 1 9 9 7 s e m i - a n n u a l r e p o r t
<PAGE>
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------
Selected data for each share of the Fund outstanding throughout each period were as follows:
NATIONAL HIGH YIELD NATIONAL HIGH YIELD
MUNICIPAL MUNICIPAL
BOND FUND - B CLASS BOND FUND - C CLASS
---------------------------------------------
SIX MONTHS PERIOD FROM PERIOD FROM
ENDED 12/18/96(1) 5/26/97(1)
6/30/97 TO 12/31/96 TO 6/30/97
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C>
Net asset value,
beginning of period......................... $10.40 $10.37 $10.44
Income from investment operations:
Net investment income....................... 0.28 0.01 0.04
Net realized and unrealized gain
from investments........................... 0.10 0.03 0.07
------ ------ ------
Net increase in net assets from
investment operations ...................... 0.38 0.04 0.11
------ ------ ------
Less dividends and distributions:
Dividends from net investment
income(2).................................. (0.27) (0.01) (0.04)
------ ------ ------
Total dividends and distributions .......... (0.27) (0.01) (0.04)
------ ------ ------
Net asset value, end of period .............. $10.51 $10.40 $10.51
======= ====== ======
Total return(3).............................. 3.83% 0.43% 1.19%
Ratios and supplemental data:
Net assets, end of period
(000 omitted).............................. $948 $88 $20
Ratio of expenses to average
net assets(4).............................. 1.57%(5) 1.45%(5) 1.57%(5)
Ratio of expenses to average
net assets prior to
expense limitation ........................ 1.93%(5) 1.66%(5) 1.93%(5)
Ratio of net investment income to
average net assets......................... 5.55%(5) 4.65%(5) 5.55%(5)
Ratio of net investment income to
average net assets prior to
expense limitation ........................ 5.19%(5) 4.44%(5) 5.19%(5)
Portfolio turnover.......................... 15.44%(5) 7.51% 15.44%(5)
</TABLE>
- ----------------
1 Commencement of Operations.
2 For the period presented, all of the distributions from net investment income
were derived from interest on securities exempt from federal income tax.
3 Total investment return is based on the change in net asset value of a share
during the period and assumes reinvestment of distributions at net asset value
and does not reflect the impact of a sales charge.
4 For the period ended December 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 Annualized.
1 9 9 7 s e m i - a n n u a l r e p o r t 13
<PAGE>
NATIONAL HIGH YIELD MUNICIPAL BOND FUND
NOTES TO FINANCIAL STATEMENTS --
JUNE 30, 1997
(UNAUDITED)
- --------------------------------------------------------------------------------
National High Yield Municipal Bond Fund (formerly Voyageur National High Yield
Municipal Bond Fund)("National High Yield Municipal Bond Fund"), a series of the
Voyageur Mutual Funds, Inc. is registered under the Investment Company Act of
1940 (as amended) as a non-diversified, open-end management investment company.
National High Yield Municipal Bond Fund seeks a high level of current income
exempt from federal income tax primarily through investment in medium- and
lower-grade municipal bonds. National High Yield Municipal Bond Fund (referred
to as a "Fund") offers three classes of shares.
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 adviser to the Fund, Delaware
Distributors, L.P. ("DDLP") became the distributor for the Fund, Delaware
Service Company, Inc. ("DSC") became the transfer, dividend-disbursing,
shareholder servicing agent and accounting service agent for the Fund.
2. Significant Accounting Policies
The following accounting policies are in accordance with generally accepted
accounting principles and are consistently followed by the Fund.
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.
Federal Income Taxes - The Fund intends to continue to qualify as a regulated
investment company and make the requisite distributions to shareholders.
Accordingly, no provision for federal income taxes has been made in the
financial statements. Income and capital gain distributions are determined in
accordance with federal income tax regulations which may differ from generally
accepted accounting principles.
Class Accounting - Investment income, common expenses and realized and
unrealized gain (loss) on investments are allocated to the various classes of
the Fund on the basis of daily net assets of each class. Distribution expenses
relating to a specific class are charged directly to that class.
Other - Expenses common to all Funds within the Delaware-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 Fund declares
dividends from net investment income daily and pays them monthly. Capital gains
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.
<PAGE>
3. Investment Management and Other Transactions with Affiliates Commencing May
1, 1997, and in accordance with the terms of the Investment Management
Agreement, the Fund pays DMC the Investment Manager of the Fund, an annual fee,
which is calculated daily on the average daily net assets of the Fund. The
management fee rates are as follows:
NATIONAL HIGH YIELD
MUNICIPAL BOND FUND
-------------------
Management fee as a percentage of
average daily net assets (per annum) 0.65%
DMC has elected to waive their fee and reimburse the Fund to the extent that
annual operating expenses exclusive of 12b-1 distribution fees, taxes, interest,
brokerage commissions and extraordinary expenses, exceed 0.59% of average daily
net assets for the National High Yield Municipal Bond Fund through December 31,
1997. Total expenses absorbed by DMC for the two month period ended June 30,
1997 is as follows:
NATIONAL HIGH YIELD
MUNICIPAL BOND FUND
-------------------
Total expenses absorbed by DMC. $25,182
Prior to May 1, 1997, the Fund had an investment advisory and management
agreement with Voyageur. Voyageur received a fee for its investment advisory and
management services based on the average daily net assets of each Fund at an
annual rate of .50%. During the period January 1, 1997 to April 30, 1997,
Voyageur waived fees in the amount of $68,098.
Commencing May 1, 1997, the Fund engaged DSC, an affiliate of DMC, to serve as
dividend disbursing, transfer agent and accounting services agent for the Fund.
For the two month period ended June 30, 1997, the amounts expensed for the Fund
were as follows:
NATIONAL HIGH YIELD
MUNICIPAL BOND FUND
-------------------
Dividend disbursing, transfer agent
fees and other expenses................... $5,071
Accounting fees............................ $3,794
Prior to May 1, 1997, the Fund paid a fee to Voyageur for acting as the Fund's
dividend disbursing, administrative and accounting services agent. 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.
On June 30, 1997, the Fund had payables to affiliates as follows:
NATIONAL HIGH YIELD
MUNICIPAL BOND FUND
-------------------
Investment Management fee payable to DMC... $57,491
Dividend disbursing, transfer agent fees,
accounting fees and other expenses
payable to DSC............................ $8,865
Other expenses payable to DMC
and affiliates............................ $24,362
Commencing May 1, 1997, and pursuant to the Distribution Agreement, the Fund
pays DDLP, the Distributor and an affiliate of DMC, an annual fee not to exceed
0.25% of the average daily net assets of the A Class and 1.00% of the average
daily net assets of the B and C Class. For the two-month period ended June 30,
1997, DDLP earned commissions on sales of the National High Yield Municipal Bond
Fund A Class shares of $268.
14 1 9 9 7 s e m i - a n n u a l r e p o r t
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
Prior to May 1, 1997 each class of shares had a Distribution Agreement with
Voyageur Fund Distributors, Inc. ("VFD"). Under the plan the Fund paid VFD a fee
at an annual rate of 0.25% of the average daily net assets of the Class A Shares
and 1.00% of the average daily net assets of the Class B and C Shares.
Certain officers of DMC, DSC and DDLP are officers, directors and/or employees
of the Fund. These officers, directors and employees are paid no compensation by
the Fund.
4. Investments
During the period ended June 30, 1997, the Fund made purchases and sales of
investment securities other than U.S. government securities and temporary cash
investments as follows:
NATIONAL HIGH YIELD
MUNICIPAL BOND FUND
-------------------
Purchases............................. $ 4,150,284
Sales................................. 13,106,286
At June 30, 1997, the aggregate unrealized appreciation (depreciation) for
federal income tax purposes was as follows:
NATIONAL HIGH YIELD
MUNICIPAL BOND FUND
-------------------
Aggregate unrealized appreciation..... $2,525,037
Aggregate unrealized depreciation..... (26,351)
Net unrealized appreciation........... $2,498,686
For federal income tax purposes, the National High Yield Municipal Bond Fund had
a capital loss carryover at December 31, 1996 of $22,229 that will expire in
2004 and 2005.
5. Capital Stock
NATIONAL HIGH YIELD MUNICIPAL BOND FUND
---------------------------------------
SIX MONTHS FIVE MONTHS
ENDED ENDED YEAR ENDED
6/30/97 12/31/96 7/31/96
(UNAUDITED)
Shares sold:
A Class................ 173,655 213,088 253,498
B Class(1)............. 81,332 8,498 N/A
C Class(2)............. 1,918 N/A N/A
NATIONAL HIGH YIELD MUNICIPAL BOND FUND
---------------------------------------
SIX MONTHS FIVE MONTHS
ENDED ENDED YEAR ENDED
6/30/97 12/31/96 7/31/96
(UNAUDITED)
Shares issued upon
reinvestment of dividends
from net investment
income and net realized
gains from security
transactions:
A Class................ 97,912 60,940 245,537
B Class(1)............. 346 0 N/A
C Class(2)............. 7 N/A N/A
------- ------- -------
355,170 282,526 499,035
------- ------- -------
Shares repurchased:
A Class................ (967,685) (819,364) (790,794)
B Class(1)............. (19) 0 N/A
C Class(2)............. 0 N/A N/A
------- ------- -------
(967,704) (819,364) (790,794)
------- ------- -------
Net Decrease............ (612,534) (536,838) (291,759)
======= ======= =======
- -------------------
1 Commenced operations on December 18, 1996.
2 Commenced operations on May 29, 1997.
<PAGE>
6. Concentration of Credit Risk
The Fund concentrates its investments in securities issued by municipalities.
The value of these investments may be adversely affected by new legislation
within the states, regional or local economic conditions, and differing levels
of supply and demand for municipal bonds. Many municipalities insure repayment
for their obligations. Although bond insurance reduces the risk of loss due to
default by an issuer, such bonds remain subject to the risk that market value
may fluctuate for other reasons and there is no assurance that the insurance
company will meet its obligations. These securities have been identified in the
Statement of Net Assets.
The Fund 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 Fund's 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
denoted in the Statement of Net Assets.
VOYAGEUR FUNDS
SHAREHOLDER MEETING RESULTS
- --------------------------------------------------------------------------------
A meeting of the funds' shareholders was held on April 11, 1997. The matters
submitted to a vote of shareholders were the election of new directors and the
approval of a new investment management agreement. Whenever there is a change in
control of an investment manager, the Investment Company Act of 1940 requires
shareholders to vote on a new investment management agreement.
NATIONAL HIGH YIELD MUNICIPAL BOND FUND
NUMBER OF VOTES
------------------------------------------
FOR AGAINST / WITHHELD ABSTENTIONS
------------------------------------------
Walter P. Babich........... 4,960,145 55,078 -
Anthony D. Knerr........... 4,960,145 55,078 -
Ann R. Leven............... 4,960,145 55,078 -
W. Thacher Longstreth...... 4,959,830 55,393 -
Thomas F. Madison.......... 4,960,145 55,078 -
Jeffrey J. Nick............ 4,960,145 55,078 -
Charles E. Peck............ 4,759,828 55,393 200,002
Wayne A. Stork............. 4,960,145 55,078 -
Approval of New Investment
Management Agreement . . . 4,850,988 51,089 113,144
1 9 9 7 s e m i - a n n u a l r e p o r t 15
<PAGE>
THIS SEMI-ANNUAL REPORT IS FOR THE INFORMATION OF NATIONAL HIGH YIELD MUNICIPAL
BOND FUND SHAREHOLDERS, BUT IT MAY BE USED WITH PROSPECTIVE NVESTORS WHEN
PRECEDED OR ACCOMPANIED BY A CURRENT PROSPECTUS FOR NATIONAL HIGH YIELD
MUNICIPAL BOND FUND, WHICH SETS FORTH DETAILS ABOUT CHARGES, EXPENSES,
INVESTMENT OBJECTIVES AND OPERATING POLICIES OF THE FUND. YOU SHOULD READ THE
PROSPECTUS CAREFULLY BEFORE YOU INVEST. SUMMARY INVESTMENT RESULTS ARE
DOCUMENTED IN THE FUND'S CURRENT STATEMENT OF ADDITIONAL INFORMATION. THE
FIGURES IN THIS REPORT REPRESENT PAST RESULTS WHICH ARE NOT A GUARANTEE OF
FUTURE RESULTS. THE RETURN AND PRINCIPAL VALUE OF AN INVESTMENT IN THE FUND WILL
FLUCTUATE SO THAT SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR
ORIGINAL COST.
INVESTMENT MANAGER
Delaware Management Company, Inc.
Philadelphia
NATIONAL DISTRIBUTOR
Delaware Distributors, L.P.
Philadelphia
SHAREHOLDER SERVICING, DIVIDEND DISBURSING AND TRANSFER AGENT
Delaware Service Company, Inc.
Philadelphia
1818 Market Street
Philadelphia, PA 19103-3682
FOR SHAREHOLDERS
1.800.523.1918
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 Fund are
not FDIC or NCUSIF insured, are not guaranteed by any bank or any credit union,
and involve investment risk, including the possible loss of the principal amount
invested. Shares of the Fund are not bank or credit union deposits.
Copy Rights Delaware Distributors, L.P.
Printed in the USA on
recycled paper
(140)
SA-VOYNAT [6/97] PP8/97
