<PAGE>
May 8, 1996
Dear
- --------------
Shareholder:
- --------------
In the six months ended April 30, 1996, Delaware Fund Class A provided a total
return of +7.90% (capital change plus income based on net asset value) as the
stock and bond markets moved in separate directions.
During the period, your Fund, which offers a mix of equities and
fixed-income securities, achieved results that were significantly superior to
that of government and corporate bonds. Your Fund also achieved more than half
the total return of the unmanaged Standard & Poor's 500 Index, as shown to the
right.
Bond market confidence that had driven long-term interest rates down
in calendar 1995 gave way to inflation fears and higher interest rates in
February. The U.S. economy turned in results that were more robust than many
economists had anticipated.
Strong job growth following a nasty winter in many parts of the U.S.
led the stock market to generally favor companies whose profits are tied to
the fortunes of the economy over businesses with steadily growing, consistent
earnings.
Delaware Fund aims to provide a balance of current income, capital
appreciation and principal preservation, and as such is more conservative than
funds that invest solely in equities or very long-term bonds.
As we noted in our annual report, 1995's sharp and rapid price
appreciation of both stocks and bonds was unusual. We continue to believe that
investors should not expect double-digit returns without interruption year after
year, especially from bonds. Our 58 years of experience managing the Fund
through various market cycles has shown us that when stock appreciation is hard
to come by, stock dividends and the income generated by bonds take on a much
greater role in generating total return.
The equity portion of the portfolio, managed by George H. Burwell,
is invested in companies that appear to be well-positioned and have a history
of increasing dividends and strong profits. The Fund's bonds are managed by
Gary A. Reed, who focuses on high-quality government and corporate bonds. In
the pages that follow, both managers discuss how the Fund is positioned for
the coming months as well as our outlook for the stock and bond markets.
For the balance of fiscal 1996, we believe Delaware Group's namesake
Fund is well-positioned to help you participate in the income and total
return opportunities available from equities and bonds. We thank you for
choosing us.
Sincerely,
/s/ Wayne A. Stork
- ----------------------------------
Wayne A. Stork
CHAIRMAN, PRESIDENT AND CHIEF EXECUTIVE OFFICER
- --------------------------------------------------------------------------------
TOTAL RETURN
SIX MONTHS ENDED
APRIL 30, 1996
----------------
Delaware Fund Class A +7.90%
Lehman Brothers Aggregate Bond Index +0.53%
Standard & Poor's 500 Index +13.76%
Lipper Balanced Fund Average (260 funds) +8.31%
Delaware Fund performance and that of Lipper Balanced Fund Average is based
on net asset value without the effect of sales charges. Performance for all
Fund classes can be found on page 5.
- --------------------------------------------------------------------------------
1
<PAGE>
Portfolio
- -------------------
Managers' Review
- -------------------
For the past six months, your Fund achieved positive results despite rising
interest rates and a volatile stock market. As of April 30, 63.9% of your
Fund's portfolio was made up of dividend-paying stocks, 33.2% was in bonds
and the remainder in cash.
We have maintained this balanced mix because of the attractive
risk/reward profile such a mix has historically provided. While the future
can't be guaranteed, a portfolio with an approximate two-to-one ratio of
stocks to bonds has generated a total return since the 1920s that has
significantly outpaced inflation with a relatively low level of volatility,
according to Ibbotson Associates, an independent research firm.
DELAWARE FUND'S STOCK FOCUS
As of April 30, most of your Fund's stock portfolio was composed of
mid- and large-size companies found in the S&P 500 Index. While our results
were positive, your Fund's performance relative to the S&P 500 and some of
its peers was negatively affected by: higher interest rates and regulatory
issues and legal concerns affecting some holdings such as PHILIP MORRIS COS.
and RITE AID CORP. Also, smaller companies tended to win more favor with
investors than large companies during the past six months.
As we research stocks, we look for businesses that can perform
reasonably well in most economic environments. We ask whether a company
is generating excess cash and reinvesting in the business in a low-risk
manner, such as an acquisition that increases market share. We then examine
the long-term potential for dividend increases.
In our opinion, steady growth is desirable because, on balance,
investors tend to reward companies that deliver consistent results. Since the
fall of 1995, for example, the share price of one of your Fund's larger
holdings, SERVICE CORP. INTERNATIONAL, rose from a 10% discount compared to
the overall stock market to a 20% premium (as measured by the average price
of stocks, divided by earnings per share). Investors had grown more confident
about this company's expansion into the international funeral home business.
We do not expect such dramatic short-term increases in value from all our
holdings, but such positive change provides us with confidence in our stock
selection methodology.
The Fund's portfolio did not have many technology stocks, an
industry whose share prices have been especially volatile since the fall of
1995. These companies' stocks generally did not meet a fundamental requirement
of the Fund - the payment of a regular dividend and the prospect of
better-than-average dividend increases. Our investment discipline requires
us to sell a company's shares when its stock price compared to earnings is
more than 20% higher than the average price of companies that make up the S&P
500 Index.
- --------------------------------------------------------------------------------
STOCK PORTFOLIO HIGHLIGHTS
(APRIL 30, 1996)
Proportion of Net Assets 63.9%
Average Price-To-Earnings Ratio 15.4*
Median Market Capitalization $5.2 billion
TOP SECTOR - Consumer Growth
SIX-MONTH TOTAL RETURN +7.82%**
* Based on consensus of financial analysts' estimates for 1996
** Based on Class A shares at net asset value with distributions reinvested.
For complete Fund performance, see page 5.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
BOND PORTFOLIO HIGHLIGHTS
(APRIL 30, 1996)
Proportion of Net Assets 33.2%
Average Effective Duration 4.7 years
Average Maturity 8.0 years
Average Quality AA1
SIX-MONTH TOTAL RETURN +0.08%**
** Based on Class A shares at net asset value with distributions reinvested.
For complete Fund performance, see page 5.
- --------------------------------------------------------------------------------
2
<PAGE>
DELAWARE FUND'S BOND FOCUS
To maximize income potential with only a moderate increase in risk
from interest rate changes, your Fund's management decided in December 1995
to extend the average effective duration of your Fund's bond portfolio.
Duration is the most common measure of a bond's sensitivity to
changes in interest rates. It indicates the approximate percentage of change
in a bond's price given a 1% movement in interest rates. Lengthening duration
increases the chance an investment can appreciate in value when interest
rates fall as well as the possibility of principal loss when rates rise.
We increased the portfolio's average effective duration from 3.2
years to 4.7 years between October 31 and April 30. Our timing was less than
fortuitous given the sharp, temporary rise in interest rates between February
and April.
In our opinion, the long-term decline in U.S. interest rates and
inflation that has been underway since the early 1980s remains intact. We
believe that U.S. economic growth cannot be sustained at the brisk pace of
recent months. We also believe that seeking a high level of current income
from bonds can help offset any negative effects of stock market volatility on
the Fund's equity portfolio.
Our long-term goal is to approximate the duration of the Lehman
Brothers Aggregate Bond Index, a broad and unmanaged benchmark of
intermediate- and long-term government, corporate and mortgage securities.
Prior to December 31, we kept the duration in line with the Lehman Brothers
Intermediate Government Corporate Bond Index, which generally has a somewhat
shorter duration.
During the six months ended April 30, your Fund's bond holdings
consisted primarily of mortgage-related securities issued by government
agencies such as the Federal National Mortgage Association and very
high-quality bonds issued by corporations.
We had a greater percentage of mortgage-related securities and
corporate bonds than the Lehman Aggregate Index because they provided
opportunities for higher income than U.S. Treasury securities.
Your Fund has also benefited from its focus on mortgage-related
securities and corporate bonds during fiscal 1996 because their prices have
not fallen as much as Treasuries. We favor high-quality, AA-rated bonds of
companies whose earnings are not dependent on strong economic growth. Our
holdings as of April 30 included the bonds of WENDY'S INTERNATIONAL, the
fast-food chain, and PEP BOYS, the auto parts and service retailer.
OUTLOOK
We believe companies that have demonstrated a consistent and
higher-than-average level of earnings growth year after year will perform
well in the months ahead. In the past, when U.S. economic growth slowed,
these companies - especially consumer growth businesses - have tended to
outshine companies whose sales and profits are dependent on the overall
fortunes of the U.S. economy - companies such as steel, paper and auto makers.
Our interest rate outlook also leads us to conclude that the
high-quality bonds in your Fund's portfolio have the potential to perform
relatively well. Still, we will continue to position the bond component of
your Fund to focus on high income without taking undue risks.
/s/ George H. Burwell
- -------------------------------------------
George H. Burwell
VICE PRESIDENT AND SENIOR PORTFOLIO MANAGER
STOCKS
/s/ Gary A. Reed
- -------------------------------------------
Gary A. Reed
VICE PRESIDENT AND SENIOR PORTIFOLIO MANAGER
FIXED-INCOME
MAY 8, 1996
3
<PAGE>
A Lifetime
- -----------------
of Performance
- -----------------
For a person who turned 18 on April 25, 1938, when Delaware Fund was
founded, $1,000 could have bought a new car or paid more than a year's
college tuition. Had this 18-year-old invested $1,000 in the Fund and
received dividends in cash every year during his or her lifetime, he or she
would have celebrated his or her 76th birthday in April 1996 with an
investment worth $54,874 (with capital gains reinvested for Class A shares)
and collected $27,458 in dividends over the years.
Our point in showing you this illustration is to show the potential
rewards of patient, long-term investing and the importance of investing early
in life. The effect of reinvesting dividends makes the results even more
dramatic.
* If this same 18-year-old had reinvested all dividends and capital gains,
the investment would have grown to $438,116 between 1938 and April 30,
1996.
* Many people reinvest capital gains and dividends during their working
lives, but then choose to receive dividends in cash upon retirement, while
continuing to reinvest capital gains.
If our hypothetical Delaware Fund investor did this, he or she would have
had a portfolio worth more than $112,000 upon turning 65 in April 1985, and a
portfolio worth $274,913 as of April 30, 1996. He or she would have also
received more than $9,000 in cash dividends during the 12 months ended in
April - all from a $1,000 investment as a teenager.
<TABLE>
<CAPTION>
===========================================================================================
HOW $1,000 INVESTED IN DELAWARE FUND
WOULD HAVE GROWN OVER A LIFETIME
CUMULATIVE
DIVIDENDS PAID IN
ACCOUNT VALUE CASH AS OF
$1,000 INVESTMENT ON APRIL 25, 1938 ON APRIL 30, 1996 APRIL 30, 1996
<S> <C> <C>
Dividends in cash; capital gains reinvested $54,874 $27,458
- --------------------------------------------------------------------------------------------
All dividends and capital gains reinvested $438,116 none
- --------------------------------------------------------------------------------------------
Dividends & capital gains reinvested until age 65; $274,913 $76,103
dividends then taken in cash, all capital gains
continually reinvested
- --------------------------------------------------------------------------------------------
For Class A shares, includes a 4.75% sales charges. Past performance does not
guarantee future results.
For complete performance and sales charges for all classes, see the next
page.
============================================================================================
</TABLE>
4
<PAGE>
AN INVESTMENT OF $1,000 IN DELAWARE FUND CLASS A MADE ON APRIL 25, 1938,
WOULD HAVE GROWN TO $54,874 AS APRIL 30, 1996, IF CAPITAL GAINS WERE
REINVESTED AND DIVIDENDS PAID IN CASH. IF DIVIDENDS AND CAPITAL GAINS WERE
CONTINUOUSLY REINVESTED, AN INVESTOR WOULD HAVE A PORTFOLIO WORTH $438,116.
Delaware Fund Class A Lifetime Performance
(Total Return through April 30, 1996)
$1,000 Investment
With Reinvestment Without Reinvestment
of Capital Gains of Capital Gains
and Dividends and Dividends
5/38 $ 952 $ 952
4/39 950 949
4/40 1175 1165
4/41 1108 1070
4/42 1020 931
4/43 1524 1318
4/44 1619 1332
4/45 2094 1705
4/46 2813 2257
4/47 2167 1710
4/48 2362 1805
4/49 2180 1602
4/50 2727 1934
4/51 3420 2319
4/52 3523 2292
4/53 3885 2432
4/54 4480 2678
4/55 6047 3497
4/56 6978 3906
4/57 7228 3915
4/58 7057 3683
4/59 9912 5020
4/60 8829 4404
4/61 11365 5510
4/62 10913 5180
4/63 11489 5320
4/64 13217 5982
4/65 16228 7211
4/66 22420 9797
4/67 24415 10444
4/68 26738 11268
4/69 28582 11770
4/70 22346 8937
4/71 31083 11889
4/72 33157 12328
4/73 26210 9492
4/74 23646 8229
4/75 24848 8200
4/76 32028 10106
4/77 35604 10799
4/78 37861 10953
4/79 40439 11136
4/80 43588 11434
4/81 63450 15871
4/82 65656 15342
4/83 105875 23042
4/84 94223 19664
4/85 112253 22406
4/86 159781 30850
4/87 182353 34409
4/88 155724 28814
4/89 191441 33697
4/90 210819 35366
4/91 238654 38052
4/92 270952 41605
4/93 304869 45197
4/94 321592 46192
4/95 344364 47747
4/96 438116 54874
<PAGE>
Performance of other classes of Delaware Fund will vary due to differing charges
and expenses. Past performance is not a guarantee of future results.
DELAWARE FUND PERFORMANCE
AVERAGE ANNUAL RETURN THROUGH APRIL 30, 1996
<TABLE>
<CAPTION>
LIFETIME 10 YEARS FIVE YEARS ONE YEAR
<S> <C> <C> <C> <C> <C>
Class A (Est. 1938) +11.05% +9.32% +10.30% +13.09%
- ------------------------------------------------------------------------------------------------------
Class B (Est. 1994)
Excluding Sales Charge +13.14% - - +17.76%
Including Sales Charge +10.89% - - +13.76%
- ------------------------------------------------------------------------------------------------------
Class C* (Est. 1995)
Excluding Sales Charge +4.62% - - -
Including Sales Charge +3.64% - - -
</TABLE>
*aggregate return through April 30, 1996
DELAWARE FUND'S RETURN AND SHARE VALUE FLUCTUATE SO THAT SHARES, WHEN
REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. PAST
PERFORMANCE IS NOT A GUARANTEE OF FUTURE RESULTS. RETURNS REFLECT REINVESTMENT
OF ANY DISTRIBUTIONS AND ANY APPLICABLE SALES CHARGES AS NOTED BELOW. B AND C
CLASS RESULTS "EXCLUDING SALES CHARGE" ASSUME INVESTMENT WAS NOT REDEEMED.
Class A returns reflect the effect of the current 4.75% maximum front-end
sales charge and a 12b-1 fee after June 1, 1992; sales charges have varied
during the life of the Fund.
Class B shares do not carry a front-end sales charge, but are subject to a 1%
annual distribution and service fee. They are subject to a contingent deferred
sales charge which varies from 1% to 4%, depending upon the holding period, if
redeemed before the end of the sixth year. Class B was initially offered on
September 6, 1994. Class B's six-month total return was +7.49% with dividends
and capital gains reinvested (based on net asset value).
Class C shares were initially offered on November 29, 1995. They have a 1%
annual distribution and service fee and a 1% contingent deferred sales charge
if redeemed within 12 months of purchase. Cumulative performance for the
five-month period may not be indicative of future performance.
The average annual total returns for Delaware Fund's Institutional Class,
which is available without sales or asset-based distribution charges only
to certain eligible institutional accounts, were +9.92%, +11.50% and +18.99%
respectively, for the 10-year, five-year and one-year periods ended
April 30, 1996. The aggregate return for the six-month period ended
April 30, 1996, was +7.97%. The Institutional Class was initially made
available on November 9, 1992. Performance for the Institutional Class for
periods prior to this date are based on Class A performance, adjusted to
eliminate the sales charge, but not the asset-based distribution charge.
5
<PAGE>
Financial
- ------------
Statements
- ------------
DELAWARE GROUP DELAWARE FUND
STATEMENT OF NET ASSETS
APRIL 30, 1996
(UNAUDITED)
Number Market
Top 10 stock holdings are in boldface. of Shares Value
COMMON STOCK - 63.41%
Aerospace & Defense - 2.15%
GenCorp .......................................... 300,000 $ 4,012,500
Lockheed Martin .................................. 111,100 8,957,438
-----------
12,969,938
-----------
Automobiles & Automotive Parts - 1.48%
Danaher .......................................... 226,000 8,898,750
-----------
8,898,750
-----------
Banking, Finance & Insurance - 7.73%
Bank of New York ................................. 87,200 4,229,200
CHUBB ............................................ 166,200 15,726,675
MBNA ............................................. 167,550 4,754,231
State Street Boston .............................. 171,000 8,528,625
United Healthcare ................................ 129,200 7,558,200
U.S. HealthCare .................................. 110,000 5,740,625
-----------
46,537,556
-----------
Buildings & Materials - 1.13%
Foster Wheeler ................................... 147,500 6,821,875
-----------
6,821,875
-----------
Cable, Media & Publishing - 4.06%
American Greetings Class A ....................... 274,600 7,602,988
Banta ............................................ 270,000 6,682,500
REYNOLDS & REYNOLDS CLASS A ...................... 219,300 10,142,625
-----------
24,428,113
-----------
Chemicals - 2.08%
LOCITE .......................................... 210,000 10,605,000
RPM .............................................. 125,500 1,929,563
-----------
12,534,563
-----------
Consumer Products - 1.48%
Procter & Gamble ................................. 105,400 8,906,300
-----------
8,906,300
-----------
Electronics & Electrical - 2.44%
General Electric ................................. 115,200 8,928,000
Teleflex ......................................... 124,300 5,764,413
-----------
14,692,413
-----------
6
<PAGE>
Number Market
of Shares Value
COMMON STOCK (Continued)
Energy - 4.79%
Imperial Oil Limited ........................... 106,000 $ 4,293,000
Kerr-McGee ..................................... 165,000 10,539,375
Royal Dutch Petroleum .......................... 62,600 8,967,450
TOTAL Class B ADR .............................. 147,223 5,042,388
-----------
28,842,213
-----------
Farming & Agriculture - 2.82%
CONAGRA ........................................ 439,000 16,956,375
-----------
16,956,375
-----------
Food, Beverage & Tobacco - 5.94%
Campbell Soup .................................. 133,000 8,312,500
PHILIP MORRIS .................................. 261,500 23,567,688
RJR Nabisco Holdings ........................... 128,520 3,839,535
-----------
35,719,723
-----------
Healthcare & Pharmaceuticals - 7.96%
COLUMBIA/HCA HEALTHCARE ........................ 305,000 16,203,125
Pharmacia & Upjohn ............................. 111,000 4,245,750
Schering-Plough ................................ 124,500 7,143,188
SMITHKLINE BEECHAM ADR ......................... 295,200 15,940,800
Warner-Lambert ................................. 39,000 4,358,250
-----------
47,891,113
-----------
Leisure, Lodging & Entertainment - 0.44%
Sbarro ......................................... 100,000 2,625,000
-----------
2,625,000
-----------
Real Estate - 4.03%
Associated Estates Realty ...................... 122,400 2,463,300
Developers Diversified Realty .................. 205,500 5,985,188
Health Care Property Investors ................. 167,000 5,260,500
Nationwide Health Properties ................... 229,800 4,567,275
Storage Trust Realty ........................... 45,200 988,750
Storage USA .................................... 54,000 1,788,750
Sun Communities ................................ 121,700 3,179,413
-----------
24,233,176
-----------
Retail - 3.15%
May Department Stores .......................... 104,200 5,314,200
RITE AID ....................................... 460,400 13,639,350
-----------
18,953,550
-----------
Telecommunications - 1.33%
ALLTEL ......................................... 242,700 7,978,763
-----------
7,978,763
-----------
Utilities - 3.89%
CMS Energy ..................................... 305,000 8,883,125
DTE Energy ..................................... 128,200 3,974,200
Edison International ........................... 280,000 4,480,000
Illinova ....................................... 239,000 6,094,500
-----------
23,431,825
-----------
<PAGE>
Statement of Net Assets (Continued)
Number Market
of Shares Value
COMMON STOCK (Continued)
Miscellaneous - 6.51%
SERVICE INTERNATIONAL ........................ 241,700 $12,840,313
Tompkins plc ADR ............................. 270,000 4,590,000
TYCO INTERNATIONAL ........................... 562,400 21,722,700
-----------
39,153,013
-----------
Total Common Stock
(cost $316,530,601) ......................... 381,574,259
-----------
CONVERTIBLE PREFERRED STOCK - 0.49%
Freeport-McMoRan Copper & Gold
5.00% pfd cv ................................. 103,400 2,933,975
-----------
Total Convertible Preferred Stock
(cost $2,299,511) ........................... 2,933,975
-----------
Principal
Amount
CORPORATE BONDS -10.46%
BankAmerica 6.20% 02/15/06 ......... $ 3,825,000 3,538,125
Cardinal Health 6.00% 01/15/06 ..... 3,750,000 3,440,625
Celulosa Arauco 7.25% 06/11/98 ..... 1,750,000 1,754,375
Columbia/HCA Healthcare
7.50% 12/15/23 .................... 3,000,000 2,887,500
8.70% 02/10/10 .................... 3,050,000 3,339,750
Ford Motor Credit Global
6.25% 11/08/00 .................... 4,015,000 3,929,681
HF Ahmanson & Company
6.35% 09/01/98 .................... 3,735,000 3,725,663
IBM 7.50% 06/15/13 ................ 3,450,000 3,471,563
ITT 6.25% 11/15/00 ................. 2,020,000 1,969,500
Kohls 6.70% 02/01/06 .............. 2,900,000 2,729,625
May Department Stores
7.50% 06/01/15 .................... 4,000,000 3,895,000
NCNB 10.20% 07/15/15 .............. 2,925,000 3,627,000
*Nationwide Mutual Insurance
9.875% 02/15/25 ................... 2,000,000 2,175,000
News America Holdings
9.125% 10/15/99 ................... 2,785,000 2,962,544
Pep Boys 7.00% 06/01/05 ........... 3,940,000 3,841,500
RJR Nabisco 8.30% 04/15/99 ......... 1,000,000 1,041,250
Santander Financial Issuances
6.80% 07/15/05 .................... 3,000,000 2,883,750
Southwest Air 7.875 % 09/01/07 ..... 2,750,000 2,822,188
Thailand Kingdom Medium-Term Note
7.07% 09/30/13 .................... 2,655,000 2,432,644
Ultramar Credit 8.625% 07/01/02 .... 1,265,000 1,351,969
VF Corp 9.50% 05/01/01 ............ 2,175,000 2,403,375
Wendy's International 6.35% 12/15/05 2,930,000 2,746,875
----------
Total Corporate Bonds
(cost $64,335,507) ................ 62,969,502
----------
7
<PAGE>
Principal Market
Amount Value
ASSET-BACKED SECURITIES - 5.71%
ADVANTA Series 93-1A2
5.95% 05/25/09 ................................ $ 1,228,160 $ 1,175,472
American Finance Home Equity
Series 94-2 A1 6.95% 06/25/24 .................. 2,245,476 2,239,133
Series 94-5 A 7.20% 02/15/08 ................... 608,685 607,118
Series 92-1 A 7.50% 03/15/07 ................... 732,544 736,444
Series 91-1 A 8.00% 07/25/06 ................... 557,616 565,116
Case Equipment Loan Trust
Series 95-B A3 6.15% 09/15/02 .................. 4,440,000 4,416,579
Dayton Hudson Credit Card Master Trust
Series 95-1A 6.10% 02/25/02 .................... 3,525,000 3,504,203
First Bank Auto Receivables Grantor Trust
Series 95-B A 6.40% 07/17/00 ................... 3,727,225 3,737,446
NationsCredit Grantor Trust
Series 96-1A 5.85% 09/15/11 .................... 2,335,936 2,281,918
Neiman Marcus Group Credit Card Master Trust
Series 95-1 A 7.60% 06/15/03 ................... 960,000 986,647
Nomura Asset Securities
Series 95-2 2A2 6.25% 01/25/26 ................. 1,500,000 1,476,375
Olympic Automobile Receivables Trust
Series 95-B A2 7.35% 10/15/01 .................. 3,289,316 3,332,406
Premier Auto Trust
Series 93-3 A3 4.90% 12/15/98 .................. 2,277,912 2,259,728
Standard Credit Card Master Trust
Series 94-2 A 7.25% 04/07/08 ................... 2,740,000 2,738,586
World Omni Automobile Lease Securitization Trust
Series 95-A 6.05% 11/25/01 ..................... 2,200,000 2,187,350
Series 94-BA 7.95% 01/25/01 .................... 2,065,252 2,102,875
----------
Total Asset-Backed Securities
(cost $34,471,557) ............................ 34,347,396
----------
COLLATERALIZED MORTGAGE OBLIGATIONS - 3.16%
Asset Securitization Corporation
Series 96-D2 A1 6.92% 02/14/29 ................. 3,156,227 3,061,047
Series 95-MD4 A1 7.10% 08/13/29 ................ 3,527,636 3,472,516
Federal Home Loan Mortgage Corporation
Series 1666-E 6.00% 12/15/19 ................... 3,880,000 3,702,492
Nomura Asset Securities
Series 96-MD5 A3 7.637% 04/13/36 ............... 3,300,000 3,279,891
Resolution Trust Corporation
Series 95-C1 A2B 6.55% 02/25/27 ................ 3,900,000 3,893,297
Travelers Mortgage Securities Corporation
Series 1-Z2 12.00% 03/01/14 .................... 1,386,265 1,577,743
----------
Total Collateralized Mortgage Obligations
(cost $19,217,953) ............................ 18,986,986
----------
<PAGE>
Statement of Net Assets (Continued)
Principal Market
Amount Value
MORTGAGE-BACKED SECURITIES - 10.79%
Federal Home Loan Mortgage Corporation
6.00% 02/01/01 ............................ $ 1,296,861 $ 1,255,119
Federal Home Loan Mortgage Corporation
8.50% 09/01/08 to 06/01/14 ................. 2,578,492 2,680,343
Federal National Mortgage Association
5.50% 03/01/11 ............................ 12,286,614 11,426,551
Federal National Mortgage Association
6.00% 04/01/11 ............................ 1,887,000 1,787,933
Federal National Mortgage Association
6.50% 02/01/24 to 02/01/26 ................. 10,506,037 9,867,809
Federal National Mortgage Association
7.00% 07/01/17 ............................ 2,557,876 2,493,130
Federal National Mortgage Association
8.00% 12/01/09 to 09/01/16 ................. 4,633,277 4,739,855
Federal National Mortgage Association
8.50% 11/01/09 ............................. 2,162,312 2,238,669
Federal National Mortgage Association
9.50% 02/01/17 to 02/01/25 ................. 7,521,738 8,067,221
Government National Mortgage Association
6.50% 02/15/24 ............................ 3,394,005 3,181,879
Government National Mortgage Association
7.50% 02/15/23 to 05/15/23 ................. 4,422,597 4,372,884
Government National Mortgage Association
9.00% 01/15/20 to 11/15/21 ................. 11,653,048 12,367,832
Government National Mortgage Association
10.00% 11/15/16 to 05/15/19 ................ 340,045 376,389
Government National Mortgage Association
12.50% 12/15/10 ........................... 47,415 54,912
----------
Total Mortgage-Backed Securities
(cost $65,622,728) ........................ 64,910,526
----------
U.S. TREASURY OBLIGATIONS - 3.08%
U.S. Treasury Notes 5.875% 03/31/99 ........ 2,400,000 2,379,936
U.S. Treasury Bond 6.25% 08/15/23 .......... 9,900,000 8,933,859
U.S. Treasury Notes 6.375% 01/15/00 ........ 5,850,000 5,859,769
U.S. Treasury Notes 6.375% 08/15/02 ........ 1,400,000 1,388,772
----------
Total U.S. Treasury Obligations
(cost $19,119,610) ....................... 18,562,336
----------
REPURCHASE AGREEMENTS - 2.73%
With Chase Manhattan 5.30% 5/1/96
(dated 4/30/96, collateralized by $5,409,000
U.S. Treasury Notes 6.125% due 5/31/97,
market value $5,566,186) ................. 5,453,000 5,453,000
8
<PAGE>
Principal Market
Amount Value
With J.P. Morgan Securities 5.30% 5/1/96
(dated 4/30/96, collateralized by $5,246,000
U.S. Treasury Notes 6.125% due 9/30/00,
market value $5,226,834 and $374,000 U.S.
Treasury Notes 5.75% due 10/31/00,
market value $365,021). . . $ 5,481,000 $5,481,000
With PaineWebber 5.32% 5/1/96
(dated 4/30/96, collateralized by
$5,610,000 U.S. Treasury Notes
6.25% due 4/30/01, market
value $5,591,720). . . . . . . . 5,481,000 5,481,000
------------
Total Repurchase Agreements
(cost $16,415,000). . . . . . . 16,415,000
------------
TOTAL MARKET VALUE OF SECURITIES
OWNED - 99.83%
(cost $538,012,467). . . . . . . . . . . . . . . . . 600,699,980
RECEIVABLES AND OTHER ASSETS
NET OF LIABILITIES - 0.17%. . . . . . . . . . 1,019,147
------------
NET ASSETS APPLICABLE TO 30,007,991 SHARES
OUTSTANDING - 100.00% ($1 PARVALUE). $601,719,127
============
NET ASSET VALUE - DELAWARE FUND A CLASS
($479,308,170 /23,907,406 SHARES). . . $20.05
======
NET ASSET VALUE - DELAWARE FUND B CLASS
($4,652,518/232,430 SHARES). . . . . . . . . $20.02
======
NET ASSET VALUE - DELAWARE FUND C CLASS
($1,031,703/ 51,577 SHARES). . . . . . . . . $20.00
======
NET ASSET VALUE - DELAWARE FUND INSTITUTIONAL
CLASS ($116,726,736/5,816,578 SHARES) $20.07
======
- ----------
* Security exempt from registration under Rule 144A of the Securites Act of
1933. These securities may be resold in transactions exempt from registration,
normally to qualified institutional buyers.
Components of Net Assets at April 30, 1996:
Common stock, $1 par value, 200,000,000
shares authorized to the Delaware Fund $503,819,803
Accumulated undistributed income:
Net investment income. . . . . . . . . . . . . . . 3,099,418
Net realized gain on investments. . . . 32,112,393
Net unrealized appreciation of investments 62,687,513
------------
Total net assets. . . . . . . . . . . . . . . . . . . $601,719,127
============
See accompanying notes
<PAGE>
Delaware Group Delaware Fund
Statement of Operations
Six Months Ended April 30, 1996
(Unaudited)
INVESTMENT INCOME:
Interest. . . . . . . . . . . . . . . . . $8,137,658
Dividends. . . . . . . . . . . . . . . . 5,171,763 $13,309,421
----------
EXPENSES:
Management fees ($1,597,317) and
directors' fees ($5,606). 1,602,923
Dividend disbursing and transfer agent
fees and expenses. . . . . . . . 555,520
Distribution expenses. . . . 486,526
Salaries. . . . . . . . . . . . . . . . . 75,491
Reports to shareholders. . 47,514
Federal and state registration fees 32,385
Professional fees. . . . . . . . 27,862
Taxes, other than taxes on income 24,100
Custodian fees. . . . . . . . . . . 10,729
Other. . . . . . . . . . . . . . . . . . . . 55,264 2,918,314
-------- ---------
NET INVESTMENT INCOME. . . . 10,391,107
----------
NET REALIZED AND UNREALIZED
GAIN ON INVESTMENTS:
Net realized gain from
security transactions. . . 32,547,770
Net unrealized appreciation of investments
during the period. . . . . . . . 4,121,452
----------
NET REALIZED AND UNREALIZED
GAIN ON INVESTMENTS. . . . . . 36,669,222
----------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS $47,060,329
===========
See accompanying notes
9
<PAGE>
Delaware Group Delaware Fund
Statements of Changes in Net Assets
Six Months Ended Year Ended
4/30/96 10/31/95
(Unaudited)
OPERATIONS:
Net investment income. . $ 10,391,107 $ 20,370,834
Net realized gain from
security transactions. . 32,547,770 33,206,692
Net appreciation during the period 4,121,452 33,674,467
---------- ----------
Net increase in net assets
resulting from operations 47,060,329 87,251,993
---------- ----------
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income:
Delaware Fund A Class. . (8,677,794) (15,844,023)
Delaware Fund B Class. . (53,815) (47,613)
Delaware Fund C Class. . (4,815) -
Delaware Fund Institutional Class (2,248,310) (3,528,785)
Net realized gain from security transactions:
Delaware Fund A Class. . (26,400,790) (6,294,837)
Delaware Fund B Class. . (191,178) (11,657)
Delaware Fund C Class. . (270) -
Delaware Fund Institutional Class (6,170,061) (1,332,622)
---------- ----------
(43,747,033) (27,059,537)
---------- ----------
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold:
Delaware Fund A Class. . 13,108,680 28,758,712
Delaware Fund B Class. . 1,716,384 2,646,689
Delaware Fund C Class. . 1,065,726 -
Delaware Fund Institutional Class 19,874,741 24,654,943
Net asset value of shares issued upon
reinvestment of dividends from net
investment income and net realized
gain on security transactions:
Delaware Fund A Class. . 27,474,833 16,717,134
Delaware Fund B Class. . 239,267 57,857
Delaware Fund C Class. . 4,952 -
Delaware Fund Institutional Class 8,408,309 4,844,558
---------- ----------
71,892,892 77,679,893
---------- ----------
Cost of shares repurchased:
Delaware Fund A Class. . (57,446,136) (57,791,089)
Delaware Fund B Class. . (695,668) (115,464)
Delaware Fund C Class. . (30,395) -
Delaware Fund Institutional Class (20,687,677) (25,224,771)
---------- ----------
(78,859,876) (83,131,324)
---------- ----------
Decrease in net assets derived
from capital share transactions (6,966,984) (5,451,431)
---------- ----------
NET INCREASE (DECREASE)
IN NET ASSETS. . . . . . . . . . (3,653,688) 54,741,025
NET ASSETS:
Beginning of period. . . . 605,372,815 550,631,790
------------ ------------
End of period (including undistributed net
investment income of $3,099,418 and
$3,693,045 respectively) $601,719,127 $605,372,815
============ ============
See accompanying notes
<PAGE>
Delaware Group Delaware Fund
Notes to Financial Statements
April 30, 1996
(Unaudited)
Delaware Group Delaware Fund, Inc. (the "Company") is registered as a
diversified open-end investment company under the Investment Company Act of
1940, as amended. The Company currently offers two Series, Delaware Fund (the
"Fund") and Devon Fund. The Company is organized as a Maryland
corporation. The Fund offers four classes of shares.
The investment objective of the Fund is to seek a balance of capital
appreciation, income and preservation of capital.
1. Significant Accounting Policies
The following accounting policies are in accordance with generally accepted
accounting principles and are consistently followed by the Fund:
Security Valuation - Securities listed on an exchange are valued at the last
quoted sales price as of 4:00 pm 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 when 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.
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 is required in the financial
statements.
Repurchase Agreements - The 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 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.
Class Accounting - Investment income, common expenses, and 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.
10
<PAGE>
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.
Certain fund expenses are paid directly by brokers. The amount of these
expenses was less than 0.01% of the Fund's average net assets.
2. Investment Management and Distribution Agreements
In accordance with the terms of the Investment Management Agreement, the Fund
pays Delaware Management Company, Inc. (DMC), the Investment Manager of the
Fund, a fee which is calculated daily at the annual rate of 0.60% on the first
$100 million of average daily net assets of the Fund, 0.525% on the next $150
million, 0.50% on the next $250 million and 0.475% on the average daily net
assets over $500 million, less fees paid to the independent directors. At April
30, 1996, the Fund had a liability for Investment Management fees and other
expenses payable to DMC for $258,696.
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 the A Class and 1.00% of the
average daily net assets of the B Class and C Class. No distribution expenses
are paid by the Institutional Class. At April 30, 1996, the Fund had a
liability for distribution fees and other expenses payable to DDLP for
$15,704. For the six months ended April 30, 1996, the Fund paid DDLP $34,351
for commissions earned on sales of Delaware Fund A Class shares.
The Fund has engaged Delaware Service Company Inc. (DSC), an affiliate of
DMC, to serve as dividend disbursing and transfer agent for the Fund. For the
six months ended April 30, 1996, the Fund has expensed $555,520 for these
services. At April 30, 1996, the Fund had a liability for such fees and other
expenses payable to DSC for $19,373.
Certain officers of DMC are officers, directors, and/or employees of the
Fund. These officers, directors, and employees are paid no compensation by
the Fund.
<PAGE>
Statement of Net Assets (Continued)
3. Investments
During the six months ended April 30, 1996, the Fund made purchases of
$221,600,838 and sales of $238,612,248 of investment securities other than
U.S. government securities and temporary cash investments.
At April 30, 1996, unrealized appreciation for federal income tax purposes
aggregated $62,480,945 of which $70,214,363 related to unrealized
appreciation of securities and $7,733,418 related to unrealized depreciation
of securities.
The realized gain for federal income tax purposes was $32,718,307 for the six
months ended April 30, 1996.
On April 30, 1996, the Fund had a receivable for investment securities sold
of $25,114 and a payable for investment securities purchased of $925,889.
4. Capital Stock
Transactions in captial stock shares were as follows:
Six Months Year
Ended Ended
4/30/96 10/31/95
---------- ---------
Shares sold:
Delaware Fund A Class ...................... 653,165 1,589,185
Delaware Fund B Class ...................... 85,204 141,318
Delaware Fund C Class ...................... 52,855 --
Delaware Fund Institutional Class .......... 974,533 1,324,391
Shares issued upon reinvestment of dividends
from net investment income and net realized
gain on security transactions:
Delaware Fund A Class ...................... 1,389,773 925,046
Delaware Fund B Class ...................... 12,108 3,127
Delaware Fund C Class ...................... 249 --
Delaware Fund Institutional Class .......... 425,272 268,511
--------- ---------
3,593,159 4,251,578
--------- ---------
Shares repurchased:
Delaware Fund A Class ...................... (2,866,378) (3,123,004)
Delaware Fund B Class ...................... (34,919) (5,983)
Delaware Fund C Class ...................... (1,527) --
Delaware Fund Institutional Class .......... (1,027,177) (1,363,009)
--------- ---------
(3,930,001) (4,491,996)
--------- ---------
Net decrease ............................... (336,842) (240,418)
========= =========
11
<PAGE>
5. Securities Lending
The market value of securities on loan to broker/dealers at April 30, 1996,
was $47,805,329 for which the Fund received cash collateral of $49,018,044.
6. Lines of Credit
The Fund has a committed line of credit for $10,000,000. No amount was
outstanding at April 30, 1996, or at any time during the last fiscal period.
7. Concentration of Credit Risk
The Fund invests in securities whose value is derived from an underlying pool
of mortgages or consumer loans. Prepayment of these loans may shorten the
stated maturity of the respective obligation and may result in a loss of
premium, if any has been paid.
The Fund may invest up to 10% of its total assets in illiquid securities
which include securities with contractual restrictions on resale, securities
exempt from registration under Rule 144A of the Securities Act of 1933, as
amended, and other securities which may not be readily marketable. The
relative illiquidity of some of these securities may adversely affect the
Fund's ability to dispose of such securities in a timely manner and at a fair
price when it is necessary to liquidate such securities. These securities
have been denoted in the Statement of Net Assets.
<PAGE>
Notes to Financial Statements (Continued)
8. Financial Highlights
Selected data for each share of the Fund outstanding throughout each period
were as follows:
<TABLE>
<CAPTION>
Delaware Fund A Class
-----------------------------------------------------------
Six Months
Ended Year Ended October 31,
4/30/96(1) 1995 1994 1993 1992 1991
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period. . . . . . . . . $19.940 $18.000 $19.430 $18.720 $18.810 $16.190
Income from investment operations:
Net investment income(2) . . . . . . . . . . . . . . . 0.337 0.664 0.615 0.631 0.660 0.757
Net realized and unrealized gain (loss)
from security transactions 1.208 2.156 (0.285) 1.509 1.490 3.033
------ ------ ----- ------ ------ ------
Total from investment operations. . . . . . . . . . . . 1.545 2.820 0.330 2.140 2.150 3.790
------ ------ ----- ------ ------ ------
Less distributions:
Dividends from net investment income. . . . . . . . . .(0.355) (0.630) (0.600) (0.660) (0.700) (0.880)
Distributions from net realized gain on
security transactions (1.080) (0.250) (1.160) (0.770) (1.540) (0.290)
------ ------ ----- ------ ------ ------
Total distributions. . . . . . . . . . . . . . . . . . (1.435) (0.880) (1.760) (1.430) (2.240) (1.170)
------ ------ ----- ------ ------ ------
Net asset value, end of period. . . . . . . . . . . . .$20.050 $19.940 $18.000 $19.430 $18.720 $18.810
======= ======= ======= ======= ======= =======
Total return(3). . . . . . . . . . . . . . . . . . . . ..7.90% 16.26% 1.80% 11.91% 12.37% 24.32%
Ratios/supplemental data:
Net assets, end of period (000 omitted). . . . . . ..$479,308 $493,243 $456,074 $507,528 $487,343 $453,449
Ratio of expenses to average net assets. . . . . . . 0.98% 0.97% 0.97% 0.89% 0.79%(4) 0.71%
Ratio of net investment income to average
net assets 3.34% 3.55% 3.31% 3.27% 3.64% 4.29%
Portfolio turnover. . . . . . . . . . . . . . . . . . 102% 94% 142% 160% 144% 212%
</TABLE>
- --------------------
1 Ratios have been annualized and total return has not been annualized.
2 Per share information for the six months ended April 30, 1996, was based on
the average shares outstanding method.
3 Does not include maximum sales charge that is or was in effect nor the 1%
limited contingent deferred sales charge that would apply in the event of
certain redemptions within 12 months of purchase.
4 Includes 12b-1 distribution expenses effective June 1, 1992.
12
<PAGE>
Notes to Financial Statements (Continued)
8. Financial Highlights
Selected data for each share of the Fund outstanding throughout each period
were as follows:
<TABLE>
<CAPTION>
Delaware
Delaware Fund Fund Delaware Fund
B Class C Class Institutional Class
-------------------------------------------------------------------------------------------
Six Months Year 9/6/94(3) 11/29/95(2) Six Months Year Year 11/09/92(3)
Ended Ended to to Ended Ended Ended to
4/30/96(1) 10/31/95 10/31/94 4/30/96 4/30/96(1) 10/31/95 10/31/94 10/31/93
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $19.900 $17.980 $18.340 $20.500 $19.980 $18.030 $19.460 $18.820
Income (loss) from investment operations:
Net investment income(4). . . 0.256 0.567 0.070 0.219 0.356 0.694 0.653 0.632
Net realized and unrealized gain (loss)
from security transactions 1.199 2.113 (0.280) 0.701 1.204 2.166 (0.293) 1.438
------ ------ ------- ------- ------ ------ ----- ------
Total from investment operations 1.455 2.680 (0.210) 0.920 1.560 2.860 0.360 2.070
------ ------ ------- ------- ------ ------ ----- ------
Less distributions:
Dividends from net investment income (0.255) (0.510) (0.150) (0.340) (0.390) (0.660) (0.630) (0.660)
Distribution from net realized gain
on security transactions. (1.080) (0.250) none (1.080) (1.080) (0.250) (1.160) (0.770)
------ ------ ------- ------- ------ ------ ------ ------
Total distributions. . . . . . (1.335) (0.760) (0.150) (1.420) (1.470) (0.910) (1.790) (1.430)
------ ------ ------- ------- ------ ------ ------ ------
Net asset value, end of period $20.020 $19.900 $17.980 $20.000 $20.070 $19.980 $18.030 $19.460
======= ======= ======= ======= ======= ======= ======= =======
Total return(5). . . . . . . . . . . . 7.49% 15.36% (1.14)% 4.62% 7.97% 16.50% 1.96% 11.76%
Ratios/supplemental data:
Net assets, end of period
(000 omitted) $4,652 $3,383 $568 $1,032 $116,727 $108,747 $93,990 $72,052
Ratio of expenses to average
net assets 1.79% 1.79% 1.81% 1.79% 0.79% 0.79% 0.81% 0.77%
Ratio of net investment income
to average net assets. . . . 2.53% 2.73% 2.47% 2.53% 3.53% 3.73% 3.47% 3.39%
Portfolio turnover. . . . . . . 102% 94% 142% 102% 102% 94% 142% 160%
</TABLE>
- ------------------
1 Ratios have been annualized and total return has not been annualized.
2 Date of initial public offering; ratios have been annualized and total
return has not been annualized.
3 Date of initial public offering; ratios and total return have
been annualized.
4 Per share information for the six months ended April 30, 1996, was based
on the average shares outstanding method.
5 Does not include continent deferred sales charge which varies from 1%-4%
for Delaware Fund B Class and 1% for Delaware Fund C Class depending upon
the holding period.
13
<PAGE>
This semi-annual report is for the information of Delaware Fund shareholders,
but it may be used with prospective investors when preceded or accompanied by
a current PROSPECTUS, which sets forth details about charges, expenses,
investment objectives and operating policies of the Fund. Summary investment
results are documented in the Fund's current STATEMENT OF ADDITIONAL
INFORMATION. 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.
Delaware Group
- --------------------------------------------------------------------------------
of Funds
- --------------------------------------------------------------------------------
FOR GROWTH OF CAPITAL
Trend Fund
Enterprise Fund
DelCap Fund
Value Fund
U.S. Growth Fund
FOR TOTAL RETURN
Devon Fund
Decatur Total Return Fund
Decatur Income Fund
Delaware Fund
FOR GLOBAL DIVERSIFICATION
Emerging Markets Fund
New Pacific Fund
International Equity Fund
World Growth Fund
Global Assets Fund
Global Bond Fund
FOR CURRENT INCOME
Delchester Fund
Corporate Income Fund
Federal Bond Fund
U.S. Government Fund
Limited-Term Government Fund
FOR TAX-FREE CURRENT INCOME
Tax-Free Pennsylvania Fund
Tax-Free USA Fund
Tax-Free Insured Fund
Tax-Free USA Intermediate Fund
MONEY MARKET FUNDS
Delaware Cash Reserve
U.S. Government Money Fund
Tax-Free Money Fund
CLOSED-END EQUITY/INCOME*
Dividend and Income Fund
Global Dividend and Income Fund
For a prospectus of any other Delaware Group fund, contact your financial
adviser or Delaware Group.
* Delaware Group Dividend and Income Fund and Delaware Group Global Dividend
and Income Fund purchases can be made through any registered broker.
<PAGE>
Be sure to consult your financial adviser when making investments. Mutual
funds can be a valuable part of your financial plan; however, shares of the
Fund are not FDIC or NCUSIF insured, are not guaranteed by any bank or any
credit union, are not obligations of or deposits of any bank or any credit
union, and involve investment risk, including the possible loss of principal.
Shares of the Fund are not bank or credit union deposits.
This report must be preceded or accompanied by a current Delaware Fund
PROSPECTUS and the Delaware Group Fund Performance Update for the most recently
completed calendar quarter.
INVESTMENT MANAGER
Delaware Management Company, Inc.
Philadelphia
INTERNATIONAL AFFILIATE
Delaware International Advisers Ltd.
London
NATIONAL DISTRIBUTOR
Delaware Distributors, L.P.
Philadelphia
SHAREHOLDER SERVICING,
DIVIDEND DISBURSING
AND TRANSFER AGENT
Delaware Service Company, Inc.
Philadelphia
1818 Market Street
Philadelphia, PA 19103-3682
Nationwide (800) 523-4640
SECURITIES DEALERS ONLY
Nationwide (800) 362-7500
FINANCIAL INSTITUTIONS REPRESENTATIVES ONLY
Nationwide (800) 659-BANK (2265)
Copy Rights Delaware Distributors, L.P.
Printed in the U.S.A. on recycled paper.
SA - 002 [4/96] PP6/96
=========
DELAWARE
GROUP
DELAWARE
FUND
========
1996
SEMI-ANNUAL
REPORT
A Tradition of Sound Investing Since 1929
DELAWARE
GROUP
- -----------------
Philadelphia . London
