DELAWARE GROUP CASH RESERVE INC, 485APOS, 1999-03-26

DELAWARE GROUP CASH RESERVE INC
485APOS, 1999-03-26

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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM N-1A

File No. 2-60770

REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 X

Pre-Effective Amendment No.
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Post-Effective Amendment No. 43 X
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AND

REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940 X

Amendment No. 43
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DELAWARE GROUP CASH RESERVE, INC.
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(Exact Name of Registrant as Specified in Charter)

1818 Market Street, Philadelphia, Pennsylvania 19103
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(Address of Principal Executive Offices) (Zip Code)

Registrant's Telephone Number, including Area Code: (215) 255-2923
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George M. Chamberlain, Jr., 1818 Market Street, Philadelphia, PA 19103
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(Name and Address of Agent for Service)

Approximate Date of Public Offering: May 30, 1999
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It is proposed that this filing will become effective:

immediately upon filing pursuant to paragraph (b)
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on (date) pursuant to paragraph (b)
------
60 days after filing pursuant to paragraph (a)(1)
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X on May 30, 1999 pursuant to paragraph (a)(1)
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75 days after filing pursuant to paragraph (a)(2)
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on (date) pursuant to paragraph (a)(2) of Rule 485
------

If appropriate:
_____ this post-effective amendment designates a new
effective date for a previously filed post-effective
amendment

Title of Securities Being Registered
------------------------------------
Delaware Cash Reserve A Class
Delaware Cash Reserve B Class
Delaware Cash Reserve C Class
Delaware Cash Reserve Consultant Class

<PAGE>

--- C O N T E N T S ---

This Post-Effective Amendment No. 43 to Registration File No. 2-60770 includes
the following:

1. Facing Page

2. Contents Page

3. Cross-Reference Sheets

4. Part A - Prospectuses

5. Part B - Statement of Additional Information

6. Part C - Other Information

7. Signatures

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CROSS-REFERENCE SHEET*

PART A
<TABLE>
<CAPTION>

Item No. Description Location in Prospectuses
- -------- ----------- ------------------------
Consultant
A Class B Class/C Class Class
------- --------------- ----------
<C> <S>
1 Front and Back Cover Pages Same Same Same

2 Risk/Return Summary: Fund profile Fund profile Fund profile
Investments, Risks and Performance

3 Risk/Return Summary: Fund profile Fund profile Fund profile
Fee Table

4 Investment Objectives, Principal How we manage How we manage How we manage
Investment Strategies, and Related the Fund the Fund the Fund
Risks

5 Management's Discussion of N/A N/A N/A
Performance

6 Management, Organization and Who manages Who manages Who manages
Capital Structure the Fund the Fund the Fund

7 Shareholder Information How to buy How to buy How to buy
shares; How to shares; How to shares; How to
redeem shares; redeem shares; redeem shares;
Special Services; Special Services; Dividends,
Dividends, Dividends, distributions
distributions and distributions and and taxes all
taxes all under taxes all under under About
About your About your account
account account

8 Distribution Arrangements Choosing a share Choosing a share About your
class; How to class; How to account
reduce sales reduce sales
charges under charges under
About your About your
account account

9 Financial Highlights Information Financial Financial Financial
Highlights Highlights Highlights

</TABLE>
* This filing relates to Registrant's Delaware Cash Reserve A Class,
Delaware Cash Reserve B Class, Delaware Cash Reserve C Class and
Delaware Cash Reserve Consultant Class. There are separate
prospectuses for each of the Delaware Cash Reserve A Class and
Delaware Cash Reserve Consultant Class and a combined prospectus for
Delaware Cash Reserve B Class and Delaware Cash Reserve C Class. The
four classes have a common Statement of Additional Information and
Part C.

<PAGE>

CROSS REFERENCE SHEET

PART B
<TABLE>
<CAPTION>
Location in Statement
Item No. Description of Additional Information
- -------- ----------- -------------------------

<S> <C>
10 Cover Page and Table of Contents Same

11 Fund History General Information

12 Description of the Fund and Its Investments and Risks Investment Restrictions
and Policies

13 Management of the Fund Officers and Directors;
Purchasing Shares

14 Control Persons and Principal Holders of Securities Officers and Directors

15 Investment Advisory and Other Services Officers and Directors;
Purchasing Shares; Investment
Management Agreement;
General Information;
Financial Statements

16 Brokerage Allocation and Other Practices Trading Practices and Brokerage

17 Capital Stock and Other Securities Capitalization and
Noncumulative Voting
(under General Information)

18 Purchase, Redemption and Pricing of Shares Purchasing Shares; Redemption and
Exchange; Determining
Offering Price and Net Asset Value

19 Taxation of the Fund Accounting and Tax Issues; Taxes

20 Underwriters Purchasing Shares

21 Calculation of Performance Data Performance Information

22 Financial Statements Financial Statements

</TABLE>
<PAGE>

CROSS REFERENCE SHEET

PART C
<TABLE>
<CAPTION>

Item No. Description Location in Part C
- -------- ----------- ------------------

<S> <C>
23 Exhibits Item 23

24 Persons Controlled by or under Common
Control with Registrant Item 24

25 Indemnification Item 25

26 Business and Other Connections of the Investment Adviser Item 26

27 Principal Underwriters Item 27

28 Location of Accounts and Records Item 28

29 Management Services Item 29

30 Undertakings Item 30

</TABLE>

<PAGE>

DELAWARE
INVESTMENTS
-----------
Philadelphia * London

Delaware Cash Reserve

Class A

Prospectus
May 30, 1999

Money Market Fund

The Securities and Exchange Commission has not approved or disapproved these
securities or passed upon the accuracy of this prospectus, and any
representation to the contrary is a criminal offense.

<PAGE>

Table of Contents

Fund profile page
Delaware Cash Reserve

How we manage the Fund
Our investment strategies
The risks of investing in the Fund

Who manages the Fund page
Investment manager

Fund Administration (Who's who)

About your account page
Investing in the Fund
How to buy shares
Retirement plans
How to redeem shares
Account minimum
Special services
Dividends, distributions and taxes

Certain management considerations page

Financial information page

2
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Profile: Delaware Cash Reserve

What are the Fund's goals?
Delaware Cash Reserve seeks to provide maximum current income, while preserving
principal and maintaining liquidity. Although the Fund will strive to achieve
its goal, there is no assurance that it will.

What are the Fund's main investment strategies?
Delaware Cash Reserve invests in short-term money market securities, including
securities issued or guaranteed by the U.S. government, its agencies or
instrumentalities and short-term debt instruments of banks and corporations.

Delaware Cash Reserve is a money market fund. A money market fund is designed
for stability of principal; consequently, the level of income fluctuates.

We maintain an average maturity of 90 days or less. Also, we do not purchase any
securities with an effective remaining maturity of more than 397 days,
(approximately 13 months.)

What are the main risks of investing in the Fund?
Delaware Cash Reserve will be affected primarily by declines in interest rates
that would reduce the income provided by the Fund. For a more complete
discussion of risk, please turn to "The risks of investing in the Fund."

An investment in the Fund is not a deposit of any bank and is not insured or
guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other
government agency. Although the Fund seeks to preserve the value of your
investment at $1 per share, it is possible to lose money by investing in the
Fund.

Who should not invest in the Fund
o Investors with long-term financial goals.
o Investors looking for relatively high current income.

You should keep in mind that an investment in the Fund is not a complete
investment program; it should be considered just one part of your total
financial plan. Be sure to discuss this Fund with your financial adviser to
determine whether it is an appropriate choice for you.

3
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How has the Fund performed?

This bar chart can help you evaluate the potential risks of investing in the
Fund. We show how returns for the Fund's Class A shares have varied over the
past ten calendar years, as well as average annual returns for one, five and ten
year periods.

[GRAPHIC OMITTED: BAR CHART SHOWING YEAR BY YEAR TOTAL RETURN (CLASS A) ]

Year-by-year total return (Class A)

- -----------------------------------------------
1998 00.00%
- -----------------------------------------------
1997 00.00%
- -----------------------------------------------
1996 00.00%
- -----------------------------------------------
1995 00.00%
- -----------------------------------------------
1994 00.00%
- -----------------------------------------------
1993 00.00%
- -----------------------------------------------
1992 00.00%
- -----------------------------------------------
1991 00.00%
- -----------------------------------------------
1990 00.00%
- -----------------------------------------------
1989 00.00%
- -----------------------------------------------

As of March 31, 1999, the Fund's Class A had a year-to-date return of 00.00%.
During the periods illustrated in this bar chart, the Fund's Class A's highest
return was 00.00% for the quarter ended _________________ and its lowest return
was 00.00% for the quarter ended _____________.

Average annual returns for periods ending 12/31/98

- -----------------------------------------------
Delaware Cash Reserve
A Class
- -----------------------------------------------
1 year ended
12/31/98 00.00%
- -----------------------------------------------
5 years ended
12/31/98 00.00%
- -----------------------------------------------
10 years ended
12/31/98 00.00%
- -----------------------------------------------

Investors interested in obtaining the 7-day yield for the class can call
800.523.1918.

4
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What are the Fund's fees and expenses?
You do not pay sales charges directly from your investments when you buy or sell
Class A shares of the Fund.

- -----------------------------------------------------------------
Maximum sales charge (load) imposed on purchases as none
a percentage of offering price
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Maximum sales charge (load) imposed on reinvested none
dividends
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Redemption fees none
- -----------------------------------------------------------------
Exchange fees none(1)
- -----------------------------------------------------------------

Annual fund operating expenses are deducted from the Fund's assets. We will not
charge you separately for these expenses. These expenses are based on amounts
incurred during the Fund's most recent fiscal year.

- -----------------------------------------------------------------
Management fees 0.00%
- -----------------------------------------------------------------
Distribution and service (12b-1) fees none
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Other expenses 0.00%
- -----------------------------------------------------------------
Total operating expenses 0.00%
- -----------------------------------------------------------------

This example is intended to help you compare the cost of investing in the Fund
to the cost of investing in other mutual funds with similar investment
objectives. We show the cumulative amount of Fund expenses on a hypothetical
investment of $10,000 with an annual 5% return over the time shown. (2) This is
an example only, and does not represent future expenses, which may be greater or
less than those shown here.

- ------------------------------
1 year $000
- ------------------------------
3 years $000
- ------------------------------
5 years $0,000
- ------------------------------
10 years $0,000
- ------------------------------

(1) Exchanges are subject to the requirements of each fund in the Delaware
Investments family. A sales charge may apply if you exchange your shares
into a fund that has a sales charge.

5
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How we manage the Fund

We invest primarily in short-term money market securities, including securities
issued or guaranteed by the U.S. government, its agencies or instrumentalities
and short-term debt instruments of banks and corporations.

We maintain an average maturity of 90 days or less. Also, we do not purchase any
securities with an effective remaining maturity of more than 397 days
(approximately 13 months.) We may shorten or lengthen Delaware Cash Reserve's
average maturity based on our analysis of interest rate trends.

We intend to hold our investments until maturity, but we may sell them prior to
maturity in order to shorten or lengthen the average maturity of the bonds in
the portfolio, increase the yield, maintain the quality of the portfolio or
maintain a stable share value.

The securities we typically invest in

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Securities How we use them
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<S> <C>
Direct U.S. Treasury Obligations: Treasury bills, notes and We may invest without limit in U.S. Treasury securities.
bonds of varying maturities. U.S. Treasury securities are We would typically invest in Treasury bills or longer term
backed by the "full faith and credit" of the United States. Treasury securities whose remaining effective maturity is
less than 13 months.
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Certificates of deposit and obligations of both U.S. and We may invest in certificates of deposit from banks that
foreign banks: Debt instruments issued by a bank that pays have assets of at least one billion dollars.
interest.
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Investments in foreign banks and overseas branches of U.S.
banks may be subject to less stringent regulations and
different risks than U.S. domestic banks.
- ------------------------------------------------------------------------------------------------------------------------------------
Corporate Commercial Paper: Short-term debt obligations with We may invest in commercial paper that is rated P-1 or P-2
maturities ranging from 2 to 270 days, issued by companies. by Moody's and/or A-1 or A-2 by S&P. The Fund will not
invest more than 5% of its total assets in securities
rated in the second highest category by a nationally
recognized statistical ratings organization (NRSO). The
Fund may invest in commercial paper that is not rated if
the purchase is approved or ratified by the Board of
Directors.
- ------------------------------------------------------------------------------------------------------------------------------------
Asset-backed securities: Bonds or notes backed by accounts We may invest without limit in asset-backed securities. We
receivables including home equity, automobile or credit may invest only in securities rated in the highest rating
loans. category by an NRSO. We currently intend to invest only in
asset-backed securities backed by credit card receivables,
home equity loans, automobile loans and wholesale dealer
floor plans.
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Repurchase agreements: An agreement between a buyer of We may use repurchase agreements as a short-term
securities such as the Fund and a seller of securities, in investment for the Fund's cash position. In order to enter
which the seller agrees to buy the securities back within a into these repurchase agreements, the Fund must have
specified time at the same price the buyer paid for them, collateral of at least 102% of the repurchase price.
plus an amount equal to an agreed upon interest rate.
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Restricted securities: Privately placed securities whose We may invest without limitation in privately placed
resale is restricted under securities law. securities that are eligible for resale only among certain
institutional buyers without registration. These are
commonly known as "Rule 144A Securities." Other restricted
securities which are illiquid must be limited to 10% of
total Fund assets.
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Illiquid securities: Securities that do not have a ready We may not invest more than 10% of total assets in
market, and cannot be easily sold, if at all, at illiquid securities including repurchase agreements that
approximately the price that the Fund has valued them. mature in more than seven days.
- ------------------------------------------------------------------------------------------------------------------------------------

</TABLE>

6
<PAGE>

Please see the Statement of Additional Information for additional descriptions
on securities listed in the table above.

Borrowing from Banks
Delaware Cash Reserve may borrow money as a temporary measure for extraordinary
purposes or to facilitate redemptions. The Fund will not borrow money in excess
of one-third of the value of its net assets.

7
<PAGE>

<TABLE>
<CAPTION>
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Risks How we strive to manage them
Delaware Cash Reserve
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C>
Interest rate risk is the risk that securities, particularly Because Delaware Cash Reserve invests exclusively in
bonds with longer maturities, will decrease in value if short-term securities, interest rate changes are not a
interest rates rise. major risk to the value of its portfolio. However, a
decline in interest rates would reduce the level of income
provided by the Fund.
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Credit risk: The possibility that a bond's issuer (or an Delaware Cash Reserve holds only high quality short-term
entity that insures the bond) will be unable to make timely securities. Therefore, it is generally not subject to
payments of interest and principal. significant credit risk.
- ------------------------------------------------------------------------------------------------------------------------------------
We limit our investments to those that the Board of
Directors considers to be of high quality with minimal
credit risks. All investments must also meet the maturity,
quality and diversification standards that apply to
taxable money market funds. If there were a national
credit crisis or an issuer were to become insolvent, the
share value of the Fund could decline.
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Counterparty Risk: Is the risk that the Fund may lose money We try to minimize this risk by considering the
because a party that we contract with to buy or sell creditworthiness or all parties before we enter into
securities fails to fulfill its side of the agreement. transactions with them. the Where appropriate, we will
also hold collateral from counterparties consistent with
applicable regulations.
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Inflation Risk is the risk that the return from your Delaware Cash Reserve is designed for short-term
investments will be less than the increase in the cost of investment goals and therefore may not outpace inflation
living due to inflation, thus preventing you from reaching over longer time periods. For this reason, Delaware Cash
your financial goals. Reserve is not recommended as a primary investment for
people with long-term goals.
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</TABLE>

<PAGE>

Who manages the Fund

Investment Manager
The Fund is managed by Delaware Management Company, a series of Delaware
Management Business Trust, which is an indirect, wholly owned subsidiary of
Delaware Management Holdings, Inc. Delaware Management Company makes investment
decisions for the Fund, manages the Fund's business affairs and provides daily
administrative services. For its services to the Fund, the manager was paid
0.00% of average daily net assets for the last fiscal year.

Who's who?
This diagram shows the various organizations involved with managing,
administering, and servicing the Delaware Investments funds.

[GRAPHIC OMITTED: DIAGRAM SHOWING THE VARIOUS ORGANIZATIONS INVOLVED
WITH MANAGING, ADMINISTERING, AND SERVICING THE DELAWARE INVESTMENTS
FUNDS]

Board of Directors

Investment Manager The Fund Custodian
Delaware Management Company The Chase Manhattan Bank
One Commerce Square 4 Chase Metrotech Center
Philadelphia, PA 19103 Brooklyn, NY 11245

Portfolio managers Service agent Distributor
Delaware Service Company, Inc. Delaware Distributors, L.P.
1818 Market Street 1818 Market Street
Philadelphia, PA 19103 Philadelphia, PA 19103

Financial advisers

Shareholders

Board of directors A mutual fund is governed by a board of directors which has
oversight responsibility for the management of the fund's business affairs.
Directors establish procedures and oversee and review the performance of the
investment manager, the distributor and others that perform services for the
fund. At least 40% of the board of directors must be independent of the fund's
investment manager or distributor. These independent fund directors, in
particular, are advocates for shareholder interests.

Investment manager An investment manager is a company responsible for selecting
portfolio investments consistent with objective and policies stated in the
mutual fund's prospectus. The investment manager places portfolio orders with
broker/dealers and is responsible for obtaining the best overall execution of
those orders. A written contract between a mutual fund and its investment
manager specifies the services the manager performs. Most management contracts
provide for the manager to receive an annual fee based on a percentage of the
fund's average daily net assets. The manager is subject to numerous legal
restrictions, especially regarding transactions between itself and the funds it
advises.

Portfolio managers Portfolio managers are employed by the investment manager to
make investment decisions for individual portfolios on a day-to-day basis.

Custodian Mutual funds are legally required to protect their portfolio
securities and typically place them with a qualified bank custodian who
segregates fund securities from other bank assets.

9
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Distributor Most mutual funds continuously offer new shares to the public
through distributors who are regulated as broker-dealers and are subject to
National Association of Securities Dealers, Inc. (NASD) rules governing mutual
fund sales practices.

Service agent Mutual fund companies employ service agents (sometimes called
transfer agents) to maintain records of shareholder accounts, calculate and
disburse dividends and capital gains and prepare and mail shareholder statements
and tax information, among other functions. Many service agents also provide
customer service to shareholders.

Financial advisers Financial advisers provide advice to their clients--analyzing
their financial objectives and recommending appropriate funds or other
investments. Financial advisers are compensated for their services, generally
through sales commissions, and through 12b-1 and/or service fees deducted from
the fund's assets.

Shareholders Like shareholders of other companies, mutual fund shareholders have
specific voting rights, including the right to elect directors. Material changes
in the terms of a fund's management contract must be approved by a shareholder
vote, and funds seeking to change fundamental investment objectives or policies
must also seek shareholder approval.

10
<PAGE>

About your account

Investing in the Fund
Class A shares of the Fund are available for purchase at net asset value. They
have no front-end sales charge, no contingent deferred sales charge and are not
subject to 12b-1 fees.

How to buy shares

[GRAPHIC OMITTED: ILLUSTRATION OF A PERSON]

Through your financial adviser
Your financial adviser can handle all the details of purchasing shares,
including opening an account. Your adviser may charge a separate fee for this
service.

[GRAPHIC OMITTED: ILLUSTRATION OF AN ENVELOPE]

By mail
Complete an investment slip and mail it with your check, made payable to the
fund and class of shares you wish to purchase, to Delaware Investments, P.O. Box
7577, Philadelphia, PA 19101. If you are making an initial purchase by mail, you
must include a completed investment application (or an appropriate retirement
plan application if you are opening a retirement account) with your check.

[GRAPHIC OMITTED: ILLUSTRATION OF A JAGGED LINE]

By wire
Ask your bank to wire the amount you want to invest to First Union Bank, ABA
#031201467, Bank Account number 2014 12893 4013. Include your account number and
the name of the fund in which you want to invest. If you are making an initial
purchase by wire, you must call us so we can assign you an account number.

[GRAPHIC OMITTED: ILLUSTRATION OF AN EXCHANGE SYMBOL]

By exchange
You can exchange all or part of your investment in one or more funds in the
Delaware Investments family for shares of other funds in the family. Please keep
in mind, however, that you may not exchange your shares for Class B or Class C
shares. To open an account by exchange, call the Shareholder Service Center at
800.523.1918.

[GRAPHIC OMITTED: ILLUSTRATION OF A KEYPAD]

Through automated shareholder services
You can purchase or exchange shares through Delaphone, our automated telephone
service, or through our web site, www.delawarefunds.com. For more information
about how to sign up for these services, call our Shareholder Service Center at
800.523.1918.

11
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About your account (continued)

How to buy shares (continued)

Once you have completed an application, you can generally open an account with
an initial investment of $1,000--and make additional investments at any time for
as little as $100. If you are buying shares in an IRA or Roth IRA, under the
Uniform Gifts to Minors Act or the Uniform Transfers to Minors Act; or through
an Automatic Investing Plan, the minimum purchase is $250, and you can make
additional investments of only $25. The minimum for an Education IRA is $500.
The minimums vary for retirement plans other than IRAs, Roth IRAs or Education
IRAs.

We determine the Fund's net asset value (NAV) per share at the close of trading
of the New York Stock Exchange each business day that the Exchange is open. We
strive to manage the value of the Fund's securities to stabilize the Fund's net
asset value at $1.00 per share. Although we make every effort to maintain a
stable net asset value, there is no assurance that we will always be able to do
so. We calculate net asset value by adding the market value of all the
securities and assets in the Fund's portfolio, deducting all liabilities, and
dividing the resulting number by the number of shares outstanding. The result is
the net asset value per share. We price securities and other assets for which
market quotations are available at their market value. We price fixed-income
securities on the basis of valuations provided to us by an independent pricing
service that uses methods approved by the board of directors. Any fixed-income
securities that have a maturity of less than 60 days we price at amortized cost.
We price all other securities at their fair market value using a method approved
by the board of directors.

The price you pay for shares will depend on when we receive your purchase order.
If we or an authorized agent receive your order before the close of trading on
the New York Stock Exchange (normally 4:00 p.m. Eastern Time) on a business day,
you will pay that day's closing share price which is based on the Fund's net
asset value. If we receive your order after the close of trading, you will pay
the next business day's price. A business day is any day that the New York Stock
Exchange is open for business. Currently the Exchange is closed when the
following holidays are observed: New Year's Day, Martin Luther King, Jr.'s
Birthday, Presidents' Day, Good Friday, Memorial Day, Independence Day, Labor
Day, Thanksgiving and Christmas. We reserve the right to reject any purchase
order.

Retirement plans
In addition to being an appropriate investment for your Individual Retirement
Account (IRA), Roth IRA and Education IRA, shares in the Fund may be suitable
for group retirement plans. You may establish your IRA account even if you are
already a participant in an employer-sponsored retirement plan. For more
information on how shares in the Fund can play an important role in your
retirement planning or for details about group plans, please consult your
financial adviser, or call 800.523.1918.

12
<PAGE>

How to redeem shares

[GRAPHIC OMITTED: ILLUSTRATION OF A PERSON]

Through your financial adviser
Your financial adviser can handle all the details of redeeming your shares. Your
adviser may charge a separate fee for this service.

[GRAPHIC OMITTED: ILLUSTRATION OF AN ENVELOPE]

By mail
You can redeem your shares (sell them back to the fund) by mail by writing to:
Delaware Investments, 1818 Market Street, Philadelphia, PA 19103-3682. All
owners of the account must sign the request, and for redemptions of $50,000 or
more, you must include a signature guarantee for each owner. Signature
guarantees are also required when redemption proceeds are going to an address
other than the address of record on an account.

[GRAPHIC OMITTED: ILLUSTRATION OF A TELEPHONE]

By telephone
You can redeem up to $50,000 of your shares by telephone. You may have the
proceeds sent to you by check, or, if you redeem at least $1,000 of shares, you
may have the proceeds sent directly to your bank by wire. Bank information must
be on file before you request a wire redemption.

[GRAPHIC OMITTED: ILLUSTRATION OF A JAGGED LINE]

By wire
You can redeem $1,000 or more of your shares and have the proceeds deposited
directly to your bank account the next business day after we receive your
request. If you request a wire deposit, the First Union Bank fee (currently
$7.50) will be deducted from your proceeds. Bank information must be on file
before you request a wire redemption.

[GRAPHIC OMITTED: ILLUSTRATION OF A KEYPAD]

Through automated shareholder services
You can redeem shares through Delaphone, our automated telephone service, or
through our web site, www.delawarefunds.com. For more information about how to
sign up for these services, call our Shareholder Service Center at 800.523.1918.

<PAGE>

About your account (continued)

How to redeem shares (continued)

If you hold your shares in certificates, you must submit the certificates with
your request to sell the shares. We recommend that you send your certificates by
certified mail.

When you send us a properly completed request to redeem or exchange shares, you
will receive the net asset value as determined on the business day we receive
your request. We will send you a check, normally the next business day, but no
later than seven days after we receive your request to sell your shares. If you
purchased your shares by check, we will wait until your check has cleared, which
can take up to 15 days, before we send your redemption proceeds.

Account minimum
If you redeem shares and your account balance falls below the required account
minimum of $1,000 ($250 for IRAs, Uniform Gift to Minors Act accounts or
accounts with automatic investing plans, $500 for Education IRAs) for three or
more consecutive months, you will have until the end of the current calendar
quarter to raise the balance to the minimum. If your account is not at the
minimum by the required time, you will be charged a $9 fee for that quarter and
each quarter after that until your account reaches the minimum balance. If your
account does not reach the minimum balance, the Fund may redeem your account
after 60 days' written notice to you.

<PAGE>

Special services
To help make investing with us as easy as possible, and to help you build your
investments, we offer the following special services.

Automatic Investing Plan
The Automatic Investing Plan allows you to make regular monthly investments
directly from your checking account.

Direct Deposit
With Direct Deposit you can make additional investments through payroll
deductions, recurring government or private payments such as Social Security or
direct transfers from your bank account.

Wealth Builder Option
With the Wealth Builder Option you can arrange automatic monthly exchanges
between your shares in one or more Delaware Investments funds. Wealth Builder
exchanges are subject to the same rules as regular exchanges (see below) and
require a minimum monthly exchange of $100 per fund.

Dividend Reinvestment Plan
Through our Dividend Reinvestment Plan, you can have your distributions
reinvested in your account or the same share class in another fund in the
Delaware Investments family. The shares that you purchase through the Dividend
Reinvestment Plan are not subject to a front-end sales charge or to a contingent
deferred sales charge. You may not reinvest distributions in Class B or Class C
shares of the funds in the Delaware Investments family.

Exchanges
You can exchange all or part of your shares for shares of the same class in
another Delaware Investments fund. If you exchange shares to a fund that has a
sales charge you will pay any applicable sales charges on your new shares. You
don't pay sales charges on shares that are acquired through the reinvestment of
dividends. You may have to pay taxes on your exchange. When you exchange shares,
you are purchasing shares in another fund so you should be sure to get a copy of
the fund's prospectus and read it carefully before buying shares through an
exchange. You may not exchange your shares for Class B and Class C shares of the
funds in the Delaware Investments family.

In certain circumstance, Class A shares of funds other than Delaware Cash
Reserve may be subject to a contingent deferred sales charge for up to two years
after purchase. This would occur if the fund normally had a front-end sales
charge, but the shares were purchased without paying a sales charge and a
financial adviser was paid a commission on the purchase. If you purchase Class A
shares of another Fund in this manner, you may exchange them for shares of
Delaware Cash Reserve A. You will not have to pay the contingent deferred sales
charge at the time of the exchange. However, you will have to pay the contingent
deferred sales if you later redeem your shares of Delaware Cash Reserve A or if
you exchange them for shares of another fund and then redeem those shares. The
time that you are invested in Delaware Cash Reserve will count toward the
fulfillment of the two-year holding period.

15
<PAGE>

About your account (continued)

Special services (continued)

MoneyLineSM On Demand Service
Through our MoneyLineSM On Demand Service, you or your financial adviser may
transfer money between your Fund account and your predesignated bank account by
telephone request. This service is not available for retirement plans, except
for purchases into IRAs.
MoneyLine has a minimum transfer of $25 and a maximum transfer of $50,000.

MoneyLine Direct Deposit Service
Through our MoneyLine Direct Deposit Service you can have $25 or more in
dividends and distributions deposited directly to your bank account. Delaware
Investments does not charge a fee for this service; however, your bank may
assess one. This service is not available for retirement plans.

Systematic Withdrawal Plan
Through our Systematic Withdrawal Plan you can arrange a regular monthly or
quarterly payment from your account made to you or someone you designate. If the
value of your account is $5,000 or more, you can make withdrawals of at least
$25 monthly, or $75 quarterly. You may also have your withdrawals deposited
directly to your bank account through our MoneyLine Direct Deposit Service.

Dividends, distributions and taxes
Dividends are declared daily and paid monthly. Short-term capital gains may be
paid with the daily dividend or distributed annually. We automatically reinvest
all dividends and capital, unless you tell us otherwise.

Tax laws are subject to change, so we urge you to consult your tax adviser about
your particular tax situation and how it might be affected by current tax law.
The tax status of your dividends from the Fund is the same whether you reinvest
your dividends or receive them in cash. Distributions from the Fund's long-term
capital gains, if any, are taxable as capital gains, while distributions from
short-term capital gains and net investment income are generally taxable as
ordinary income. Any capital gains may be taxable at different rates depending
on the length of time the Fund held the assets. In addition, you may be subject
to state and local taxes on distributions.

We will send you a statement each year by January 31 detailing the amount and
nature of all dividends and capital gains that you were paid for the prior year.

16
<PAGE>

Certain management considerations

Year 2000
As with other mutual funds, financial and business organizations and individuals
around the world, the Fund could be adversely affected if the computer systems
used by its service providers do not properly process and calculate date-related
information from and after January 1, 2000. This is commonly known as the "Year
2000 Problem." The Fund is taking steps to obtain satisfactory assurances that
its major service providers are taking steps reasonably designed to address the
Year 2000 Problem on the computer systems that the service providers use.
However, there can be no assurance that these steps will be sufficient to avoid
any adverse impact on the business of the Fund. The Year 2000 Problem may also
adversely affect the issuers of securities in which the Fund invests. The
portfolio manager and investment professionals of the Fund consider Year 2000
compliance in the securities selection and investment process. However, there
can be no guarantee that, even with their due diligence efforts, they will be
able to predict the affect of Year 2000 on any company or the performance of its
securities.

Investments by Fund of Funds
The Fund accepts investments from the series portfolios of Delaware Group
Foundation Funds, a fund of funds. From time to time, the Fund may experience
large investments or redemptions due to allocations or rebalancings by
Foundation Funds. While it is impossible to predict the overall impact of these
transactions over time, there could be adverse effects on portfolio management.
For example, the Fund may be required to sell securities or invest cash at times
when it would not otherwise do so. These transactions could also have tax
consequences if sales of securities result in gains, and could also increase
transaction costs or portfolio turnover. The manager will monitor transactions
by Foundation Funds and will attempt to minimize any adverse effects on both the
Fund and Foundation Funds as a result of these transactions.

<PAGE>

Financial information

Financial highlights
The financial highlights table is intended to help you understand the Fund's
financial performance. All "per share" information reflects financial results
for a single Fund share. This information has been audited by Ernst & Young LLP,
whose report, along with the Fund's financial statements, is included in the
Fund's annual report, which is available upon request by calling 800.523.1918.
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------
Class A Shares
Year Ended 3/31
------------------------------------------------
Delaware Cash Reserve 1999 1998 1997 1996 1995
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period

Income from investment operations
Net investment income
Total from investment operations

Less dividends and distributions
Dividends from net investment income
Total dividends and distributions

Net asset value, end of period

Total return

Ratios and supplemental data
Net assets, end of period (000 omitted)
Ratio of expenses to average net assets
Ratio of net investment income to average net assets

</TABLE>

<PAGE>

How to read the financial highlights

Net investment income
Net investment income includes dividend and interest income earned from the
Fund's securities; it is after expenses have been deducted.

Net asset value (NAV)
This is the value of a mutual fund share, calculated by dividing the net assets
by the number of shares outstanding.

Total return
This represents the rate that an investor would have earned or lost on an
investment in the Fund. In calculating this figure for the financial highlights
table, we include applicable fee waivers and assume the shareholder has
reinvested all dividends and realized gains.

Net assets
Net assets represent the total value of all the assets in the Fund's portfolio,
minus any liabilities, that are attributable to that class of the Fund.

Ratio of expenses to average net assets
The expense ratio is the percentage of net assets that a fund pays annually for
operating expenses and management fees. These expenses include accounting and
administration expenses, services for shareholders, and similar expenses.

Ratio of net investment income to average net assets
We determine this ratio by dividing net investment income by average net assets.

19
<PAGE>

[begin glossary]

How to use this glossary

Words found in the glossary are printed in boldface only the first time they
appear in the prospectus. So if you would like to know the meaning of a word
that isn't in boldface, you might still find it in the glossary.

Amortized cost
Amortized cost is a method used to value a fixed-income security that starts
with the face value of the security and then adds or subtracts from that value
depending on whether the purchase price was greater or less than the value of
the security at maturity. The amount greater or less than the par value is
divided equally over the time remaining until maturity.

Average maturity
An average of when the individual bonds and other debt securities held in a
portfolio will mature.

Bond
A debt security, like an IOU, issued by a company, municipality or government
agency. In return for lending money to the issuer, a bond buyer generally
receives fixed periodic interest payments and repayment of the loan amount on a
specified maturity date. A bond's price changes prior to maturity and is
inversely related to current interest rates. When interest rates rise, bond
prices fall, and when interest rates fall, bond prices rise.

Bond ratings
Independent evaluations of creditworthiness, ranging from Aaa/AAA (highest
quality) to D (lowest quality). Bonds rated Baa/BBB or better are considered
investment grade. Bonds rated Ba/BB or lower are commonly known as junk bonds.
See also Nationally recognized statistical rating organization.

Capital
The amount of money you invest.

Capital appreciation
An increase in the value of an investment.

Commission
The fee an investor pays to a financial adviser for investment advice and help
in buying or selling mutual funds, stocks, bonds or other securities.

Compounding
Earnings on an investment's previous earnings.

Consumer Price Index (CPI)
Measurement of U.S. inflation; represents the price of a basket of commonly
purchased goods.

Contingent deferred sales charge (CDSC)
Fee charged by some mutual funds when shares are redeemed (sold back to the
fund) within a set number of years; an alternative method for investors to
compensate a financial adviser for advice and service, rather than an up-front
commission.

Corporate bond
A debt security issued by a corporation. See bond.

Cost basis
The original purchase price of an investment, used in determining capital gains
and losses.

Diversification
The process of spreading investments among a number of different securities,
asset classes or investment styles to reduce the risks of investing.

20
<PAGE>

Dividend distribution
Payments to mutual fund shareholders of dividends passed along from the fund's
portfolio of securities.

Expense ratio
A mutual fund's total operating expenses, expressed as a percentage of its total
net assets. Operating expenses are the costs of running a mutual fund, including
management fees, offices, staff, equipment and expenses related to maintaining
the fund's portfolio of securities and distributing its shares. They are paid
from the fund's assets before any earnings are distributed to shareholders.

Financial adviser
Financial professional (e.g., broker, banker, accountant, planner or insurance
agent) who analyzes clients' finances and prepares personalized programs to meet
objectives.

Fixed-income securities
With fixed-income securities, the money you originally invested is paid back at
a pre-specified maturity date. These securities, which include government,
corporate or municipal bonds, as well as money market securities, typically pay
a fixed rate of return (often referred to as interest). See bond.

Inflation
The increase in the cost of goods and services over time. U.S. inflation is
frequently measured by changes in the Consumer Price Index (CPI).

Investment goal
The objective, such as long-term capital growth or high current income, that a
mutual fund pursues.

Liquidity
The ease with which an investment can be converted into cash without a
significant loss of principal. Money markets funds are considered to be highly
liquid.

Management fee
The amount paid by a mutual fund to the investment adviser for management
services, expressed as an annual percentage of the fund's average daily net
assets.

Maturity
The length of time until a bond issuer must repay the underlying loan principal
to bondholders.

National Association of Securities Dealers (NASD)
A self-regulating organization, consisting of brokerage firms (including
distributors of mutual funds), that is responsible for overseeing the actions of
its members.

Nationally recognized statistical rating organization (NRSRO)
A company that assesses the credit quality of bonds, commercial paper, preferred
and common stocks and municipal short-term issues, rating the probability that
the issuer of the debt will meet the scheduled interest payments and repay the
principal. Ratings are published by such companies as Moody's Investors Service
(Moody's), Standard & Poor's Corporation (S&P), Duff & Phelps, Inc. (Duff), and
Fitch Investor Services, Inc. (Fitch).

Net asset value (NAV)
The daily dollar value of one mutual fund share. Equal to a fund's net assets
divided by the number of shares outstanding.

Principal
Amount of money you invest (also called capital). Also refers to a bond's
original face value, due to be repaid at maturity.

Prospectus
The official offering document that describes a mutual fund, containing
information required by the SEC, such as investment objectives, policies,
services and fees.

21
<PAGE>

Redeem
To cash in your shares by selling them back to the mutual fund.

Risk
Generally defined as variability of value; also credit risk, inflation risk,
currency and interest rate risk. Different investments involve different types
and degrees of risk.

Sales charge
Charge on the purchase or redemption of fund shares sold through financial
advisers. May vary with the amount invested. Typically used to compensate
advisers for advice and service provided.

SEC (Securities and Exchange Commission)
Federal agency established by Congress to administer the laws governing the
securities industry, including mutual fund companies.

Share classes
Different classifications of shares; mutual fund share classes offer a variety
of sales charge choices.

Signature guarantee
Certification by a bank, brokerage firm or other financial institution that a
customer's signature is valid; signature guarantees can be provided by members
of the STAMP program.

Statement of Additional Information (SAI)
The document serving as "Part B" of a fund's prospectus that provides more
detailed information about the fund's organization, investments, policies and
risks.

Stock
An investment that represents a share of ownership (equity) in a corporation.
Stocks are often referred to as "equities."

Total return
An investment performance measurement, expressed as a percentage, based on the
combined earnings from dividends, capital gains and change in price over a given
period.

Uniform Gift to Minors Act and Uniform Transfers to Minors Act
Federal and state laws that provide a simple way to transfer property to a minor
with special tax advantages.

Volatility
The tendency of an investment to go up or down in value by different magnitudes.
Investments that generally go up or down in value in relatively small amounts
are considered "low volatility" investments, whereas those investments that
generally go up or down in value in relatively large amounts are considered
"high volatility" investments.
[end glossary]

22
<PAGE>

[back cover]

Delaware Cash Reserve
Additional information about the Fund's investments is available in the Fund's
annual and semi-annual reports to shareholders. In the Fund's shareholder
reports, you will find a discussion of the market conditions and investment
strategies that significantly affected the Fund's performance during the report
period. You can find more detailed information about the Fund in the current
Statement of Additional Information, which we have filed electronically with the
Securities and Exchange Commission (SEC) and which is legally a part of this
prospectus. If you want a free copy of the Statement of Additional Information,
the annual or semi-annual report, or if you have any questions about investing
in the Fund, you can write to us at 1818 Market Street, Philadelphia, PA 19103,
or call toll-free 800.523.1918. You may also obtain additional information about
the Fund from your financial adviser.

You can find reports and other information about the Fund on the SEC web site
(http://www.sec.gov), or you can get copies of this information, after payment
of a duplicating fee, by writing to the Public Reference Section of the SEC,
Washington, D.C. 20549-6009. Information about the Fund, including its Statement
of Additional Information, can be reviewed and copied at the Securities and
Exchange Commission's Public Reference Room in Washington, D.C. You can get
information on the public reference room by calling the SEC at 1.800.SEC.0330.

Web site
www.delawarefunds.com
- ---------------------

E-mail
[email protected]

Shareholder Service Center

800.523.1918

Call the Shareholder Service Center Monday to Friday, 8 a.m. to 8 p.m. Eastern
time:

oFor fund information; literature; price, yield and performance figures.

oFor information on existing regular investment accounts and retirement plan
accounts including wire investments; wire redemptions; telephone redemptions and
telephone exchanges.

Delaphone Service

800.362.FUND (800.362.3863)

oFor convenient access to account information or current performance information
on all Delaware Investments Funds seven days a week, 24 hours a day, use this
Touch-Tone(R) service.

Investment Company Act file number: 811-2806
Cusip Number Nasdaq Symbol
245910104 DCRXX

DELAWARE
INVESTMENTS
-----------
Philadelphia * London

P-___ [--] PP 5/99

<PAGE>

DELAWARE
INVESTMENTS
-----------
Philadelphia * London

Delaware Cash Reserve

Class B * Class C

Prospectus
May 30, 1999

Money Market Fund

The Securities and Exchange Commission has not approved or disapproved these
securities or passed upon the accuracy of this prospectus, and any
representation to the contrary is a criminal offense.

<PAGE>

Table of Contents

Fund profile page
Delaware Cash Reserve

How we manage the Fund
Our investment strategies
The risks of investing in the Fund

Who manages the Fund page
Investment manager

Fund Administration (Who's who)

About your account page
Investing in the Fund
How to buy shares
Retirement plans
How to redeem shares
Account minimum
Special services
Dividends, distributions and taxes

Certain management considerations page

Financial information page

2
<PAGE>

Profile: Delaware Cash Reserve

Delaware Cash Reserve is a money market fund. A money market fund is designed
for stability of principal; consequently, the level of income fluctuates.

We maintain an average maturity of 90 days or less. Also, we do not purchase any
securities with an effective remaining maturity of more than 397 days,
(approximately 13 months.)

Who should invest in the Fund
o Investors with short-term financial goals who seek current income.
o Investors who do not want an investment whose value may fluctuate over the
short term.
o Investors who are looking for a short-term, relatively safe investment to
complement more long-term investments in their portfolio.
o Investors who are using this Fund as a component of an overall
investment plan that includes Class B or Class C shares of other
Delaware Investment funds.

Who should not invest in the Fund
o Investors with long-term financial goals.
o Investors looking for relatively high current income.
o Investors who are not already investing or planning to invest in Class
B or Class C shares of other Delaware Investment funds.

3
<PAGE>

How has the Fund performed?

This bar chart can help you evaluate the potential risks of investing in the
Fund. We show how returns for the Fund's Class B shares have varied over the
past ten calendar years, as well as average annual returns for one, five and ten
year periods.

[GRAPHIC OMITTED: BAR CHART SHOWING YEAR BY YEAR TOTAL RETURN (CLASS B)]

Year-by-year total return (Class B)

- --------------------------------------------
1998 00.00%
- --------------------------------------------
1997 00.00%
- --------------------------------------------
1996 00.00%
- --------------------------------------------
1995 00.00%
- --------------------------------------------

As of March 31, 1999, the Fund's Class B had a year-to-date return of 00.00%.
During the periods illustrated in this bar chart, the Fund's Class B's highest
return was 00.00% for the quarter ended _____________ and its lowest return was
00.00% for the quarter ended _______________.

The maximum Class B contingent deferred sales charge of 5%, which is normally
deducted when you redeem shares, is not reflected in the year-by-year total
returns above. If this fee were included, the returns would be less than those
shown. The average annual returns shown below do include the sales charge.

Average annual returns for periods ending 12/31/98

CLASS B (if C (if
redeemed)* redeemed)*
Inception Inception
5/2/94 11/29/95

1 year 0.00% 0.00%
Lifetime 0.00% 0.00%

* If redeemed at end of period shown. If shares were not redeemed, the
returns for Class B would be 00.00% and 00.00% for the one-year and
lifetime periods, respectively. Returns for Class C would be 00.00% and
00.00% for the one-year and lifetime periods, respectively.

Investors interested in obtaining the 7-day yield for either class can call
800.523.1918.

4
<PAGE>

What are the Fund's fees and expenses?
Sales charges are fees paid directly from your investments when you buy or sell
shares of the Fund. The Fund may waive or reduce sales charges; please see the
Statement of Additional Information for details.

- --------------------------------------------------------------------------
CLASS B C
- --------------------------------------------------------------------------
Maximum sales charge (load) imposed on purchases as none none
a percentage of offering price
- --------------------------------------------------------------------------
Maximum contingent deferred sales charge (load) as a 5%(1) 1%(2)
percentage of original purchase price or redemption
price, whichever is lower
- --------------------------------------------------------------------------
Maximum sales charge (load) imposed on reinvested none none
dividends
- --------------------------------------------------------------------------
Redemption fees none none
- --------------------------------------------------------------------------

Annual fund operating expenses are deducted from the Fund's assets before it
pays dividends and before its net asset value and total return are calculated.
We will not charge you separately for these expenses. These expenses are based
on amounts incurred during the Fund's most recent fiscal year.

- ----------------------------------------------------------------------------
Management fees 0.00% 0.00%
- ----------------------------------------------------------------------------
Distribution and service (12b-1) fees 1.00% 1.00%
- ----------------------------------------------------------------------------
Other expenses 0.00% 0.00%
- ----------------------------------------------------------------------------
Total operating expenses 0.00% 0.00%
- ----------------------------------------------------------------------------

This example is intended to help you compare the cost of investing in the Fund
to the cost of investing in other mutual funds with similar investment
objectives. We show the cumulative amount of Fund expenses on a hypothetical
investment of $10,000 with an annual 5% return over the time shown. 3 This is an
example only, and does not represent future expenses, which may be greater or
less than those shown here.

- --------------------------------------------------------------------------
Class(4) B B (if redeemed) C C (if redeemed)
- --------------------------------------------------------------------------
1 year $000 $000 $000 $000
- --------------------------------------------------------------------------
3 years $000 $000 $000 $000
- --------------------------------------------------------------------------
5 years $000 $000 $000 $000
- --------------------------------------------------------------------------
10 years $000 $000 $000 $000
- --------------------------------------------------------------------------

1 If you redeem Class B shares during the first year after you buy them,
you will pay a contingent deferred sales charge of 5%, which declines
to 4% during the second year, 3% during the third and fourth years, 2%
during the fifth year, 1% during the sixth year, and 0% thereafter.

2 Class C shares redeemed within one year of purchase are subject to a 1%
contingent deferred sales charge.

3 The Fund's actual rate of return may be greater or less than the
hypothetical 5% return we use here. Also, this example assumes that the
Fund's total operating expenses remain unchanged in each of the periods
we show.

4 The Class B example reflects the conversion of Class B shares to
Consultant Class shares after approximately eight years. Information
for the ninth and tenth years reflects expenses of the Class A shares.

5
<PAGE>

How we manage the Fund
- ----------------------

The securities we typically invest in

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------
Securities How we use them
------------------------------------------------------------------------------------------------------------------------
<S> <C>
Direct U.S. Treasury Obligations: Treasury bills, We may invest without limit in U.S. Treasury securities. We
notes and bonds of varying maturities. U.S. would typically invest in Treasury bills or longer term
Treasury securities are backed by the "full faith Treasury securities whose remaining effective maturity is less
and credit" of the United States. than 13 months.
------------------------------------------------------------------------------------------------------------------------
Certificates of deposit and obligations of We may invest in certificates of deposit from banks that
both U.S. and foreign banks: Debt have assets of at least one billion dollars.
instruments issued by a bank that pays
interest. Investments in foreign banks and overseas branches of
U.S. banks may be subject to less stringent regulations and
different risks than U.S. domestic banks.
------------------------------------------------------------------------------------------------------------------------
Corporate Commercial Paper: Short-term We may invest in commercial paper that is rated P-1 or P-2
debt obligations with maturities ranging from 2 by Moody's and/or A-1 or A-2 by S&P. The Fund will not
to 270 days, issued by companies. invest more than 5% of its total assets in securities rated in
the second highest category by a nationally recognized
statistical ratings organization (NRSO). The Fund may
invest in commercial paper that is not rated if the purchase
is approved or ratified by the Board of Directors.
------------------------------------------------------------------------------------------------------------------------
Asset-backed securities: Bonds or notes backed by We may invest without limit in asset-backed securities. We may
accounts receivables including home equity, invest only in securities rated in the highest rating
automobile or credit loans. category by an NRSO. We currently intend to invest only in
asset-backed securities backed by credit card receivables,
home equity loans, automobile loans and wholesale dealer floor
plans.
------------------------------------------------------------------------------------------------------------------------
Repurchase agreements: An agreement We may use repurchase agreements as a short-term
between a buyer of securities such as the investment for the Fund's cash position. In order to enter
Fund and a seller of securities, in which the into these repurchase agreements, the Fund must have
seller agrees to buy the securities back within collateral of at least 102% of the repurchase price.
a specified time at the same price the buyer
paid for them, plus an amount equal to an
agreed upon interest rate.
------------------------------------------------------------------------------------------------------------------------
Restricted securities: Privately placed We may invest without limitation in privately placed
securities whose resale is restricted under securities that are eligible for resale only among certain
securities law. institutional buyers without registration. These are
commonly known as "Rule 144A Securities." Other
restricted securities which are illiquid must be limited to
10% of total Fund assets.
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
6
<PAGE>

Please see the Statement of Additional Information for additional descriptions
on securities listed in the table above.

7
<PAGE>

The risks of investing in the Fund
Investing in any mutual fund involves risk, including the risk that you may
receive little or no return on your investment, and the risk that you may lose
money. Before you invest in a Fund you should carefully evaluate the risks. The
following are the chief risks you assume when investing in Delaware Cash
Reserve. Please see the Statement of Additional Information for further
discussion of these risks.
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Risks How we strive to manage them
Delaware Cash Reserve
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C>
Interest rate risk is the risk that securities, Because Delaware Cash Reserve invests exclusively in
particularly bonds with longer maturities, short-term securities, interest rate changes are not a major risk to the
decrease in value if interest rates rise. value of its portfolio. However, a decline in interest rates would reduce
the level of income provided by the Fund.
- ------------------------------------------------------------------------------------------------------------------------------------
Credit risk: The possibility that a bond's issuer (or Delaware Cash Reserve holds only high quality short-term
an entity that insures the bond) will be unable to securities. Therefore, it is generally not subject to
make timely payments of interest and principal. significant credit risk.

- ------------------------------------------------------------------------------------------------------------------------------------
Inflation Risk is the risk that the return from your Delaware Cash Reserve is designed for short-term investment
investments will be less than the increase in the goals and therefore may not outpace inflation over longer time
cost of living due to inflation, thus preventing you periods. For this reason, Delaware Cash Reserve is not
from reaching your financial goals. recommended as a primary investment for people with long-term goals.
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
8
<PAGE>

Who manages the Fund

Who's who?
This diagram shows the various organizations involved with managing,
administering, and servicing the Delaware Investments funds.

[GRAPHIC OMITTED: DIAGRAM SHOWING THE VARIOUS ORGANIZATIONS INVOLVED
WITH MANAGING, ADMINISTERING, AND SERVICING THE DELAWARE INVESTMENTS
FUNDS]
<TABLE>
<CAPTION>
Board of Directors

<S> <C> <C>
Investment Manager The Fund Custodian
Delaware Management Company The Chase Manhattan Bank
One Commerce Square 4 Chase Metrotech Center
Philadelphia, PA 19103 Brooklyn, NY 11245

Portfolio managers Service agent Distributor
Delaware Service Company, Inc. Delaware Distributors, L.P.
1818 Market Street 1818 Market Street
Philadelphia, PA 19103 Philadelphia, PA 19103

Financial advisers
</TABLE>

Shareholders

Portfolio managers Portfolio managers are employed by the investment manager to
make investment decisions for individual portfolios on a day-to-day basis.

Custodian Mutual funds are legally required to protect their portfolio
securities and typically place them with a qualified bank custodian who
segregates fund securities from other bank assets.

9
<PAGE>

10
<PAGE>

About your account

Investing in the Fund
You can choose from a number of share classes for the Fund. Because each share
class has a different combination of sales charges, fees, and other features,
you should consult your financial adviser to determine which class best suits
your investment goals and time frame.

Choosing a share class

Class B
o Class B shares have no up-front sales charge, so the full amount of
your purchase is invested in the Fund. However, you will pay a
contingent deferred sales charge if you redeem your shares within six
years after you buy them.

o If you redeem Class B shares during the first year after you buy them,
the shares will be subject to a contingent deferred sales charge of 5%.
The contingent deferred sales charge is 4% during the second year, 3%
during the third and fourth years, 2% during the fifth year, 1% during
the sixth year, and 0% thereafter.

o Under certain circumstances, the contingent deferred sales charge may
be waived; please see the Statement of Additional Information.

o For approximately eight years after you buy your Class B shares, they
are subject to annual 12b-1 fees no greater than 1% of average daily
net assets, of which 0.25% are service fees paid to the distributor,
dealers or others for providing services and maintaining accounts.

o Because of the higher 12b-1 fees, Class B shares have higher expenses
and any dividends paid on these shares are lower than dividends on
Class A shares and Consultant Class shares.

o Approximately eight years after you buy them, Class B shares
automatically convert into Consultant Class shares with a 12b-1 fee of
no more than 0.30% (currently no more than 0.25%). Conversion may occur
as late as three months after the eighth anniversary of purchase,
during which time Class B's higher 12b-1 fees apply.

o You may purchase up to $250,000 of Class B shares at any one time. The
limitation on maximum purchases varies for retirement plans.

o Unlike shares of most money market funds, Delaware Cash Reserve B Class
Shares are subject to a contingent deferred sales charge and relatively
high distribution and service fees. Because of these costs, Class B
Shares are available only to investors who already have Class B shares
of other Delaware Investments funds and want a temporary defensive
investment alternative. They are also available to investors who plan
to exchange their shares of Delaware Cash Reserve for Class B Shares
of other Delaware Investments funds.

<PAGE>

Class C
o Class C shares have no up-front sales charge, so the full amount of
your purchase is invested in the Fund. However, you will pay a
contingent deferred sales charge if you redeem your shares within 12
months after you buy them.

o Under certain circumstances the contingent deferred sales charge may be
waived; please see the Statement of Additional Information.

o Class C shares are subject to an annual 12b-1 fee which may not be
greater than 1% of average daily net assets, of which 0.25% are service
fees paid to the distributor, dealers or others for providing services
and maintaining shareholder accounts.

o Because of the higher 12b-1 fees, Class C shares have higher expenses
and pay lower dividends than Class A shares and Consultant Class
shares.

o Unlike Class B shares, Class C shares do not automatically convert into
another class.

o You may purchase any amount less than $1,000,000 of Class C shares at
any one time. The limitation on maximum purchases varies for retirement
plans.

o Unlike shares of most money market funds, Delaware Cash Reserve C Class
Shares are subject to a contingent deferred sales charge and relatively
high distribution and service fees. Because of these costs, Class C
Shares are available only to investors who already have Class C shares
of other Delaware Investments funds and want a temporary defensive
investment alternative. They are also available to investors who plan
to exchange their shares of Delaware Cash Reserve for Class C Shares
of other Delaware Investments funds.

Each share class of the Fund has adopted a separate 12b-1 plan that allows it to
pay distribution fees for the sales and distribution of its shares. Because
these fees are paid out of the Fund's assets on an ongoing basis, over time
these fees will increase the cost of your investment and may cost you more than
paying other types of sales charges.

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About your account (continued)

How to buy shares

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Through your financial adviser
Your financial adviser can handle all the details of purchasing shares,
including opening an account. Your adviser may charge a separate fee for this
service.

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By mail
Complete an investment slip and mail it with your check, made payable to the
fund and class of shares you wish to purchase, to Delaware Investments, P.O. Box
7577, Philadelphia, PA 19103-3682. If you are making an initial purchase by
mail, you must include a completed investment application (or an appropriate
retirement plan application if you are opening a retirement account) with your
check.

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By exchange
You can exchange all or part of your investment in one or more funds in the
Delaware Investments family for shares of other funds in the family. Please keep
in mind, however, that you are allowed to exchange only between like classes of
shares. To open an account by exchange, call the Shareholder Service Center at
800.523.1918.

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About your account (continued)

How to buy shares (continued)

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How to redeem shares

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Through your financial adviser
Your financial adviser can handle all the details of redeeming your shares. Your
adviser may charge a separate fee for this service.

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About your account (continued)

How to redeem shares (continued)

If you hold your shares in certificates, you must submit the certificates with
your request to sell the shares. We recommend that you send your certificates by
certified mail.

When you send us a properly completed request to redeem or exchange shares, you
will receive the net asset value as determined on the business day we receive
your request. We will deduct any applicable contingent deferred sales charges.
You may also have to pay taxes on the proceeds from your sale of shares. We will
send you a check, normally the next business day, but no later than seven days
after we receive your request to sell your shares. If you purchased your shares
by check, we will wait until your check has cleared, which can take up to 15
days, before we send your redemption proceeds.

If you are required to pay a contingent deferred sales charge when you redeem
your shares, the amount subject to the fee will be based on the shares' net
asset value when you purchased them or their net asset value when you redeem
them, whichever is less. This arrangement assures that you will not pay a
contingent deferred sales charge on any increase in the value of your shares.
You also will not pay the charge on any shares acquired by reinvesting dividends
or capital gains. If you exchange shares of one fund for shares of another, you
do not pay a contingent deferred sales charge at the time of the exchange. If
you later redeem those shares, the purchase price for purposes of the contingent
deferred sales charge formula will be the price you paid for the original
shares, not the exchange price. The redemption price for purposes of this
formula will be the NAV of the shares you are actually redeeming.

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Special services
To help make investing with us as easy as possible, and to help you build your
investments, we offer the following special services.

Automatic Investing Plan
The Automatic Investing Plan allows you to make regular monthly investments
directly from your checking account.

Dividend Reinvestment Plan
Through our Dividend Reinvestment Plan, you can have your distributions
reinvested in your account or the same share class in another fund in the
Delaware Investments family. The shares that you purchase through the Dividend
Reinvestment Plan are not subject to a front-end sales charge or to a contingent
deferred sales charge. Under most circumstances, you may reinvest dividends only
into like classes of shares.

Exchanges
You can exchange all or part of your shares for shares of the same class in
another Delaware Investments fund without paying a contingent deferred sales
charge at the time of the exchange. However, if you exchange shares from a money
market fund that does not have a sales charge you will pay any applicable sales
charges on your new shares. When exchanging Class B and Class C shares of one
fund for similar shares in other funds, your new shares will be subject to the
same contingent deferred sales charge as the shares you originally purchased.
The holding period for the CDSC will also remain the same, with the amount of
time you held your original shares being credited toward the holding period of
your new shares. You don't pay sales charges on shares that you acquired through
the reinvestment of dividends. You may have to pay taxes on your exchange. When
you exchange shares, you are purchasing shares in another fund so you should be
sure to get a copy of the fund's prospectus and read it carefully before buying
shares through an exchange.

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About your account (continued)

Special services (continued)

MoneyLineSM On Demand Service
Through our MoneyLineSM On Demand Service, you or your financial adviser may
transfer money between your Fund account and your predesignated bank account by
telephone request. This service is not available for retirement plans, except
for purchases into IRAs. MoneyLine has a minimum transfer of $25 and a maximum
transfer of $50,000.

MoneyLine Direct Deposit Service
Through our MoneyLine Direct Deposit Service you can have $25 or more in
dividends and distributions deposited directly to your bank account. Delaware
Investments does not charge a fee for this service; however, your bank may
assess one.
This service is not available for retirement plans.

Tax laws are subject to change, so we urge you to consult your tax adviser about
your particular tax situation and how it might be affected by current tax law.
The tax status of your dividends from the Fund is the same whether you reinvest
your dividends or receive them in cash. Distributions from the Fund's long-term
capital gains are taxable as capital gains, while distributions from short-term
capital gains and net investment income are generally taxable as ordinary
income. Any capital gains may be taxable at different rates depending on the
length of time the Fund held the assets. In addition, you may be subject to
state and local taxes on distributions.

We will send you a statement each year by January 31 detailing the amount and
nature of all dividends and capital gains that you were paid for the prior year.

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Certain management considerations

Investments by Fund of Funds
The Fund accepts investments from the series portfolios of Delaware Group
Foundation Funds, a fund of funds. From time to time, the Fund may experience
large investments or redemptions due to allocations or rebalancings by
Foundation Funds. While it is impossible to predict the overall impact of these
transactions over time, there could be adverse effects on portfolio management.
For example, the Fund may be required to sell securities or invest cash at times
when it would not otherwise do so. These transactions could also have tax
consequences if sales of securities result in gains, and could also increase
transactions costs or portfolio turnover. The manager will monitor transactions
by Foundation Funds and will attempt to minimize any adverse effects on both the
Fund and Foundation Funds as a result of these transactions.

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Financial information

Class B shares Class C Shares

- ------------------------------------------------------------------------------------------------------------------------------------
Year Ended 3/31/ Year Ended 3/31/
- ------------------------------------------------------------------------------------------------------------------------------------
Period Period
5/2/94(1) 11/29/95(2)
through through
1999 1998 1997 1996 3/31/95 1999 1998 1997 3/31/96
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period
- ------------------------------------------------------------------------------------------------------------------------------------
Income from investment operations
- ------------------------------------------------------------------------------------------------------------------------------------
Net investment income
- ------------------------------------------------------------------------------------------------------------------------------------
Total from investment operations
- ------------------------------------------------------------------------------------------------------------------------------------

- ------------------------------------------------------------------------------------------------------------------------------------
Less dividends and distributions
- ------------------------------------------------------------------------------------------------------------------------------------
Dividends from net investment income
- ------------------------------------------------------------------------------------------------------------------------------------
Total dividends and distributions
- ------------------------------------------------------------------------------------------------------------------------------------

- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period
- ------------------------------------------------------------------------------------------------------------------------------------

- ------------------------------------------------------------------------------------------------------------------------------------
Total return(3)
- ------------------------------------------------------------------------------------------------------------------------------------

- ------------------------------------------------------------------------------------------------------------------------------------
Ratios and supplemental data
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000 omitted)
- ------------------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets
- ------------------------------------------------------------------------------------------------------------------------------------
Ratio of net investment income to average net
assets
- ------------------------------------------------------------------------------------------------------------------------------------

- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

(1) Date of initial public offering: ratios and total return have been
annualized.
(2) Date of initial public offering; ratios have been annualized but total
return has not been annualized. (3) 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.

20
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How to read the financial highlights