<PAGE>
MONEY MARKET FUND
Delaware Cash Reserve
service and guidance
professional management
[photo of illustration from Money Market Fund Brochure]
goals
1999
Semi-Annual
Report
DELAWARE(SM)
INVESTMENTS
- -----------------------
Philadelphia o London
<PAGE>
money
market
fund
2
October 16, 1998
Dear Shareholder:
DELAWARE CASH RESERVE PROVIDED A total return of 2.40% (Class A shares with
dividends reinvested) for the six months ended September 30, 1998.
On September 29 and again in early October, the Federal Reserve Board reduced
its target for short-term interest rates, the first changes in monetary policy
in nearly three years. The Federal Reserve's Open Market Committee lowered the
federal funds rate (the interest rate charged between banks for overnight loans)
by a total of 50 basis points (0.50%) to 5%, citing "increasing weakness in
foreign economies and less accommodative financial conditions domestically."
Any change in short-term interest rates directly affects a money market
fund's income potential - in general, lower rates mean lower yields, and higher
rates mean higher yields. Anticipating the rate reduction, Delaware Cash
Reserve's portfolio manager, Cynthia I. Isom, modestly extended the Fund's
average maturity during the first half of fiscal 1999 to 52 days as of September
30. Your Fund's annualized seven-day SEC yield for Class A shares was 4.62% as
of September 30, more than twice the current rate of inflation.
Inflation remains tame and the unemployment rate (4.6% for September) is at a
28-year low. We are cautious, however, about increasing pressures on the U.S.
economy from troubled global economies. We believe the Federal Reserve could
reduce its target for short-term interest rates again in the coming months,
which could make it challenging to maintain current yield.
We are proud to say that for more than two decades since its founding on June
30, 1978, Delaware Cash Reserve has met its objective of seeking maximum current
income, while preserving principal and maintaining liquidity.
FOR MORE THAN TWO DECADES SINCE ITS FOUNDING ON JUNE 30, 1978, DELAWARE CASH
RESERVE HAS MET ITS OBJECTIVE OF SEEKING MAXIMUM CURRENT INCOME, WHILE
PRESERVING PRINCIPAL AND MAINTAINING LIQUIDITY.
Given current equity market conditions, we strongly suggest you consult your
financial adviser about the role money market funds can play in a diversified
portfolio. We thank you for your commitment to Delaware Investments, and we look
forward to reporting to you again next April.
Sincerely,
/s/ Wayne A. Stork
WAYNE A. STORK
Chairman
/s/ Jeffrey J. Nick
JEFFREY J. NICK
President and Chief Executive Officer
<PAGE>
money
market
fund
3
DELAWARE CASH RESERVE'S
PORTFOLIO COMPOSITION
Percentage of Total Market Value
9/30/98 3/31/98
Commercial Paper 81.0% 69.7%
Short-Term Time Deposits 6.1% 12.0%
Certificates of Deposit 6.5% 8.7%
Floating Rate Notes 3.1% 5.7%
Federal Agency (Floating Rate Notes) 2.5% 2.6%
Other 0.8% 1.3%
DELAWARE CASH RESERVE PERFORMANCE
- --------------------------------------------------------------------------------
RETURNS THROUGH SEPTEMBER 30, 1998
<TABLE>
<CAPTION>
Sept. 30, 1998
Ten Years Five Years One Year Six Months Seven-Day SEC Yield
- -----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
A Class (Est. 6/30/78) +5.13% +4.42% +4.85% +2.40% 4.62%
Consultant Class (Est. 3/10/88) +4.87% +4.16% +4.59% +2.27% 4.37%
Sept. 30, 1998
Lifetime One Year Six Months Seven-Day SEC Yield
- ------------------------------------------------------------------------------------------------------------
B Class (Est. 5/2/94)
Excluding Sales Charge +3.65% +3.81% +1.89% 3.62%
Including Sales Charge +3.25% -0.20% +1.89% 3.62%
- ------------------------------------------------------------------------------------------------------------
C Class (Est. 11/29/95)
Excluding Sales Charge +3.73% +3.81% +1.89% 3.62%
Including Sales Charge +3.73% +2.81% +1.89% 3.62%
</TABLE>
All returns are average annual returns except six-month results, which are
cumulative returns. 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 per share. However,
there is no guarantee that this goal will be met.
Class A shares are available without sales charges or 12b-1 fees.
Consultant Class performance after March 31, 1988 reflects the effect 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 and Class C may be made only when establishing a
Wealth Builder plan. Lifetime performance excluding sales charge for these
classes assumes investment was either not redeemed or that contingent sales
charges did not apply.
<PAGE>
4 money market fund
Financial Statements
DELAWARE GROUP CASH RESERVE, INC.
STATEMENT OF NET ASSETS
SEPTEMBER 30, 1998 (UNAUDITED)
- --------------------------------------------------------------------------------
PRINCIPAL MARKET
AMOUNT VALUE
----------------------------
COMMERCIAL PAPER - 80.18%
FINANCIAL - 39.05%
ABN-AMRO North American Finance
5.495% 10/13/98 ............................... $ 10,000,000 $ 9,981,683
Abbey National North American
5.50% 10/14/98 ................................ 10,000,000 9,980,139
Allianz of America Finance 5.24% 3/11/99 ......... 10,400,000 10,156,282
Allianz of America Finance 5.53% 10/13/98 ........ 5,000,000 4,990,783
Banc One Funding 5.48% 11/13/98 .................. 7,998,000 7,945,649
Bank of America FSB 5.09% 2/25/99 ................ 10,000,000 9,792,158
Ciesco 5.48% 10/09/98 ............................ 10,000,000 9,987,822
Commerzbank U.S. Finance 5.51% 10/16/98 .......... 10,000,000 9,977,042
Commonwealth Bank of Australia
5.42% 10/13/98 ................................ 5,000,000 4,990,967
Commonwealth Bank of Australia
5.45% 1/29/99 ................................. 10,000,000 9,818,333
Corporate Asset Funding 5.51% 10/7/98 ............ 10,000,000 9,990,817
Fleet Funding 5.51% 10/23/98 ..................... 10,000,000 9,966,328
Fleet Funding 5.56% 10/9/98 ...................... 5,800,000 5,792,834
Ford Motor Credit 5.49% 10/16/98 ................. 10,000,000 9,977,125
General Electric Capital 5.44% 1/29/99 ........... 10,000,000 9,818,667
General Electric Capital 5.45% 11/19/98 .......... 8,900,000 8,833,979
General Re 5.47% 10/23/98 ........................ 4,000,000 3,986,629
General Re 5.52% 10/16/98 ........................ 10,425,000 10,401,022
ING America Insurance Holdings
5.37% 12/8/98 ................................. 10,000,000 9,898,567
Motorola Credit 5.49% 10/23/98 ................... 7,830,000 7,803,730
Prudential Finance (Jersey) 5.54% 10/22/98 ....... 10,000,000 9,967,683
Rabobank USA Financial 5.48% 10/20/98 ............ 10,000,000 9,971,078
St. Paul Companies 5.47% 10/16/98 ................ 10,000,000 9,977,208
Stanford University 5.44% 3/1/99 ................. 5,000,000 4,885,911
Swiss Re Financial Products 5.50% 11/16/98 ....... 10,300,000 10,227,614
Swiss Re Financial Products 5.55% 10/5/98 ........ 3,144,000 3,142,061
Swiss Re Financial Products 5.55% 10/14/98 ....... 3,187,000 3,180,613
USAA Capital 5.49% 10/29/98 ...................... 14,000,000 13,941,760
USAA Capital 5.52% 10/30/98 ...................... 9,000,000 8,959,980
------------
248,344,464
------------
INDUSTRIAL - 19.36%
DuPont (E.I.) deNemours 5.42% 11/5/98 ............ 12,000,000 11,936,767
GAP 5.33% 11/19/98 ............................... 10,000,000 9,927,453
GAP 5.42% 11/10/98 ............................... 10,000,000 9,939,778
Golden Peanut 5.50% 10/22/98 ..................... 5,000,000 4,983,958
Henkel 5.47% 11/10/98 ............................ 4,000,000 3,975,689
Henkel 5.48% 11/17/98 ............................ 10,000,000 9,928,455
Henkel 5.49% 10/7/98 ............................. 8,000,000 7,992,680
Hoechst 5.56% 10/5/98 ............................ 10,000,000 9,993,822
Motorola 5.19% 11/24/98 .......................... 7,000,000 6,945,505
Motorola 5.49% 10/20/98 .......................... 10,000,000 9,971,025
Pfizer 5.48% 10/16/98 ............................ 10,000,000 9,977,167
Washington Post 5.44% 1/20/99 .................... 10,000,000 9,832,267
Washington Post 5.47% 11/6/98 .................... 8,500,000 8,453,505
<PAGE>
COMMERCIAL PAPER (CONTINUED)
INDUSTRIAL (CONTINUED)
Wisconsin Electric Fuel Trust 5.49% 10/13/98 .... $ 7,000,000 $ 6,987,190
Zeneca Wilmington 5.52% 10/15/98 ................ 2,250,000 2,245,170
------------
123,090,431
------------
MORTGAGE BANKERS & BROKERS - 21.77%
Bear Stearns 5.39% 1/14/99 ...................... 10,000,000 9,842,792
Bear Stearns 5.50% 10/29/98 ..................... 10,000,000 9,957,222
Bear Stearns 5.51% 10/20/98 ..................... 5,000,000 4,985,460
Credit Suisse First Boston 5.50% 10/21/98 ....... 10,500,000 10,467,917
Credit Suisse First Boston 5.51% 10/29/98 ....... 9,175,000 9,135,680
Credit Suisse First Boston 5.51% 11/19/98 ....... 5,000,000 4,962,501
Goldman Sachs Group 5.46% 11/6/98 ............... 5,000,000 4,972,700
Goldman Sachs Group 5.48% 10/7/98 ............... 10,000,000 9,990,867
Goldman Sachs Group 5.50% 10/9/98 ............... 10,000,000 9,987,778
Merrill Lynch 5.26% 1/29/99 ..................... 10,000,000 9,824,667
Merrill Lynch 5.50% 1/14/99 ..................... 10,000,000 9,839,583
Morgan (J.P.) 5.02% 2/26/99 ..................... 10,000,000 9,793,622
Morgan (J.P.) 5.50% 11/10/98 .................... 10,000,000 9,938,889
Morgan Stanley Dean Witter 5.45% 2/12/99 ........ 10,000,000 9,797,139
Morgan Stanley Dean Witter 5.47% 11/24/98 ....... 5,000,000 4,958,975
Morgan Stanley Dean Witter 5.50% 10/22/98 ....... 10,000,000 9,967,917
------------
138,423,709
------------
Total Commercial Paper 509,858,604
------------
CERTIFICATES OF DEPOSIT - 6.45%
ABN-AMRO North American, Chicago
5.62% 2/18/99 ................................. 5,000,000 5,000,755
Canadian Imperial Bank 5.705% 3/30/99 ........... 10,000,000 10,021,238
Rabobank Nederland 5.59% 4/6/99 ................. 6,000,000 5,994,728
Rabobank Nederland 5.75% 4/27/99 ................ 5,000,000 4,998,636
WestDeutsche L.B. 5.35% 3/18/99 ................. 10,000,000 10,000,000
Wilmington Trust 5.65% 2/8/99 ................... 5,000,000 5,000,000
------------
Total Certificates of Deposit ................... 41,015,357
------------
*FLOATING RATE NOTES - 5.58%
Federal Home Loan Bank - Floating Rate Note
4.893% 2/26/99 ................................ 4,000,000 3,999,205
Federal Home Loan Bank - Floating Rate Note
5.013% 10/23/98 ............................... 4,000,000 4,000,000
Key Bank, New York - Floating Rate Note
5.51% 1/14/99 ................................. 8,000,000 7,999,181
Key Bank, New York - Floating Rate Note
5.61% 10/02/98 ................................ 11,500,000 11,500,017
Sallie Mae - Floating Rate Note
5.033% 11/12/98 ............................... 8,000,000 8,000,000
------------
Total Floating Rate Notes ....................... 35,498,403
------------
MEDIUM TERM NOTES - 0.79%
Abbey National Treasury 5.64% 7/15/99 ........... 5,000,000 5,012,078
------------
Total Medium Term Notes ......................... 5,012,078
------------
<PAGE>
money market fund 5
STATEMENT OF NET ASSETS (CONTINUED)
- --------------------------------------------------------------------------------
PRINCIPAL MARKET
AMOUNT VALUE
----------------------------
SHORT-TERM TIME DEPOSITS - 6.05%
Chase Manhattan 5.7812% 10/1/98 .................. $ 25,000,000 $ 25,000,000
Citibank 5.8125% 10/1/98 ......................... 13,449,000 13,449,000
------------
Total Short-Term Time Deposit .................... 38,449,000
------------
TOTAL MARKET VALUE OF SECURITIES OWNED - 99.05%
(cost $629,833,442)** ......................... $629,833,442
RECEIVABLES AND ASSETS IN EXCESS
OF LIABILITIES - 0.95% ........................ 6,033,191
------------
NET ASSETS APPLICABLE TO 635,866,633 SHARES
($0.001 PAR VALUE) OUTSTANDING - 100.00% ...... $635,866,633
============
NET ASSET VALUE - DELAWARE CASH RESERVE A CLASS
($561,673,830 / 561,673,830 SHARES) ........... $1.00
=====
NET ASSET VALUE - DELAWARE CASH RESERVE B CLASS
($24,124,123 / 24,124,123 SHARES) ............. $1.00
=====
NET ASSET VALUE - DELAWARE CASH RESERVE C CLASS
($9,134,698 / 9,134,698 SHARES) ............... $1.00
=====
NET ASSET VALUE - DELAWARE CASH RESERVE CONSULTANT
CLASS ($40,933,982 / 40,933,982 SHARES) ....... $1.00
=====
*For Floating Rate Notes, the interest rate shown is the rate as of September
30, 1998, and maturity date is the longer of the next interest readjustment
date or the date the principal amount can be recovered through demand.
**Also cost for federal income tax purposes.
See accompanying notes
<PAGE>
DELAWARE GROUP CASH RESERVE, INC.
STATEMENT OF OPERATIONS
SIX MONTHS ENDED SEPTEMBER 30, 1998
(UNAUDITED)
INVESTMENT INCOME:
Interest ......................................... $17,175,057
-----------
EXPENSES:
Management fees .................................. $1,501,589
Dividend disbursing and
transfer agent fees and expenses .............. 851,815
Distribution expense ............................. 145,570
Accounting fees .................................. 118,756
Reports and statements to shareholders ........... 71,200
Registration fees ................................ 56,741
Directors' fees .................................. 10,664
Professional fees ................................ 6,200
Taxes (other than taxes on income) ............... 1,500
Other ............................................ 118,988 2,883,023
------------ -----------
NET INVESTMENT INCOME ............................ 14,292,034
-----------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS ............................... $14,292,034
===========
See accompanying notes
<PAGE>
6 money market fund
DELAWARE GROUP CASH RESERVE, INC.
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED
9/30/98 3/31/98
(UNAUDITED)
-----------------------------------
INCREASE IN NET ASSETS FROM OPERATIONS:
Net investment income ................... $ 14,292,034 $ 27,978,641
--------------- ---------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income:
A Class .............................. (12,961,503) (26,242,788)
B Class .............................. (234,051) (297,746)
C Class .............................. (107,458) (109,751)
Consultant Class ..................... (989,022) (1,328,357)
--------------- ---------------
(14,292,034) (27,978,641)
--------------- ---------------
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold:
A Class .............................. 870,680,914 3,429,116,792
B Class .............................. 50,415,291 65,522,239
C Class .............................. 59,898,908 46,237,917
Consultant Class ..................... 251,603,040 475,319,290
Net asset value of shares issued upon
reinvestment of dividends from net
investment income
A Class .............................. 10,120,233 23,567,546
B Class .............................. 175,086 227,339
C Class .............................. 87,904 94,442
Consultant Class ..................... 720,127 1,095,988
--------------- ---------------
1,243,701,503 4,041,181,553
--------------- ---------------
Cost of shares repurchased:
A Class .............................. (843,604,392) (3,523,084,265)
B Class .............................. (32,988,651) (72,215,007)
C Class .............................. (54,553,846) (45,429,174)
Consultant Class ..................... (251,425,856) (459,846,745)
--------------- ---------------
(1,182,572,745) (4,100,575,191)
--------------- ---------------
Increase (decrease) in net assets derived
from capital share transactions ....... 61,128,758 (59,393,638)
--------------- ---------------
NET INCREASE (DECREASE) IN NET ASSETS ... 61,128,758 (59,393,638)
--------------- ---------------
NET ASSETS:
Beginning of year ....................... 574,737,875 634,131,513
--------------- ---------------
End of year ............................. $ 635,866,633 $ 574,737,875
=============== ===============
See accompanying notes
<PAGE>
money market fund 7
DELAWARE GROUP CASH RESERVE, INC.
FINANCIAL HIGHLIGHTS
SEPTEMBER 30, 1998
- --------------------------------------------------------------------------------
Selected data for each share of the Fund outstanding throughout each period was
as follows:
<TABLE>
<CAPTION>
DELAWARE CASH RESERVE A CLASS
-----------------------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED
9/30/98(1) 3/31/98 3/31/97 3/31/96 3/31/95 3/31/94
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period ....................... $1.000 $1.000 $1.000 $1.000 $1.000 $1.000
Income from investment operations:
Net investment income ................................... 0.024 0.048 0.045 0.049 0.039 0.023
------ ------ ------ ------ ------ ------
Net increase in net assets from investment operations ... 0.024 0.048 0.045 0.049 0.039 0.023
------ ------ ------ ------ ------ ------
Less dividends and distributions:
Dividends from net investment income .................... (0.024) (0.048) (0.045) (0.049) (0.039) (0.023)
------ ------ ------ ------ ------ ------
Total dividends and distributions ....................... (0.024) (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 $1.000
====== ====== ====== ====== ====== ======
Total return ............................................... 2.40% 4.88% 4.61% 5.01% 4.01% 2.28%
Ratios and supplemental data:
Net assets, end of period (000 omitted) ................. $561,674 $524,477 $594,877 $585,485 $605,993 $699,112
Ratio of expenses to average net assets ................. 0.89% 0.88% 0.88% 0.95% 1.01% 1.00%
Ratio of net investment income to average net assets .... 4.71% 4.78% 4.52% 4.90% 3.91% 2.27%
</TABLE>
- -----------------
(1) Ratios have been annualized and total return has not been annualized.
See accompanying notes
<PAGE>
8 money market fund
FINANCIAL HIGHLIGHTS (CONTINUED)
- --------------------------------------------------------------------------------
Selected data for each share of the Fund outstanding throughout each period was
as follows:
<TABLE>
<CAPTION>
DELAWARE CASH RESERVE B CLASS
-----------------------------------------------------------
PERIOD
SIX MONTHS 9/6/94
ENDED YEAR ENDED TO
9/30/98(1) 3/31/98 3/31/97 3/31/96 3/31/95(2)
(UNAUDITED)
<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 ............................... 0.019 0.038 0.035 0.039 0.028
------ ------ ------ ------ ------
Net increase in net assets from
investment operations ............................. 0.019 0.038 0.035 0.039 0.028
------ ------ ------ ------ ------
Less dividends and distributions:
Dividends from net investment income ................ (0.019) (0.038) (0.035) (0.039) (0.028)
------ ------ ------ ------ ------
Total dividends and distributions ................... (0.019) (0.038) (0.035) (0.039) (0.028)
------ ------ ------ ------ ------
Net asset value, end of period ......................... $1.000 $1.000 $1.000 $1.000 $1.000
====== ====== ====== ====== ======
Total return(4) ........................................ 1.89% 3.84% 3.58% 3.97% 3.10%
Ratios and supplemental data:
Net assets, end of period (000 omitted) ............. $24,124 $6,522 $12,988 $8,127 $1,088
Ratio of expenses to average net assets ............. 1.89% 1.88% 1.88% 1.95% 2.01%
Ratio of net investment income
to average net assets ............................. 3.71% 3.78% 3.52% 3.90% 2.91%
DELAWARE CASH RESERVE C CLASS
------------------------------------------------
PERIOD
SIX MONTHS 11/29/95
ENDED YEAR ENDED TO
9/30/98(1) 3/31/98 3/31/97 3/31/96(3)
(UNAUDITED)
Net asset value, beginning of period ................... $1.000 $1.000 $1.000 $1.000
Income from investment operations:
Net investment income ............................... 0.019 0.038 0.035 0.012
------ ------ ------ ------
Net increase in net assets from
investment operations ............................. 0.019 0.038 0.035 0.012
------ ------ ------ ------
Less dividends and distributions:
Dividends from net investment income ................ (0.019) (0.038) (0.035) (0.012)
------ ------ ------ ------
Total dividends and distributions ................... (0.019) (0.038) (0.035) (0.012)
------ ------ ------ ------
Net asset value, end of period ......................... $1.000 $1.000 $1.000 $1.000
====== ====== ====== ======
Total return(4) ........................................ 1.89% 3.84% 3.58% 1.24%
Ratios and supplemental data:
Net assets, end of period (000 omitted) ............. $9,135 $3,702 $2,799 $304
Ratio of expenses to average net assets ............. 1.89% 1.88% 1.88% 1.95%
Ratio of net investment income
to average net assets ............................. 3.71% 3.78% 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 have been annualized 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.
See accompanying notes
<PAGE>
money market fund 9
FINANCIAL HIGHLIGHTS (CONTINUED)
- --------------------------------------------------------------------------------
Selected data for each share of the Fund outstanding throughout each period was
as follows:
<TABLE>
<CAPTION>
DELAWARE CASH RESERVE CONSULTANT CLASS
------------------------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED
9/30/98(1) 3/31/98 3/31/97 3/31/96 3/31/95 3/31/94
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period ..................... $1.000 $1.000 $1.000 $1.000 $1.000 $1.000
Income from investment operations:
Net investment income ................................. 0.022 0.045 0.043 0.047 0.037 0.020
------ ------ ------ ------ ------ ------
Net increase in net assets from
investment operations ............................... 0.022 0.045 0.043 0.047 0.037 0.020
------ ------ ------ ------ ------ ------
Less dividends and distributions:
Dividends from net investment income .................. (0.022) (0.045) (0.043) (0.047) (0.037) (0.020)
------ ------ ------ ------ ------ ------
Total dividends and distributions ..................... (0.022) (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 $1.000
====== ====== ====== ====== ====== ======
Total return ............................................. 2.27% 4.62% 4.36% 4.75% 3.75% 2.04%
Ratios and supplemental data:
Net assets, end of period (000 omitted) ............... $40,934 $40,037 $23,468 $20,344 $18,386 $22,561
Ratio of expenses to average net assets ............... 1.14% 1.13% 1.13% 1.20% 1.26% 1.25%
Ratio of net investment income to average net assets .. 4.46% 4.51% 4.27% 4.65% 3.66% 2.02%
</TABLE>
- -----------------
(1) Ratios have been annualized and total return has not been annualized.
See accompanying notes
<PAGE>
10 money market fund
DELAWARE GROUP CASH RESERVE, INC.
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 1998
(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 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.
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, 0.30% 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, 1998, the Fund had
a liability for investment management fees and other expenses payable to DMC of
$131,677.
<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, 1998, the Fund had a liability for such fees and
other expenses payable to DSC of $26,830.
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 Classes.
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 were as follows:
SIX MONTHS ENDED YEAR ENDED
9/30/98 3/31/98
Shares sold:
A Class .................................. 870,680,914 3,429,116,792
B Class .................................. 50,415,291 65,522,239
C Class .................................. 59,898,908 46,237,917
Consultant Class ......................... 251,603,040 475,319,290
Shares issued upon reinvestment of
dividends from net investment income:
A Class .................................. 10,120,233 23,567,546
B Class .................................. 175,086 227,339
C Class .................................. 87,904 94,442
Consultant Class ......................... 720,127 1,095,988
------------- -------------
1,243,701,503 4,041,181,553
------------- -------------
Shares repurchased:
A Class .................................. (843,604,392) (3,523,084,265)
B Class .................................. (32,988,651) (72,215,007)
C Class .................................. (54,553,846) (45,429,174)
Consultant Class ......................... (251,425,856) (459,846,745)
------------- -------------
(1,182,572,745) (4,100,575,191)
------------- -------------
Net increase (decrease) ..................... 61,128,758 (59,393,638)
============= =============
<PAGE>
DELAWARE INVESTMENTS FAMILY OF FUNDS
FOR GROWTH OF CAPITAL
Aggressive Growth Fund
Trend Fund
DelCap Fund
Small Cap Value Fund
U.S. Growth Fund
Growth Stock Fund
Tax-Efficient Equity Fund
FOR TOTAL RETURN
Social Awareness Fund
Blue Chip Fund
Devon Fund
Decatur Total Return Fund
Decatur Income Fund
REIT Fund
Delaware Fund
FOR INTERNATIONAL DIVERSIFICATION
Emerging Markets Fund
New Pacific Fund
Overseas Equity Fund
International Equity Fund
Global Equity Fund
Global Bond Fund
FOR CURRENT INCOME
Delchester Fund
High-Yield Opportunities Fund
Extended Duration Bond Fund
Strategic Income Fund
Corporate Bond Fund
U.S. Government Fund
U.S. Government Securities Fund
Limited-Term Government Fund
FOR TAX-EXEMPT INCOME
National High Yield Municipal Bond Fund
Tax-Free USA Fund
Tax-Free Insured Fund
Tax-Free USA Intermediate Fund
State Tax-Free Funds*
MONEY MARKET FUNDS
Delaware Cash Reserve
Tax-Free Money Fund
ASSET ALLOCATION FUNDS
Foundation Growth Portfolio
Foundation Balanced Portfolio
Foundation Income Portfolio
* Available for the following states: Arizona, California, Colorado, Florida,
Idaho, Iowa, Kansas, Minnesota, Missouri, North Dakota, New Jersey, New
Mexico, New York, Ohio, Oregon, Pennsylvania, Utah, Washington, Wisconsin.
Insured bond funds are available in selected states.
funds
Complete information on any fund offered by Delaware Investments can be found in
each fund's current prospectus. Prospectuses for all funds offered by Delaware
Investments are available from your financial adviser. Please read the
prospectus carefully before you invest or send money.
<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 for Delaware Cash Reserve, 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
Philadelphia, Pennsylvania
INTERNATIONAL AFFILIATE
Delaware Investment 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
(photo of globes)
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.
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.
(C) Delaware Distributors, L.P.
DELAWARE(SM)
INVESTMENTS
- -----------------------
Philadelphia o London
Printed in the USA
on recycled paper
SA-008[9/98] PP11/98
(1186)
