DELAWARE GROUP EQUITY FUNDS II, N-30D, 2000-07-27

DELAWARE GROUP EQUITY FUNDS II
N-30D, 2000-07-27

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<PAGE>
DELAWARE(SM)
INVESTMENTS
-----------

Delaware Social Awareness Fund

Growth of Capital

2000 SEMI-ANNUAL REPORT

{Growth of Capital Artwork}

<PAGE>

TABLE OF CONTENTS
-----------------

Letter to Shareholders 1

Portfolio Management
Review 3

Performance Summary 5

Financial Statements

Statement of Net Assets 6

Statement of Operations 9

Statements of Changes in
Net Assets 10

Financial Highlights 11

Notes to Financial
Statements 15
--------------------------------------------------------------------------------

A TRADITION OF SOUND INVESTING SINCE 1929
-----------------------------------------

A Commitment To Our Investors

Experienced
o Our seasoned investment professionals average more than 15 years' experience.
o We began managing investments in 1929 and opened our first mutual fund in
1938. Over the past 70 years, we have weathered a full range of economic and
market environments.

Disciplined
o We follow strict investment policies and clear buy/sell guidelines.
o We strive to balance risk and reward in order to provide sound investment
alternatives within any given asset class.

Consistent
o We clearly articulate our investment policies and follow them consistently.
o Our commitment to consistency has earned us the confidence of discriminating
institutional and individual investors to manage approximately $45 billion in
assets as of June 30, 2000.

Comprehensive
o We offer more than 70 mutual funds in these asset classes.
o Large-cap equity o High-yield bonds
o Mid-cap equity o Investment grade bonds
o Small-cap equity o Municipal bonds (23 single-state funds)
o International equity o International fixed-income
o Balanced
o Our funds are available through financial advisers who can offer you
individualized attention and valuable investment advice.

Funds are not FDIC insured and are not guaranteed. It is possible to lose the
principal amount invested.
(C)Delaware Distributors, L.P.

<PAGE>

"YOUR FUND'S MID-CAP
BIAS HELPED IT AVOID
SOME OF THE DAMAGE
DONE TO THE LARGEST
STOCKS IN THE
BENCHMARK."

--------------------------------------------------------------------------------

Dear Shareholder

July 10, 2000

Recap of Events - If markets had names, the last six-month period would probably
be called A Tale of Two Markets - as investors experienced both "the best of
times and the worst of times." Led by shares of growth stocks in general and
technology companies in particular, the U.S. stock markets experienced a
powerful rally as the turn of the year approached.

At year end, your Fund's sub-adviser, Vantage Investment Advisors, predicted
that a rise of this magnitude could not continue. Yet the bull-run persisted
through the month of February. Then in March, April and May, investor sentiment
did an about-face. Fear of rising interest rates brought all of the major
indexes down in a retreat that was even more energetic than the advance that
preceded it. In most instances the high P/E momentum stocks that led the market
on the way up, also bore the brunt of the correction. At its lowest point, the
Fund's benchmark, the S&P 500 Index had retreated approximately 11% from its
high. By comparison, the tech-heavy Nasdaq Composite Index lost approximately
37%.

Delaware Social Awareness Fund returned +3.12% (Class A shares at net asset
value with distributions reinvested) during the six-month period and
outperformed its benchmark, the unmanaged S&P 500 Index, which returned +2.90%
for the same period. Your Fund's social screens tend to eliminate from the
portfolio companies in the energy and utilities industries, as well as many
large manufacturing companies. As a result, the Fund missed out on strong
performance in the energy and utilities sectors. But its mid-cap bias helped it
avoid some of the damage done to the largest stocks in the benchmark.

Total Return
For Period Ended May 31, 2000 Six Months
------------------------------------------------------------------------
Delaware Social Awareness Fund Class A +3.12%
------------------------------------------------------------------------
Lipper Multi-Cap Core Funds Average (418 funds) +6.37%
Standard and Poor's 500 Index +2.90%
------------------------------------------------------------------------

All performance shown above is at net asset value without the effect of sales
charges and assumes reinvestment of distributions. Performance information for
all Fund classes can be found on page 5. The Lipper category represents the
average of all multi-cap core funds tracked by Lipper Analytical (Source: Lipper
Analytical Services, Inc.). The Standard & Poor's 500 Index is an unmanaged
composite of mostly large-capitalization U.S. companies. You cannot invest
directly in an index. Past performance does not guarantee future results.

<PAGE>

--------------------------------------------------------------------------------

Market Outlook - Delaware Social Awareness Fund's portfolio management maintains
a cautiously optimistic stance going into the latter half of the year. Recent
news shows an economy that appears to be slowing. If a slowdown materializes and
impacts corporate earnings, it could have a negative influence on stock prices.
But if the Federal Reserve manages to engineer another soft landing for the
economy, the outlook could be bullish.

Either way, Delaware Social Awareness Fund's management will continue to use its
model-driven process to identify the companies in each sector that appear to
present the best value. In June, Paul Dokas took over as lead portfolio manager
of Delaware Social Awareness Fund. Mr. Dokas, who joined Delaware in 1997, is a
chartered financial analyst with expertise in asset allocation and quantitative
research for global investments. He is Director of Delaware Management's
structured research team. We are very excited to have Paul running the
portfolio, and look forward to his contributions in further refining the
quantitative investment model that is used to manage Delaware Social Awareness
Fund. At present, investors can expect the Fund's process, style and risk/return
characteristics to remain generally unchanged.

Thank you for your continued confidence in Delaware Investments. We look forward
to the second half of 2000, and to seeing your Fund take advantage of new
opportunities as they arise in the market.

Sincerely,

/s/ Wayne A. Stork /s/ David K. Downes
------------------------------------ --------------------------------------
Wayne A. Stork David K. Downes
Chairman, President and Chief Executive Officer,
Delaware Investments Family of Funds Delaware Investments Family of Funds

<PAGE>

J. Paul Dokas
Portfolio Manager
Delaware Management
July 10, 2000

PORTFOLIO MANAGEMENT REVIEW
---------------------------

The Fund's Results
Delaware Social Awareness Fund returned +3.12% for the six-month period ending
May 31, 2000 (Class A shares at net asset value with distributions reinvested).
The Fund outperformed its benchmark, the S&P 500, which returned +2.90% for the
same period.

The Fund's divergence from the benchmark is largely attributable to its social
screens. These screens eliminate certain types of companies, many of which are
large-cap, because of their involvement with industries that are at odds with
the Fund's socially responsible directives. For example, the Fund avoids large
industrial companies because of pollution concerns. Thus, the fact that mid-cap
stocks outperformed large caps during the period worked to the Fund's advantage.

While on the whole its size bias was a positive for your Fund, other structural
biases penalized its relative performance. Because of its environmental screen,
the Fund is underweighted in the oil and utilities sectors. These sectors
outperformed the market during the past six months--producing returns to which
the Fund was underexposed. At the same time, Delaware Social Awareness Fund's
social screens tend to favor technology stocks, which are environmentally
friendly. At the outset of the period, in a climate that strongly favored
growth, the technology sector was outpacing the market. By the close of the
period, we had seen the Justice Department's ruling on Microsoft, causing
jitters among investors in the technology sector. Your Fund's relative returns
were also exposed to these events.

Portfolio Highlights
In a market that has recently punished speculative momentum investors, we
continue to benefit from management's dynamic, bottom-up model. The model's role
is not to guess whether oil will outperform technology -- but rather, to select
the best stocks within each sector.

One example of such a choice is Houston-based energy conglomerate Enron, a
producer and distributor of both electricity and natural gas. During the most
recent period, Enron was again a top performer among stocks in the portfolio.
The company announced an alliance with Sun Microsystems to buy and sell space on
fiber optics networks to telephone, broadcast, and Internet companies. The news
sent the stock higher. Enron is a great example of a socially responsible
company that delivers positive returns while operating in a progressive,
environmentally responsible manner.

Acquisitions, meanwhile, played a considerable role for some of the portfolio's
top performers. Rexall Sundown, a manufacturer of health and wellness products,
and Snyder Communications, a direct marketing and advertising company, were both
the targets of acquisitions in the past six months. Investors in both cases
received the news well, driving the stock prices up.

3
<PAGE>
"DELAWARE SOCIAL
AWARENESS FUND'S
SOCIAL SCREENS TEND
TO FAVOR TECHNOLOGY
STOCKS, WHICH ARE
ENVIRONMENTALLY
FRIENDLY."

--------------------------------------------------------------------------------

An example of one of the portfolio's weaker performers this period is clothing
manufacturer and retailer Tommy Hilfiger. Retailers tend to be well-represented
in the portfolio, as they easily pass all the social screens. Earnings reported
in the first calendar quarter can be critical for a retailer's success, and
Tommy Hilfiger delivered earnings below Wall Street's expectations as a result
of weak holiday season sales. The news caused this holding, since sold from the
portfolio, to be a poor performer for the Fund.

Outlook
The American economy, now in its tenth year of expansion, has continued to grow
rapidly with relatively little inflation. Economic data released in early June,
however, showed visible signs that the U.S. economy may finally be slowing. This
came as welcome news on Wall Street, where hope is that the Federal Reserve will
end its campaign of raising interest rates intended to cool the economy and head
off inflation. While we expect that a slowdown in the domestic economy may occur
late in 2000, we believe that economic expansion in the rest of the world could
produce strong earnings surprises for many of the large, global companies in
which the Fund invests. A slower domestic economy should also bring about a
welcome broadening of the market.

We are confident that our disciplined, objective approach to selecting stocks
with the potential for long-term capital appreciation positions us to take
advantage of new opportunities as they arise in the markets.

Top Portfolio Holdings
May 31, 2000
<TABLE>
<CAPTION>
Company Industry Percentage of Net Assets
-------------------------------------------------------------------------------------------
<S> <C> <C>
Cisco Systems Computers & Technology 3.3%
-------------------------------------------------------------------------------------------
Microsoft Computers & Technology 3.3%
-------------------------------------------------------------------------------------------
Citigroup Banking, Finance & Insurance 2.7%
-------------------------------------------------------------------------------------------
Eli Lilly Healthcare & Pharmaceuticals 2.5%
-------------------------------------------------------------------------------------------
EMC Computers & Technology 2.4%
-------------------------------------------------------------------------------------------
Nortel Networks Telecommunications 2.3%
-------------------------------------------------------------------------------------------
Walt Disney Leisure, Lodging & Entertainment 2.2%
-------------------------------------------------------------------------------------------
Wal-Mart Stores Retail 2.1%
-------------------------------------------------------------------------------------------
SBC Communications Telecommunications 2.1%
-------------------------------------------------------------------------------------------
BellSouth Telecommunications 2.0%
-------------------------------------------------------------------------------------------
</TABLE>

4
<PAGE>
FUND BASICS
-----------

Fund Objective
The Fund seeks to provide long-term capital appreciation. It invests primarily
in mid-size to large companies that meet certain socially responsible investment
criteria.

Total Fund Assets
$95.51 million

Number of Holdings
148

Fund Start Date
February 24, 1997

Your Fund Manager
J. Paul Dokas joined Delaware Investments in 1997. He was previously Director of
Trust Investment Management at Bell Atlantic Corp. Mr. Dokas earned a bachelor's
degree at Loyola College in Baltimore and an MBA degree at the University of
Maryland. He is a Chartered Financial Analyst.

Nasdaq Symbols
Class A DEQAX
Class B DEQBX
Class C DEQCX

--------------------------------------------------------------------------------

FUND PERFORMANCE
----------------

Average Annual Total Returns
Through May 31, 2000 Lifetime Three Years One Year
--------------------------------------------------------------------------------
Class A (Est. 2/24/97)
Excluding Sales Charge +15.13% +15.41% +9.60%
Including Sales Charge +13.06% +13.18% +3.27%
--------------------------------------------------------------------------------
Class B (Est. 2/24/97)
Excluding Sales Charge +14.28% +14.53% +8.85%
Including Sales Charge +13.60% +13.76% +3.85%
--------------------------------------------------------------------------------
Class C (Est. 2/24/97)
Excluding Sales Charge +14.28% +14.53% +8.76%
Including Sales Charge +14.28% +14.53% +7.76%
--------------------------------------------------------------------------------

Returns reflect reinvestment of distributions and any applicable sales charges
as noted below. Return and share values will fluctuate so that shares, when
redeemed, may be worth more or less than their original cost. Class B and C
results excluding sales charges assume either that contingent deferred sales
charges were not applied or the investment was not redeemed. Class A share
results, excluding sales charge, assume that the front-end sales charge was not
imposed. Past performance is not a guarantee of future results.

Class A shares have a 5.75% maximum front-end sales charge and a 12b-1 fee.

Class B shares do not have a front-end sales charge, but are subject to a 1%
annual distribution and service fee. They are also subject to a contingent
deferred sales charge of up to 5% if redeemed before the end of the sixth year.

Class C shares have a 1% annual distribution and service fee. If redeemed within
12 months, a 1% contingent deferred sales charge applies.

An expense limitation was in effect for all classes of Delaware Social Awareness
Fund during the period. Performance would have been lower if the expense
limitation was not in effect.

The average annual total returns for the lifetime, three-year and one-year
periods ended May 31, 2000 for Delaware Social Awareness Fund Institutional
Class were +15.42%, +15.68%, and +9.87%, respectively. The Institutional Class
was originally made available without sales charges only to certain eligible
institutional accounts on February 24, 1997.

Nasdaq Symbol Institutional Class: DEQNX

<PAGE>
Statement of Net Assets

DELAWARE SOCIAL AWARENESS FUND
------------------------------

Number of Market
May 31, 2000 (Unaudited) Shares Value
--------------------------------------------------------------------------------
Common Stock - 99.18%
Banking, Finance & Insurance - 21.32%
A.G. Edwards ...................................... 20,955 $ 732,115
Allmerica Financial ............................... 3,600 207,675
Allstate .......................................... 14,930 395,645
AmSouth Bancorporation ............................ 4,304 77,741
Ambac Financial Group ............................. 4,100 206,538
American Express .................................. 24,300 1,307,644
American International Group ...................... 10,375 1,167,836
BB&T .............................................. 2,000 58,625
Bank of America ................................... 32,000 1,778,000
Chase Manhattan ................................... 11,300 843,969
Citigroup ......................................... 41,952 2,608,890
City National ..................................... 405 15,795
Comerica .......................................... 8,070 408,544
Conseco ........................................... 2,400 15,000
Dime Bancorp ...................................... 40,300 735,475
Freddie Mac ....................................... 5,500 244,750
Fannie Mae ........................................ 18,600 1,118,325
Financial Security Assurance Holdings Limited ..... 400 30,050
First Union ....................................... 7,590 267,073
Hartford Financial Services ....................... 17,800 1,052,425
Hibernia Class A .................................. 28,100 361,788
J.P. Morgan ....................................... 1,400 180,250
MGIC Investment ................................... 3,000 148,687
Marsh & McLennan .................................. 4,520 497,482
Mellon Financial .................................. 640 24,680
Merrill Lynch & Company ........................... 3,400 335,325
Metris ............................................ 6,808 251,896
Morgan Stanley Dean Witter ........................ 22,700 1,632,981
National City ..................................... 9,424 188,480
PMI Group ......................................... 6,650 337,488
PNC Financial Group ............................... 4,300 216,613
Paine Webber Group ................................ 13,905 624,856
SLM Holding ....................................... 13,902 468,324
SouthTrust ........................................ 6,600 178,613
St. Paul .......................................... 6,100 228,750
T. Rowe Price Associates .......................... 4,700 179,481
Unionbancal Corporation ........................... 21,300 729,525
Valley National Bancorp ........................... 1,777 45,758
Washington Mutual ................................. 16,093 462,674
-----------
20,365,766
-----------
Buildings & Materials - 0.88%
*American Standard ................................. 8,300 383,356
Kaufman & Broad Home .............................. 19,700 341,056
York International ................................ 4,400 114,950
-----------
839,362
-----------
Cable, Media & Publishing - 5.08%
Dun and Bradstreet ................................ 14,690 451,718
Gannett ........................................... 8,860 573,685
Knight-Ridder ..................................... 4,400 233,200
McGraw-Hill ....................................... 14,800 761,275

<PAGE>

Number of Market
Shares Value
--------------------------------------------------------------------------------
Common Stock (continued)
Cable, Media & Publishing (continued)
New York Times .................................... 21,970 $ 843,099
Omnicom Group ..................................... 6,560 550,630
*R.H. Donnelley .................................... 16,938 313,353
*Snyder Communications ............................. 2,000 45,250
Time Warner ....................................... 7,800 615,713
*Valassis Communications ........................... 14,050 463,650
----------
4,851,573
----------
Chemicals - 0.94%
Avery Dennison .................................... 4,200 257,250
Lubrizol .......................................... 27,600 638,250
----------
895,500
----------
Computers & Technology - 20.83%
*Adaptec ........................................... 13,400 263,812
*America Online .................................... 21,800 1,155,400
*American Power Conversion ......................... 3,640 128,992
*Apple Computer .................................... 8,500 714,000
*Applied Materials ................................. 8,800 734,800
*BMC Software ...................................... 6,800 299,200
*Cisco Systems ..................................... 55,800 3,180,600
Compaq Computer ................................... 11,200 294,000
Computer Associates International ................. 21,000 1,081,500
*Compuware ......................................... 22,800 232,275
*Comverse Technology ............................... 11,400 1,041,675
*Dell Computer ..................................... 32,700 1,410,187
Deluxe ............................................ 21,525 531,398
*EMC ............................................... 19,600 2,279,725
*Electronics Arts .................................. 500 31,937
*Lexmark International ............................. 8,600 599,850
Linear Technology ................................. 5,600 330,750
*Microsoft ......................................... 49,900 3,121,869
*Oracle ............................................ 21,500 1,545,312
*Symantec .......................................... 3,900 256,425
*Teradyne .......................................... 5,000 430,000
*Yahoo ............................................. 2,000 226,125
-----------
19,889,832
-----------
Consumer Products - 2.81%
Avon Products ..................................... 10,230 422,627
Gillette .......................................... 10,000 333,750
Keebler Foods ..................................... 24,000 870,000
Maytag ............................................ 11,400 373,350
*United Stationers ................................. 21,400 684,800
-----------
2,684,527
-----------
Electronics & Electrical Equipment - 2.93%
*Conexant Systems .................................. 500 18,812
General Cable ..................................... 21,100 175,394
*LSI Logic ......................................... 7,800 410,962
*Microchip Technology .............................. 12,000 681,187
*Sanmina ........................................... 12,700 808,037
*Waters ............................................ 7,500 708,750
-----------
2,803,142
-----------

<PAGE>
Statement of Net Assets (continued)

Number of Market
Delaware Social Awareness Fund Shares Value
--------------------------------------------------------------------------------
Common Stock (continued)
Energy - 5.95%
Apache ............................................ 6,400 $ 389,600
*BJ Services ....................................... 11,200 802,200
BP Amoco .......................................... 30,000 1,631,250
*Barrett Resources ................................. 6,700 265,069
*Enron ............................................. 25,600 1,865,600
Equitable Resources ............................... 7,600 378,100
*Noble Drilling .................................... 300 13,013
Questar ........................................... 16,500 335,156
----------
5,679,988
----------
Food & Beverage - 2.75%
General Mills ..................................... 17,600 698,500
Interstate Bakeries ............................... 16,620 240,990
McCormick and Company ............................. 7,700 250,250
Quaker Oats ....................................... 13,690 1,007,071
*Suiza Foods ....................................... 9,600 430,800
----------
2,627,611
----------
Healthcare & Pharmaceuticals - 9.48%
*AmeriSource Health ................................ 11,200 273,000
*Amgen ............................................. 16,900 1,075,262
Bergen Brunswig Class A ........................... 30,467 158,048
*Biogen ............................................ 3,600 196,200
*Boston Scientific ................................. 11,000 281,875
C.R. Bard ......................................... 16,400 748,250
Cardinal Health ................................... 13,448 872,439
Eli Lilly ......................................... 30,800 2,344,650
*Health Management Associates ...................... 1,300 15,356
*IVAX .............................................. 16,300 613,288
McKesson .......................................... 19,259 316,570
Medtronic ......................................... 26,446 1,365,275
Mylan Laboratories ................................ 16,900 453,131
*Rexall Sundown .................................... 14,500 345,281
----------
9,058,625
----------
Industrial Machinery - 1.15%
Illinois Tool Works ............................... 8,323 483,254
Ingersoll-Rand .................................... 13,400 610,537
----------
1,093,791
----------
Leisure, Lodging & Entertainment - 2.68%
McDonald's ........................................ 12,600 451,238
Walt Disney ....................................... 50,000 2,109,375
----------
2,560,613
----------
Metals & Mining - 0.28%
Cleveland Cliffs Iron ............................. 4,440 112,942
Worthington Industries ............................ 12,700 153,987
----------
266,929
----------
Retail - 6.65%
*Dollar Tree Stores ................................ 500 29,750
*Federated Department Stores ....................... 16,400 631,400
Gap ............................................... 2,282 80,013
Home Depot ........................................ 28,800 1,405,800

<PAGE>

Number of Market
Delaware Social Awareness Fund Shares Value
--------------------------------------------------------------------------------
Common Stock (continued)
Retail (continued)
Ross Stores ....................................... 13,930 $ 294,271
*Safeway ........................................... 14,240 656,820
TJX ............................................... 15,480 334,755
Tupperware Corporation ............................ 14,700 324,319
Wal-Mart Stores ................................... 35,400 2,039,925
*Zales ............................................. 14,500 551,000
----------
6,348,053
----------
Telecommunications - 13.28%
Alltel ............................................ 15,800 1,033,912
BellSouth ......................................... 41,200 1,923,525
Corning ........................................... 1,800 348,188
Ericsson .......................................... 35,000 717,500
Nortel Networks ................................... 40,600 2,205,088
*Qualcomm .......................................... 4,200 278,775
SBC Communications ................................ 46,016 2,010,324
Sprint ............................................ 14,200 859,100
*Tellabs ........................................... 13,440 872,760
US West ........................................... 20,980 1,510,560
*Worldcom .......................................... 24,600 925,575
----------
12,685,307
----------
Textiles, Apparel & Furniture - 0.51%
Newell Rubbermaid ................................. 9,696 254,520
Westpoint Stevens ................................. 23,100 235,331
----------
489,851
----------
Transportation & Shipping - 1.05%
Delta Air Lines ................................... 7,300 375,494
Tidewater ......................................... 9,500 369,313
UAL Corporation ................................... 5,040 259,560
----------
1,004,367
----------
Utilities - 0.61%
CenturyTel ........................................ 1,350 36,450
Puget Sound Energy ................................ 23,500 541,969
----------
578,419
----------
Total Common Stock (cost $78,804,258) 94,723,256
----------

7
<PAGE>

Statement of Net Assets (continued)

Principal Market
Delaware Social Awareness Fund Amount Value
--------------------------------------------------------------------------------
Repurchase Agreements - 0.84%
With Chase Manhattan 6.33% 6/1/00 (dated
5/31/00, collateralized by $275,000
U.S. Treasury Notes 5.875% due 11/15/04,
market value $266,620) .............................. $261,000 $ 261,000
With J.P. Morgan Securities 6.33% 6/1/00
(dated 5/31/00, collateralized by $104,000
U.S. Treasury Notes 6.50% due 5/31/01,
market value $103,407 and $73,000
U.S. Treasury Notes 6.625% due 6/30/01,
market value $74,474 and $16,000
U.S. Treasury Notes 6.50% due 8/31/01,
market value $16,377 and $81,000
U.S. Treasury Notes 6.375% due 9/30/01,
market value $81,015) ............................... 270,000 270,000
With PaineWebber 6.63% 6/1/00 (dated
5/31/00, collateralized by $104,000
U.S. Treasury Notes 5.00% due 4/30/01,
market value $102,528 and $66,000
U.S. Treasury Notes 6.25% due 1/31/02,
market value $66,732 and $104,000
U.S. Treasury Notes 7.25% due 5/15/04,
market value $106,011) .............................. 270,000 270,000
-----------
Total Repurchase Agreements
(cost $801,000) ..................................... 801,000
-----------
Total Market Value of Securities - 100.02%
(cost $79,605,258) .................................. $95,524,256
Liabilities Net of Receivables and Other
Assets - (0.02%) .................................... (15,173)
-----------
Net Assets Applicable to 7,295,147 Shares
Outstanding - 100.00% ............................... $95,509,083
===========
Net Asset Value - Delaware Social Awareness
Fund A Class ($42,824,620 /
3,226,994 shares) ................................... $13.27
------
Net Asset Value - Delaware Social Awareness
Fund B Class ($40,681,528 /
3,142,069 shares) ................................... $12.95
------
Net Asset Value - Delaware Social Awareness
Fund C Class ($11,609,142 /
896,645 shares) ..................................... $12.95
------
Net Asset Value - Delaware Social Awareness
Fund Institutional Class ($393,793 /
29,439 shares) ...................................... $13.38
------
----------------------
* Non-income producing security for the six months ended May 31, 2000.

<PAGE>

Components of Net Assets at May 31, 2000:
Shares of beneficial interest (Unlimited
authorization-no par) ............................. $77,403,986
Accumulated net investment loss ...................... (341,330)
Accumulated net realized gain on investments ......... 2,527,429
Net unrealized appreciation of investments ........... 15,918,998
-----------
Total net assets ..................................... $95,509,083
===========
Net Asset Value and Offering Price Per Share -
Delaware Social Awareness Fund
Net Asset Value A Class (A) .......................... $13.27
Sales charge (5.75% of offering or 6.10% of
amount invested per share) (B) ....................... 0.81
------
Offering price ....................................... $14.08
======
----------------------
(A) Net asset value per share, as illustrated, is the estimated amount which
would be paid upon redemption or repurchase of shares.
(B) See the current prospectus for purchases of $50,000 or more.

See accompanying notes

<PAGE>

Statement of Operations

Six Months Ended May 31, 2000 (Unaudited) Delaware Social Awareness Fund
------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Investment Income:
Dividends ............................................................ $555,077
Interest ............................................................. 33,282 $588,359
-------- ----------
Expenses:
Management fees ...................................................... 366,751
Distribution expense ................................................. 326,791
Dividend disbursing and transfer agent fees and expenses ............. 175,339
Registration fees .................................................... 39,500
Reports and statements to shareholders ............................... 34,890
Accounting and administration ........................................ 23,561
Custodian fees ....................................................... 7,258
Professional fees .................................................... 1,950
Trustee's fees ....................................................... 1,548
Other ................................................................ 12,531 990,119
-------- ----------

Less expenses absorbed or waived ..................................... (58,998)
Less expenses paid indirectly ........................................ (1,432)
----------
Total expenses ....................................................... 929,689
----------
Net Investment Loss .................................................. (341,330)
----------

Net Realized and Unrealized Gain on Investments:
Net realized gain on investments ..................................... 2,535,255
Net change in unrealized appreciation/depreciation of investments .... 578,252
----------
Net Realized and Unrealized Gain on Investments ...................... 3,113,507
----------
Net Increase in Net Assets Resulting from Operations ................. $2,772,177
==========

</TABLE>

See accompanying notes

<PAGE>

Statements of Changes in Net Assets

<TABLE>
<CAPTION>
Delaware Social Awareness Fund
---------------------------------------------------------------------------------------------------------
Six Months Year
Ended Ended
5/31/00 11/30/99
(Unaudited)
<S> <C> <C>
Increase (Decrease) in Net Assets from Operations:
Increase (decrease) in net assets from operations:
Net investment loss ....................................................... $ (341,330) $ (689,792)
Net realized gain on investments .......................................... 2,535,255 2,314,794
Net change in unrealized appreciation/depreciation of investments ......... 578,252 10,745,101
----------- -----------
Net increase in net assets resulting from operations ...................... 2,772,177 12,370,103
----------- -----------

Distribution to Shareholders from:
Net realized gain on investments:
A Class ................................................................. (507,370) --
B Class ................................................................. (465,117) --
C Class ................................................................. (111,694) --
Institutional Class ..................................................... (3,633) --
----------- -----------
(1,087,814) --
----------- -----------
Capital Share Transactions:
Proceeds from shares sold:
A Class ................................................................. 5,442,043 14,511,988
B Class ................................................................. 3,941,393 13,994,716
C Class ................................................................. 3,340,160 3,750,889
Institutional Class ..................................................... 157,394 309,395

Net asset value of shares issued upon reinvestment of distributions
from net realized gain on investments:
A Class ................................................................. 478,814 --
B Class ................................................................. 438,183 --
C Class ................................................................. 106,829 --
Institutional Class ..................................................... 3,633 --
----------- -----------
13,908,449 32,566,988
----------- -----------
Cost of shares repurchased:
A Class ................................................................. (10,352,421) (13,191,820)
B Class ................................................................. (5,442,352) (7,945,146)
C Class ................................................................. (1,635,437) (4,030,779)
Institutional Class ..................................................... (101,480) (413,514)
----------- -----------
(17,531,690) (25,581,259)
----------- -----------

Increase (decrease) in net assets derived from capital
share transactions ........................................................ (3,623,241) 6,985,729
----------- -----------
Net Increase (Decrease) in Net Assets ..................................... (1,938,878) 19,355,832

Net Assets:
Beginning of period ....................................................... 97,447,961 78,092,129
----------- -----------
End of period ............................................................. $95,509,083 $97,447,961
=========== ===========

</TABLE>

See accompanying notes

<PAGE>

Financial Highlights

Selected data for each share of the Fund outstanding
throughout each period were as follows: Delaware Social Awareness Fund A Class
-----------------------------------------------------------------------------------------------------------------

Six Months(1) Period
Ended Year Ended 2/24/97(2) to
5/31/00 11/30/99 11/30/98 11/30/97
(Unaudited)
<S> <C> <C> <C> <C>
Net asset value, beginning of period ............................. $13.010 $11.260 $10.330 $8.500

Income (loss) from investment operations:
Net investment income (loss)(3)................................. (0.020) (0.043) 0.015 0.007
Net realized and unrealized gain on investments ................ 0.425 1.793 0.955 1.823
--------------------------------------------
Total from investment operations ................................. 0.405 1.750 0.970 1.830
--------------------------------------------

Less distributions:
Distributions from net realized gain on investments ............ (0.145) -- (0.040) --
--------------------------------------------
Total distributions ............................................ (0.145) -- (0.040) --
--------------------------------------------

Net asset value, end of period ................................... $13.270 $13.010 $11.260 $10.330
============================================

Total return(4) .................................................. 3.12% 15.44% 9.52% 21.53%

Ratios and supplemental data:
Net assets, end of period (000 omitted) ........................ $42,825 $46,354 $38,858 $9,115
Ratio of expenses to average net assets ........................ 1.50% 1.49% 1.45% 1.50%
Ratio of expenses to average net assets prior to expense
limitation and expenses paid indirectly ..................... 1.65% 1.69% 1.56% 1.96%
Ratio of net investment income (loss) to average net assets .... (0.30%) (0.35%) 0.14% 0.38%
Ratio of net investment income (loss) to average net assets
prior to expense limitation and expenses paid indirectly .... (0.45%) (0.55%) 0.03% (0.08%)
Portfolio turnover ............................................. 35% 28% 22% 29%
</TABLE>

----------------------
(1) Ratios have been annualized and total return has not been annualized.
(2) Date of commencement of operations; ratios have been annualized and total
return has not been annualized.
(3) The average shares outstanding method has been applied for per share
information.
(4) Total investment return is based on the change in net asset value of a share
during the period and assumes reinvestment of distributions at net asset
value and does not reflect the impact of a sales charge.

See accompanying notes

<PAGE>

Financial Highlights (continued)

Selected data for each share of the Fund outstanding
throughout each period were as follows: Delaware Social Awareness Fund B Class
------------------------------------------------------------------------------------------------------------------
Six Months(1) Period
Ended Year Ended 2/24/97(2) to
5/31/00 11/30/99 11/30/98 11/30/97
(Unaudited)
<S> <C> <C> <C> <C>
Net asset value, beginning of period ............................. $12.740 $11.120 $10.280 $8.500

Income (loss) from investment operations:
Net investment income (loss)(3) ................................ (0.068) (0.133) (0.066) (0.044)
Net realized and unrealized gain on investments ................ 0.423 1.753 0.946 1.824
--------------------------------------------
Total from investment operations ............................... 0.355 1.620 0.880 1.780
--------------------------------------------

Net asset value, end of period ................................... $12.950 $12.740 $11.120 $10.280
============================================

Total return(4)................................................... 2.78% 14.57% 8.60% 20.94%

Ratios and supplemental data:
Net assets, end of period (000 omitted) ........................ $40,681 $41,091 $30,172 $6,919
Ratio of expenses to average net assets ........................ 2.25% 2.24% 2.20% 2.20%
Ratio of expenses to average net assets prior to expense
limitation and expenses paid indirectly ...................... 2.35% 2.39% 2.26% 2.66%
Ratio of net investment income (loss) to average net assets .... (1.05%) (1.10%) (0.61%) (0.32%)
Ratio of net investment income (loss) to average net assets
prior to expense limitation and expenses paid indirectly ..... (1.15%) (1.25%) (0.67%) (0.78%)
Portfolio turnover ............................................. 35% 28% 22% 29%

</TABLE>

See accompanying notes

<PAGE>

Financial Highlights (continued)

<TABLE>
<CAPTION>
Selected data for each share of the Fund outstanding
throughout each period were as follows: Delaware Social Awareness Fund C Class
------------------------------------------------------------------------------------------------------------------

Income (loss) from investment operations:
Net investment income (loss)(3) ................................ (0.065) (0.133) (0.068) (0.044)
Net realized and unrealized gain on investments ................ 0.420 1.753 0.948 1.824
----------------------------------------------
Total from investment operations ............................... 0.355 1.620 0.880 1.780
----------------------------------------------

Less distributions:
Distributions from net realized gain on investments ............ (0.145) -- (0.040) --
----------------------------------------------
Total distributions ............................................ (0.145) -- (0.040) --
----------------------------------------------

Net asset value, end of period ................................... $12.950 $12.740 $11.120 $10.280
==============================================
Total return(4) .................................................. 2.78% 14.57% 8.60% 20.94%

Ratios and supplemental data:
Net assets, end of period (000 omitted) ........................ $11,609 $9,673 $8,683 $1,290
Ratio of expenses to average net assets ........................ 2.25% 2.24% 2.20% 2.20%
Ratio of expenses to average net assets prior to expense
limitation and expenses paid indirectly ...................... 2.35% 2.39% 2.26% 2.66%
Ratio of net investment income (loss) to average net assets .... (1.05%) (1.10%) (0.61%) (0.32%)
Ratio of net investment income (loss) to average net assets
prior to expense limitation and expenses paid indirectly ..... (1.15%) (1.25%) (0.67%) (0.78%)
Portfolio turnover ............................................. 35% 28% 22% 29%
</TABLE>

See accompanying notes

13
<PAGE>

Financial Highlights (continued)

Selected data for each share of the Fund outstanding
throughout each period were as follows: Delaware Social Awareness Fund Institutional Class
-------------------------------------------------------------------------------------------------------------------
Six Months(1) Period
Ended Year Ended 2/24/97(2) to
5/31/00 11/30/99 11/30/98 11/30/97
(Unaudited)
<S> <C> <C> <C> <C>
Net asset value, beginning of period ............................. $13.090 $11.310 $10.350 $8.500

Income (loss) from investment operations:
Net investment income (loss)(3) ................................ (0.003) (0.012) 0.043 0.029
Net realized and unrealized gain on investments ................ 0.438 1.792 0.957 1.821
----------------------------------------------
Total from investment operations ............................... 0.435 1.780 1.000 1.850
----------------------------------------------

Net asset value, end of period ................................... $13.380 $13.090 $11.310 $10.350
==============================================

Total return(4)................................................... 3.33% 15.74% 9.70% 21.77%

Ratios and supplemental data:
Net assets, end of period (000 omitted) ........................ $394 $329 $379 $107
Ratio of expenses to average net assets ........................ 1.25% 1.24% 1.20% 1.20%
Ratio of expenses to average net assets prior to expense
limitation and expenses paid indirectly ...................... 1.35% 1.39% 1.26% 1.66%
Ratio of net investment income (loss) to average net assets .... (0.05%) (0.10%) 0.39% 0.68%
Ratio of net investment income (loss) to average net assets
prior to expense limitation and expenses paid indirectly ..... (0.15%) (0.25%) 0.33% 0.22%
Portfolio turnover ............................................. 35% 28% 22% 29%
</TABLE>

See accompanying notes

<PAGE>

Notes to Financial Statements

May 31, 2000 (Unaudited)
--------------------------------------------------------------------------------
Delaware Group Equity Funds II (the "Company") is organized as a Delaware
business trust and offers five funds: Delaware Decatur Equity Income Fund,
Delaware Growth and Income Fund, Delaware Blue Chip Fund, Delaware Social
Awareness Fund and Delaware Diversified Value Fund. These financial statements
and related notes pertain to Delaware Social Awareness Fund (the "Fund").
Delaware Social Awareness Fund is registered as a diversified open-end
investment company under the Investment Company Act of 1940, as amended. The
Fund offers four classes of shares. The Delaware Social Awareness Fund A Class
carries a front-end sales charge of 5.75%. The Delaware Social Awareness Fund B
Class carries a back-end sales charge. The Delaware Social Awareness Fund C
Class carries a level load deferred sales charge and the Delaware Social
Awareness Fund Institutional Class has no sales charge.

The Fund's objective 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 meet the Fund's "Socially
Responsible" criteria.

1. Significant Accounting Policies
The following accounting policies are in accordance with accounting principles
generally accepted in the United States and are consistently followed by the
Fund.

Security Valuation - All equity securities are valued at the last quoted sales
price as of the regular close of the New York Stock Exchange (NYSE) on the
valuation date. If on a particular day an equity security does not trade then
the mean between the bid and asked prices will be used. Long-term debt
securities are valued by an independent pricing service. 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 Trustees.

Federal Income Taxes - The Fund intends to continue to qualify as a regulated
investment company and make the requisite distributions to shareholders.
Accordingly, no provision for federal income taxes has been made in the
financial statements. Income and capital gain distributions are determined in
accordance with federal income tax regulations, which may differ from accounting
principles generally accepted in the United States.

Class Accounting - Investment income, common expenses and realized and
unrealized gain (loss) on investments are allocated to the various classes of
the Fund on the basis of daily net assets of each class. Distribution expenses
relating to a specific class are charged directly to that class.

Repurchase Agreements - The Fund may invest in a pooled cash account along with
other members of the Delaware Investments Family 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

<PAGE>

respective collateral is held by the Fund's custodian bank until the maturity of
the respective repurchase agreements. Each repurchase agreement is at least 102%
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.

Use of Estimates - The preparation of financial statements in conformity with
accounting principles generally accepted in the United States requires
management to make estimates and assumptions that affect the reported amounts of
assets and liabilities at the date of the financial statements and the reported
amounts of revenues and expenses during the reporting period. Actual results
could differ from those estimates.

Other - Expenses common to all funds within the Delaware Investments Family of
Funds are allocated amongst the funds on the basis of average net assets.
Security transactions are recorded on the date the securities are purchased or
sold (trade date). 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. The Fund declares and pays dividends from net
investment income and capital gains, if any, annually.

Certain expenses of the Fund are paid through commission arrangements with
brokers. These transactions are done subject to best execution. The amount of
these expenses was approximately $1,124 for the six months ended May 31, 2000.
In addition, the Fund receives earnings credits from its custodian when positive
cash balances are maintained, which are used to offset custody fees. These
credits were $308 for the six months ended May 31, 2000. The expenses paid under
the above arrangements are included in their respective expense captions on the
Statement of Operations with the corresponding expense offset shown as "expenses
paid indirectly."

2. Investment Management and Other Transactions with Affiliates
In accordance with the terms of the Investment Management Agreement, the Fund
pays Delaware Management Company (DMC), the Investment Manager of the Fund, an
annual fee which is calculated daily at the rate of 0.75% on the first $500
million of average daily net assets, 0.70% on the next $500 million and 0.65% on
the next $1,500 million, and 0.60% on average daily net assets in excess of
$2,500 million. At May 31, 2000, the Fund had a liability for Investment
Management fees and other expenses payable to DMC of $76,517.

DMC has entered into a sub-advisory agreement with Vantage Investment Advisors,
Inc., an affiliate of DMC, with respect to the management of the Fund. For the
services provided to DMC, DMC pays the sub-adviser an annual fee which is
calculated at the rate of 0.20% of average daily net assets averaging one year
old or less, 0.25% of average daily net assets averaging two years or less but
greater than one year and 0.40% of average daily net assets averaging over two
years old. The Fund does not pay any fees to the sub-adviser.

15
<PAGE>
Notes to Financial Statements (continued)

--------------------------------------------------------------------------------
2. Investment Management and Other Transactions with Affiliates (continued)
DMC has elected to waive the portion, if any, of the management fee and
reimburse the Fund to the extent that annual operating expenses, exclusive of
taxes, interest, brokerage commissions, extraordinary expenses and distribution
expenses exceed 1.25% of average daily net assets of the Fund through January
31, 2001.

The Fund has engaged Delaware Service Company, Inc. (DSC), an affiliate of DMC,
to provide dividend disbursing, transfer agent, accounting and administrative
services. The Fund pays DSC a monthly fee based on the number of shareholder
accounts, shareholder transactions and average net assets, subject to certain
minimums. At May 31, 2000, the Fund had a liability for such fees and other
expenses payable to DSC of $28,994.

Pursuant to the Distribution Agreement, the Fund pays Delaware Distributors,
L.P. (DDLP), the Distributor and an affiliate of DMC, an annual fee not to
exceed 0.30% of the average daily net assets of A Class and 1.00% of the average
daily net assets of the B and C Class. For the period from February 1, 1999
through July 31, 2000, DDLP has elected to waive its fees to ensure that annual
fees received from A Class do not exceed 0.25% of the average daily net assets
of A Class.

For the six months ended May 31, 2000, DDLP earned $16,807 for commissions on
sales of the Fund A Class shares.

Certain officers of DMC, DSC and DDLP are officers, trustees and/or employees of
the Fund. These officers, trustees and employees are paid no compensation by the
Fund.

3. Investments
During the six months ended May 31, 2000, the Fund made purchases of $17,116,660
and sales of $22,242,850 of investment securities other than temporary cash
investments. The cost of investments for federal income tax purposes
approximates the cost for book purposes. At May 31, 2000, the aggregate cost of
securities for federal income tax purposes was $79,605,258.

At May 31, 2000, net unrealized appreciation for federal income tax purposes
aggregated $15,918,998 of which $23,706,228 related to unrealized appreciation
of securities and $7,787,230 related to unrealized depreciation of securities.

4. Capital Shares
Transactions in capital shares were as follows:

Six Months Year
Ended Ended
5/31/00 11/30/99
Shares sold:
A Class ........................................... 412,642 1,181,319
B Class ........................................... 302,782 1,164,562
C Class ........................................... 254,918 308,899
Institutional Class ............................... 11,606 24,716

Shares issued upon reinvestment of
distributions from net realized gain
on investments:
A Class ........................................... 36,110 --
B Class ........................................... 33,758 --
C Class ........................................... 8,230 --
Institutional Class ............................... 272 --
---------- ----------
1,060,318 2,679,496
---------- ----------

Shares repurchased:
A Class ........................................... (785,070) (1,068,001)
B Class ........................................... (419,903) (653,313)
C Class ........................................... (125,728) (330,699)
Institutional Class ............................... (7,570) (33,067)
---------- ----------
(1,338,271) (2,085,080)
---------- ----------
Net increase (decrease) ............................. (277,953) 594,416
========== ==========
5. Lines of Credit
The Fund, along with certain other funds in the Delaware Investments Family of
Funds (the "Participants"), participate in a $683,500,000 revolving line of
credit facility to be used for temporary or emergency purposes as an additional
source of liquidity to fund redemptions of investor shares. The Participants are
charged an annual commitment fee, which is allocated across the Participants on
the basis of each fund's allocation of the entire facility. The Participants may
borrow up to a maximum of one third of their net assets under the agreement. No
amount was outstanding at May 31, 2000, or at any time during the period.

16
<PAGE>

DELAWARE INVESTMENTS FAMILY OF FUNDS

Complete information on any fund offered by Delaware Investments can be found in
each fund's current prospectus. Prospectuses for all funds offered by Delaware
Investments are available from your financial adviser. Please read the
prospectus carefully before you invest or send money.
<TABLE>
<CAPTION>
Growth of Capital International and Global Tax-Exempt Income
<S> <C> <C>
o Technology and Innovation o Emerging Markets Fund o National High-Yield
Fund o New Pacific Fund Municipal Bond Fund
o Select Growth Fund o Overseas Equity Fund o Tax-Free USA Fund
o Trend Fund o International Equity Fund o Tax-Free Insured Fund
o Growth Opportunities Fund* o Global Equity Fund o Tax-Free USA
o Small Cap Value Fund o Global Bond Fund Intermediate Fund
o U.S. Growth Fund o State Tax-Free Funds**
o Tax-Efficient Equity Fund Current Income
o Social Awareness Fund o Delchester Fund Stability of Principal
o High-Yield o Cash Reserve
Total Return Opportunities Fund o Tax-Free Money Fund
o Blue Chip Fund o Strategic Income Fund
o Devon Fund o Corporate Bond Fund Asset Allocation
o Growth and Income Fund o Extended Duration o Foundation Funds
o Decatur Equity Bond Fund Growth Portfolio
Income Fund o American Government Balanced Portfolio
o REIT Fund Bond Fund Income Portfolio
o Balanced Fund o U.S. Government
Securities Fund
o Limited-Term
Government Fund

</TABLE>
* Formerly known as DelCap Fund.

** Available for the following states: Arizona, California, Colorado, Florida,
Idaho, Iowa, Kansas, Minnesota, Missouri, Montana, North Dakota, New Jersey,
New Mexico, New York, Oregon, Pennsylvania and Wisconsin. Insured and
intermediate bond funds are available in selected states.

<PAGE>
DELAWARE(SM)
INVESTMENTS
---------------------
Philadelphia o London

For Shareholders
1.800.523.1918

For Securities Dealers
1.800.362.7500

For Financial Institutions
Representatives Only
1.800.659.2265

www.delawareinvestments.com

This semi-annual report is for the information of Delaware Social Awareness Fund
shareholders, but it may be used with prospective investors when preceded or
accompanied by a current Prospectus for Delaware Social Awareness Fund and the
Delaware Investments Performance Update for the most recently completed calendar
quarter. The prospectus sets forth details about charges, expenses, investment
objectives and operating policies of the Fund. You should read the prospectus
carefully before you invest. The figures in this report represent past results
which are not a guarantee of future results. The return and principal value of
an investment in the Fund will fluctuate so that shares, when redeemed, may be
worth more or less than their original cost.

--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
<S> <C> <C>
BOARD OF TRUSTEES Charles E. Peck Investment Manager
Retired Delaware Management Company
Wayne A. Stork Fredericksburg, VA Philadelphia, PA
Chairman
Delaware Investments Family of Funds Janet L. Yeomans International Affiliate
Philadelphia, PA Vice President and Treasurer Delaware International Advisers Ltd.
3M Corporation London, England
Walter P. Babich St. Paul, MN
Board Chairman National Distributor
Citadel Constructors, Inc. Delaware Distributors, L.P.
King of Prussia, PA AFFILIATED OFFICERS Philadelphia, PA

David K. Downes Charles E. Haldeman, Jr. Shareholder Servicing, Dividend
President and Chief Executive Officer President and Chief Executive Officer Disbursing and Transfer Agent
Delaware Investments Family of Funds Delaware Management Holdings, Inc. Delaware Service Company, Inc.
Philadelphia, PA Philadelphia, PA Philadelphia, PA

John H. Durham Richard J. Flannery 1818 Market Street
Private Investor Executive Vice President Philadelphia, PA 19103-3682
Horsham, PA and General Counsel
Delaware Investments Family of Funds
Anthony D. Knerr Philadelphia, PA
Consultant, Anthony Knerr & Associates
New York, NY Bruce D. Barton
President and Chief Executive Officer
Ann R. Leven Delaware Distributors, L.P.
Former Treasurer, National Gallery of Art Philadelphia, PA
Washington, DC

Thomas F. Madison
President and Chief Executive Officer
MLM Partners, Inc.
Minneapolis, MN

</TABLE>
(3366) Printed in the USA
SA-147 [5/00] BP 7/00 (J6061)