Voyageur's New York, Florida, Arizona and California funds will give Delaware an entree to target investors in those high demand states. In addition to its traditional value equity and fixed income products, Delaware will be able to introduce its growth and income and international equity product to Voyageur-fund investors. Lincoln National provides a powerful marketing force for Voyageur's product. In addition to Delaware's wholesalers, who cover banks, wirehouses and regional brokers, LNC's equity sales unit presents a significant marketing force. Lincoln National's 2,000 career agents will also use Voyageur products to increase penetration in new markets.
Growth is a primary goal for Delaware's fund business.
Over the past two years Delaware made progress in turning the trend of mutual fund net flows, which are the excess of new commitments of client cash over withdrawals. Lately, inflows have been supplemented by the significant expansion of Delaware's variable annuity and wrap businesses in 1996. Voyageur has held its market share over the last three years, a period in which the tax-free bond industry has shown no asset growth. The current transaction prepares both firms for the resumption of growth in the municipal industry. Lincoln National's timing was surely favorable, because transaction pricing will rise inevitably with the return of investors to the sector.