<PAGE>
Money Market Fund
DELAWARE GROUP
Delaware Cash Reserve
1997
Semi-Annual Report
professional management
service and guidance
goals
DELAWARE
GROUP
- --------
<PAGE>
- --------------------------------------------------------------------------------
OCTOBER 10, 1997
Dear Shareholder:
DELAWARE CASH RESERVE PROVIDED A TOTAL RETURN OF +2.43% FOR the six months
ended September 30, 1997 (For A Class shares with dividends reinvested). Our
results outpaced inflation for the first half of fiscal 1998, as shown below.
The seven-day annualized yield for the Fund's A Class shares was 4.87% while
the average maturity of securities in its portfolio was 44 days.
Over the last six months, U.S. economic growth has remained robust
and the unemployment rate has fallen to its lowest level since the early
1970s. Such a combination has historically led to higher inflation. Many
economists believe sustained low unemployment leads employers to raise wages
to attract workers, which, in turn, leads to higher prices as companies pass
on greater labor costs to consumers. However, in the 1990s this scenario has
not materialized as employers have found ways to improve productivity and
keep a lid on costs through technology, relocation of production and
other means.
Since March, the Federal Reserve Board has not increased its target
for short-term interest rates despite investor expectations to the contrary.
Whatever unfolds in the months ahead, Delaware Cash Reserve's management will
constantly monitor interest rate trends as part of our effort to provide you
with a competitive level of income while striving to preserve capital.
Thank you for investing with Delaware Group.
Sincerely,
/s/ Wayne A. Stork
- ------------------
Wayne A. Stork
CHAIRMAN
CUMULATIVE RETURN
- -------------------------------------------------------------
APRIL 1, 1997 - SEPTEMBER 30, 1997
- -------------------------------------------------------------
Delaware Cash Reserve A Class +2.43%
- -------------------------------------------------------------
U.S. Consumer Price Index (Inflation) +1.10%
Lipper Money Market Fund Average (308 funds) +2.44%
- -------------------------------------------------------------
ALL ABOVE PERFORMANCE ASSUMES REINVESTMENT OF DIVIDENDS. THE U.S. CONSUMER
PRICE INDEX IS CALCULATED BY THE U.S. GOVERNMENT AND REPRESENTS THE CHANGE IN
THE PRICE OF GOODS AND SERVICES FOR ALL URBAN CONSUMERS. PERFORMANCE
INFORMATION FOR ALL FUND CLASSES CAN BE FOUND ON PAGE 4.
2 1997 SEMI-ANNUAL REPORT
<PAGE>
Portfolio Manager's Review
U.S. money markets have been stable over the past six months, as the Federal
Reserve Board has repeatedly deferred a hike in the federal funds rate (the
interest rate banks charge each other for overnight loans). The Fed's
forbearance in the face of strong economic growth can be attributed to the
nation's continued low inflation rate. Without a clear threat from rising
prices, the Fed has
WE POSITION THE FUND TO MAXIMIZE INCOME AND MINIMIZE RISK TO PRINCIPAL.
found it unnecessary to increase short-term interest rates, a step usually taken
to rein in an expanding economy and quell inflation. In our opinion, the Fed's
current monetary policy is unlikely to change in the coming months.
Over the last two quarters, the average maturity of the assets held
in Delaware Cash Reserve has fluctuated between 39 and 65 days. We attempt to
maximize income and minimize risk to principal.
Money-market interest rates were exceptionally stable during the
first half of fiscal 1998. In addition, there was no yield advantage
normally associated with buying securities that have longer maturities.
(Government regulations allow your Fund to have an average maturity of up to
90 days). In our opinion, yields are likely to remain relatively stable for
the balance for calendar 1997, assuming inflation remains benign.
Delaware Cash Reserve invests in high quality money market
instruments. All the commercial paper (short-term obligations of
corporations) held by the Fund carry ratings that reflect the highest quality
available from Standard & Poors and Moody's Investors Services, two
nationally recognized securities ratings firms.
We are pleased to report that the Fund's returns remained comfortably
above inflation during the first half of fiscal 1998, enabling you to
maintain the purchasing power of your investment dollars. While the future
can not be guaranteed, we are optimistic about inflation remaining low in the
months ahead and confident that your Fund can remain an attractive short-term
investment.
Gary A. Reed
SENIOR PORTFOLIO MANAGER
October 31, 1997
YOUR FUND'S PORTFOLIO COMPOSITION
As of September 30, 1997
Commercial Paper 54.5%
Certificates of Deposit 7.9%
Floating Rate Notes 7.0%
Short-Term Time Deposits 14.5%
Bank and Term Notes 5.0%
Other 11.1%
1997 SEMI-ANNUAL REPORT 3
<PAGE>
KEEPING AHEAD OF INFLATION
Delaware Cash Reserve A Class Yield vs. U.S. Consumer Price Index (CPI)
September 30, 1992, to September 30, 1997
- --------------------------------------------------------------------------------
Delaware Cash Consumer
Reserve A Class Price Index
- --------------- -----------
Mar-97 2.80% 4.69%
Sep-96 3.00% 4.59%
Mar-96 2.80% 4.49%
Sep-95 2.50% 4.91%
Mar-95 2.90% 5.13%
Sep-94 3.00% 3.89%
Mar-94 2.50% 2.50%
Oct-93 2.80% 2.23%
Sep-93 2.70% 2.23%
Apr-93 3.20% 2.14%
Mar-93 3.10% 2.32%
Sep-92 3.00% 2.78%
Your Fund's yield advantage over inflation grew during the six months ended
September 30, 1997.
PAST PERFORMANCE IS NOT A GUARANTEE OF FUTURE RESULTS. THE U.S. CONSUMER
PRICE INDEX REPRESENTS AVERAGE ANNUALIZED CONSUMER INFLATION AS CALCULATED BY
THE U.S. GOVERNMENT. AN INVESTMENT IN A MONEY MARKET FUND IS NEITHER INSURED
NOR GUARANTEED BY THE U.S. GOVERNMENT. YIELD AND PERFORMANCE OF OTHER FUND
CLASSES VARY DUE TO DIFFERENT CHARGES AND EXPENSES.
DELAWARE CASH RESERVE PERFORMANCE
- --------------------------------------------------------------------------------
RETURNS THROUGH SEPTEMBER 30, 1997
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------
LIFETIME TEN YEARS FIVE YEARS ONE YEAR SEVEN-DAY YIELD
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Class A (Est. 6/30/78) +7.73% +5.32% +3.92% +4.78% 4.87%
Consultant Class (Est. 3/10/88) +7.59% +5.05% +3.66% +4.52% 4.62%
- ---------------------------------------------------------------------------------------------------------
Class B (Est. 5/2/94)
Excluding Sales Charge +3.61% +3.74% 3.87%
Including Sales Charge +2.79% -0.26%
- ---------------------------------------------------------------------------------------------------------
Class C (Est. 11/29/95)
Excluding Sales Charge +3.69% +3.74% 3.87%
Including Sales Charge +3.69% +2.74%
- ---------------------------------------------------------------------------------------------------------
</TABLE>
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. RETURN AND YIELD FLUCTUATE.
ALL PERFORMANCE REFLECTS REINVESTMENT OF DIVIDENDS. MONEY MARKET FUNDS STRIVE TO
MAINTAIN A NET ASSET VALUE OF $1 A SHARE. HOWEVER, THERE IS NO GUARANTEE THAT
THIS GOAL WILL BE MET.
CLASS A SHARES ARE AVAILABLE WITHOUT SALES CHARGES OR ANY 12B-1 FEE.
CONSULTANT CLASS PERFORMANCE AFTER MARCH 31, 1988 REFLECTS THE IMPACT OF A
12B-1 FEE.
CLASS B SHARES DO NOT HAVE A FRONT-END SALES CHARGE, BUT ARE SUBJECT TO A 1%
ANNUAL DISTRIBUTION AND SERVICE FEE. THEY ARE SUBJECT TO A DEFERRED SALES
CHARGE IF REDEEMED BEFORE THE END OF THE SIXTH YEAR.
CLASS C SHARES ARE SUBJECT TO A 1% ANNUAL DISTRIBUTION AND SERVICE FEE AND
WILL BE SUBJECT TO A DEFERRED SALES CHARGE OF UP TO 1% IF REDEEMED WITHIN THE
FIRST 12 MONTHS.
DELAWARE CASH RESERVE CLASSES B AND C ARE AVAILABLE ONLY AS PART OF AN
OVERALL INVESTMENT PROGRAM USING OTHER CLASS B OR CLASS C FUNDS. DIRECT
INVESTMENT INTO DELAWARE CASH RESERVE CLASS B MAY BE MADE ONLY WHEN
ESTABLISHING A WEALTH BUILDER PLAN. LIFETIME PERFORMANCE "EXCLUDING SALES
CHARGE" FOR THESE CLASSES ASSUMES INVESTMENT WAS NOT REDEEMED.
4 1997 SEMI-ANNUAL REPORT
<PAGE>
Financial Statements
DELAWARE GROUP CASH RESERVE, INC.* --
STATEMENT OF NET ASSETS
SEPTEMBER 30, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------
PRINCIPAL MARKET
AMOUNT VALUE
- ------------------------------------------------------------------------------------
<S> <C> <C>
COMMERCIAL PAPER - 54.53%
FINANCIAL SERVICES - 27.02%
ABN-AMRO North American Financial,
Chicago 5.52% 11/10/97 ................. $ 10,000,000 $ 9,938,667
Abbey National N.A. 5.64% 10/01/97 ....... 10,000,000 10,000,000
Abbey National N.A. 5.72% 10/14/97 ....... 8,000,000 7,983,476
Allianz Of America Financal 5.53% 10/15/97 6,590,000 6,575,828
Commonwealth Bank of Australia
5.50% 12/04/97 ......................... 5,000,000 4,951,111
Commonwealth Bank of Australia
5.54% 01/09/98 ......................... 10,000,000 9,846,111
General Electric Capital Corporation
5.47% 11/14/97 ......................... 10,000,000 9,933,144
General Electric Capital Corporation
5.52% 11/17/97 ......................... 9,000,000 8,935,140
General Electric Capital Corporation
5.54% 11/19/97 ......................... 4,000,000 3,969,838
General Re Corporation 5.50% 12/18/97 .... 10,000,000 9,880,833
International-Nederlanden
U.S. Insurance Holdings 5.50% 11/12/97 .. 18,950,000 18,828,314
International-Nederlanden
U.S. Insurance Holdings 5.61% 10/01/97 .. 10,000,000 10,000,000
Met Life Funding 5.52% 11/05/97 .......... 9,000,000 8,951,700
Panasonic Finance 5.50% 10/07/97 ......... 6,000,000 5,994,500
Teco Finance Inc. 5.50% 12/04/97 ......... 4,000,000 3,960,889
USAA Capital Corporation 5.48% 10/14/97 .. 5,265,000 5,254,581
USAA Capital Corporation 5.55% 10/02/97 .. 10,000,000 9,998,458
West Deutsche Landesbank Girozentrale
5.52% 12/17/97 ......................... 9,000,000 8,893,740
West Deutsche Landesbank Girozentrale
5.56% 10/01/97 ......................... 10,000,000 10,000,000
-----------
Total Financial Services ................. 163,896,330
-----------
INDUSTRIAL - 13.47%
Campbell Soup 5.50% 05/11/98 ............. 10,000,000 9,660,833
DuPont (E.I.) DeNemours 5.54% 12/02/97 ... 9,500,000 9,409,359
Golden Peanut Co. 5.51% 11/21/97 ......... 3,000,000 2,976,583
Golden Peanut Co. 5.54% 12/04/97 ......... 2,000,000 1,980,302
Henkel 5.53% 11/04/97 ................... 10,000,000 9,947,772
Hershey Foods 5.47% 10/21/97 ............. 9,500,000 9,471,131
Hershey Foods 5.47% 11/03/97 ............. 8,500,000 8,457,380
Hershey Foods 5.49% 12/03/97 ............. 10,000,000 9,903,925
Schering-Plough 5.70% 10/21/97 ........... 10,000,000 9,968,333
Zeneca Wilmington 5.52% 11/21/97 ......... 10,000,000 9,921,800
----------
Total Industrial ......................... 81,697,418
----------
</TABLE>
- ------------------
*This fund is known and does business as Delaware Cash Reserve.
<PAGE>
Financial Statements
DELAWARE GROUP CASH RESERVE, INC.* --
STATEMENT OF NET ASSETS
SEPTEMBER 30, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------
PRINCIPAL MARKET
AMOUNT VALUE
- ------------------------------------------------------------------------------------
<S> <C> <C>
COMMERCIAL PAPER (CONTINUED)
MORTGAGE BANKERS & BROKERS - 14.04%
Bear Stearns Cos 5.51% 10/06/97 .......... $ 10,000,000 $ 9,992,347
Bear Stearns Cos 5.52% 11/03/97 .......... 9,000,000 8,954,460
CS First Boston 5.50% 11/04/97 ........... 7,000,000 6,963,639
CS First Boston 5.52% 11/19/97 ........... 5,000,000 4,962,433
CS First Boston 5.70% 10/21/97 ........... 10,000,000 9,968,333
Merrill Lynch 5.52% 12/15/97 ............. 10,000,000 9,885,000
Morgan, J.P. & Co. 5.50% 10/27/97 ........ 9,535,000 9,497,125
Morgan Stanley Dean Witter Discover
5.50% 10/14/97 ......................... 10,000,000 9,980,139
Morgan Stanley Dean Witter Discover
5.51% 10/07/97 ......................... 10,000,000 9,990,817
Morgan Stanley Dean Witter Discover
5.52% 11/18/97 ......................... 5,000,000 4,963,200
-----------
Total Mortage Bankers & Brokers .......... 85,157,493
-----------
Total Commercial Paper ................... 330,751,241
-----------
CERTIFICATES OF DEPOSIT - 7.91%
EURO-CERTIFICATES OF DEPOSITS - 1.65%
Toronto-Dominion 5.59% 10/23/97 .......... 10,000,000 10,000,121
-----------
Total Euro Certificates of Deposit ....... 10,000,121
-----------
YANKEE CERTIFICATES OF DEPOSITS - 6.26%
ABN-AMRO North American Financial, Chicago
6.03% 06/11/98 ......................... 5,000,000 5,000,298
Bank of Nova Scotia, Portland
5.59% 11/26/97 ......................... 10,000,000 10,000,153
Canadian Imperial Bank Company, New York
5.57% 11/19/97 ......................... 5,000,000 4,999,711
Landesbank Hessen-Thuringen, New York
5.94% 06/19/98 ......................... 8,000,000 7,995,844
Wilmington Trust 5.64% 11/12/97 .......... 10,000,000 10,000,000
-----------
Total Yankee Certificates of Deposit ..... 37,996,006
-----------
Total Certificates of Deposit ............ 47,996,127
-----------
</TABLE>
1997 semi-annual report 5
<PAGE>
Delaware Group Cash Reserve Inc.
Statement of Net Assets (Continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------
PRINCIPAL MARKET
AMOUNT VALUE
- ---------------------------------------------------------------------------------------------
<S> <C> <C>
+FLOATING RATE NOTES - 7.01%
CS First Boston-Floating Rate Medium Term Note
5.67% 07/22/98 ................................. $ 5,000,000 $ 5,000,000
Federal Farm Credit Bank-Medium Term
Note 5.55% 02/20/98 ............................ 8,000,000 7,998,179
Key Bank New York-Floating Rate Note
5.85% 10/02/98 ................................. 11,500,000 11,506,203
Merrill Lynch- Floating Rate Note
5.82% 04/06/98 ................................. 10,000,000 10,000,000
Student Loan Marketing Association-Medium
Term Note 5.21% 10/03/97 ....................... 8,000,000 7,999,975
------------
Total Floating Rate Notes ........................ 42,504,357
------------
SHORT-TERM TIME DEPOSITS - 14.52%
Bayerische Hypo, New York 6.50% 10/01/97 ......... 25,000,000 25,000,000
Branch Bank & Trust, Caymen Islands
6.38% 10/01/97 ................................. 13,076,000 13,076,000
Den Danske Bank, New York
6.50% 10/01/97 ................................. 25,000,000 25,000,000
Norddeutsche Landesbank, New York
6.38% 10/01/97 ................................. 25,000,000 25,000,000
------------
Total Short-Term Time Deposits ................... 88,076,000
------------
MISCELLANEOUS INVESTMENTS - 4.94%
Bank of America-Bank Note 5.52% 11/21/97 ......... 6,000,000 5,999,510
Bank of America-Bank Note 5.58% 10/21/97 ......... 10,000,000 10,000,055
Eli Lilly-Medium Term Note 6.13% 11/06/97 ........ 6,000,000 6,001,168
Northern Trust-Bank Note 5.96% 06/17/98 .......... 8,000,000 7,997,830
------------
Total Miscellaneous Investments .................. 29,998,563
------------
TOTAL MARKET VALUE OF SECURITIES OWNED
(cost $539,326,288) - 88.91% ................... $539,326,288
RECEIVABLES AND OTHER ASSETS
NET OF LIABILITIES - 11.09% .................... 67,253,936
------------
NET ASSETS APPLICABLE TO 566,851,449 DELAWARE CASH
RESERVE A CLASS SHARES, 6,154,941 DELAWARE CASH
RESERVE B CLASS SHARES, 2,439,883 DELAWARE CASH
RESERVE C CLASS SHARES, 31,133,951 DELAWARE CASH
RESERVE CONSULTANT SHARES OUTSTANDING; EQUIVALENT
TO $1.00 PER SHARE - 100.00% ................... $606,580,224
------------
</TABLE>
- ---------------------
+For Floating Rate Notes, the interest rate shown is the rate as of September
30, 1997, and the maturity date shown is the longer of the next interest
readjustment date or the date the principal amount shown can be recovered
through demand.
See accompanying notes
<PAGE>
DELAWARE GROUP CASH RESERVE, INC. --
STATEMENT OF ASSETS AND LIABILITIES
SEPTEMBER 30, 1997
(UNAUDITED)
- --------------------------------------------------------------------------------
ASSETS:
Investments at market (cost $539,326,288) ..... $539,326,288
Subscriptions receivable ...................... 69,920,094
Dividends and interest receivable ............. 1,640,000
Cash .......................................... 747
Other assets .................................. 18,448
------------
Total assets ................................. 610,905,577
------------
LIABILITIES:
Liquidations payable .......................... 3,741,386
Other accounts payable and accrued expenses ... 583,967
------------
Total liabilities ............................ 4,325,353
------------
TOTAL NET ASSETS .............................. $606,580,224
============
See accompanying notes
6 1997 semi-annual report
<PAGE>
DELAWARE GROUP CASH RESERVE, INC. --
STATEMENT OF OPERATIONS
SIX MONTHS ENDED SEPTEMBER 30, 1997
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
<S> <C>
INVESTMENT INCOME:
Interest ..................................... $16,589,285
-----------
EXPENSES:
Management fees ($1,449,909) and directors'
fees ($10,933) ............................. 1,460,842
Dividend disbursing and transfer agent
fees and expenses ........................... 725,783
Accounting fees and salaries ................. 156,204
Distribution expense ......................... 100,767
Professional fees ............................ 25,500
Registration fees ............................ 18,390
Reports and statements to shareholders ....... 17,096
Custodian fees ............................... 13,055
Taxes (other than taxes on income) ........... 277
Other ........................................ 12,129
---------
2,530,043
-----------
NET INVESTMENT INCOME ........................ 14,059,242
-----------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS .................... $14,059,242
===========
</TABLE>
See accompanying notes
<PAGE>
DELAWARE GROUP CASH RESERVE, INC. --
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SIX MONTHS YEAR
ENDED ENDED
9/30/97 3/31/97
UNAUDITED
- -----------------------------------------------------------------------------------------
<S> <C> <C>
INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS:
Net investment income ................. $ 14,059,242 $ 26,570,901
--------------- ---------------
DISTRIBUTION TO SHAREHOLDERS FROM:
Net investment income:
Delaware Cash Reserve A Class ........ (13,283,924) (25,574,118)
Delaware Cash Reserve B Class ........ (152,686) (204,095)
Delaware Cash Reserve C Class ........ (44,453) (31,607)
Delaware Cash Reserve Consultant Class (578,179) (761,081)
--------------- ---------------
(14,059,242) (26,570,901)
--------------- ---------------
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold:
Delaware Cash Reserve A Class ........ 1,471,895,066 1,641,997,821
Delaware Cash Reserve B Class ........ 27,207,431 26,424,821
Delaware Cash Reserve C Class ........ 3,465,503 5,457,412
Delaware Cash Reserve Consultant Class 176,239,611 193,065,655
Net asset value of shares issued upon
reinvestment of dividends from net
investment income
Delaware Cash Reserve A Class ........ 12,355,330 24,611,275
Delaware Cash Reserve B Class ........ 113,528 186,993
Delaware Cash Reserve C Class ........ 38,490 30,039
Delaware Cash Reserve Consultant Class 506,324 728,644
--------------- ---------------
1,691,821,283 1,892,502,660
--------------- ---------------
Cost of shares repurchased:
Delaware Cash Reserve A Class ........ (1,512,275,949) (1,657,217,020)
Delaware Cash Reserve B Class ........ (34,153,844) (21,751,102)
Delaware Cash Reserve C Class ........ (3,862,657) (2,992,976)
Delaware Cash Reserve Consultant Class (169,080,122) (190,670,002)
--------------- ---------------
(1,719,372,572) (1,872,631,100)
Increase (Decrease) in net assets
derived from capital share transactions (27,551,289) 19,871,560
--------------- ---------------
NET INCREASE (DECREASE) IN
NET ASSETS ........................... (27,551,289) 19,871,560
--------------- ---------------
NET ASSETS:
Beginning of period ................... 634,131,513 614,259,953
--------------- ---------------
End of period ......................... $ 606,580,224 $ 634,131,513
=============== ===============
</TABLE>
See accompanying notes
1997 SEMI-ANNUAL REPORT 7
<PAGE>
DELAWARE GROUP CASH RESERVE, INC.
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Selected data for each share of the Fund outstanding throughout each period
were as follows:
<TABLE>
<CAPTION>
Delaware Cash Reserve Class A
----------------------------------------------------------------------
Six Months(1) Year Year Year Year Year
Ended Ended Ended Ended Ended Ended
9/30/97 3/31/97 3/31/96 3/31/95 3/31/94 3/31/93
(Unaudited)
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $1.0000 $ 1.0000 $ 1.0000 $ 1.0000 $1.0000 $ 1.0000
Income from investment operations:
Net investment income ................... 0.0241 0.0452 0.0490 0.0394 0.0227 0.0283
------- -------- -------- -------- ------- --------
Net increase in net assets from
investment operations .................. 0.0241 0.0452 0.0490 0.0394 0.0227 0.0283
------- -------- -------- -------- ------- --------
Less dividends and distributions:
Dividends from net investment income (0.0241) (0.0452) (0.0490) (0.0394) (0.0227) (0.0283)
------- -------- -------- -------- ------- --------
Total dividends and distributions ....... (0.0241) (0.0452) (0.0490) (0.0394) (0.0227) (0.0283)
------- -------- -------- -------- ------- --------
Net asset value, end of period ........... $1.0000 $ 1.0000 $ 1.0000 $ 1.0000 $1.0000 $ 1.0000
======= ======== ======== ======== ======= ========
Total return ............................. 2.43% 4.61% 5.01% 4.01% 2.28% 2.87%
Ratios and supplemental data:
Net assets, end of period (000 omitted) $566,851 $594,877 $585,485 $605,993 $699,112 $672,034
Ratio of expenses to average net assets 0.83% 0.88% 0.95% 1.01% 1.00% 0.90%
Ratio of net investment income to average
net assets ............................. 4.80% 4.52% 4.90% 3.91% 2.27% 2.88%
</TABLE>
- ------------------
(1)Ratios have been annualized and total return has not been annualized.
8 1997 SEMI-ANNUAL REPORT
<PAGE>
Financial Highlights (Continued)
- --------------------------------------------------------------------------------
Selected data for each share of the Fund outstanding throughout each period
were as follows:
<TABLE>
<CAPTION>
Delaware Cash Reserve Class B Delaware Cash Reserve Class C
---------------------------------------------------------------------------------
Six Months(1) Year Year Period Six Months(1) Year Period
Ended Ended Ended 9/6/94(2) Ended Ended 11/29/95(3)
9/30/97 3/31/97 3/31/96 to 9/30/97 3/31/97 to
(Unaudited) 3/31/95 (Unaudited) 3/31/96
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period . $1.0000 $ 1.0000 $1.0000 $1.0000 $1.0000 $1.0000 $1.0000
Income from investment operations:
Net investment income ............... 0.0191 0.0352 0.0390 0.0279 0.0191 0.0351 0.0124
------- -------- ------- ------- ------- ------- -------
Net increase in net assets from
investment operations ............... 0.0191 0.0352 0.0390 0.0279 0.0191 0.0351 0.0124
------- -------- ------- ------- ------- ------- -------
Less dividends and distributions:
Dividends from net investment income (0.0191) (0.0352) (0.0390) (0.0279) (0.0191) (0.0351) (0.0124)
------- -------- ------- ------- ------- ------- -------
Total dividends and distributions ... (0.0191) (0.0352) (0.0390) (0.0279) (0.0191) (0.0351) (0.0124)
------- -------- ------- ------- ------- ------- -------
Net asset value, end of period ....... $ 1.0000 $1.0000 $1.0000 $1.0000 $1.0000 $1.0000 $1.0000
======= ======== ======= ======= ======= ======= =======
Total return(4)....................... 1.92% 3.58% 3.97% 3.10% 1.92% 3.58% 1.24%
Ratios and supplemental data:
Net assets, end of period
(000 omitted) ....................... $ 6,155 $12,988 $ 8,127 $ 1,088 $ 2,440 $ 2,799 $ 304
Ratio of expenses to average
net assets .......................... 1.83% 1.88% 1.95% 2.01% 1.83% 1.88% 1.95%
Ratio of net investment income to
average net assets ................. 3.80% 3.52% 3.90% 2.91% 3.80% 3.52% 3.90%
</TABLE>
- --------------------
(1) Ratios have been annualized and total return has not been annualized.
(2) Date of initial public offering; ratios and total return have been
annualized.
(3) Date of initial public offering; ratios and total return has not been
annualized.
(4) Does not include contingent deferred sale charge, which varies from 1%-4%
for Delaware Cash Reserve B Class and 1% for Delaware Cash Reserve C Class,
depending upon the holding period.
10 1997 SEMI-ANNUAL REPORT
<PAGE>
Financial Highlights (Continued)
<TABLE>
<CAPTION>
DELAWARE CASH RESERVE CONSULTANT CLASS
---------------------------------------------------------------------
Six Months(1) Year Year Year Year Year
Ended Ended Ended Ended Ended Ended
9/30/97 3/31/97 3/31/96 3/31/95 3/31/94 3/31/93
(Unaudited)
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period ...... $1.0000 $1.0000 $1.0000 $1.0000 $1.0000 $ 1.0000
Income from investment operations:
Net investment income .................... 0.0228 0.0427 0.0465 0.0369 0.0202 0.0259
------- ------- ------- ------- ------- --------
Net increase in net assets from
investment operations ................... 0.0228 0.0427 0.0465 0.0369 0.0202 0.0259
------- ------- ------- ------- ------- --------
Less dividends and distributions:
Dividends from net investment income ..... (0.0228) (0.0427) (0.0465) (0.0369) (0.0202) (0.0259)
------- ------- ------- ------- ------- --------
Total dividends and distributions ........ (0.0228) (0.0427) (0.0465) (0.0369) (0.0202) (0.0259)
------- ------- ------- ------- ------- --------
Net asset value, end of period ............ $1.0000 $1.0000 $1.0000 $1.0000 $1.0000 $ 1.0000
======= ======= ======= ======= ======= ========
Total return .............................. 2.31% 4.36% 4.75% 3.75% 2.04% 2.62%
Ratios and supplemental data:
Net assets, end of period (000
omitted) ................................ $31,134 $23,468 $20,344 $18,386 $22,561 $13,191
Ratio of expenses to average net
assets .................................. 1.08% 1.13% 1.20% 1.26% 1.25% 1.15%
Ratio of net investment income to
average net assets ...................... 4.55% 4.27% 4.65% 3.66% 2.02% 2.63%
</TABLE>
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(1) Ratios have been annualized and total return has not been annualized.
See accompanying notes
10 1997 SEMI-ANNUAL REPORT
<PAGE>
DELAWARE GROUP CASH RESERVE, INC.
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 1997
(UNAUDITED)
- --------------------------------------------------------------------------------
Delaware Group Cash Reserve, Inc. (The "Fund") is registered as a diversified
open-end investment company under the Investment Company Act of 1940, as
amended. The Fund is organized as a Maryland Corporation and offers four
classes of shares. The Cash Reserve Class A and the Cash Reserve Consultant
Class have no sales charge. The Cash Reserve Class B carries a back-end
deferred sales charge and the Cash Reserve Class C carries a level load
deferred sales charge. The Fund's objective is to seek to provide current
income by investing in high-quality money market instruments with maturities
of no more than 13 months. Though there is no guarantee that this goal will
be met, the Fund strives to maintain a stable net asset value of $1.00.
1. Significant Accounting Policies
The following accounting policies are in accordance with generally accepted
accounting principles and are consistently followed by the Fund.
Security Valuation - Securities are valued at amortized cost which
approximates market value. Security transactions are recorded on the date the
securities are purchased or sold (trade date).
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.
Class Accounting - Investment income and common expenses 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.
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.
Other - Expenses common to all Funds within the Delaware Group of Funds are
allocated amongst the funds on the basis of average net assets. Premiums and
discounts are amortized on a pro-rata basis and included in interest income.
The Fund declares dividends daily from net investment income and pays such
dividends monthly.
2. Investment Management and Other Transactions with Affiliates
In accordance with the terms of the Investment Management Agreement, the Fund
pays Delaware Management Company, Inc. (DMC) the Investment Manager of the
Fund, an annual fee which is calculated daily at the following rates: 0.50%
of the first $500 million of average daily net assets of the Fund, 0.475% on
the next $250 million, 0.45% on the next $250 million, 0.425% on the next
$250 million, 0.375% on the next $250 million, 0.325% on the next $250
million, 0.3% on the next $250 million and 0.275% on the average daily net
assets over $2 billion, less the fees paid to the unaffiliated directors. At
September 30, 1997, the Fund had a liability for Investment Management Fees
and other expenses payable to DMC of $79,383.
<PAGE>
The Fund has engaged Delaware Service Company, Inc. (DSC), an affiliate of
DMC, to serve as dividend disbursing, accounting and transfer agent for the
Fund. For the period ended September 30, 1997, the Fund expensed $725,783 for
dividend disbursing and transfer agent services and $105,596 for accounting
services. At September 30, 1997, the Fund had a liability for such fees and
other expenses payable to DSC for $19,991.
Pursuant to the Distribution Agreement, the Fund pays Delaware Distributors,
L.P. (DDLP), the Distributor and an affiliate of DMC, an annual fee not to
exceed 0.25% of the average daily net assets of the Consultant Class and
1.00% of the average daily net assets of the B and C Class.
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.
3. Capital Stock
Transactions in Capital Stock shares of the Fund were as follows:
SIX MONTHS
ENDED YEAR ENDED
9/30/97 3/31/97
------------- ------------
Shares sold:
Delaware Cash Reserve A Class ....... 1,471,895,066 863,751,720
Delaware Cash Reserve B Class ....... 27,207,431 13,054,027
Delaware Cash Reserve C Class ....... 3,465,503 664,891
Delaware Cash Reserve Consultant Class 176,239,611 162,437,882
Shares issued upon reinvestment of
dividends from net investment income:
Delaware Cash Reserve A Class ....... 12,355,330 27,828,422
Delaware Cash Reserve B Class ....... 113,528 68,533
Delaware Cash Reserve C Class ....... 38,490 1,592
Delaware Cash Reserve Consultant Class 506,324 803,490
------------- -------------
1,691,821,283 1,068,610,557
------------- -------------
Shares repurchased:
Delaware Cash Reserve A Class ....... (1,512,275,949) (912,087,916)
Delaware Cash Reserve B Class ....... (34,153,844) (6,083,457)
Delaware Cash Reserve C Class ....... (3,862,657) (362,411)
Delaware Cash Reserve Consultant Class (169,080,122) (161,283,826)
-------------- --------------
(1,719,372,572)(1,079,817,610)
-------------- --------------
Net Decrease ......................... (27,551,289) (11,207,053)
============== ==============
1997 SEMI-ANNUAL REPORT 11
<PAGE>
THIS SEMI-ANNUAL REPORT IS FOR THE INFORMATION OF DELAWARE CASH RESERVE
SHAREHOLDERS, BUT IT MAY BE USED WITH PROSPECTIVE INVESTORS WHEN PRECEDED OR
ACCOMPANIED BY A CURRENT PROSPECTUS, 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.
DELAWARE
GROUP
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Printed in the USA on
recycled paper
(306)
SA-008 [9/97] PP11/97
