<PAGE>
FOR MONEY MARKETS
DELAWARE CASH RESERVE
(various photos demonstrating service and guidance, professional management
and goals)
SERVICE AND GUIDANCE
PROFESSIONAL MANAGEMENT
1999
ANNUAL REPORT
GOALS
DELAWARE(SM)
INVESTMENTS
- ---------------------
Philadelphia o London
<PAGE>
A TRADITION OF SOUND INVESTING
COMMITMENT
A COMMITMENT
TO OUR INVESTORS
(photo of keyboard)
(photo of illustration
from Money Market Brochure)
Delaware Investments has a tradition of money management that dates back to
1929. We have a long and distinguished history of helping individuals and
institutions including some of America's largest pension funds reach their
financial goals.
Headquartered in Philadelphia, a block from the nation's oldest stock
exchange, the Delaware organization established its first mutual fund in 1938.
Delaware International Advisers Ltd., our international affiliate, was
established in 1990 and is headquartered in London.
Delaware Investments offers a full range of mutual funds. We also manage
investments for variable annuities and closed-end funds as well as offer a wide
range of retirement plan services for individuals and businesses.
Delaware manages approximately $45 billion as of March 31, 1999, in mutual
fund assets and institutional advisory accounts for more than half-a-million
investors.
Complete information on any fund offered by Delaware Investments can be found in
each fund's current prospectus. Prospectuses for all funds offered by Delaware
Investments are available from your financial adviser. Please read the
prospectus carefully before you invest or send money.
DELAWARE CASH RESERVE OBJECTIVE
To provide maximum current income while preserving principal and maintaining
liquidity.
TABLE OF CONTENTS
LETTER TO SHAREHOLDERS PAGE 1
PORTFOLIO MANAGER'S REVIEW PAGE 2
PERFORMANCE SUMMARY PAGE 4
STATEMENT OF NET ASSETS PAGE 5
FINANCIAL HIGHLIGHTS PAGE 8
MONEY MARKET
<PAGE>
APRIL 12, 1999
for money
markets
1
DEAR SHAREHOLDER:
DURING THE 12 MONTHS ENDED March 31, 1999, Delaware Cash Reserve provided a
total return of 4.61% (Class A shares with dividends reinvested). This handily
beat inflation as shown below.
Three times during the fall of 1998, the Federal Reserve Board reduced its
target for short-term interest rates, the first changes in monetary policy in
nearly three years. The Federal Reserve's Open Market Committee lowered the
federal funds rate (the interest rate charged between banks for overnight loans)
by a total of 0.75%, citing "increasing weakness in foreign economies and less
accommodative financial conditions domestically."
Any change in short-term interest rates directly affects a money market
fund's income potential -- in general, lower rates mean lower yields, and higher
rates mean higher yields. Anticipating the rate reduction, Delaware Cash
Reserve's Portfolio Manager, Cynthia I. Isom, modestly extended the Fund's
average maturity during the second and third quarters of 1998. This extension
carried over into the first quarter of 1999. Average maturity stood at 55 days
as of March 31, 1999.
Delaware Cash Reserve continues to invest in high quality money market
securities while striving to maximize income, preserve principal and maintain
liquidity. As of March 31, 1999, your Fund delivered an annual total return more
than twice the rate of inflation. This helped not only preserve, but modestly
increase the purchasing power of your investment dollars. We thank you for your
continued confidence in Delaware Investments.
Sincerely,
/s/ Wayne A. Stork /s/ David K. Downes
- --------------------------------- -------------------------------------
Wayne A. Stork David K. Downes
Director of the Fund Executive Vice President and
Chairman, Delaware Management Chief Operating Officer
Holdings, Inc. Delaware Investments Family of Funds
AS OF MARCH 31, 1999, YOUR FUND DELIVERED AN ANNUAL TOTAL RETURN MORE THAN TWICE
THE RATE OF INFLATION.
TOTAL RETURN
- --------------------------------------------------------------------------------
APRIL 1, 1998 TO MARCH 31, 1999
Delaware Cash Reserve A Class 4.61%
U.S. Consumer Price Index 1.73%
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. Performance
and yield of other Fund classes, shown on page 4, varies due to different
expenses.
<PAGE>
for money
markets
2
PORTFOLIO MANAGER'S REVIEW
(photo of couple talking to a financial adviser)
CYNTHIA I. ISOM
Vice President, Portfolio Manager
OVERVIEW
The autumn of 1998 was a difficult time for many investors. The Asian crisis
came to the forefront and financial markets were very volatile. The Federal
Reserve Board reduced interest rates in September, October and November to
increase liquidity and improve confidence in the economy and the investment
markets.
The markets have calmed considerably since the fall. In our view, the U.S.
economy remains healthy, and that strength appears to be overflowing into global
economies, even to emerging markets regions such as Asia and Latin America.
INVESTMENT STRATEGY
To safeguard and maintain income potential in the midst of uncertain markets, we
continued to invest primarily in money market instruments with the highest
credit ratings. In addition, we modestly extended the Fund's average maturity.
When the Federal Reserve eased interest rates last autumn, we decided to
extend the Fund's maturity to help safeguard the Fund's income potential. 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 within a
70-day maturity. We extended average maturity from a 40-day range to
approximately 70 days. As market conditions improved in the fourth quarter, we
steadily reigned in the Fund's maturity. As of March 31, the average weighted
maturity was 55 days, eight days longer than March 31, 1998. 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, 1998, the Fund had 69.7% of its net assets in commercial
paper. We slightly increased that allocation to 71.4% of net assets in
commercial paper as of March 31, 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 concerns and is nearly always backed by bank lines of credit.
<PAGE>
for money
markets
3
OUTLOOK
Improved global liquidity and a robust U.S. economy has many investors fearful
that the Federal Reserve may raise interest rates. These fears were heightened
on May 14, when the government reported that consumer prices rose by 0.7% in
April, the largest monthly increase since 1990. The Federal Open Market
Committee recently met on May 18, and left interest rates unchanged. They did,
however, announce a change in their policy bias towards raising interest rates
in the future. We intend to keep a watchful eye on this situation in the months
ahead and position the portfolio accordingly.
PORTFOLIO COMPOSITION
- --------------------------------------------------------------------------------
AS OF MARCH 31, 1999
Medium-Term Notes 0.8%
Federal Agency Securities 1.5%
Certificates of Deposit 9.0%
Short-Term Time Deposits 13.5%
Other 3.8%
Commercial Paper 71.4%
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 or federal governments. 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>
for money
markets
4
PERFORMANCE SUMMARY
DELAWARE CASH RESERVE'S TOTAL RETURN ADVANTAGE OVER INFLATION
GROWTH OF A $10,000 INVESTMENT JUNE 30, 1978 TO MARCH 31, 1999
DELAWARE CASH RESERVE CLASS A U.S. CONSUMER PRICE INDEX
PERIOD END MARKET VALUE MARKET VALUE
- --------------------------------------------------------------------------------
6/30/78 $10,000 $10,000
12/31/78 $10,410 $10,389
12/31/79 $11,572 $11,772
12/31/80 $13,099 $13,231
12/31/81 $15,405 $14,414
12/31/82 $17,371 $14,972
12/31/83 $18,897 $15,540
12/31/84 $20,843 $16,155
12/31/85 $22,505 $16,764
12/31/86 $23,934 $16,953
12/31/87 $25,427 $17,701
12/31/88 $27,195 $18,478
12/31/89 $29,580 $19,337
12/31/90 $31,878 $20,518
12/31/91 $33,731 $21,146
12/31/92 $34,844 $21,753
12/31/93 $35,645 $22,358
12/31/94 $36,834 $22,956
12/31/95 $38,717 $23,523
12/31/96 $40,508 $24,321
12/31/97 $42,423 $24,735
12/31/98 $44,440 $25,180
3/31/99 $44,886 $25,301
The chart assumes $10,000 invested on June 30, 1978. The initial investment was
not subject to sales charges. Past performance is not a guarantee of future
results. The U.S. Consumer Price Index represents average annualized consumer
inflation as calculated by the U.S. government. Performance of other Fund
classes vary due to different charges and expenses.
<PAGE>
DELAWARE CASH RESERVE PERFORMANCE
- --------------------------------------------------------------------------------
RETURNS THROUGH MARCH 31, 1999
<TABLE>
<CAPTION>
30 DAY YIELD
LIFETIME TEN YEARS FIVE YEARS ONE YEAR (3/31/99)
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Class A (Est. 6/30/78) +7.51% +4.93% +4.62% +4.61% +4.12%
- --------------------------------------------------------------------------------------------------------------------------
Consultant Class (Est. 3/10/88) +7.36% +4.67% +4.37% +4.35% +3.87%
- --------------------------------------------------------------------------------------------------------------------------
Class B (Est. 5/2/94)
Excluding Sales Charge +3.62% +3.57% +3.12%
Including Sales Charge +3.26% -0.43% +3.12%
- --------------------------------------------------------------------------------------------------------------------------
Class C (Est. 11/29/95)
Excluding Sales Charge +3.67% +3.58% +3.12%
Including Sales Charge +3.67% +2.58% +3.12%
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. RETURN AND YIELD 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 EACH 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 performance after March 10, 1988 reflects the impact of a 12b-1 fee.
CLASS B shares do not have a front-end sales charge, but are subject to a 1%
annual distribution and service fee. They are subject to a deferred sales charge
of up to 4% if redeemed before the end of the sixth year.
CLASS C shares are subject to a 1% annual distribution and service fee and will
be subject to a deferred sales charge of up to 1% if redeemed within the first
12 months.
Delaware Cash Reserve 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
sales charges did not apply.
<PAGE>
for money markets 5
FINANCIAL STATEMENTS
DELAWARE GROUP CASH RESERVE, INC.
STATEMENT OF NET ASSETS
MARCH 31, 1999
- --------------------------------------------------------------------------------
PRINCIPAL MARKET
AMOUNT VALUE
----------- -----------
COMMERCIAL PAPER - 71.44%
FINANCIAL - 47.61%
Allianz of America
4.86% 04/23/99 .......................... $10,000,000 $ 9,970,300
4.87% 04/09/99 .......................... 5,000,000 4,994,589
BankAmerica
4.75% 07/22/99 .......................... 10,000,000 9,852,222
4.82% 08/16/99 .......................... 7,000,000 6,871,601
4.89% 09/20/99 .......................... 10,000,000 9,766,367
BTR Dunlop
4.80% 04/26/99 .......................... 10,000,000 9,966,667
Ciesco
4.80% 04/08/99 .......................... 5,000,000 4,995,333
4.80% 04/14/99 .......................... 10,000,000 9,982,667
4.82% 04/14/99 .......................... 10,000,000 9,982,594
4.87% 05/12/99 .......................... 976,000 970,587
Corporate Asset Funding
4.85% 04/13/99 .......................... 10,000,000 9,983,833
4.85% 05/12/99 .......................... 8,000,000 7,955,811
4.88% 04/08/99 .......................... 10,000,000 9,990,511
Den Danske Corporation
4.86% 06/14/99 .......................... 10,000,000 9,900,100
Fleet Funding
4.86% 04/23/99 .......................... 5,000,000 4,985,150
4.90% 04/07/99 .......................... 3,300,000 3,297,305
General Electric Capital
4.85% 06/14/99 .......................... 5,000,000 4,950,153
4.87% 04/15/99 .......................... 10,000,000 9,981,061
4.89% 06/22/99 .......................... 10,000,000 9,888,617
Harvard University
4.80% 04/26/99 .......................... 10,000,000 9,966,667
ING America Insurance Holding
4.84% 04/22/99 .......................... 10,000,000 9,971,767
4.85% 05/12/99 .......................... 10,000,000 9,944,764
Leland Stanford JR University
4.85% 08/26/99 .......................... 8,000,000 7,841,567
Metlife Funding
4.84% 04/27/99 .......................... 10,000,000 9,965,044
National Australia Funding
5.03% 04/01/99 .......................... 25,000,000 25,000,000
Prudential Finance (Jersey)
4.80% 07/15/99 .......................... 10,000,000 9,860,000
Swiss Re Financial Products
4.82% 07/08/99 .......................... 9,000,000 8,881,910
4.83% 05/17/99 .......................... 9,000,000 8,944,455
4.84% 06/11/99 .......................... 7,000,000 6,933,181
4.88% 04/08/99 .......................... 5,000,000 4,995,256
Teco Finance Inc. ..........................
4.80% 04/27/99 .......................... 10,000,000 9,965,333
<PAGE>
- --------------------------------------------------------------------------------
PRINCIPAL MARKET
AMOUNT VALUE
----------- -----------
COMMERCIAL PAPER (CONTINUED)
FINANCIAL (CONTINUED)
UBS Finance Corp. ..........................
4.85% 04/12/99 .......................... $ 10,000,000 $ 9,985,181
4.90% 10/04/99 .......................... 10,000,000 9,746,833
Vereinsbank Financial
4.87% 04/16/99 .......................... 10,000,000 9,979,708
Westpac Capital
4.80% 06/10/99 .......................... 5,000,000 4,953,333
4.82% 04/08/99 .......................... 10,000,000 9,990,628
------------
315,211,095
------------
INDUSTRIAL - 10.10%
Clorox
4.83% 05/10/99 .......................... 10,000,000 9,947,675
Daimler Benz
5.00% 04/23/99 .......................... 10,000,000 9,969,444
Eaton
4.78% 09/24/99 .......................... 10,000,000 9,766,311
Henkel
4.74% 07/20/99 .......................... 11,000,000 10,840,683
4.85% 04/22/99 .......................... 7,000,000 6,980,196
US Borax
4.83% 06/18/99 .......................... 10,000,000 9,895,350
Washington Post
4.90% 04/09/99 .......................... 9,500,000 9,489,656
------------
66,889,315
------------
MORTGAGE BANKERS & BROKERS - 13.73%
Bear Stearns
4.77% 06/10/99 .......................... 10,000,000 9,907,250
4.87% 04/22/99 .......................... 10,000,000 9,971,592
4.875% 07/19/99 ......................... 5,000,000 4,926,198
Credit Suisse First Boston
4.76% 07/22/99 .......................... 10,000,000 9,851,911
4.80% 08/04/99 .......................... 10,000,000 9,833,333
4.81% 08/03/99 .......................... 7,000,000 6,884,026
Goldman Sachs
4.84% 07/29/99 .......................... 10,000,000 9,840,011
Morgan (JP)
4.90% 10/04/99 .......................... 10,000,000 9,746,833
Morgan Stanley Dean Witter
4.81% 05/17/99 .......................... 10,000,000 9,938,539
4.84% 04/21/99 .......................... 10,000,000 9,973,111
------------
90,872,804
------------
TOTAL COMMERCIAL PAPER ..................... 472,973,214
------------
<PAGE>
6 for money markets
DELAWARE GROUP CASH RESERVE, INC.
STATEMENT OF NET ASSETS (CONTINUED)
- --------------------------------------------------------------------------------
PRINCIPAL MARKET
AMOUNT VALUE
----------- -----------
CERTIFICATES OF DEPOSIT - 8.99%
Commerzbank
5.085% 02/16/00 ........................... $ 8,500,000 $ 8,497,478
First National Bank of Chicago
4.90% 07/06/99 ............................ 10,000,000 10,000,000
Harris Trust & Savings
4.84% 05/24/99 ............................ 10,000,000 10,000,000
Rabobank Nederland
5.59% 04/06/99 ............................ 6,000,000 5,999,859
5.75% 04/27/99 ............................ 5,000,000 4,999,829
WestDeutsche L.B .............................
4.88% 06/17/99 ............................ 10,000,000 10,000,000
Wilmington Trust
4.89% 06/23/99 ............................ 10,000,000 10,000,000
-----------
TOTAL CERTIFICATES OF DEPOSITS ............... 59,497,166
-----------
FEDERAL AGENCY - 1.51%
Federal National Mortgage Association
4.76% 04/06/99 ............................ 10,000,000 9,993,389
-----------
TOTAL FEDERAL AGENCY ......................... 9,993,389
-----------
MEDIUM-TERM NOTES - 0.76%
Abbey National Treasury
5.64% 07/15/99 ............................ 5,000,000 5,004,419
-----------
TOTAL MEDIUM-TERM NOTES ...................... 5,004,419
-----------
SHORT-TERM TIME DEPOSITS - 13.46%
Branch Banking & Trust
5.00% 04/01/99 ............................ 14,138,000 14,138,000
Chase Manhattan Bank
5.0625% 04/01/99 .......................... 25,000,000 25,000,000
Citibank
5.0625% 04/01/99 .......................... 25,000,000 25,000,000
Suntrust Bank
5.00% 04/01/99 ............................ 25,000,000 25,000,000
-----------
TOTAL SHORT-TERM TIME DEPOSITS ............... 89,138,000
-----------
<PAGE>
- --------------------------------------------------------------------------------
MARKET
VALUE
----------
TOTAL MARKET VALUE OF SECURITIES - 96.16%
(cost $636,606,188)* ..................................... $ 636,606,188
RECEIVABLES AND OTHER ASSETS NET OF
LIABILITIES - 3.84%** .................................... 25,416,671
---------------
NET ASSETS APPLICABLE TO 662,022,859 SHARES
($0.001 PAR VALUE) OUTSTANDING - 100.00% ................. $ 662,022,859
===============
NET ASSET VALUE - DELAWARE CASH RESERVE A CLASS
($588,248,798 / 588,248,798 SHARES) ................................ $1.00
=====
NET ASSET VALUE - DELAWARE CASH RESERVE B CLASS
($19,908,743 / 19,908,743 SHARES) .................................. $1.00
=====
NET ASSET VALUE - DELAWARE CASH RESERVE C CLASS
($11,133,554 / 11,133,554 SHARES) .................................. $1.00
=====
NET ASSET VALUE - DELAWARE CASH RESERVE CONSULTANT CLASS
($42,731,764 / 42,731,764 SHARES) .................................. $1.00
=====
- ---------------------
* Also the cost for federal income tax purposes.
** Of this amount, $33,118,127 represents subscriptions receivable at
March 31, 1999.
See accompanying notes
<PAGE>
for money markets 7
DELAWARE GROUP CASH RESERVE, INC.
STATEMENT OF OPERATIONS
YEAR ENDED MARCH 31, 1999
- --------------------------------------------------------------------------------
INVESTMENT INCOME:
Interest ........................................... $33,297,490
-----------
EXPENSES:
Management fees .................................... $3,028,442
Dividend disbursing and transfer agent fees
and expenses .................................... 1,922,424
Distribution expense ............................... 311,779
Accounting and administration ...................... 241,150
Reports and statements to shareholders ............. 131,200
Registration fees .................................. 88,141
Directors' fees .................................... 18,314
Professional fees .................................. 7,856
Taxes (other than taxes on income) ................. 3,000
Other .............................................. 119,958
-----------
5,872,264
-----------
NET INVESTMENT INCOME .............................. 27,425,226
-----------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS ................................. $27,425,226
===========
See accompanying notes
<PAGE>
DELAWARE GROUP CASH RESERVE, INC.
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
YEAR ENDED
3/31/99 3/31/98
--------------- ---------------
<S> <C> <C>
INCREASE IN NET ASSETS FROM OPERATIONS:
Net investment income ........................... $ 27,425,226 $ 27,978,641
--------------- ---------------
DIVIDENDS TO SHAREHOLDERS FROM:
Net investment income:
A Class ...................................... (24,857,705) (26,242,787)
B Class ...................................... (542,381) (297,746)
C Class ...................................... (242,117) (109,751)
Consultant Class ............................. (1,783,023) (1,328,357)
--------------- ---------------
(27,425,226) (27,978,641)
--------------- ---------------
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold:
A Class ...................................... 1,978,969,758 3,429,116,792
B Class ...................................... 117,999,348 65,522,239
C Class ...................................... 155,854,545 46,237,917
Consultant Class ............................. 485,552,242 475,319,290
Netasset value of shares issued upon reinvestment
of dividends from net investment income:
A Class ...................................... 21,171,773 23,567,546
B Class ...................................... 412,827 227,339
C Class ...................................... 202,957 94,442
Consultant Class ............................. 1,429,128 1,095,988
--------------- ---------------
2,761,592,578 4,041,181,553
--------------- ---------------
Cost of shares repurchased:
A Class ...................................... (1,936,369,808) (3,523,084,265)
B Class ...................................... (105,025,829) (72,215,007)
C Class ...................................... (148,625,680) (45,429,174)
Consultant Class ............................. (484,286,277) (459,846,745)
--------------- ---------------
(2,674,307,594) (4,100,575,191)
--------------- ---------------
Increase (decrease) in net assets derived from
capital share transactions ................... 87,284,984 (59,393,638)
--------------- ---------------
NET INCREASE (DECREASE) IN NET ASSETS ........... 87,284,984 (59,393,638)
--------------- ---------------
NET ASSETS:
Beginning of year ............................... 574,737,875 634,131,513
--------------- ---------------
End of year ..................................... $ 662,022,859 $ 574,737,875
=============== ===============
</TABLE>
See accompanying notes
<PAGE>
8 for money markets
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
--------------------------------------------------------
YEAR ENDED
3/31/99 3/31/98 3/31/97 3/31/96 3/31/95
<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 ................................. 0.045 0.048 0.045 0.049 0.039
------ ------ ------ ------ ------
Total from investment operations ...................... 0.045 0.048 0.045 0.049 0.039
------ ------ ------ ------ ------
Less dividends:
Dividends from net investment income .................. (0.045) (0.048) (0.045) (0.049) (0.039)
------ ------ ------ ------ ------
Total dividends ....................................... (0.045) (0.048) (0.045) (0.049) (0.039)
------ ------ ------ ------ ------
Net asset value, end of year ............................. $1.000 $1.000 $1.000 $1.000 $1.000
====== ====== ====== ====== ======
Total return ............................................. 4.61% 4.88% 4.61% 5.01% 4.01%
Ratios and supplemental data:
Net assets, end of year (000 omitted) ................. $588,249 $524,477 $594,877 $585,485 $605,993
Ratio of expenses to average net assets ............... 0.90% 0.88% 0.88% 0.95% 1.01%
Ratio of net investment income to average net assets .. 4.51% 4.78% 4.52% 4.90% 3.91%
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
DELAWARE CASH RESERVE B CLASS
--------------------------------------------------------
PERIOD
5/2/94
YEAR ENDED TO
3/31/99 3/31/98 3/31/97 3/31/96 3/31/95(1)
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period ..................... $1.000 $1.000 $1.000 $1.000 $1.000
Income from investment operations:
Net investment income ................................. 0.035 0.038 0.035 0.039 0.028
------ ------ ------ ------ ------
Total from investment operations ...................... 0.035 0.038 0.035 0.039 0.028
------ ------ ------ ------ ------
Less dividends:
Dividends from net investment income .................. (0.035) (0.038) (0.035) (0.039) (0.028)
------ ------ ------ ------ ------
Total dividends ....................................... (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
====== ====== ====== ====== ======
Total return(3) .......................................... 3.57% 3.84% 3.58% 3.97% 3.10%
Ratios and supplemental data:
Net assets, end of period (000 omitted) ............... $19,908 $6,522 $12,988 $8,127 $1,088
Ratio of expenses to average net assets ............... 1.90% 1.88% 1.88% 1.95% 2.01%
Ratio of net investment income to average net assets .. 3.51% 3.78% 3.52% 3.90% 2.91%
</TABLE>
[restubbed from table above]
<TABLE>
<CAPTION>
DELAWARE CASH RESERVE C CLASS
-------------------------------------------
PERIOD
11/29/95
YEAR ENDED TO)
3/31/99 3/31/98 3/31/97 3/31/96(2)
<S> <C> <C> <C> <C>
Net asset value, beginning of period ..................... $1.000 $1.000 $1.000 $1.000
Income from investment operations:
Net investment income ................................. 0.035 0.038 0.035 0.012
------ ------ ------ ------
Total from investment operations ...................... 0.035 0.038 0.035 0.012
------ ------ ------ ------
Less dividends:
Dividends from net investment income .................. (0.035) (0.038) (0.035) (0.012)
------ ------ ------ ------
Total dividends ....................................... (0.035) (0.038) (0.035) (0.012)
------ ------ ------ ------
Net asset value, end of period ........................... $1.000 $1.000 $1.000 $1.000
====== ====== ====== ======
Total return(3) .......................................... 3.58% 3.84% 3.58% 1.24%
Ratios and supplemental data:
Net assets, end of period (000 omitted) ............... $11,134 $3,702 $2,799 $304
Ratio of expenses to average net assets ............... 1.90% 1.88% 1.88% 1.95%
Ratio of net investment income to average net assets .. 3.51% 3.78% 3.52% 3.90%
</TABLE>
- ---------------------
(1) Date of initial public offering; ratios and total return have been
annualized.
(2) Date of initial public offering; ratios have been annualized and total
return has not been annualized.
(3) 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>
for money markets 9
FINANCIAL HIGHLIGHTS (CONTINUED)
- --------------------------------------------------------------------------------
Selected data for each share of the Fund outstanding throughout each period were
as follows:
<TABLE>
<CAPTION>
DELAWARE CASH RESERVE CONSULTANT CLASS
---------------------------------------------------------
YEAR ENDED
3/31/99 3/31/98 3/31/97 3/31/96 3/31/95
<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 ................................. 0.043 0.045 0.043 0.047 0.037
------ ------ ------ ------ ------
Total from investment operations ...................... 0.043 0.045 0.043 0.047 0.037
------ ------ ------ ------ ------
Less dividends:
Dividends from net investment income .................. (0.043) (0.045) (0.043) (0.047) (0.037)
------ ------ ------ ------ ------
Total dividends ....................................... (0.043) (0.045) (0.043) (0.047) (0.037)
------ ------ ------ ------ ------
Net asset value, end of year ............................. $1.000 $1.000 $1.000 $1.000 $1.000
====== ====== ====== ====== ======
Total return ............................................. 4.35% 4.62% 4.36% 4.75% 3.75%
Ratios and supplemental data:
Net assets, end of year (000 omitted) ................. $42,732 $40,037 $23,468 $20,344 $18,386
Ratio of expenses to average net assets ............... 1.15% 1.13% 1.13% 1.20% 1.26%
Ratio of net investment income to average net assets .. 4.26% 4.53% 4.27% 4.65% 3.66%
</TABLE>
See accompanying notes
<PAGE>
DELAWARE GROUP CASH RESERVE, INC.
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 1999
- --------------------------------------------------------------------------------
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.
2. INVESTMENT MANAGEMENT AND OTHER TRANSACTIONS WITH AFFILIATES
In accordance with the terms of the Investment Management Agreement, the Fund
pays Delaware Management Company (DMC), the Investment Manager, an annual fee
which is calculated daily at the following rates: 0.50% of the first $500
million of average daily net assets of the Fund, 0.475% on the next $250
million, 0.45% on the next $250 million, 0.425% on the next $250 million, 0.375%
on the next $250 million, 0.325% on the next $250 million, 0.30% on the next
$250 million and 0.275% on the average daily net assets over $2 billion, less
the fees paid to the unaffiliated directors. Effective April 1, 1999, the annual
fee will be calculated at the following rates: 0.45% of the first $500 million
of average daily net assets of the Fund, 0.40% on the next $500 million, 0.35%
on the next
<PAGE>
10 for money markets
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
$1.5 billion and 0.30% on the average daily net assets over $2.5 billion. On
March 31, 1999, the Fund had a liability for investment management fees and
other expenses payable to DMC of $151,746.
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. On March 31,
1999, the Fund had a liability for such fees and other expenses payable to DSC
of $49,096.
Pursuant to the Distribution Agreement, the Fund pays Delaware Distributors,
L.P. (DDLP), the Distributor and an affiliate of DMC, an annual fee not to
exceed 0.25% of the average daily net assets of the Consultant Class and 1.00%
of the average daily net assets of the B and C Classes.
Certain officers of DMC, DSC and DDLP are officers, directors and/or employees
of the Fund. These officers, directors and employees are paid no compensation by
the Fund.
3. CAPITAL STOCK
Transactions in capital stock shares were as follows:
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED
3/31/99 3/31/98
-------------- --------------
<S> <C> <C>
Shares sold:
A Class ................................... 1,978,969,758 3,429,116,792
B Class ................................... 117,999,348 65,522,239
C Class ................................... 155,854,545 46,237,917
Consultant Class .......................... 485,552,242 475,319,290
Shares issued upon reinvestment of
dividends from net investment income:
A Class ................................... 21,171,773 23,567,546
B Class ................................... 412,827 227,339
C Class ................................... 202,957 94,442
Consultant Class .......................... 1,429,128 1,095,988
-------------- --------------
2,761,592,578 4,041,181,553
-------------- --------------
Shares repurchased:
A Class ................................... (1,936,369,808) (3,523,084,265)
B Class ................................... (105,025,829) (72,215,007)
C Class ................................... (148,625,680) (45,429,174)
Consultant Class .......................... (484,286,277) (459,846,745)
-------------- --------------
(2,674,307,594) (4,100,575,191)
-------------- --------------
Net increase (decrease) ...................... 87,284,984 (59,393,638)
============== ==============
</TABLE>
<PAGE>
for money markets 11
DELAWARE GROUP CASH RESERVE, INC.
REPORT OF INDEPENDENT AUDITORS
- --------------------------------------------------------------------------------
TO THE SHAREHOLDERS AND BOARD OF DIRECTORS
DELAWARE GROUP CASH RESERVE, INC.
We have audited the accompanying statement of net assets of Delaware Group Cash
Reserve, Inc. (the "Fund") as of March 31, 1999, and the related statement of
operations for the year then ended, the statements of changes in net assets for
each of the two years in the period then ended, and the financial highlights for
each of the periods indicated therein. These financial statements and financial
highlights are the responsibility of the Fund's management. Our responsibility
is to express an opinion on these financial statements and financial highlights
based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements and financial highlights. Our procedures included confirmation of
securities owned as of March 31, 1999, by correspondence with the custodian and
brokers. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Delaware Group Cash Reserve, Inc. at March 31, 1999, the results of its
operations for the year then ended, the changes in its net assets for each of
the two years in the period then ended, and its financial highlights for the
periods indicated therein, in conformity with generally accepted accounting
principles.
/s/ ERNST & YOUNG LLP
---------------------
Philadelphia, Pennsylvania
May 3, 1999
<PAGE>
12 for money markets
PROXY RESULTS
(UNAUDITED)
- --------------------------------------------------------------------------------
For the fiscal year ended March 31, 1999, Delaware Cash Reserve shareholders
voted on the following proposals at the annual meeting of shareholders on
December 31, 1998. The description of each proposal and number of shares voted
are as follows:
1. TO ELECT THE FUND'S BOARD OF DIRECTORS:
SHARES SHARES VOTED
VOTED WITHHELD
FOR AUTHORITY
--------------------------------------------------
Jeffrey J. Nick 340,362,692 40,647,489
Walter P. Babich 340,665,273 40,344,908
John H. Durham 341,255,610 39,754,571
Anthony D. Knerr 340,845,784 40,164,397
Ann R. Leven 341,205,929 39,804,252
Thomas F. Madison 341,501,652 39,508,529
Charles E. Peck 341,324,922 39,685,259
Wayne A. Stork 341,002,399 40,007,782
Jan L. Yeomans 341,607,318 39,402,863
2. TO APPROVE THE RECLASSIFICATION OF THE FUND'S INVESTMENT OBJECTIVE FROM
FUNDAMENTAL TO NON-FUNDAMENTAL.
SHARES SHARES SHARES
VOTED VOTED VOTED
FOR AGAINST ABSTAIN
---------------------------------------
311,238,385 26,810,433 28,694,375
3. TO APPROVE STANDARDIZED FUNDAMENTAL INVESTMENT RESTRICTIONS FOR THE FUND
(PROPOSAL INVOLVES SEPARATE VOTES ON SEVEN SUB-PROPOSALS 3A-3G).
3A. TO ADOPT A NEW FUNDAMENTAL INVESTMENT RESTRICTION CONCERNING CONCENTRATION
OF THE FUND'S INVESTMENTS IN THE SAME INDUSTRY.
SHARES SHARES SHARES
VOTED VOTED VOTED
FOR AGAINST ABSTAIN
---------------------------------------
319,384,391 18,384,391 28,520,553
3B. TO ADOPT A NEW FUNDAMENTAL INVESTMENT RESTRICTION CONCERNING BORROWING MONEY
AND ISSUING SENIOR SECURITIES.
SHARES SHARES SHARES
VOTED VOTED VOTED
FOR AGAINST ABSTAIN
---------------------------------------
317,856,205 20,197,744 28,689,244
3C. TO ADOPT A NEW FUNDAMENTAL INVESTMENT RESTRICTION CONCERNING UNDERWRITING.
SHARES SHARES SHARES
VOTED VOTED VOTED
FOR AGAINST ABSTAIN
---------------------------------------
319,204,576 17,948,575 29,590,043
<PAGE>
3D. TO ADOPT A NEW FUNDAMENTAL INVESTMENT RESTRICTION CONCERNING INVESTMENTS IN
REAL ESTATE.
SHARES SHARES SHARES
VOTED VOTED VOTED
FOR AGAINST ABSTAIN
---------------------------------------
318,394,565 19,735,462 28,613,166
3E. TO ADOPT A NEW FUNDAMENTAL INVESTMENT RESTRICTION CONCERNING INVESTMENTS IN
COMMODITIES.
SHARES SHARES SHARES
VOTED VOTED VOTED
FOR AGAINST ABSTAIN
---------------------------------------
315,932,460 21,452,936 29,357,797
3F. TO ADOPT A NEW FUNDAMENTAL INVESTMENT RESTRICTION CONCERNING LENDING BY THE
FUND.
SHARES SHARES SHARES
VOTED VOTED VOTED
FOR AGAINST ABSTAIN
---------------------------------------
317,547,772 20,411,089 28,784,332
3G. TO RECLASSIFY ALL CURRENT FUNDAMENTAL INVESTMENT RESTRICTIONS AS
NON-FUNDAMENTAL.
SHARES SHARES SHARES
VOTED VOTED VOTED
FOR AGAINST ABSTAIN
---------------------------------------
312,330,833 23,583,685 30,828,675
4. TO APPROVE A NEW INVESTMENT MANAGEMENT AGREEMENT WITH DELAWARE MANAGEMENT
COMPANY FOR THE FUND.
SHARES SHARES SHARES
VOTED VOTED VOTED
FOR AGAINST ABSTAIN
---------------------------------------
316,978,651 21,637,290 28,127,252
5. TO RATIFY THE SELECTION OF ERNST & YOUNG LLP, AS THE INDEPENDENT AUDITORS
FOR THE COMPANY.
SHARES SHARES SHARES
VOTED VOTED VOTED
FOR AGAINST ABSTAIN
---------------------------------------
347,043,221 5,470,311 28,496,648
6. TO APPROVE THE RESTRUCTURING OF THE COMPANY FROM ITS CURRENT FORM OF
ORGANIZATION INTO A DELAWARE BUSINESS TRUST.
SHARES SHARES SHARES
VOTED VOTED VOTED
FOR AGAINST ABSTAIN
---------------------------------------
321,946,381 17,348,517 27,448,295
<PAGE>
THIS ANNUAL REPORT IS FOR THE INFORMATION OF DELAWARE CASH RESERVE SHAREHOLDERS,
BUT IT may be used with prospective investors when preceded or accompanied by a
current Prospectus for Delaware Cash Reserve, which sets forth details about
charges, expenses, investment objectives and operating policies of the Fund. You
should read the prospectus carefully before you invest or send money. The
figures in this report represent past results which are not a guarantee of
future results. The return and principal value of an investment in the Fund will
fluctuate so that shares, when redeemed, may be worth more or less than their
original cost.
BOARD OF DIRECTORS
WALTER P. BABICH
Board Chairman, Citadel Constructors, Inc.
King of Prussia, PA
JOHN H. DURHAM
Partner, Complete Care Services
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
Secretary/Treasurer, Enterprise Homes, Inc.
Fredericksburg, VA
WAYNE A. STORK
Chairman
Delaware Management Holdings, Inc.
Philadelphia, PA
JAN L. YEOMANS
Vice President and Treasurer
3M Corporation
St. Paul, Minnesota
AFFILIATED OFFICERS
DAVID K. DOWNES
Executive Vice President, Chief Financial Officer
and Chief Operating Officer
Delaware Investments Family of Funds
Philadelphia, PA
GEORGE M. CHAMBERLAIN, JR.
Senior Vice President, Secretary
and General Counsel
Delaware Investments Family of Funds
Philadelphia, PA
BRUCE D. BARTON
President and Chief Executive Officer
Delaware Distributors, L.P.
Philadelphia, PA
[Photo of Globes]
directors
& officers
- --------------------------------------------------------------------------------
<PAGE>
INVESTMENT MANAGER
Delaware Management Company
Philadelphia, Pennsylvania
INTERNATIONAL AFFILIATE
Delaware International Advisers Ltd.
London, England
NATIONAL DISTRIBUTOR
Delaware Distributors, L.P.
Philadelphia, Pennsylvania
SHAREHOLDER SERVICING,
DIVIDEND DISBURSING
AND TRANSFER AGENT
Delaware Service Company, Inc.
Philadelphia, Pennsylvania
1818 Market Street
Philadelphia, PA 19103-3682
<PAGE>
WHEN USED WITH PROSPECTIVE INVESTORS, THIS REPORT MUST BE PRECEDED OR
ACCOMPANIED BY A CURRENT PROSPECTUS FOR DELAWARE CASH RESERVE, AND THE DELAWARE
INVESTMENTS PERFORMANCE UPDATE FOR THE MOST RECENTLY COMPLETED CALENDAR QUARTER.
FOR A PROSPECTUS OF ANY OTHER MUTUAL FUND FROM DELAWARE INVESTMENTS, CONTACT
YOUR FINANCIAL ADVISER OR DELAWARE INVESTMENTS.
[Photo of Globes]
FOR SHAREHOLDERS
1.800.523.1918
FOR SECURITIES DEALERS
1.800.362.7500
FOR FINANCIAL INSTITUTIONS
Representatives Only
1.800.659.2265
www.delawareinvestments.com
MONEY MARKET FUNDS STRIVE TO MAINTAIN A NET ASSET VALUE OF $1 A SHARE. HOWEVER,
THERE IS NO GUARANTEE THIS GOAL WILL BE MET. YIELDS FLUCTUATE WITH MARKET
CONDITIONS. THE FUND IS NEITHER INSURED NOR GUARANTEED BY THE U.S. GOVERNMENT.
Be sure to consult your financial adviser when making investments. Mutual funds
can be a valuable part of your financial plan; however, shares of the Funds are
not FDIC or NCUSIF insured, are not guaranteed by any bank or any credit union,
and involve investment risk, including the possible loss of the principal amount
invested. Shares of the Funds are not bank or credit union deposits.
(C) Delaware Distributors, L.P.
Printed in the USA
on recycled paper
(1736)
AR-008[3/99]PPL 5/99
DELAWARE(SM)
INVESTMENTS
- ------------------------
PHILADELPHIA o LONDON
