<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM N-1A
File No. 2-13017
File No. 811-750
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 [X]
Pre-Effective Amendment No. ____
Post-Effective Amendment No. 108 [X]
AND
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940 [X]
Amendment No. 108
---
DELAWARE GROUP EQUITY FUNDS II, INC.
- --------------------------------------------------------------------------------
(formerly known as Delaware Group Decatur Fund, Inc.)
(Exact Name of Registrant as Specified in Charter)
1818 Market Street, Philadelphia, Pennsylvania 19103
- --------------------------------------------------------------------------------
(Address of Principal Executive Offices) (Zip Code)
Registrant's Telephone Number, including Area Code: (215) 751-2923
--------------
George M. Chamberlain, Jr., 1818 Market Street, Philadelphia, PA 19103
- --------------------------------------------------------------------------------
(Name and Address of Agent for Service)
Approximate Date of Public Offering: August 22, 1997
---------------
It is proposed that this filing will become effective:
[ ] immediately upon filing pursuant to paragraph (b)
[X] on August 22, 1997 pursuant to paragraph (b)
[ ] 60 days after filing pursuant to paragraph (a)(1)
[ ] on (date) pursuant to paragraph (a)(1)
[ ] 75 days after filing pursuant to paragraph (a)(2)
[ ] on (date) pursuant to paragraph (a)(2) of Rule 485
Registrant has registered an indefinite amount of
securities under the Securities Act of 1933 pursuant to Section 24(f)
of the Investment Company Act of 1940. Registrant's 24f-2 Notice
for its most recent fiscal year was filed on January 29, 1997.
<PAGE> 2
--- C O N T E N T S ---
This Post-Effective Amendment No. 108 to Registration File No. 2-13017 includes
the following:
1. Facing Page
2. Contents Page
3. Cross-Reference Sheet*
4. Part A - Prospectuses and Supplements**
5. Part B - Statement of Additional Information***
6. Part C - Other Information*
7. Signatures
* This Post-Effective Amendment relates to the Registrant's four series of
shares and their classes: Decatur Income Fund - Decatur Income Fund A
Class, Decatur Income Fund B Class, Decatur Income Fund C Class and
Decatur Income Fund Institutional Class; Decatur Total Return Fund -
Decatur Total Return Fund A Class, Decatur Total Return Fund B Class,
Decatur Total Return Fund C Class and Decatur Total Return Fund
Institutional Class; Blue Chip Fund - Blue Chip Fund A Class, Blue Chip
Fund B Class, Blue Chip Fund C Class and Blue Chip Fund Institutional
Class; and Quantum Fund - Quantum Fund A Class, Quantum Fund B Class,
Quantum Fund C Class and Quantum Fund Institutional Class. Class A Shares,
Class B Shares and Class C Shares of Decatur Income Fund and Decatur Total
Return Fund are combined in one Prospectus, and the Institutional Class of
such Funds is combined in one Prospectus. Class A Shares, Class B Shares
and Class C Shares of Blue Chip Fund and Quantum Fund are combined in one
Prospectus, and the Institutional Class of such Funds is combined in one
Prospectus. The four Funds (and 16 classes) have a common Statement of
Additional Information and Part C.
** The Registrant's Decatur Income Fund and Decatur Total Return Fund A
Class, B Class and C Class Prospectus, Blue Chip Fund and Quantum Fund A
Clsss, B Class and C Class Prospectus and Blue Chip Fund and Quantum Fund
Institutional Class Prospectus, each dated February 24, 1997, are
incorporated into this filing by reference to the electronic filing of
those Prospectuses made pursuant to Rule 485(b) on February 21, 1997. The
Registrant's Decatur Income Fund and Decatur Total Return Fund
Institutional Class Prospectus dated February 24, 1997 is incorporated
into this filing by reference to the electronic filing of the Prospectus
made pursuant to Rule 497(c) on February 24, 1997. The Supplement dated
May 23, 1997 to each Fund's A Class, B Class and C Class Prospectus is
incorporated into this filing by reference to the electronic filing of
that Supplement made pursuant to Rule 497(e) on May 23, 1997.
*** The Statement of Additional Information dated February 24, 1997 for each
Series is incorporated into this filing by reference to the electronic
filing of the Statement of Additional Information made pursuant to Rule
497(c) on February 27, 1997.
<PAGE> 3
CROSS-REFERENCE SHEET*
PART A**
<TABLE>
<CAPTION>
Location in
Item No. Description Prospectuses
- -------- ----------- ------------
Decatur Income Fund
Decatur Total Return
Fund
A Classes/
B Classes/ Institutional
C Classes Classes
<S> <C> <C> <C>
1 Cover Page................................... Cover Cover
2 Synopsis..................................... Synopsis; Summary Synopsis; Summary
of Expenses of Expenses
3 Condensed Financial Information.............. Financial Financial
Highlights Highlights
4 General Description of Registrant ........... Investment Objectives Investment
and Strategies; Objectives and
Shares Strategies; Shares
5 Management of the Fund ...................... Management of Management of
the Funds the Funds
6 Capital Stock and Other Securities .......... The Delaware Difference; Dividends and
Dividends and Distributions;
Distributions; Taxes; Taxes; Shares
Shares
7 Purchase of Securities Being Offered......... Cover; How to Cover; How to Buy
Buy Shares; Calculation Shares; Calculation
of Offering Price of Net Asset Value
and Net Asset Value Per Share;
Per Share; Management Management of
of the Funds the Funds
8 Redemption or Repurchase..................... How to Buy Shares; How to Buy Shares;
Redemption Redemption
and Exchange and Exchange
9 Legal Proceedings............................ None None
</TABLE>
* This filing relates to Registrant's Decatur Income Fund A Class, Decatur
Income Fund B Class, Decatur Income Fund C Class and Decatur Income Fund
Institutional Class of Decatur Income Fund, Decatur Total Return Fund A
Class, Decatur Total Return Fund B Class, Decatur Total Return Fund C
Class and Decatur Total Return Fund Institutional Class of Decatur Total
Return Fund, Blue Chip Fund A Class, Blue Chip Fund B Class, Blue Chip
Fund C Class and Blue Chip Fund Institutional Class of Blue Chip Fund and
Quantum Fund A Class, Quantum Fund B Class, Quantum Fund C Class and
Quantum Fund Institutional Class of Quantum Fund. Class A Shares, Class B
Shares and Class C Shares of Decatur Income Fund and Decatur Total Return
Fund are combined in one Prospectus, and the Institutional Class of such
Funds is
<PAGE> 4
combined in one Prospectus. Class A Shares, Class B Shares and Class C
Shares of Blue Chip Fund and Quantum Fund are combined in one Prospectus,
and the Institutional Class of such Funds is combined in one Prospectus.
The four Funds (and 16 classes) have a common Statement of Additional
Information and Part C.
** The Registrant's Decatur Income Fund A Class, Decatur Income Fund B Class,
Decatur Income Fund C Class and Decatur Total Return Fund A Class, Decatur
Total Return Fund B Class, Decatur Total Return Fund C Class Prospectus
and Blue Chip Fund A Class, Blue Chip Fund B Class, Blue Chip Fund C Class
and Quantum Fund A Class, Quantum Fund B Class, Quantum Fund C Class
Prospectus, each dated February 24, 1997, are incorporated into this
filing by reference to the electronic filing of these Prospectuses made
pursuant to Rule 485(b) on February 21, 1997. The Registrant's Decatur
Income Fund Institutional Class and Decatur Total Return Fund
Institutional Class Prospectus dated February 24, 1997 is incorporated
into this filing by reference to the electronic filing of the Prospectus
made pursuant to Rule 497(c) on February 24, 1997.
<PAGE> 5
CROSS-REFERENCE SHEET
PART A*
(continued)
<TABLE>
<CAPTION>
Location in
Item No. Description Prospectuses
- -------- ----------- ------------
Blue Chip Fund
Quantum Fund
A Classes/
B Classes/ Institutional
C Classes Classes
<S> <C> <C> <C>
1 Cover Page................................... Cover Cover
2 Synopsis..................................... Synopsis; Summary Synopsis; Summary
of Expenses of Expenses
3 Condensed Financial Information.............. Financial Financial
Highlights Highlights
4 General Description of Registrant ........... Investment Objectives Investment
and Strategies; Objectives and
Shares Strategies; Shares
5 Management of the Fund ...................... Management of Management of
the Funds the Funds
6 Capital Stock and Other Securities .......... The Delaware Difference; Dividends and
Dividends and Distributions;
Distributions; Taxes; Taxes; Shares
Shares
7 Purchase of Securities Being Offered......... Cover; How to Cover; How to Buy
Buy Shares; Calculation Shares; Calculation
of Offering Price of Net Asset Value
and Net Asset Value Per Share;
Per Share; Management Management of
of the Funds the Funds
8 Redemption or Repurchase..................... How to Buy Shares; How to Buy Shares;
Redemption Redemption
and Exchange and Exchange
9 Legal Proceedings............................ None None
* The Registrant's Blue Chip Fund A Class, Blue Chip Fund B Class and Blue
Chip Fund C Class and Quantum Fund A Class, Quantum Fund B Class and
Quantum Fund C Class Prospectus and Blue Chip Fund Institutional Class and
Quantum Fund Institutional Class Prospectus, each dated February 24, 1997,
are incorporated into this filing by reference to the electronic filing of
those Prospectuses made pursuant to Rule 485(b) on February 21, 1997.
</TABLE>
<PAGE> 6
CROSS REFERENCE SHEET
PART B*
<TABLE>
<CAPTION>
Location in Statement
Item No. Description of Additional Information
- -------- ----------- -------------------------
<S> <C> <C>
10 Cover Page........................................... Cover
11 Table of Contents.................................... Table of Contents
12 General Information and History...................... General Information
13 Investment Objectives and Policies................... Investment Policies and
Portfolio Techniques
14 Management of the Registrant......................... Officers and Directors
15 Control Persons and Principal Holders of
Securities........................................... Officers and Directors
16 Investment Advisory and Other Services............... Plans Under Rule 12b-1
for the Fund Classes (under
Purchasing Shares); Investment
Management Agreements and Sub-
Advisory Agreements; Officers and
Directors; General Information;
Financial Statements
17 Brokerage Allocation................................. Trading Practices
and Brokerage
18 Capital Stock and Other Securities................... Capitalization and
Noncumulative Voting
(under General Information)
19 Purchase, Redemption and Pricing of Securities
Being Offered........................................ Purchasing Shares; Determining
Offering Price and Net Asset
Value; Redemption and
Repurchase; Exchange Privilege
</TABLE>
<PAGE> 7
CROSS REFERENCE SHEET
PART B*
(Continued)
<TABLE>
<CAPTION>
Location in Statement
Item No. Description of Additional Information
- -------- ----------- ---------------------------
<S> <C> <C>
20 Tax Status........................................... Accounting and Tax Issues;
Distributions and Taxes
21 Underwriters ........................................ Purchasing Shares
22 Calculation of Performance Data...................... Performance Information
23 Financial Statements................................. Financial Statements
</TABLE>
* The Statement of Additional Information dated February 24, 1997 for the
Decatur Income, Decatur Total Return, Blue Chip and Quantum Funds is
incorporated into this filing by reference to the electronic filing of the
Statement of Additional Information made pursuant to Rule 497(c) on February 27,
1997.
<PAGE> 8
PART C
<TABLE>
<CAPTION>
Location in
Part C
-----------
<S> <C> <C>
24 Financial Statements and Exhibits.................... Item 24
25 Persons Controlled by or under Common
Control with Registrant........................... Item 25
26 Number of Holders of Securities...................... Item 26
27 Indemnification...................................... Item 27
28 Business and Other Connections of
Investment Adviser................................ Item 28
29 Principal Underwriters............................... Item 29
30 Location of Accounts and Records..................... Item 30
31 Management Services.................................. Item 31
32 Undertakings......................................... Item 32
</TABLE>
<PAGE> 9
The Registrant's Decatur Income Fund and Decatur Total Return Fund A Class, B
Class and C Class Prospectus, Blue Chip Fund and Quantum Fund A Class, B Class
and C Class Prospectus and Blue Chip Fund and Quantum Fund Institutional Class
Prospectus, each dated February 24, 1997, are incorporated into this filing by
reference to the electronic filing of those Prospectuses made pursuant to Rule
485(b) on February 21, 1997. The Registrant's Decatur Income Fund and Decatur
Total Return Fund Institutional Class Prospectus dated February 24, 1997 is
incorporated into this filing by reference to the electronic filing of the
Prospectus made pursuant to Rule 497(c) on February 24, 1997. The Supplement
dated May 23, 1997 to each Fund's A Class, B Class and C Class Prospectus is
incorporated into this filing by reference to the electronic filing of that
Supplement made pursuant to Rule 497(e) on May 23, 1997. The Statement of
Additional Information dated February 24, 1997 for each Fund is incorporated
into this filing by reference to the electronic filing of the Statement of
Additional Information made pursuant to Rule 497(c) on February 27, 1997.
<PAGE> 10
AUGUST 22, 1997
DECATUR INCOME FUND
DECATUR TOTAL RETURN FUND
A CLASS/B CLASS/C CLASS
SUPPLEMENT TO PROSPECTUS DATED FEBRUARY 24, 1997
The following supplements the section of the Prospectus entitled Buying
Class A Shares at Net Asset Value under Classes of Shares.
Investors in Delaware-Voyageur Unit Investment Trusts may reinvest monthly
dividend checks and/or repayment of invested capital into Class A Shares of any
of the funds in the Delaware Group at net asset value.
The following supplements the Prospectus.
Financial Highlights
The following unaudited financial highlights for the Decatur Income Fund
and Decatur Total Return Fund (the "Funds") are derived from the unaudited
financial statements of the Funds for the period December 1, 1996 through May
31, 1997. The data should be read in conjunction with the unaudited financial
statements and related notes for the six months ended May 31, 1997, all of which
are incorporated by reference into Delaware Group Equity Funds II, Inc.'s
Statement of Additional Information by supplement dated August 22, 1997.
<PAGE> 11
<TABLE>
<CAPTION>
Decatur Income Fund Decatur Income Fund Decatur Income Fund
A Class B Class C Class
--------------- --------------- ---------------
Unaudited Unaudited Unaudited
Six Months Six Months Six Months
ended ended ended
5/31/97(1) 5/31/97(1) 5/31/97(1)
--------------- --------------- ---------------
<S> <C> <C> <C>
Net Asset Value, Beginning of Period ............... $ 21.3200 $ 21.2600 $ 21.3300
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income .............................. 0.3100 0.2500 0.2300
Net Gains (Losses) on Securities
(both realized and unrealized) ................. 1.8800 1.8500 1.8800
--------------- --------------- ---------------
Total From Investment Operations ............ 2.1900 2.1000 2.1100
--------------- --------------- ---------------
LESS DISTRIBUTIONS
Dividends from Net Investment Income ............... (0.3000) (0.2300) (0.2300)
Distributions from Capital Gains.................... (2.6800) (2.6800) (2.6800)
--------------- --------------- ---------------
Total Distributions.......................... (2.9800) (2.9100) (2.9100)
--------------- --------------- ---------------
Net Asset Value, End of Period ..................... $ 20.5300 $ 20.4500 $ 20.5300
=============== =============== ===============
TOTAL RETURN ....................................... 11.94%(2) 11.45%(2) 11.46%(2)
RATIOS/SUPPLEMENTAL DATA
Net Assets, End of Period (000's omitted) .......... $ 1,743,703 $ 90,784 $ 9,886
Ratio of Expenses to Average Daily Net Assets ...... 0.88% 1.69% 1.69%
Ratio of Net Investment Income to Average
Daily Net Assets ............................... 3.19% 2.38% 2.38%
Portfolio Turnover Rate ............................ 86% 86% 86%
Average Commission Rate Paid (3) .................... $ 0.0600 $ 0.0600 $ 0.0600
</TABLE>
- -----------
(1) Ratios have been annualized but total return has not been annualized.
(2) Does not reflect the maximum sales charge of 4.75%, nor the 1% CDSC that
would apply in the event of certain redemptions within 12 months of
purchase for Class A Shares. Does not reflect contingent deferred sales
charge which varies from 1%-4% depending upon the holding period for Class
B Shares and 1% for Class C Shares for 12 months from the date of
purchase.
(3) Computed by dividing the total amount of commissions paid by the total
number of shares purchased and sold during the period for which there was
a commission charged.
<PAGE> 12
<TABLE>
<CAPTION>
Decatur Total Return Decatur Total Return Decatur Total Return
Fund Fund Fund
A Class B Class C Class
--------------- --------------- ---------------
Unaudited Unaudited Unaudited
Six Months Six Months Six Months
ended ended ended
5/31/97(1) 5/31/97(1) 5/31/97(1)
--------------- --------------- ---------------
<S> <C> <C> <C>
Net Asset Value, Beginning of Period ........ $ 17.5200 $ 17.4600 $ 17.4300
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income ....................... 0.1500 0.1000 0.1000
Net Gains (Losses) on Securities
(both realized and unrealized) .......... 1.7700 1.7700 1.7600
--------------- --------------- ---------------
Total From Investment Operations ..... 1.9200 1.8700 1.8600
--------------- --------------- ---------------
LESS DISTRIBUTIONS
Dividends from Net Investment Income ........ (0.1900) (0.1000) (0.1000)
Distributions from Capital Gains ............ (1.8500) (1.8500) (1.8500)
--------------- --------------- ---------------
Total Distributions .................. (2.0400) (1.9500) (1.9500)
--------------- --------------- ---------------
Net Asset Value, End of Period .............. $ 17.4000 $ 17.3800 $ 17.3400
=============== =============== ===============
TOTAL RETURN ................................ 12.55%(2) 12.17%(2) 12.13%(2)
RATIOS/SUPPLEMENTAL DATA
Net Assets, End of Period (000's omitted) ... $ 757,703 $ 88,041 $ 14,999
Ratio of Expenses to Average Daily Net Assets 1.12% 1.82% 1.82%
Ratio of Net Investment Income to Average
Daily Net Assets ........................ 1.87% 1.17% 1.17%
Portfolio Turnover Rate ..................... 64% 64% 64%
Average Commission Rate Paid (3) ............ $ 0.0600 $ 0.0600 $ 0.0600
</TABLE>
- ----------
(1) Ratios have been annualized but total return has not been annualized.
(2) Does not reflect the maximum sales charge of 4.75%, nor the 1% CDSC that
would apply in the event of certain redemptions within 12 months of
purchase for Class A Shares. Does not reflect contingent deferred sales
charge which varies from 1%-4% depending upon the holding period for Class
B Shares and 1% for Class C Shares for 12 months from the date of
purchase.
(3) Computed by dividing the total amount of commissions paid by the total
number of shares purchased and sold during the period for which there was
a commission charged.
<PAGE> 13
AUGUST 22, 1997
BLUE CHIP FUND
QUANTUM FUND
A CLASS/B CLASS/C CLASS
SUPPLEMENT TO PROSPECTUS DATED FEBRUARY 24, 1997
The following supplements the section of the Prospectus entitled Buying
Class A Shares at Net Asset Value under Classes of Shares.
Investors in Delaware-Voyageur Unit Investment Trusts may reinvest monthly
dividend checks and/or repayment of invested capital into Class A Shares of any
of the funds in the Delaware Group at net asset value.
The following supplements the Prospectus.
FINANCIAL HIGHLIGHTS
The following unaudited financial highlights for Blue Chip Fund and
Quantum Fund (the "Funds") are derived from the unaudited financial statements
of the Funds for the period February 25, 1997 (date of initial public offering)
through July 31, 1997. The data should be read in conjunction with the unaudited
financial statements and related notes which are included with Delaware Group
Equity Funds II, Inc.'s Statement of Additional Information by supplement dated
August 22, 1997.
<PAGE> 14
<TABLE>
<CAPTION>
Blue Chip Fund Blue Chip Fund Blue Chip Fund
A Class B Class C Class
-------------- -------------- --------------
Unaudited Unaudited Unaudited
2/25/97(1) 2/25/97(1) 2/25/97(1)
through through through
7/31/97 7/31/97 7/31/97
---------------- -------------- --------------
<S> <C> <C> <C>
Net Asset Value, Beginning of Period ..................... $ 8.5000 $ 8.5000 $ 8.5000
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income (2) ................................ 0.0343 0.0084 0.0047
Net Gains (Losses) on Securities
(both realized and unrealized) ....................... 1.1957 1.2016 1.2053
---------------- -------------- --------------
Total From Investment Operations ......................... 1.2300 1.2100 1.2100
---------------- -------------- --------------
LESS DISTRIBUTIONS
Dividends from Net Investment Income ..................... none none none
Distributions from Capital Gains ......................... none none none
Total Distributions ............................... none none none
Net Asset Value, End of Period ........................... $ 9.7300 $ 9.7100 $ 9.7100
================ ============== ==============
TOTAL RETURN ............................................. 14.47%(3)(4) 14.24%(3)(4) 14.24%(3)(4)
RATIOS/SUPPLEMENTAL DATA
Net Assets, End of Period (000's omitted) ................ $ 1,713 $ 775 $ 108
Ratio of Expenses to Average Daily Net Assets ............ 1.50% 2.20% 2.20%
Ratio of Expenses to Average Daily Net Assets
Prior to Expense Limitation .......................... 1.94% 2.64% 2.64%
Ratio of Net Investment Income to Average
Daily Net Assets ..................................... 0.99% 0.29% 0.29%
Ratio of Net Investment Income to Average Daily Net Assets
Prior to Expense Limitation .......................... 0.55% (0.15%) (0.15%)
Portfolio Turnover Rate .................................. 25% 25% 25%
Average Commission Rate Paid (5) ......................... $ 0.0365 $ 0.0365 $ 0.0365
</TABLE>
- ----------
(1) Date of initial public offering; ratios have been annualized but total
return has not been annualized. Total return for this short of a time
period may not be representative of longer term results.
(2) The average shares outstanding method has been applied for per share
information.
(3) Does not reflect the maximum sales charge of 4.75%, nor
the 1% CDSC that would apply in the event of certain redemptions within 12
months of purchase for Class A Shares. Does not reflect contingent
deferred sales charge which varies from 1%-4% depending upon the holding
period for Class B Shares and 1% for Class C Shares for 12 months from the
date of purchase.
(4) Total return reflects the expense limitations referenced under Summary of
Expenses in the Prospectus. Such expense limitations have been extended
through January 31, 1998.
(5) Computed by dividing the total amount of commissions paid by the total
number of shares purchased and sold during the period for which there was
a commission charged.
<PAGE> 15
<TABLE>
<CAPTION>
Quantum Fund Quantum Fund Quantum Fund
A Class B Class C Class
------------ ------------ ------------
Unaudited Unaudited Unaudited
2/25/97(1) 2/25/97(1) 2/25/97(1)
through through through
7/31/97 7/31/97 7/31/97
------------ ------------ ------------
<S> <C> <C> <C>
Net Asset Value, Beginning of Period ..................... $ 8.5000 $ 8.5000 $ 8.5000
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income (2) ................................ 0.0198 0.0148 0.0165
Net Gains (Losses) on Securities
(both realized and unrealized) ....................... 1.3802 1.3552 1.3535
----------- ----------- ---------
Total From Investment Operations .................. 1.4000 1.3700 1.3700
----------- ----------- ---------
LESS DISTRIBUTIONS
Dividends from Net Investment Income ..................... none none none
Distributions from Capital Gains ......................... none none none
Total Distributions ............................... none none none
----------- ----------- ---------
Net Asset Value, End of Period ........................... $ 9.9000 $ 9.8700 $ 9.8700
=========== =========== =========
TOTAL RETURN ............................................. 16.47%(3)(4) 16.12%(3)(4) 16.12%(3)(4)
RATIOS/SUPPLEMENTAL DATA
Net Assets, End of Period (000's omitted) ................ $ 4,508 $ 3,862 $ 786
Ratio of Expenses to Average Daily Net Assets ............ 1.50% 2.20% 2.20%
Ratio of Expenses to Average Daily Net Assets
Prior to Expense Limitation .......................... 1.93% 2.63% 2.63%
Ratio of Net Investment Income to Average
Daily Net Assets ..................................... 0.29% (0.23%) (0.23%)
Ratio of Net Investment Income to Average Daily Net Assets
Prior to Expense Limitation .......................... 0.04% (0.66%) (0.66%)
Portfolio Turnover Rate .................................. 23% 23% 23%
Average Commission Rate Paid (5) ......................... $ 0.0346 $ 0.0346 $ 0.0346
</TABLE>
- ----------
(1) Date of initial public offering; ratios have been annualized but total
return has not been annualized. Total return for this short of a time
period may not be representative of longer term results.
(2) The average shares outstanding method has been applied for per share
information.
(3) Does not reflect the maximum sales charge of 4.75%, nor the 1% CDSC that
would apply in the event of certain redemptions within 12 months of
purchase for Class A Shares. Does not reflect contingent deferred sales
charge which varies from 1%-4% depending upon the holding period for Class
B Shares and 1% for Class C Shares for 12 months from the date of
purchase.
(4) Total return reflects the expense limitations referenced under Summary of
Expenses in the Prospectus. Such expense limitations have been extended
through January 31, 1998.
(5) Computed by dividing the total amount of commissions paid by the total
number of shares purchased and sold during the period for which there was
was a commission charged.
<PAGE> 16
AUGUST 22, 1997
DECATUR INCOME FUND
DECATUR TOTAL RETURN FUND
INSTITUTIONAL CLASS
SUPPLEMENT TO PROSPECTUS DATED FEBRUARY 24, 1997
The following supplements the Prospectus.
FINANCIAL HIGHLIGHTS
The following unaudited financial highlights for the Decatur Income Fund
and Decatur Total Return Fund (the "Funds") are derived from the unaudited
financial statements of the Funds for the period December 1, 1996 through May
31, 1997. The data should be read in conjunction with the unaudited financial
statements and related notes for the six months ended May 31, 1997, all of which
are incorporated by reference into Delaware Group Equity Funds II, Inc.'s
Statement of Additional Information by supplement date August 22, 1997.
<PAGE> 17
<TABLE>
<CAPTION>
Decatur Income Decatur Total Return
Fund Fund
Institutional Institutional
Class Class
-------------- --------------------
Unaudited Unaudited
Six Months Six Months
ended ended
5/31/97(1) 5/31/97(1)
------------- -------------
<S> <C> <C>
Net Asset Value, Beginning of Period ........ $ 21.3100 $ 17.5700
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income ....................... 0.3200 0.1800
Net Gains (Losses) on Securities
(both realized and unrealized) .......... 1.8800 1.7700
------------- -------------
Total From Investment Operations ..... 2.2000 1.9500
------------- -------------
LESS DISTRIBUTIONS
Dividends from Net Investment Income ........ (0.3200) (0.2500)
Distributions from Capital Gains ............ (2.6800) (1.8500)
------------- -------------
Total Distributions .................. (3.0000) (2.1000)
------------- -------------
Net Asset Value, End of Period .............. $ 20.5100 $ 17.4200
============= =============
TOTAL RETURN ................................ 12.01% 12.68%
RATIOS/SUPPLEMENTAL DATA
Net Assets, End of Period (000's omitted) ... $ 270,877 $ 58,221
Ratio of Expenses to Average Daily Net Assets 0.69% 0.82%
Ratio of Net Investment Income to Average
Daily Net Assets ........................ 3.38% 2.17%
Portfolio Turnover Rate ..................... 86% 64%
Average Commission Rate Paid (2) ............ $ 0.0600 $ 0.0600
</TABLE>
- -----------
(1) Ratios have been annualized but total return has not been annualized.
(2) Computed by dividing the total amount of commissions paid by the total
number of shares purchased and sold during the period for which there was
a commission charged.
<PAGE> 18
AUGUST 22, 1997
BLUE CHIP FUND
QUANTUM FUND
INSTITUTIONAL CLASS
SUPPLEMENT TO PROSPECTUS DATED FEBRUARY 24, 1997
The following supplements the Prospectus.
FINANCIAL HIGHLIGHTS
The following unaudited financial highlights for the Blue Chip Fund and
Quantum Fund (the "Funds") are derived from the unaudited financial statements
of the Funds for the period February 25, 1997 (date of initial public offering)
through June 31, 1997. The data should be read in conjunction with the unaudited
financial statements and related notes which are included with Delaware Group
Equity Funds II, Inc.'s Statement of Additional Information by supplement dated
August 22, 1997.
<PAGE> 19
<TABLE>
<CAPTION>
Blue Chip Quantum
Fund Fund
Institutional Institutional
Class Class
----------- -----------
Unaudited Unaudited
2/25/97(1) 2/25/97(1)
through through
7/31/97 7/31/97
----------- -----------
<S> <C> <C>
Net Asset Value, Beginning of Period ..................... $ 8.5000 $ 8.5000
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income(2) .................................... 0.0456 0.0237
Net Gains (Losses) on Securities
(both realized and unrealized) ....................... 1.2044 1.3863
----------- -----------
Total From Investment Operations .................. 1.2500 1.4100
----------- -----------
LESS DISTRIBUTIONS
Dividends from Net Investment Income ..................... none none
Distributions from Capital Gains ......................... none none
Total Distributions ............................... none none
Net Asset Value, End of Period ........................... $ 9.7500 $ 9.9100
=========== ===========
Total Return ............................................. 14.71% 16.59%
RATIOS/SUPPLEMENTAL DATA
Net Assets, End of Period (000's omitted) ................ $ 1,799 $ 1,836
Ratio of Expenses to Average Daily Net Assets ............ 1.20% 1.20%
Ratio of Expenses to Average Daily Net Assets
Prior to Expense Limitation .......................... 1.64% 1.63%
Ratio of Net Investment Income to Average
Daily Net Assets ..................................... 1.29% 0.77%
Ratio of Net Investment Income to Average Daily Net Assets
Prior to Expense Limitation .......................... 0.85% 0.34%
Portfolio Turnover Rate .................................. 25% 23%
Average Commission Rate Paid(3) ............................. $ 0.0365 $ 0.0346
</TABLE>
- ---------------
(1) Date of initial public offering; ratios have been annualized but total
return has not been annualized. Total return for this short of a time
period may not be representative of longer term results.
(2) The average shares outstanding method has been applied for per share
information.
(3) Computed by dividing the total amount of commissions paid by the total
number of shares purchased and sold during the period for which there was
a commission charged.
<PAGE> 20
AUGUST 22, 1997
DELAWARE GROUP EQUITY FUNDS II, INC.
SUPPLEMENT TO STATEMENT OF ADDITIONAL INFORMATION
DATED FEBRUARY 24, 1997
The following supplements the information in the section of the Statement
of Additional Information entitled Performance Information.
The 30-day yield of each Class of Decatur Income Fund and Decatur Total
Return Fund as of May 31, 1997 were as follows:
<TABLE>
<CAPTION>
DECATUR DECATUR TOTAL
INCOME FUND RETURN FUND
<S> <C> <C>
Class A Shares 2.77% 1.55%
Class B Shares 2.17% 0.93%
Class C Shares 2.16% 0.94%
Institutional Class shares 3.17% 1.93%
</TABLE>
The performance of Decatur Income Fund Class A Shares and Institutional
Class shares, as shown below, is the average annual total return quotation
through May 31, 1997.
AVERAGE ANNUAL TOTAL RETURN
DECATUR INCOME FUND
<TABLE>
<CAPTION>
Class A
Shares(1)(2)(3) Class A Shares Institutional
(at Offer) (at NAV)(3) Class(4)
<S> <C> <C> <C>
1 year ended 5/31/97 19.97% 25.94% 26.15%
3 years ended 5/31/97 19.59% 21.55% 21.71%
5 years ended 5/31/97 15.69% 16.82% 16.92%
10 years ended 5/31/97 11.33% 11.87% 11.92%
15 years ended 5/31/97 15.78% 16.16% 16.19%
3/18/57(5) through 5/31/97 12.34% 12.48% 12.49%
</TABLE>
- ---------------
(1) On May 2, 1994, the maximum front-end sales charge was reduced from 8.50%
to 5.75%.
(2) Effective November 29, 1995, the maximum front-end sales charge was
reduced from 5.75% to 4.75%. The above performance numbers are calculated
using 4.75% as the applicable sales charge for all time periods, and are
more favorable than they would have been had they been calculated using
the former front-end sales charges.
(3) Performance figures reflect the applicable Rule 12b-1 distribution
expenses that apply on and after May 2, 1994.
(4) Date of initial public offering of Decatur Income Fund Institutional Class
was January 13, 1994.
(5) Date of initial public offering of Decatur Income Fund A Class.
<PAGE> 21
The performance of Decatur Income Fund Class B Shares and Class C Shares,
as shown below, is the average annual total return quotation through May 31,
1997.
AVERAGE ANNUAL TOTAL RETURN
DECATUR INCOME FUND
<TABLE>
<CAPTION>
Class B Shares Class B Shares Class C Shares Class C Shares
(Including (Excluding (Including (Excluding
Deferred Deferred Deferred Deferred
Sales Charge) Sales Charge) Sales Charge) Sales Charge)
<S> <C> <C> <C> <C> <C>
1 year ended 1 year ended
5/31/97 20.92% 24.92% 5/31/97 23.88% 24.88%
Period Period
9/6/94(1) 11/29/95(2)
through through
5/31/97 20.41% 21.20% 5/31/97 23.55% 23.55%
</TABLE>
(1) Date of initial public offering of Decatur Income Fund B Class.
(2) Date of initial public offering of Decatur Income Fund C Class.
The performance of Decatur Total Return Fund Class A Shares and
Institutional Class shares, as shown below, is the annual average total return
quotation through May 31, 1997.
AVERAGE ANNUAL TOTAL RETURN
DECATUR TOTAL RETURN FUND
<TABLE>
<CAPTION>
Class A Shares Class A Shares Institutional
(at Offer)(1) (at NAV) Class(2)
<S> <C> <C> <C>
1 year ended 5/31/97 21.39% 27.45% 27.79%
3 years ended 5/31/97 20.95% 22.94% 23.31%
5 years ended 5/31/97 16.33% 17.47% 17.73%
10 years ended 5/31/97 12.47% 13.03% 13.15%
Period 8/27/86(3)
through 5/31/97 13.63% 14.15% 14.27%
</TABLE>
- ---------------
(1) Effective November 29, 1995, the maximum front-end sales charge was
reduced from 5.75% to 4.75%. The above performance numbers are calculated
using 4.75% as the applicable sales charge for all time periods, and are
more favorable than they would have been had they been calculated using
the former front-end sales charges.
(2) Date of initial public offering of Decatur Total Return Fund Institutional
Class was July 26, 1993.
(3) Date of initial public offering of Decatur Total Return Fund A Class.
<PAGE> 22
The performance of Decatur Total Return Fund Class B Shares and Class C
Shares, as shown below, is the average annual total return quotation through May
31, 1997.
AVERAGE ANNUAL TOTAL RETURN
DECATUR TOTAL RETURN FUND
<TABLE>
<CAPTION>
Class B Shares Class B Shares Class C Shares Class C Shares
(Including (Excluding (Including (Excluding
Deferred Deferred Deferred Deferred
Sales Charge) Sales Charge) Sales Charge) Sales Charge)
<S> <C> <C> <C> <C> <C>
1 year ended 1 year ended
5/31/97 22.51% 26.51% 5/31/97 25.49% 26.49%
Period Period
9/6/94(1) 11/29/95(2)
through through
5/31/97 20.41% 21.20% 5/31/97 24.50% 24.50%
</TABLE>
- ---------------
(1) Date of initial public offering of Decatur Total Return Fund B Class.
(2) Date of initial public offering of Decatur Total Return Fund C Class.
<PAGE> 23
The Performance of Decatur Income Fund Class A Shares and Institutional
Class shares, as shown below, is the cumulative total return quotation through
May 31, 1997.
CUMULATIVE TOTAL RETURN
DECATUR INCOME FUND
<TABLE>
<CAPTION>
Class A
Shares(1)(2)(3) Institutional S&P 500 Dow Jones
(at Offer) Class(4) Index(5) Industrial(5)
<S> <C> <C> <C> <C>
3 months ended 5/31/97 0.56% 5.65% 7.83% 7.12%
6 months ended 5/31/97 6.64%(6) 12.01% 13.18% 13.54%
9 months ended 5/31/97 20.02% 26.07% 32.11% 32.58%
1 year ended 5/31/97 19.97% 26.15% 29.44% 32.72%
3 years ended 5/31/97 71.04% 80.31% 99.72% 109.88%
5 years ended 5/31/97 107.26% 118.52% 132.34% 146.05%
10 years ended 5/31/97 192.42% 208.35% 293.99% 337.02%
15 years ended 5/31/97 800.17% 849.29% 1163.91% 1435.75%
3/18/57(7) through 5/31/97 10,664.95% 11,249.51% N/A N/A
</TABLE>
- ---------------
(1) On May 2, 1994, the maximum front-end sales charge was reduced from 8.50%
to 5.75%.
(2) Effective November 29, 1995, the maximum front-end sales charge was
reduced to 4.75% from 5.75%. The above performance figures are calculated
using 4.75% as the applicable sales charge for all periods, and are more
favorable than they would have been had they been calculated using the
former sales charges.
(3) Performance figures for periods after May 1, 1994 reflect applicable Rule
12b-1 distribution expenses. Future performance will be affected by such
expenses.
(4) Date of initial public offering of Decatur Income Fund Institutional Class
was January 13, 1994.
(5) Source: Lipper Analytical Services, Inc.
<PAGE> 24
(6) For the six months ended May 31, 1997, cumulative total return for Decatur
Income Fund A Class at net asset value was 11.94%.
(7) Date of initial public offering of Decatur Income Fund A Class.
The performance of Decatur Income Fund Class B Shares, as shown below, is
the cumulative total return quotation through May 31, 1997.
CUMULATIVE TOTAL RETURN
DECATUR INCOME FUND
<TABLE>
<CAPTION>
Class B Shares Class B Shares
(Including (Excluding
Deferred Deferred S&P 500 Dow Jones
Sales Charge) Sales Charge) Index(1) Industrial(1)
<S> <C> <C> <C> <C>
3 months ended 5/31/97 1.41% 5.41% 7.83% 7.12%
6 months ended 5/31/97 7.60% 11.45% 13.18% 13.54%
9 months ended 5/31/97 21.20% 25.20% 32.11% 32.58%
1 year ended 5/31/97 20.92% 24.92% 29.44% 32.74%
Period 9/6/94(2)
through 5/31/97 66.18% 69.18% 90.44% 100.15%
</TABLE>
- ---------------
(1) Source: Lipper Analytical Services, Inc.
(2) Date of initial public offering of Decatur Income Fund B Class.
<PAGE> 25
The performance of Decatur Income Fund Class C Shares, as shown below, is
the cumulative total return quotation through May 31, 1997.
CUMULATIVE TOTAL RETURN
DECATUR INCOME FUND
<TABLE>
<CAPTION>
Class C Shares Class C Shares
(Including (Excluding
Deferred Deferred S&P 500 Dow Jones
Sales Charge) Sales Charge) Index(1) Industrial(1)
<S> <C> <C> <C> <C>
3 months ended 5/31/97 4.39% 5.39% 7.83% 7.12%
6 months ended 5/31/97 10.50% 11.46% 13.18% 13.54%
9 months ended 5/31/97 24.23% 25.23% 32.11% 32.58%
1 year ended 5/31/97 23.88% 24.88% 29.44% 32.74%
Period 11/29/95(2)
through 5/31/97 37.50% 37.50% 44.69% 49.29%
</TABLE>
- ---------------
(1) Source: Lipper Analytical Services, Inc.
(2) Date of initial public offering of Decatur Income Fund C Class.
<PAGE> 26
The performance of Decatur Total Return Class A Shares and Institutional
Class shares, as shown below, is the cumulative total return quotation through
May 31, 1997.
CUMULATIVE TOTAL RETURN
DECATUR TOTAL RETURN FUND
<TABLE>
<CAPTION>
Class A Shares Institutional S&P 500 Dow Jones
(at Offer)(1) Class(2) Index(3) Industrial(3)
<S> <C> <C> <C> <C>
3 months ended 5/31/97 1.15% 6.24% 7.83% 7.12%
6 months ended 5/31/97 7.23%(4) 12.68% 13.18% 13.54%
9 months ended 5/31/97 21.80% 28.12% 32.11% 32.58%
1 year ended 5/31/97 21.39% 27.79% 29.44% 32.72%
3 years ended 5/31/97 76.96% 87.49% 99.72% 109.88%
5 years ended 5/31/97 113.01% 126.17% 132.34% 146.05%
10 years ended 5/31/97 223.96% 243.98% 293.99% 337.02%
Period 8/27/86(5)
through 5/31/97 295.58% 320.10% 362.88% 441.01%
</TABLE>
- ------------
(1) Effective November 29, 1995, the maximum front-end sales charge was
reduced to 4.75% from 5.75%. The above performance figures are calculated
using 4.75% as the applicable sales charge for all periods, and are more
favorable than they would have been had they been calculated using the
former sales charges.
(2) Date of initial public offering of Decatur Total Return Fund Institutional
Class was July 26, 1993.
(3) Source: Lipper Analytical Services, Inc.
(4) For the six months ended May 31, 1997, cumulative total return at net
asset value for Decatur Total Return Fund A Class was 12.55%.
(5) Date of initial public offering of Decatur Total Return Fund A Class.
<PAGE> 27
The performance of Decatur Total Return Fund Class B Shares, as shown
below, is the cumulative total return quotation through May 31, 1997.
CUMULATIVE TOTAL RETURN
DECATUR TOTAL RETURN FUND
<TABLE>
<CAPTION>
Class B Shares Class B Shares
(Including (Excluding
Deferred Deferred S&P 500 Dow Jones
Sales Charge) Sales Charge) Index(1) Industrial(1)
<S> <C> <C> <C> <C>
3 months ended 5/31/97 1.99% 5.99% 7.83% 7.12%
6 months ended 5/31/97 8.19% 12.17% 13.18% 13.54%
9 months ended 5/31/97 23.16% 27.16% 32.11% 32.58%
1 year ended 5/31/97 22.51% 26.51% 29.44% 32.72%
Period 9/6/94(2)
through 5/31/97 73.10% 76.10% 90.44% 100.15%
</TABLE>
- ------------
(1) Source: Lipper Analytical Services, Inc.
(2) Date of initial public offering of Decatur Total Return Fund B Class.
<PAGE> 28
The performance of Decatur Total Return Fund Class C Shares, as shown
below, is the cumulative total return quotation through May 31, 1997.
CUMULATIVE TOTAL RETURN
DECATUR TOTAL RETURN FUND
<TABLE>
<CAPTION>
Class C Shares Class C Shares
(Including (Excluding
Deferred Deferred S&P 500 Dow Jones
Sales Charge) Sales Charge) Index(1) Industrial(1)
<S> <C> <C> <C> <C>
3 months ended 5/31/97 4.94% 5.94% 7.83% 7.12%
6 months ended 5/31/97 11.14% 12.13% 13.18% 13.54%
9 months ended 5/31/97 26.14% 27.14% 32.11% 32.58%
1 year ended 5/31/97 25.49% 26.49% 29.44% 32.74%
Period 11/29/95(2)
through 5/31/97 39.09% 39.09% 44.69% 49.29%
</TABLE>
- ------------
(1) Source: Lipper Analytical Services, Inc.
(2) Date of initial public offering of Decatur Total Return Fund C Class.
The performance of Class A Shares and Institutional Class shares of the
Blue Chip Fund and Quantum Fund, as shown below, is the cumulative total return
quotation through July 31, 1997.
CUMULATIVE TOTAL RETURN(1)
<TABLE>
<CAPTION>
Blue Chip Quantum Blue Chip Fund Quantum Fund
Fund A Class Fund A Class Institutional Institutional
(at Offer) (at Offer) Class Class
<S> <C> <C> <C> <C>
3 months ended 7/31/97 12.36% 13.79% 18.04% 19.54%
Period 2/25/97(2) 9.08% 10.99% 14.71% 16.59%
through 7/31/97
</TABLE>
- ------------
(1) The Manager has elected voluntarily to waive that portion, if any, of the
annual management fees payable by each Fund and to pay certain expenses of
that Fund to the extent necessary to ensure that the Total Operating
Expenses of Class A Shares and Institutional Class shares of a Fund do not
exceed 1.50% and 1.20%, respectively, (exclusive of taxes, interest,
brokerage commissions and extraordinarily expenses, but, in the case of
Class A Shares, inclusive of applicable 12b-1 expenses) through January
31, 1998. In the absence of such waiver, performance would have been
affected negatively.
(2) Date of initial public offering; total return for this short of a time
period may not be representative of longer term results.
<PAGE> 29
The performance of Class B Shares of the Blue Chip Fund and Quantum Fund,
as shown below, is the cumulative total return quotation through July 31, 1997.
CUMULATIVE TOTAL RETURN(1)
<TABLE>
<CAPTION>
Blue Chip Blue Chip Quantum Quantum
Fund B Class Fund B Class Fund B Class Fund B Class
(Including (Excluding) (Including) (Excluding)
Deferred Deferred Deferred Deferred
Sales Charge) Sales Charge) Sales Charge) Sales Charge)
<S> <C> <C> <C> <C>
3 months ended 7/31/97 13.84% 17.84% 15.20% 19.20%
Period 2/25/97(2) 10.24% 14.24% 12.12% 16.12%
through 7/31/97
</TABLE>
- --------------
(1) The Manager has elected voluntarily to waive that portion, if any, of the
annual management fees payable by each Fund and to pay certain expenses of
that Fund to the extent necessary to ensure that the Total Operating
Expenses of Class B Shares of a Fund do not exceed 2.20% (exclusive of
taxes, interest, brokerage commissions and extraordinarily expenses, but
inclusive of applicable 12b-1 expenses) through January 31, 1998. In the
absence of such waiver, performance would have been affected negatively.
(2) Date of initial public offering; total return for this short of a time
period may not be representative of longer term results.
The performance of Class C Shares of the Blue Chip Fund and Quantum Fund,
as shown below, is the cumulative total return quotation through July 31, 1997.
CUMULATIVE TOTAL RETURN(1)
<TABLE>
<CAPTION>
Blue Chip Blue Chip Quantum Quantum
Fund C Class Fund C Class Fund C Class Fund C Class
(Including (Excluding) (Including) (Excluding)
Deferred Deferred Deferred Deferred
Sales Charge) Sales Charge) Sales Charge) Sales Charge)
<S> <C> <C> <C> <C>
3 months ended 7/31/97 16.70% 17.70% 18.20% 19.20%
Period 2/25/97(2) 13.24% 14.24% 15.12% 16.12%
through 7/31/97
</TABLE>
- --------------
(1) The Manager has elected voluntarily to waive that portion, if any, of the
annual management fees payable by each Fund and to pay certain expenses of
that Fund to the extent necessary to ensure that the Total Operating
Expenses of Class C Shares of a Fund do not exceed 2.20% ( exclusive of
taxes, interest, brokerage commissions and extraordinarily expenses, but
inclusive of applicable 12b-1 expenses) through January 31, 1998. In the
absence of such waiver, performance would have been affected negatively.
(2) Date of initial public offering; total return for this short of a time
period may not be representative of longer term results.
<PAGE> 30
The following provides updated information in the section of the Statement
of Additional Information entitled Officers and Directors.
As of July 31, 1997, the officers and directors of Delaware Group Equity
Fund II, Inc. owned less than 1% of the outstanding shares of the Decatur Income
Fund Class A Shares, Decatur Income Fund Class B Shares, Decatur Income Fund
Class C Shares, Decatur Income Fund Institutional Class shares, Decatur Total
Return Fund Class A Shares, Decatur Total Return Fund Class B Shares, Decatur
Total Return Fund Class C Shares, Decatur Total Return Fund Institutional Class
shares, Blue Chip Fund Class A Shares, Blue Chip Fund Class B Shares, Blue Chip
Fund Class C Shares, Blue Chip Fund Institutional Class shares, Quantum Fund
Class A Shares, Quantum Fund Class B Shares, Quantum Fund Class C Shares and
Quantum Fund Institutional Class shares.
Management believes the following accounts held 5% or more of the
outstanding shares of a Class as of July 31, 1997:
<TABLE>
<CAPTION>
Class Name and Address of Account Share Amount Percentage
- ----- --------------------------- ------------ ----------
<S> <C> <C> <C>
Decatur Income Fund MLPF&S for the sole benefit of 1,606,572 31.37%
A Class its customers
Attn: Fund Administration
4800 Deer Lake Drive East, 3rd Floor
Jacksonville FL 32246-6484
Life Insurance Company of 677,038 13.22%
North America
Attn: Brian Franke
P.O. Box 149138
Austin TX 78714-9138
Decatur Income Fund MLPF&S for the sole benefit 483,459 10.08%
B Class of its customers
Attn: Fund Administration
4800 Deer Lake Drive East, 3rd Floor
Jacksonville FL 32246-6484
Decatur Income Fund MLPF&S for the sole benefit 167,823 31.23%
C Class of its customers
Attn: Fund Administration
4800 Deer Lake Drive East, 3rd Floor
Jacksonville FL 32246-6484
Decatur Income Fund The Northern Trust Co. 3,018,863 23.04%
Institutional Class Cust. J Paul Getty Trust
401 Wilshire Blvd. Ste. 1000
Santa Monica CA 90401-1430
RS 401(k) Plan 2,652,752 20.25%
Price Waterhouse LLP Savings Plan
c/o DELPAC 16th floor
1818 Market St.
Philadelphia PA 19103-3638
Brigham Young University 1,615,973 12.33%
RL Ball & Associates
c/o Richard White
C-242 ASB
Provo UT 84602-1128
RS Day & Zimmerman 1,312,268 10.01%
Attn: Retirement Plans
1818 Market Street
Philadelphia PA 19103-3638
</TABLE>
<PAGE> 31
<TABLE>
<CAPTION>
Class Name and Address of Account Share Amount Percentage
- ----- --------------------------- ------------ ----------
<S> <C> <C> <C>
Decatur Income Fund Grace S. & W. Linton Nelson 974,330 7.43%
Institutional Class Foundation Incorporated
c/o Fred C. Aldridge Jr.
940 W. Valley Rd. Suite 1601
Wayne PA 19087-1832
Decatur Total Return MLPF&S for the sole benefit 1,066,692 28.04%
Fund A Class of its customers
Attn: Fund Administration
4800 Deer Lake Drive East, 3rd Floor
Jacksonville, FL 32246-6484
National City Bank 203,182 5.34%
FBO McKeesport Health Care Trust
P.O. Box 94777
Cleveland OH 44101-4777
Decatur Total Return MLPF&S for the sole benefit of 152,599 14.75%
Fund B Class its customers
Attn: Fund Administration
4800 Deer Lake Drive East, 3rd Floor
Jacksonville FL 32246-6484
Decatur Total Return MLPF&S for the sole benefit of 535,220 9.23%
Fund C Class its customers
Attn: Fund Administration
4800 Deer Lake Drive East, 3rd Floor
Jacksonville FL 32246-6484
Decatur Total Return First Trust NA 1,471,482 40.71%
Fund Institutional TRST Northern States Power
Class Employee Retirement Saving Plan
P.O. Box 64482
St. Paul MN 55164-0482
Federated Life Insurance Company 1,161,301 32.13%
Attn: Tom Koch
P.O. Box
Owatonna MN 55060-0328
Lincoln National Life Insurance Company 410,581.610 11.35%
Attn: Karen Gerke
1300 S. Clinton Street
Fort Wayne IN 46802-3506
Blue Chip Fund PaineWebber for the benefit of 26,575 15.17%
A Class PaineWebber CDN FBO
Eric S. Petersen
P.O. Box 1108
New York NY 10268-1108
Blue Chip Fund The Page Family Trust 6,674 8.72%
B Class 1452 Engracia Avenue
Torrance CA 90501-3201
Blue Chip Fund FBO Linda A. Benesh 2,424 21.79%
C Class 2602 Caldwell Mill Lane
Birmingham AL 35243-1714
</TABLE>
<PAGE> 32
<TABLE>
<CAPTION>
Class Name and Address of Account Share Amount Percentage
- ----- --------------------------- ------------ ----------
<S> <C> <C> <C>
Blue Chip Fund Lincoln Investment Management, Inc. 176,470 95.62%
Institutional Class Attn: Patricia Roller
200 E. Berry Street, Ste 3R04
Fort Wayne IN 46802-2706
Quantum Fund N/A N/A N/A
A Class
Quantum Fund MLPF&S for the sole benefit 25,847 6.69%
B Class of its customers
Attn: Fund Administration
4800 Deer Lake Drive East, 3rd Floor
Jacksonville FL 32246-6484
Quantum Fund MLPF&S for the sole benefit 18,448 24.96%
C Class of its customers
Attn: Fund Administration
4800 Deer Lake Drive East, 3rd Floor
Jacksonville FL 32246-6484
Advest Inc. 6,213 8.40%
90 State House Square
Hartford CT 06103-3702
John Henderson 4,987 6.74%
1238 Kainui Drive
Kailua HI 96734-1933
William B. Rudow & Miriam 4,054 5.48%
F. Rudow JT WROS
9 Reese Road
Asheville NC 28805-1426
Quantum Fund Lincoln Investment Management Inc. 174,470 95.28%
Institutional Class Attn: Patricia Roller
200 E. Berry Street, Ste 3R04
Fort Wayne IN 46802-2706
</TABLE>
<PAGE> 33
The following replaces the section of the Statement of Additional
Information entitled Financial Statements.
FINANCIAL STATEMENTS
Ernst & Young LLP serves as the independent auditors for Delaware Group
Equity Funds II, Inc., and in its capacity as such, audits the financial
statements of the Funds. Decatur Income Fund's and Decatur Total Return Fund's
Statements of Net Assets, Statements of Operations, Statements of Changes in
Net Assets and Notes to Financial Statements, as well as the report of Ernst &
Young LLP for the fiscal year ended November 30, 1996, are included in Delaware
Group Equity Funds II, Inc.- Decatur Income Fund's and Delaware Group Equity
Funds II, Inc.- Decatur Total Return Fund's Annual Report to shareholders. The
financial statements, the notes relating thereto and the report of Ernst &
Young LLP listed above are incorporated by reference from the Annual Report
into this Part B. Unaudited financial statements for the period ended May 31,
1997 for the Decatur Income Fund and Decatur Total Return Fund are incorporated
by reference from the Semi-Annual Reports into this Part B. In addition,
unaudited financial information for the period February 25, 1997 (date of
initial public offering) through July 31, 1997 for the Blue Chip Fund and
Quantum Fund follows.
<PAGE> 34
DELAWARE GROUP EQUITY FUNDS II, INC.
BLUE CHIP FUND
STATEMENT OF NET ASSETS
JULY 31, 1997
( UNAUDITED )
<TABLE>
<CAPTION>
NUMBER OF MARKET
SHARES VALUE
COMMON STOCK- 95.11%
AEROSPACE & DEFENCE- 2.29%
<S> <C> <C>
General Dynamics ......... 400 35,400
United Technologies ......... 770 65,113
-----------------
100,513
-----------------
AUTOMOBILE & AUTO PARTS- 3.74%
B.F. Goodrich ......... 455 20,560
Cooper Industries ......... 860 47,784
Ford Motor ......... 2,085 85,224
General Motors ......... 175 10,828
-----------------
164,396
-----------------
BANKING & FINANCE- 11.76%
Ahmanson (H.F.) & Co. ......... 400 21,275
Bank of Boston ......... 530 45,017
Bank of New York ......... 1,330 64,588
Bear Stearns ......... 1,350 55,097
Chase Manhattan ......... 690 78,358
Comdisco ......... 1,000 27,938
Comerica ......... 300 22,687
First Chicago NBD ......... 855 64,873
MBIA ......... 165 19,470
NationsBank ......... 745 53,035
Paine Webber Group ......... 400 16,000
Student Loan Marketing Association ......... 325 48,730
-----------------
517,068
-----------------
BUILDINGS & MATERIALS- 1.49%
Armstrong World Industries ......... 600 44,288
* USG ......... 450 21,150
-----------------
65,438
-----------------
CABLE, MEDIA, & PUBLISHING- 1.30%
Knight-Ridder ......... 85 4,223
New York Times ......... 550 27,638
Omnicom Group ......... 325 22,689
Reynolds & Reynolds Class A ......... 135 2,616
-----------------
57,166
-----------------
CHEMICALS- 2.34%
Avery Dennison ......... 395 17,429
Dow Chemical ......... 735 69,825
Lyondell Petrochemicals ......... 600 15,788
-----------------
103,042
-----------------
COMPUTERS & TECHNOLOGY- 7.25%
* American Power Conversion ......... 750 18,703
* Cadence Design Systems ......... 1,100 48,881
* Compaq Computer ......... 1,150 65,694
Deluxe ......... 180 5,996
Microsoft ......... 200 28,269
* Read-Rite ......... 1,000 25,844
* Sun Microsystems ......... 1,335 61,035
* Western Digital ......... 1,670 64,295
-----------------
318,717
-----------------
</TABLE>
<PAGE> 35
<TABLE>
<S> <C> <C>
CONSUMER PRODUCTS- 5.24%
Clorox ......... 380 53,058
General Electric ......... 1,520 106,685
Procter & Gamble ......... 465 70,738
-----------------
230,481
-----------------
ENERGY- 8.44%
Atlantic Richfield ......... 300 22,444
Exxon ......... 1,660 106,655
Occidental Petroleum ......... 2,200 55,137
* Oryx Energy ......... 780 19,256
Royal Dutch Petroleum ......... 730 40,834
Texaco ......... 485 56,290
USX-Marathon Group ......... 905 29,130
Unocal ......... 1,035 41,400
-----------------
371,146
-----------------
ENVIRONMENTAL SERVICES- 1.73%
Halliburton ......... 750 34,500
Honeywell ......... 555 41,452
-----------------
75,952
-----------------
FOOD, BEVERAGE, & TOBBACCO- 8.20%
* Boston Chicken ......... 1,200 15,638
Campbell Soup ......... 260 13,488
Coca Cola ......... 810 56,093
ConAgra ......... 400 28,125
Fortune Brands ......... 620 21,971
Gallagher Group Plc ......... 310 5,561
Heinz (H.J.) ......... 750 34,641
Hershey Foods ......... 475 26,244
Philip Morris ......... 2,310 104,239
RJR Nabisco Holdings ......... 1,315 43,148
Universal Foods ......... 300 11,400
-----------------
360,548
-----------------
HEALTHCARE & PHARMACEUTICALS- 8.78%
Abbott Laboratories ......... 135 8,834
American Home Products ......... 200 16,488
* Amgen ......... 950 55,842
Bristol-Myers Squibb ......... 1,210 94,909
Johnson & Johnson ......... 655 40,815
Lincare Holdings ......... 385 18,937
Merck & Company ......... 795 82,630
Schering-Plough ......... 1,240 67,657
-----------------
386,112
-----------------
INDUSTRIAL MACHINERY- 3.21%
Caterpillar ......... 1,050 58,800
Harris Corp Delaware ......... 300 26,063
Ingersoll-Rand ......... 825 56,152
-----------------
141,015
-----------------
INSURANCE- 7.06%
Allstate ......... 100 7,900
CIGNA ......... 265 52,868
Marsh & McLennan ......... 600 46,462
* Oxford Health Plans ......... 565 47,566
SunAmerica ......... 625 37,813
Torchmark ......... 440 35,035
Travelers Group ......... 1,150 82,728
-----------------
310,372
-----------------
LEISURE, LODGING & ENTERTAINMENT- 1.70%
</TABLE>
<PAGE> 36
<TABLE>
<S> <C> <C>
Callaway Golf ......... 1,300 45,500
HFS ......... 115 6,699
* King World Productions ......... 560 22,610
-----------------
74,809
-----------------
METALS & MINING- 1.61%
Phelps Dodge ......... 610 51,888
USX-U.S. Steel Group ......... 520 19,013
-----------------
70,901
-----------------
PAPER & FOREST PRODUCTS- .35%
Fort James ......... 375 0
James River - Virginia ......... 375 15,445
-----------------
15,445
-----------------
RETAIL- 4.75%
Gap ......... 550 24,441
Harcourt General ......... 75 3,534
Ross Stores ......... 850 26,881
* Safeway ......... 900 48,262
Sears,Roebuck ......... 550 34,822
TJX ......... 1,810 54,074
* Woolworth ......... 600 16,988
-----------------
209,002
-----------------
TELECOMMUNICATIONS- 8.30%
ADC Telecommunications ......... 500 20,172
Ameritech ......... 790 53,276
* Ascend Communications ......... 430 23,422
Bell Atlantic ......... 460 33,379
BellSouth ......... 715 33,873
GTE ......... 910 42,315
* PairGain Technologies ......... 655 14,062
SBC Communications ......... 972 57,530
* Tellabs ......... 975 58,348
U.S. West Communications Group ......... 780 28,519
-----------------
364,896
-----------------
TEXTILES, APPAREL & FURNITURE- 1.20%
Johnson Controls ......... 190 8,514
NIKE ......... 450 28,041
* Tommy Hilfiger ......... 365 16,265
-----------------
52,820
-----------------
TRANSPORTATION & SHIPPING- 2.26%
* AMR ......... 245 26,353
Brunswick ......... 680 21,930
Tidewater ......... 405 20,453
* UAL ......... 360 29,543
-----------------
98,279
-----------------
UTILITIES- 2.13%
Baltimore Gas & Electric ......... 185 5,145
Consolidated Edison of NY ......... 125 3,953
Edison International ......... 210 5,303
General Public Utilities ......... 1,070 37,116
New York State E & G ......... 330 8,291
Texas Utilities ......... 630 22,326
Unicom ......... 500 11,344
-----------------
93,478
-----------------
TOTAL COMMON STOCK (COST $3,683,459) 4,181,596
-----------------
REPURCHASE AGREEMENT- 8.14%
With Chase Manhattan 5.75% 8/1/97
</TABLE>
<PAGE> 37
<TABLE>
<S> <C> <C>
(dated 7/31/97,collateralized by $118,000
U.S. Treasury Notes 5.875% due 8/15/98
market value $121,284) ......... 119,000 119,000
With J.P. Morgan Securities 5.75% 8/1/97
(dated 7/31/97, collateralized by $61,000
U.S. Treasury Notes 6.50% due 4/30/99
market value $63,086 and $55,000
U.S. Treasury Notes 8.875% due 8/15/99,
market value $58,531) ......... 119,000 119,000
With PaineWebber 5.72% 8/01/97
(dated 7/31/97, collateralized by $121,000
U.S. Treasury Notes 6.25% due 6/30/98,
market value $122,644) ......... 120,000 120,000
-----------------
TOTAL REPURCHASE AGREEMENT
(COST $358,000) 358,000
-----------------
TOTAL MARKET VALIE OF SECURITIES OWNED - 103.27% 4,539,589
(COST $4,041,459)
LIABILITIES NET OF RECEIVABLES
AND OTHER ASSETS - 3.27% (143,847)
NET ASSETS APPLICABLE TO 451,543 SHARES
($1.00 PAR VALUE) OUTSTANDING - 100% 4,395,742
=================
NET ASSETS VALUE- BLUE CHIP A CLASS
($ 1,713,434 /176,025 SHARES) $9.73
=================
NET ASSETS VALUE- BLUE CHIP B CLASS
($ 775,308 /79,853 SHARES) $9.71
=================
NET ASSETS VALUE- BLUE CHIP C CLASS
($ 108,016 /11,122 SHARES) $9.71
=================
NET ASSETS VALUE- BLUE CHIP INSTITUTIONAL CLASS
($ 1,798,984 /184,543 SHARES) $9.75
=================
</TABLE>
-----------------------------------------------------------------
* Non-income producing securities for the period ending 7/31/97
<TABLE>
COMPONENTS OF NET ASSETS AT JULY 31, 1997 Common stock, $1.00 par
value, 200,000,000 shares
allocated to the Fund with 100,000,000 shares allocated to Blue
Chip Fund A Class, 25,000,000 shares allocated to Blue Chip
Fund B Class, 25,000,000 shares allocated to Blue Chip Fund C
Class, 50,000,000 shares
<S> <C>
allocated to Blue Chip Institutional Class 3,886,652
Accumulated undistributed:
Net investment income 11,320
Net realized loss on investments (360)
Net unrealized appreciation on investments 498,130
-----------------
Total net assets 4,395,742
=================
</TABLE>
See accompanying notes
<PAGE> 38
DELAWARE GROUP EQUITY FUNDS II, INC.
QUANTUM FUND
STATEMENT OF NET ASSETS
<TABLE>
<CAPTION>
JULY 31, 1997 NUMBER OF MARKET
(UNAUDITED) SHARES VALUE
COMMON STOCK - 94.69%
AUTOMOBILE & AUTO PARTS - 0.72%
<S> <C> <C>
PACCAR ......... 1,600 79,100
-----------------
79,100
-----------------
BANKING & FINANCE - 21.62%
Ahmanson (H.F.) & Co. ......... 2,760 146,797
AmSouth Bancorporation ......... 2,672 115,397
Bank of Boston ......... 1,205 102,350
Bank of New York ......... 2,255 109,508
BankAmerica ......... 2,825 213,288
Bear Stearns ......... 3,365 137,334
Chase Manhattan ......... 1,925 218,608
City National ......... 3,305 95,019
Comdisco ......... 2,500 69,844
Comerica ......... 1,770 133,856
Edwards (A.G.) ......... 2,190 92,528
First Chicago NBD ......... 1,260 95,602
First Union ......... 625 63,398
First of America Bank ......... 2,042 113,331
Mellon Bank ......... 2,980 150,304
NationsBank ......... 2,220 158,036
Paine Webber Group ......... 3,460 138,400
* Republic New York ......... 675 77,963
* Student Loan Marketing Association ......... 965 144,690
-----------------
2,376,253
-----------------
BUILDINGS & MATERIALS - 0.59%
Oakwood Homes ......... 2,400 64,500
-----------------
64,500
-----------------
CABLE, MEDIA & PUBLISHING - 2.64%
Dun & Bradstreet ......... 1,620 43,740
Ennis Business Forms ......... 2,475 21,966
Harland (John H.) ......... 865 16,976
New York Times ......... 1,815 91,204
Omnicom Group ......... 1,670 116,587
-----------------
290,473
-----------------
CHEIMICALS - 0.58%
Avery Dennison ......... 1,170 51,626
International Flavors & Fragrances ......... 230 12,204
-----------------
63,830
-----------------
COMPUTERS & TECHNOLOGY - 9.94%
* Cadence Design Systems ......... 2,900 128,869
* Compaq Computer ......... 4,438 253,492
Deluxe ......... 2,025 67,458
HBO ......... 1,515 117,128
* Micron Electronics ......... 2,800 53,025
* Microsoft ......... 1,500 212,016
* Quantum ......... 4,900 142,559
* Western Digital ......... 3,060 117,810
-----------------
1,092,357
-----------------
CONSUMER PRODUCTS - 2.57%
Avon Products ......... 1,555 112,835
Clorox ......... 895 124,964
Premark International ......... 1,400 44,188
</TABLE>
<PAGE> 39
<TABLE>
<S> <C> <C>
-----------------
281,987
-----------------
ELECTRONICS & ELECTRICAL EQUIPMENT - 1.75%
* American Power Conversion ......... 4,900 122,194
Anixter International ......... 4,000 70,500
-----------------
192,694
-----------------
ENERGY - 2.51%
* Global Marine ......... 2,200 62,975
Helmerich & Payne ......... 710 47,792
* Oryx Energy ......... 3,480 85,912
Union Texas Petroleum ......... 3,800 79,087
-----------------
275,766
-----------------
FOOD & BEVERAGE - 8.60%
* Boston Chicken ......... 3,800 49,519
Campbell Soup ......... 2,155 111,791
Coca Cola ......... 2,535 175,549
Flowers Industries ......... 4,670 81,433
Hershey Foods ......... 2,405 132,876
Hormel Foods ......... 375 10,594
International Multifoods ......... 1,000 28,250
Interstate Bakeries ......... 2,325 141,825
Quaker Oats ......... 2,810 143,837
Ralston-Purina Group ......... 470 42,418
Universal Foods ......... 720 27,360
-----------------
945,452
-----------------
HEALTHCARE & PHARMACEUTICALS - 7.04%
* Amgen ......... 2,135 125,498
* HEALTHSOUTH ......... 4,550 120,575
Johnson & Johnson ......... 2,670 166,374
* Lincare Holdings ......... 1,455 71,568
* PhyCor ......... 1,820 60,743
Schering-Plough ......... 4,200 229,163
-----------------
773,921
-----------------
INSURANCE - 10.73%
Allstate ......... 1,175 92,825
CIGNA ......... 735 146,633
Marsh & McLennan ......... 2,150 166,491
Mercury General ......... 905 70,138
Mid Ocean ......... 610 36,905
Old Republic International ......... 2,225 77,875
* Oxford Health Plans ......... 1,275 107,339
* Reliance Group Holdings ......... 7,500 97,969
SunAmerica ......... 1,875 113,438
Travelers Group ......... 3,750 269,766
-----------------
1,179,379
-----------------
LEISURE, LODGING & ENTERTAINMENT - 1.13%
Callaway Golf ......... 2,210 77,350
Fleetwood Enterprises ......... 260 8,434
King World Productions ......... 960 38,760
-----------------
124,544
-----------------
METALS & MINING - 0.20%
Cleveland Cliffs Iron ......... 500 21,750
-----------------
21,750
-----------------
PACKAGING & CONTAINERS - 0.86%
* Sealed Air ......... 2,010 94,219
-----------------
94,219
-----------------
RETAIL - 9.78%
CVS Corporation ......... 1,690 96,119
Gap ......... 2,165 96,207
</TABLE>
<PAGE> 40
<TABLE>
<S> <C> <C>
Jostens ......... 1,650 42,591
Pier 1 Imports ......... 5,865 103,371
Ross Stores ......... 3,855 121,914
* Safeway ......... 2,220 119,047
Sears,Roebuck ......... 2,365 149,728
TJX ......... 5,150 153,856
Tiffany ......... 2,500 112,969
Woolworth ......... 2,800 79,275
-----------------
1,075,077
-----------------
TELECOMMUNICATIONS - 10.32%
* ADC Telecommunications ......... 2,505 101,061
Ameritech ......... 3,200 215,800
* Ascend Communications ......... 520 28,324
Bell Atlantic ......... 2,185 158,549
Cincinnati Bell ......... 2,470 74,100
* PairGain Technologies ......... 2,710 58,180
SBC Communications ......... 3,150 186,441
* Tellabs ......... 2,370 141,830
U.S. West Communications Group ......... 4,660 170,381
-----------------
1,134,666
-----------------
TEXTILES, APPAREL & FURNITURE - 0.97%
* Tommy Hilfiger ......... 2,400 106,950
-----------------
106,950
-----------------
TRANSPORTATION & SHIPPING - 0.87%
* AMR ......... 540 58,084
Tidewater ......... 185 9,343
* UAL ......... 340 27,901
-----------------
95,328
-----------------
MISCELLANEOUS - 1.27%
Timkin ......... 4,000 140,750
-----------------
140,750
-----------------
TOTAL COMMON STOCK (COST $9,111,252) 10,408,996
REPURCHASE AGREEMENT - 7.33%
With Chase Manhattan 5.72% 8/01/97
(dated 7/31/97, collateralized by $265,000
U.S. Treasury Notes 5.875% due 8/15/98,
market value $272,721) ......... 267,000 267,000
With J.P. Morgan Securities 5.72% 8/01/97
(dated 7/31/97, collateralized by $138,000
U.S. Treasury Notes 6.50% due 4/30/99,
market value $141,856 and $123,000
U.S. Treasury Notes 8.875% due 8/15/99,
market value $131,613) ......... 268,000 268,000
With PaineWebber 5.72% 8/01/97
(dated 7/31/97, collateralized by $273,000
U.S. Treasury Notes 6.25% due 6/30/98,
market value $275,777) ......... 270,000 270,000
-----------------
TOTAL REPURCHASE AGREEMENT
(COST $805,000) 805,000
-----------------
TOTAL MARKET VALUE OF SECURITIES OWNED - 102.02%
(COST $ 9,916,252) $11,213,996
LIABILITIES NET OF RECEIVABLES
AND OTHER ASSETS - (2.02%) (221,639)
-----------------
NET ASSETS APPLICABLE TO 1,111,469 SHARES
($1 PAR VALUE) OUTSTANDING - 100.00% $10,992,357
=================
</TABLE>
<PAGE> 41
<TABLE>
<S> <C>
NET ASSETS VALUE - QUANTUM FUND A CLASS
($4,508,487 / 455,382 SHARES) $9.90
=================
NET ASSETS VALUE - QUANTUM FUND B CLASS
($3,862,197 / 391,263 SHARES) $9.87
=================
NET ASSETS VALUE - QUANTUM FUND C CLASS
($785,935 / 79,612 SHARES) $9.87
=================
NET ASSETS VALUE - QUANTUM FUND INSTITUTIONAL CLASS
($1,835,738 / 185,212 SHARES) $9.91
=================
---------------------------
* Non-income producing securities for the period ended 7/31/97
COMPONENTS OF NETS ASSETS AT JULY 31, 1997:
Common stock, $1.00 par value, 200,000,000 shares
authorized to the Fund with 100,000,000 shares allocated to
Quantum Fund A Class, 25,000,000 shares allocated to Quantum Fund
B Class, 25,000,000 shares allocated to Quantum Fund C Class and
50,000,000
shares allocated to Quantum Fund Institutional Class 9,665,490
Accumulated undistributed:
Net investment income 4,428
Net realized gain on investments 24,695
Net unrealized appreciation of investments 1,297,744
-----------------
Total net assets $10,992,357
=================
</TABLE>
See accompanying notes
<PAGE> 42
DELAWARE GROUP EQUITY FUND II, INC.
STATEMENT OF OPERATIONS
FOR THE PERIOD ENDED JULY 31 ,1997
(Unaudited)
<TABLE>
<CAPTION>
BLUE CHIP QUANTUM
FUND FUND
----------- -----------
INVESTMENT INCOME:
<S> <C> <C>
Dividends 23,225 32,330
Interest $ 4,100 $ 9,307
----------- -----------
$ 27,325 $ 41,637
----------- -----------
EXPENSES:
Management fees 7,417 17,254
Dividend disbursing and transfer agent fees and expenses 5,907 13,419
Distribution expense 4,281 11,237
Accounting fees and salaries 622 1,266
Custodian fees 950 847
Registration fees 798 492
Directors' fees 529 539
Reports and statements to shareholders 328 682
Professional fees 87 768
Taxes (other than taxes on income) 110 180
Other 7 457
----------- -----------
21,036 47,141
Less expenses absorbed by Delaware Management
Company, Inc. (5,031) (9,932)
----------- -----------
16,005 37,209
NET INVESTMENT INCOME $ 11,320 $ 4,428
----------- -----------
NET REALIZED AND UNREALIZED GAIN(LOSS)
ON INVESTMENTS:
Net realized gain(loss) from security transactions (360) 24,695
Net unrealized appreciation of investments during the period 498,130 1,297,744
----------- -----------
NET REALIZED AND UNREALIZED GAIN
ON INVESTMENTS 497,770 1,322,439
----------- -----------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS $ 509,090 $ 1,326,867
=========== ===========
</TABLE>
See accompanying notes
<PAGE> 43
DELAWARE GROUP EQUITY FUND II, INC.
STATEMENT OF CHANGES IN NET ASSETS
(UNAUDITED)
<TABLE>
<CAPTION>
For the Period Ended July 31, 1997
BLUE CHIP QUANTUM
FUND FUND
------------ ------------
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS:
<S> <C> <C>
Net investment income $ 11,320 $ 4,428
Net realized gain (loss) on investments (360) 24,695
Net increase in unrealized appreciation 498,130 1,297,744
------------ ------------
Net increase in net assets
resulting from operations 509,090 1,326,867
------------ ------------
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold:
A Class 1,582,599 4,066,569
B Class 757,795 3,444,128
C Class 95,039 702,497
Institutional Class 1,575,173 1,584,658
------------ ------------
4,010,606 9,797,852
------------ ------------
Cost of shares repurchased:
A Class (47,498) (111,040)
B Class (67,090) (9,580)
C Class (75) (45)
Institutional Class (9,291) (11,697)
------------ ------------
(123,954) (132,362)
------------ ------------
Increase in assets derived from capital
share transactions 3,886,652 9,665,490
------------ ------------
NET INCREASE IN NET ASSETS 4,395,742 10,992,357
NET ASSETS:
Beginning of year 0 0
------------ ------------
End of year $ 4,395,742 $ 10,992,357
============ ============
</TABLE>
See accompanying notes
<PAGE> 44
DELAWARE GROUP EQUITY FUND II, INC.
FINANCIAL HIGHLIGHTS
FOR THE PERIOD ENDED JULY 31 ,1997
(Unaudited)
FINANCIAL HIGHLIGHTS
Selected data for each share of the Fund outstanding throughout each period were
as follows:
<TABLE>
<CAPTION>
BLUE CHIP FUND
BLUE CHIP FUND BLUE CHIP FUND BLUE CHIP FUND INSTITUTIONAL
A CLASS B CLASS C CLASS CLASS
2/25/1997(1) 2/25/1997(1) 2/25/1997(1) 2/25/1997(1)
TO TO TO TO
7/31/97 7/31/97 7/31/97 7/31/97
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Net asset value, beginning of period $ 8.5000 $ 8.5000 $ 8.5000 $ 8.5000
Income from investment operations:
Net investment income 0.0343(2) 0.0084(2) 0.0047(2) 0.0456(2)
Net realized and unrealized gain from investments 1.1957 1.2016 1.2053 1.2044
----------- ----------- ----------- -----------
Net increase in net assets from investment 1.2300 1.2100 1.2100 1.2500
operations
----------- ----------- ----------- -----------
Less distributions:
Dividends from net investment income none none none none
Distributions from capital gains none none none none
----------- ----------- ----------- -----------
Total distributions none none none none
----------- ----------- ----------- -----------
Net asset value, end of period $ 9.7300 $ 9.7100 $ 9.7100 $ 9.7500
=========== =========== =========== ===========
Total Return 14.47%(3) 14.24%(3) 14.24%(3) 14.71%(3)
Ratios and supplemental data:
Net assets, end of period (000 omitted) $ 1,713 $ 775 $ 108 $ 1,799
Ratio of expenses to average net assets 1.50% 2.20% 2.20% 1.20%
Ratio of expenses to average net assets prior to
expense
limitation 1.94% 2.64% 2.64% 1.64%
Ratio of net investment income to average net 0.99% 0.29% 0.29% 1.29%
assets
Ratio of net investment income to average net assets
prior to expense limitation 0.55% (.15%) (.15%) 0.85%
Portfolio turnover 25% 25% 25% 25%
Average commission rate paid $ 0.0365(4) $ 0.0365(4) $ 0.0365(4) $ 0.0365(4)
</TABLE>
- -------------------------------------------------------
(1) Date of initial public offering; ratios have been annualized but total
return has not been annualized. Total return for this short of a time
period may not be representative of longer results.
(2) The average shares outstanding method has been applied for per share
information.
(3) Does not include maximum sales charge of 4.75% nor the 1% limited
contingent deferred sales charge that would apply in the event of
certain redemptions within 12 months of purchase of A Class shares.
Does not include contingent deferred sales charge which varies from
1%-4% depending upon the holding period for Class B Shares and 1% for
Class C Shares for 12 months from the date of purchase.
(4) Computed by dividing the total amount of commissions paid by the total
number of shares purchased and sold during the period for which there
was a commission charged.
<PAGE> 45
FINANCIAL HIGHLIGHTS (CONTINUED)
Selected data for each share of the Fund outstanding throughout each period were
as follows:
<TABLE>
<CAPTION>
QUANTUM FUND
QUANTUM FUND QUANTUM FUND QUANTUM FUND INSTITUTIONAL
A CLASS B CLASS C CLASS CLASS
2/25/1997(1) 2/25/1997(1) 2/25/1997(1) 2/25/1997(1)
TO TO TO TO
7/31/97 7/31/97 7/31/97 7/31/97
----------- ----------- ----------- ---------
<S> <C> <C> <C> <C>
Net asset value, beginning of period $ 8.5000 $ 8.5000 $ 8.5000 $ 8.5000
Income from investment operations:
Net investment income 0.0198(2) 0.0148(2) 0.0165(2) 0.0237(2)
Net realized and unrealized gain from investments 1.3802 1.3552 1.3535 1.3863
----------- ----------- ----------- ---------
Net increase in net assets from investment operations 1.4000 1.3700 1.3700 1.4100
----------- ----------- ----------- ---------
Less distributions:
Dividends from net investment income none none none none
Distributions from capital gains none none none none
----------- ----------- ----------- ---------
Total distributions none none none none
----------- ----------- ----------- ---------
Net asset value, end of period $ 9.9000 $ 9.8700 $ 9.8700 $ 9.9100
=========== =========== =========== =========
Total Return 16.47%(3) 16.12%(3) 16.12%(3) 16.59%(3)
Ratios and supplemental data:
Net assets, end of period (000 omitted) $ 4,508 $ 3,862 $ 786 $ 1,836
Ratio of expenses to average net assets 1.50% 2.20% 2.20% 1.20%
Ratio of expenses to average net assets prior to expense
limitation 1.93% 2.63% 2.63% 1.63%
Ratio of net investment income to average net assets 0.47% (.23%) (.23%) 0.77%
Ratio of net investment income to average net assets prior
to expense limitation 0.04% (.66%) (.66%) 0.34%
Portfolio turnover 23% 23% 23% 23%
Average commission rate paid $ 0.0346(4) $ 0.0346(4) $ 0.0346(4) $ 0.0346(4)
</TABLE>
- -------------------------------------------------------
(1) Date of initial public offering; ratios have been annualized but total
return has not been annualized. Total return for this short of a time
period may not be representative of longer results.
(2) The average shares outstanding method has been applied for per share
information.
(3) Does not include maximum sales charge of 4.75% nor the 1% limited
contingent deferred sales charge that would apply in the event of
certain redemptions within 12 months of purchase of A Class shares.
Does not include contingent deferred sales charge which varies from
1%-4% depending upon the holding period for Class B Shares and 1% for
Class C Shares for 12 months from the date of purchase.
(4) Computed by dividing the total amount of commissions paid by the total
number of shares purchased and sold during the period for which there
was a commission charged.
<PAGE> 46
DELAWARE GROUP EQUITY FUND II, INC.
STANDARD NOTES TO FINANCIAL STATEMENTS
JULY 31, 1997
(UNAUDITED)
Delaware Group Equity Fund II, Inc. (The "Company") is registered as a
diversified open-end investment company under the Investment Company Act of
1940, as amended. The Company is organized as a Maryland Corporation and offers
four series, the Decatur Income Fund, the Decatur Total Return Fund, the Blue
Chip Fund and the Quantum Fund (The "Funds"). Each series offers four classes of
shares.
The investment objective of the Blue Chip Fund is to achieve long-term capital
appreciation. Current income is a secondary objective. It seeks to achieve these
objectives by investing primary in equity securities and any securities that are
convertible into equity securities.
The investment objective of the Quantum Fund is to achieve long-term capital
appreciation. It seeks to achieve this objective by investing primarily in
equity securities of medium to large-sized companies expected to grow over time
that meets the Fund's "Social Criteria" strategy.
1. SIGNIFICANT ACCOUNTING POLICIES
The following accounting policies are in accordance with generally accepted
accounting principles and are consistently followed by the Funds:
SECURITY VALUATION- Securities listed on an exchange are valued at the lasted
quoted sales price as of the close of the NYSE on the valuation date. Securities
not traded or securities not listed on an exchange are valued at the mean of the
last quoted bid and asked prices. Long-term debt securities are valued by an
independent pricing service and such prices are believed to reflect the fair
value of such securities. Money market instruments having less than 60 days to
maturity are valued at amortized cost which approximates market value. Other
securities and assets for which market quotations are not readily available are
valued at fair value as determined in good faith by or under the direction of
the Fund's Board of Directors.
FEDERAL INCOME TAXES- Each 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. Income and capital gain distributions are determined in
accordance with federal income tax regulations which may differ from generally
accepted accounting principles.
<PAGE> 47
CLASS ACCOUNTING- Investment income, common expenses and realized and unrealized
gain (loss) on investments are allocated to the various classes of the Funds on
the basis of daily net assets of each class. Distribution expenses relating to a
specific class are charged directly to that class.
REPURCHASE AGREEMENTS- Each Fund may invest in a pooled cash account along with
other members of the Delaware Group of Funds. The aggregate daily balance of the
pooled cash account is invested in repurchase agreements secured by obligations
of the U.S. government. The respective collateral is held by the Fund's
custodian bank until the maturity of the respective repurchase agreements. Each
repurchase agreement is at least 100% collateralized. However, in the event of
default or bankruptcy by the counterparty to the agreement, realization of the
collateral may be subject to legal proceedings.
OTHER- Expenses common to all Funds within the Delaware Group 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. Dividend income
is recorded on the ex-dividend date and interest income is recorded on the
accrual basis. Original issue discounts are accreted to interest income over the
lives of the respective securities. The Blue Chip Fund and Quantum Fund declares
and pays dividends from net investment income and capital gains annually.
Certain Fund expenses are paid through "soft dollar" arrangements with brokers.
The amount of these expenses is less than 0.01% of the Fund's average daily net
assets.
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.
2. INVESTMENT MANAGEMENT AND OTHER TRANSACTIONS WITH AFFILIATES In accordance
with the terms of the Investment Management Agreement, the Funds pays Delaware
Management Company, Inc. (DMC), the Investment Manager of the Funds, an annual
fee which is calculated daily at the rate of 0.65% on the first $500 million of
average daily net assets, 0.625% on the next $500 million and 0.60% on the
average daily net assets in excess of $1 billion for Blue Chip Fund and 0.75% on
the first $500 million of average daily net assets, 0.725% on the next $500
million and 0.70% on the average daily net assets in excess of $1 billion for
Quantum Fund.
<PAGE> 48
DMC has entered into a sub-advisory agreement with Vantage Global Advisors, Inc.
with respect to the management fee of the Funds. For the services provided to
DMC, DMC pays the sub-adviser 0.15% and 0.20% of the fee paid to DMC for Blue
Chip and Quantum Fund, respectively. The Funds do not pay any fees to the
sub-advisers. At July 31, 1997, the Funds had liabilities for Investment
Management Fees and other expenses payable to DMC for $3,582 and $11,614,
respectively.
DMC has elected to waive the portion if any of the management fee and reimburse
the Funds to the extent that annual operating expenses exclusive of taxes,
interest, brokerage commissions, extraordinary expenses and distribution
expenses exceed 1.20% of average daily net assets of the Funds through July 31,
1997. Total expense absorbed by DMC for the period ended July 31, 1997, were
$5,031 and $9,932 for Blue Chip Fund and Quantum Fund, respectively.
The Funds has engaged Delaware Service Company, Inc. (DSC), an affiliate of DMC,
to serve as dividend disbursing and transfer agent for the Fund. The Funds also
engaged DSC to provide accounting services for the Funds. For the period ended
July 31, 1997, the Blue Chip Fund and Quantum Fund expensed $5,907 and $13,419
for dividend disbursing and transfer agent services and $431 and $854 for
accounting services and had liabilities for such fees and other expenses payable
to DSC for $6,278 and $13,555, respectively.
Pursuant to the Distribution Agreement, the Funds pays Delaware Distributors,
L.P. (DDLP), the Distributor and an affiliate of DMC, an annual fee not to
exceed 0.30% of the average daily net assets of the A Class for the Blue Chip
Fund and Quantum Fund and 1.00% of the average daily net assets of the B and C
Class for each Fund. For the period ended July 31, 1997, DDLP earned $4,095 and
$12,492 for commissions on sales of Blue Chip Fund A Class shares and Quantum
Fund A Class shares, respectively.
Certain officers of DMC, DSC and DDLP are officers, directors and/or employees
of the Funds. These officers, directors and employees are paid no compensation
by the Funds.
<PAGE> 49
3. INVESTMENTS
During the period ended July 31, 1997, the Funds made purchases and sales of
investment securities other than U.S. government securities and temporary cash
investments as follows:
<TABLE>
<CAPTION>
BLUE CHIP FUND QUANTUM FUND
<S> <C> <C>
Purchases .................... $3,968,693 $9,607,789
Sales ........................ $ 285,233 $ 496,526
</TABLE>
Investment securities based on cost for the federal income tax purposes at July
31,1997 are as follows:
<TABLE>
<CAPTION>
BLUE CHIP FUND QUANTUM FUND
<S> <C> <C>
Cost of investments ...................... $3,683,459 $9,111,252
Aggregate unrealized appreciation ........ $ 579,253 $1,516,358
Aggregate unrealized depreciation ........ $ 81,124 $ 220,720
---------- ----------
Net unrealized appreciation .............. $ 498,129 $1,295,638
</TABLE>
4. CAPITAL STOCK
Transactions in capital stock were as follows:
<TABLE>
<CAPTION>
BLUE CHIP QUANTUM
FUND FUND
---------- ----------
<S> <C> <C>
Shares sold:
A Class ................ 181,619 467,974
B Class ................ 87,909 392,417
C Class ................ 11,130 79,617
Institutional Class .... 185,546 186,497
---------- ----------
466,204 1,126,505
---------- ----------
Shares Repurchased:
A Class ................ (5,594) (12,592)
B Class ................ (8,056) (1,154)
C Class ................ (8) (5)
Institutional Class .... (1,003) (1,285)
---------- ----------
(14,661) (15,036)
---------- ----------
Net increase ........... 451,543 1,111,469
---------- ----------
</TABLE>
<PAGE> 50
PART C
Other Information
Item 24. Financial Statements and Exhibits
(a) Financial Statements:
Part A - Financial Highlights
*Part B - Statements of Net Assets
Statements of Operations
Statements of Changes in Net Assets
Notes to Financial Statements
Report of Independent Auditors
* The financial statements and Report of Independent Auditors listed
above for Decatur Income Fund and Decatur Total Return Fund are
incorporated by reference into Part B from the Registrant's Annual
Report for such Funds for the fiscal year ended November 30, 1996.
Unaudited financial statements for such Funds are incorporated by
reference into Part B from the Registrant's Semi-Annual Reports for
the period ended May 31, 1997. In addition, unaudited financial
statements for Blue Chip Fund and Quantum Fund for the period
February 25, 1997 through July 31, 1997 are included in Part B.
(b) Exhibits:
(1) Articles of Incorporation.
(a) Articles of Incorporation, as amended and
supplemented through November 27, 1995,
incorporated into this filing by reference to
Post- Effective Amendment No. 104 filed November
27, 1995.
(b) Executed Articles Supplementary (November 28,
1995) incorporated into this filing by reference
to Post-Effective Amendment No. 105 filed
January 30, 1996.
(c) Executed Articles Supplementary (March 24, 1997)
attached as Exhibit.
(d) Executed Articles of Amendment (March 24, 1997)
attached as Exhibit.
(2) By-Laws. By-Laws, as amended to date, incorporated into
this filing by reference to Post-Effective Amendment No.
104 filed November 27, 1995.
(3) Voting Trust Agreement. Inapplicable.
<PAGE> 51
PART C - Other Information
(Continued)
(4) Copies of All Instruments Defining the Rights of
Holders.
(a) Articles of Incorporation, Articles of Amendment
and Articles Supplementary.
(i) Article Second of Articles Supplementary
(June 30, 1993, April 27, 1994 and
September 2, 1994), Article Fifth of the
Articles of Incorporation (March 4,
1983) and Article Eleventh of Articles
of Amendment (May 2, 1985) incorporated
into this filing by reference to
Post-Effective Amendment No. 104 filed
November 27, 1995.
(ii) Articles Third and Fourth of Articles
Supplementary (November 28, 1995)
incorporated into this filing by
reference to Post-Effective Amendment
No. 105 filed January 30, 1996.
(iii) Articles Fifth of Articles Supplementary
(March 24, 1997) incorporated by
reference to Exhibit 24(b)(1)(c), filed
herewith.
(b) By-Laws. Article II, Article III, as amended,
and Article XIII, which was subsequently
redesignated as Article XIV, incorporated into
this filing by reference to Post-Effective
Amendment No. 104 filed November 27, 1995.
(5) Investment Management Agreements.
(a) Investment Management Agreement (April 3, 1995)
between Delaware Management Company, Inc. and
the Registrant on behalf of Decatur Income Fund
incorporated into this filing by reference to
Post-Effective Amendment No. 104 filed November
27, 1995.
(b) Investment Management Agreement (April 3, 1995)
between Delaware Management Company, Inc. and
the Registrant on behalf of Decatur Total Return
Fund incorporated into this filing by reference
to Post-Effective Amendment No. 104 filed
November 27, 1995.
(c) Proposed Investment Management Agreement
(February __, 1997) between Delaware Management
Company, Inc. and the Registrant on behalf of
Blue Chip Fund incorporated into this filing by
reference to Post-Effective Amendment No. 106
filed December 10, 1996.
(d) Proposed Investment Management Agreement
(February __, 1997) between Delaware Management
Company, Inc. and the Registrant on behalf of
Quantum Fund incorporated into this filing by
reference to Post-Effective Amendment No. 106
filed December 10, 1996.
<PAGE> 52
PART C - Other Information
(Continued)
(e) Proposed Sub-Advisory Agreement (February __,
1997) between Delaware Management Company, Inc.
and Vantage Global Advisors, Inc. on behalf of
Blue Chip Fund incorporated into this filing by
reference to Post-Effective Amendment No. 106
filed December 10, 1996.
(f) Proposed Sub-Advisory Agreement (February__,
1997) between Delaware Management Company, Inc.
and Vantage Global Advisors, Inc. on behalf of
Quantum Fund incorporated into this filing by
reference to Post-Effective Amendment No. 106
filed December 10, 1996.
(6) (a) Distribution Agreements.
(i) Proposed Distribution Agreements (April
1995) between Delaware Distributors,
L.P. and the Registrant on behalf of
Decatur Income Fund and Decatur Total
Return Fund incorporated into this
filing by reference to Post-Effective
Amendment No. 104 filed November 27,
1995.
(ii) Form of Amendment No. 1 to Distribution
Agreements (November 1995) on behalf of
Decatur Income Fund and Decatur Total
Return Fund incorporated into this
filing by reference to Post-Effective
Amendment No. 104 filed November 27,
1995.
(iii) Proposed Distribution Agreement
(February __,1997) (Module) between
Delaware Distributors, L.P. and the
Registrant on behalf of Blue Chip Fund
and Quantum Fund incorporated into this
filing by reference to Post-Effective
Amendment No. 106 filed December 10,
1996.
(b) Administration and Service Agreement. Form of
Administration and Service Agreement (as amended
November 1995) (Module) incorporated into this
filing by reference to Post-Effective Amendment
No. 104 filed November 27, 1995.
(c) Dealer's Agreement. Dealer's Agreement (as
amended November 1995) (Module) incorporated
into this filing by reference to Post-Effective
Amendment No. 104 filed November 27, 1995.
(d) Mutual Fund Agreement for the Delaware Group of
Funds (November 1995) (Module) incorporated into
this filing by reference to Post-Effective
Amendment No. 105 filed January 30, 1996.
(7) Bonus, Profit Sharing, Pension Contracts.
(a) Amended and Restated Profit Sharing Plan
incorporated into this filing by reference to
Post-Effective Amendment No. 104 filed November
27, 1995.
<PAGE> 53
PART C - Other Information
(Continued)
(b) Amendment to Profit Sharing Plan (December 21,
1995) (Module) incorporated into this filing by
reference to Post-Effective Amendment No. 105
filed January 30, 1996.
(8) Custodian Agreements.
(a) Form of Custodian Agreement (1996) between
Bankers Trust Company and the Registrant on
behalf of Decatur Income Fund and Decatur Total
Return Fund incorporated into this filing by
reference to Post-Effective Amendment No. 106
filed December 10, 1996.
(b) Form of Securities Lending Agreement (1996)
between Bankers Trust Company and the Registrant
on behalf of Decatur Income Fund and Decatur
Total Return Fund incorporated into this filing
by reference to Post-Effective Amendment No. 106
filed December 10, 1996.
(c) Proposed Custodian Agreement (1997) between The
Chase Manhattan Bank and the Registrant on
behalf of Blue Chip Fund and Quantum Fund
incorporated into this filing by reference to
Post-Effective Amendment No. 106 filed December
10, 1996.
(d) Proposed Securities Lending Agreement (1997)
between The Chase Manhattan Bank and the
Registrant on behalf of Blue Chip Fund and
Quantum Fund incorporated into this filing by
reference to Post-Effective Amendment No. 106
filed December 10, 1996.
(9) Other Material Contracts.
(a) Proposed Amended and Restated Shareholders
Services Agreement (February __, 1997)
(Module) between Delaware Service Company, Inc.
and the Registrant on behalf of each Fund
incorporated into this filing by reference to
Post-Effective Amendment No. 106 filed December
10, 1996.
(b) Executed Fund Accounting Agreement (August 19,
1996) between Delaware Service Company, Inc. and
the Registrant incorporated into this filing by
reference to Post-Effective Amendment No. 106
filed December 10, 1996.
(i) Executed Amendment No. 4 (February 24,
1997) to Schedule A to Delaware Group of
Funds Fund Accounting Agreement attached
as Exhibit.
(ii) Executed Amendment No. 4A (April 14,
1997) to Schedule A to Delaware Group of
Funds Fund Accounting Agreement attached
as Exhibit.
(iii) Executed Amendment No. 5 (May 1, 1997)
to Schedule A to Delaware Group of Funds
Fund Accounting Agreement attached as
Exhibit.
<PAGE> 54
PART C - Other Information
(Continued)
(iv) Executed Amendment No. 6 (July 21, 1997)
to Schedule A to Delaware Group of Funds
Fund Accounting Agreement attached as
Exhibit.
(10) Opinion of Counsel. Filed with letter relating to Rule
24f-2 on January 29, 1997.
(11) Consent of Auditors. Attached as Exhibit.
(12-13) Inapplicable.
(14) Model Plans. Incorporated into this filing by reference
to Post-Effective Amendment No. 93 filed February 1,
1993, Post-Effective Amendment No. 95 filed May 27, 1993
and Post-Effective Amendment No. 104 filed November 27,
1995.
(15) Plans under Rule 12b-1.
(a) Form of Plan under Rule 12b-1 for Class A
(November 1995) for Decatur Income Fund and
Decatur Total Return Fund incorporated into this
filing by reference to Post-Effective Amendment
No. 104 filed November 27, 1995.
(b) Form of Plan under Rule 12b-1 for Class B
(November 1995) for Decatur Income Fund and
Decatur Total Return Fund incorporated into this
filing by reference to Post-Effective Amendment
No. 104 filed November 27, 1995.
(c) Form of Plan under Rule 12b-1 for Class C
(November 1995) for Decatur Income Fund and
Decatur Total Return Fund incorporated into this
filing by reference to Post-Effective Amendment
No. 104 filed November 27, 1995.
(d) Proposed Plan under Rule 12b-1 (Module) for Blue
Chip Fund and Quantum Fund Class A (February __,
1997) incorporated into this filing by reference
to Post-Effective Amendment No. 106 filed
December 10, 1996.
(e) Proposed Plan under Rule 12b-1 (Module) for Blue
Chip Fund and Quantum Fund Class B (February __,
1997) incorporated into this filing by reference
to Post-Effective Amendment No. 106 filed
December 10, 1996.
(f) Proposed Plan under Rule 12b-1 (Module) for Blue
Chip Fund and Quantum Fund Class C (February __,
1997) incorporated into this filing by reference
to Post-Effective Amendment No. 106 filed
December 10, 1996.
<PAGE> 55
PART C - Other Information
(Continued)
(16) Schedules of Computation for each Performance Quotation.
(a) Incorporated into this filing by reference to
Post-Effective Amendment No. 104 filed November
27, 1995, Post-Effective Amendment No. 105 filed
January 30, 1996 and Post-Effective Amendment
No. 107 filed February 21, 1997.
(b) Schedules of Computation for each Performance
Quotation for periods not previously
electronically filed attached as Exhibit.
(17) Financial Data Schedules.
(a) Financial Data Schedules for the fiscal year
ended November 30, 1996 are incorporated into
this filing by reference to Post-Effective
Amendment 107 filed February 21, 1997.
(b) Financial Data Schedules for the Semi-Annual
period ended May 31, 1997 for each fund and for
the period ended July 31, 1997 for the Blue Chip
and Quantum Funds attached as Exhibit.
(18) Plan under Rule 18f-3.
(a) Plan under Rule 18f-3 (November 29, 1995)
(Module) incorporated into this filing by
reference to Post-Effective Amendment No. 105
filed January 30, 1996.
(b) Amended Appendix A (November 29, 1996) to Plan
under Rule 18f-3 incorporated into this filing
by reference to Post-Effective Amendment No. 107
filed February 24, 1997.
(c) Proposed Amended Appendix A (February __, 1997)
(Module) to Plan under Rule 18f-3 incorporated
into this filing by reference to Post-Effective
Amendment No. 106 filed December 10, 1996.
(19) Other: Directors' Power of Attorney. Incorporated into
this filing by reference to Post-Effective Amendment No.
104 filed November 27, 1995.
Directors' Power of Attorney. Power of Attorney for
Thomas F. Madison and Jeffrey J. Nick attached as
Exhibit.
Item 25. Persons Controlled by or under Common Control with Registrant. None.
<PAGE> 56
PART C - Other Information
(Continued)
Item 26. Number of Holders of Securities.
<TABLE>
<CAPTION>
(1) (2)
Number of
Title of Class Record Holders
-------------- --------------
<S> <C>
Delaware Group Decatur Fund, Inc.'s
Decatur Income Fund series:
Decatur Income Fund A Class
Common Stock Par Value 72,980 Accounts as of
$1.00 Per Share July 31, 1997
Decatur Income Fund B Class
Common Stock Par Value 4,980 Accounts as of
$1.00 Per Share July 31, 1997
Decatur Income Fund C Class
Common Stock Par Value 648 Accounts as of
$1.00 Per Share July 31, 1997
Decatur Income Fund Institutional Class
Common Stock Par Value 85 Accounts as of
$1.00 Per Share July 31, 1997
Delaware Group Decatur Fund, Inc.'s
Decatur Total Return Fund series:
Decatur Total Return Fund A Class
Common Stock Par Value 38,736 Accounts as of
$1.00 Per Share July 31, 1997
Decatur Total Return Fund B Class
Common Stock Par Value 6,660 Accounts as of
$1.00 Per Share July 31, 1997
Decatur Total Return Fund C Class
Common Stock Par Value 1,119 Accounts as of
$1.00 Per Share July 31, 1997
</TABLE>
<PAGE> 57
PART C - Other Information
(Continued)
<TABLE>
<CAPTION>
(1) (2)
Number of
Title of Class Record Holders
-------------- --------------
<S> <C>
Decatur Total Return Fund Institutional Class
Common Stock Par Value 34 Accounts as of
$1.00 Per Share July 31, 1997
Delaware Group Decatur Fund, Inc.'s
Blue Chip Fund series:
Blue Chip Fund A Class
Common Stock Par Value 233 Accounts as of
$1.00 Per Share July 31, 1997
Blue Chip Fund B Class
Common Stock Par Value 159 Accounts as of
$1.00 Per Share July 31, 1997
Blue Chip Fund C Class
Common Stock Par Value 31 Accounts as of
$1.00 Per Share July 31, 1997
Blue Chip Fund Institutional Class 9 Accounts as of
Common Stock Par Value July 31, 1997
$1.00 Per Share
Delaware Group Decatur Fund, Inc.'s
Quantum Fund series:
Quantum Fund A Class
Common Stock Par Value 601 Accounts as of
$1.00 Per Share July 31, 1997
</TABLE>
<PAGE> 58
PART C - Other Information
(Continued)
<TABLE>
<CAPTION>
(1) (2)
Number of
Title of Class Record Holders
-------------- --------------
<S> <C>
Quantum Fund B Class
Common Stock Par Value 399 Accounts as of
$1.00 Per Share July 31, 1997
Quantum Fund C Class
Common Stock Par Value 70 Accounts as of
$1.00 Per Share July 31, 1997
Quantum Fund Institutional Class 9 Accounts as of
Common Stock Par Value July 31, 1997
$1.00 Per Share
</TABLE>
Item 27. Indemnification. Incorporated into this filing by reference to
Post-Effective Amendment No. 75 filed May 23, 1986 and Article VII of
the By-Laws, as amended, incorporated into this filing by reference to
Post-Effective Amendment No. 104 filed November 27, 1995.
Item 28. Business and Other Connections of Investment Adviser.
Delaware Management Company, Inc. (the "Manager") serves as investment
manager to the Registrant and also serves as investment manager or sub-adviser
to certain of the other funds in the Delaware Group (Delaware Group Equity Funds
I, Inc., Delaware Group Trend Fund, Inc., Delaware Group Equity Funds IV, Inc.,
Delaware Group Equity Funds V, Inc., Delaware Group Government Fund, Inc.,
Delaware Group Limited-Term Government Funds, Inc., Delaware Group Cash Reserve,
Inc., Delaware Group Tax-Free Fund, Inc., DMC Tax-Free Income
Trust-Pennsylvania, Delaware Group Tax-Free Money Fund, Inc., Delaware Group
Premium Fund, Inc., Delaware Group Global & International Funds, Inc., Delaware
Pooled Trust, Inc., Delaware Group Adviser Funds, Inc., Delaware Group Dividend
and Income Fund, Inc., Delaware Group Global Dividend and Income Fund, Inc.,
Voyageur Tax-Free Funds, Inc., Voyageur Intermediate Tax-Free Funds, Inc.,
Voyageur Insured Funds, Inc., Voyageur Funds, Inc., Voyageur Investment Trust,
Voyageur Investment Trust II, Voyageur Mutual Funds, Inc., Voyageur Mutual Funds
II, Inc., Voyageur Mutual Funds III, Inc., Voyageur Arizona Municipal Income
Fund, Inc., Voyageur Colorado Insured Municipal Income Fund, Inc., Voyageur
Florida Insured Municipal Income Fund, Voyageur Minnesota Municipal Fund, Inc.,
Voyageur Minnesota Municipal Fund II, Inc. and Voyageur Minnesota Municipal Fund
III, Inc.) and provides investment advisory services to institutional accounts,
primarily retirement plans and endowment funds. In addition, certain directors
of the Manager also serve as directors/trustees of the other Delaware Group
funds, and certain officers are also officers of these other funds. A company
owned by the Manager's parent company acts as principal underwriter to the
mutual funds in the Delaware Group (see Item 29 below) and another such company
acts as the shareholder services, dividend disbursing, accounting servicing and
transfer agent for all of the mutual funds in the Delaware Group.
<PAGE> 59
PART C - Other Information
(Continued)
The following persons serving as directors or officers of the Manager
have held the following positions during the past two years:
Name and Principle Positions and Offices with the Manager and its
Business Address * Affiliates and Other Positions and Offices Held
- ------------------ -----------------------------------------------
Wayne A. Stork Chairman of the Board, President, Chief Executive
Officer, Chief Investment Officer and Director of
Delaware Management Company, Inc.; Chairman of the
Board, President, Chief Executive Officer and Director
of the Registrant, each of the other funds in the
Delaware Group, Delaware Management Holdings, Inc., DMH
Corp., Delaware International Holdings Ltd. and
Founders Holdings, Inc.; Chairman of the Board and
Director of Delaware Distributors, Inc. and Delaware
Capital Management, Inc.; Director of Delaware Service
Company, Inc. and Delaware Investment & Retirement
Services, Inc.; and Chairman, Chief Executive Officer
and Director of Delaware International Advisers Ltd.
Richard G. Unruh, Jr. Executive Vice President and Director of Delaware
Management Company, Inc.; Executive Vice President of
the Registrant, each of the other funds in the Delaware
Group, Delaware Management Holdings, Inc. and Delaware
Capital Management, Inc; and Director of Delaware
International Advisers Ltd.
Board of Directors, Chairman of Finance Committee,
Keystone Insurance Company since 1989, 2040 Market
Street, Philadelphia, PA; Board of Directors, Chairman
of Finance Committee, AAA Mid Atlantic, Inc. since
1989, 2040 Market Street, Philadelphia, PA; Board of
Directors, Metron, Inc. since 1995, 11911 Freedom
Drive, Reston, VA
Paul E. Suckow Executive Vice President/Chief Investment Officer,
Fixed Income of Delaware Management Company, Inc., the
Registrant, each of the other funds in the Delaware
Group and Delaware Management Holdings, Inc.; Executive
Vice President and Director of Founders Holdings, Inc.;
Executive Vice President of Delaware Capital
Management, Inc.; and Director of Founders CBO
Corporation
Director, HYPPCO Finance Company Ltd.
* Business address of each is 1818 Market Street, Philadelphia, PA 19103.
<PAGE> 60
PART C - Other Information
(Continued)
Name and Principle Positions and Offices with the Manager and its
Business Address * Affiliates and Other Positions and Offices Held
- ------------------ -----------------------------------------------
David K. Downes Executive Vice President, Chief Operating Officer,
Chief Financial Officer and Director of Delaware
Management Company, Inc., DMH Corp, Delaware
Distributors, Inc., Founders Holdings, Inc. and
Delaware International Holdings Ltd.; Executive Vice
President, Chief Operating Officer and Chief Financial
Officer of the Registrant and each of the other funds
in the Delaware Group, Delaware Management Holdings,
Inc., Founders CBO Corporation, Delaware Capital
Management, Inc. and Delaware Distributors, L.P.;
President, Chief Executive Officer, Chief Financial
Officer and Director of Delaware Service Company, Inc.;
Chairman, Chief Executive Officer and Director of
Delaware Investment & Retirement Services, Inc.;
Chairman and Director of Delaware Management Trust
Company; and Director of Delaware International
Advisers Ltd.
Chief Executive Officer and Director of Forewarn, Inc.
since 1993, 8 Clayton Place, Newtown Square, PA
George M. Senior Vice President, General Counsel, Secretary and
Chamberlain, Jr. Director of Delaware Management Company, Inc., DMH
Corp., Delaware Distributors, Inc., Delaware Service
Company, Inc., Founders Holdings, Inc., Delaware
Capital Management, Inc. and Delaware Investment &
Retirement Services, Inc.; Senior Vice President,
Secretary and General Counsel of the Registrant, each
of the other funds in the Delaware Group, Delaware
Distributors, L.P. and Delaware Management Holdings,
Inc.; Executive Vice President, Secretary, General
Counsel and Director of Delaware Management Trust
Company; Secretary and Director of Delaware
International Holdings Ltd.; and Director of Delaware
International Advisers Ltd.
*Business address of each is 1818 Market Street, Philadelphia, PA 19103.
<PAGE> 61
PART C - Other Information
(Continued)
Name and Principal Positions and Offices with the Manager and its
Business Address* Affiliates and Other Positions and Offices Held
- ----------------- -----------------------------------------------
Richard J. Flannery Senior Vice President/Corporate and International
Affairs of the Registrant, each of the other funds in
the Delaware Group, Delaware Management Holdings, Inc.,
DMH Corp., Delaware Management Company, Inc., Delaware
Distributors, Inc., Delaware Distributors, L.P.,
Delaware Management Trust Company, Delaware Capital
Management, Inc., Delaware Service Company, Inc. and
Delaware Investment & Retirement Services, Inc.; Senior
Vice President/ Corporate and International Affairs and
Director of Founders Holdings, Inc. and Delaware
International Holdings Ltd.; Senior Vice President of
Founders CBO Corporation; and Director of Delaware
International Advisers Ltd.
Director, HYPPCO Finance Company Ltd.
Limited Partner of Stonewall Links, L.P. since 1991,
Bulltown Rd., Elverton, PA; Director and Member of
Executive Committee of Stonewall Links, Inc. since
1991, Bulltown Rd., Elverton, PA
Michael P. Bishof Senior Vice President and Treasurer of the Registrant,
each of the other funds in the Delaware Group, Delaware
Distributors, Inc. and Founders Holdings, Inc.; Senior
Vice President/Investment Accounting of Delaware
Management Company, Inc. and Delaware Service Company,
Inc.; Senior Vice President and Treasurer/ Manager,
Investment Accounting of Delaware Distributors, L.P.;
Assistant Treasurer of Founders CBO Corporation; and
Senior Vice President and Manager of Investment
Accounting of Delaware International Holdings Ltd.
* Business address of each is 1818 Market Street, Philadelphia, PA 19103.
<PAGE> 62
PART C - Other Information
(Continued)
Name and Principle Positions and Offices with the Manager and its
Business Address * Affiliates and Other Positions and Offices Held
- ------------------ -----------------------------------------------
Joseph H. Hastings Senior Vice President/Corporate Controller and
Treasurer of Delaware Management Holdings, Inc., DMH
Corp., Delaware Management Company, Inc., Delaware
Distributors, Inc., Delaware Capital Management, Inc.,
Delaware Distributors, L.P., Delaware Service Company,
Inc. and Delaware International Holdings Ltd.; Senior
Vice President/Corporate Controller of the Registrant,
each of the other funds in the Delaware Group and
Founders Holdings, Inc.; Executive Vice President,
Chief Financial Officer and Treasurer of Delaware
Management Trust Company; Chief Financial Officer and
Treasurer of Delaware Investment & Retirement Services,
Inc.; and Senior Vice President/Assistant Treasurer of
Founders CBO Corporation
Michael T. Taggart Senior Vice President/Facilities Management and
Administrative Services of Delaware Management Company,
Inc.
Douglas L. Anderson Senior Vice President/Operations of Delaware Management
Company, Inc., Delaware Investment and Retirement
Services, Inc. and Delaware Service Company, Inc.;
Senior Vice President/ Operations and Director of
Delaware Management Trust Company
James L. Shields Senior Vice President/Chief Information Officer of
Delaware Management Company, Inc., Delaware Service
Company, Inc. and Delaware Investment & Retirement
Services, Inc.
Eric E. Miller Vice President, Assistant Secretary and Deputy General
Counsel of the Registrant and each of the other funds
in the Delaware Group, Delaware Management Company,
Inc., Delaware Management Holdings, Inc., DMH Corp.,
Delaware Distributors, L.P., Delaware Distributors
Inc., Delaware Service Company, Inc., Delaware
Management Trust Company, Founders Holdings, Inc.,
Delaware Capital Management, Inc. and Delaware
Investment & Retirement Services, Inc.
* Business address of each is 1818 Market Street, Philadelphia, PA 19103.
<PAGE> 63
PART C - Other Information
(Continued)
Name and Principle Positions and Offices with the Manager and its
Business Address * Affiliates and Other Positions and Offices Held
- ------------------ -----------------------------------------------
Richelle S. Maestro Vice President and Assistant Secretary of Delaware
Management Company, Inc., the Registrant, each of the
other funds in the Delaware Group, Delaware Management
Holdings, Inc., Delaware Distributors, L.P., Delaware
Distributors, Inc., Delaware Service Company, Inc., DMH
Corp., Delaware Management Trust Company, Delaware
Capital Management, Inc., Delaware Investment &
Retirement Services, Inc. and Founders Holdings, Inc.;
Secretary of Founders CBO Corporation; and Assistant
Secretary of Delaware International Holdings Ltd.
Partner of Tri-R Associates since 1989, 10001 Sandmeyer
Lane, Philadelphia, PA
Richard Salus(1) Vice President/Assistant Controller of Delaware
Management Company, Inc. and Delaware Management Trust
Company
Bruce A. Ulmer Vice President/Director of LNC Internal Audit of
Delaware Management Company, Inc., the Registrant, each
of the other funds in the Delaware Group, Delaware
Management Holdings, Inc., DMH Corp., Delaware
Management Trust Company and Delaware Investment &
Retirement Services, Inc.
Steven T. Lampe(2) Vice President/Taxation of Delaware Management Company,
Inc., the Registrant, each of the other funds in the
Delaware Group, Delaware Management Holdings, Inc., DMH
Corp., Delaware Distributors, L.P., Delaware
Distributors, Inc., Delaware Service Company, Inc.,
Delaware Management Trust Company, Founders Holdings,
Inc., Founders CBO Corporation, Delaware Capital
Management, Inc. and Delaware Investment & Retirement
Services, Inc.
Christopher Adams(3) Vice President/Strategic Planning of Delaware
Management Company, Inc. and Delaware Service Company,
Inc.
Susan L. Hanson Vice President/Strategic Planning of Delaware
Management Company, Inc. and Delaware Service Company,
Inc.
* Business address of each is 1818 Market Street, Philadelphia, PA 19103.
<PAGE> 64
PART C - Other Information
(Continued)
Name and Principle Positions and Offices with the Manager and its
Business Address * Affiliates and Other Positions and Offices Held
- ------------------ -----------------------------------------------
Dennis J. Mara(4) Vice President/Acquisitions of Delaware Management
Company, Inc.
Scott Metzger Vice President/Business Development of Delaware
Management Company, Inc. and Delaware Service Company,
Inc.
Lisa O. Brinkley Vice President/Compliance of Delaware Management
Company, Inc., the Registrant, each of the other funds
in the Delaware Group, DMH Corp., Delaware
Distributors, L.P., Delaware Distributors, Inc.,
Delaware Service Company, Inc., Delaware Management
Trust Company, Delaware Capital Management, Inc. and
Delaware Investment & Retirement Services, Inc.
Rosemary E. Milner Vice President/Legal Registrations of Delaware
Management Company, Inc., the Registrant, each of the
other funds in the Delaware Group, Delaware
Distributors, L.P. and Delaware Distributors, Inc.
Gerald T. Nichols Vice President/Senior Portfolio Manager of Delaware
Management Company, Inc., each of the tax-exempt funds,
the fixed income funds and the closed-end funds in the
Delaware Group; Vice President of Founders Holdings,
Inc.; and Treasurer, Assistant Secretary and Director
of Founders CBO Corporation
Paul A. Matlack Vice President/Senior Portfolio Manager of Delaware
Management Company, Inc., each of the tax-exempt funds,
the fixed income funds and the closed-end funds in the
Delaware Group; Vice President of Founders Holdings,
Inc.; and President and Director of Founders CBO
Corporation.
Gary A. Reed Vice President/Senior Portfolio Manager of Delaware
Management Company, Inc., each of the tax-exempt funds
and the fixed income funds in the Delaware Group and
Delaware Capital Management, Inc.
* Business address of each is 1818 Market Street, Philadelphia, PA 19103.
<PAGE> 65
PART C - Other Information
(Continued)
Name and Principle Positions and Offices with the Manager and its
Business Address * Affiliates and Other Positions and Offices Held
- ------------------ -----------------------------------------------
Patrick P. Coyne Vice President/Senior Portfolio Manager of Delaware
Management Company, Inc., each of the tax-exempt funds
and the fixed income funds in the Delaware Group and
Delaware Capital Management, Inc.
Roger A. Early Vice President/Senior Portfolio Manager of Delaware
Management Company, Inc., each of the tax-exempt funds
and the fixed income funds in the Delaware Group
Mitchell L. Conery(5) Vice President/Senior Portfolio Manager of Delaware
Management Company, Inc., and each of the tax-exempt
and fixed income funds in the Delaware Group
George H. Burwell Vice President/Senior Portfolio Manager of Delaware
Management Company, Inc., the Registrant and each of
the equity funds in the Delaware Group
John B. Fields Vice President/Senior Portfolio Manager of Delaware
Management Company, Inc., the Registrant and each of
the equity funds in the Delaware Group and Delaware
Capital Management, Inc.
Gerald S. Frey(6) Vice President/Senior Portfolio Manager of Delaware
Management Company, Inc., the Registrant and each of
the equity funds in the Delaware Group
Elizabeth H. Howell(7) Vice President/Senior Portfolio Manager of Delaware
Management Company, Inc.
Christopher Beck Vice President/Senior Portfolio Manager of Delaware
Management Company, Inc., the Registrant and each of
the equity funds in the Delaware Group
Andrew M. McCullagh(8) Vice President/Senior Portfolio Manager of Delaware
Management Company, Inc.
* Business address of each is 1818 Market Street, Philadelphia, PA 19103.
<PAGE> 66
PART C - Other Information
(continued)
Name and Principle Positions and Offices with the Manager and its
Business Address * Affiliates and Other Positions and Offices Held
- ------------------ -----------------------------------------------
Paul Grillo Vice President/Portfolio Manager of Delaware Management
Company, Inc., and each of the tax-exempt and fixed
income funds in the Delaware Group
William H. Miller Vice President/Assistant Portfolio Manager of Delaware
Management Company, Inc.
- ----------
(1) SENIOR MANAGER, Ernst & Young LLP prior to December 1996.
(2) TAX MANAGER, Price Waterhouse LLP prior to October 1995.
(3) SENIOR ASSOCIATE, FAS, Coopers & Lybrand LLP prior to October 1995.
(4) CORPORATE CONTROLLER, IIS prior to July 1997 and DIRECTOR, FINANCIAL
PLANNING, Decision One prior to March 1996.
(5) INVESTMENT OFFICER, Travelers Insurance prior to January 1997.
(6) SENIOR DIRECTOR, Morgan Grenfell Capital Management prior to June 1996.
(7) SENIOR PORTFOLIO MANAGER, Voyageur Fund Managers, Inc. prior to May
1997.
(8) SENIOR PORTFOLIO MANAGER, Voyageur Asset Management LLC prior to April
1997.
<PAGE> 67
PART C - Other Information
(continued)
Vantage Global Advisors, Inc. ("Vantage"), 630 Fifth Avenue, New York,
NY 10111, is an indirect, wholly owned subsidiary of Lincoln National
Corporation and an affiliate of Delaware Management Company, Inc. Vantage
provides investment advice to pension plans, endowments, insurance and
commingled products. Vantage serves as sub-investment adviser to the Blue Chip
Fund series and the Quantum Fund series. The directors and officers of Vantage
are listed below. Unless otherwise indicated, the principal business address of
each person is 630 Fifth Avenue, New York, NY 10111.
Name and Principal Positions and Offices with Vantage Global Advisors,
Business Address Inc. and its Principal Affiliates and Other Positions
and Offices Held
- ------------------ -------------------------------------------------------
T. Scott Wittman President, Chief Investment Officer and Director of
Vantage Global Advisors, Inc.
Elliot M. Gartner Senior Vice President of Vantage Global Advisors, Inc.
John B. Guerard Senior Vice President of Vantage Global Advisors, Inc.
Marc C. Viani Vice President of Vantage Global Advisors, Inc.
Florence P. Leong Vice President of Vantage Global Advisors, Inc.
Evelyn M. Poy Vice President of Vantage Global Advisors, Inc.
*Dennis A. Blume Director of Vantage Global Advisors, Inc.
Senior Vice President and Director of Lincoln
Investment Management, Inc. since 1982, 200 East Berry
Street, Fort Wayne, IN; Director of Lynch & Mayer, Inc.
since 1996, 520 Madison Avenue, New York, NY
* Business address is 200 East Berry Street, Fort Wayne, IN 46802.
<PAGE> 68
PART C - Other Information
(continued)
Name and Principal Positions and Offices with Vantage Global Advisors,
Business Address Inc. and its Principal Affiliates and Other Positions
and Offices Held
- ------------------ -------------------------------------------------------
*H. Thomas McMeekin Director of Vantage Global Advisors, Inc.
President and Director of Lincoln Investment
Management, Inc., Lincoln National Convertible
Securities Fund, Inc., Lincoln National Income Fund,
Inc. since 1994; Executive Vice President and Chief
Investment Officer of Lincoln National Corporation
since 1994; President, Chief Executive Officer and
Director of Lincoln National Mezzanine Corporation, 200
East Berry Street, Fort Wayne, IN; Director of Lynch &
Mayer, Inc., 520 Madison Avenue, New York, NY
**Bruce D. Barton(1) Director of Vantage Global Advisors, Inc.
President and Chief Executive Officer of Delaware
Distributors, L.P. since 1996, 1818 Market Street,
Philadelphia, PA;
- ----------
(1) SENIOR VICE PRESIDENT AND DIRECTOR, Lincoln National Investment
Companies February 1996 to October 1996; VICE PRESIDENT, Lincoln
National Corporation May 1992 to October 1996.
* Business address is 200 East Berry Street, Fort Wayne, IN 46802.
** Business address is 1818 Market Street, Philadelphia, PA 19103
<PAGE> 69
PART C - Other Information
(continued)
Item 29. Principal Underwriters.
(a) Delaware Distributors, L.P. serves as principal underwriter for
all the mutual funds in the Delaware Group.
(b) Information with respect to each director, officer or partner of
principal underwriter:
<TABLE>
<CAPTION>
Name and Principal Positions and Offices Positions and Offices
Business Address * with Underwriter with Registrant
- ------------------ --------------------- ---------------------
<S> <C> <C>
Delaware Distributors, Inc. General Partner None
Delaware Management
Company, Inc. Limited Partner Investment Manager
Delaware Capital
Management, Inc. Limited Partner None
Bruce D. Barton President and Chief Executive None
Officer
David K. Downes Senior Vice President, Executive Vice
Chief Administrative Officer President/Chief
and Chief Financial Officer Operating Officer/
Chief Financial Officer
George M. Chamberlain, Jr. Senior Vice President/Secretary/ Senior Vice President/
General Counsel Secretary/General Counsel
Terrence P. Cunningham Senior Vice President/ Financial None
Institutions
Thomas E. Sawyer Senior Vice President/ None
National Sales Director
Dana B. Hall Senior Vice President/ None
Key Accounts
</TABLE>
* Business address of each is 1818 Market Street, Philadelphia, PA 19103.
<PAGE> 70
PART C - Other Information
(Continued)
<TABLE>
<CAPTION>
Name and Principal Positions and Offices Positions and Offices
Business Address * with Underwriter with Registrant
- ------------------ --------------------- ---------------------
<S> <C> <C>
Mac McAuliffe Senior Vice President/Sales None
Manager, Western Division
William F. Hostler Senior Vice President/ None
Marketing Services
J. Chris Meyer Senior Vice President/ None
Director Product Management
Stephen H. Slack Senior Vice President/Wholesaler None
William M. Kimbrough Senior Vice President/Wholesaler None
Daniel J. Brooks Senior Vice President/Wholesaler None
Richard J. Flannery Senior Vice President/Corporate Senior Vice President/
and International Affairs Corporate and
International Affairs
Bradley L. Kolstoe Senior Vice President/Western None
Division Sales Manager
Henry W. Orvin Senior Vice President/Eastern None
Division Sales Manager - Wire/
Regional Channel
Michael P. Bishof Senior Vice President and Treasurer/ Senior Vice
Manager, Investment Accounting President/Treasurer
Eric E. Miller Vice President/Assistant Secretary/ Vice President/
Deputy General Counsel Assistant Secretary/
Deputy General Counsel
Richelle S. Maestro Vice President/ Vice President/
Assistant Secretary Assistant Secretary
Steven T. Lampe Vice President/Taxation Vice President/Taxation
</TABLE>
* Business address of each is 1818 Market Street, Philadelphia, PA 19103.
<PAGE> 71
PART C - Other Information
(Continued)
<TABLE>
<CAPTION>
Name and Principal Positions and Offices Positions and Offices
Business Address * with Underwriter with Registrant
- ------------------ --------------------- ---------------------
<S> <C> <C>
Joseph H. Hastings Vice President/Corporate Senior Vice President/
Controller & Treasurer Corporate Controller
Lisa O. Brinkley Vice President/Compliance Vice President/
Compliance
Rosemary E. Milner Vice President/Legal Registrations Vice President/Legal
Registrations
Daniel H. Carlson Vice President/Strategic Marketing None
Diane M. Anderson Vice President/Plan Record Keeping None
and Administration
Anthony J. Scalia Vice President/Defined Contribution None
Sales, SW Territory
Courtney S. West Vice President/Defined Contribution None
Sales, NE Territory
Denise F. Guerriere Vice President/Client Services None
Gordon E. Searles Vice President/Client Services None
Julia R. Vander Els Vice President/Participant Services None
Jerome J. Alrutz Vice President/Retail Sales None
Joanne A. Mettenheimer Vice President/New Business None
Development
Scott Metzger Vice President/Business Development Vice President/Business
Development
Stephen C. Hall Vice President/Institutional Sales None
Gregory J. McMillan Vice President/ National Accounts None
</TABLE>
* Business address of each is 1818 Market Street, Philadelphia, PA 19103.
<PAGE> 72
PART C - Other Information
(Continued)
<TABLE>
<CAPTION>
Name and Principal Positions and Offices Positions and Offices
Business Address * with Underwriter with Registrant
- ------------------ --------------------- ---------------------
<S> <C> <C>
Christopher H. Price Vice President/Manager, None
Insurance
Stephen J. DeAngelis Vice President/Product None
Development
Zina DeVassal Vice President/Financial Institutions None
Andrew W. Whitaker Vice President/Financial Institutions None
Jesse Emery Vice President/ Marketing None
Communications
Darryl S. Grayson Vice President, Broker/Dealer None
Internal Sales
Susan T. Friestedt Vice President/Client Service None
Dinah J. Huntoon Vice President/Product None
Manager Equity
Soohee Lee Vice President/Fixed Income None
Product Management
Michael J. Woods Vice President/ UIT Product None
Management
Ellen M. Krott Vice President/Marketing None
Dale L. Kurtz Vice President/Marketing Support None
Holly W. Reimel Vice President/Manager, Key Accounts None
David P. Anderson Vice President/Wholesaler None
Lee D. Beck Vice President/Wholesaler None
</TABLE>
* Business address of each is 1818 Market Street, Philadelphia, PA 19103.
<PAGE> 73
PART C - Other Information
(Continued)
<TABLE>
<CAPTION>
Name and Principal Positions and Offices Positions and Offices
Business Address * with Underwriter with Registrant
- ------------------ --------------------- ---------------------
<S> <C> <C>
Gabriella Bercze Vice President/Wholesaler None
Terrence L. Bussard Vice President/Wholesaler None
William S. Carroll Vice President/Wholesaler None
William L. Castetter Vice President/Wholesaler None
Thomas J. Chadie Vice President/Wholesaler None
Thomas C. Gallagher Vice President/Wholesaler None
Douglas R. Glennon Vice President/Wholesaler None
Ronald A. Haimowitz Vice President/Wholesaler None
Christopher L. Johnston Vice President/Wholesaler None
Michael P. Jordan Vice President/Wholesaler None
Jeffrey A. Keinert Vice President/Wholesaler None
Thomas P. Kennett Vice President/ Wholesaler None
Debbie A. Marler Vice President/Wholesaler None
Nathan W. Medin Vice President/Wholesaler None
Roger J. Miller Vice President/Wholesaler None
Patrick L. Murphy Vice President/Wholesaler None
Stephen C. Nell Vice President/Wholesaler None
Julia A. Nye Vice President/Wholesaler None
</TABLE>
* Business address of each is 1818 Market Street, Philadelphia, PA 19103.
<PAGE> 74
PART C - Other Information
(Continued)
<TABLE>
<CAPTION>
Name and Principal Positions and Offices Positions and Offices
Business Address * with Underwriter with Registrant
- ------------------ --------------------- ---------------------
<S> <C> <C>
Joseph T. Owczarek Vice President/Wholesaler None
Mary Ellen Pernice-Fadden Vice President/Wholesaler None
Mark A. Pletts Vice President/Wholesaler None
Philip G. Rickards Vice President/Wholesaler None
Laura E. Roman Vice President/Wholesaler None
Linda Schulz Vice President/Wholesaler None
Edward B. Sheridan Vice President/Wholesaler None
Robert E. Stansbury Vice President/Wholesaler None
Julia A. Stanton Vice President/Wholesaler None
Larry D. Stone Vice President/Wholesaler None
Edward J. Wagner Vice President/Wholesaler None
Wayne W. Wagner Vice President/Wholesaler None
Scott Whitehouse Vice President/Wholesaler None
John A. Wells Vice President/Marketing Technology None
</TABLE>
(c) Not Applicable.
* Business address of each is 1818 Market Street, Philadelphia, PA 19103.
<PAGE> 75
PART C - Other Information
(continued)
Item 30. Location of Accounts and Records.
All accounts and records are maintained in Philadelphia at 1818 Market
Street, Philadelphia, PA 19103 or One Commerce Square, Philadelphia, PA
19103.
Item 31. Management Services.
None.
Item 32. Undertakings.
(a) Not Applicable.
(b) Not Applicable.
(c) The Registrant hereby undertakes to furnish each person to whom
a prospectus is delivered with a copy of the Registrant's latest
annual report to shareholders, upon request and without charge.
(d) The Registrant hereby undertakes to promptly call a meeting of
shareholders for the purpose of voting upon the question of
removal of any director when requested in writing to do so by
the record holders of not less than 10% of the outstanding
shares.
<PAGE> 76
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933 and the Investment
Company Act of 1940, this Registrant certifies that it meets all of the
requirements for effectiveness of this Registration Statement pursuant to Rule
485(b) under the Securities Act of 1933 and has duly caused this Registration
Statement to be signed on its behalf by the undersigned, thereunto duly
authorized, in this City of Philadelphia and Commonwealth of Pennsylvania on
this 21st day of August, 1997.
DELAWARE GROUP EQUITY FUNDS II, INC.
(formerly known as Delaware Group Decatur Fund, Inc.)
By /s/Wayne A. Stork
---------------------------
Wayne A. Stork
Chairman of the Board, President,
Chief Executive Officer and Director
Pursuant to the requirements of the Securities Act of 1933, this Registration
Statement has been signed below by the following persons in the capacities and
on the dates indicated:
<TABLE>
<CAPTION>
Signature Title Date
- ------------------------ ------------------------------------------ ---------------
<S> <C> <C>
Chairman of the Board, President,
/s/Wayne A. Stork Chief Executive Officer and Director August 21, 1997
- ------------------------------
Wayne A. Stork
Executive Vice President/Chief Operating
Officer/Chief Financial Officer (Principal
Financial Officer and Principal Accounting
/s/David K. Downes Officer) August 21, 1997
- ------------------------------
David K. Downes
/s/Walter A. Babich * Director August 21, 1997
- ------------------------------
Walter A. Babich
/s/Anthony D. Knerr * Director August 21, 1997
- ------------------------------
Anthony D. Knerr
/s/Ann R. Leven * Director August 21, 1997
- ------------------------------
Ann R. Leven
/s/W. Thacher Longstreth * Director August 21, 1997
- ------------------------------
W. Thacher Longstreth
/s/Thomas F. Madison * Director August 21, 1997
- ------------------------------
Thomas F. Madison
/s/Jeffrey J. Nick * Director August 21, 1997
- ------------------------------
Jeffrey J. Nick
/s/Charles E. Peck * Director August 21, 1997
- ------------------------------
Charles E. Peck
* By /s/Wayne A. Stork
Wayne A. Stork
as Attorney-in-Fact for
each of the persons indicated
</TABLE>
<PAGE> 77
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
Exhibits
to
Form N-1A
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933
<PAGE> 78
INDEX TO EXHIBITS
<TABLE>
<CAPTION>
Exhibit No. Exhibit
- ----------- -------
<S> <C>
EX-99.B1C Executed Articles Supplementary (March 24, 1997)
EX-99.B1D Executed Articles of Amendment (March 24, 1997)
EX-99.B9BI Executed Amendment No. 4 (February 24, 1997) to Delaware Group of
Funds Fund Accounting Agreement
EX-99.B9BII Executed Amendment No. 4A (April 14, 1997) to Delaware Group of
Funds Fund Accounting Agreement
EX-99.B9BIII Executed Amendment No. 5 (May 1, 1997) to Delaware Group of Funds
Fund Accounting Agreement
EX-99.B9BIV Executed Amendment No. 6 (June 21, 1997) to Delaware Group of Funds
Fund Accounting Agreement
EX-99.B11 Consent of Auditors
EX-99.B16B Schedules of Computation for each Performance Quotation for periods not
previously electronically filed
EX-99.B19 Power of Attorney for Thomas F. Madison and Jeffrey J. Nick
EX-99.27 Financial Data Schedules for the Semi-Annual period ended
May 31, 1997 for each fund and for the period ended July
31, 1997 for the Blue Chip and Quantum Funds
</TABLE>
<PAGE> 1
EXHIBIT 99.B1C
DELAWARE GROUP EQUITY FUNDS II, INC.
ARTICLES SUPPLEMENTARY
TO
ARTICLES OF INCORPORATION
Delaware Group Equity Funds II, Inc. (formerly known as Delaware Group
Decatur Fund, Inc.), a Maryland corporation having its principal office in
Baltimore, Maryland (the "Corporation"), hereby certifies, in accordance with
Section 2-208 and Section 2-208.1 of the Maryland General Corporation Law, to
the State Department of Assessments and Taxation of Maryland that:
FIRST: The Corporation has authority to issue a total of Seven Hundred
Fifty Million (750,000,000) shares of common stock with a par value of One
Dollar ($1.00) per share of the Corporation (the "Common Stock"), having an
aggregate par value of Seven Hundred Fifty Million Dollars ($750,000,000). Of
such Seven Hundred Fifty Million (750,000,000) shares of Common Stock, Five
Hundred Million (500,000,000) shares have been allocated to the Decatur Income
Fund series of the Common Stock and Two Hundred Fifty Million (250,000,000)
shares have been allocated to the Decatur Total Return Fund series of the Common
Stock. The Five Hundred Million (500,000,000) shares of the Decatur Income Fund
series of the Common Stock have been allocated among four classes as follows:
(1) Three Hundred Fifty Million (350,000,000) shares have been allocated to the
Decatur Income Fund A Class, and (2) Fifty Million (50,000,000) shares have been
allocated to each of the Decatur Income Fund institutional Class, the Decatur
Income Fund B Class and the Decatur Income Fund C Class. The Two Hundred Fifty
Million (250,000,000) shares of the Decatur Total Return Fund series of the
Common Stock have been allocated among four classes as follows: (1) One Hundred
Million (100,000,000) shares have been allocated to the Decatur Total Return
Fund A Class, and (2) Fifty Million (50,000,000) shares have been allocated to
each of the Decatur Total Return Fund Institutional Class, the Decatur Total
Return Fund B Class and the Decatur Total Return Fund C Class,
SECOND: The Board of Directors of the Corporation, at a meeting held on
December 19, 1996, adopted resolutions reallocating One Hundred Fifty Million
(150,000,000) shares of the Common Stock that had previously been allocated to
the Decatur Income Fund A Class to the category of shares of Common Stock
of the Corporation that are authorized, unissued, unclassified and unallocated.
<PAGE> 2
THIRD: The Board of Directors of the Corporation, at a meeting held on
December 19, 1996, adopted resolutions increasing the aggregate number of shares
of Common Stock that the Corporation has authority to issue from Seven Hundred
Fifty Million (750,000,000) shares to One Billion (1,000,000,000) shares,
designating two additional series of the Corporation's Common Stock as the Blue
Chip Fund series and the Quantum Fund series, and classifying and allocating Two
Hundred Million (200,000,000) shares of authorized, unissued and unclassified
Common Stock to each of the Blue Chip Fund series and the Quantum Fund series.
The Two Hundred Million (200,000,000) shares of the Common Stock which have been
allocated to the Blue Chip Fund series have been further allocated as follows:
(1) One Hundred Million (100,000,000) shares of the Blue Chip Fund series of the
Common Stock have been allocated to the Blue Chip Fund A Class, (2) Fifty
Million (50,000,000) shares of the Blue Chip Fund series of the Common Stock
have been allocated to the Blue Chip Fund Institutional Class, and (3)
Twenty-Five Million (25,000,000) shares of the Blue Chip Fund series of the
Common Stock have been allocated to each of the Blue Chip Fund B Class and the
Blue Chip Fund C Class. The Two Hundred Million (200,000,000) shares of the
Common Stock which have been allocated to the Quantum Fund series have been
further allocated as follows: (1) One Hundred Million (100,000,000) shares of
the Quantum Fund series of the Common Stock have been allocated to the Quantum
Fund A Class, (2) Fifty Million (50,000,000) shares of the Quantum Fund series
of the Common Stock have been allocated to the Quantum Fund Institutional Class,
and (3) Twenty-Five Million (25,000,000) shares of the Quantum Fund series of
the Common Stock have been allocated to each of the Quantum Fund B Class and the
Quantum Fund C Class.
FOURTH: As a result of the aforesaid reclassification and increase in
the authorized Common Stock, the Corporation has authority to issue One Billion
(1,000,000,000) shares of Common Stock with a par value of One Dollar ($1.00)
per share, having an aggregate par value of One Billion Dollars
($1,000,000,000). Of such one Billion (1,000,000,000) shares of Common Stock,
One Billion (1,000,000,000) shares of the Common Stock have been allocated as
follows: (1) Three Hundred Fifty Million (350,000,000) shares have been
allocated to the Decatur Income Fund series, (2) Two Hundred Fifty Million
(250,000,000) shares have been allocated to the Decatur Total Return Fund
series, (3) Two Hundred Million (200,000,000) shares have been allocated to the
Blue Chip Fund series, and (4) Two Hundred Million (200,000,000) shares have
been allocated to the Quantum Fund series. The Three Hundred Fifty Million
(350,000,000) shares of the Corporation's Common Stock which have been allocated
to the Decatur income Fund series have been further classified and allocated as
follows: (1) Two Hundred Million (200,000,000) shares have been allocated to the
Decatur Income Fund A Class, and (2) Fifty million (50,000,000) shares have been
allocated to
-2-
<PAGE> 3
each of the Decatur Income Fund Institutional Class, the Decatur Income Fund B
Class and the Decatur Income Fund C Class. The Two Hundred Fifty Million
(250,000,000) shares of the Corporation's Common Stock which have been allocated
to the Decatur Total Return Fund series have been further classified and
allocated as follows: (1) One Hundred Million (100,000,000) shares have been
allocated to the Decatur Total Return Fund A Class, and (2) Fifty Million
(50,000,000) shares have been allocated to each of the Decatur Total Return Fund
Institutional class, the Decatur Total Return Fund B Class and the Decatur Total
Return Fund C Class. The Two Hundred Million (200,000,000) shares of the
Corporation's Common Stock which have been allocated to the Blue Chip Fund
series have been further classified and allocated as follows: (1) One Hundred
Million (100,000,000) shares have been allocated to the Blue Chip Fund A Class,
(2) Fifty Million (50,000,000) shares have been allocated to the Blue Chip Fund
Institutional Class, and (3) Twenty-Five Million (25,000,000) shares have been
allocated to each of the Blue Chip Fund B Class and the Blue Chip Fund C Class.
The Two Hundred Million (200,000,000) shares of the Corporation's Common Stock
which have been allocated to the Quantum Fund series have been further
classified and allocated as follows: (i) One Hundred Million (100,000,000)
shares have been allocated to the Quantum Fund A Class, (2) Fifty Million
(50,000,000) shares have been allocated to the Quantum Fund Institutional Class,
and (3) Twenty-Five Million (25,000,000) shares have been allocated to each of
the Quantum Fund B Class and the Quantum Fund C Class.
FIFTH: The shares of the Blue Chip Fund A Class, the Blue Chip Fund B
Class, the Blue Chip Fund C Class and the Blue Chip Fund Institutional Class of
the Blue Chip Fund series shall represent proportionate interests in the same
portfolio of investments. The shares of the Quantum Fund A Class, the Quantum
Fund B Class, the Quantum Fund C Class and the Quantum Fund Institutional Class
of the Quantum Fund series shall represent proportionate interests in the same
portfolio of investments. The shares of the Blue Chip Fund A Class, the Blue
Chip Fund B Class, the Blue Chip Fund C Class and the Blue Chip Fund
Institutional Class of the Blue Chip Fund series, and the shares of the Quantum
Fund A Class, the Quantum Fund B Class, the Quantum Fund C Class and the Quantum
Fund Institutional Class of the Quantum Fund series, shall have the same
preferences, conversion or other rights, voting powers, restrictions,
limitations as to dividends, qualifications, or terms or conditions of
redemption, all as set forth in the Articles of incorporation of the
Corporation, except for the differences hereinafter set forth:
1. The dividends and distributions of investment income and capital
gains with respect to shares of the Blue Chip Fund A Class, the Blue
Chip Fund B Class, the Blue Chip Fund C Class and the Blue Chip Fund
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<PAGE> 4
Institutional Class of the Blue Chip Fund series of the Common Stock,
and the dividends and distributions of investment income and capital
gains with respect to shares of the Quantum Fund A Class, the Quantum
Fund B Class, the Quantum Fund C Class and the Quantum Fund
Institutional Class of the Quantum Fund series of the Common Stock,
shall be in such amounts as may be declared from time to time by the
Board of Directors, and such dividends and distributions may vary with
respect to each such class from the dividends and distributions of
investment income and capital gains with respect to the other classes
of the Blue Chip Fund series and the Quantum Fund series of the Common
Stock, respectively, to reflect differing allocations of the expenses
of the Corporation among the classes and any resultant difference among
the net asset values per share of the classes, to such extent and for
such purposes as the Board of Directors may deem appropriate. The
allocation of investment income and capital gains and expenses and
liabilities of the Blue Chip Fund series among its four classes of
Common Stock, and the allocation of investment income and capital gains
and expenses and liabilities of the Quantum Fund series among its four
classes of Common Stock, shall be determined by the Board of Directors
in a manner that is consistent with the orders, as applicable, dated
April 10, 1987 and September 6, 1994 (Investment Company Act of 1940
Release Nos. 15675 and 20529) issued by the Securities and Exchange
Commission, and any amendments to such orders, any existing or future
order or any multiple Class Plan adopted by the Corporation in
accordance with Rule 18f3 under the Investment Company Act Of 1940, as
amended, that modifies or supersedes such orders.
2. (a) Except as may otherwise be required by law, pursuant to any
applicable order, rule or interpretation issued by the Securities and
Exchange commission, or otherwise, the holders of shares of the Blue
Chip Fund A Class, the Blue Chip Fund B Class, the Blue Chip Fund C
Class and the Blue Chip Fund Institutional Class of the Blue Chip Fund
series of the Common Stock shall have (i) exclusive voting rights with
respect to any matter submitted to a vote of stockholders that affects
only holders of shares of the Blue Chip Fund A Class, the Blue Chip
Fund B Class, the Blue Chip Fund C Class and the Blue Chip Fund
Institutional Class of the Blue Chip Fund series, respectively,
including, without limitation, the provisions of any Distribution Plan
adopted pursuant to Rule 12b-1 under the Investment Company Act of
1940, as amended (a "Distribution Plan"), applicable to shares
-4-
<PAGE> 5
of the Blue Chip Fund A Class, the Blue Chip Fund B Class and the Blue
Chip Fund C Class, and (ii) no voting rights with respect to the
provisions of any Distribution Plan applicable to any other class of
the Blue Chip Fund series of the Common Stock or with regard to any
other matter submitted to a vote of stockholders which does not affect
holders of shares of the Blue Chip Fund A Class, the Blue Chip Fund B
Class and the Blue Chip Fund C Class.
(b) Except as may otherwise be required by law, pursuant to any
applicable order, rule or interpretation issued by the Securities and
Exchange Commission, or otherwise, the holders of shares of the Quantum
Fund A Class, the Quantum Fund B Class, the Quantum Fund C Class and
the Quantum Fund Institutional Class of the Quantum Fund series of the
Common Stock shall have (i) exclusive voting rights with respect to any
matter submitted to a vote of stockholders that affects only holders of
shares of the Quantum Fund A Class, the Quantum Fund B Class, the
Quantum Fund C class and the Quantum Fund Institutional Class of the
Quantum Fund series, respectively, including, without limitation, the
provisions of any Distribution Plan applicable to shares of the Quantum
Fund A Class, the Quantum Fund B Class and the Quantum Fund C Class,
and (ii) no voting rights with respect to the provisions of any
Distribution Plan applicable to any other class of the Quantum Fund
series of the Common Stock or with regard to any other matter submitted
to a vote of stockholders which does not affect holders of shares of
the Quantum Fund A Class, the Quantum Fund B Class and the Quantum Fund
C Class.
3. (a) Other than shares described in paragraph (3)(b) herein, each
share of the Blue Chip Fund B Class and the Quantum Fund B Class shall
be converted automatically, and without any action or choice on the
part of the holder thereof, into shares of the Blue Chip Fund A Class
and the Quantum Fund A Class, respectively, on the Conversion Date. The
term "Conversion Date" when used herein shall mean a date set forth in
the prospectuses of the Blue Chip Fund B Class and the Quantum Fund B
Class, as such prospectuses may be amended from time to time, that is
no later than three months after either (i) the date an which the
eighth anniversary of the date of issuance of the share occurs, or (ii)
any such other anniversary date as may be determined by the Board of
Directors and set forth in the prospectuses of the Blue Chip Fund B
Class and the Quantum Fund B Class, as such prospectuses may be amended
from time to time; provided
-5-
<PAGE> 6
that any such other anniversary date determined by the Board of
Directors shall be a date that will occur prior to the anniversary date
set forth in clause (i) and any such other date theretofore determined
by the Board of Directors pursuant to this clause (ii); but further
provided that, subject to the provisions of the next sentence, for any
shares of the Blue Chip Fund B Class or of the Quantum Fund B Class,
respectively, acquired through an exchange, or through a series of
exchanges, as permitted by the Corporation as provided in the
prospectuses of the Blue Chip Fund B Class and of the Quantum Fund B
Class, as such prospectuses may be amended from time to time, from
another investment company or another series of the Corporation (an
"eligible investment company"), the Conversion Date shall be the
conversion date applicable to the shares of stock of the eligible
investment company originally subscribed for in lieu of the Conversion
Date of any stock acquired through exchange if such eligible investment
company issuing the stock originally subscribed for had a conversion
feature, but not later than the Conversion Date determined under
(i) above. For the purpose of calculating the holding period required
for conversion, the date of issuance of a share of the Blue Chip Fund B
Class or of a share of the Quantum Fund B Class shall mean (i) in the
case of a share of the Blue Chip Fund B Class or a share of the Quantum
Fund B Class obtained by the holder thereof through an original
subscription to the Corporation, the date of the issuance of such share
of the Blue Chip Fund B Class or such share of the Quantum Fund B
Class, as appropriate, or (ii) in the case of a share of the Blue Chip
Fund B Class or a share of the Quantum Fund B Class obtained by the
holder thereof through an exchange, or through a series of exchanges,
from an eligible investment company, the date of issuance of the share
of the eligible investment company to which the holder originally
subscribed.
(b) Each share of the Blue Chip Fund B Class and of the
Quantum Fund B Class (i) purchased through the automatic reinvestment
of a dividend or distribution with respect to the Blue Chip Fund B
Class, the Quantum Fund B Class or the corresponding class of any other
investment company or of any other series of the Corporation issuing
such class of shares or (ii) issued pursuant to an exchange privilege
granted by the Corporation in an exchange or series of exchanges for
shares originally purchased through the automatic reinvestment of a
dividend or distribution with respect to shares of capital stock of an
eligible investment company, shall be segregated in a separate
sub-account
-6-
<PAGE> 7
on the stock records of the Corporation for each of the holders of
record thereof. On any Conversion Date, a number of the shares held in
the separate sub-account of the holder of record of the share or shares
being converted, calculated in accordance with the next following
sentence, shall be converted automatically, and without any action or
choice on the part of the holder, into shares of the Blue Chip Fund A
Class or the Quantum Fund A Class, as appropriate. The number of shares
in the holder's separate sub-account so converted shall (i) bear the
same ratio to the total number of shares maintained in the separate
sub-account on the Conversion Date (immediately prior to conversion) as
the number of shares of the holder converted on the Conversion Date
pursuant to paragraph (3)(a) hereof bears to the total number of Blue
Chip Fund B Class shares or Quantum Fund B Class of shares, as
appropriate, of the holder on the Conversion Date (immediately prior to
conversion) after subtracting the shares then maintained in the
holder's separate subaccount, or (ii) be such other number as may be
calculated in such other manner as may be determined by the Board of
Directors and set forth in the prospectuses of the Blue Chip Fund B
Class and of the Quantum Fund B Class, as such prospectuses may be
amended from time to time.
(c) The number of shares of the Blue Chip Fund A Class into
which a share of the Blue Chip Fund B Class, and the number of shares
of the Quantum Fund A Class into which a share of the Quantum Fund B
Class, are converted pursuant to paragraphs 3(a) and 3(b) hereof shall
equal the number (including for this purpose fractions of a share)
obtained by dividing the net asset value per share of the Blue Chip
Fund B Class or of the Quantum Fund B Class, as appropriate, for
purposes of sales and redemption thereof on the Conversion Date by the
net asset value per share of the Blue Chip Fund A Class or of the
Quantum Fund A Class, as appropriate, for purposes of sales and
redemption thereof on the Conversion Date.
(d) On the Conversion Date, the shares of the Blue Chip Fund B
Class converted into shares of the Blue Chip Fund A Class, and the
shares of the Quantum Fund B Class converted into shares of the Quantum
Fund A class, will no longer be deemed outstanding and the rights of
the holders thereof (except the right to receive (i) the number of
shares of the Blue Chip Fund A Class into which the shares of the Blue
Chip Fund B Class have been converted, or the number of shares of the
Quantum Fund A Class into which the shares of the
-7-
<PAGE> 8
Quantum Fund B Class have been converted, as appropriate, and (ii)
declared but unpaid dividends to the Conversion Date or such other date
set forth in the prospectuses of the Blue Chip Fund B Class or of the
Quantum Fund B Class, as appropriate, as such prospectuses may be
amended from time to time and (iii) the right to vote converting shares
of the Blue Chip Fund B Class or of the Quantum Fund B Class, as
appropriate, held as of any record date occurring on or before the
Conversion Date and theretofore set with respect to any meeting held
after the Conversion Date) will cease. Certificates representing shares
of the Blue Chip Fund A Class or the Quantum Fund A Class, as
appropriate, resulting from the conversion need not be issued until
certificates representing shares of the Blue Chip Fund B Class or the
Quantum Fund B Class, as appropriate, converted, if issued, have been
received by the Corporation or its agent duly endorsed for transfer.
(e) The automatic conversions of the Blue Chip Fund B Class
into the Blue Chip Fund A Class, and of the Quantum Fund B Class into
the Quantum Fund A Class, as set forth in paragraphs 3(a) and 3(b) of
this Article FIFTH shall be suspended at any time that the Board of
Directors determines (i) that there is not available a reasonably
satisfactory opinion of counsel to the effect that (x) the assessment
of the higher fee under the Distribution Plan with respect to the Blue
Chip Fund B Class or the Quantum Fund B Class, as appropriate, does not
result in the Corporation's dividends or distributions constituting a
"preferential dividend" under the Internal Revenue Code of 1986, as
amended, and (y) the conversion of the Blue Chip Fund B Class or the
Quantum Fund B Class, as appropriate, does not constitute a taxable
event under federal income tax law, or (ii) any other condition to
conversion set forth in the prospectuses of the Blue Chip Fund B Class
or the Quantum Fund B Class, as appropriate, as such prospectuses may
be amended from time to time, is not satisfied.
(f) The automatic conversion of the Blue Chip Fund B Class
into Blue Chip Fund A Class, and of the Quantum Fund B Class into the
Quantum Fund A Class, as set forth in paragraphs 3(a) and 3(b) hereof,
may also be suspended by action of the Board of Directors at any time
that the Board of Directors determines such suspension to be
appropriate in order to comply with, or satisfy the requirements of the
Investment Company Act of 1940, as amended, and in effect from time to
time, or any rule, regulation or order issued
-8-
<PAGE> 9
thereunder relating to voting by the holders of the Blue Chip Fund B
Class or the Quantum Fund B Class, as appropriate, on any Distribution
Plan with respect to, as relevant, the Blue Chip Fund A Class or the
Quantum Fund A Class, as appropriate, and in effect from time to time,
and in connection with, or in lieu of, any such suspension, the Board
of Directors may provide holders of the Blue Chip Fund B Class or of
the Quantum Fund B Class, as appropriate, with alternative conversion
or exchange rights into other classes of stock of the Corporation in a
manner consistent with the law, rule, regulation or order giving rise
to the possible suspension of the conversion right.
4. (a) The shares of the Blue Chip Fund C Class and the Blue Chip Fund
Institutional Class shall not automatically convert into shares of the
Blue Chip Fund A Class of the Blue Chip Fund series of the Common Stock
as do the shares of the Blue Chip B Class of the Blue Chip Fund series
of the Common Stock.
(b) The shares of the Quantum Fund C Class and the Quantum Fund
Institutional Class shall not automatically convert into shares of the
Quantum Fund A Class of the Quantum Fund series of the Common Stock as
do the shares of the Quantum Fund B Class of the Quantum Fund series of
the Common Stock.
SIXTH: The shares of the Blue Chip Fund A Class, the Blue Chip Fund B
Class, the Blue Chip Fund C Class and the Blue Chip Fund Institutional Class of
the Blue Chip Fund series, as well as the shares of the Quantum Fund A Class,
the Quantum Fund B Class, the Quantum Fund C Class and the Quantum Fund
Institutional Class of the Quantum Fund series, have been classified by the
Board of Directors pursuant to authority contained in the Articles of
Incorporation of the Corporation.
SEVENTH: The Corporation is registered as an open-end management
investment company under the Investment Company Act of 1940, as amended,
EIGHTH: The total number of shares of Common Stock that the Corporation
has authority to issue has been increased by the Board of Directors in
accordance with Section 2-105(c) of the Maryland General Corporation Law.
NINTH: These Articles Supplementary shall become effective immediately
upon filing.
-9-
<PAGE> 10
IN WITNESS WHEREOF, Delaware Group Equity Funds II, Inc. has caused
these Articles Supplementary to be signed in its name and on its behalf by its
Vice President and attested by its Assistant Secretary on this 24th day of
March, 1997.
DELAWARE GROUP EQUITY FUNDS II, INC.
By: /s/ ERIC E. MILLER
----------------------------------
Eric E. Miller
Vice President
ATTEST:
/s/ DAVID P. O'CONNOR
- --------------------------
David P. O'Connor
Assistant Secretary
-10-
<PAGE> 11
THE UNDERSIGNED, Vice President of DELAWARE GROUP EQUITY FUNDS II,
INC,, who executed on behalf of the said Corporation the foregoing Articles
Supplementary, of which this instrument is made a part, hereby acknowledges, in
the name of and on behalf of said Corporation, said Articles Supplementary to be
the corporate act of said Corporation and further certifies that, to the best of
his knowledge, information and belief, the matters and facts set forth therein
with respect to the authorization and approval thereof are true in all material
respects, under the penalties of perjury.
/s/ ERIC E. MILLER
------------------------------
Eric E., Miller
Vice President
-11-
<PAGE> 1
EXHIBIT 99.B1D
DELAWARE GROUP DECATUR FUND, INC.
ARTICLES OF AMENDMENT
TO
ARTICLES OF INCORPORATION
DELAWARE GROUP DECATUR FUND, INC., a Maryland corporation having its
principal office in Baltimore, Maryland (hereinafter called the "Corporation"),
hereby certifies to the State Department of Assessments and Taxation of Maryland
that;
FIRST: The Corporation is registered as an open-end management
investment company under the Investment Company Act of 1940, as amended.
SECOND: The first sentence of ARTICLE SECOND of the Articles of
Incorporation, as amended and supplemented, is hereby amended to read as
follows:
SECOND: The name of the corporation is Delaware Group Equity Funds II.
Inc.
THIRD: The Articles of Incorporation of the corporation, as amended and
supplemented, are further amended by changing the name of the Decatur Income
Fund Class of shares of the Decatur Income Fund series of the Common Stock to
the Decatur Income Fund A Class of shares; by changing the name of the Decatur
Income Fund (Institutional) Class of shares of the Decatur Income Fund series of
the Common Stock to the Decatur Income Fund Institutional Class of shares; and
by deleting the old names of such classes from the Articles of Incorporation, as
amended and supplemented to date, and inserting in lieu thereof, the new names
of such classes as changed hereby.
The names of the other two classes of the Common Stock of the Decatur
Income Fund series of the Common Stock of the Corporation (the Decatur Income
Fund B Class and the Decatur income Fund C Class) shall remain unchanged.
FOURTH: The Articles of Incorporation of the Corporation, as amended
and supplemented, are further amended by changing the name of the Decatur Total
Return Fund Class of shares of the Decatur Total Return Fund series of the
Common Stock to the Decatur Total Return Fund A Class of shares; by changing the
name of the Decatur Total Return Fund (Institutional) Class of shares of the
Decatur Total Return Fund series of the Common Stock to the Decatur Total Return
Fund Institutional Class of shares; and by deleting the old names of such
classes from the Articles of Incorporation, as amended and
<PAGE> 2
supplemented to date, and inserting in lieu thereof, the new names of such
classes as changed hereby.
The names of the other two classes of the Common Stock of the Decatur
Total Return Fund series of the Common Stock of the Corporation (the Decatur
Total Return Fund B Class and the Decatur Total Return Fund C Class) shall
remain unchanged.
FIFTH: The amendments to the Articles of Incorporation of the
corporation as set forth above have been duly approved by a majority of the
entire Board of Directors of the Corporation as required by law and are limited
to changes permitted by Section 2-605(a)(4) of the Maryland General Corporation
Law to be made without action by the stockholders of the Corporation.
SIXTH: The amendments to the Articles of incorporation of the
corporation as set forth above do not change the preferences, conversion or
other rights, voting powers, restrictions, limitations as to dividends,
qualifications, or terms or conditions of redemption of the shares that are the
subject of the name changes.
SEVENTH: The Articles of Amendment shall become effective immediately
upon filing.
IN WITNESS WHEREOF, DELAWARE GROUP DECATUR FUND, INC, has caused these
Articles of Amendment to be signed in its name and on its behalf by its Vice
President and attested by its Assistant Secretary on this 24th day of March,
1997.
DELAWARE GROUP DECATUR FUND, INC,
By: /s/ ERIC E. MILLER
--------------------------------
Eric E. Miller
Vice President
ATTEST:
/s/ DAVID P. O'CONNOR
- ----------------------------
David P. O'Connor
Assistant Secretary
-2-
<PAGE> 3
THE UNDERSIGNED, Vice President of DELAWARE GROUP DECATUR FUND, INC.,
who executed on behalf of said Corporation the foregoing Articles of Amendment,
of which this certificate is made a part, hereby acknowledges, in the name and
on behalf of said Corporation, the foregoing Articles of Amendment to be the
corporate act of said Corporation and further certifies that, to the best of his
knowledge, information and belief, the matters and facts set forth therein with
respect to the approval thereof are true in all material respects, under the
penalties of Perjury.
/s/ ERIC E. MILLER
--------------------------------
Eric E. Miller
Vice President
-3-
<PAGE> 1
EXHIBIT 99.B5C
ADVISORY AGREEMENT - TO COME
<PAGE> 1
EXHIBIT 99.B5F
SUB-ADVISORY AGREEMENT - TO COME
<PAGE> 1
AMENDMENT NO. 4 TO
SCHEDULE A
TO DELAWARE GROUP OF FUNDS*
FUND ACCOUNTING AGREEMENT
Delaware Group Cash Reserve, Inc.
Delaware Group Equity Funds II, Inc.
Decatur Income Fund
Decatur Total Return Fund
Blue Chip Fund (New)
Quantum Fund (New)
Delaware Group Equity Funds I, Inc.
Delaware Fund
Devon Fund
Delaware Group Tax-Free Money Fund, Inc.
Delaware Group Tax-Free Fund, Inc.
Tax-Free USA Fund
Tax-Free Insured Fund
Tax-Free USA Intermediate Fund
Delaware Group Limited-Term Government Funds, Inc.
Limited-Term Government Fund
U.S. Government Money Fund
Delaware Group Trend Fund, Inc.
Delaware Group Income Funds, Inc.
Delchester Fund
Strategic Income Fund
High-Yield Opportunities Fund (New)
*Except as otherwise noted, all Portfolios included on this Schedule A
are Existing Portfolios for purposes of the compensation described on Schedule B
to that Fund Accounting Agreement between Delaware Service Company, Inc. and the
Delaware Group of Funds dated as of August 19, 1996 ("Agreement"). All
portfolios added to this Schedule A by amendment executed by a Company on behalf
of such Portfolio hereof shall be a New Portfolio for purposes of Schedule B to
the Agreement. DMC Tax-Free Income Trust - Pennsylvania
1
<PAGE> 2
Delaware Group Equity Funds V, Inc.
Value Fund
Retirement Income Fund
Delaware Group Global & International Funds, Inc.
International Equity Fund
Global Bond Fund
Global Assets Fund
Emerging Markets Fund
Delaware Group Equity Funds IV, Inc.
DelCap Fund
Capital Appreciation Fund
Delaware Pooled Trust, Inc.
The Defensive Equity Portfolio
The Aggressive Growth Portfolio
The International Equity Portfolio
The Defensive Equity Small/Mid-Cap Portfolio The Defensive Equity
Utility Portfolio The Labor Select International Equity Portfolio
The Real Estate Investment Trust Portfolio The Fixed Income
Portfolio The Limited-Term Maturity Portfolio The Global Fixed
Income Portfolio The International Fixed Income Portfolio The
High-Yield Bond Portfolio
Delaware Group Premium Fund, Inc.
Equity/Income Series
High Yield Series
Capital Reserves Series
Money Market Series
Growth Series
Multiple Strategy Series
International Equity Series
Value Series
Emerging Growth Series
Global Bond Series
Delaware Group Government Fund, Inc.
2
<PAGE> 3
Delaware Group Adviser Funds, Inc.
Enterprise Fund
U.S. Growth Fund
World Growth Fund
New Pacific Fund
Federal Bond Fund
Corporate Income Fund
Dated as of: FEBRUARY 24, 1997
-----------------
DELAWARE SERVICE COMPANY, INC.
By: /s/ David K. Downes
-------------------------------------
David K. Downes
Senior Vice President/Chief
Administrative Officer/Chief
Financial Officer
DELAWARE GROUP CASH RESERVE, INC.
DELAWARE GROUP EQUITY FUNDS II, INC.
DELAWARE GROUP EQUITY FUNDS I, INC.
DELAWARE GROUP TAX-FREE FUND, INC.
DELAWARE GROUP TAX-FREE MONEY FUND,INC.
DELAWARE GROUP LIMITED-TERM GOVERNMENT FUNDS, INC.
DELAWARE GROUP TREND FUND, INC.
DELAWARE GROUP INCOME FUNDS, INC.
DMC TAX-FREE INCOME TRUST - PENNSYLVANIA
DELAWARE GROUP EQUITY FUNDS V, INC.
DELAWARE GROUP GLOBAL & INTERNATIONAL FUNDS, INC.
DELAWARE GROUP EQUITY FUNDS IV, INC.
DELAWARE GROUP PREMIUM FUND, INC.
DELAWARE GROUP GOVERNMENT FUND, INC.
DELAWARE GROUP ADVISER FUNDS, INC.
By: /s/ Wayne A. Stork
-------------------------------------
Wayne A. Stork
Chairman, President and
Chief Executive Officer
DELAWARE POOLED TRUST, INC.
By: /s/ Wayne A. Stork
-------------------------------------
Wayne A. Stork
Chairman
3
<PAGE> 1
EXHIBIT 99.B9BII
AMENDMENT NO. 4A
to
SCHEDULE A
of
DELAWARE GROUP OF FUNDS*
FUND ACCOUNTING AGREEMENT
Delaware Group Adviser Funds, Inc.
Corporate Income Fund
Enterprise Fund
Federal Bond Fund
New Pacific Fund
U.S. Growth Fund
World Growth Fund
Delaware Group Cash Reserve, Inc.
Delaware Group Equity Funds I, Inc. (formerly Delaware)
Delaware Fund
Devon Fund
Delaware Group Equity Funds II, Inc. (formerly Decatur)
Blue Chip Fund (New)
Decatur Income Fund
Decatur Total Return Fund
Quantum Fund (New)
Delaware Group Equity Funds IV, Inc. (formerly DelCap)
Capital Appreciation Fund (New)
DelCap Fund
Delaware Group Equity Funds V, Inc. (formerly Value)
Value Fund
Retirement Income Fund (New)
Delaware Group Government Fund, Inc.
Government Income Series (U.S. Government Fund)
- ----------
*Except as otherwise noted, all Portfolios included on this Schedule A
are Existing Portfolios for purposes of the compensation described on Schedule B
to that Fund Accounting Agreement between Delaware Service Company, Inc. and the
Delaware Group of Funds dated as of August 19, 1996 ("Agreement"). All
portfolios added to this Schedule A by amendment executed by a Company on behalf
of such Portfolio hereof shall be a New Portfolio for purposes of Schedule B to
the Agreement.
1
<PAGE> 2
Delaware Group Global & International Funds, Inc.
Emerging Markets Fund (New)
Global Assets Fund
Global Bond Fund
International Equity Fund
Delaware Group Income Funds, Inc. (formerly Delchester)
Delchester Fund
High-Yield Opportunities Fund (New)
Strategic Income Fund (New)
Delaware Group Limited-Term Government Funds, Inc.
Limited-Term Government Fund
U.S. Government Money Fund
Delaware Pooled Trust, Inc.
The Aggressive Growth Portfolio
The Defensive Equity Portfolio
The Defensive Equity Small/Mid-Cap Portfolio (New)
The Emerging Markets Portfolio (New)
The Fixed Income Portfolio
The Global Fixed Income Portfolio
The High-Yield Bond Portfolio (New)
The International Equity Portfolio
The International Fixed Income Portfolio (New)
The Labor Select International Equity Portfolio
The Limited-Term Maturity Portfolio (New)
The Real Estate Investment Trust Portfolio
Delaware Group Premium Fund, Inc.
Capital Reserves Series
Cash Reserve Series
Decatur Total Return Series
Delaware Series
Delchester Series
DelCap Series
Global Bond Series (New)
International Equity Series
Trend Series
Value Series
2
<PAGE> 3
Delaware Group Tax-Free Fund, Inc.
Tax-Free Insured Fund
Tax-Free USA Fund
Tax-Free USA Intermediate Fund
Delaware Group Tax-Free Money Fund, Inc.
Delaware Group Trend Fund, Inc.
DMC Tax-Free Income Trust - Pennsylvania (doing business as Tax-Free
Pennsylvania Fund)
Dated as of: April 14, 1997
3
<PAGE> 4
DELAWARE SERVICE COMPANY, INC.
By: /s/ David K. Downes
----------------------------
David K. Downes
President, Chief Executive Officer and Chief Financial Officer
DELAWARE GROUP ADVISER FUNDS, INC.
DELAWARE GROUP CASH RESERVE, INC.
DELAWARE GROUP EQUITY FUNDS I, INC.
DELAWARE GROUP EQUITY FUNDS II, INC.
DELAWARE GROUP EQUITY FUNDS IV, INC.
DELAWARE GROUP EQUITY FUNDS V, INC.
DELAWARE GROUP GOVERNMENT FUND, INC.
DELAWARE GROUP GLOBAL & INTERNATIONAL FUNDS, INC.
DELAWARE GROUP INCOME FUNDS, INC.
DELAWARE GROUP LIMITED-TERM GOVERNMENT FUNDS, INC.
DELAWARE GROUP PREMIUM FUND, INC.
DELAWARE GROUP TAX-FREE FUND, INC.
DELAWARE GROUP TAX-FREE MONEY FUND, INC.
DELAWARE GROUP TREND FUND, INC.
DMC TAX-FREE INCOME TRUST-PENNSYLVANIA
By: /s/ Wayne A. Stork
----------------------------
Wayne A. Stork
Chairman, President and
Chief Executive Officer
DELAWARE POOLED TRUST, INC.
By: /s/ Wayne A. Stork
----------------------------
Wayne A. Stork
President and
Chief Executive Officer
4
<PAGE> 1
EXHIBIT 99.B9BIII
AMENDMENT NO. 5
to
SCHEDULE A
of
DELAWARE GROUP OF FUNDS*
FUND ACCOUNTING AGREEMENT
Delaware Group Adviser Funds, Inc.
Corporate Income Fund
Enterprise Fund
Federal Bond Fund
New Pacific Fund
U.S. Growth Fund
World Growth Fund
Delaware Group Cash Reserve, Inc.
Delaware Group Equity Funds I, Inc. (formerly Delaware)
Delaware Fund
Devon Fund
Delaware Group Equity Funds II, Inc. (formerly Decatur)
Blue Chip Fund (New)
Decatur Income Fund
Decatur Total Return Fund
Quantum Fund (New)
Delaware Group Equity Funds IV, Inc. (formerly DelCap)
Capital Appreciation Fund (New)
DelCap Fund
Delaware Group Equity Funds V, Inc. (formerly Value)
Value Fund
Retirement Income Fund (New)
Delaware Group Government Fund, Inc.
Government Income Series (U.S. Government Fund )
- ----------
*Except as otherwise noted, all Portfolios included on this Schedule A
are Existing Portfolios for purposes of the compensation described on Schedule B
to that Fund Accounting Agreement between Delaware Service Company, Inc. and the
Delaware Group of Funds dated as of August 19, 1996 ("Agreement"). All
portfolios added to this Schedule A by amendment executed by a Company on behalf
of such Portfolio hereof shall be a New Portfolio for purposes of Schedule B to
the Agreement.
1
<PAGE> 2
Delaware Group Global & International Funds, Inc.
Emerging Markets Fund (New)
Global Assets Fund
Global Bond Fund
International Equity Fund
Delaware Group Income Funds, Inc. (formerly Delchester)
Delchester Fund
High-Yield Opportunities Fund (New)
Strategic Income Fund (New)
Delaware Group Limited-Term Government Funds, Inc.
Limited-Term Government Fund
U. S. Government Money Fund
Delaware Pooled Trust, Inc.
The Aggressive Growth Portfolio
The Defensive Equity Portfolio
The Defensive Equity Small/Mid-Cap Portfolio (New)
The Defensive Equity Utility Portfolio (New)
The Emerging Markets Portfolio (New)
The Fixed Income Portfolio
The Global Fixed Income Portfolio
The High-Yield Bond Portfolio (New)
The International Equity Portfolio
The International Fixed Income Portfolio (New)
The Labor Select International Equity Portfolio
The Limited-Term Maturity Portfolio (New)
The Real Estate Investment Trust Portfolio
Delaware Group Premium Fund, Inc.
Capital Reserves Series
Cash Reserve Series
Convertible Securities Series (New)
Decatur Total Return Series
Delaware Series
Delchester Series
Devon Series (New)
Emerging Markets Series (New)
DelCap Series
Global Bond Series (New)
International Equity Series
Quantum Series (New)
Strategic Income Series (New)
Trend Series
Value Series
2
<PAGE> 3
Delaware Group Tax-Free Fund, Inc.
Tax-Free Insured Fund
Tax-Free USA Fund
Tax-Free USA Intermediate Fund
Delaware Group Tax-Free Money Fund, Inc.
Delaware Group Trend Fund, Inc.
DMC Tax-Free Income Trust-Pennsylvania (doing business as Tax-Free Pennsylvania
Fund)
Voyageur Funds, Inc.
Voyageur U.S. Government Securities Fund (New)
Voyageur Insured Funds, Inc.
Arizona Insured Tax Free Fund (New)
Colorado Insured Fund (New)
Minnesota Insured Fund (New)
National Insured Tax Free Fund (New)
Voyageur Intermediate Tax Free Funds, Inc.
Arizona Limited Term Tax Free Fund (New)
California Limited Term Tax Free Fund (New)
Colorado Limited Term Tax Free Fund (New)
Minnesota Limited Term Tax Free Fund (New)
National Limited Term Tax Free Fund (New)
Voyageur Investment Trust
California Insured Tax Free Fund (New)
Florida Insured Tax Free Fund (New)
Florida Tax Free Fund (New)
Kansas Tax Free Fund (New)
Missouri Insured Tax Free Fund (New)
New Mexico Tax Free Fund (New)
Oregon Insured Tax Free Fund (New)
Utah Tax Free Fund (New)
Washington Insured Tax Free Fund (New)
3
<PAGE> 4
Voyageur Investment Trust II
Florida Limited Term Tax Free Fund (New)
Voyageur Mutual Funds, Inc.
Arizona Tax Free Fund (New)
California Tax Free Fund (New)
Iowa Tax Free Fund (New)
Idaho Tax Free Fund (New)
Minnesota High Yield Municipal Bond Fund (New)
National High Yield Municipal Bond Fund (New)
National Tax Free Fund (New)
New York Tax Free Fund (New)
Wisconsin Tax Free Fund (New)
Voyageur Mutual Funds II, Inc.
Colorado Tax Free Fund (New)
Voyageur Mutual Funds III, Inc.
Aggressive Growth Fund (New)
Growth Stock Fund (New)
International Equity Fund (New)
Tax Efficient Equity Fund (New)
Voyageur Tax Free Funds, Inc.
Minnesota Tax Free Fund (New)
North Dakota Tax Free Fund (New)
Dated as of May 1, 1997
4
<PAGE> 5
DELAWARE SERVICE COMPANY, INC.
By: /s/ David K. Downes
------------------------------------
David K. Downes
President, Chief Executive Officer and Chief Financial Officer
DELAWARE GROUP ADVISER FUNDS, INC.
DELAWARE GROUP CASH RESERVE, INC.
DELAWARE GROUP EQUITY FUNDS I, INC.
DELAWARE GROUP EQUITY FUNDS II, INC.
DELAWARE GROUP EQUITY FUNDS IV, INC.
DELAWARE GROUP EQUITY FUNDS V, INC.
DELAWARE GROUP GOVERNMENT FUND, INC.
DELAWARE GROUP GLOBAL & INTERNATIONAL FUNDS, INC.
DELAWARE GROUP INCOME FUNDS, INC.
DELAWARE GROUP LIMITED -TERM GOVERNMENT FUNDS, INC.
DELAWARE POOLED TRUST, INC.
DELAWARE GROUP PREMIUM FUND, INC.
DELAWARE GROUP TAX-FREE FUND, INC.
DELAWARE GROUP TAX FREE MONEY FUND, INC.
DELAWARE GROUP TREND FUND, INC.
DMC TAX-FREE INCOME TRUST-PENNSYLVANIA
VOYAGEUR FUNDS, INC.
VOYAGEUR INSURED FUNDS, INC.
VOYAGEUR INTERMEDIATE TAX FREE FUNDS, INC.
VOYAGEUR INVESTMENT TRUST
VOYAGEUR INVESTMENT TRUST II
VOYAGEUR MUTUAL FUNDS, INC.
VOYAGEUR MUTUAL FUNDS II, INC.
VOYAGEUR MUTUAL FUNDS III, INC.
By: /s/ Wayne A. Stork
------------------------------------
Wayne A. Stork
Chairman, President and
Chief Executive Officer
5
<PAGE> 1
EXHIBIT 99.B9BIV
AMENDMENT NO. 6
TO
SCHEDULE A
OF
DELAWARE GROUP OF FUNDS*
FUND ACCOUNTING AGREEMENT
Delaware Group Adviser Funds, Inc.
Corporate Income Fund
Enterprise Fund
Federal Bond Fund
New Pacific Fund
U.S. Growth Fund
World Growth Fund
Delaware Group Cash Reserve, Inc.
Delaware Group Equity Funds I, Inc. (formerly Delaware)
Delaware Fund
Devon Fund
Delaware Group Equity Funds II, Inc. (formerly Decatur)
Blue Chip Fund (New)
Decatur Income Fund
Decatur Total Return Fund
Quantum Fund (New)
Delaware Group Equity Funds IV, Inc. (formerly DelCap)
Capital Appreciation Fund (New)
DelCap Fund
Delaware Group Equity Funds V, Inc. (formerly Value)
Value Fund
Retirement Income Fund (New)
Delaware Group Government Fund, Inc.
Government Income Series (U.S. Government Fund )
- ----------
*Except as otherwise noted, all Portfolios included on this Schedule A
are Existing Portfolios for purposes of the compensation described on Schedule B
to that Fund Accounting Agreement between Delaware Service Company, Inc. and the
Delaware Group of Funds dated as of August 19, 1996 ("Agreement"). All
portfolios added to this Schedule A by amendment executed by a Company on behalf
of such Portfolio hereof shall be a New Portfolio for purposes of Schedule B to
the Agreement.
1
<PAGE> 2
Delaware Group Global & International Funds, Inc.
Emerging Markets Fund (New)
Global Assets Fund
Global Bond Fund
International Equity Fund
Global Equity Fund (New)
International Small Cap Fund (New)
Delaware Group Income Funds, Inc. (formerly Delchester)
Delchester Fund
High-Yield Opportunities Fund (New)
Strategic Income Fund (New)
Delaware Group Limited-Term Government Funds, Inc.
Limited-Term Government Fund
U. S. Government Money Fund
Delaware Pooled Trust, Inc.
The Aggressive Growth Portfolio
The Defensive Equity Portfolio
The Defensive Equity Small/Mid-Cap Portfolio (New)
The Defensive Equity Utility Portfolio (New)
The Emerging Markets Portfolio (New)
The Fixed Income Portfolio The Global Fixed Income Portfolio
The High-Yield Bond Portfolio (New)
The International Equity Portfolio
The International Fixed Income Portfolio (New)
The Labor Select International Equity Portfolio
The Limited-Term Maturity Portfolio (New)
The Real Estate Investment Trust Portfolio
Delaware Group Premium Fund, Inc.
Capital Reserves Series
Cash Reserve Series
Convertible Securities Series (New)
Decatur Total Return Series
Delaware Series
Delchester Series
Devon Series (New)
Emerging Markets Series (New)
DelCap Series
Global Bond Series (New)
International Equity Series
Quantum Series (New)
Strategic Income Series (New)
2
<PAGE> 3
Trend Series
Value Series
Delaware Group State Tax-Free Income Trust
Tax-Free New Jersey Fund (New)
Tax-Free Ohio Fund (New)
Tax-Free Pennsylvania Fund
Delaware Group Tax-Free Fund, Inc.
Tax-Free Insured Fund
Tax-Free USA Fund
Tax-Free USA Intermediate Fund
Delaware Group Tax-Free Money Fund, Inc.
Delaware Group Trend Fund, Inc.
Voyageur Funds, Inc.
Voyageur U.S. Government Securities Fund (New)
Voyageur Insured Funds, Inc.
Arizona Insured Tax Free Fund (New)
Colorado Insured Fund (New)
Minnesota Insured Fund (New)
National Insured Tax Free Fund (New)
Voyageur Intermediate Tax Free Funds, Inc.
Arizona Limited Term Tax Free Fund (New)
California Limited Term Tax Free Fund (New)
Colorado Limited Term Tax Free Fund (New)
Minnesota Limited Term Tax Free Fund (New)
National Limited Term Tax Free Fund (New)
Voyageur Investment Trust
California Insured Tax Free Fund (New)
Florida Insured Tax Free Fund (New)
Florida Tax Free Fund (New)
Kansas Tax Free Fund (New)
Missouri Insured Tax Free Fund (New)
New Mexico Tax Free Fund (New)
Oregon Insured Tax Free Fund (New)
Utah Tax Free Fund (New)
Washington Insured Tax Free Fund (New)
3
<PAGE> 4
Voyageur Investment Trust II
Florida Limited Term Tax Free Fund (New)
Voyageur Mutual Funds, Inc.
Arizona Tax Free Fund (New)
California Tax Free Fund (New)
Iowa Tax Free Fund (New)
Idaho Tax Free Fund (New)
Minnesota High Yield Municipal Bond Fund (New)
National High Yield Municipal Bond Fund (New)
National Tax Free Fund (New)
New York Tax Free Fund (New)
Wisconsin Tax Free Fund (New)
Voyageur Mutual Funds II, Inc.
Colorado Tax Free Fund (New)
Voyageur Mutual Funds III, Inc.
Aggressive Growth Fund (New)
Growth Stock Fund (New)
International Equity Fund (New)
Tax Efficient Equity Fund (New)
Voyageur Tax Free Funds, Inc.
Minnesota Tax Free Fund (New)
North Dakota Tax Free Fund (New)
Dated as of July 21, 1997
4
<PAGE> 5
DELAWARE SERVICE COMPANY, INC.
By: /s/ David K. Downes
----------------------------------
David K. Downes
President, Chief Executive Officer and Chief Financial Officer
DELAWARE GROUP ADVISER FUNDS, INC.
DELAWARE GROUP CASH RESERVE, INC.
DELAWARE GROUP EQUITY FUNDS I, INC.
DELAWARE GROUP EQUITY FUNDS II, INC.
DELAWARE GROUP EQUITY FUNDS IV, INC.
DELAWARE GROUP EQUITY FUNDS V, INC.
DELAWARE GROUP GOVERNMENT FUND, INC.
DELAWARE GROUP GLOBAL & INTERNATIONAL FUNDS, INC.
DELAWARE GROUP INCOME FUNDS, INC.
DELAWARE GROUP LIMITED -TERM GOVERNMENT FUNDS, INC.
DELAWARE POOLED TRUST, INC.
DELAWARE GROUP PREMIUM FUND, INC.
DELAWARE GROUP TAX-FREE FUND, INC.
DELAWARE GROUP TAX FREE MONEY FUND, INC.
DELAWARE GROUP TREND FUND, INC.
DMC TAX-FREE INCOME TRUST-PENNSYLVANIA
VOYAGEUR FUNDS, INC.
VOYAGEUR INSURED FUNDS, INC.
VOYAGEUR INTERMEDIATE TAX FREE FUNDS, INC.
VOYAGEUR INVESTMENT TRUST
VOYAGEUR INVESTMENT TRUST II
VOYAGEUR MUTUAL FUNDS, INC.
VOYAGEUR MUTUAL FUNDS II, INC.
VOYAGEUR MUTUAL FUNDS III, INC.
By: /s/ Wayne A. Stork
----------------------------------
Wayne A. Stork
Chairman, President and
Chief Executive Officer
5
<PAGE> 1
EX-99.B11
Consent of Ernst & Young LLP, Independent Auditors
We consent to the references to our firm under the captions "Financial
Highlights" in the Prospectuses and "Financial Statements" in the Statement of
Additional Information and to the incorporation by reference in this
Post-Effective Amendment Number 108 to the Registration Statement (Form N-1A)
(No. 2-13017) of Delaware Group Equity Funds II, Inc. of our report dated
January 6, 1997, included in the 1996 Annual Report to Shareholders of Decatur
Income Fund and Decatur Total Return Fund.
/s/ Ernst and Young LLP
Philadelphia, Pennsylvania
August 20, 1997
<PAGE> 1
EXHIBIT 99.B16B
DELAWARE GROUP EQUITY FUNDS II, INC. - BLUE CHIP FUND
A CLASS
TOTAL RETURN PERFORMANCE
INCEPTION
- --------------------------------------------------------------------------------
Initial Investment $1,000.00
Beginning OFFER $8.92
Initial Shares 112.108
<TABLE>
<CAPTION>
Fiscal Beginning Dividends Reinvested Cumulative
Year Shares for Period Shares Shares
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------
1997 112.108 $0.000 0.000 112.108
- ---------------------------------------------------------------------------------------
Ending Shares 112.108
Ending NAV x $9.73
---------
Investment Return $1,090.81
Total Return Performance
- ------------------------
Investment Return $1,090.81
Less Initial Investment $1,000.00
---------
$90.81 / $1,000.00 x 100
Total Return: 9.08%
</TABLE>
<PAGE> 2
DELAWARE GROUP EQUITY FUNDS II, INC. - BLUE CHIP FUND
A CLASS
TOTAL RETURN PERFORMANCE
THREE MONTHS
- --------------------------------------------------------------------------------
Initial Investment $1,000.00
Beginning NAV $8.25
Initial Shares 121.212
<TABLE>
<CAPTION>
Fiscal Beginning Dividends Reinvested Cumulative
Year Shares for Period Shares Shares
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------
1997 121.212 $0.000 0.000 121.212
- ---------------------------------------------------------------------------------------
Ending Shares 121.212
Ending NAV x $9.73
---------
Investment Return $1,179.39
Total Return Performance
- ------------------------
Investment Return $1,179.39
Less Initial Investment $1,000.00
---------
$179.39 / $1,000.00 x 100
Total Return: 17.94%
</TABLE>
<PAGE> 3
DELAWARE GROUP EQUITY FUNDS II, INC. - BLUE CHIP FUND
A CLASS
TOTAL RETURN PERFORMANCE
INCEPTION
- --------------------------------------------------------------------------------
Initial Investment $1,000.00
Beginning NAV $8.50
Initial Shares 117.647
<TABLE>
<CAPTION>
Fiscal Beginning Dividends Reinvested Cumulative
Year Shares for Period Shares Shares
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------
1997 117.647 $0.000 0.000 117.647
- ---------------------------------------------------------------------------------------
Ending Shares 117.647
Ending NAV x $9.73
---------
Investment Return $1,144.71
Total Return Performance
- ------------------------
Investment Return $1,144.71
Less Initial Investment $1,000.00
---------
$144.71 / $1,000.00 x 100
Total Return: 14.47%
</TABLE>
<PAGE> 4
DELAWARE GROUP EQUITY FUNDS II, INC. - BLUE CHIP FUND
A CLASS
TOTAL RETURN PERFORMANCE
THREE MONTHS
- --------------------------------------------------------------------------------
Initial Investment $1,000.00
Beginning OFFER $8.66
Initial Shares 115.473
<TABLE>
<CAPTION>
Fiscal Beginning Dividends Reinvested Cumulative
Year Shares for Period Shares Shares
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------
1997 115.473 $0.000 0.000 115.473
- ---------------------------------------------------------------------------------------
Ending Shares 115.473
Ending NAV x $9.73
---------
Investment Return $1,123.55
Total Return Performance
- ------------------------
Investment Return $1,123.55
Less Initial Investment $1,000.00
---------
$123.55 / $1,000.00 x 100
Total Return: 12.36%
</TABLE>
<PAGE> 5
DELAWARE GROUP EQUITY FUNDS II, INC. - BLUE CHIP FUND
INSTITUTIONAL CLASS
TOTAL RETURN PERFORMANCE
INCEPTION
- --------------------------------------------------------------------------------
Initial Investment $1,000.00
Beginning NAV $8.50
Initial Shares 117.647
<TABLE>
<CAPTION>
Fiscal Beginning Dividends Reinvested Cumulative
Year Shares for Period Shares Shares
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------
1997 117.647 $0.000 0.000 117.647
- ---------------------------------------------------------------------------------------
Ending Shares 117.647
Ending NAV x $9.75
---------
Investment Return $1,147.06
Total Return Performance
- ------------------------
Investment Return $1,147.06
Less Initial Investment $1,000.00
---------
$147.06 / $1,000.00 x 100
Total Return: 14.71%
</TABLE>
<PAGE> 6
DELAWARE GROUP EQUITY FUNDS II, INC. - BLUE CHIP FUND
INSTITUTIONAL CLASS
TOTAL RETURN PERFORMANCE
THREE MONTHS
- --------------------------------------------------------------------------------
Initial Investment $1,000.00
Beginning NAV $8.26
Initial Shares 121.065
<TABLE>
<CAPTION>
Fiscal Beginning Dividends Reinvested Cumulative
Year Shares for Period Shares Shares
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------
1997 121.065 $0.000 0.000 121.065
- ---------------------------------------------------------------------------------------
Ending Shares 121.065
Ending NAV x $9.75
---------
Investment Return $1,180.38
Total Return Performance
- ------------------------
Investment Return $1,180.38
Less Initial Investment $1,000.00
---------
$180.38 / $1,000.00 x 100
Total Return: 18.04%
</TABLE>
<PAGE> 7
DELAWARE GROUP EQUITY FUNDS II, INC. - BLUE CHIP FUND
B CLASS
TOTAL RETURN PERFORMANCE
THREE MONTHS (INCLUDING CDSC)
- --------------------------------------------------------------------------------
Initial Investment $1,000.00
Beginning NAV $8.24
Initial Shares 121.359
<TABLE>
<CAPTION>
Fiscal Beginning Dividends Reinvested Cumulative
Year Shares for Period Shares Shares
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------
1997 121.359 $0.000 0.000 121.359
- ---------------------------------------------------------------------------------------
Ending Shares 121.359
Ending NAV x $9.71
---------
$1,178.40
Less CDSC $40.00
---------
Investment Return $1,138.40
Total Return Performance
- ------------------------
Investment Return $1,138.40
Less Initial Investment $1,000.00
---------
$138.40 / $1,000.00 x 100
Total Return: 13.84%
</TABLE>
<PAGE> 8
DELAWARE GROUP EQUITY FUNDS II, INC. - BLUE CHIP FUND
B CLASS
TOTAL RETURN PERFORMANCE
THREE MONTHS
- --------------------------------------------------------------------------------
Initial Investment $1,000.00
Beginning NAV $8.24
Initial Shares 121.359
<TABLE>
<CAPTION>
Fiscal Beginning Dividends Reinvested Cumulative
Year Shares for Period Shares Shares
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------
1997 121.359 $0.000 0.000 121.359
- ---------------------------------------------------------------------------------------
Ending Shares 121.359
Ending NAV x $9.71
---------
Investment Return $1,178.40
Total Return Performance
- ------------------------
Investment Return $1,178.40
Less Initial Investment $1,000.00
---------
$178.40 / $1,000.00 x 100
Total Return: 17.84%
</TABLE>
<PAGE> 9
DELAWARE GROUP EQUITY FUNDS II, INC. - BLUE CHIP FUND
B CLASS
TOTAL RETURN PERFORMANCE
INCEPTION (INCLUDING CDSC)
- --------------------------------------------------------------------------------
Initial Investment $1,000.00
Beginning NAV $8.50
Initial Shares 117.647
<TABLE>
<CAPTION>
Fiscal Beginning Dividends Reinvested Cumulative
Year Shares for Period Shares Shares
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------
1997 117.647 $0.000 0.000 117.647
- ---------------------------------------------------------------------------------------
Ending Shares 117.647
Ending NAV x $9.71
---------
$1,142.35
Less CDSC $40.00
---------
Investment Return $1,102.35
Total Return Performance
- ------------------------
Investment Return $1,102.35
Less Initial Investment $1,000.00
---------
$102.35 / $1,000.00 x 100
Total Return: 10.24%
</TABLE>
<PAGE> 10
DELAWARE GROUP EQUITY FUNDS II, INC. - BLUE CHIP FUND
B CLASS
TOTAL RETURN PERFORMANCE
INCEPTION
- --------------------------------------------------------------------------------
Initial Investment $1,000.00
Beginning NAV $8.50
Initial Shares 117.647
<TABLE>
<CAPTION>
Fiscal Beginning Dividends Reinvested Cumulative
Year Shares for Period Shares Shares
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------
1997 117.647 $0.000 0.000 117.647
- ---------------------------------------------------------------------------------------
Ending Shares 117.647
Ending NAV x $9.71
---------
Investment Return $1,142.35
Total Return Performance
- ------------------------
Investment Return $1,142.35
Less Initial Investment $1,000.00
---------
$142.35 / $1,000.00 x 100
Total Return: 14.24%
</TABLE>
<PAGE> 11
DELAWARE GROUP EQUITY FUNDS II, INC. - BLUE CHIP FUND
C CLASS
TOTAL RETURN PERFORMANCE
THREE MONTHS (INCLUDING CDSC)
- --------------------------------------------------------------------------------
Initial Investment $1,000.00
Beginning NAV $8.25
Initial Shares 121.212
<TABLE>
<CAPTION>
Fiscal Beginning Dividends Reinvested Cumulative
Year Shares for Period Shares Shares
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------
1997 121.212 $0.000 0.000 121.212
- ---------------------------------------------------------------------------------------
Ending Shares 121.212
Ending NAV x $9.71
---------
$1,176.97
Less CDSC $10.00
---------
Investment Return $1,166.97
Total Return Performance
- ------------------------
Investment Return $1,166.97
Less Initial Investment $1,000.00
---------
$166.97 / $1,000.00 x 100
Total Return: 16.70%
</TABLE>
<PAGE> 12
DELAWARE GROUP EQUITY FUNDS II, INC. - BLUE CHIP FUND
C CLASS
TOTAL RETURN PERFORMANCE
THREE MONTHS
- --------------------------------------------------------------------------------
Initial Investment $1,000.00
Beginning NAV $8.25
Initial Shares 121.212
<TABLE>
<CAPTION>
Fiscal Beginning Dividends Reinvested Cumulative
Year Shares for Period Shares Shares
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------
1997 121.212 $0.000 0.000 121.212
- ---------------------------------------------------------------------------------------
Ending Shares 121.212
Ending NAV x $9.71
---------
Investment Return $1,176.97
Total Return Performance
- ------------------------
Investment Return $1,176.97
Less Initial Investment $1,000.00
---------
$176.97 / $1,000.00 x 100
Total Return: 17.70%
</TABLE>
<PAGE> 13
DELAWARE GROUP EQUITY FUNDS II, INC. - BLUE CHIP FUND
C CLASS
TOTAL RETURN PERFORMANCE
INCEPTION (INCLUDING CDSC)
- --------------------------------------------------------------------------------
Initial Investment $1,000.00
Beginning NAV $8.50
Initial Shares 117.647
<TABLE>
<CAPTION>
Fiscal Beginning Dividends Reinvested Cumulative
Year Shares for Period Shares Shares
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------
1997 117.647 $0.000 0.000 117.647
- ---------------------------------------------------------------------------------------
Ending Shares 117.647
Ending NAV x $9.71
---------
$1,142.35
Less CDSC $10.00
---------
Investment Return $1,132.35
Total Return Performance
- ------------------------
Investment Return $1,132.35
Less Initial Investment $1,000.00
---------
$132.35 / $1,000.00 x 100
Total Return: 13.24%
</TABLE>
<PAGE> 14
DELAWARE GROUP EQUITY FUNDS II, INC. - BLUE CHIP FUND
C CLASS
TOTAL RETURN PERFORMANCE
INCEPTION
- --------------------------------------------------------------------------------
Initial Investment $1,000.00
Beginning NAV $8.50
Initial Shares 117.647
<TABLE>
<CAPTION>
Fiscal Beginning Dividends Reinvested Cumulative
Year Shares for Period Shares Shares
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------
1997 117.647 $0.000 0.000 117.647
- ---------------------------------------------------------------------------------------
Ending Shares 117.647
Ending NAV x $9.71
---------
Investment Return $1,142.35
Total Return Performance
- ------------------------
Investment Return $1,142.35
Less Initial Investment $1,000.00
---------
$142.35 / $1,000.00 x 100
Total Return: 14.24%
</TABLE>
<PAGE> 15
DELAWARE GROUP EQUITY FUNDS II, INC. - QUANTUM FUND
A CLASS
TOTAL RETURN PERFORMANCE
THREE MONTHS
- --------------------------------------------------------------------------------
Initial Investment $1,000.00
Beginning OFFER $8.70
Initial Shares 114.943
<TABLE>
<CAPTION>
Fiscal Beginning Dividends Reinvested Cumulative
Year Shares for Period Shares Shares
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------
1997 114.943 $0.000 0.000 114.943
- ---------------------------------------------------------------------------------------
Ending Shares 114.943
Ending NAV x $9.90
---------
Investment Return $1,137.94
Total Return Performance
- ------------------------
Investment Return $1,137.94
Less Initial Investment $1,000.00
---------
$137.94 / $1,000.00 x 100
Total Return: 13.79%
</TABLE>
<PAGE> 16
DELAWARE GROUP EQUITY FUNDS II, INC. - QUANTUM FUND
A CLASS
TOTAL RETURN PERFORMANCE
INCEPTION
- --------------------------------------------------------------------------------
Initial Investment $1,000.00
Beginning OFFER $8.92
Initial Shares 112.108
<TABLE>
<CAPTION>
Fiscal Beginning Dividends Reinvested Cumulative
Year Shares for Period Shares Shares
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------
1997 112.108 $0.000 0.000 112.108
- ---------------------------------------------------------------------------------------
Ending Shares 112.108
Ending NAV x $9.90
---------
Investment Return $1,109.87
Total Return Performance
- ------------------------
Investment Return $1,109.87
Less Initial Investment $1,000.00
---------
$109.87 / $1,000.00 x 100
Total Return: 10.99%
</TABLE>
<PAGE> 17
DELAWARE GROUP EQUITY FUNDS II, INC. - QUANTUM FUND
A CLASS
TOTAL RETURN PERFORMANCE
THREE MONTHS
- --------------------------------------------------------------------------------
Initial Investment $1,000.00
Beginning NAV $8.29
Initial Shares 120.627
<TABLE>
<CAPTION>
Fiscal Beginning Dividends Reinvested Cumulative
Year Shares for Period Shares Shares
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------
1997 120.627 $0.000 0.000 120.627
- ---------------------------------------------------------------------------------------
Ending Shares 120.627
Ending NAV x $9.90
---------
Investment Return $1,194.21
Total Return Performance
- ------------------------
Investment Return $1,194.21
Less Initial Investment $1,000.00
---------
$194.21 / $1,000.00 x 100
Total Return: 19.42%
</TABLE>
<PAGE> 18
DELAWARE GROUP EQUITY FUNDS II, INC. - QUANTUM FUND
A CLASS
TOTAL RETURN PERFORMANCE
INCEPTION
- --------------------------------------------------------------------------------
Initial Investment $1,000.00
Beginning NAV $8.50
Initial Shares 117.647
<TABLE>
<CAPTION>
Fiscal Beginning Dividends Reinvested Cumulative
Year Shares for Period Shares Shares
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------
1997 117.647 $0.000 0.000 117.647
- ---------------------------------------------------------------------------------------
Ending Shares 117.647
Ending NAV x $9.90
---------
Investment Return $1,164.71
Total Return Performance
- ------------------------
Investment Return $1,164.71
Less Initial Investment $1,000.00
---------
$164.71 / $1,000.00 x 100
Total Return: 16.47%
</TABLE>
<PAGE> 19
DELAWARE GROUP EQUITY FUNDS II, INC. - QUANTUM FUND
INSTITUTIONAL CLASS
TOTAL RETURN PERFORMANCE
THREE MONTHS
- --------------------------------------------------------------------------------
Initial Investment $1,000.00
Beginning NAV $8.29
Initial Shares 120.627
<TABLE>
<CAPTION>
Fiscal Beginning Dividends Reinvested Cumulative
Year Shares for Period Shares Shares
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------
1997 120.627 $0.000 0.000 120.627
- ---------------------------------------------------------------------------------------
Ending Shares 120.627
Ending NAV x $9.91
---------
Investment Return $1,195.41
Total Return Performance
- ------------------------
Investment Return $1,195.41
Less Initial Investment $1,000.00
---------
$195.41 / $1,000.00 x 100
Total Return: 19.54%
</TABLE>
<PAGE> 20
DELAWARE GROUP EQUITY FUNDS II, INC. - QUANTUM FUND
INSTITUTIONAL CLASS
TOTAL RETURN PERFORMANCE
INCEPTION
- --------------------------------------------------------------------------------
Initial Investment $1,000.00
Beginning NAV $8.50
Initial Shares 117.647
<TABLE>
<CAPTION>
Fiscal Beginning Dividends Reinvested Cumulative
Year Shares for Period Shares Shares
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------
1997 117.647 $0.000 0.000 117.647
- ---------------------------------------------------------------------------------------
Ending Shares 117.647
Ending NAV x $9.91
---------
Investment Return $1,165.88
Total Return Performance
- ------------------------
Investment Return $1,165.88
Less Initial Investment $1,000.00
---------
$165.88 / $1,000.00 x 100
Total Return: 16.59%
</TABLE>
<PAGE> 21
DELAWARE GROUP EQUITY FUNDS II, INC. - QUANTUM FUND
B CLASS
TOTAL RETURN PERFORMANCE
THREE MONTHS (INCLUDING CDSC)
- --------------------------------------------------------------------------------
Initial Investment $1,000.00
Beginning NAV $8.28
Initial Shares 120.773
<TABLE>
<CAPTION>
Fiscal Beginning Dividends Reinvested Cumulative
Year Shares for Period Shares Shares
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------
1997 120.773 $0.000 0.000 120.773
- ---------------------------------------------------------------------------------------
Ending Shares 120.773
Ending NAV x $9.87
---------
$1,192.03
Less CDSC $40.00
---------
Investment Return $1,152.03
Total Return Performance
- ------------------------
Investment Return $1,152.03
Less Initial Investment $1,000.00
---------
$152.03 / $1,000.00 x 100
Total Return: 15.20%
</TABLE>
<PAGE> 22
DELAWARE GROUP EQUITY FUNDS II, INC. - QUANTUM FUND
B CLASS
TOTAL RETURN PERFORMANCE
THREE MONTHS
- --------------------------------------------------------------------------------
Initial Investment $1,000.00
Beginning NAV $8.28
Initial Shares 120.773
<TABLE>
<CAPTION>
Fiscal Beginning Dividends Reinvested Cumulative
Year Shares for Period Shares Shares
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------
1997 120.773 $0.000 0.000 120.773
- ---------------------------------------------------------------------------------------
Ending Shares 120.773
Ending NAV x $9.87
---------
Investment Return $1,192.03
Total Return Performance
- ------------------------
Investment Return $1,192.03
Less Initial Investment $1,000.00
---------
$192.03 / $1,000.00 x 100
Total Return: 19.20%
</TABLE>
<PAGE> 23
DELAWARE GROUP EQUITY FUNDS II, INC. - QUANTUM FUND
B CLASS
TOTAL RETURN PERFORMANCE
INCEPTION (INCLUDING CDSC)
- --------------------------------------------------------------------------------
Initial Investment $1,000.00
Beginning NAV $8.50
Initial Shares 117.647
<TABLE>
<CAPTION>
Fiscal Beginning Dividends Reinvested Cumulative
Year Shares for Period Shares Shares
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------
1997 117.647 $0.000 0.000 117.647
- ---------------------------------------------------------------------------------------
Ending Shares 117.647
Ending NAV x $9.87
---------
$1,161.18
Less CDSC $40.00
---------
Investment Return $1,121.18
Total Return Performance
- ------------------------
Investment Return $1,121.18
Less Initial Investment $1,000.00
---------
$121.18 / $1,000.00 x 100
Total Return: 12.12%
</TABLE>
<PAGE> 24
DELAWARE GROUP EQUITY FUNDS II, INC. - QUANTUM FUND
B CLASS
TOTAL RETURN PERFORMANCE
INCEPTION
- --------------------------------------------------------------------------------
Initial Investment $1,000.00
Beginning NAV $8.50
Initial Shares 117.647
<TABLE>
<CAPTION>
Fiscal Beginning Dividends Reinvested Cumulative
Year Shares for Period Shares Shares
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------
1997 117.647 $0.000 0.000 117.647
- ---------------------------------------------------------------------------------------
Ending Shares 117.647
Ending NAV x $9.87
---------
Investment Return $1,161.18
Total Return Performance
- ------------------------
Investment Return $1,161.18
Less Initial Investment $1,000.00
---------
$161.18 / $1,000.00 x 100
Total Return: 16.12%
</TABLE>
<PAGE> 25
DELAWARE GROUP EQUITY FUNDS II, INC. - QUANTUM FUND
C CLASS
TOTAL RETURN PERFORMANCE
THREE MONTHS (INCLUDING CDSC)
- --------------------------------------------------------------------------------
Initial Investment $1,000.00
Beginning NAV $8.28
Initial Shares 120.773
<TABLE>
<CAPTION>
Fiscal Beginning Dividends Reinvested Cumulative
Year Shares for Period Shares Shares
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------
1997 120.773 $0.000 0.000 120.773
- ---------------------------------------------------------------------------------------
Ending Shares 120.773
Ending NAV x $9.87
---------
$1,192.03
Less CDSC $10.00
---------
Investment Return $1,182.03
Total Return Performance
- ------------------------
Investment Return $1,182.03
Less Initial Investment $1,000.00
---------
$182.03 / $1,000.00 x 100
Total Return: 18.20%
</TABLE>
<PAGE> 26
DELAWARE GROUP EQUITY FUNDS II, INC. - QUANTUM FUND
C CLASS
TOTAL RETURN PERFORMANCE
THREE MONTHS
- --------------------------------------------------------------------------------
Initial Investment $1,000.00
Beginning NAV $8.28
Initial Shares 120.773
<TABLE>
<CAPTION>
Fiscal Beginning Dividends Reinvested Cumulative
Year Shares for Period Shares Shares
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------
1997 120.773 $0.000 0.000 120.773
- ---------------------------------------------------------------------------------------
Ending Shares 120.773
Ending NAV x $9.87
---------
Investment Return $1,192.03
Total Return Performance
- ------------------------
Investment Return $1,192.03
Less Initial Investment $1,000.00
---------
$192.03 / $1,000.00 x 100
Total Return: 19.20%
</TABLE>
<PAGE> 27
DELAWARE GROUP EQUITY FUNDS II, INC. - QUANTUM FUND
C CLASS
TOTAL RETURN PERFORMANCE
INCEPTION (INCLUDING CDSC)
- --------------------------------------------------------------------------------
Initial Investment $1,000.00
Beginning NAV $8.50
Initial Shares 117.647
<TABLE>
<CAPTION>
Fiscal Beginning Dividends Reinvested Cumulative
Year Shares for Period Shares Shares
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------
1997 117.647 $0.000 0.000 117.647
- ---------------------------------------------------------------------------------------
Ending Shares 117.647
Ending NAV x $9.87
---------
$1,161.18
Less CDSC $10.00
---------
Investment Return $1,151.18
Total Return Performance
- ------------------------
Investment Return $1,151.18
Less Initial Investment $1,000.00
---------
$151.18 / $1,000.00 x 100
Total Return: 15.12%
</TABLE>
<PAGE> 28
DELAWARE GROUP EQUITY FUNDS II, INC. - QUANTUM FUND
C CLASS
TOTAL RETURN PERFORMANCE
INCEPTION
- --------------------------------------------------------------------------------
Initial Investment $1,000.00
Beginning NAV $8.50
Initial Shares 117.647
<TABLE>
<CAPTION>
Fiscal Beginning Dividends Reinvested Cumulative
Year Shares for Period Shares Shares
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------
1997 117.647 $0.000 0.000 117.647
- ---------------------------------------------------------------------------------------
Ending Shares 117.647
Ending NAV x $9.87
---------
Investment Return $1,161.18
Total Return Performance
- ------------------------
Investment Return $1,161.18
Less Initial Investment $1,000.00
---------
$161.18 / $1,000.00 x 100
Total Return: 16.12%
</TABLE>
<PAGE> 1
POWER OF ATTORNEY
THE UNDERSIGNED, A MEMBER OF THE BOARDS OF DIRECTORS/TRUSTEES OF THE
DELAWARE GROUP FUNDS LISTED ON EXHIBIT A TO THIS POWER OF ATTORNEY, HEREBY
CONSTITUTES AND APPOINTS WAYNE A. STORK, W. THACHER LONGSTRETH AND WALTER P.
BABICH AND ANY ONE OF THEM ACTING SINGLY, HIS TRUE AND LAWFUL ATTORNEYS-IN-FACT,
IN HIS NAME, PLACE, AND STEAD, TO EXECUTE AND CAUSE TO BE FILED WITH THE
SECURITIES AND EXCHANGE COMMISSION AND OTHER FEDERAL OR STATE GOVERNMENT AGENCY
OR BODY, SUCH REGISTRATION STATEMENTS, AND ANY AND ALL AMENDMENTS THERETO AS
EITHER OF SUCH DESIGNEES MAY DEEM TO BE APPROPRIATE UNDER THE SECURITIES ACT OF
1933, AS AMENDED, THE INVESTMENT COMPANY ACT OF 1940, AS AMENDED, AND ALL OTHER
APPLICABLE FEDERAL AND STATE SECURITIES LAWS.
IN WITNESS WHEREOF, THE UNDERSIGNED HAS EXECUTED THIS INSTRUMENT AS OF
THIS 1ST DAY OF MAY, 1997.
/S/THOMAS F. MADISON
- -----------------------------
THOMAS F. MADISON
<PAGE> 2
POWER OF ATTORNEY
EXHIBIT A
DELAWARE GROUP FUNDS
DELAWARE GROUP EQUITY FUNDS I, INC.
DELAWARE GROUP EQUITY FUNDS II, INC.
DELAWARE GROUP EQUITY FUNDS IV, INC.
DELAWARE GROUP EQUITY FUNDS V, INC.
DELAWARE GROUP TREND FUND, INC.
DELAWARE GROUP INCOME FUNDS, INC.
DELAWARE GROUP GOVERNMENT FUND, INC.
DELAWARE GROUP CASH RESERVE, INC.
DELAWARE GROUP LIMITED-TERM GOVERNMENT FUNDS, INC.
DELAWARE GROUP TAX-FREE FUND, INC.
DELAWARE GROUP TAX-FREE MONEY FUND, INC.
DELAWARE GROUP GLOBAL & INTERNATIONAL FUNDS, INC.
DELAWARE GROUP ADVISER FUNDS, INC.
DELAWARE POOLED TRUST, INC.
DELAWARE GROUP PREMIUM FUND, INC.
DMC TAX-FREE INCOME TRUST-PENNSYLVANIA
DELAWARE GROUP DIVIDEND AND INCOME FUND, INC.
DELAWARE GROUP GLOBAL DIVIDEND AND INCOME FUND, INC.
VOYAGEUR FUNDS, INC.
VOYAGEUR INSURED FUNDS, INC.
VOYAGEUR INTERMEDIATE TAX FREE FUNDS, INC.
VOYAGEUR INVESTMENT TRUST
VOYAGEUR INVESTMENT TRUST II
VOYAGEUR MUTUAL FUNDS, INC.
VOYAGEUR MUTUAL FUNDS II, INC.
VOYAGEUR MUTUAL FUNDS III, INC.
VOYAGEUR TAX FREE FUNDS, INC.
VOYAGEUR ARIZONA MUNICIPAL INCOME FUND, INC.
VOYAGEUR COLORADO INSURED MUNICIPAL INCOME FUND, INC.
VOYAGEUR FLORIDA INSURED MUNICIPAL INCOME FUND
VOYAGEUR MINNESOTA MUNICIPAL INCOME FUND, INC.
VOYAGEUR MINNESOTA MUNICIPAL INCOME FUND II, INC.
VOYAGEUR MINNESOTA MUNICIPAL INCOME FUND III, INC.
<PAGE> 3
POWER OF ATTORNEY
The undersigned, a member of the Boards of Directors/Trustees of the
Delaware Group Funds listed on Exhibit A to this power of attorney, hereby
constitutes and appoints Wayne A. Stork, W. Thacher Longstreth and Walter P.
Babich and any one of them acting singly, his true and lawful attorneys-in-fact,
in his name, place, and stead, to execute and cause to be filed with the
Securities and Exchange Commission and other federal or state government agency
or body, such registration statements, and any and all amendments thereto as
either of such designees may deem to be appropriate under the Securities Act of
1933, as amended, the Investment Company Act of 1940, as amended, and all other
applicable federal and state securities laws.
IN WITNESS WHEREOF, the undersigned has executed this instrument as of
this 1st day of May, 1997.
/S/JEFFREY J. NICK
- ------------------------------
JEFFREY J. NICK
<PAGE> 4
POWER OF ATTORNEY
EXHIBIT A
DELAWARE GROUP FUNDS
DELAWARE GROUP EQUITY FUNDS I, INC.
DELAWARE GROUP EQUITY FUNDS II, INC.
DELAWARE GROUP EQUITY FUNDS IV, INC.
DELAWARE GROUP EQUITY FUNDS V, INC.
DELAWARE GROUP TREND FUND, INC.
DELAWARE GROUP INCOME FUNDS, INC.
DELAWARE GROUP GOVERNMENT FUND, INC.
DELAWARE GROUP CASH RESERVE, INC.
DELAWARE GROUP LIMITED-TERM GOVERNMENT FUNDS, INC.
DELAWARE GROUP TAX-FREE FUND, INC.
DELAWARE GROUP TAX-FREE MONEY FUND, INC.
DELAWARE GROUP GLOBAL & INTERNATIONAL FUNDS, INC.
DELAWARE GROUP ADVISER FUNDS, INC.
DELAWARE POOLED TRUST, INC.
DELAWARE GROUP PREMIUM FUND, INC.
DMC TAX-FREE INCOME TRUST-PENNSYLVANIA
DELAWARE GROUP DIVIDEND AND INCOME FUND, INC.
DELAWARE GROUP GLOBAL DIVIDEND AND INCOME FUND, INC.
VOYAGEUR FUNDS, INC.
VOYAGEUR INSURED FUNDS, INC.
VOYAGEUR INTERMEDIATE TAX FREE FUNDS, INC.
VOYAGEUR INVESTMENT TRUST
VOYAGEUR INVESTMENT TRUST II
VOYAGEUR MUTUAL FUNDS, INC.
VOYAGEUR MUTUAL FUNDS II, INC.
VOYAGEUR MUTUAL FUNDS III, INC.
VOYAGEUR TAX FREE FUNDS, INC.
VOYAGEUR ARIZONA MUNICIPAL INCOME FUND, INC.
VOYAGEUR COLORADO INSURED MUNICIPAL INCOME FUND, INC.
VOYAGEUR FLORIDA INSURED MUNICIPAL INCOME FUND
VOYAGEUR MINNESOTA MUNICIPAL INCOME FUND, INC.
VOYAGEUR MINNESOTA MUNICIPAL INCOME FUND II, INC.
VOYAGEUR MINNESOTA MUNICIPAL INCOME FUND III, INC.
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000027574
<NAME> DELAWARE GROUP EQUITY FUNDS II, INC.
<SERIES>
<NUMBER> 011
<NAME> DECATUR INCOME FUND A CLASS
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> NOV-30-1996
<PERIOD-END> MAY-31-1997
<INVESTMENTS-AT-COST> 1,767,846,482
<INVESTMENTS-AT-VALUE> 2,099,189,733
<RECEIVABLES> 34,009,715
<ASSETS-OTHER> 24,474
<OTHER-ITEMS-ASSETS> 615,890
<TOTAL-ASSETS> 2,133,839,812
<PAYABLE-FOR-SECURITIES> 15,426,243
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 3,163,830
<TOTAL-LIABILITIES> 18,590,073
<SENIOR-EQUITY> 103,074,585
<PAID-IN-CAPITAL-COMMON> 1,548,418,570
<SHARES-COMMON-STOCK> 84,948,124
<SHARES-COMMON-PRIOR> 75,797,541
<ACCUMULATED-NII-CURRENT> 1,313,066
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 131,100,266
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 331,343,251
<NET-ASSETS> 1,743,703,076
<DIVIDEND-INCOME> 26,379,227
<INTEREST-INCOME> 13,608,809
<OTHER-INCOME> 0
<EXPENSES-NET> 8,731,522
<NET-INVESTMENT-INCOME> 31,256,514
<REALIZED-GAINS-CURRENT> 133,460,699
<APPREC-INCREASE-CURRENT> 60,480,884
<NET-CHANGE-FROM-OPS> 225,198,097
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 25,332,044
<DISTRIBUTIONS-OF-GAINS> 202,768,485
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 3,077,592
<NUMBER-OF-SHARES-REDEEMED> 4,901,142
<SHARES-REINVESTED> 10,974,133
<NET-CHANGE-IN-ASSETS> 189,365,070
<ACCUMULATED-NII-PRIOR> 480,076
<ACCUMULATED-GAINS-PRIOR> 239,836,699
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 4,798,709
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 8,731,522
<AVERAGE-NET-ASSETS> 1,640,040,285
<PER-SHARE-NAV-BEGIN> 21.320
<PER-SHARE-NII> .310
<PER-SHARE-GAIN-APPREC> 1.880
<PER-SHARE-DIVIDEND> .300
<PER-SHARE-DISTRIBUTIONS> 2.680
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 20.530
<EXPENSE-RATIO> 0.880
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000027574
<NAME> DELAWARE GROUP EQUITY FUNDS II, INC.
<SERIES>
<NUMBER> 012
<NAME> DECATUR INCOME FUND B CLASS
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> NOV-30-1996
<PERIOD-END> MAY-31-1997
<INVESTMENTS-AT-COST> 1,767,846,482
<INVESTMENTS-AT-VALUE> 2,099,189,733
<RECEIVABLES> 34,009,715
<ASSETS-OTHER> 24,474
<OTHER-ITEMS-ASSETS> 615,890
<TOTAL-ASSETS> 2,133,839,812
<PAYABLE-FOR-SECURITIES> 15,426,243
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 3,163,830
<TOTAL-LIABILITIES> 18,590,073
<SENIOR-EQUITY> 103,074,585
<PAID-IN-CAPITAL-COMMON> 1,548,418,570
<SHARES-COMMON-STOCK> 4,440,072
<SHARES-COMMON-PRIOR> 2,855,222
<ACCUMULATED-NII-CURRENT> 1,313,066
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 131,100,266
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 331,343,251
<NET-ASSETS> 90,783,392
<DIVIDEND-INCOME> 26,379,227
<INTEREST-INCOME> 13,608,809
<OTHER-INCOME> 0
<EXPENSES-NET> 8,731,522
<NET-INVESTMENT-INCOME> 31,256,514
<REALIZED-GAINS-CURRENT> 133,460,699
<APPREC-INCREASE-CURRENT> 60,480,884
<NET-CHANGE-FROM-OPS> 225,198,097
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 873,524
<DISTRIBUTIONS-OF-GAINS> 7,925,263
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 1,342,141
<NUMBER-OF-SHARES-REDEEMED> 180,624
<SHARES-REINVESTED> 423,333
<NET-CHANGE-IN-ASSETS> 189,365,070
<ACCUMULATED-NII-PRIOR> 480,076
<ACCUMULATED-GAINS-PRIOR> 239,836,699
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 4,798,709
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 8,731,522
<AVERAGE-NET-ASSETS> 73,957,981
<PER-SHARE-NAV-BEGIN> 21.260
<PER-SHARE-NII> .250
<PER-SHARE-GAIN-APPREC> 1.850
<PER-SHARE-DIVIDEND> .230
<PER-SHARE-DISTRIBUTIONS> 2.680
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 20.450
<EXPENSE-RATIO> 1.690
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000027574
<NAME> DELAWARE GROUP EQUITY FUNDS II, INC.
<SERIES>
<NUMBER> 013
<NAME> DECATUR INCOME FUND C CLASS
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> NOV-30-1996
<PERIOD-END> MAY-31-1997
<INVESTMENTS-AT-COST> 1,767,846,482
<INVESTMENTS-AT-VALUE> 2,099,189,733
<RECEIVABLES> 34,009,715
<ASSETS-OTHER> 24,474
<OTHER-ITEMS-ASSETS> 615,890
<TOTAL-ASSETS> 2,133,839,812
<PAYABLE-FOR-SECURITIES> 15,426,243
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 3,163,830
<TOTAL-LIABILITIES> 18,590,073
<SENIOR-EQUITY> 103,074,585
<PAID-IN-CAPITAL-COMMON> 1,548,418,570
<SHARES-COMMON-STOCK> 481,600
<SHARES-COMMON-PRIOR> 226,637
<ACCUMULATED-NII-CURRENT> 1,313,066
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 131,100,266
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 331,343,251
<NET-ASSETS> 9,886,259
<DIVIDEND-INCOME> 26,379,227
<INTEREST-INCOME> 13,608,809
<OTHER-INCOME> 0
<EXPENSES-NET> 8,731,522
<NET-INVESTMENT-INCOME> 31,256,514
<REALIZED-GAINS-CURRENT> 133,460,699
<APPREC-INCREASE-CURRENT> 60,480,884
<NET-CHANGE-FROM-OPS> 225,198,097
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 85,191
<DISTRIBUTIONS-OF-GAINS> 667,227
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 232,980
<NUMBER-OF-SHARES-REDEEMED> 12,630
<SHARES-REINVESTED> 34,613
<NET-CHANGE-IN-ASSETS> 189,365,070
<ACCUMULATED-NII-PRIOR> 480,076
<ACCUMULATED-GAINS-PRIOR> 239,836,699
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 4,798,709
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 8,731,522
<AVERAGE-NET-ASSETS> 7,122,379
<PER-SHARE-NAV-BEGIN> 21.330
<PER-SHARE-NII> .230
<PER-SHARE-GAIN-APPREC> 1.880
<PER-SHARE-DIVIDEND> .230
<PER-SHARE-DISTRIBUTIONS> 2.680
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 20.530
<EXPENSE-RATIO> 1.690
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000027574
<NAME> DELAWARE GROUP EQUITY FUNDS II, INC.
<SERIES>
<NUMBER> 014
<NAME> DECATUR INCOME FUND INSTITUTIONAL CLASS
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> NOV-30-1996
<PERIOD-END> MAY-31-1997
<INVESTMENTS-AT-COST> 1,767,846,482
<INVESTMENTS-AT-VALUE> 2,099,189,733
<RECEIVABLES> 34,009,715
<ASSETS-OTHER> 24,474
<OTHER-ITEMS-ASSETS> 615,890
<TOTAL-ASSETS> 2,133,839,812
<PAYABLE-FOR-SECURITIES> 15,426,243
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 3,163,830
<TOTAL-LIABILITIES> 18,590,073
<SENIOR-EQUITY> 103,074,585
<PAID-IN-CAPITAL-COMMON> 1,548,418,570
<SHARES-COMMON-STOCK> 13,204,789
<SHARES-COMMON-PRIOR> 11,450,646
<ACCUMULATED-NII-CURRENT> 1,313,066
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 131,100,266
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 331,343,251
<NET-ASSETS> 270,877,011
<DIVIDEND-INCOME> 26,379,227
<INTEREST-INCOME> 13,608,809
<OTHER-INCOME> 0
<EXPENSES-NET> 8,731,522
<NET-INVESTMENT-INCOME> 31,256,514
<REALIZED-GAINS-CURRENT> 133,460,699
<APPREC-INCREASE-CURRENT> 60,480,884
<NET-CHANGE-FROM-OPS> 225,198,097
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 4,132,765
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<CIK> 0000027574
<NAME> DELAWARE GROUP EQUITY FUNDS II, INC.
<SERIES>
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<NAME> QUANTUM FUND A CLASS
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<NAME> DELAWARE GROUP EQUITY FUNDS II, INC.
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<NAME> QUANTUM FUND A CLASS
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<TABLE> <S> <C>
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<CIK> 0000027574
<NAME> DELAWARE GROUP EQUITY FUNDS II, INC.
<SERIES>
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<NAME> QUANTUM FUND B CLASS
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<NAME> DELAWARE GROUP EQUITY FUNDS II, INC.
<SERIES>
<NUMBER> 043
<NAME> QUANTUM FUND C CLASS
<S> <C>
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<CIK> 0000027574
<NAME> DELAWARE GROUP EQUITY FUNDS II, INC.
<SERIES>
<NUMBER> 044
<NAME> QUANTUM FUND INSTITUTIONAL CLASS
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