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VOYAGEUR FUNDS LAUNCHES FIRST DOUBLE TAX EXEMPT MUTUAL FUND FOR IOWA RESIDENTS

 MINNEAPOLIS, Sept. 1 /PRNewswire/ -- Voyageur Funds, a Minneapolis based investment management firm, has introduced the first double tax exempt mutual fund designed specifically for Iowa residents.
 The Voyageur Iowa Tax Free Fund offers individual investors a portfolio of high quality Iowa municipal bonds and territorial bonds. Monthly interest paid to Fund shareholders will be exempt from both Federal income tax and Iowa state income tax.
 "Normally, independent investors have difficulty acquiring individual double tax exempt Iowa municipal bonds," says Voyageur President John G. Taft. "The supply of double tax exempt issues is limited in Iowa and the purchasing power of the individual investor is far less than that of institutional investors such as banks and insurance companies. Using a mutual fund as an investment vehicle allows the individual investor to take advantage of larger buying power for themselves," Taft said.
 With a maximum Iowa state marginal tax bracket of nearly 10 percent, many Iowa residents can benefit greatly from double tax-exempt income compared to Federal (only) tax exempt income or taxable fixed income investments. For example, for investors in the 31 percent Federal tax bracket, a hypothetical double tax free yield of 5 percent equates to a taxable equivalent yield of 8.2 percent. A Federal (only) tax exempt yield of 5 percent equates to only a 7.2 percent taxable equivalent yield.
 Under the Deficit Reduction Act recently signed into law by President Clinton, the maximum Federal/Iowa state combined statutory tax bracket has soared to 46.5 percent. Thus, tax exempt municipal bond funds have become a better investment for a greater number of Iowa taxpayers.
 Voyageur currently manages over $5.5 billion in assets for individual and institutional investors including 22 tax exempt municipal bond funds for residents of Arizona, California, Colorado, Florida, Kansas, Iowa, Minnesota, Missouri, New Mexico, North Dakota, Oregon, Utah, Washington and Wisconsin.
 -0- 9/1/93
 /CONTACT: John G. Taft, 612-376-7040, Dale L. Kurtz, 612-376-7049, or Elizabeth H. Howell, 612-376-7066, all of The Voyageur Companies/


CO: The Voyageur Companies ST: Minnesota, Iowa IN: FIN SU:

JL-DJ -- NE017 -- 8107 09/01/93 16:39 EDT
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Publication:PR Newswire
Date:Sep 1, 1993
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