<PAGE>
DELAWARE(SM)
INVESTMENTS
-----------
Delaware Cash Reserve
Money Market
[MONEY MARKET ARTWORK]
2001 SEMI-ANNUAL REPORT
<PAGE>
A TRADITION OF SOUND INVESTING SINCE 1929
-----------------------------------------
TABLE OF CONTENTS
-----------------
LETTER TO SHAREHOLDERS 1
PORTFOLIO MANAGEMENT
REVIEW 3
PERFORMANCE SUMMARY 5
FINANCIAL STATEMENTS
Statement of Net Assets 6
Statement of Operations 8
Statements of Changes in
Net Assets 9
Financial Highlights 10
Notes to Financial Statements 12
A Commitment To Our Investors
Experienced
[ ] Our seasoned investment professionals average more than 11 years'
experience.
[ ] We began managing investments in 1929 and opened our first mutual fund in
1938. Over the past 70 years, we have weathered a full range of economic and
market environments.
Disciplined
[ ] We follow strict investment policies and clear buy/sell guidelines.
[ ] We strive to balance risk and reward in order to provide sound investment
alternatives within any given asset class.
Consistent
[ ] We clearly articulate our investment policies and follow them consistently.
[ ] Our commitment to consistency has earned us the confidence of discriminating
institutional and individual investors to manage more than $44 billion in
assets as of September 30, 2000.
Comprehensive
[ ] We offer more than 70 mutual funds in these asset classes.
o Large-cap equity o High-yield bonds
o Mid-cap equity o Investment grade bonds
o Small-cap equity o Municipal bonds (23 single-state funds)
o International equity o International fixed-income
o Balanced
[ ] Our funds are available through financial advisers who can offer you
individualized attention and valuable investment advice.
Funds are not FDIC insured and are not guaranteed. It is possible to lose the
principal amount invested.
(C)Delaware Distributors, L.P.
<PAGE>
Dear Shareholder
"WE BELIEVE MONEY
MARKET FUNDS OFFER
INVESTORS LESS RISK
OF LOSING PRINCIPAL
COMPARED TO EQUITY
INVESTMENTS, ESPECIALLY
DURING PERIODS OF
MARKET VOLATILITY."
November 6, 2000
Recap of Events - Throughout most of the Fund's six-month period ended September
30, 2000, rising interest rates and inflation worries contributed to extreme
volatility in the U.S. stock markets. Money market funds, however, generally
benefited from the turbulent market conditions, as many investors, concerned
with market volatility, began seeking a higher degree of safety and liquidity of
their principal.
Turmoil first struck the markets in mid-April and May 2000 as investors began
to question some companies' sky-high valuations, especially those companies
without any posted earnings or prospect of earnings in the near future. The
Federal Reserve Board, meanwhile, continued its effort to slow down the U.S.
economy by increasing interest rates, with the last rate hike coming on May
16th.
During periods of market uncertainty, investors, looking to protect their
principal, often seek higher-quality, less volatile investments, such as money
market funds. During the past six months, money market funds began capturing
higher yields compared to U.S. government bonds, which also can draw the
attention of investors for similar reasons. As of September 30, 2000, 30-year
U.S. Treasuries were yielding 5.88%* (Source: Bloomberg), while according to
Lipper Inc., the average money market fund had a 7-day SEC yield of 5.93% for
the same period. Delaware Cash Reserve's performance matched that of its peers,
posting a 7-day yield of 5.93% on September 30, 2000. Unlike longer-term bond
funds, money market funds strive to keep their net asset values at $1 per share.
We believe money market funds offer investors less risk of losing principal
compared to equity investments, especially during periods of market volatility.
Total Return
For The Period Ended September 30, 2000 Six Months
---------------------------------------------------------------------------
Delaware Cash Reserve Class A Shares +2.92%
---------------------------------------------------------------------------
U.S. Consumer Price Index +1.46%
Lipper Money Market Funds Average (371 funds) +2.86%
---------------------------------------------------------------------------
All performance shown above assumes reinvestment of dividends. Performance
information for all Fund classes can be found on page 5. The U.S. Consumer Price
Index is calculated by the U.S. Department of Labor and represents the change in
the price of goods and services for all urban consumers. The Lipper category
represents the average returns of money market funds with similar investment
objectives tracked by Lipper (Source: Lipper Inc.) you cannot invest directly in
an index. Past performance is not a guarantee of future results.
*Unlike money market funds, U.S. Treasuries are guaranteed as to the payment of
principal and interest by the U.S. government.
1
<PAGE>
Delaware Cash Reserve reacted positively to the Fed's series of interest rate
increases and delivered a total return of +2.92% (Class A shares with dividends
reinvested) for the six-month period ended September 30, 2000. The Fund
outperformed its peer group, measured by the Lipper Money Market Funds Average,
which posted a +2.86% return for the same period. The Fund continues to invest
strictly in high quality money market securities while striving to maximize
income, preserve principal and maintain liquidity.
Market Outlook - While there is evidence that the economy may be slowing to what
is expected to be a more sustainable rate of growth, the Fed won't say it is
satisfied with its tightening efforts to thwart inflation. However, since the
Fed left rates untouched at its last three meetings, we believe we have seen the
end of interest rate increases at least for this year. In this environment, we
believe that money market funds, such as Delaware Cash Reserve, will remain an
attractive short-term investment for investors seeking liquidity or stability of
their investment.
On the pages that follow, Delaware Cash Reserve Fund manager, Cynthia Isom,
discusses your Fund's performance over the past six months and provides her
outlook for the money markets.
As always, we thank you for remaining committed to Delaware Investments.
Sincerely,
/s/ Wane A. Stork /s/ David K. Downes
------------------------ -------------------------
Wayne A. Stork David K. Downes
Chairman, President and Chief Executive Officer,
Delaware Investments Family of Funds Delaware Investments Family of Funds
[Money Market Artwork]
2
<PAGE>
PORTFOLIO MANAGEMENT REVIEW
---------------------------
Cynthia I. Isom
Portfolio Manager
November 6, 2000
"WE BELIEVE THAT
INVESTORS SEEKING
TO KEEP A PORTION OF
THEIR ASSETS LIQUID,
WILL BE WELL-SERVED
INVESTING IN A MONEY
MARKET FUND."
The Fund's Results
When fixed-income securities and equity investments experience greater
volatility, as they have during the past six months, investors often expect
their money market funds to provide a reliable cushion of stability. We believe
Delaware Cash Reserve is a potential safe harbor during times of market
turbulence as your Fund is managed to minimize risk to principal while providing
a regular stream of income.
Over the six-month period ended September 30, 2000, money markets benefited from
the extraordinary volatility in the stock market and from the Federal Reserve
Board's more restrictive monetary policy. Erratic equity markets and higher
interest rates helped to increase yields on money market funds, making them more
attractive to investors. As of September 30, 2000, Delaware Cash Reserve's 7-day
yield was 5.93%, up from 5.34% on March 31, 2000.
We believe that investors seeking to keep a portion of their assets liquid, will
be well-served investing in a money market fund.
Portfolio Highlights
In order to remain consistent with the Fund's investment objective, we continued
to invest strictly in money market instruments with the highest credit ratings.
In our opinion, your Fund has benefited from this strategy as Delaware Cash
Reserve, in June 2000, ranked in the top quartile for Gross Return money funds
for the second consecutive quarter (Source: iMoneyNet, Inc.).
While the Securities and Exchange Commission (SEC) permits money market funds to
have a maturity as long as 90 days, during the period, we believed it was
prudent to stay a bit shorter. As interest rates rose in 1999, we steadily
reduced the Fund's maturity to capture higher yields. In August 2000, however,
we began increasing the Fund's average maturity, as we felt confident that the
Fed was finished raising interest rates for the near term. We increased the
average maturity from a 44-day range at mid-year to approximately 63 days as of
September 30, 2000. We see maturity staying within this range and only plan to
shorten it when we see a significant yield advantage in doing so.
Most of the Fund's net assets are invested in commercial paper. As of
September 30, 2000, commercial paper comprised 72% of the portfolio. Commercial
paper is a short-term debt obligation issued by corporations and banks. At
present, we believe it is prudent to hold most of the Fund's assets in high
quality money market instruments because they offer a relatively safe and highly
liquid investment.
3
<PAGE>
"WE ARE OPTIMISTIC THAT
THE NEXT SIX MONTHS
WILL CONTINUE TO
PROVIDE A FAVORABLE
ENVIRONMENT FOR THE
MONEY MARKETS."
Outlook
We are optimistic that the next six months will continue to provide a favorable
environment for the money markets. We believe we will continue to see evidence
of a slowing economy and do not anticipate further interest rate hikes this
year. We intend to keep a watchful eye on changes in consumer and producer
prices to gauge the potential effect on the markets and the Fed's interest rate
policy. In our opinion, your Fund is well positioned in the current environment.
Potential Benefits of Delaware Cash Reserve
Delaware Cash Reserve is a money market mutual fund that invests in short-term
obligations from creditworthy corporations and/or from state governments or the
federal government. The Fund offers several potentially compelling advantages:
o Relative safety - Your investment is managed to preserve principal, which can
be especially beneficial during volatile markets (although it is always
possible to lose principal, even in a money market fund);
o Checkwriting privileges - You have the ability to write checks against
your account;*
o Current income - The Fund seeks stability of your principal and also a yield
above the inflation rate;
o Convenient access to other funds in the Delaware Investments Family of Funds -
Investing in other Delaware Investments mutual funds can be as easy as making
a toll-free call.**
Whether you wish to preserve capital for a specific financial goal or balance
the risks of stock funds and bond funds in a long-term portfolio, you may be
well-served by Delaware Cash Reserve money market fund. Investors should be
aware that money market funds are not FDIC insured or bank guaranteed. 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.
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 your portfolio from the long-term impact of inflation. Find out how
we can help shape your future today.
*For investors of Class A shares only.
**When exchanging money from Delaware Cash Reserve to another fund, you may
incur a sales charge.
For a prospectus for any Delaware Investments mutual fund,
contact your financial adviser or call Delaware Investments at 1.800.523.1918.
The prospectus contains complete information, including fees and expenses.
Please read it carefully before you invest. The Fund's exchange offer is subject
to termination and its terms are subject to change.
[MONEY MARKET ARTWORK]
4
<PAGE>
FUND BASICS
-----------
Fund Objectives
The Fund seeks to maximize current
income while preserving principal
and maintaining liquidity.
Total Fund Assets
As of September 30, 2000
$604.48 million
Number of Holdings
57
Fund Start Date
June 30, 1978
Your Fund Manager
Cynthia Isom holds a bachelor's
degree from Vassar College. After
eight years in the securities
business, she joined Delaware
Investments in 1985 as a trader of
money market, high-grade, and
Treasury securities.
Nasdaq Symbol
Class A DCRXX
CUSIP Numbers
Consultant Class 245910-20-3
Class B 245910-30-2
Class C 245910-40-1
DELAWARE CASH RESERVE PERFORMANCE
---------------------------------
<TABLE>
<CAPTION>
Average Annual Total Returns
Through September 30, 2000 7-Day Yield
Lifetime 10 Years Five Years One Year September 30, 2000
-----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Class A (Est. 6/30/78) +7.35% +4.46% +4.83% +5.51% +5.93%
-----------------------------------------------------------------------------------------------------
Consultant Class (Est. 3/10/88) +7.18% +4.20% +4.57% +5.25% +5.71%
-----------------------------------------------------------------------------------------------------
Class B (Est. 5/2/94)
Excluding Sales Charge +3.72% +3.79% +4.47% +4.97%
Including Sales Charge +3.72% +3.45% -0.53%
-----------------------------------------------------------------------------------------------------
Class C (Est. 11/29/95)
Excluding Sales Charge +3.79% +4.47% +4.97%
Including Sales Charge +3.79% +3.47%
-----------------------------------------------------------------------------------------------------
</TABLE>
All performance reflects reinvestment of dividends. An investment in Delaware
Cash Reserve is not insured or guaranteed by the Federal Deposit Insurance
Corporation or any other government agency. Although the Fund seeks to preserve
the value of your investment at $1.00 per share, it is possible to lose money by
investing in Delaware Cash Reserve. Returns and yields will fluctuate. Past
performance is not a guarantee of future results.
Class A shares are available without sales charges or any 12b-1 fee.
Consultant Class shares are available without a sales charge. 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 also subject to a contingent
deferred sales charge of up to 5% if redeemed before the end of the sixth year.
Class C shares have a 1% annual distribution and service fee. If redeemed within
12 months, a 1% contingent deferred sales charge applies.
Delaware Cash Reserve Class B and Class C shares are available only as part of
an overall investment program using Class B or Class C shares of other funds.
Direct investment into Delaware Cash Reserve Class B or Class C shares may be
made only when establishing a Wealth Builder plan. Performance, excluding sales
charges, for Class B and Class C shares, assumes either that contingent deferred
sales charges did not apply or the investment was not redeemed.
5
<PAGE>
Statement of Net Assets
DELAWARE CASH RESERVE
---------------------
Principal Market
September 30, 2000 (Unaudited) Amount Value
-----------------------------------------------------------------------------
Commercial Paper - 71.89%
Financial Services - 28.22%
Allianz of America
6.50% 11/8/00 .............................. $11,000,000 $ 10,924,528
6.55% 10/6/00 .............................. 10,000,000 9,990,903
Fleet Funding 6.48% 12/8/00 .................. 5,000,000 4,938,800
General Electric Capital 6.47% 3/8/01 ........ 10,000,000 9,716,039
Home Depot Real Estate
6.78% 11/6/00 .............................. 10,000,000 9,932,200
6.78% 11/21/00 ............................. 18,206,000 18,034,270
ING America Insurance Holding
6.53% 10/11/00 ............................. 20,000,000 19,963,750
Marsh USA 6.66% 12/4/00 ...................... 10,000,000 9,881,600
Motorola Credit 6.46% 11/29/00 ............... 7,000,000 6,925,889
Standard Life Funding
6.50% 12/15/00 ............................. 8,000,000 7,891,667
6.60% 1/9/01 ............................... 10,000,000 9,816,667
6.66% 12/6/00 .............................. 10,000,000 9,877,900
Swiss Re Financial Products
6.48% 12/5/00 .............................. 5,000,000 4,941,500
6.48% 12/7/00 .............................. 8,000,000 7,903,520
USAA Capital Corporation
6.46% 11/13/00 ............................. 10,000,000 9,922,839
WestPac Trust
6.00% 10/13/00 ............................. 10,000,000 9,980,000
6.04% 10/23/00 ............................. 10,000,000 9,963,089
------------
170,605,161
------------
Industrial - 18.58%
AT&T Corporation 6.48% 2/23/01 ............... 6,300,000 6,135,570
Fleet Funding 6.50% 10/10/00 ................. 10,924,000 10,906,249
Gannett
6.47% 11/7/00 .............................. 10,000,000 9,933,503
6.50% 11/21/00 ............................. 10,000,000 9,907,917
Henkel Corporation
6.47% 11/13/00 ............................. 10,000,000 9,922,719
6.49% 12/14/00 ............................. 5,464,000 5,391,107
Hubbell 6.70% 10/2/00 ........................ 25,200,000 25,195,310
Koch Industries 6.70% 10/2/00 ................ 25,000,000 24,995,347
Motorola 6.52% 11/8/00 ....................... 10,000,000 9,931,178
------------
112,318,900
------------
<PAGE>
Principal Market
Amount Value
-----------------------------------------------------------------------------
Commercial Paper (continued)
Mortgage Bankers & Brokers - 25.09%
Bank of America
6.55% 2/27/01 .............................. $10,000,000 $ 9,728,903
6.66% 12/12/00 ............................. 10,000,000 9,866,800
Bear Stearns
6.48% 12/14/00 ............................. 10,000,000 9,866,800
6.625% 10/26/00 ............................ 8,000,000 7,963,194
Credit Suisse First Boston
6.47% 3/7/01 ............................... 10,000,000 9,717,836
6.51% 1/26/01 .............................. 10,000,000 9,788,425
Den Danske 6.49% 11/13/00 .................... 10,000,000 9,922,481
Goldman Sachs Group
6.46% 2/16/01 .............................. 10,000,000 9,752,367
6.53% 11/15/00 ............................. 8,000,000 7,934,700
6.66% 11/6/00 .............................. 10,000,000 9,933,400
Merrill Lynch
6.52% 10/16/00 ............................. 10,000,000 9,972,833
6.60% 2/1/01 ............................... 8,000,000 7,819,600
Morgan Stanley Dean Witter
6.51% 2/14/01 .............................. 10,000,000 9,754,067
6.54% 12/12/00 ............................. 10,000,000 9,869,200
Societe Generale North America
6.49% 2/5/01 ............................... 10,000,000 9,771,047
Swiss Re Financial Products
6.53% 10/10/00 ............................. 10,000,000 9,983,675
-----------
151,645,328
-----------
Total Commercial Paper 434,569,389
-----------
Certificates of Deposit - 11.26%
American Express Centurion
6.54% 10/6/00 .............................. 10,000,000 10,000,000
6.54% 10/18/00 ............................. 10,000,000 10,000,000
Bank of New York 7.22% 5/9/01 ................ 3,000,000 2,999,829
Bank One
6.90% 8/6/01 ............................... 10,000,000 10,000,000
6.99% 11/22/00 ............................. 10,000,000 10,000,000
Wilmington Trust
6.35% 10/11/00 ............................. 10,000,000 10,000,000
6.62% 12/27/00 ............................. 5,000,000 5,000,130
6.68% 1/21/01 .............................. 10,000,000 10,000,000
-----------
Total Certificates of Deposit ................ 67,999,959
===========
6
<PAGE>
Statement of Net Assets (continued)
Principal Market
Delaware Cash Reserve Amount Value
-----------------------------------------------------------------------------
Short-Term Time Deposits - 6.49%
Branch Banking & Trust 6.688% 10/2/00 ............ $19,259,000 $ 19,259,000
Suntrust Bank 6.719% 10/2/00 ..................... 20,000,000 20,000,000
------------
Total Short-Term Time Deposits ................... 39,259,000
------------
*Floating Rate Notes - 4.96%
AT&T Corporation 6.66% 7/19/01 ................... 10,000,000 10,000,000
Bank of America 6.65% 4/27/01 .................... 10,000,000 10,000,000
Emerson Electric 6.57% 6/6/01 .................... 10,000,000 10,000,000
------------
Total Floating Rate Notes ........................ 30,000,000
------------
Yankee CDs - 3.31%
Commerzbank 6.65% 3/27/01 ........................ 10,000,000 10,000,476
Deutsche Bank 6.89% 8/20/01 ...................... 10,000,000 9,997,143
------------
Total Yankee CDs ................................. 19,997,619
------------
Total Market Value of Securities - 97.91%
(cost $591,825,967)** .......................... 591,825,967
Receivables and Other Assets
Net of Liabilities - 2.09% ..................... 12,655,000
------------
Net Assets Applicable to 604,473,534
Shares Outstanding - 100.00% ................... $604,480,967
============
Net Asset Value - Delaware Cash Reserve
A Class ($548,737,472 / 548,727,715 Shares) .... $1.00
-----
Net Asset Value - Delaware Cash Reserve
B Class ($17,733,494 / 17,731,288 Shares) ...... $1.00
-----
Net Asset Value - Delaware Cash Reserve
C Class ($6,045,773 / 6,052,069 Shares) ........ $1.00
-----
Net Asset Value - Delaware Cash Reserve
Consultant Class
($31,964,228 / 31,962,462 Shares) .............. $1.00
-----
----------------------
*Floating Rate Notes - The interest rate shown is the rate as of September 30,
2000 and the maturity date shown is the longer of the next interest
readjustment date or the date the principal amount shown can be recovered
through demand.
**Also the cost for federal income tax purposes.
See accompanying notes
7
<PAGE>
Statement of Operations
Six Months Ended September 30, 2000 (Unaudited) Delaware Cash Reserve
--------------------------------------------------------------------------------
Investment Income:
Interest ................................................. $19,836,937
Expenses:
Management fees ..........................................$1,320,484
Dividend disbursing and transfer agent fees and expenses . 943,800
Distribution expense ..................................... 174,692
Accounting and administration ............................ 107,855
Reports and statements to shareholders ................... 132,000
Registration fees ........................................ 80,000
Custodian fees ........................................... 33,480
Professional fees ........................................ 6,000
Trustees' fees ........................................... 3,000
Other .................................................... 11,663
----------
2,812,974
Less expenses paid indirectly ............................ (17,354)
-----------
Total expenses ........................................... 2,795,620
-----------
Net Investment Income .................................... 17,041,317
-----------
Net Increase in Net Assets Resulting from Operations ..... $17,041,317
===========
See accompanying notes
8
<PAGE>
Statements of Changes in Net Assets
Delaware Cash Reserve
--------------------------------------------------------------------------------
Six Months
Ended Year Ended
9/30/00 3/31/00
(Unaudited)
Increase in Net Assets from Operations:
Net investment income ............................. $ 17,041,317 $ 29,434,162
---------------------------
Dividends to Shareholders from:
Net investment income:
A Class ........................................ (15,503,900) (26,634,022)
B Class ........................................ (453,764) (912,198)
C Class ........................................ (181,993) (351,304)
Consultant Class ............................... (901,660) (1,536,638)
---------------------------
(17,041,317) (29,434,162)
---------------------------
Capital Share Transactions:
Proceeds from shares sold:
A Class ........................................ 491,382,414 1,671,713,220
B Class ........................................ 23,955,737 76,974,959
C Class ........................................ 30,256,942 114,902,183
Consultant Class ............................... 32,205,560 110,646,645
Net asset value of shares issued upon reinvestment
of dividends from net investment income:
A Class ........................................ 14,741,292 24,643,299
B Class ........................................ 365,625 753,577
C Class ........................................ 140,955 303,226
Consultant Class ............................... 858,660 1,430,281
---------------------------
593,907,185 2,001,367,390
---------------------------
Cost of shares repurchased:
A Class ........................................ (523,581,247)(1,718,412,277)
B Class ........................................ (29,937,806) (74,287,569)
C Class ........................................ (32,110,141) (118,578,432)
Consultant Class ............................... (33,748,347) (122,160,648)
---------------------------
(619,377,541)(2,033,438,926)
---------------------------
Decrease in net assets derived from capital share
transactions ...................................... (25,470,356) (32,071,536)
---------------------------
Net Decrease in Net Assets ........................ (25,470,356) (32,071,536)
---------------------------
Net Assets:
Beginning of period ............................... 629,951,323 662,022,859
---------------------------
End of period ..................................... $604,480,967 $ 629,951,323
===========================
See accompanying notes
9
<PAGE>
Financial Highlights
<TABLE>
<CAPTION>
Selected data for each share of the Fund outstanding
throughout each period were as follows: Delaware Cash Reserve A Class
------------------------------------------------------------------------------------------------------------------------------------
Six Months
Ended Year Ended
9/30/00(2) 3/31/00 3/31/99 3/31/98 3/31/97 3/31/96
(Unaudited)
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period ....................... $1.000 $1.000 $1.000 $1.000 $1.000 $1.000
Income from investment operations:
Net investment income .................................... 0.029 0.046 0.045 0.048 0.045 0.049
----------------------------------------------------------------------
Total from investment operations ......................... 0.029 0.046 0.045 0.048 0.045 0.049
----------------------------------------------------------------------
Less dividends:
Dividends from net investment income ..................... (0.029) (0.046) (0.045) (0.048) (0.045) (0.049)
----------------------------------------------------------------------
Total dividends .......................................... (0.029) (0.046) (0.045) (0.048) (0.045) (0.049)
----------------------------------------------------------------------
Net asset value, end of period ............................. $1.000 $1.000 $1.000 $1.000 $1.000 $1.000
======================================================================
Total return(1) ............................................ 2.92% 4.69% 4.61% 4.88% 4.61% 5.01%
Ratios and supplemental data:
Net assets, end of period (000 omitted) .................. $548,737 $566,193 $588,249 $524,477 $594,877 $585,485
Ratio of expenses to average net assets .................. 0.88% 0.91% 0.90% 0.88% 0.88% 0.95%
Ratio of net investment income to average net assets ..... 5.76% 4.59% 4.51% 4.78% 4.52% 4.90%
Delaware Cash Reserve B Class
------------------------------------------------------------------------------------------------------------------------------------
Six Months
Ended Year Ended
9/30/00(2) 3/31/00 3/31/99 3/31/98 3/31/97 3/31/96
(Unaudited)
Net asset value, beginning of period $1.000 $1.000 $1.000 $1.000 $1.000 $1.000
Income from investment operations:
Net investment income .................................... 0.024 0.036 0.035 0.038 0.035 0.039
----------------------------------------------------------------------
Total from investment operations ......................... 0.024 0.036 0.035 0.038 0.035 0.039
----------------------------------------------------------------------
Less dividends:
Dividends from net investment income ..................... (0.024) (0.036) (0.035) (0.038) (0.035) (0.039)
----------------------------------------------------------------------
Total dividends .......................................... (0.024) (0.036) (0.035) (0.038) (0.035) (0.039)
----------------------------------------------------------------------
Net asset value, end of period ............................. $1.000 $1.000 $1.000 $1.000 $1.000 $1.000
----------------------------------------------------------------------
Total return(1) ............................................ 2.41% 3.65% 3.57% 3.84% 3.58% 3.97%
Ratios and supplemental data:
Net assets, end of period (000 omitted) .................. $17,733 $23,349 $19,908 $6,522 $12,988 $8,127
Ratio of expenses to average net assets .................. 1.88% 1.91% 1.90% 1.88% 1.88% 1.95%
Ratio of net investment income to average net assets ..... 4.76% 3.59% 3.51% 3.78% 3.52% 3.90%
</TABLE>
----------------------
(1) 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, for Class B, does not reflect the impact of a sales
charge.
(2) Ratios have been annualized and total return has not been annualized.
See accompanying notes
10
<PAGE>
Financial Highlights (continued)
<TABLE>
<CAPTION>
Selected data for each share of the Fund outstanding
throughout each period were as follows: Delaware Cash Reserve C Class
------------------------------------------------------------------------------------------------------------------------------------
Six Months Period
Ended Year Ended 11/29/95 to
9/30/00(3) 3/31/00 3/31/99 3/31/98 3/31/97 3/31/96(1)
(Unaudited)
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period ....................... $1.000 $1.000 $1.000 $1.000 $1.000 $1.000
Income from investment operations:
Net investment income .................................... 0.024 0.036 0.035 0.038 0.035 0.012
----------------------------------------------------------------------
Total from investment operations ......................... 0.024 0.036 0.035 0.038 0.035 0.012
----------------------------------------------------------------------
Less dividends:
Dividends from net investment income ..................... (0.024) (0.036) (0.035) (0.038) (0.035) (0.012)
----------------------------------------------------------------------
Total dividends .......................................... (0.024) (0.036) (0.035) (0.038) (0.035) (0.012)
----------------------------------------------------------------------
Net asset value, end of period ............................. $1.000 $1.000 $1.000 $1.000 $1.000 $1.000
======================================================================
Total return(2) ............................................ 2.41% 3.65% 3.58% 3.84% 3.58% 1.24%
Ratios and supplemental data:
Net assets, end of period (000 omitted) .................. $6,046 $7,760 $11,134 $3,702 $2,799 $304
Ratio of expenses to average net assets .................. 1.88% 1.91% 1.90% 1.88% 1.88% 1.95%
Ratio of net investment income to average net assets ..... 4.76% 3.59% 3.51% 3.78% 3.52% 3.90%
Delaware Cash Reserve Consultant Class
------------------------------------------------------------------------------------------------------------------------------------
Six Months
Ended Year Ended
9/30/00(3) 3/31/00 3/31/99 3/31/98 3/31/97 3/31/96
(Unaudited)
Net asset value, beginning of period ....................... $1.000 $1.000 $1.000 $1.000 $1.000 $1.000
Income from investment operations:
Net investment income .................................... 0.028 0.043 0.043 0.045 0.043 0.047
----------------------------------------------------------------------
Total from investment operations ......................... 0.028 0.043 0.043 0.045 0.043 0.047
----------------------------------------------------------------------
Less dividends:
Dividends from net investment income ..................... (0.028) (0.043) (0.043) (0.045) (0.043) (0.047)
----------------------------------------------------------------------
Total dividends .......................................... (0.028) (0.043) (0.043) (0.045) (0.043) (0.047)
----------------------------------------------------------------------
Net asset value, end of period ............................. $1.000 $1.000 $1.000 $1.000 $1.000 $1.000
======================================================================
Total return(2) ............................................ 2.79% 4.43% 4.35% 4.62% 4.36% 4.75%
Ratios and supplemental data:
Net assets, end of period (000 omitted) .................. $31,964 $32,648 $42,732 $40,037 $23,468 $20,344
Ratio of expenses to average net assets .................. 1.13% 1.16% 1.15% 1.13% 1.13% 1.20%
Ratio of net investment income to average net assets ..... 5.51% 4.34% 4.26% 4.53% 4.27% 4.65%
</TABLE>
----------------------
(1) Date of initial public offering; ratios have been annualized and total
return has not been annualized.
(2) 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, for Class C, does not reflect the impact of a sales
charge.
(3) Ratios have been annualized and total return has not been annualized.
See accompanying notes
11
<PAGE>
Notes to Financial Statements
September 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
Delaware Cash Reserve (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 Delaware business trust and offers four classes of
shares. The Delaware Cash Reserve A Class and the Delaware Cash Reserve
Consultant Class have no sales charge. The Delaware Cash Reserve B Class carries
a back-end deferred sales charge and the Delaware 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 accounting principles
generally accepted in the United States 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
accounting principles generally accepted in the United States 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 Investment 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). Costs used in calculating realized gains and losses on the
sale of investment securities are those of the specific securities sold.
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.
<PAGE>
Certain expenses of the Fund are paid through commission arrangements with
brokers. These transactions are done subject to best execution. The amount of
these expenses was approximately $6,874 for the period ended September 30, 2000.
In addition, the Fund receives earnings credits from its custodian when positive
cash balances are maintained, which are used to offset custody fees. These
credits were $10,480 for the period ended September 30, 2000. The expenses paid
under the above arrangements are included in their respective expense captions
on the Statement of Operations with the corresponding expense offset shown as
"expenses paid indirectly".
2. Investment Management and Other Transactions with Affiliates
In accordance with the terms of the Investment Management Agreement, the Fund
pays Delaware Management Company ("DMC"), the Investment Manager of the Fund, an
annual fee which is calculated daily at the following rates: 0.45% on the first
$500 million of average daily net assets of the Fund, 0.40% on the next $500
million, 0.35% on the next $1.5 billion and 0.30% on the average daily net
assets over $2.5 billion. At September 30, 2000, the Fund had a liability for
investment management fees and other expenses payable to DMC of $213,204.
The Fund has engaged Delaware Service Company, Inc. ("DSC"), an affiliate of
DMC, to provide dividend disbursing, transfer agent, accounting and
administration services. The Fund pays DSC a monthly fee based on the number of
shareholder accounts, shareholder transactions and average net assets subject to
certain minimums. At September 30, 2000, the Fund had no liability for such fees
and other expenses payable to DSC.
Pursuant to the Distribution Agreement, the Fund pays Delaware Distributors,
L.P. ("DDLP"), the Distributor and an affiliate of DMC, an annual fee not to
exceed 0.25% of the average daily net assets of the Consultant Class and 1.00%
of the average daily net assets of the B and C Classes. At September 30, 2000,
the Fund had a liability for such fees payable to DDLP of $43,745.
Certain officers of DMC, DSC and DDLP are officers, trustees and/or employees of
the Fund. These officers, trustees, and employees are paid no compensation by
the Fund.
12
<PAGE>
Notes to Financial Statements (continued)
--------------------------------------------------------------------------------
3. Capital Shares
Transactions in capital shares were as follows:
Six Months
Ended Year Ended
9/30/00 3/31/00
(Unaudited)
Shares sold:
A Class ..................................... 491,382,427 1,671,713,220
B Class ..................................... 23,955,737 76,974,959
C Class ..................................... 30,256,943 114,902,183
Consultant Class ............................ 32,205,560 110,646,645
Shares issued upon reinvestment of
dividends from net investment income:
A Class ..................................... 14,740,960 24,635,985
B Class ..................................... 365,625 751,623
C Class ..................................... 140,955 307,007
Consultant Class ............................ 858,657 1,428,832
------------ --------------
593,906,864 2,001,360,454
------------ --------------
Shares repurchased:
A Class ..................................... (523,581,398) (1,718,412,277)
B Class ..................................... (29,937,830) (74,287,569)
C Class ..................................... (32,110,141) (118,578,432)
Consultant Class ............................ (33,748,348) (122,160,648)
----------- --------------
(619,377,717) (2,033,438,926)
------------ --------------
Net decrease .................................. (25,470,853) (32,078,472)
============ ==============
13
<PAGE>
DELAWARE(SM) For Shareholders
INVESTMENTS 1.800.523.1918
---------------------
Philadelphia o London For Securities Dealers
1.800.362.7500
For Financial Institutions
Representatives Only
1.800.659.2265
www.delawareinvestments.com
This semi-annual report is for the information of Delaware Cash Reserve
shareholders, but it may be used with prospective investors when preceded or
accompanied by a current prospectus for Delaware Cash Reserve and the Delaware
Investments Performance Update for the most recently completed calendar quarter.
The prospectus sets forth details about charges, expenses, investment objectives
and operating policies of the Fund. You should read the prospectus carefully
before you invest. The figures in this report represent past results which are
not a guarantee of future results. The return and principal value of an
investment in the Fund will fluctuate so that shares, when redeemed, may be
worth more or less than their original cost. 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.
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
BOARD OF TRUSTEES Charles E. Peck Investment Manager
Retired Delaware Management Company
Wayne A. Stork Fredericksburg, VA Philadelphia, PA
Chairman
Delaware Investments Family of Funds Janet L. Yeomans International Affiliate
Philadelphia, PA Vice President and Treasurer Delaware International Advisers Ltd.
3M Corporation London, England
Walter P. Babich St. Paul, MN
Board Chairman National Distributor
Citadel Constructors, Inc. Delaware Distributors, L.P.
King of Prussia, PA AFFILIATED OFFICERS Philadelphia, PA
Charles E. Haldeman, Jr.
David K. Downes President and Chief Executive Officer Shareholder Servicing, Dividend
President and Chief Executive Officer Delaware Management Holdings, Inc. Disbursing and Transfer Agent
Delaware Investments Family of Funds Philadelphia, PA Delaware Service Company, Inc.
Philadelphia, PA Philadelphia, PA
Richard J. Flannery
John H. Durham Executive Vice President 2005 Market Street
Private Investor and General Counsel Philadelphia, PA 19103-3682
Horsham, PA Delaware Investments Family of Funds
Philadelphia, PA
Anthony D. Knerr
Consultant, Anthony Knerr & Associates Bruce D. Barton
New York, NY President and Chief Executive Officer
Delaware Distributors, L.P.
Ann R. Leven Philadelphia, PA
Former Treasurer, National Gallery of Art
Washington, DC
Thomas F. Madison
President and Chief Executive Officer
MLM Partners, Inc.
Minneapolis, MN
</TABLE>
(3966) Printed in the USA
SA-008 [9/00] PP 11/00 (J6514)
