<PAGE>
DELAWARE(SM)
INVESTMENTS
- -----------
Delaware Cash Reserve
Money Market
2000 ANNUAL REPORT
(Money Market Artwork)
<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 14
Report of Independent
Auditors 16
A Commitment To Our Investors
Experienced
[] Our seasoned investment professionals average more than 15 years'
experience.
[] For over 70 years, we have managed money in a variety of investment styles
that have weathered a full range of economic and market environments. We
opened our first mutual fund in 1938.
Disciplined
[] We follow strict investment policies and clear buy/sell guidelines.
[] We strive to balance risk and reward in order to provide relatively
conservative investment alternatives within any given asset class.
Consistent
[] We believe consistent processes are the best way to seek consistent
investment performance.
[] Our commitment to style consistency has earned us the confidence of
discriminating institutional and individual investors to manage
approximately $46 billion in assets as of March 31, 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 (24 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
"DELAWARE CASH RESERVE DELIVERED A TOTAL RETURN OF 4.69% FOR THE YEAR ENDED
MARCH 31, 2000."
May 12, 2000
Recap of Events - Against the backdrop of a booming economy, U.S. companies
reported historic increases in earnings during the Fund's fiscal year ended
March 31, 2000. Throughout the year, investors saw an impressive rise in equity
markets and an outstanding money market, but also had to deal with a lackluster
bond market.
The nation's economic output, as measured by the Gross Domestic Product (GDP),
continued at a feverish pace. The GDP grew at a 7.3% annual rate in the fourth
quarter 1999 after expanding at more than 4% a year during the past 3 years.
During the Fund's fiscal year, a low unemployment rate and high consumer
spending helped fuel economic expansion, but also posed a serious threat of
inflation (Source: Bloomberg).
Prompted by inflationary concerns, the Federal Reserve Board reversed its
relaxed monetary policy and, in June of 1999, initiated the first of five
quarter-point interest rate increases. As of this writing, the federal funds
rate -- the rate banks charge each other on overnight loans -- stands at 6.0%,
its highest level in five years.
Any changes 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. In May and June of 1999, in anticipation of the interest
rate hikes, Delaware Cash Reserve's Portfolio Manager, Cynthia I. Isom, began
shortening the Fund's average maturity. As of March 31, 2000, the average
maturity was about 44 days.
In late February and March, continued concerns over rising interest rates,
potential inflation and high stock prices began to take their toll on all market
sectors, leading to several bouts of volatility. We believe money market funds
provide a potential safe harbor during times of stock market turbulence.
Delaware Cash Reserve has been positively affected by the Fed's tightened
monetary policy. The Fund delivered a total return of 4.69% (Class A shares with
dividends reinvested) for the year ended March 31, 2000. Delaware Cash Reserve's
daily yield was 5.38%, up from 4.12% on March 31, 1999, while the 7-day yield
was 5.34%, up from 4.10% a year earlier. Delaware Cash Reserve
Total Return
For Period Ended March 31, 2000 One Year
- --------------------------------------------------------------------------------
Delaware Cash Reserve Fund Class A +4.69%
- --------------------------------------------------------------------------------
U.S. Consumer Price Index +3.11%
Lipper Money Market Funds Average (351 funds) +4.72%
- --------------------------------------------------------------------------------
All performance shown above assumes 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 information
for all Fund classes can be found on page 5. The Lipper category represents the
average returns of money market funds with similar investment objectives tracked
by Lipper Analytical (Source: Lipper Analytical Services, Inc.). Past
performance does not guarantee future results.
1
<PAGE>
"DELAWARE CASH RESERVE HAS BEEN POSITIVELY AFFECTED BY THE
FED'S TIGHTENED MONETARY POLICY."
continues to invest in high quality money market securities while striving to
maximize income, preserve principal and maintain liquidity.
Market Outlook - Despite the recent market turbulence, our economy is still
growing in leaps and bounds. We believe the Fed, therefore, will continue to
raise interest rates in a stronger attempt to thwart inflation. We expect to see
continued stock market volatility over the next few months as the Fed continues
its efforts to slow economic growth. We intend to keep a watchful eye on the
situation in the months ahead and position the Fund to benefit from a rising
interest rate environment.
/s/ Wayne A. Stork /s/ David K. Downes
- ------------------------------------ --------------------------------------
Sincerely,
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
May 12, 2000
The Fund's Results
When fixed-income securities and equity investments experience greater
volatility, as they have during the past 12 months, investors often expect their
money market funds to provide a cushion of stability or a safe haven. Though
stocks held the spotlight during most of the Fund's fiscal year, money market
funds quietly continued to meet the objectives for which they were designed:
providing current income with liquidity and preservation of principal.
Over the past 12 months, money markets benefited from the Federal Reserve
Board's more restrictive monetary policy. Higher interest rates helped to
increase yields on money market funds, making them more attractive to investors.
As of March 31, 2000, Delaware Cash Reserve Fund daily yield was 5.38%, up from
4.12% on March 31, 1999, while the 7-day yield was 5.34%, up from 4.10% a year
earlier.
Trading of money market securities increased during our fiscal year as Y2K
concerns prompted some investors to seek short-term securities of higher credit
quality. This boosted the demand for money market instruments during the fourth
quarter of 1999.
Portfolio Highlights
To safeguard principal and maintain income potential, we have continued to
invest in money market instruments with the highest credit ratings.
We anticipated the higher interest rate policy and began shortening the Fund's
maturity in May of 1999, before the Fed's first interest rate hike in late June.
We did this so the Fund would be positioned to benefit from a rising interest
rate environment.
While the Securities and Exchange Commission (SEC) permits money market funds to
have an average maturity as long as 90 days, we believed it was prudent to stay
much shorter. As interest rates rose in 1999, we steadily reduced the Fund's
average maturity. The average maturity was shortened from a 55-day range at the
start of our fiscal year to approximately 44 days as of March 31, 2000. We see
average maturity staying within this range and only plan to extend it when we
see a significant yield advantage in doing so.
A majority of the Fund's net assets is invested in commercial paper. During the
fiscal year, we slightly increased the allocation from 71.4% at the start of the
fiscal period to 75.4% as of March 31, 2000. Commercial paper is a short-term
debt obligation issued by creditworthy corporations and banks. For investors,
commercial paper provides the flexibility and safety of a security that is
issued only by top-rated companies.
3
<PAGE>
Delaware Cash Reserve
Asset Mix
March 31, 2000
Certificates of Deposit 6.35%
Floating Rate Notes 5.87%
Other 0.02%
Yankee CDs 1.59%
Short-Term Time Deposits 10.76%
Commercial Paper 75.41%
Outlook
It is likely that the Fed will continue to increase interest rates in the coming
months in order to slow the pace of the U.S. economic climate to what it
believes is a non-inflationary rate of growth. We are encouraged that the
Federal Reserve is making policy decisions in an attempt to prevent inflation.
In response, we expect to see more bouts of stock market volatility in the near
term. We believe Delaware Cash Reserve could be a safe harbor during times of
market turbulence as your Fund is managed to minimize risk to principal while
providing a regular stream of income.
For Delaware Cash Reserve, we are optimistic that the next six months will
continue to provide a favorable environment for money market funds. We intend to
keep a watchful eye on changes in consumer and producer prices to gauge their
potential effect on the markets and the Fed's interest rate policy.
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 the federal or state
governments. 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 Check-writing privileges - Ability to write checks against your account;*
o Current income - Offers relative stability of your principal and a yield
that has historically been above the inflation rate;
o Convenient access to other mutual funds - Investing in other Delaware
Investments 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 and bond funds in a long-term portfolio, you may be
well-served by Delaware Cash Reserve. 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 it from the long-term impact of inflation and taxes. 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.
[Money Market Artwork]
4
<PAGE>
FUND BASICS
Fund Objectives
Seeks to maximize current income while preserving principal and maintaining
liquidity.
Assets Under Management
$630 million
Number of Holdings
58
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. She previously was an
institutional salesperson with Merrill Lynch.
NASDAQ Symbol
Class A DCRXX
CUSIP Numbers
Consultant Class 245910-20-3
Class B 245910-30-2
Class C 245910-40-1
<PAGE>
DELAWARE CASH RESERVE PERFORMANCE
Growth of a $10,000 Investment
April 1, 1990 through March 31, 2000
Delaware U.S.
Cash Consumer
Period Reserve Price
End Class A Index
- ------ -------- --------
Mar-90 $10,000 $10,000
Mar-91 10,752 10,490
Mar-92 11,304 10,824
Mar-93 11,628 11,158
Mar-94 11,895 11,437
Mar-95 12,372 11,764
Mar-96 12,992 12,098
Mar-97 13,591 12,432
Mar-98 14,240 12,603
Mar-99 14,892 12,821
Mar-00 15,585 13,219
The chart assumes $10,000 invested on March 31, 1990 and reinvestment of all
dividends. Past performance is not a guarantee of future results. The U.S.
Consumer Price Index represents overall annualized consumer inflation as
calculated by the U.S. government. Performance of other Fund classes varies due
to different charges and expenses.
Average Total Returns
<TABLE>
<CAPTION>
Through March 31, 2000 Lifetime 10 Years Five Years One Year 7-Day Yield
- --------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Class A (Est. 6/30/78) +7.38% +4.55% +4.76% +4.69% +5.34%
- --------------------------------------------------------------------------------------------
Consultant Class (Est. 3/10/88) +7.22% +4.29% +4.50% +4.43% +5.09%
- --------------------------------------------------------------------------------------------
Class B (Est. 5/2/94)
Excluding Sales Charge +3.62% +3.72% +3.65% +4.34%
Including Sales Charge +3.48% +3.37% -1.35%
- --------------------------------------------------------------------------------------------
Class C (Est. 11/29/95)
Excluding Sales Charge +3.66% +3.65% +4.34%
Including Sales Charge +3.66% +2.65%
- --------------------------------------------------------------------------------------------
</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 of $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
contingent deferred sales charge of up to 5% if redeemed before the end of the
sixth year.
Class C shares are subject to a 1% annual distribution and service fee. If
shares are redeemed within 12 months, a contingent deferred sales charge of up
to 1% applies.
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 shares of Delaware
Investments 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 charge for Class B and Class C shares assumes the investment was
either not redeemed or that contingent deferred sales charges did not apply.
5
<PAGE>
Statement of Net Assets
DELAWARE CASH RESERVE
- ---------------------
Principal Market
March 31, 2000 Amount Value
- --------------------------------------------------------------------------------
Commercial Paper - 75.41%
Financial Services - 25.02%
Aegon Funding 5.94% 6/1/00 ..................... $13,000,000 $12,869,155
Allianz of America 5.97% 6/8/00 ................ 9,000,000 8,898,510
Fleet Funding 5.98% 4/10/00 .................... 10,000,000 9,985,050
General Electric Capital 5.88% 4/25/00 ......... 10,000,000 9,960,800
Home Depot Real Estate 5.91% 5/23/00 ........... 10,000,000 9,914,633
ING America Insurance Holding 5.90% 5/9/00 ..... 10,250,000 10,186,165
Marsh USA
5.57% 4/28/00 ......................... 10,000,000 9,958,225
5.90% 5/15/00 ......................... 10,000,000 9,927,889
5.98% 6/26/00 ......................... 10,000,000 9,857,144
Metlife Funding 5.90% 4/6/00 ................... 10,000,000 9,991,806
Motorola Credit 5.89% 5/4/00 ................... 7,000,000 6,962,206
St. Paul Company 5.90% 4/13/00 ................. 10,000,000 9,980,333
Swiss Re Financial Products
5.90% 4/13/00 ......................... 10,000,000 9,980,333
5.92% 5/23/00 ......................... 7,000,000 6,940,142
Tasmania Public Finance 5.85% 4/7/00 ........... 12,300,000 12,288,008
Teco Finance 6.06% 5/24/00 ..................... 10,000,000 9,910,783
------------
157,611,182
------------
Industrial - 10.28%
Exxon Mobil Australia 5.96% 4/18/00 .......... 10,000,000 9,971,856
Henkel
5.97% 7/3/00 ........................ 11,000,000 10,830,353
6.02% 8/9/00 ........................ 11,200,000 10,956,524
New York Times
5.86% 4/12/00 ....................... 13,000,000 12,976,723
6.05% 5/9/00 ........................ 10,100,000 10,035,500
Wal-Mart Stores 5.96% 4/24/00 ................ 10,000,000 9,961,922
------------
64,732,878
------------
Mortgage Bankers & Brokers - 37.75%
Bank of America
5.89% 4/12/00 ....................... 10,000,000 9,982,003
5.97% 6/6/00 ........................ 10,000,000 9,890,550
Bank of Scotland 6.10% 6/6/00 ................ 10,000,000 9,888,167
Bear Stearns
5.95% 5/15/00 ....................... 12,000,000 11,912,733
6.09% 5/23/00 ....................... 10,000,000 9,912,033
Credit Suisse First Boston
5.91% 5/15/00 ....................... 10,000,000 9,927,767
5.97% 6/9/00 ........................ 10,000,000 9,885,575
6.07% 8/23/00 ....................... 5,000,000 4,878,600
Den Danske 5.88% 4/10/00 ..................... 10,000,000 9,985,300
Goldman Sachs Group
5.91% 5/1/00 ........................ 10,000,000 9,950,750
5.93% 5/26/00 ....................... 10,000,000 9,909,403
Merrill Lynch
5.86% 4/12/00 ....................... 10,000,000 9,982,094
5.90% 5/22/00 ....................... 7,500,000 7,437,313
5.93% 5/10/00 ....................... 10,000,000 9,935,758
<PAGE>
Principal Market
Amount Value
- --------------------------------------------------------------------------------
Commercial Paper (continued)
Mortgage Bankers & Brokers (continued)
Morgan Stanley Dean Witter
5.91% 5/24/00 .......................... $ 10,000,000 $ 9,912,992
5.93% 5/17/00 .......................... 10,000,000 9,924,228
Royal Bank Scotland
5.95% 4/14/00 ........................... 10,000,000 9,978,514
6.02% 4/17/00 ........................... 10,000,000 9,973,244
Societe Generale North America 5.88%
5/16/00 ................................. 10,000,000 9,926,500
UBS Finance 6.28% 4/3/00 ........................ 25,500,000 25,491,103
WestPac Capital 5.93% 7/24/00 ................... 10,000,000 9,812,217
WestPac Trust
6.00% 10/13/00 .......................... 10,000,000 9,675,000
6.04% 10/23/00 .......................... 10,000,000 9,656,056
------------
237,827,900
------------
Schools - 2.36%
The Board of Trustees of The Leland
Stanford Junior University 5.90%
5/17/00 ................................. 15,000,000 14,886,917
------------
14,886,917
------------
Total Commercial Paper .......................... 475,058,877
------------
Certificates Of Deposit - 6.35%
Harris Trust & Savings 5.93% 4/13/00 ............ 10,000,000 10,000,000
Wilmington Trust
5.95% 4/13/00 ........................... 10,000,000 10,000,000
5.99% 5/17/00 ........................... 10,000,000 10,000,000
6.35% 10/11/00 .......................... 10,000,000 10,000,000
------------
Total Certificates of Deposit ................... 40,000,000
------------
Short-Term Time Deposits - 10.76%
Den Danske 6.28% 4/3/00 ......................... 17,757,000 17,757,000
Huntington National 6.28% 4/3/00 ................ 25,000,000 25,000,000
Suntrust Bank 6.28% 4/3/00 ...................... 25,000,000 25,000,000
------------
Total Short-Term Time Deposits .................. 67,757,000
------------
*Floating Rate Notes - 5.87%
AT&T Corporation 5.99% 7/13/00 .................. 10,000,000 9,998,874
Goldman Sachs Group 6.46% 9/18/00 ............... 10,000,000 10,007,156
Morgan Stanley Dean Witter 6.53% 5/8/00 ......... 10,000,000 10,000,000
Racers 99-16-Money Market 5.94% 6/2/00 .......... 7,000,000 7,000,000
------------
Total Floating Rate Notes ....................... 37,006,030
------------
Yankee CD - 1.59%
Commerzbank 6.15% 7/28/00 ....................... 10,000,000 10,000,636
------------
Total Yankee CD ................................. 10,000,636
------------
6
<PAGE>
Statement of Net Assets (continued)
Delaware Cash Reserve
- --------------------------------------------------------------------------------
Total Market Value of Securities - 99.98%
(cost $629,822,543)** .............................. $629,822,543
Receivables and Other Assets
Net of Liabilities - 0.02% ......................... 128,780
------------
Net Assets Applicable to 629,944,387
Shares Outstanding - 100.00% ....................... $629,951,323
============
Net Asset Value - Delaware Cash Reserve Fund
A Class ($566,193,040 / 566,185,726 Shares) ........ $1.00
-----
Net Asset Value - Delaware Cash Reserve Fund
B Class ($23,349,710 / 23,347,756 Shares) .......... $1.00
-----
Net Asset Value - Delaware Cash Reserve Fund
C Class ($7,760,531 / 7,764,312 Shares) ............ $1.00
-----
Net Asset Value - Delaware Cash Reserve Fund
Consultant Class ($32,648,042 /32,646,593 Shares) ... $1.00
-----
- ----------------------
* Floating Rate Notes-The interest rate shown is the rate as of March 31,
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
<TABLE>
<CAPTION>
Year Ended March 31, 2000 Delaware Cash Reserve
- -------------------------------------------------------------------------------------------------------
<S> <C> <C>
Investment Income:
Interest ............................................................. $35,734,936
Expenses:
Management fees ...................................................... 2,860,175
Dividend disbursing and transfer agent fees and expenses ............. 2,207,550
Distribution expense ................................................. 444,595
Accounting and administration ........................................ 262,316
Reports and statements to shareholders ............................... 244,301
Registration fees .................................................... 109,300
Custodian fees ....................................................... 37,904
Professional fees .................................................... 32,808
Trustees' fees ....................................................... 19,561
Taxes (other than taxes on income) ................................... 10,750
Other ................................................................ 86,488
------------
6,315,748
Less expenses paid indirectly ........................................ (14,974)
------------
Total expenses ....................................................... 6,300,774
------------
Net Investment Income ................................................ 29,434,162
------------
Net Increase in Net Assets Resulting from Operations ................. $29,434,162
============
</TABLE>
See accompanying notes
8
<PAGE>
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
Delaware Cash Reserve
- -------------------------------------------------------------------------------------------------------
<S> <C> <C>
Year Ended
3/31/00 3/31/99
Increase in Net Assets from Operations:
Net investment income ........................................... $ 29,434,162 $ 27,425,226
--------------- ---------------
Dividends to Shareholders from:
Net investment income:
A Class ................................................ (26,634,022) (24,857,705)
B Class ................................................ (912,198) (542,381)
C Class ................................................ (351,304) (242,117)
Consultant Class ....................................... (1,536,638) (1,783,023)
--------------- ---------------
(29,434,162) (27,425,226)
--------------- ---------------
Capital Share Transactions:
Proceeds from shares sold:
A Class ................................................ 1,671,713,220 1,978,969,758
B Class ................................................ 76,974,959 117,999,348
C Class ................................................ 114,902,183 155,854,545
Consultant Class ....................................... 110,646,645 485,552,242
Net asset value of shares issued upon reinvestment of dividends from net
investment income:
A Class ................................................ 24,643,299 21,171,773
B Class ................................................ 753,577 412,827
C Class ................................................ 303,226 202,957
Consultant Class ....................................... 1,430,281 1,429,128
--------------- ---------------
2,001,367,390 2,761,592,578
--------------- ---------------
Cost of shares repurchased:
A Class ................................................ (1,718,412,277) (1,936,369,808)
B Class ................................................ (74,287,569) (105,025,829)
C Class ................................................ (118,578,432) (148,625,680)
Consultant Class ....................................... (122,160,648) (484,286,277)
--------------- ---------------
(2,033,438,926) (2,674,307,594)
--------------- ---------------
Increase (decrease) in net assets derived from capital
share transactions ............................................ (32,071,536) 87,284,984
--------------- ---------------
Net Increase (Decrease) in Net Assets ........................... (32,071,536) 87,284,984
Net Assets:
Beginning of year ............................................... 662,022,859 574,737,875
--------------- ---------------
End of year ..................................................... $ 629,951,323 $ 662,022,859
--------------- ---------------
</TABLE>
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
- ------------------------------------------------------------------------------------------------------------------------------------
Year Ended
3/31/00 3/31/99 3/31/98 3/31/97 3/31/96
<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 ............................................ 0.046 0.045 0.048 0.045 0.049
------------------------------------------------------
Total from investment operations ................................. 0.046 0.045 0.048 0.045 0.049
------------------------------------------------------
Less dividends:
Dividends from net investment income ............................. (0.046) (0.045) (0.048) (0.045) (0.049)
------------------------------------------------------
Total dividends .................................................. (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
======================================================
Total return(1) ..................................................... 4.69% 4.61% 4.88% 4.61% 5.01%
Ratios and supplemental data:
Net assets, end of period (000 omitted) .......................... $566,193 $588,249 $524,477 $594,877 $585,485
Ratio of expenses to average net assets .......................... 0.91% 0.90% 0.88% 0.88% 0.95%
Ratio of net investment income to average net assets ............. 4.59% 4.51% 4.78% 4.52% 4.90%
</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.
See accompanying notes
10
<PAGE>
Financial Highlights
<TABLE>
<CAPTION>
Selected data for each share of the Fund outstanding
throughout each period were as follows: Delaware Cash Reserve B Class
- ------------------------------------------------------------------------------------------------------------------------------------
Year Ended
3/31/00 3/31/99 3/31/98 3/31/97 3/31/96
<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 ............................................. 0.036 0.035 0.038 0.035 0.039
------------------------------------------------------
Total from investment operations .................................. 0.036 0.035 0.038 0.035 0.039
------------------------------------------------------
Less dividends:
Dividends from net investment income .............................. (0.036) (0.035) (0.038) (0.035) (0.039)
------------------------------------------------------
Total dividends ................................................... (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
======================================================
Total return(1) ...................................................... 3.65% 3.57% 3.84% 3.58% 3.97%
Ratios and supplemental data:
Net assets, end of period (000 omitted) ........................... $23,349 $19,908 $6,522 $12,988 $8,127
Ratio of expenses to average net assets ........................... 1.91% 1.90% 1.88% 1.88% 1.95%
Ratio of net investment income to average net assets .............. 3.59% 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 does not reflect the impact of a sales charge.
See accompanying notes
11
<PAGE>
Financial Highlights
<TABLE>
<CAPTION>
Selected data for each share of the Fund outstanding
throughout each period were as follows: Delaware Cash Reserve C Class
- ------------------------------------------------------------------------------------------------------------------------------------
Year Ended
Period
11/29/95 to
3/31/00 3/31/99 3/31/98 3/31/97 3/31/96(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 ........................................... 0.036 0.035 0.038 0.035 0.012
-----------------------------------------------------
Total from investment operations ................................ 0.036 0.035 0.038 0.035 0.012
-----------------------------------------------------
Less dividends:
Dividends from net investment income ............................ (0.036) (0.035) (0.038) (0.035) (0.012)
-----------------------------------------------------
Total dividends ................................................. (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
=====================================================
Total return(2) .................................................... 3.65% 3.58% 3.84% 3.58% 1.24%
Ratios and supplemental data:
Net assets, end of period (000 omitted) ......................... $7,760 $11,134 $3,702 $2,799 $304
Ratio of expenses to average net assets ......................... 1.91% 1.90% 1.88% 1.88% 1.95%
Ratio of net investment income to average net assets ............ 3.59% 3.51% 3.78% 3.52% 3.90%
</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 does not reflect the impact of a sales charge.
See accompanying notes
12
<PAGE>
Financial Highlights
<TABLE>
<CAPTION>
Selected data for each share of the Fund outstanding
throughout each period were as follows: Delaware Cash Reserve Consultant Class
- ------------------------------------------------------------------------------------------------------------------------------------
Year Ended
3/31/00 3/31/99 3/31/98 3/31/97 3/31/96
<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 ........................................... 0.043 0.043 0.045 0.043 0.047
------------------------------------------------------
Total from investment operations ................................ 0.043 0.043 0.045 0.043 0.047
------------------------------------------------------
Less dividends:
Dividends from net investment income ............................ (0.043) (0.043) (0.045) (0.043) (0.047)
------------------------------------------------------
Total dividends ................................................. (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
------------------------------------------------------
Total return(1) .................................................... 4.43% 4.35% 4.62% 4.36% 4.75%
Ratios and supplemental data:
Net assets, end of period (000 omitted) ......................... $32,648 $42,732 $40,037 $23,468 $20,344
Ratio of expenses to average net assets ......................... 1.16% 1.15% 1.13% 1.13% 1.20%
Ratio of net investment income to average net assets ............ 4.34% 4.26% 4.53% 4.27% 4.65%
</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. See accompanying notes
13
<PAGE>
Notes to Financial Statements
March 31, 2000
- --------------------------------------------------------------------------------
Delaware Cash Reserve Fund (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 Fund A Class and the Delaware Cash Reserve
Fund Consultant Class have no sales charge. The Delaware Cash Reserve Fund B
Class carries a back-end deferred sales charge and the Delaware Cash Reserve
Fund 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 $14,974 for the year ended March 31, 2000. In
addition, the Fund receives earnings credits from its custodian when positive
cash balances are maintained, which are used to offset custody fees. There were
no earnings credits for the year ended March 31, 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 March 31, 2000, the Fund had a liability for
investment management fees and other expenses payable to DMC of $98,433.
The Fund has engaged Delaware Service Company, Inc. ("DSC"), an affiliate of
DMC, to provide dividend disbursing, transfer agent and 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 March 31, 2000, the Fund had a liability for such fees
and other expenses payable to DSC of $65,985.
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 March 31, 2000, the
Fund had a liability for such fees payable to DDLP of $29,244.
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.
14
<PAGE>
Notes to Financial Statements (continued)
3. Capital Stock
Transactions in capital shares were as follows:
Year Ended
3/31/00 3/31/99
Shares sold:
A Class ................................ 1,671,713,220 1,978,969,758
B Class ................................ 76,974,959 117,999,348
C Class ................................ 114,902,183 155,854,545
Consultant Class ....................... 110,646,645 485,552,242
Shares issued upon reinvestment of
dividends from net investment income:
A Class ................................ 24,635,985 21,171,773
B Class ................................ 751,623 412,827
C Class ................................ 307,007 202,957
Consultant Class ....................... 1,428,832 1,429,128
-------------- -------------
2,001,360,454 2,761,592,578
-------------- -------------
Shares repurchased:
A Class ................................ (1,718,412,277) (1,936,369,808)
B Class ................................ (74,287,569) (105,025,829)
C Class ................................ (118,578,432) (148,625,680)
Consultant Class ....................... (122,160,648) (484,286,277)
-------------- -------------
(2,033,438,926) (2,674,307,594)
-------------- -------------
Net increase (decrease) ................... (32,078,472) 87,284,984
============== =============
4. Tax Information (Unaudited)
The information set forth below is for the Fund's fiscal year as required by
federal laws. Shareholders, however, must report distributions on a calendar
year basis for income tax purposes, which may include distributions for portions
of two fiscal years of a fund. Accordingly, the information needed by
shareholders for income tax purposes will be sent to them in early 2001. Please
consult your tax adviser for proper treatment of this information.
For the fiscal year ended March 31, 2000, the Fund designates as ordinary income
distributions paid during the year as follows:
(A)
Ordinary Income Distributions
(Tax Basis)
-----------------------------
100%
- -------------------
(A) is based on a percentage of the Fund's total distributions.
15
<PAGE>
Report of Independent Auditors
- --------------------------------------------------------------------------------
To the Shareholders and Board of Trustees
Delaware Cash Reserve Fund
We have audited the accompanying statement of net assets of Delaware Cash
Reserve Fund (the "Fund") as of March 31, 2000, 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 auditing standards generally accepted
in the United States. 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, 2000, 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 Cash Reserve Fund at March 31, 2000, 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 accounting principles generally accepted in the
United States.
/s/ Ernst & Young LLP
Philadelphia, Pennsylvania
May 5, 2000
16
<PAGE>
DELAWARE INVESTMENTS FAMILY OF FUNDS
Complete information on any fund offered by Delaware Investments can be found in
each fund's current prospectus. Prospectuses for all funds offered by Delaware
Investments are available from your financial adviser. Please read the
prospectus carefully before you invest or send money.
Growth of Capital
o Technology and
Innovation Fund
o Select Growth Fund
o Trend Fund
o Growth Opportunities
Fund*
o Small Cap Value Fund
o U.S. Growth Fund
o Tax-Efficient Equity Fund
o Social Awareness Fund
Total Return
o Blue Chip Fund
o Devon Fund
o Growth and Income Fund
o Decatur Equity
Income Fund
o REIT Fund
o Balanced Fund
International and Global
o Emerging Markets Fund
o New Pacific Fund
o Overseas Equity Fund
o International Equity Fund
o Global Equity Fund
o Global Bond Fund
Current Income
o Delchester Fund
o High-Yield
Opportunities Fund
o Strategic Income Fund
o Corporate Bond Fund
o Extended Duration
Bond Fund
o American Government
Bond Fund
o U.S. Government
Securities Fund
o Limited-Term
Government Fund
Tax-Exempt Income
o National High-Yield
Municipal Bond Fund
o Tax-Free USA Fund
o Tax-Free Insured Fund
o Tax-Free USA
Intermediate Fund
o State Tax-Free Funds**
Stability of Principal
o Cash Reserve
o Tax-Free Money Fund
Asset Allocation
o Foundation Funds
Growth Portfolio
Balanced Portfolio
Income Portfolio
* Formerly known as DelCap Fund.
** Available for the following states: Arizona, California, Colorado, Florida,
Idaho, Iowa, Kansas, Minnesota, Missouri, Montana, North Dakota, New
Jersey, New Mexico, New York, Ohio, Oregon, Pennsylvania and Wisconsin.
Insured and intermediate bond funds are available in selected states.
<PAGE>
DELAWARE (SM)
INVESTMENTS
- ---------------------
Philadelphia o London
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
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 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.
- --------------------------------------------------------------------------------
<PAGE>
BOARD OF TRUSTEES
Wayne A. Stork
Chairman
Delaware Investments Family of Funds
Philadelphia, PA
Walter P. Babich
Board Chairman
Citadel Constructors, Inc.
King of Prussia, PA
David K. Downes
President and Chief Executive Officer
Delaware Investments Family of Funds
Philadelphia, PA
John H. Durham
Private Investor
Horsham, PA
Anthony D. Knerr
Consultant, Anthony Knerr & Associates
New York, NY
Ann R. Leven
Former Treasurer, National Gallery of Art
Washington, DC
Thomas F. Madison
President and Chief Executive Officer
MLM Partners, Inc.
Minneapolis, MN
Charles E. Peck
Retired
Fredericksburg, VA
Janet L. Yeomans
Vice President and Treasurer
3M Corporation
St. Paul, MN
AFFILIATED OFFICERS
Charles E. Haldeman, Jr.
President and Chief Executive Officer
Delaware Management Holdings, Inc.
Philadelphia, PA
Richard J. Flannery
Executive Vice President
and General Counsel
Delaware Investments Family of Funds
Philadelphia, PA
Bruce D. Barton
President and Chief Executive Officer
Delaware Distributors, L.P.
Philadelphia, PA
Investment Manager
Delaware Management Company
Philadelphia, PA
International Affiliate
Delaware International Advisers Ltd.
London, England
National Distributor
Delaware Distributors, L.P.
Philadelphia, PA
Shareholder Servicing, Dividend
Disbursing and Transfer Agent
Delaware Service Company, Inc.
Philadelphia, PA
1818 Market Street
Philadelphia, PA 19103-3682
(3128) Printed in the USA
AR-008 [3/00] PPL 5/00 (J5871)
