<PAGE>
MONEY MARKET FUND
(various photos demonstrating service and guidance, professional management
and goals)
DELAWARE CASH RESERVE
service and guidance
professional management
goals
1998
ANNUAL
REPORT
(logo here)
<PAGE>
A TRADITION OF SOUND INVESTING
commitment
A Commitment To Our Investors
Delaware Investments has a tradition of money management that dates back to
1929. We have a long and distinguished history of helping individuals and
institutions - including some of America's largest pension funds - reach their
financial goals.
Headquartered in Philadelphia, a block from the nation's oldest stock
exchange, the Delaware organization established its first mutual fund in 1938.
Delaware International Advisers Ltd., our international affiliate, was
established in 1990 and is headquartered in London.
Delaware Investments offers a full range of mutual funds. We also manage
investments for variable annuity products, unit investment trusts and closed-end
funds, and offer retirement plan services for individuals and businesses.
Delaware manages more than $45 billion in mutual fund assets and
institutional advisory accounts for more than half-a-million investors. We're
part of a global financial service and investment management business owned by
Lincoln National Corporation, whose subsidiaries manage more than $120 billion
in assets.
(photo of keyboard)
(photo of illustration from Money Market Brochure)
DELAWARE CASH RESERVE OBJECTIVE
To provide maximum current income while preserving principal and maintaining
liquidity.
YOUR FUND'S PORTFOLIO MANAGER
CYNTHIA I. ISOM HOLDS A BACHELOR'S DEGREE FROM VASSAR COLLEGE. AFTER EIGHT YEARS
IN THE SECURITIES BUSINESS, SHE JOINED DELAWARE IN 1985 AS A TRADER OF MONEY
MARKET, HIGH QUALITY CORPORATE AND U.S. TREASURY SECURITIES. SHE PREVIOUSLY
WORKED FOR MERRILL LYNCH IN INSTITUTIONAL SALES.
(photo of Cynthia I. Isom
CYNTHIA I. ISOM
Vice President/Portfolio Manager)
money market
<PAGE>
April 17, 1998
for current
income
1
Dear Shareholder:
DURING THE 12 MONTHS ENDED March 31, 1998, Delaware Cash Reserve provided a
total return of 4.88% (Class A shares with dividends reinvested). This handily
beat inflation as shown below.*
Unemployment fell to its lowest level in a generation and we were
concerned that wage pressures and increased consumer confidence would be
precursors to higher inflation. However, the Fed's monetary policy during fiscal
1998 helped keep both consumer and producer price increases modest.
U.S. fixed income markets during fiscal 1998 were characterized by a
contracting yield curve, meaning the difference between long-term and short-term
interest rates steadily narrowed.
This trend benefited money market investors since securities maturing in
90 days or less provided much of the same yield as longer term bonds, but with
much less potential price risk.
On page 2, Cynthia I. Isom explains Delaware Cash Reserve's portfolio
positioning during fiscal 1998's low interest rate environment. Ms. Isom was
named portfolio manager of Delaware Cash Reserve on April 16, 1998. She has been
a trader of fixed-income securities at Delaware for more than a decade, and
prior to her promotion assisted Gary A. Reed, your Fund's former manager. Mr.
Reed now focuses on managing high quality, long-term taxable bond portfolios for
Delaware's growing stable of retail mutual funds and institutional accounts.
Delaware Cash Reserve continues to invest in high quality money market
securities while striving to maximize income, preserve principal and maintain
liquidity. We are pleased to report that we have consistently achieved our
objectives and during the past year maintained a yield more than three times the
rate of inflation. This helped not only preserve but modestly increase the
purchasing power of your investment dollars.
Sincerely,
/s/ Wayne A. Stork
WAYNE A. STORK
Chairman
/s/ Jeffrey J. Nick
JEFFREY J. NICK
President and Chief Executive Officer
TOTAL RETURN
APRIL 1, 1997 TO MARCH 31, 1998
- --------------------------------------------------------------------------------
Delaware Cash Reserve A Class* +4.88%
U.S. Consumer Price Index +1.40%
Lipper Money Fund Average (308 Funds) +4.96%
- --------------------------------------------------------------------------------
All fund performance shown above 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
and yield of other Fund classes, shown on page 3, varies due to different
expenses.
*The seven-day yield as of March 31, 1998 was 4.67%.
<PAGE>
for current
income
2
Portfolio Manager's Review
INVESTOR CONCERN REGARDING HIGHER interest rates faded in the past year as
the economic crisis in Asia unfolded and domestic consumer prices remained
flat. We believe this prompted the Federal Reserve Board to maintain its
interest rate target at relatively low levels during fiscal 1998. This policy
was confirmed at the Fed's meeting on March 31, 1998.
In a low interest rate environment we sought to uphold the Fund's yield
by increasing the allocation to commercial paper, from approximately 55% at
mid-year to 69.7% at year's end. Commercial paper is short-term debt obligation
issued by corporations and banks and comprises the largest share of all
short-term debt instruments issued.
In seeking to maximize income, we carefully monitor the credit quality
of the Fund's investments in commercial paper. We only purchase money market
instruments with a rating of A1 or P1 - the highest credit ratings by Standard &
Poor's or Moody's Investors Service - two of the best known independent bond
rating agencies.
The average effective maturity of the Fund has been kept within a range
of 45 to 55 days during fiscal 1998 and stood at 47 days at year's end. While
the Securities and Exchange Commission (SEC) permits money market Funds to have
a maturity as long as 90 days, we believe it was prudent to stay within a two
month maturity. In the prevailing market, we felt longer-term securities did not
offer significant additional yield, so there was minimal marginal return for the
additional risk of owning securities with longer maturities.
Despite robust new home sales and growth in Americans' individual income
- - signs that have traditionally sparked inflation - the Fed has expressed
concern that the full impact of Asia's financial crises has yet to be felt in
the U.S. Turmoil along the Pacific Rim - including Japan - may have further
impact on the U.S. economy, and we believe the Fed will be reluctant to raise
interest rates during the summer.
In the meantime, we are keeping a watchful eye on consumer and producer
price increases to gauge their potential effect on markets, monetary policy and
your Fund's yield during the coming year.
CYNTHIA I. ISOM
Vice President/Portfolio Manager
April 17, 1998
IN A LOW INTEREST RATE ENVIRONMENT WE SOUGHT TO UPHOLD THE FUND'S YIELD BY
INCREASING THE ALLOCATION TO COMMERCIAL PAPER, FROM APPROXIMATELY 55% AT
MID-YEAR TO 69.7% AT YEAR'S END.
PORTFOLIO COMPOSITION
- ----------------------------
AS OF MARCH 31, 1998
Commercial Paper 69.7%
Short-Term Time Deposits 12.0%
Certificates of Deposit 8.7%
Floating Rate Notes 8.3%
Other 1.3%
<PAGE>
for current
income
3
Performance Summary
DELAWARE CASH RESERVE'S
YIELD ADVANTAGE OVER INFLATION
- -------------------------------
MARCH 31, 1993 TO MARCH 31, 1998
DELAWARE
CASH
RESERVE A CLASS CONSUMER PRICE
YIELD INDEX
----- -----
3/31/93 2.32% 3.10%
4/30/93 2.14% 3.20%
5/31/93 2.20% 3.20%
6/30/93 2.26% 3.00%
7/31/93 2.26% 2.80%
8/31/93 2.24% 2.80%
9/30/93 2.23% 2.70%
10/31/93 2.23% 2.80%
11/30/93 2.26% 2.70%
12/31/93 2.29% 2.70%
1/31/94 2.27% 2.50%
2/28/94 2.36% 2.50%
3/31/94 2.50% 2.50%
4/30/94 2.72% 2.40%
5/31/94 3.08% 2.30%
6/30/94 3.17% 2.50%
7/31/94 3.44% 2.80%
8/31/94 3.62% 2.90%
9/30/94 3.89% 3.00%
10/31/94 4.01% 2.60%
11/30/94 4.45% 2.70%
12/31/94 4.88% 2.70%
1/31/95 4.85% 2.80%
2/28/95 5.09% 2.90%
3/31/95 5.13% 2.90%
4/30/95 5.17% 3.10%
5/31/95 5.20% 3.20%
6/30/95 5.13% 3.00%
7/31/95 5.03% 2.80%
8/31/95 4.93% 2.60%
9/30/95 4.91% 2.50%
10/31/95 4.88% 2.80%
11/30/95 4.92% 2.60%
12/31/95 4.82% 2.50%
1/31/96 4.70% 2.70%
2/28/96 4.47% 2.70%
3/31/96 4.49% 2.80%
4/30/96 4.44% 2.90%
5/31/96 4.45% 2.90%
6/30/96 4.53% 2.80%
7/31/96 4.58% 3.00%
8/31/96 4.55% 2.90%
9/30/96 4.59% 3.00%
10/31/96 4.55% 3.00%
11/30/96 4.58% 3.30%
12/31/96 4.61% 3.30%
1/31/97 4.57% 3.00%
2/28/97 4.53% 3.00%
3/31/97 4.69% 2.80%
4/30/97 4.76% 2.50%
5/31/97 4.80% 2.20%
6/30/97 4.85% 2.30%
7/31/97 4.87% 2.20%
8/31/97 4.85% 2.20%
9/30/97 4.87% 2.20%
10/31/97 4.72% 2.10%
11/30/97 4.78% 1.80%
12/31/97 4.79% 1.70%
1/31/98 4.74% 1.60%
2/28/98 4.73% 1.40%
3/31/98 4.67% 1.40%
<PAGE>
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. As investment in a money market fund is neither insured nor
guaranteed by the U.S. government. Yield of other Fund classes vary due to
different charges and expenses.
<TABLE>
<CAPTION>
DELAWARE CASH RESERVE PERFORMANCE
- --------------------------------------------------------------------------------------------------------
RETURNS THROUGH MARCH 31, 1998
<S> <C> <C> <C> <C> <C>
March 31, 1998
Lifetime Ten Years Five Years One Year Seven-Day Yield
- --------------------------------------------------------------------------------------------------------
Class A (Est 6/30/78) +7.66% +5.22% +4.16% +4.88% 4.67%
- --------------------------------------------------------------------------------------------------------
Consultant Class (Est. 3/10/88) +7.51% +4.96% +3.90% +4.62% 4.42%
- --------------------------------------------------------------------------------------------------------
Class B (Est. 5/2/94)
Excluding Sales Charge +3.63% +3.84% 3.67%
Including Sales Charge +2.93% -0.16% 3.67%
- --------------------------------------------------------------------------------------------------------
Class C (Est. 11/29/95)
Excluding Sales Charge +3.71% +3.84% 3.67%
Including Sales Charge +3.71% +2.84% 3.67%
</TABLE>
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. RETURN AND YIELD WILL
FLUCTUATE. ALL PERFORMANCE REFLECTS REINVESTMENT OF DIVIDENDS. MONEY MARKET
FUNDS STRIVE TO MAINTAIN A NET ASSET VALUE OF $1 PER SHARE. HOWEVER, THERE IS NO
GUARANTEE THAT THIS GOAL WILL BE MET. AN INVESTMENT IN A MONEY MARKET FUND IS
NEITHER INSURED NOR GUARANTEED BY THE U.S. GOVERNMENT.
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
of up to 4% 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 Class B and C
assumes investment was either not redeemed or that contingent sales charges did
not apply.
<PAGE>
4 for current income
FINANCIAL STATEMENTS
DELAWARE GROUP CASH RESERVE, INC. -
STATEMENT OF NET ASSETS
MARCH 31, 1998
- ------------------------------------------------------------------------------
PRINCIPAL MARKET
AMOUNT VALUE
- ------------------------------------------------------------------------------
COMMERCIAL PAPER - 73.60%
FINANCIAL SERVICES - 36.37%
ABN-AMRO North American Finance
5.38% 07/09/98 ................................ $10,000,000 $ 9,852,050
ABN-AMRO North American Finance
5.44% 08/25/98 ................................ 10,000,000 9,779,378
Allianz of America Finance
5.48% 04/02/98 ................................ 10,000,000 9,998,478
Banc One Funding 5.53% 04/30/98 ................ 9,061,000 9,020,595
Ciesco 5.45% 04/24/98 .......................... 11,500,000 11,459,958
Commonwealth Bank of Australia
5.37% 07/29/98 ................................ 10,000,000 9,822,492
Commonwealth Bank of Australia
5.42% 09/15/98 ................................ 10,000,000 9,748,433
Corporate Asset Funding 5.53% 04/15/98 ......... 10,000,000 9,978,494
Fleet Funding 5.54% 04/24/98 ................... 10,000,000 9,964,606
Fleet Funding 5.54% 04/29/98 ................... 4,981,000 4,959,537
General Electric Capital
5.35% 08/17/98 ................................ 5,000,000 4,897,458
General Electric Capital
5.41% 07/07/98 ................................ 10,000,000 9,854,231
Greenwich Funding 5.51% 06/08/98 ............... 10,000,000 9,895,922
ING America Insurance Holdings
5.53% 04/02/98 ................................ 10,000,000 9,998,464
Lloyds Bank 5.64% 05/04/98 ..................... 10,000,000 9,948,300
MetLife Funding 5.52% 04/27/98 ................. 5,000,000 4,980,067
New York Life Capital 5.50% 06/11/98 ........... 10,000,000 9,891,528
Stanford University 5.49% 04/08/98 ............. 6,000,000 5,993,595
Stanford University 5.60% 06/15/98 ............. 5,000,000 4,941,667
Stanford University 5.62% 05/18/98 ............. 4,400,000 4,367,716
Swiss Re Financial Products 5.43% 04/14/98 ..... 10,000,000 9,980,392
Swiss Re Financial Products 5.48% 05/15/98 ..... 10,000,000 9,933,022
USAA Capital 5.38% 06/18/98 .................... 10,000,000 9,883,433
Western Australian Treasury 5.49% 06/23/98 ..... 10,000,000 9,873,425
------------
209,023,241
------------
INDUSTRIAL - 19.05%
Campbell Soup 5.50% 05/11/98 ................... 10,000,000 9,938,889
Dupont (E.I.) De Nemours 5.33% 08/14/98 ........ 10,000,000 9,800,125
Dupont (E.I.) De Nemours 5.54% 05/06/98 ........ 9,000,000 8,951,525
Gillette 6.03% 04/01/98 ........................ 25,000,000 25,000,000
Henkel 5.46% 07/23/98 .......................... 7,000,000 6,880,032
Henkel 5.50% 05/27/98 .......................... 4,000,000 3,965,778
Kaiser Foundation Hospital 5.57% 04/03/98 ...... 10,000,000 9,996,906
Koch Industries 6.05% 04/01/98 ................. 25,000,000 25,000,000
Vermont American 5.50% 05/06/98 ................ 10,000,000 9,946,528
------------
109,479,783
------------
MORTGAGE BANKERS & BROKERS - 18.18%
Bear Stearns 5.36% 07/14/98 .................... 5,000,000 4,922,578
Bear Stearns 5.50% 05/29/98 .................... 10,000,000 9,911,389
Bear Stearns 5.51% 06/05/98 .................... 10,000,000 9,900,514
Credit Suisse First Boston 5.45% 05/20/98 ...... 10,500,000 10,422,110
<PAGE>
PRINCIPAL MARKET
AMOUNT VALUE
- ------------------------------------------------------------------------------
COMMERCIAL PAPER (CONTINUED)
MORTGAGE BANKERS & BROKERS (CONTINUED)
Goldman Sachs Group 5.62% 08/04/98 ............. $ 5,000,000 $ 4,902,431
Goldman Sachs Group 5.65% 05/11/98 ............. 10,000,000 9,937,222
Goldman Sachs Group 5.65% 05/19/98 ............. 10,000,000 9,924,667
Merrill Lynch 5.46% 05/21/98 ................... 10,000,000 9,924,167
Merrill Lynch 5.54% 05/15/98 ................... 5,000,000 4,966,144
Morgan (J.P.) 5.50% 06/22/98 ................... 10,000,000 9,874,722
Morgan Stanley, Dean Witter, Discover
5.46% 05/18/98 ................................ 10,000,000 9,928,717
Morgan Stanley, Dean Witter, Discover
5.50% 06/11/98 ................................ 10,000,000 9,891,528
------------
104,506,189
------------
TOTAL COMMERCIAL PAPER ......................... 423,009,213
------------
CERTIFICATES OF DEPOSIT - 9.22%
ABN-AMRO North American, Chicago
6.03% 06/11/98 ................................ 5,000,000 5,000,084
Harris Trust and Savings Bank 5.54% 04/24/98 ... 10,000,000 10,000,000
Landesbank Hessen-Thuringen, New York
5.94% 06/19/98 ................................ 8,000,000 7,998,742
National Westminster Bank 5.94% 06/26/98 ....... 10,000,000 10,003,078
Wilmington Trust 5.51% 06/11/98 ................ 5,000,000 5,000,000
Wilmington Trust 5.58% 07/06/98 ................ 10,000,000 10,000,000
Wilmington Trust 5.65% 02/08/99 ................ 5,000,000 5,000,000
------------
TOTAL CERTIFICATES OF DEPOSIT .................. 53,001,904
------------
*FLOATING RATE NOTES - 8.79%
CS First Boston-Floating Rate Medium Term Note
5.67% 07/22/98 ................................ 5,000,000 5,000,000
Federal Home Loan Bank Floating Rate Note
5.54% 02/26/99 ................................ 4,000,000 3,998,223
Federal Home Loan Bank Floating Rate Note
5.66% 10/23/98 ................................ 4,000,000 4,000,000
Key Bank, New York Floating Rate Note
5.69% 01/14/99 ................................ 8,000,000 7,997,753
Key Bank, New York Floating Rate Note
5.79% 10/02/98 ................................ 11,500,000 11,503,162
Merrill Lynch Floating Rate Note
5.76% 04/06/98 ................................ 10,000,000 10,000,000
Student Loan Marketing Association Floating
Rate Note 5.68% 11/12/98 ...................... 8,000,000 8,000,000
------------
TOTAL FLOATING RATE NOTES ...................... 50,499,138
------------
SHORT-TERM TIME DEPOSITS - 12.63%
Bank of Scotland, New York, Cayman Islands
6.00% 04/01/98 ................................ 25,000,000 25,000,000
Den Danske Bank, New York, Cayman Islands
6.00% 04/01/98 ................................ 22,603,000 22,603,000
Deutsche Bank, Toronto 6.06% 04/01/98 .......... 25,000,000 25,000,000
------------
TOTAL SHORT-TERM TIME DEPOSITS ................. 72,603,000
------------
<PAGE>
for current income 5
STATEMENT OF NET ASSETS (CONTINUED)
- ------------------------------------------------------------------------------
PRINCIPAL MARKET
AMOUNT VALUE
- ------------------------------------------------------------------------------
MISCELLANEOUS INVESTMENTS - 1.39%
Northern Trust 5.96% 06/17/98 .................. $8,000,000 $ 7,999,355
------------
TOTAL MISCELLANEOUS INVESTMENTS ................ 7,999,355
------------
TOTAL MARKET VALUE OF SECURITIES - 105.63%
(COST $607,112,610)** ......................... $607,112,610
LIABILITIES NET OF RECEIVABLES
AND OTHER ASSETS - (5.63%) .................... (32,374,735)
------------
NET ASSETS APPLICABLE TO 574,737,875 SHARES
($0.001 PAR VALUE) OUTSTANDING - 100.00% ...... $574,737,875
============
NET ASSET VALUE - DELAWARE CASH RESERVE A CLASS
($524,477,075 / 524,477,075 SHARES) ........... $1.00
=====
NET ASSET VALUE - DELAWARE CASH RESERVE B CLASS
($6,522,397 / 6,522,397 SHARES) ............... $1.00
=====
NET ASSET VALUE - DELAWARE CASH RESERVE C CLASS
($3,701,732 / 3,701,732 SHARES) ............... $1.00
=====
NET ASSET VALUE - DELAWARE CASH RESERVE CONSULTANT CLASS
($40,036,671 / 40,036,671 SHARES) ............. $1.00
=====
- ------------
* For Floating Rate Notes, the interest rate shown is the rate
as of March 31, 1998, 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.
** Also cost for federal income tax purposes.
See accompanying notes
DELAWARE GROUP CASH RESERVE, INC. -
STATEMENT OF OPERATIONS
YEAR ENDED MARCH 31, 1998
INVESTMENT INCOME:
Interest ....................................... $33,393,903
-----------
EXPENSES:
Management fees ................................ $2,904,636
Dividend disbursing and transfer agent fees
and expenses .................................. 1,668,590
Accounting and administration .................. 320,450
Distribution expense ........................... 195,711
Reports and statements to shareholders ......... 87,452
Registration fees .............................. 70,030
Professional fees .............................. 41,950
Custodian fees ................................. 29,475
Directors' fees ................................ 21,624
Taxes (other than taxes on income) ............. 2,420
Other .......................................... 72,924
---------
5,415,262
-----------
NET INVESTMENT INCOME .......................... 27,978,641
-----------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS ............................... $27,978,641
===========
See accompanying notes
<PAGE>
DELAWARE GROUP CASH RESERVE, INC. -
STATEMENTS OF CHANGES IN NET ASSETS
- ------------------------------------------------------------------------------
YEAR ENDED YEAR ENDED
3/31/98 3/31/97
- ------------------------------------------------------------------------------
INCREASE IN NET ASSETS FROM OPERATIONS:
Net investment income. $ 27,978,641 $ 26,570,901
-------------- --------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income:
A Class ................................... (26,242,787) (25,574,118)
B Class ................................... (297,746) (204,095)
C Class ................................... (109,751) (31,607)
Consultant Class .......................... (1,328,357) (761,081)
-------------- --------------
(27,978,641) (26,570,901)
-------------- --------------
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold:
A Class ................................... 3,429,116,792 1,641,997,821
B Class ................................... 65,522,239 26,424,821
C Class ................................... 46,237,917 5,457,412
Consultant Class .......................... 475,319,290 193,065,655
Net asset value of shares issued upon
reinvestment of dividends from
net investment income
A Class ................................... 23,567,546 24,611,275
B Class ................................... 227,339 186,993
C Class ................................... 94,442 30,039
Consultant Class .......................... 1,095,988 728,644
-------------- --------------
4,041,181,553 1,892,502,660
-------------- --------------
Cost of shares repurchased:
A Class ................................... (3,523,084,265) (1,657,217,020)
B Class ................................... (72,215,007) (21,751,102)
C Class ................................... (45,429,174) (2,992,976)
Consultant Class .......................... (459,846,745) (190,670,002)
-------------- --------------
(4,100,575,191) (1,872,631,100)
-------------- --------------
Increase (decrease) in net assets derived from
capital share transactions ................ (59,393,638) 19,871,560
-------------- --------------
NET INCREASE (DECREASE) IN NET ASSETS ........ (59,393,638) 19,871,560
-------------- --------------
NET ASSETS:
Beginning of year ............................ 634,131,513 614,259,953
-------------- --------------
End of year .................................. $ 574,737,875 $ 634,131,513
============== ==============
See accompanying notes
<PAGE>
6 for current income
DELAWARE GROUP CASH RESERVE, INC. -
FINANCIAL HIGHLIGHTS
MARCH 31, 1998
- --------------------------------------------------------------------------------
Selected data for each share of the Fund outstanding throughout each period were
as follows:
<TABLE>
<CAPTION>
DELAWARE CASH RESERVE A CLASS
--------------------------------------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
3/31/98 3/31/97 3/31/96 3/31/95 3/31/94
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period .......................... $1.000 $1.000 $1.000 $1.000 $1.000
Income from investment operations:
Net investment income ..................................... 0.048 0.045 0.049 0.039 0.023
-------- -------- -------- -------- --------
Total from investment operations .......................... 0.048 0.045 0.049 0.039 0.023
-------- -------- -------- -------- --------
Less dividends and distributions:
Dividends from net investment income ....................... (0.048) (0.045) (0.049) (0.039) (0.023)
-------- -------- -------- -------- --------
Total dividends and distributions .......................... (0.048) (0.045) (0.049) (0.039) (0.023)
-------- -------- -------- -------- --------
Net asset value, end of period ................................. $1.000 $1.000 $1.000 $1.000 $1.000
======== ======== ======== ======== ========
Total return ................................................... 4.88% 4.61% 5.01% 4.01% 2.28%
Ratios and supplemental data:
Net assets, end of period (000 omitted) .................... $524,477 $594,877 $585,485 $605,993 $699,112
Ratio of expenses to average net assets .................... 0.88% 0.88% 0.95% 1.01% 1.00%
Ratio of net investment income to average net assets ....... 4.78% 4.52% 4.90% 3.91% 2.27%
</TABLE>
<TABLE>
<CAPTION>
DELAWARE CASH RESERVE B CLASS DELAWARE CASH RESERVE C CLASS
---------------------------------------------- -----------------------------------
PERIOD PERIOD
5/2/94(1) 11/29/95(2)
YEAR ENDED YEAR ENDED YEAR ENDED TO YEAR ENDED YEAR ENDED TO
3/31/98 3/31/97 3/31/96 3/31/95 3/31/98 3/31/97 3/31/96
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period ........ $1.000 $1.000 $1.000 $1.000 $1.000 $1.000 $1.000
Income from investment operations:
Net investment income .................... 0.038 0.035 0.039 0.028 0.038 0.035 0.012
------ ------- ------ ------ ------ ------ ------
Total from investment operations ........ 0.038 0.035 0.039 0.028 0.038 0.035 0.012
------ ------- ------ ------ ------ ------ ------
Less dividends and distributions:
Dividends from net investment income ..... (0.038) (0.035) (0.039) (0.028) (0.038) (0.035) (0.012)
------ ------- ------ ------ ------ ------ ------
Total dividends and distributions ........ (0.038) (0.035) (0.039) (0.028) (0.038) (0.035) (0.012)
------ ------- ------ ------ ------ ------ ------
Net asset value, end of period ............... $1.000 $1.000 $1.000 $1.000 $1.000 $1.000 $1.000
====== ======= ====== ====== ====== ====== ======
Total return(3) .............................. 3.84% 3.58% 3.97% 3.10% 3.84% 3.58% 1.24%
Ratios and supplemental data:
Net assets, end of period (000 omitted) .. $6,522 $12,988 $8,127 $1,088 $3,702 $2,799 $304
Ratio of expenses to average net assets .. 1.88% 1.88% 1.95% 2.01% 1.88% 1.88% 1.95%
Ratio of net investment income to average
net assets ............................. 3.78% 3.52% 3.90% 2.91% 3.78% 3.52% 3.90%
</TABLE>
- ----------------
(1) Date of initial public offering; ratios and total return have been
annualized.
(2) Date of initial public offering; ratios have been annualized and total
return has not been annualized.
(3) Does not include contingent deferred sale charge, which varies from 1-4% for
Class B shares depending upon the holding period and 1% for Class C shares.
<PAGE>
for current income 7
FINANCIAL HIGHLIGHTS (CONTINUED)
- --------------------------------------------------------------------------------
Selected data for each share of the Fund outstanding throughout each period were
as follows:
<TABLE>
<CAPTION>
DELAWARE CASH RESERVE CONSULTANT CLASS
---------------------------------------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
3/31/98 3/31/97 3/31/96 3/31/95 3/31/94
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period ......................... $1.000 $1.000 $1.000 $1.000 $1.000
Income from investment operations:
Net investment income .................................... 0.045 0.043 0.047 0.037 0.020
------- ------- ------- ------- -------
Total from investment operations ......................... 0.045 0.043 0.047 0.037 0.020
------- ------- ------- ------- -------
Less dividends and distributions:
Dividends from net investment income ..................... (0.045) (0.043) (0.047) (0.037) (0.020)
------- ------- ------- ------- -------
Total dividends and distributions ........................ (0.045) (0.043) (0.047) (0.037) (0.020)
------- ------- ------- ------- -------
Net asset value, end of period ............................... $1.000 $1.000 $1.000 $1.000 $1.000
======= ======= ======= ======= =======
Total return ................................................. 4.62% 4.36% 4.75% 3.75% 2.04%
Ratios and supplemental data:
Net assets, end of period (000 omitted) ................. $40,037 $23,468 $20,344 $18,386 $22,561
Ratio of expenses to average net assets ................. 1.13% 1.13% 1.20% 1.26% 1.25%
Ratio of net investment income to average net assets .... 4.53% 4.27% 4.65% 3.66% 2.02%
</TABLE>
DELAWARE GROUP CASH RESERVE, INC. -
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 1998
- --------------------------------------------------------------------------------
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 A Class and the Cash Reserve Consultant Class have
no sales charge. The Cash Reserve B Class carries a back-end deferred sales
charge and the Cash Reserve C Class 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.
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 Investments family of
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). Discounts and premiums on securities purchased are amortized
to interest income over the lives of the respective securities. The Fund
declares dividends daily from net investment income and pays such dividends
monthly.
<PAGE>
2. INVESTMENT MANAGEMENT AND OTHER TRANSACTIONS WITH AFFILIATES
In accordance with the terms of the Investment Management Agreement, the Fund
pays Delaware Management Company (DMC), the investment manager, 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 March 31, 1998, the Fund had a
liability for investment management fees and other expenses payable to DMC of
$121,080.
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 March 31, 1998, the Fund expensed $1,668,590 for dividend
disbursing and transfer agent services and $221,961 for accounting services.
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.
<PAGE>
8 for current income
NOTES TO FINANCIAL STATEMENTS(CONTINUED)
- --------------------------------------------------------------------------------
3. CAPITAL STOCK
Transactions in capital stock shares were as follows:
YEAR ENDED YEAR ENDED
3/31/98 3/31/97
------------- -------------
Shares sold:
A Class ................................ 3,429,116,792 1,641,997,821
B Class ................................ 65,522,239 26,424,821
C Class ................................ 46,237,917 5,457,412
Consultant Class ....................... 475,319,290 193,065,655
Shares issued upon reinvestment of
dividends from net investment income:
A Class ................................ 23,567,546 24,611,275
B Class ................................ 227,339 186,993
C Class ................................ 94,442 30,039
Consultant Class ....................... 1,095,988 728,644
------------- -------------
4,041,181,553 1,892,502,660
------------- -------------
Shares repurchased:
A Class ................................ (3,523,084,265) (1,657,217,020)
B Class ................................ (72,215,007) (21,751,102)
C Class ................................ (45,429,174) (2,992,976)
Consultant Class ....................... (459,846,745) (190,670,002)
------------- -------------
(4,100,575,191) (1,872,631,100)
------------- -------------
Net increase (decrease) ................... (59,393,638) 19,871,560
============= =============
- --------------------------------------------------------------------------------
DELAWARE GROUP CASH RESERVE, INC. -
REPORT OF INDEPENDENT AUDITORS
- --------------------------------------------------------------------------------
TO THE SHAREHOLDERS AND BOARD OF DIRECTORS
DELAWARE GROUP CASH RESERVE, INC.
We have audited the accompanying statement of net assets of Delaware Group Cash
Reserve, Inc. (the "Fund") as of March 31, 1998, and the related statement of
operations for the year then ended, statements of changes in net assets for each
of the two years in the period then ended and the financial highlights for each
of the periods indicated therein. These financial statements and financial
highlights are the responsibility of the Fund's management. Our responsibility
is to express an opinion on these financial statements and financial highlights
based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements and financial highlights. Our procedures included confirmation of
securities owned as of March 31, 1998, by correspondence with the custodian and
brokers. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Delaware Group Cash Reserve, Inc. at March 31, 1998, the results of its
operations for the year then ended, the changes in its net assets for each of
the two years in the period then ended, and its financial highlights for each of
the periods indicated therein, in conformity with generally accepted accounting
principles.
/s/ Ernst & Young LLP
Philadelphia, Pennsylvania
April 29, 1998
<PAGE>
THIS 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 for Delaware Cash Reserve, which sets forth details about
charges, expenses, investment objectives and operating policies of each 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.
Board of Directors
WAYNE A. STORK
Chairman
Delaware Investments Family of Funds
Philadelphia, PA
JEFFREY J. NICK
President and Chief Executive Officer
Delaware Investments Family of Funds
Philadelphia, PA
WALTER P. BABICH
Board Chairman, Citadel Constructors, Inc.
King of Prussia, PA
ANTHONY D. KNERR
Consultant, Anthony Knerr & Associates
New York, NY
ANN R. LEVEN
Treasurer, National Gallery of Art
Washington, DC
W. THACHER LONGSTRETH
City Councilman
Philadelphia, PA
THOMAS F. MADISON
President and Chief Executive Officer
MLM Partners, Inc.
Minneapolis, MN
CHARLES E. PECK
Secretary/Treasurer, Enterprise Homes, Inc.
Fredericksburg, VA
Affiliated Officers
DAVID K. DOWNES
Executive Vice President, Chief Financial Officer
and Chief Operating Officer
Delaware Investments Family of Funds
Philadelphia, PA
GEORGE M. CHAMBERLAIN, JR.
Senior Vice President, Secretary
and General Counsel
Delaware Investments Family of Funds
Philadelphia, PA
BRUCE D. BARTON
President and Chief Executive Officer
Delaware Distributors, L.P.
Philadelphia, PA
<PAGE>
(photo of globes)
directors
& officers
- --------------------------------------------------------------------------------
INVESTMENT MANAGER
Delaware Management Company
Philadelphia, Pennsylvania
INTERNATIONAL AFFILIATE
Delaware International Advisers Ltd.
London, England
NATIONAL DISTRIBUTOR
Delaware Distributors, L.P.
Philadelphia, Pennsylvania
SHAREHOLDER SERVICING,
DIVIDEND DISBURSING
AND TRANSFER AGENT
Delaware Service Company, Inc.
Philadelphia, Pennsylvania
1818 Market Street
Philadelphia, PA 19103-3682
<PAGE>
(photo of globes)
THIS REPORT MUST BE PRECEDED OR ACCOMPANIED BY A CURRENT PROSPECTUS FOR DELAWARE
CASH RESERVE, AND THE DELAWARE INVESTMENTS FUND PERFORMANCE UPDATE FOR THE MOST
RECENTLY COMPLETED CALENDAR QUARTER. FOR A PROSPECTUS OF ANY OTHER MUTUAL FUND
FROM DELAWARE INVESTMENTS, CONTACT YOUR FINANCIAL ADVISER OR DELAWARE.
FOR SHAREHOLDERS
1.800.523.1918
FOR SECURITIES DEALERS
1.800.362.7500
FOR FINANCIAL INSTITUTIONS
REPRESENTATIVES ONLY
1.800.659.2265
www.delawarefunds.com
MONEY MARKET FUNDS STRIVE TO MAINTAIN A NET ASSET VALUE OF $1 A SHARE. HOWEVER,
THERE IS NO GUARANTEE THIS GOAL WILL BE MET. YIELDS FLUCTUATE WITH MARKET
CONDITIONS. THE FUND IS NEITHER INSURED NOR GUARANTEED BY THE U.S. GOVERNMENT.
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 Funds are not bank or credit union deposits.
Copy Rights Delaware Distributors, L.P.
Printed in the USA
on recycled paper
(633)
AR-008[3/98]TKO5/98
