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THE VOYAGEUR FLORIDA INSURED MUNICIPAL INCOME FUND

 MINNEAPOLIS, Nov. 4 /PRNewswire/ -- Voyageur Fund Managers, Inc. today announced The Voyageur Florida Municipal Income Fund (AMEX: VFL) third quarter Manager's Quarterly Report.
 The Economy and Interest Rates: Bond market activity in the third quarter was, in many respects, a repeat of the first two quarters of 1993: Treasury prices rallied as interest rates continued their downward trend. Economic data continued to confirm Voyaguer's previous belief that inflation is under control and will remain subdued over the coming months. Clinton's deficit reduction package passed the House and Senate and will increase individual income tax rates retroactively to Jan. 1, 1993. The combination of tax hikes and modest spending cuts are expected to improve the federal government's financial position. The recent Health Care Reform Proposal is the newest item confronting the markets and, at the very least, is anticipated to be costly. The Tax Bill, in addition to the uncertainty associated with Health Care Reform Proposal, is expected to foster slow economic growth and thereby create a favorable environment for long term bonds. Voyageur continues to have a positive view of the bond market, but has moderated the forecast from extremely bullish to cautious. From this point, Voyageur believes interest rates on the long Treasury bond will hover around 6 percent through the middle part of the decade.
 Municipals: Falling interest rates have fueled several municipal refinancings and the tax exempt bond market has consequently experienced an all-time high in supply. This record high in the supply of bonds has caused the market to become "cheap" on an after-tax basis when compared to the Treasury market. At the present time, municipals offer tremendous value and are as cheap (compared to treasuries) as they have been in over two years. The traditional buyers of tax exempt bonds continue to purchase municipals aggressively. Despite strong demand, supply remains heavy.
 In Voyageur's opinion, the supply of refinancings is finite and will abate by year end. The bulk of the new supply is coming from refinancing and most issuers have already taken advantage of low interest rates. From here, Voyageur would need to see rates move substantially lower to enable the refinancing of 1992 and 1993 issues. Voyageur thinks it is very unlikely that rates can drop dramatically lower than the 6 percent level on the 30-year Treasury. Demand should remain healthy in light of Clinton's proposed higher tax rates. The supply/demand imbalance will correct and the shortage of munis will cause the municipal sector to perform very well relative to other taxable, fixed income investments.
 The Fund (VFL): The portfolio was fully invested on 9/30/93 in insured, long term, non/AMT Florida municipal bonds. Excellent call protection of approximately nine and a half years and a vast majority of higher coupon "cushion" bonds has contributed to the Fund's relatively high net asset value. If long term rates either decline moderately over the fourth quarter or rise by an equivalent amount, the portfolio is well positioned to withstand a finite degree of volatility. Because all the bonds in the insured portfolio are Aaa/AAA by Moody's and/or Standard & Poor's, the liquidity of bonds in the fund has been maximized. Voyageur remains committed to higher investment grade credits. With the narrow quality spreads that exist in today's market, insured Aaa/AAA quality bonds offer the best value for total rate of return investments. At the end of the third quarter the fund was well diversified regarding sectors, with the largest concentration in Water and Sewer 25 percent, Health Care 17 percent, and Public Power Bonds 11.5 percent.
 Market Price/NAV/Average Daily Volume Data
 Month End July August September
 Market Price 14.875 14.50 14.375
 NAV 13.92 14.52 14.73
 Avg. Daily Vol. 795 1,891 5,100
 Dividend Data
 July August September
 Div. Amt.: $.0675 $.0675 $.0675
 Sector Weightings/Credit Qualities
 Water & Sewer 25 pct.
 Health Care 16 pct.
 Public Power 11 pct.
 Other Rev. 10 pct.
 Lease/COP 8 pct.
 Transportation 8 pct.
 General Obligation 8 pct.
 Industrial 7 pct.
 Special Utilities 5 pct.
 Education 2 pct.
 AAA 100 pct.
 Holdings (five largest)
 1. Lakeland FL Hosp Regional Med Ctr -- FGIC
 2. City of Hollywood FL Wtr & Sewer -- FGIC
 3. Charlotte County FL Utility -- FGIC
 4. Lee County FL Capital & Trans Fac -- MBIA
 5. Florida Keys Aqueduct Water Rev -- AMBAC
 Portfolio Statistics
 Weighted Average Maturity 24 years
 Duration 13.01 years
 Percent AMT 0 pct.
 Average Cost Price 98.114
 Average Market Price 102.404
 Average Coupon 5.568 pct.
 Par Value $53.4 million
 -0- 11/4/93
 /CONTACT: John S. Doering of Voyageur Asset Management, 612-376-7048/
 (VFL)


CO: Voyageur Fund Distributors, Inc.; Voyageur Florida Municipal ST: Minnesota IN: FIN SU:

DB-CP -- MN009 -- 0755 11/04/93 13:07 EST
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Publication:PR Newswire
Date:Nov 4, 1993
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