<PAGE>
MONEY MARKET FUND
Delaware Cash Reserve
[photo of illustration from Money Market Brochure]
service and guidance
professional management
goals
2000
Semi-Annual
Report
DELAWARE(SM)
INVESTMENTS
- ----------------------
Philadelphia [] London
<PAGE>
money
market
fund
2
October 7, 1999
Dear Shareholder:
DURING THE SIX MONTHS ENDED September 30, 1999, Delaware Cash Reserve provided a
total return of +2.12% (Class A shares with dividends reinvested). This beat
inflation and your Fund's peer group as represented by the Lipper Money Market
Fund Average as shown below.
The past six months have been challenging for fixed income investors in
general. The Federal Reserve's interest rate cuts in the fall had set the stage
for a significant stock market recovery that started in the fourth quarter of
1998 and has continued with little interruption since then. Consequently,
investors generally remained focused on the equity markets.
Throughout this period, money market funds continued to provide an
attractive option for investors seeking current income from short-term
investment holdings. The most significant news for money market investors in the
past six months has been the Federal Reserve Board's reversal of its previous
low interest rate policy. On June 30, the Fed raised the Fed Funds rate, its
target rate for overnight loans between banks, by a quarter of a percentage
point citing inflationary concerns. On Tuesday, August 24th, the Federal Reserve
again raised interest rates saying the action should help avert inflation while
allowing the nation's long economic expansion to continue.
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 Fed's rate increases, Delaware Cash
Reserve's portfolio manager, Cynthia I. Isom, modestly shortened the Fund's
average maturity during the second and third
DURING THE SIX MONTHS ENDED SEPTEMBER 30, 1999, DELAWARE CASH RESERVE PROVIDED A
TOTAL RETURN OF +2.12%. THIS HANDILY BEAT INFLATION AS SHOWN BELOW.
TOTAL RETURN
- --------------------------------------------------------------------------------
Six Months
Ended
September 30, 1999
- --------------------------------------------------------------------------------
Delaware Cash Reserve A Class +2.12%
- --------------------------------------------------------------------------------
U.S. Consumer Price Index +1.52%
- --------------------------------------------------------------------------------
Lipper Money Market Funds Average (357 funds) +2.06%
- --------------------------------------------------------------------------------
All fund performance shown above includes 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. The
Lipper Money Market Funds Average includes 357 U.S. money market mutual funds.
Performance and yield of other Fund classes, shown on page 7, vary due to
different expenses.
<PAGE>
money
market
fund
3
quarters of 1999 preparing to take advantage of higher income opportunities
created by rising rates. Average maturity stood at 51 days as of September 30,
1999.
At this point, we cannot be sure what course the Fed will take for the
remainder of this year. On the one hand, in September, the National Association
of Purchasing Managers published a manufacturing report that showed stronger
than expected activity and higher prices in August. This once again brought
inflation concerns to investors' minds. On the other hand, September's declining
stock market may deter the Fed from raising interest rates further. We will
monitor the interest rate situation carefully and adjust the average maturity of
Delaware Cash Reserve as needed to attain our investment goal.
Delaware Cash Reserve continues to invest in high quality money market
securities while striving to maximize income, preserve principal and maintain
liquidity. We thank you for your continued confidence in Delaware Investments
and encourage you to consider your Delaware Cash Reserve investment in the
context of your entire portfolio.
Sincerely,
/s/ Wayne A. Stork
- ------------------
WAYNE A. STORK
Chairman,
Delaware Investments Family of Funds
/s/ David K. Downes
- -------------------
DAVID K. DOWNES
President and Chief Executive Officer,
Delaware Investments Family of Funds
<PAGE>
money
market
fund
4
Portfolio Manager's Review
CYNTHIA I. ISOM
Vice President, Portfolio Manager
October 7, 1999
OVERVIEW
When fixed income securities and equity investments experience greater
volatility as they have this past six months, investors often expect their money
market funds to provide a cushion of stability or a safe haven. Though stocks
held the spotlight during most of this year, money market funds quietly
continued to meet the objectives for which they were designed: providing current
income with liquidity and preservation of principal.
During the past six months, money market funds, in general, have benefited
from higher interest rates that resulted from the Federal Reserve Board's
reversal of its low interest rate policy. The Fed's diligent commitment to fight
inflation also bodes well for money market funds. Rising inflation would reduce
the purchasing power of money market fund income streams.
INVESTMENT STRATEGY
To safeguard and maintain income potential we have continued to invest in money
market instruments with the highest credit ratings.
In May and June of this year--before the Federal Reserve raised interest
rates on June 30 and then again on August 24--we had decided to shorten the
Fund's maturity so that we would be positioned to benefit if rates rose.
While the Securities and Exchange Commission (SEC) permits money market
funds to have a maturity as long as 90 days, we believed it was prudent to stay
much shorter. As the outlook for interest rates became more clouded in the third
quarter, we steadily reined in the Fund's maturity. We shortened average
maturity from a 55-day range as of March 31, 1999 to approximately 51 days as of
September 30. We see maturity staying within this range--and only plan to extend
when we see a significant yield advantage in doing so.
As of March 31, 1999, the Fund had 71.4% of its net assets in commercial
paper. We slightly increased that allocation to 85.6% of net assets in
commercial paper as of September 30, 1999. Commercial paper is a short-term debt
obligation issued by corporations and banks. For investors, commercial paper
provides the flexibility and safety of an instrument that is issued only by
top-rated companies.
<PAGE>
money
market
fund
5
OUTLOOK
The economy is still growing at a rapid clip. Commodity prices are rising. With
unemployment low, there is concern about possible wage inflation. The Federal
Reserve has taken back two of last autumn's three rate cuts and has left open
the possibility of a third increase in November or December.
However, for every signal suggesting that inflation might be lurking just
over the horizon, there are others indicating that price increases are under
control and that whatever inflationary pressures might be building will
dissipate in the coming months. The recent downturn in the stock market--the Dow
Jones Industrial Average dropped 4.5% in September--is also likely to diminish
any fears among Fed officials that the economy is overheating for now.
Even if the Fed is idle, however, interest rates may continue to rise. The
yield on the 30-year Treasury bond jumped to 6.13% on Thursday, September 30,
1999 from 5.97% a week earlier. We believe that recently rising rates mark a
trend reversal and that higher rates could remain in force for several months,
creating higher income potential for your money market fund.
We do anticipate that Year 2000 concerns may create an increasing appetite
for short-term securities of higher credit quality.
Delaware Cash Reserve could experience an inflow of investments from
The Role of a Money Market Fund
in Your Portfolio
Money market mutual funds, like Delaware Cash Reserve, invest in short-term
obligations from corporations and/or from state governments or the federal
government. They offer investors certain potential benefits:
o Money market funds are managed to minimize risk to principal.
o These types of mutual funds can be used as an interim investment while you
gradually invest your savings in longer term growth-oriented investments.
o Because they strive to maintain a fixed share price while providing regular
income, money market funds can help cushion your portfolio during times of
market volatility.
The flexibility and current income that money market funds can provide make them
a good short term investment. Investors should be aware, however, that money
market funds are not FDIC insured or bank guaranteed. They have the potential to
lose value.
We encourage you to consider your Delaware Cash Reserve investment in the
context of your entire portfolio. Talk to your financial adviser about how
Delaware Investments' wide spectrum of equity and fixed-income mutual funds may
complement your investment in Delaware Cash Reserve, helping you build wealth
and protect it from the long-term impact of inflation and taxes. With
headquarters in Philadelphia and an affiliate in London, Delaware Investments
offers you over 70 years of investment management experience. Find out how we
can help you shape your future today.
<PAGE>
money
market
fund
6
people seeking a safe harbor from more aggressive investments. There may also be
some withdrawals by people wishing to have cash on hand at the start of the new
millennium. Because of these two potential scenarios, we will position the
portfolio to hold relatively more liquid and short-term obligations as we near
the end of the year.
We believe Delaware Cash Reserve is a potential safe harbor during times of
market turbulence. Specifically, your Fund is managed to minimize risk to
principal and simultaneously provide a regular income stream.
For Delaware Cash Reserve, we are optimistic that the second half of fiscal
2000 will provide a favorable environment. We intend to keep a watchful eye on
changes in consumer and producer prices to gauge the potential effect on markets
and the Fed's interest rate policy.
PORTFOLIO COMPOSITION
- --------------------------------------------------------------------------------
AS OF SEPTEMBER 30, 1999
Commercial Paper 85.6%
Certificates of Deposit 2.7%
Short-Term Time Deposits 4.3%
Floating Rate Notes 6.8%
Other 0.6%
<PAGE>
money
market
fund
7
Performance Summary
<TABLE>
<CAPTION>
DELAWARE CASH RESERVE PERFORMANCE
- ------------------------------------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL RETURNS THROUGH SEPTEMBER 30, 1999
30-Day Yield 7-Day Yield
Lifetime Ten Years Five Years One Year Six Months (9/30/99) (9/30/99)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Class A (Est. 6/30/78) +7.43% +4.70% +4.72% +4.32% +2.12% +4.46% +4.53%
- ------------------------------------------------------------------------------------------------------------------------------------
Consultant Class (Est. 3/10/88) +7.28% +4.44% +4.46% +4.07% +1.99% +4.21% +4.28%
- ------------------------------------------------------------------------------------------------------------------------------------
Class B (Est. 5/2/94)
Excluding Sales Charge +3.58% +3.69% +3.29% +1.60% +3.46% +3.53%
Including Sales Charge +3.42% +3.34% -0.72% -2.40% +3.46% +3.53%
- ------------------------------------------------------------------------------------------------------------------------------------
Class C (Est. 11/29/95)
Excluding Sales Charge +3.61% +3.29% +1.61% +3.46% +3.53
Including Sales Charge +3.61% +2.29% +0.61% +3.46% +3.53
</TABLE>
Past performance does not guarantee future results. Returns and yields will
fluctuate. All performance reflects reinvestment of dividends. An investment in
Delaware Cash Reserve is not insured or guaranteed by the Federal Deposit
Insurance Corporation or any other government agency. Although the Fund seeks to
preserve the value of your investment at $1.00 per share, it is possible to lose
money by investing in Delaware Cash Reserve.
Class A shares are available without sales charges or any 12b-1 fee. Consultant
Class has a 12b-1 distribution fee. Performance after March 10, 1998 reflects
the impact of this 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 contingent 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 contingent deferred sales charge of up to 1% if redeemed within
the first 12 months.
Delaware Cash Reserve Class B and Class C shares 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 or Class C may be made only when
establishing a Wealth Builder plan. Performance excluding sales charge for Class
B and Class C assumes investment was either not redeemed or that contingent
deferred sales charges did not apply.
<PAGE>
8 money market fund
Financial Statements
DELAWARE GROUP CASH RESERVE, INC.
STATEMENT OF NET ASSETS
SEPTEMBER 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
PRINCIPAL MARKET
AMOUNT VALUE
----------- -----------
COMMERCIAL PAPER - 85.61%
FINANCIAL - 57.80%
Aegon Funding 5.22% 11/12/99 ...................... $10,000,000 $9,939,100
Allianz of America
5.29% 10/13/99 ................................. 10,000,000 9,982,366
5.32% 11/16/99 ................................. 8,000,000 7,945,618
5.35% 11/18/99 ................................. 12,000,000 11,914,400
Anzdel 5.14% 10/06/99 ............................. 10,000,000 9,992,861
Bank of America
5.19% 11/19/99 ................................. 10,000,000 9,929,358
5.40% 02/14/00 ................................. 10,000,000 9,796,000
Bank of Scotland 5.35% 11/29/99 ................... 10,000,000 9,912,319
Ciesco
5.13% 10/12/99 ................................. 10,000,000 9,984,356
5.18% 10/08/99 ................................. 8,000,000 7,991,942
Corporate Asset Funding
5.32% 10/08/99 ................................. 10,000,000 9,989,656
5.33% 10/14/99 ................................. 10,000,000 9,980,753
5.33% 10/22/99 ................................. 10,000,000 9,968,908
Den Danske 5.14% 10/22/99 ......................... 11,000,000 10,967,050
Fleet Funding
5.28% 10/01/99 ................................. 10,000,000 10,000,000
5.34% 11/19/99 ................................. 5,051,000 5,014,288
5.36% 11/08/99 ................................. 2,317,000 2,303,891
5.77% 03/14/00 ................................. 10,000,000 9,735,542
General Electric Capital
5.17% 11/03/99 ................................. 10,000,000 9,952,608
5.32% 12/09/99 ................................. 10,000,000 9,898,033
General Electric Capital International Funding
5.77% 03/06/00 ................................. 10,000,000 9,748,364
Harvard University 5.30% 11/03/99 ................. 12,000,000 11,941,755
HD Real Estate 5.71% 02/07/00 ..................... 10,000,000 9,795,392
ING America Insurance Holding
4.85% 10/25/99 ................................. 5,000,000 4,983,833
5.27% 10/06/99 ................................. 6,000,000 5,995,608
KFW International Corp 5.34% 12/02/99 ............. 10,000,000 9,908,033
Leland Stanford JR University
5.32% 12/01/99 ................................. 10,000,000 9,909,856
5.53% 02/11/00 ................................. 10,000,000 9,795,697
Marsh USA
5.57% 04/28/00 ................................. 10,000,000 9,675,083
5.67% 03/02/00 ................................. 10,000,000 9,759,025
Metlife Funding
5.28% 10/06/99 ................................. 10,000,000 9,992,667
5.28% 10/08/99 ................................. 10,000,000 9,989,733
St. Paul Companies
5.30% 10/22/99 ................................. 10,000,000 9,969,083
5.32% 11/10/99 ................................. 10,000,000 9,940,889
5.65% 02/18/00 ................................. 10,000,000 9,780,278
<PAGE>
PRINCIPAL MARKET
AMOUNT VALUE
----------- -----------
COMMERCIAL PAPER (CONTINUED)
FINANCIAL (CONTINUED)
Swiss Re Financial Products
5.15% 10/06/99 ................................. $10,000,000 $9,992,847
5.17% 10/13/99 ................................. 8,500,000 8,485,352
5.32% 10/28/99 ................................. 5,503,000 5,481,043
5.34% 11/29/99 ................................. 6,000,000 5,947,490
UBS Finance Corp
4.90% 10/04/99 ................................. 10,000,000 9,995,917
4.94% 10/12/99 ................................. 10,000,000 9,984,967
Unumprovident Corporation 5.77% 03/17/00 .......... 5,000,000 4,865,367
USAA Capital Corporation 5.29% 10/18/99 ........... 10,000,000 9,975,019
Westpac Capital 5.82% 01/25/00 .................... 10,000,000 9,812,467
-----------
400,924,814
-----------
INDUSTRIAL - 13.44%
Baker Hughes 5.30% 10/12/99 ....................... 10,000,000 9,983,806
BP America 5.55% 10/01/99 ......................... 30,000,000 30,000,000
Gillette 5.57% 10/01/99 ........................... 21,410,000 21,410,000
Henkel 5.32% 11/29/99 ............................. 11,000,000 10,904,092
Koch 5.20% 10/26/99 ............................... 10,000,000 9,963,889
Wal-Mart Stores 5.28% 10/12/99 .................... 11,000,000 10,982,253
-----------
93,244,040
-----------
MORTGAGE BANKERS & BROKERS - 14.37%
Bear Stearns
4.85% 10/20/99 ................................. 10,000,000 9,974,403
5.45% 03/09/00 ................................. 18,000,000 17,547,556
Credit Suisse First Boston
5.57% 02/10/00 ................................. 10,000,000 9,795,767
5.80% 03/09/00 ................................. 10,000,000 9,742,222
Goldman Sachs
4.82% 10/20/99 ................................. 10,000,000 9,974,561
5.20% 11/16/99 ................................. 8,000,000 7,946,844
5.70% 02/29/00 ................................. 10,000,000 9,760,917
Morgan (J.P.)
4.82% 10/05/99 ................................. 10,000,000 9,994,644
4.90% 10/04/99 ................................. 10,000,000 9,995,917
Morgan Stanley Dean Witter 5.82% 01/27/00 ......... 5,000,000 4,904,617
-----------
99,637,448
-----------
Total Commercial Paper ............................ 593,806,302
-----------
CERTIFICATES OF DEPOSIT - 2.67%
Commerzbank 5.09% 02/16/00 ........................ 8,500,000 8,498,916
Wilmington Trust 5.25% 10/19/99 ................... 10,000,000 10,000,000
-----------
Total Certificates of Deposits .................... 18,498,916
-----------
<PAGE>
STATEMENT OF NET ASSETS (CONTINUED)
- --------------------------------------------------------------------------------
PRINCIPAL MARKET
AMOUNT VALUE
----------- -----------
SHORT-TERM TIME DEPOSITS - 4.33%
Fifth Third Bank 5.56% 10/01/99 ................... $30,000,000 $30,000,000
-----------
Total Short-Term Time Deposits .................... 30,000,000
-----------
FLOATING RATE NOTES - 6.78%
AT&T Corporation 5.27% 07/13/00 ................... 10,000,000 9,996,874
Ciesco 5.46% 08/14/00 ............................. 10,000,000 9,997,000
Morgan Stanley Dean Witter
5.61% 02/03/00 ................................. 10,000,000 10,000,000
5.61% 02/04/00 ................................. 10,000,000 10,000,000
Racers 99-16-MM 5.40% 06/02/00 .................... 7,000,000 7,000,000
-----------
Total Floating Rate Notes ......................... 46,993,874
-----------
YANKEE CD - 1.43%
Svenska Handelsbanken NY 5.15% 03/20/00 ........... 10,000,000 9,974,396
-----------
Total Yankee CD ................................... 9,974,396
-----------
TOTAL MARKET VALUE OF SECURITIES - 100.82%
(cost $699,273,488)* ...................................... $699,273,488
LIABILITIES NET OF RECEIVABLES AND
OTHER ASSETS - (0.82%) .................................... (5,711,871)
------------
NET ASSETS APPLICABLE TO 693,561,617 SHARES
($0.001 PAR VALUE) OUTSTANDING - 100.00% .................. $693,561,617
============
NET ASSET VALUE - DELAWARE CASH RESERVE A CLASS
($609,667,085 / 609,667,085 SHARES) .............................. $1.00
=====
NET ASSET VALUE - DELAWARE CASH RESERVE B CLASS
($36,392,421 / 36,392,421 SHARES) ................................ $1.00
=====
NET ASSET VALUE - DELAWARE CASH RESERVE C CLASS
($8,955,709 / 8,955,709 SHARES) .................................. $1.00
=====
NET ASSET VALUE - DELAWARE CASH RESERVE CONSULTANT CLASS
($38,546,402 / 38,546,402 SHARES) ................................ $1.00
=====
- -------------------
* Also the cost for federal income tax purposes.
See accompanying notes
<PAGE>
money market fund 9
DELAWARE GROUP CASH RESERVE, INC.
STATEMENT OF OPERATIONS
SIX MONTHS ENDED SEPTEMBER 30, 1999
(UNAUDITED)
- --------------------------------------------------------------------------------
INVESTMENT INCOME:
Interest ........................................... $16,548,997
-----------
Expenses:
Management fees .................................... $1,425,481
Dividend disbursing and
transfer agent fees and expenses ................ 1,086,950
Distribution expense ............................... 215,411
Accounting and administration ...................... 127,603
Reports and statements to shareholders ............. 151,051
Registration fees .................................. 63,800
Directors' fees .................................... 9,471
Professional fees .................................. 16,428
Taxes (other than taxes on income) ................. 5,500
Custodian fees ..................................... 17,904
Other .............................................. 58,680
----------
3,178,279
-----------
Less expenses paid indirectly ...................... (14,911)
-----------
Total expenses ..................................... 3,163,368
-----------
NET INVESTMENT INCOME .............................. 13,385,629
-----------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS ................................. $13,385,629
===========
See accompanying notes
<PAGE>
10 money market fund
DELAWARE GROUP CASH RESERVE, INC.
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED
9/30/99 3/31/99
(UNAUDITED)
------------------------------
INCREASE IN NET ASSETS FROM OPERATIONS:
Net investment income ........................ $13,385,629 $27,425,226
-------------- --------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income:
A Class ................................... (12,149,038) (24,857,705)
B Class ................................... (403,941) (542,381)
C Class ................................... (147,465) (242,117)
Consultant Class .......................... (685,185) (1,783,023)
-------------- --------------
(13,385,629) (27,425,226)
-------------- --------------
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold:
A Class ................................... 859,415,927 1,978,969,758
B Class ................................... 46,988,659 117,999,348
C Class ................................... 61,024,987 155,854,545
Consultant Class .......................... 61,225,157 485,552,242
Net asset value of shares issued upon
reinvestment of dividends from net
investment income:
A Class ................................... 11,325,379 21,171,773
B Class ................................... 341,078 412,827
C Class ................................... 128,538 202,957
Consultant Class .......................... 640,623 1,429,128
-------------- --------------
1,041,090,348 2,761,592,578
-------------- --------------
Cost of shares repurchased:
A Class ................................... (849,323,019) (1,936,369,808)
B Class ................................... (30,846,059) (105,025,829)
C Class ................................... (63,331,370) (148,625,680)
Consultant Class .......................... (66,051,142) (484,286,277)
-------------- --------------
(1,009,551,590) (2,674,307,594)
-------------- --------------
Increase in net assets derived from
capital share transactions ................. 31,538,758 87,284,984
-------------- --------------
NET INCREASE IN NET ASSETS ................... 31,538,758 87,284,984
-------------- --------------
NET ASSETS:
Beginning of year ............................ 662,022,859 574,737,875
-------------- --------------
End of period ................................ $ 693,561,617 $ 662,022,859
============== ==============
See accompanying notes
<PAGE>
money market fund 11
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 A CLASS
-----------------------------------------------------------------------
SIX MONTHS YEAR ENDED
ENDED
9/30/99(1) 3/31/99 3/31/98 3/31/97 3/31/96 3/31/95
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of year ....................... $1.000 $1.000 $1.000 $1.000 $1.000 $1.000
Income from investment operations:
Net investment income ................................. 0.021 0.045 0.048 0.045 0.049 0.039
------ ------ ------ ------ ------ ------
Total from investment operations ...................... 0.021 0.045 0.048 0.045 0.049 0.039
------ ------ ------ ------ ------ ------
Less dividends:
Dividends from net investment income .................. (0.021) (0.045) (0.048) (0.045) (0.049) (0.039)
------ ------ ------ ------ ------ ------
Total dividends ....................................... (0.021) (0.045) (0.048) (0.045) (0.049) (0.039)
------ ------ ------ ------ ------ ------
Net asset value, end of period ........................... $1.000 $1.000 $1.000 $1.000 $1.000 $1.000
====== ====== ====== ====== ====== ======
Total return ............................................. 2.12% 4.61% 4.88% 4.61% 5.01% 4.01%
Ratios and supplemental data:
Net assets, end of year (000 omitted) ................. $609,667 $588,249 $524,477 $594,877 $585,485 $605,993
Ratio of expenses to average net assets ............... 0.91% 0.90% 0.88% 0.88% 0.95% 1.01%
Ratio of net investment income to average net assets .. 4.21% 4.51% 4.78% 4.52% 4.90% 3.91%
</TABLE>
- -------------------
(1) Ratios have been annualized and total return has not been annualized.
See accompanying notes
<PAGE>
12 money market fund
FINANCIAL HIGHLIGHTS (CONTINUED)
- --------------------------------------------------------------------------------
Selected data for each share of the Fund outstanding throughout each period were
as follows:
<TABLE>
<CAPTION>
DELAWARE CASH RESERVE B CLASS
--------------------------------------------------------------
PERIOD
SIX MONTHS 5/2/94
ENDED YEAR ENDED TO
9/30/99(1) 3/31/99 3/31/98 3/31/97 3/31/96 3/31/95(2)
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of year ... $ 1.000 $ 1.000 $1.000 $ 1.000 $1.000 $1.000
Income from investment operations:
Net investment income ............. 0.016 0.035 0.038 0.035 0.039 0.028
------- ------- ------ ------- ------ ------
Total from investment operations .. 0.016 0.035 0.038 0.035 0.039 0.028
------- ------- ------ ------- ------ ------
Less dividends:
Dividends from net
investment income ............... (0.016) (0.035) (0.038) (0.035) (0.039) (0.028)
------- ------- ------ ------- ------ ------
Total dividends ................... (0.016) (0.035) (0.038) (0.035) (0.039) (0.028)
------- ------- ------ ------- ------ ------
Net asset value, end of period ....... $1.000 $ 1.000 $1.000 $ 1.000 $1.000 $1.000
======= ======= ====== ======= ====== ======
Total return(4) ...................... 1.60% 3.57% 3.84% 3.58% 3.97% 3.10%
Ratios and supplemental data:
Net assets, end of year
(000 omitted) ................... $36,392 $19,908 $6,522 $12,988 $8,127 $1,088
Ratio of expenses to average
net assets ...................... 1.91% 1.90% 1.88% 1.88% 1.95% 2.01%
Ratio of net investment income
to average net assets ........... 3.21% 3.51% 3.78% 3.52% 3.90% 2.91%
</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) Total investment return is based on the change in net asset value of a share
during the period and assumes reinvestment of distributions at net asset
value and does not reflect the impact of a sales charge.
See accompanying notes
<PAGE>
[RESTUBED FOR ABOVE]
<TABLE>
<CAPTION>
DELAWARE CASH RESERVE C CLASS
-------------------------------------------------
PERIOD
SIX MONTHS 11/29/95
ENDED YEAR ENDED TO
9/30/99(1) 3/31/99 3/31/98 3/31/97 3/31/96(3)
(UNAUDITED)
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year ..... $1.000 $ 1.000 $1.000 $1.000 $1.000
Income from investment operations:
Net investment income ............... 0.016 0.035 0.038 0.035 0.012
------ ------- ------ ------ ------
Total from investment operations .... 0.016 0.035 0.038 0.035 0.012
------ ------- ------ ------ ------
Less dividends:
Dividends from net
investment income ................. (0.016) (0.035) (0.038) (0.035) (0.012)
------ ------- ------ ------ ------
Total dividends ..................... (0.016) (0.035) (0.038) (0.035) (0.012)
------ ------- ------ ------ ------
Net asset value, end of period ......... $1.000 $ 1.000 $1.000 $1.000 $1.000
====== ======= ====== ====== ======
Total return(4) ........................ 1.61% 3.58% 3.84% 3.58% 1.24%
Ratios and supplemental data:
Net assets, end of year
(000 omitted) ..................... $8,956 $11,134 $3,702 $2,799 $304
Ratio of expenses to average
net assets ........................ 1.91% 1.90% 1.88% 1.88% 1.95%
Ratio of net investment income
to average net assets ............. 3.21% 3.51% 3.78% 3.52% 3.90%
</TABLE>
<PAGE>
money market fund 13
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
------------------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED
9/30/99(1) 3/31/99 3/31/98 3/31/97 3/31/96 3/31/95
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of year ...................... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
Income from investment operations:
Net investment income ................................ 0.020 0.043 0.045 0.043 0.047 0.037
------- ------- ------- ------- ------- -------
Total from investment operations ..................... 0.020 0.043 0.045 0.043 0.047 0.037
------- ------- ------- ------- ------- -------
Less dividends:
Dividends from net investment income ................. (0.020) (0.043) (0.045) (0.043) (0.047) (0.037)
------- ------- ------- ------- ------- -------
Total dividends ...................................... (0.020) (0.043) (0.045) (0.043) (0.047) (0.037)
------- ------- ------- ------- ------- -------
Net asset value, end of period .......................... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
======= ======= ======= ======= ======= =======
Total return ............................................ 1.99% 4.35% 4.62% 4.36% 4.75% 3.75%
Ratios and supplemental data:
Net assets, end of year (000 omitted) ................ $38,546 $42,732 $40,037 $23,468 $20,344 $18,386
Ratio of expenses to average net assets .............. 1.16% 1.15% 1.13% 1.13% 1.20% 1.26%
Ratio of net investment income to average net assets.. 3.96% 4.26% 4.53% 4.27% 4.65% 3.66%
</TABLE>
- ----------
(1) Ratios have been annualized and total return has not been annualized.
See accompanying notes
<PAGE>
14 money market fund
DELAWARE GROUP CASH RESERVE, INC.
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 1999
(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 maximum current income while
preserving principal and maintaining liquidity. It seeks to achieve its
objective 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). Interest income is recorded on the accrual basis. Discounts
and premiums on securities purchased are amortized to interest income over the
lives of the respective securities. The Fund declares dividends from net
investment income daily and pays such dividends monthly.
Certain expenses of the Fund are paid through "soft dollar" arrangements with
brokers. These transactions are done subject to best price and execution. The
amount of these expenses was approximately $14,911 for the period ended
September 30, 1999. The expenses paid under the above arrangements is included
in its respective expense caption on the Statement of Operations in the
corresponding expense offset shown as "Expenses paid indirectly".
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 of the Fund, an
annual fee which is calculated daily at the following rates: 0.45% on the first
$500 million of average daily net assets of the Fund, 0.40% on the next $500
million, 0.35% on the next $1.5 billion and 0.30% on the average daily net
assets over $2.5 billion. At September 30, 1999, the Fund had a liability for
investment management fees and other expenses payable to DMC of $144,646.
<PAGE>
The Fund has engaged Delaware Service Company, Inc. (DSC), an affiliate of DMC,
to provide dividend disbursing, transfer agent and accounting services. The Fund
pays DSC a monthly fee based on the number of shareholder accounts, shareholder
transactions and average net assets subject to certain minimums. At September
30, 1999, the Fund had a liability for such fees and other expenses payable to
DSC of $23,056.
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. At September 30, 1999,
the Fund had a liability for such fees and other expenses payable to DDLP of
$13,478.
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
9/30/99 3/31/99
---------------- ----------
Shares sold:
A Class .................................. 859,415,927 1,978,969,758
B Class .................................. 46,988,659 117,999,348
C Class .................................. 61,024,987 155,854,545
Consultant Class ......................... 61,225,157 485,552,242
Shares issued upon reinvestment of
dividends from net investment income:
A Class .................................. 11,325,379 21,171,773
B Class .................................. 341,078 412,827
C Class .................................. 128,538 202,957
Consultant Class ......................... 640,623 1,429,128
------------- -------------
1,041,090,348 2,761,592,578
------------- -------------
Shares repurchased:
A Class .................................. (849,323,019) (1,936,369,808)
B Class .................................. (30,846,059) (105,025,829)
C Class .................................. (63,331,370) (148,625,680)
Consultant Class ......................... (66,051,142) (484,286,277)
------------- -------------
(1,009,551,590) (2,674,307,594)
------------- -------------
Net increase ................................ 31,538,758 87,284,984
============= =============
<PAGE>
Board of Directors
WAYNE A. STORK
Chairman
Delaware Investments Family of Funds
Philadelphia, PA
WALTER P. BABICH
Board Chairman, Citadel Constructors, Inc.
King of Prussia, PA
DAVID K. DOWNES
President and Chief Executive Officer
Delaware Investments Family of Funds
Philadelphia, PA
JOHN H. DURHAM
Private Investor
Horsham, PA
ANTHONY D. KNERR
Consultant, Anthony Knerr & Associates
New York, NY
ANN R. LEVEN
Treasurer, National Gallery of Art
Washington, DC
THOMAS F. MADISON
President and Chief Executive Officer
MLM Partners, Inc.
Minneapolis, MN
CHARLES E. PECK
Retired
Fredericksburg, VA
JAN L. YEOMANS
Vice President and Treasurer
3M Corporation
St. Paul, MN
Affiliated Officers
RICHARD J. FLANNERY
Executive Vice President and General Counsel
Delaware Investments Family of Funds
Philadelphia, PA
BRUCE D. BARTON
President and Chief Executive Officer
Delaware Distributors, L.P.
Philadelphia, PA
ERIC E. MILLER
Senior Vice President/Secretary
and Deputy General Counsel
Delaware Investments Family of Funds
Philadelphia, PA
[PHOTO OF GLOBES]
<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 and the Delaware
Investments Performance Update for the most recently completed calendar quarter.
The Prospectus sets forth details about charges, expenses, investment objectives
and operating policies of the Fund. You should read the prospectus carefully
before you invest. 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 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
For Shareholders
1.800.523.1918
For Securities Dealers
1.800.362.7500
For Financial Institutions
Representatives Only
1.800.659.2265
www.delawareinvestments.com
An investment in the Fund is not insured or guaranteed by the Federal Deposit
Insurance Corporation or any other government agency. Although the Fund seeks to
preserve the value of your investment at $1.00 per share, it is possible to lose
money by investing in the Fund.
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 [9/99] PP11/99
(2264) (J5249)
(photo of globes)
