<PAGE>
Tax-Free Money Fund
service and guidance
professional management
goals
Money Market Fund
(various photos demonstrating service and guidance, professional management and
goals)
1999
Annual
Report
DELAWARE(SM)
INVESTMENTS
- ---------------------
Philadelphia o London
<PAGE>
A TRADITION OF SOUND INVESTING
commitment
A Commitment
To Our Investors
(photo of computer keyboard)
(photo of illustration from Money Market brochure)
tradition
Delaware Investments has a tradition of money management that dates back to
1929. We have a long and distinguished history of helping individuals and
institutions - including some of America's largest pension funds reach their
financial goals.
Headquartered in Philadelphia, a block from the nation's oldest stock
exchange, the Delaware organization established its first mutual fund in 1938.
Delaware International Advisers Ltd., our international affiliate, was
established in 1990 and is headquartered in London.
Delaware Investments offers a full range of mutual funds. We also manage
investments for variable annuities and closed-end funds as well as offer a wide
range of retirement plan services for individuals and businesses.
Delaware Investments manages approximately $45 billion in mutual fund assets
and institutional advisory accounts for more than half-a-million investors.
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.
Tax-Free Money Fund Objective
To seek a high level of current income, exempt from Federal income tax, while
preserving principal and maintaining liquidity.
Table of Contents
Letter to Shareholders Page 1
Statements of Net Assets Page 3
Financial Highlights Page 5
<PAGE>
June 18, 1999
money
market fund
1
Dear Shareholder:
For the 12 months ended April 30, 1999, Tax-Free Money Fund provided a total
return of +2.40% (A Class shares at net asset value with distributions
reinvested). Your Fund outpaced the current U.S. rate of inflation as shown
below. In addition, Tax-Free Money Fund's total return was tax exempt.
During much of calendar 1998 and first quarter 1999, the U.S. economy
exhibited strong growth while the state of the global economy remained tenuous.
To maintain domestic growth, the Federal Reserve Board reduced its target for
short-term interest rates this past autumn by 0.75 percentage points to 4.75%.
Improved global liquidity and a robust U.S. economy, however, now have many
investors fearful that the Federal Reserve may raise interest rates. These fears
were heightened on May 14, when the government reported that consumer prices
rose by 0.7% in April, the largest monthly increase since 1990. The Federal Open
Market Committee met on May 18 and left interest rates unchanged. They did,
however, announce a change in their policy bias towards raising interest rates
in the future. We anticipate that interest rates will remain unchanged
throughout calendar 1999, but intend to keep a watchful eye on this situation in
the months ahead.
Your Fund had an average weighted maturity of 47 days as of April 30, 1999.
We have strategically allocated the Fund's assets at both ends of the relatively
short maturity spectrum of tax-free money market securities rather than across
the full range. The full spectrum ranges from zero to 397 days. We chose
investments with six months to one year maturities to take
Tax-Free Money Fund continues to seek a high level of current income, exempt
from federal income tax, while preserving principal and maintaining liquidity.
AVERAGE ANNUAL TOTAL RETURNS THROUGH APRIL 30, 1999
- --------------------------------------------------------------------------------
One Year Five Years Ten Years Lifetime
- --------------------------------------------------------------------------------
Tax-Free Money Fund
A Class (Est. 9/17/81) +2.40% +2.71% +3.09% +3.96%
Consultant Class (Est. 3/15/88) +2.40% +2.71% +3.06% +3.93%*
- --------------------------------------------------------------------------------
U.S. Consumer Price Index +1.84% +2.34% +3.00%
- --------------------------------------------------------------------------------
Past performance does not guarantee future results. Return and yield
fluctuate. All performance reflects reinvestment of dividends. Money market
funds strive to maintain a net asset value of $1 a share. However, there is
no guarantee this goal will be met. Yields fluctuate with market conditions.
The Fund is neither insured nor guaranteed by the U.S. government. The
Consumer Price Index is the U.S. government's measure of inflation.
* Total return shown for Consultant Class Shares for the periods prior to March
15, 1988 is based on the performance of A Class Shares.
<PAGE>
money
market fund
2
advantage of the additional yield available. We balanced that position with very
short-term investments, those with maturities of less than one month. This
helped protect principal and maintain liquidity.
Our average weighted maturity of 47 days is eleven days longer than our
average maturity as of October 31, 1998. As we anticipated in the Tax-Free Money
Fund semi-annual report, we lengthened the Fund's average weighted maturity
during the second half of fiscal 1999.
Tax-Free Money Fund continues to seek a high level of current income, exempt
from federal income tax, while preserving principal and maintaining liquidity.
Although Tax-Free Money Fund is not designed for long-term investors, it has
the potential to be a safer haven than some other investments and can be a
valuable part of your diversified portfolio. For your longer term needs,
Delaware Investments offers a wide spectrum of both tax-advantaged and taxable
investments, including equity and fixed-income mutual funds, along with variable
annuities.
Thank you for your continued commitment to Delaware Investments and Tax-Free
Money Fund.
Sincerely,
/s/ Wayne A. Stork
- -------------------------------------
Wayne A. Stork
Chairman,
Delaware Investments Family of Funds
/s/ David K. Downes
- --------------------------------------
David K. Downes
President and Chief Executive Officer,
Delaware Investments Family of Funds
<PAGE>
money market fund 3
Financial Statements
Delaware Group Tax-Free Money Fund, Inc.
Statement of Net Assets
April 30, 1999
- --------------------------------------------------------------------------------
Principal Market
Amount Value
-------------------------------
*Variable Rate Demand Notes - 50.68%
District of Columbia 3.10% 6/25/99 ............. $1,000,000 $1,000,000
Illinois Health Facilities Authority Revenue
Alexian Brothers Medical Center
2.85% 5/13/99 ................................ 1,000,000 1,000,000
Illinois Health Facilities Authority Revenue
Decatur Memorial Hospital
4.00% 5/7/99 ................................. 1,500,000 1,500,000
Montgomery County, Maryland Housing
Opportunities Community Multifamily Housing
Revenue - Falkland Apartments
4.20% 5/7/99 (LOC, Connecticut General Life) . 1,600,000 1,600,000
Montgomery County, Pennsylvania Industrial
Development Authority Revenue - Ikea Property
Project 4.05% 5/7/99 (LOC, Morgan
Guaranty Trust Company) ...................... 1,000,000 1,000,000
Municipal Electric Authority, Georgia
4.00% 5/7/99 ................................. 1,500,000 1,500,000
New Jersey Economic Development Authority
Pollution Control Revenue - Public Service
Electric and Gas Company 3.50% 5/7/99 ........ 200,000 200,000
Ohio Housing Finance Agency Multifamily Housing
Revenue - Kenwood Congregate Retirement
3.10% 5/7/99 (LOC, Swiss Bank) ............... 900,000 900,000
Pennsylvania Economic Development Authority
Revenue Series G3 4.15% 5/6/99
(LOC, PNC Bank) .............................. 1,500,000 1,500,000
Pittsburgh, Pennsylvania Urban Development
Authority - Wood Street Commons
3.88% 5/7/99 (LOC, PNC Bank) AMT ............. 1,105,000 1,105,000
Port of Seattle, Washington 4.10% 5/7/99
(LOC, Canadian Imperial Bank of Commerce)
AMT .......................................... 1,700,000 1,700,000
Red River, Texas Pollution Control - Southwestern
Power 4.15% 5/7/99
(Union Bank of Switzerland) .................. 300,000 300,000
Winston Salem, North Carolina Certificates of
Participation 3.95% 5/7/99
(LOC, Credit Suisse) ......................... 1,650,000 1,650,000
----------
Total Variable Rate Demand Notes ............... 14,955,000
----------
Municipal Bonds - 31.85%
Austin, Texas Independent School District
3.10% 8/1/99 ................................. 1,400,000 1,400,000
<PAGE>
- --------------------------------------------------------------------------------
Principal Market
Amount Value
-------------------------------
Deadwood Certificates of Participation
4.00% 11/1/99 (AMBAC) ........................... $1,500,000 $1,504,406
+ Manheim Township, Pennsylvania School District
Series 1994 5.70% 5/1/12-99 (FGIC) .............. 1,000,000 1,000,000
+ Maryland State Health and Higher Educational
Facilities Authority Revenue - Franklin Square
Hospital 7.50% 7/1/19-99 (MBIA) ................. 1,600,000 1,643,381
New Mexico State Severance Tax Series A
4.50% 7/1/99 .................................... 1,000,000 1,001,447
Pittsburgh, Pennsylvania Urban Redevelopment
Authority Series D 3.15% 12/1/99 ................ 1,170,000 1,170,000
+ Prince Georges County, Maryland Development
Authority Revenue - Upper Marlboro Justice
Center 7.00% 6/30/19-99 (MBIA) .................. 1,150,000 1,179,908
Tennessee State Higher Educational Facilities
Authority 3.40% 5/1/99 .......................... 500,000 500,000
----------
Total Municipal Bonds ............................ 9,399,142
----------
**Put Bonds - 7.64%
New Hampshire Higher Educational & Health
Facilities Authority Revenue - Dartmouth
Educational 3.90% 6/1/99 ........................ 755,000 755,000
Oklahoma State Water Resources Board
2.90% 9/1/99 .................................... 1,500,000 1,499,265
----------
Total Put Bonds .................................. 2,254,265
----------
Commercial Paper - 8.47%
Orlando, Florida Capital Improvement
2.70% 5/3/99 .................................... 1,100,000 1,100,000
Sweetwater, Wyoming - Pacificorp
2.65% 6/1/99 .................................... 1,400,000 1,400,000
----------
Total Commercial Paper ........................... 2,500,000
----------
TOTAL MARKET VALUE OF SECURITIES - 98.64%
(cost $29,108,407)++ ......................................... $29,108,407
RECEIVABLES AND OTHER ASSETS NET OF LIABILITIES - 1.36%........ 400,254
----------
NET ASSETS APPLICABLE TO 29,508,661 SHARES
($0.001 PAR VALUE) OUTSTANDING - 100.00%...................... $29,508,661
===========
NET ASSET VALUE - TAX-FREE MONEY FUND A CLASS
($28,136,124 / 28,136,124 SHARES).............................. $1.00
=====
NET ASSET VALUE - TAX-FREE MONEY FUND CONSULTANT CLASS
($1,372,537 / 1,372,537 SHARES)................................ $1.00
=====
<PAGE>
4 money market fund
Statement of Net Assets (Continued)
- --------------------------------------------------------------------------------
_____________
*The Maturity date shown is the longer of the next interest reset date or the
date in which the principal amount can be recovered through demand.
**Put Bonds - Securities are variable rate and the maturity date shown is the
same as the put date.
+For Pre-Refunded Bonds, the stated maturity is followed by the year in which
each bond is pre-refunded.
++Also the cost for federal income tax purposes.
AMBAC - Insured by the AMBAC Indemnity Corporation
AMT - Alternative Minimum Tax
FGIC - Insured by the Financial Guaranty Insurance Company
LOC - Letter of Credit
MBIA - Insured by the Municipal Bond Insurance Association
See accompanying notes
Delaware Group Tax-Free Money Fund, Inc.
Statement of Operations
Year Ended April 30, 1999
- --------------------------------------------------------------------------------
INVESTMENT INCOME:
Interest .............................................. $1,093,062
----------
EXPENSES:
Management fees ....................................... $154,894
Dividend disbursing and transfer agent fees
and expenses ....................................... 52,010
Registration fees ..................................... 28,450
Professional fees ..................................... 23,147
Accounting and administration ......................... 17,161
Taxes (other than taxes on income) .................... 15,194
Reports and statements to shareholders ................ 14,000
Directors' fees ....................................... 6,146
Custodian fees ........................................ 1,565
Other ................................................. 16,164
--------
328,731
Less fees paid indirectly ............................. (1,707)
--------
Total Expenses ........................................ 327,024
----------
NET INVESTMENT INCOME ................................. 766,038
----------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS .................................... $766,038
==========
See accompanying notes
<PAGE>
Delaware Group Tax-Free Money Fund, Inc.
Statements of Changes in Net Assets
- --------------------------------------------------------------------------------
Year Year
Ended Ended
4/30/99 4/30/98
---------------------------------------
Increase in Net Assets from Operations:
Net investment income ............................... $ 766,038 $ 937,219
----------- -----------
Dividends to Shareholders From:
Net investment income:
A Class .......................................... (699,127) (865,335)
Consultant Class ................................. (66,911) (71,884)
----------- -----------
(766,038) (937,219)
Capital Share Transactions:
Proceeds from shares sold:
A Class .......................................... 34,725,830 32,198,458
Consultant Class ................................. 16,825,418 10,201,793
Net asset value of shares issued upon reinvestment
of dividends from net investment income:
A Class .......................................... 668,055 809,603
Consultant Class ................................. 67,810 68,633
----------- -----------
52,287,113 43,278,487
----------- -----------
Cost of shares repurchased:
A Class .......................................... (37,522,036) (35,402,936)
Consultant Class ................................. (20,093,243) (7,227,205)
----------- -----------
(57,615,279) (42,630,141)
----------- -----------
Increase (decrease) in net assets derived from
capital share transactions ....................... (5,328,166) 648,346
----------- -----------
Net Increase (Decrease) In Net Assets ............... (5,328,166) 648,346
----------- -----------
Net Assets:
Beginning of year ................................... 34,836,827 34,188,481
----------- -----------
End of year ......................................... $29,508,661 $34,836,827
=========== ===========
See accompanying notes
<PAGE>
money market fund 5
Delaware Group Tax-Free Money Fund, Inc.
Financial Highlights
- --------------------------------------------------------------------------------
Selected data for each share of the Fund outstanding throughout each year were
as follows:
<TABLE>
<CAPTION>
Tax-Free Money Fund A Class
----------------------------------------------------------
Year Ended Year Ended Year Ended Year Ended Year Ended
4/30/99 4/30/98 4/30/97 4/30/96 4/30/95
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year .................... $1.000 $1.000 $1.000 $1.000 $1.000
Income from investment operations:
Net investment income .............................. 0.024 0.028 0.028 0.029 0.026
------- ------- ------- ------- -------
Total from investment operations ................... 0.024 0.028 0.028 0.029 0.026
------- ------- ------- ------- -------
Less dividends:
Dividends from net investment income ............... (0.024) (0.028) (0.028) (0.029) (0.026)
------- ------- ------- ------- -------
Total dividends .................................... (0.024) (0.028) (0.028) (0.029) (0.026)
------- ------- ------- ------- -------
Net asset value, end of year .......................... $1.000 $1.000 $1.000 $1.000 $1.000
======= ======= ======= ======= =======
Total return .......................................... 2.40% 2.78% 2.79% 2.97% 2.59%
Ratios and supplemental data:
Net assets, end of year (000 omitted) .............. $28,136 $30,264 $32,659 $35,479 $54,444
Ratio of expenses to average net assets ............ 1.02% 0.91% 0.82% 0.90% 0.96%
Ratio of net investment income to average net assets 2.37% 2.75% 2.75% 2.95% 2.57%
</TABLE>
<TABLE>
<CAPTION>
Tax-Free Money Fund Consultant Class
----------------------------------------------------------
Year Ended Year Ended Year Ended Year Ended Year Ended
4/30/99 4/30/98 4/30/97 4/30/96 4/30/95
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year .................... $1.000 $1.000 $1.000 $1.000 $1.000
Income from investment operations:
Net investment income .............................. 0.024 0.028 0.028 0.029 0.026
------- ------- ------- ------- -------
Total from investment operations ................... 0.024 0.028 0.028 0.029 0.026
------- ------- ------- ------- -------
Less dividends:
Dividends from net investment income................ (0.024) (0.028) (0.028) (0.029) (0.026)
------- ------- ------- ------- -------
Total dividends..................................... (0.024) (0.028) (0.028) (0.029) (0.026)
------- ------- ------- ------- -------
Net asset value, end of year .......................... $1.000 $1.000 $1.000 $1.000 $1.000
======= ======= ======= ======= =======
Total return .......................................... 2.40% 2.78% 2.79% 2.97% 2.59%
Ratios and supplemental data:
Net assets, end of year (000 omitted)............... $1,373 $4,573 $1,529 $1,452 $1,614
Ratio of expenses to average net assets ............ 1.02% 0.91% 0.82% 0.90% 0.96%
Ratio of net investment income to average net assets 2.37% 2.75% 2.75% 2.95% 2.57%
</TABLE>
See accompanying notes
<PAGE>
6 money market fund
Delaware Group Tax-Free Money Fund, Inc.
Notes To Financial Statements
April 30, 1999
- --------------------------------------------------------------------------------
Delaware Group Tax-Free Money Fund, Inc. (the "Fund") is registered as a
diversified open-end investment company under the Investment Company Act of
1940, as amended. The Fund is organized as a Delaware Business Trust and offers
two classes of shares. The Tax-Free Money Fund A Class and The Tax-Free Money
Fund Consultant Class. Neither class has a sales charge. The Fund's objective is
to seek maximum current income, exempt from federal income tax, while preserving
principal and maintaining liquidity consistent with prudent investment
management. Though there is no guarantee that this goal will be met, the Fund
strives to maintain a stable net asset value of $1.00.
1. Significant Accounting Policies
The following accounting policies are in accordance with generally accepted
accounting principles and are consistently followed by the Fund:
Security Valuation - Securities are valued at amortized cost which approximates
market value.
Federal Income Taxes - The Fund intends to continue to qualify as a regulated
investment company and make the requisite distributions to shareholders.
Accordingly, no provision for federal income taxes has been made in the
financial statements.
Class Accounting - Investment income and common expenses are allocated to the
various classes of the Fund on the basis of daily net assets of each class.
Distribution expenses relating to a specific class are charged directly to that
class.
Use of Estimates - The preparation of financial statements in conformity with
generally accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities at
the date of the financial statements and the reported amounts of revenues and
expenses during the reporting period. Actual results could differ from those
estimates.
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.
Interest income is recorded on the accrual basis. Discounts and premiums on
securities purchased are amortized to interest income over the lives of the
respective securities. The Fund declares dividends daily from net investment
income and pays such dividends monthly. Realized gains, if any, will be
distributed annually.
Certain expenses of the Fund are paid through "soft dollar" arrangements with
brokers. These transactions are done subject to best price and execution. The
amount of these expenses was approximately $742 for the period ended April 30,
1999. The Fund may receive earnings credit used to offset custody fees when
positive balances are maintained at the custodian. These credits were $965 for
the period ended April 30, 1999. The "soft dollar" reimbursement and the
earnings credit are combined as expenses paid indirectly in the Statement of
Operations.
<PAGE>
2. Investment Management and Other Transactions with Affiliates
Effective April 1, 1999, the Fund pays Delaware Management Company (DMC), the
investment manager, an annual fee which is calculated daily at the following
rates; 0.45% on the first $500 million of average daily net assets, 0.40% on the
next $500 million, 0.35% on the next $1.5 billion and 0.30% on the average daily
net assets in excess of $2.5 billion. Prior to April 1, 1999 the annual fee was
calculated daily at the rate of 0.50% on the average daily net assets of the
Fund less the fees paid to the unaffiliated directors. On April 30, 1999, the
Fund had a liability for investment management fees and other expenses payable
to DMC of $14,424.
The Fund has engaged Delaware Service Company, Inc. (DSC), an affiliate of DMC,
to provide dividend disbursing, transfer agent and accounting 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. On April 30,
1999, the Fund had a liability for such fees and other expenses payable to DSC
of $1,584.
Pursuant to the Distribution Agreement, the Fund may pay Delaware Distributors,
L.P. (DDLP), the Distributor and an affiliate of DMC, an annual 12b-1 fee not to
exceed 0.30% of the average daily net assets of the Fund. Effective June 1,
1990, 12b-1 Plan payments to DDLP were suspended but may be reinstated in the
future.
3. Capital Stock
Transactions in capital stock shares were as follows:
Year Year
Ended Ended
4/30/99 4/30/98
---------- ----------
Shares sold:
A Class ...................................... 34,725,830 32,198,458
Consultant Class ............................. 16,825,418 10,201,793
Shares issued upon reinvestment of dividends
from net investment income:
A Class ...................................... 668,055 809,603
Consultant Class.............................. 67,810 68,633
---------- ----------
52,287,113 43,278,487
---------- ----------
Shares repurchased:
A Class....................................... (37,522,036) (35,402,936)
Consultant Class.............................. (20,093,243) (7,227,205)
---------- ----------
(57,615,279) (42,630,141)
---------- ----------
Net increase (decrease) ......................... (5,328,166) 648,346
========== ==========
4. Market and Credit Risk
The Fund concentrates its investments in securities issued by municipalities.
The value of these investments may be adversely affected by legislation within
the states, regional or local economic conditions, and differing levels of
supply and demand for municipal bonds. Many municipalities insure repayment of
their obligations. Although bond insurance reduces the risk of loss due to
default by an issuer, such bonds remain subject to the risk that market value
may fluctuate for other reasons and there is no assurance that the insurance
company will meet its obligations.
<PAGE>
money market fund 7
Delaware Group Tax-Free Money Fund, Inc.
Report of Independent Auditors
- --------------------------------------------------------------------------------
To the Shareholders and Board of Directors
Delaware Group Tax-Free Money Fund, Inc.
We have audited the accompanying statement of net assets of Delaware Group
Tax-Free Money Fund, Inc. (the "Fund") as of April 30, 1999, and the related
statement of operations for the year then ended, the statements of changes in
net assets for each of the two years in the period then ended, and the financial
highlights for each of the five years in the period then ended. These financial
statements and financial highlights are the responsibility of the Fund's
management. Our responsibility is to express an opinion on these financial
statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements and financial highlights. Our procedures included confirmation of
securities owned as of April 30, 1999, by correspondence with the custodian and
brokers. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Delaware Group Tax-Free Money Fund, Inc. at April 30, 1999, the results of its
operations for the year then ended, the changes in its net assets for each of
the two years in the period then ended, and its financial highlights for each of
the five years in the period then ended, in conformity with generally accepted
accounting principles.
/s/ Ernst & Young LLP
Philadelphia, Pennsylvania
June 4, 1999
<PAGE>
8 money market fund
Proxy Results
(Unaudited)
- --------------------------------------------------------------------------------
For the fiscal year ended April 30, 1999, The Delaware Cash Reserve shareholders
voted on the following proposals at the annual meeting of shareholders on
December 21, 1998. The description of each proposal and number of shares voted
are as follows:
1. To elect the Fund's Board of Directors:
Shares Shares Voted
Voted Withheld
For Authority
-----------------------
Jeffrey J. Nick ................................. 17,163,722 2,379,432
Walter P. Babich ................................ 17,184,268 2,358,886
John H. Durham................................... 17,235,070 2,308,084
Anthony D. Knerr ................................ 17,235,070 2,308,084
Ann R. Leven .................................... 17,235,070 2,308,084
Thomas F. Madison ............................... 17,235,070 2,308,084
Charles E. Peck ................................. 17,235,070 2,308,084
Wayne A. Stork................................... 17,235,070 2,308,084
Jan L. Yeomans................................... 17,235,070 2,308,084
2. To approve the reclassification of the Fund's investment objective from
fundamental to non-fundamental.
Shares Shares Shares
Voted For Voted Against Voted Abstain
----------------------------------------------------------
16,613,444 1,260,894 1,644,150
3. To approve standardized fundamental investment restrictions for the Fund
(proposal involves separate votes on seven sub-proposals 3A-3G).
3A. To adopt a new fundamental investment restriction concerning concentration
of the Fund's investments in the same industry.
Shares Shares Shares
Voted For Voted Against Voted Abstain
----------------------------------------------------------
17,360,158 541,890 1,616,438
3B. To adopt a new fundamental investment restriction concerning borrowing money
and issuing senior securities.
Shares Shares Shares
Voted For Voted Against Voted Abstain
----------------------------------------------------------
17,282,820 773,490 1,462,177
3C. To adopt a new fundamental investment restriction concerning underwriting.
Shares Shares Shares
Voted For Voted Against Voted Abstain
----------------------------------------------------------
17,280,302 548,392 1,689,792
<PAGE>
3D. To adopt a new fundamental investment restriction concerning investments in
real estate.
Shares Shares Shares
Voted For Voted Against Voted Abstain
----------------------------------------------------------
16,899,941 970,119 1,648,427
3E. To adopt a new fundamental investment restriction concerning investments in
commodities.
Shares Shares Shares
Voted For Voted Against Voted Abstain
----------------------------------------------------------
16,642,572 1,196,671 1,679,244
3F. To adopt a new fundamental investment restriction concerning lending by the
Fund.
Shares Shares Shares
Voted For Voted Against Voted Abstain
----------------------------------------------------------
17,358,527 569,218 1,590,742
3G. To reclassify all current fundamental investment restrictions as
non-fundamental.
Shares Shares Shares
Voted For Voted Against Voted Abstain
----------------------------------------------------------
16,626,974 1,259,500 1,632,013
4. To approve a new investment management agreement with Delaware Management
Company for the Fund.
Shares Shares Shares
Voted For Voted Against Voted Abstain
----------------------------------------------------------
16,667,932 890,827 1,959,729
5. To ratify the selection of Ernst & Young LLP, as the independent auditors for
the Company.
Shares Shares Shares
Voted For Voted Against Voted Abstain
----------------------------------------------------------
17,669,116 521,516 1,352,521
6. To approve the restructuring of the Company from its current form of
organization into a Delaware Business Trust.
Shares Shares Shares
Voted For Voted Against Voted Abstain
----------------------------------------------------------
17,207,561 469,624 1,841,302
<PAGE>
This annual report is for the information of Tax-Free Money Fund shareholders,
but it may be used with prospective investors when preceded or accompanied by a
current Prospectus for Tax-Free Money 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 each Fund. You should read the prospectus carefully before
you invest or send money. 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 each Fund will fluctuate so that shares, when redeemed, may be
worth more or less than their original cost.
Board of Directors
Wayne A. Stork
Chairman,
Delaware Investments Family of Funds
Philadelphia, PA
David K. Downes
President and Chief Executive Officer,
Delaware Investments Family of Funds
Philadelphia, PA
Walter P. Babich
Board Chairman, Citadel Constructors, Inc.
King of Prussia, PA
John H. Durham
Partner, Complete Care Services
Horsham, PA
Anthony D. Knerr
Consultant, Anthony Knerr & Associates
New York, NY
Ann R. Leven
Treasurer, National Gallery of Art
Washington, DC
Thomas F. Madison
President and Chief Executive Officer
MLM Partners, Inc.
Minneapolis, MN
Charles E. Peck
Secretary/Treasurer, Enterprise Homes, Inc.
Fredericksburg, VA
Jan L. Yeomans
Vice President and Treasurer
3M Corporation
St. Paul, Minnesota
Affiliated Officers
George M. Chamberlain, Jr.
Senior Vice President, Secretary
and General Counsel
Delaware Investments Family of Funds
Philadelphia, PA
Bruce D. Barton
President and Chief Executive Officer
Delaware Distributors, L.P.
Philadelphia, PA
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Investment Manager
Delaware Management Company
Philadelphia, Pennsylvania
International Affiliate
Delaware International Advisers Ltd.
London, England
National Distributor
Delaware Distributors, L.P.
Philadelphia, Pennsylvania
Shareholder Servicing,
Dividend Disbursing
and Transfer Agent
Delaware Service Company, Inc.
Philadelphia, Pennsylvania
1818 Market Street
Philadelphia, PA 19103-3682
<PAGE>
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When used with prospective investors, this report must be preceded or
accompanied by a current Tax-Free Money Fund Prospectus and the Delaware
Investments Performance Update for the most recently completed calendar quarter.
For a prospectus of any other mutual fund from Delaware Investments, contact
your financial adviser or Delaware Investments.
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
Money market funds strive to maintain a net asset value of $1 a share. However,
there is no guarantee this goal will be met. Yields fluctuate with market
conditions. The Fund is neither insured nor guaranteed by the U.S. government.
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,
and involve investment risk, including the possible loss of the principal amount
invested. Shares of the Fund are not bank or credit union deposits.
(C) Delaware Distributors, L.P.
DELAWARE(SM)
INVESTMENTS
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Philadelphia o London
Printed in the USA
on recycled paper
(1787)
AR-006[4/99]PPL 6/99
