<PAGE>
DELAWARE(SM)
INVESTMENTS
===========
Delaware Limited-Term Government Fund
Current Income
2000 SEMI-ANNUAL REPORT
(Current Income Artwork)
<PAGE>
A TRADITION OF SOUND INVESTING SINCE 1929
=========================================
TABLE OF CONTENTS
=================
Letter to Shareholders 1
Portfolio Management
Review 3
Performance Summary 5
Financial Statements
Statement of Net Assets 6
Statement of Assets and Liabilities 8
Statement of Operations 9
Statements of Changes in
Net Assets 10
Financial Highlights 11
Notes to Financial
Statements 15
A Commitment To Our Investors
Experienced
/ / Our seasoned investment professionals average more than 15 years'
experience.
/ / 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
/ / We follow strict investment policies and clear buy/sell guidelines.
/ / We strive to balance risk and reward in order to provide sound investment
alternatives within any given asset class.
Consistent
/ / We clearly articulate our investment policies and follow them consistently.
/ / Our commitment to style 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
/ / 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
/ / Our funds are available through financial advisers who can offer you
individualized attention and valuable investment advice.
Funds are not FDIC insured and are not guaranteed. It is possible to lose the
principal amount invested.
(C)Delaware Distributors, L.P.
<PAGE>
Dear Shareholder
August 14, 2000
Recap of Events - The first half of 2000 was an event-filled period in the
fixed-income markets. Rising interest rates and a spring stock market correction
were among several factors helping to create a challenging environment for
fixed-income investors.
The U.S. Federal Reserve raised short-term interest rates three times during the
period, running its total of such increases to six since June 1999. As of this
writing, the much-discussed overnight bank lending rate stands at 6.5%, its
highest level since 1991, with another increase possible on August 22.
The rate hikes were designed to put the brakes on a U.S. economy that continued
to grow rapidly during the period. When we last reported to you in early
January, the U.S. economy was humming, and an advancing domestic stock market
had driven down demand for U.S. Treasuries. This, in turn, affected prices in
that market.
The balance shifted rather quickly for fixed-income investors, however, pivoting
on a few key events. Perhaps most significantly, domestic stock markets began a
two-month correction in mid-March that included a handful of days which saw
sharp declines on major indices. Investors looking to traditional safe havens
may have fueled demand for U.S. Treasury issues, as prices for those securities
were driven higher. Even before the stock market downturn, the U.S. Treasury
Department's announced plan to repurchase long-term debt using the budget
surplus may have initially sparked demand in Treasury markets. This combination
of events, when set against the backdrop of rising short-term interest rates,
projected what bond traders call an inverted yield curve - a somewhat uncommon
environment in which short-term bonds have higher yields than securities with
longer maturities.
Total Return
For Period Ended June 30, 2000 Six Months
----------------------------------------------------------------------------
Delaware Limited-Term Government Fund Class A +2.39%
----------------------------------------------------------------------------
Merrill Lynch 1-3 Year Government Bond Index +2.99%
Lipper Short-Intermediate Government Funds Average (92 funds) +2.65%
----------------------------------------------------------------------------
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. For U.S. Treasury securities, interest
and principal repayment at maturity are guaranteed by the U.S. government,
unlike mutual fund dividends and share values, which are not guaranteed. The
Merrill Lynch 1-3 Year Government Bond Index is an unmanaged index that
generally tracks the market for U.S. Treasury securities with maturities of one
to three years. The Lipper category represents the average returns of
short-intermediate government funds tracked by Lipper (Source: Lipper). You
cannot invest directly in an index. Past performance does not guarantee future
results.
1
<PAGE>
Delaware Limited-Term Government Fund provided a total return of +2.39% (Class A
shares at net asset value with distributions reinvested) for the six-month
period ended June 30, 2000, falling shy of the +2.65% average return posted by
its peers in the Lipper Short-Intermediate Government Funds class. The Fund's
underperformance may have been due in part to its underweighting in Treasuries
when the market first began to favor those securities during the period. Still,
the six-month period was more favorable than the whole of 1999 to both the Fund
and to short-intermediate government funds in general.
Market Outlook - Fixed-income investors have continued to fight an uphill battle
during the Fed's extended period of raising rates. A "soft landing" for the
economy and an autumn stock market rally would likely keep bonds in the shadow
of equity investments. Regardless of whether the Fed continues its tightening or
steps to the sidelines, however, we believe that the broad trends which affect
your Fund are more clearly defined than they were six months ago. In our
opinion, economic fundamentals remain strong, demand for Treasuries may have
peaked this summer, and interest rates trending downward over the long term
would be no surprise.
We believe that fixed-income funds like Delaware Limited-Term Government Fund
will continue to play a role in a well-diversified portfolio. On the pages that
follow, Paul Grillo and Stephen Cianci, your Fund's portfolio managers, explain
the Fund's positioning during the first half of 2000 and provide a
sector-specific outlook for investment opportunities in the coming months.
We thank you for your continued confidence, and your commitment to Delaware
Investments.
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
(Current Income Artwork)
2
<PAGE>
PORTFOLIO MANAGEMENT REVIEW
===========================
Paul C. Grillo, Jr.
Portfolio Manager
Stephen R. Cianci
Portfolio Manager
August 14, 2000
Delaware Limited-Term Government Fund returned +2.39% for the six-month period
ended June 30, 2000 (Class A shares at net asset value with distributions
reinvested), or about one quarter of a percentage point less than its average
peer in the Lipper Short-Intermediate Government Funds class, which posted an
average return of +2.65% for the period.
At first glance, short-intermediate government funds in general could appear to
be on track for about an average year (+5.24% average annualized lifetime return
for the relative Lipper class since the Fund's inception, November 24, 1985)
[Source: Lipper]. In terms of events, however, the first half of 2000 was far
from "average" in the fixed-income markets. We felt that rising short-term rates
and an inverted interest rate yield curve left bond investors trying to plot a
course through challenging waters.
Portfolio Highlights
During the six-month period we repositioned the portfolio in order to benefit
from an increase in demand seen in the market for U.S. Treasury securities.
The first quarter saw Treasuries, which had been performing poorly, return to
favor among investors.
At the outset of the period, your Fund's allocation in Treasury issues was
15.2%. Gathering global economic strength in 1999 had resulted in a drop in
demand for these securities, and we had lessened our weighting in this area
accordingly.
At the beginning of the period, we saw particular value in collateralized
mortgage obligations (CMOs) - securities that are derived from pools of
mortgages and offered by private sector financing companies, as well as by
government-sponsored corporations like Fannie Mae and Freddie Mac. As the New
Year passed, the markets continued to favor non-Treasuries, or spread sectors,
and we retained our somewhat heavy weighting in CMOs. As the first quarter
progressed, however, Treasuries began to outperform comparable duration CMOs,
and we sold some of our CMO positions to purchase Treasury notes and bonds.
A series of events produced the shift toward Treasuries in the markets. In late
January, the interest rate yield curve inverted for the first time since 1990,
spurred by the Treasury Department's announced plan to buy back long-term debt.
Prices in the non-Treasury sectors we invest in - corporate bonds,
mortgage-backed securities, and U.S. government agency securities - reacted
negatively to the market changes while Treasury prices began to rise. We decided
to begin increasing our allocation of government issues. Another interest rate
hike by the Federal Reserve Board followed soon after on February 2, 2000,
accentuating the changing environment. As a result, we continued to purchase
Treasuries, which by the end of the period were 27.1% of the portfolio.
"DURING THE SIX-MONTH PERIOD WE REPOSITIONED THE PORTFOLIO IN ORDER TO BENEFIT
FROM AN INCREASE IN DEMAND SEEN IN THE MARKET FOR U.S. TREASURY SECURITIES."
3
<PAGE>
Asset Allocation
As of June 30, 2000
--------------------------------------------------------------------
Agency Mortgage-Backed
Securities 34.4%
--------------------------------------------------------------------
U.S. Treasury Obligations 27.1%
--------------------------------------------------------------------
Collateralized Mortgage
Obligations 15.1%
--------------------------------------------------------------------
Asset-Backed Securities 7.1%
--------------------------------------------------------------------
U.S. Government Agency
Obligations 5.8%
--------------------------------------------------------------------
Corporate Bonds 4.0%
--------------------------------------------------------------------
Money Market Instruments 3.5%
--------------------------------------------------------------------
Cash and Other Assets 3.0%
--------------------------------------------------------------------
The rate curve inversion means that short-term bonds currently
have higher yields than bonds with longer maturities - an infrequently occurring
environment. Because the Fund focuses on short- to intermediate-term debt, we
were not able to take advantage of some of the opportunities presented by this
particular scenario.
One of the Fund's objectives is to minimize sensitivity to interest rate
fluctuations while continuing to seek income for shareholders. This led us to
raise the level of quality in the portfolio during the period, purchasing
securities of issuers with only the best credit ratings. In buying higher
quality debt issues we also looked to more liquid areas of the market that have
less systematic risk, or sensitivity to market conditions. In doing this, we
sold some of our corporate debt holdings, often moving to asset-backed
instruments such as credit card receivables that have the highest possible
credit ratings.
Long-term bonds are generally more sensitive to interest rate fluctuation than
short-term bonds. Because of this, we also limited our average duration in the
portfolio. This strategy, in turn, impels us to seek out undervalued sectors of
the market to achieve our returns. Later in the period, we perceived value in
select segments of the CMO market that were coming back into favor, as well as
in 10-year, AAA-rated agency bonds. We invested in such areas accordingly.
Outlook
As June wound to a close, it was becoming apparent that the market for U.S.
Treasury securities would soon peak, if it had not done so already. While market
risk in many non-Treasury sectors is still prevalent, we believe the worst may
be over for non-Treasury issues. We will continue to monitor leading indicators
for signs of a shift in favor.
If the Fed manages to engineer the soft landing desired, the chances of a mass
flight to fixed-income securities is less likely, and bond funds may continue to
struggle for their returns. However, many characteristics of the current
environment suggest that 2000's mid-point makes a better-than-usual vantage
point. With short-term rates at their highest level since 1991, it is difficult
not to envision them retreating long-term, regardless of the Fed's actions at
its next meeting. In addition, June was the best month of the year thus far for
non-Treasury issues, suggesting that these sectors may be returning to favor as
we begin the second half of the year. Our markets reacted in extreme fashion to
the events of the first half, which affords the possibility that some upside
surprise awaits us the rest of the way.
(Current Income Artwork)
4
<PAGE>
FUND BASICS
===========
Fund Objective
The Fund seeks to provide a high,
stable level of income while
attempting to minimize fluctuations
in principal and to provide
maximum liquidity.
Total Fund Assets
$244.09 million
Number of Holdings
63
Fund Start Date
November 24, 1985
Your Fund Management
Paul C. Grillo, Jr. joined Delaware
Investments in 1993, after serving as a
Mortgage Strategist and Trader at Dreyfus
Corporation. He holds a bachelor's degree
from North Carolina State University and an
MBA from Pace University. He is a Chartered
Financial Analyst.
Stephen R. Cianci joined Delaware Investments
in 1992. He holds both a BS and an MBA from
Widener University. He became co-manager of
the Fund in January 1999. Mr. Cianci is an
Adjunct Professor of Finance at Widener
University and is a Chartered Financial Analyst.
Nasdaq Symbols
Class A DTRIX
Class B DTIBX
Class C DTICX
DELAWARE LIMITED-TERM GOVERNMENT FUND PERFORMANCE
=================================================
<TABLE>
<CAPTION>
Average Annual Total Returns
Through June 30, 2000 Lifetime 10 Years Five Years One Year
-----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A (Est. 11/24/85)
Excluding Sales Charge +6.12% +5.57% +4.52% +3.64%
Including Sales Charge +5.92% +5.28% +3.94% +0.77%
-----------------------------------------------------------------------------------------
Class B (Est. 5/2/94)
Excluding Sales Charge +3.73% +3.64% +2.76%
Including Sales Charge +3.73% +3.64% +0.82%
-----------------------------------------------------------------------------------------
Class C (Est. 11/28/95)
Excluding Sales Charge +3.67% +2.76%
Including Sales Charge +3.67% +1.78%
</TABLE>
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 did not apply or the investment was not redeemed. Past performance is
not a guarantee of future results.
Class A shares have a 2.75% 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 2% if redeemed before the end of the third year.
Class C shares have a 1% annual distribution and service fee. If redeemed within
12 months, a 1% contingent deferred sales charge applies.
The average annual total returns for the lifetime, 10-year, five-year, and
one-year periods ended June 30, 2000 for Delaware Limited-Term Government Fund
Institutional Class were +6.26%, +5.72%, +4.68%, and +3.79%, respectively. The
Institutional Class was originally made available without sales charges only to
certain eligible institutional accounts on June 1, 1992. Performance prior to
this inception date is based on Class A performance, adjusted to eliminate the
effect of the sales charge, but not Class A's asset-based distribution charge.
Nasdaq Symbol Institutional Class: DTINX
5
<PAGE>
Statement of Net Assets
DELAWARE LIMITED-TERM GOVERNMENT FUND
=====================================
<TABLE>
<CAPTION>
Principal Market
June 30, 2000 (Unaudited) Amount Value
-------------------------------------------------------------------------------------------
Agency Mortgage-Backed Securities - 16.64%
Federal Home Loan Mortgage Corporation
<S> <C> <C>
8.00% 4/1/29 to 8/1/29 ...................................... $ 7,822,456 $ 7,913,975
8.50% 12/1/08 to 11/1/10 .................................... 1,399,406 1,430,689
8.75% 5/1/10 ................................................ 489,176 507,214
9.00% 6/1/09 to 8/1/11 ...................................... 899,116 931,295
9.50% 11/1/05 ............................................... 743,635 774,543
11.00% 10/1/14 to 11/1/15 ................................... 780,962 855,374
11.50% 8/1/15 to 3/1/01 ..................................... 2,738,871 3,054,884
Federal National Mortgage Association
7.00% 3/1/29 to 5/1/29 ...................................... 4,817,262 4,645,647
8.00% 9/1/02 to 3/1/09 ...................................... 7,396,928 7,441,212
8.50% 3/1/11 to 8/1/17 ...................................... 5,012,330 5,138,106
9.00% 4/1/16 to 8/1/04 ...................................... 1,445,144 1,497,885
9.25% 7/1/16 to 3/1/20 ...................................... 1,096,129 1,141,094
10.00% 1/1/19 ............................................... 348,727 370,849
11.00% 8/1/15 to 9/1/15 ..................................... 4,247,200 4,651,787
12.50% 2/1/11 ............................................... 79,374 89,990
13.00% 7/1/15 ............................................... 156,297 180,083
-----------
Total Agency Mortgage-Backed
Securities (cost $40,961,357) ............................... 40,624,627
-----------
Asset-Backed Securities - 7.13%
Advanta Home Equity Loan Trust 92-4 A1
7.20% 11/25/08 .............................................. 275,834 270,494
MBNA Master Credit Card Trust
Series 2000-A Class A 7.35% 7/16/07 ......................... 5,000,000 5,038,750
Peco 1999-A-A4 5.80% 3/1/07 .................................... 5,015,000 4,767,510
Standard Credit Card Master Trust
Series 1994-4 Class A 8.25% 11/7/03 ......................... 1,500,000 1,516,860
Series 1995-1 Class A 8.25% 1/7/07 .......................... 5,622,000 5,816,617
-----------
Total Asset-Backed Securities
(cost $18,043,188) .......................................... 17,410,231
-----------
Collateralized Mortgage Obligations - 15.11%
Federal Home Loan Mortgage Corporation
Series 26 Class F 9.50% 2/15/20 ............................. 2,310,926 2,377,007
Series 69 Class F 9.00% 12/15/05 ............................ 546,823 553,481
Federal Home Loan Mortgage Association
Series 1998-W3 Class A3 6.50%
7/25/28 ..................................................... 3,487,000 3,393,548
Fanniemae Strip Series 46 Class 2 11.00%
12/25/03 .................................................... 1,099,577 1,146,877
Government National Mortgage Association
Series 1998-9 Class B 6.85% 12/20/25 ........................ 5,486,721 5,292,875
Series 1999-23 Class VB 6.50% 3/20/10 ....................... 10,000,000 9,621,400
Investor GNMA Mortgage-Backed Securities
Trust Series 1984-4 Class F 10.875%
10/25/13 .................................................... 65,693 67,642
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Principal Market
Amount Value
------------------------------------------------------------------------------------------
Collateralized Mortgage Obligations (continued)
Residential Funding Mortgage Security
<S> <C> <C>
Series 1997-S8 Class A7
7.50%10/25/09 ................................................ $ 957,354 $ 952,969
Series 1999-S10 Class A1
6.25% 4/25/14 ................................................ 6,721,918 6,441,882
Residential Accredit Loans
Series 1998-QS6 Class CB6
6.75% 5/25/28 ................................................ 7,185,165 7,040,456
-----------
Total Collateralized Mortgage Obligations
(cost $37,445,882) ........................................... 36,888,137
-----------
Commercial Mortgage-Backed Security - 2.28%
Lehman Large Loan Series 97-LLI Class A1
6.79% 6/12/04 ................................................ 5,621,530 5,553,047
-----------
Total Commercial Mortgage-Backed
Security (cost $5,526,666) ................................... 5,553,047
-----------
Corporate Bonds - 3.98%
Daimler-Benz North 7.375% 9/15/06 ............................... 4,700,000 4,652,643
Deutsche Telekom 8.00% 6/15/10 .................................. 5,000,000 5,050,710
-----------
Total Corporate Bonds (cost $9,923,437) ......................... 9,703,353
-----------
Government National Mortgage Association
Obligations - 15.52%
GNMA
7.50% 8/15/29 to 11/15/29 .................................... 17,791,674 17,692,521
7.625% 2/15/22 ............................................... 1,764,877 1,767,635
8.00% 5/15/30 to 4/15/30 ..................................... 5,679,378 5,753,488
9.00% 7/15/16 to 5/15/16 ..................................... 3,092,997 3,224,922
9.50% 6/15/16 to 10/15/17 .................................... 704,797 740,197
11.00% 2/15/10 to 7/15/10 .................................... 1,816,891 2,016,870
11.50% 7/15/15 ............................................... 23,550 26,339
12.00% 10/15/10 .............................................. 51,362 58,456
12.25% 9/15/13 to 1/15/14 .................................... 181,861 206,298
12.50% 12/15/10 .............................................. 44,377 50,562
13.75% 9/15/14 ............................................... 48,234 55,454
GNMA GPM
11.50% 4/15/10 ............................................... 93,092 104,235
GNMA II
9.50% 9/20/21 to 11/20/20 .................................... 1,771,737 1,868,629
9.75% 11/20/16 ............................................... 241,456 254,208
10.00% 7/20/20 to 1/20/20 .................................... 903,074 977,296
10.50% 11/15/15 to 6/20/20 ................................... 196,335 211,828
11.00% 9/20/15 to 10/20/15 ................................... 625,953 693,830
11.50% 12/20/17 to 10/20/18 .................................. 158,052 173,216
12.00% 5/20/14 to 4/20/14 .................................... 1,326,965 1,508,684
12.50% 10/20/13 to 1/20/14 ................................... 435,515 492,849
-----------
Total Government National Mortgage
Association Obligations
(cost $37,662,346) ........................................... 37,877,517
-----------
</TABLE>
6
<PAGE>
Statement of Net Assets (continued)
<TABLE>
<CAPTION>
Principal Market
Delaware Limited - Term Government Fund Amount Value
------------------------------------------------------------------------------------------
U.S. Government Agency Obligations - 5.81%
Federal National Mortgage Association
<S> <C> <C>
6.625% 1/15/02 $ 7,085,000 $ 7,058,325
Financial Assistance Corporation
9.375% 7/21/03 6,700,000 7,132,371
-----------
Total U.S. Government Agency
Obligations (cost $14,209,505) 14,190,696
-----------
U.S. Treasury Obligations - 27.07%
U.S. Treasury Bonds
*10.75% 8/15/05 10,605,000 12,643,154
11.625% 11/15/04 7,600,000 9,124,750
U.S. Treasury Notes
5.875% 11/15/04 21,480,000 21,158,320
6.50% 2/15/10 17,450,000 18,027,632
7.875% 11/15/04 4,830,000 5,114,059
-----------
Total U.S. Treasury Obligations
(cost $66,556,916) 66,067,915
-----------
Money Market Instruments - 3.48%
Bank of New York 7.22% 5/9/01 3,505,000 3,504,281
Commerzbank New York
7.145% 6/26/01 5,000,000 4,999,566
-----------
Total Money Market Instruments
(cost $8,504,269) 8,503,847
-----------
Total Market Value of Securities - 97.02%
(cost $238,833,566) $236,819,370
Receivables and Other Assets
Net of Liabilities - 2.98% 7,272,934
-----------
Net Assets Applicable to 29,785,172
Shares Outstanding - 100.00% $244,092,304
===========
Net Asset Value - Delaware Limited-Term
Government Fund A Class
($224,016,532 / 27,335,462 shares) $8.20
-----
Net Asset Value - Delaware Limited-Term
Government Fund B Class
($8,986,197 / 1,096,535 shares) $8.20
-----
Net Asset Value - Delaware Limited-Term
Government Fund C Class
($6,934,345 / 846,137 shares) $8.20
-----
Net Asset Value - Delaware Limited-Term
Government Fund Institutional Class
($4,155,230 / 507,038 shares) $8.20
-----
</TABLE>
---------------
* Principal amount of $5,000,000 pledged as collateral for futures contracts.
GPM - Graduate Payment Mortgage
<PAGE>
--------------------------------------------------------------------
Components of Net Assets at June 30, 2000:
Shares of beneficial interest (unlimited
authorization - no par) $398,966,119
Undistributed net investment income 16,274
Accumulated net realized loss on
investments (152,589,231)
Net unrealized depreciation of investments
and futures contracts (2,300,858)
------------
Total net assets $244,092,304
============
Net Asset Value and Offering Price Per Share -
Delaware Limited-Term Government Fund
Net asset value A Class (A) $8.20
Sales charge (2.75% of offering price or
2.80% of amount invested per share) (B) 0.23
-----
Offering price $8.43
=====
---------------
(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 $100,000 or more.
See accompanying notes
7
<PAGE>
Statement of Assets and Liabilities
June 30, 2000 (Unaudited) Delaware Limited-Term Government Fund
--------------------------------------------------------------------------------
Assets:
Investments at market (cost $238,833,566) ..................... $236,819,370
Receivable for securities sold ................................ 11,123,984
Dividends and interest receivable ............................. 3,084,941
Subscriptions receivable ...................................... 936,506
Other assets .................................................. 149
------------
Total assets .................................................. 251,964,950
------------
Liabilities:
Payable for securities purchased .............................. 7,137,493
Liquidations payable .......................................... 443,970
Other accounts payable and accrued expenses ................... 291,183
------------
Total liabilities ............................................. 7,872,646
------------
Total Net Assets .............................................. $244,092,304
============
See accompanying notes
8
<PAGE>
Statement of Operations
<TABLE>
<CAPTION>
Six Months Ended June 30, 2000 (Unaudited) Delaware Limited-Term Government Fund
----------------------------------------------------------------------------------------------------------------
<S> <C>
Investment Income:
Interest ................................................................................ $9,895,353
----------
Expenses:
Management fees ......................................................................... 654,017
Dividend disbursing and transfer agent fees and expenses ................................ 336,567
Distribution expense .................................................................... 271,713
Accounting and administration ........................................................... 81,733
Custodian fees .......................................................................... 51,521
Reports and statements to shareholders .................................................. 47,389
Registration fees ....................................................................... 29,583
Professional fees ....................................................................... 17,350
Trustee's fees .......................................................................... 8,451
Taxes (other than taxes on income) ...................................................... 8,281
Other ................................................................................... 5,284 1,511,889
-------
Less expenses paid indirectly ........................................................... (13,546)
----------
Total expenses .......................................................................... 1,498,343
----------
Net Investment Income ................................................................... 8,397,010
----------
Net Realized and Unrealized Gain (Loss) on Investments:
Net realized loss on:
Investments ........................................................................... (5,301,053)
Futures contracts ..................................................................... (429,735)
Options written ....................................................................... (288,899)
----------
Net realized loss (6,019,687)
Net change in unrealized appreciation/depreciation of investments and futures contracts . 3,535,457
----------
Net Realized and Unrealized Loss on Investments ......................................... (2,484,230)
----------
Net Increase in Net Assets Resulting from Operations .................................... $5,912,780
==========
</TABLE>
See accompanying notes
9
<PAGE>
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
Delaware Limited-Term Government Fund
-------------------------------------------------------------------------------------------------------------------------------
Six Months Year
Ended Ended
6/30/00 12/31/99
(Unaudited)
<S> <C> <C>
Increase (Decrease) in Net Assets from Operations:
Net investment income ....................................................................... $ 8,397,010 $ 19,755,626
Net realized loss on investments, futures contracts and options written ..................... (6,019,687) (6,090,167)
Net change in unrealized appreciation/depreciation of investments and futures contracts ..... 3,535,457 (10,466,154)
---------------------------------
Net increase in net assets resulting from operations ........................................ 5,912,780 3,199,305
---------------------------------
Distributions to Shareholders from:
Net investment income:
A Class ................................................................................... (7,792,466) (17,911,570)
B Class ................................................................................... (290,874) (743,784)
C Class ................................................................................... (177,777) (340,211)
Institutional Class ....................................................................... (136,731) (791,764)
---------------------------------
(8,397,848) (19,787,329)
---------------------------------
Capital Share Transactions:
Proceeds from shares sold:
A Class ................................................................................... 19,741,809 122,671,414
B Class ................................................................................... 1,696,124 7,484,917
C Class ................................................................................... 5,471,087 12,877,720
Institutional Class ....................................................................... 848,641 5,331,913
Net asset value of shares issued upon reinvestment of dividends from net investment income:
A Class ................................................................................... 5,461,722 12,310,557
B Class ................................................................................... 180,945 500,770
C Class ................................................................................... 157,021 299,210
Institutional Class ....................................................................... 137,551 792,517
---------------------------------
33,694,900 162,269,018
---------------------------------
Cost of shares repurchased:
A Class ................................................................................... (61,690,413) (174,726,114)
B Class ................................................................................... (5,270,253) (8,694,266)
C Class ................................................................................... (5,259,821) (11,144,509)
Institutional Class ....................................................................... (1,241,505) (22,133,639)
---------------------------------
(73,461,992) (216,698,528)
---------------------------------
Decrease in net assets derived from capital share transactions .............................. (39,767,092) (54,429,510)
---------------------------------
Net Decrease in Net Assets .................................................................. (42,252,160) (71,017,534)
Net Assets:
Beginning of period ......................................................................... 286,344,464 357,361,998
---------------------------------
End of period ...............................................................................$244,092,304 $286,344,464
=================================
</TABLE>
See accompanying notes
10
<PAGE>
Financial Highlights
<TABLE>
<CAPTION>
Selected data for each share of the Fund outstanding
throughout each period were as follows: Delaware Limited-Term Government Fund A Class
---------------------------------------------------------------------------------------------------------------------------------
Six Months
Ended Year Ended
6/30/00(1) 12/31/99 12/31/98 12/31/97 12/31/96 12/31/95
(Unaudited)
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period ..................... $8.270 $8.700 $8.620 $8.770 $9.050 $8.990
Income (loss) from investment operations:
Net investment income ................................... 0.264 0.519 0.540 0.601 0.600 0.699
Net realized and unrealized gain (loss) on investments .. (0.070) (0.429) 0.079 (0.150) (0.280) 0.060
-------------------------------------------------------------------
Total from investment operations ........................ 0.194 0.090 0.619 0.451 0.320 0.759
-------------------------------------------------------------------
Less dividends:
Dividends from net investment income .................... (0.264) (0.520) (0.539) (0.601) (0.600) (0.699)
-------------------------------------------------------------------
Total dividends ......................................... (0.264) (0.520) (0.539) (0.601) (0.600) (0.699)
-------------------------------------------------------------------
Net asset value, end of period ........................... $8.200 $8.270 $8.700 $8.620 $8.770 $9.050
===================================================================
Total return(2) .......................................... 2.39% 1.07% 7.46% 5.23% 3.69% 8.71%
Ratios and supplemental data:
Net assets, end of period (000 omitted) ................. $224,017 $262,776 $317,329 $355,079 $464,649 $653,451
Ratio of expenses to average net assets ................. 1.10% 1.00% 1.01% 0.98% 0.93% 0.96%
Ratio of net investment income to average net assets .... 6.46% 6.12% 6.32% 6.85% 6.80% 7.71%
Portfolio turnover ...................................... 286% 175% 69% 79% 83% 73%
</TABLE>
-----------------
(1) Ratios have been annualized and total return has not been annualized.
(2) Total investment return is based on the change in net asset value of a share
during the period and assumes reinvestment of distributions at net asset
value and does not reflect the impact of a sales charge.
See accompanying notes
11
<PAGE>
Financial Highlights (continued)
<TABLE>
<CAPTION>
Selected data for each share of the Fund outstanding
throughout each period were as follows: Delaware Limited-Term Government Fund B Class
-----------------------------------------------------------------------------------------------------------------------------------
Six Months
Ended Year Ended
6/30/00(1) 12/31/99 12/31/98 12/31/97 12/31/96 12/31/95
(Unaudited)
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period ........................ $8.270 $8.700 $8.620 $8.770 $9.050 $8.990
Income (loss) from investment operations:
Net investment income ...................................... 0.229 0.447 0.467 0.522 0.524 0.622
Net realized and unrealized gain (loss) on investments ..... (0.070) (0.429) 0.079 (0.150) (0.280) 0.060
--------------------------------------------------------------------
Total from investment operations ........................... 0.159 0.018 0.546 0.372 0.244 0.682
--------------------------------------------------------------------
Less dividends:
Dividends from net investment income ....................... (0.229) (0.448) (0.466) (0.522) (0.524) (0.622)
--------------------------------------------------------------------
Total dividends ............................................ (0.229) (0.448) (0.466) (0.522) (0.524) (0.622)
--------------------------------------------------------------------
Net asset value, end of period .............................. $8.200 $8.270 $8.700 $8.620 $8.770 $9.050
====================================================================
Total return(2) ............................................. 1.96% 0.22% 6.55% 4.35% 2.81% 7.80%
Ratios and supplemental data:
Net assets, end of period (000 omitted) .................... $8,986 $12,483 $13,900 $12,119 $12,959 $12,313
Ratio of expenses to average net assets .................... 1.95% 1.85% 1.86% 1.83% 1.78% 1.81%
Ratio of net investment income to average net assets ....... 5.61% 5.27% 5.47% 5.98% 5.91% 6.86%
Portfolio turnover ......................................... 286% 175% 69% 79% 83% 73%
</TABLE>
--------------
(1) Ratios have been annualized and total return has not been annualized.
(2) Total investment return is based on the change in net asset value of a share
during the period and assumes reinvestment of distributions at net asset
value and does not reflect the impact of a sales charge.
See accompanying notes
12
<PAGE>
Financial Highlights (continued)
Selected data for each share of the Fund outstanding
throughout each period were as follows:
<TABLE>
<CAPTION>
Delaware Limited-Term Government Fund C Class
-----------------------------------------------------------------------------------------------------------------------------------
Period
Six Months 11/28/95(2)
Ended Year Ended to
6/30/00(1) 12/31/99 12/31/98 12/31/97 12/31/96 12/31/95
(Unaudited)
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period ........................ $8.270 $8.700 $8.620 $8.770 $9.050 $9.010
Income (loss) from investment operations:
Net investment income ...................................... 0.229 0.447 0.467 0.524 0.524 0.051
Net realized and unrealized gain (loss) on investments ..... (0.070) (0.431) 0.079 (0.152) (0.280) 0.040
--------------------------------------------------------------------
Total from investment operations ........................... 0.159 0.016 0.546 0.372 0.244 0.091
--------------------------------------------------------------------
Less dividends:
Dividends from net investment income ....................... (0.229) (0.446) (0.466) (0.522) (0.524) (0.051)
--------------------------------------------------------------------
Total dividends ............................................ (0.229) (0.446) (0.466) (0.522) (0.524) (0.051)
--------------------------------------------------------------------
Net asset value, end of period .............................. $8.200 $8.270 $8.700 $8.620 $8.770 $9.050
====================================================================
Total return(3) ............................................. 1.96% 0.20% 6.56% 4.34% 2.81% (2)
Ratios and supplemental data:
Net assets, end of period (000 omitted) .................... $6,934 $6,638 $4,932 $3,580 $3,090 $33
Ratio of expenses to average net assets .................... 1.95% 1.85% 1.86% 1.83% 1.78% (2)
Ratio of net investment income to average net assets ....... 5.61% 5.27% 5.47% 5.98% 5.78% (2)
Portfolio turnover ......................................... 286% 175% 69% 79% 83% (2)
</TABLE>
----------------
(1) Ratios have been annualized and total return has not been annualized.
(2) Date of initial public offering; the ratios of expenses and net investment
income to average net assets, portfolio turnover and total return have been
omitted as management believes that such ratios and return for the
relatively short period are not meaningful.
(3) 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
13
<PAGE>
Financial Highlights (continued)
Selected data for each share of the Fund outstanding
throughout each period were as follows:
<TABLE>
<CAPTION>
Delaware Limited-Term Government Fund Institutional Class
-----------------------------------------------------------------------------------------------------------------------------------
Six Months
Ended Year Ended
6/30/00(1) 12/31/99 12/31/98 12/31/97 12/31/96 12/31/95
(Unaudited)
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period ...................... $8.270 $8.700 $8.620 $8.770 $9.050 $8.990
Income (loss) from investment operations:
Net investment income .................................... 0.270 0.531 0.553 0.605 0.613 0.712
Net realized and unrealized gain (loss) on investments ... (0.071) (0.428) 0.079 (0.150) (0.280) 0.060
--------------------------------------------------------------------
Total from investment operations ......................... 0.199 0.103 0.632 0.455 0.333 0.772
--------------------------------------------------------------------
Less dividends:
Dividends from net investment income ..................... (0.269) (0.533) (0.552) (0.605) (0.613) (0.712)
--------------------------------------------------------------------
Total dividends .......................................... (0.269) (0.533) (0.552) (0.605) (0.613) (0.712)
--------------------------------------------------------------------
Net asset value, end of period ............................ $8.200 $8.270 $8.700 $8.620 $8.770 $9.050
====================================================================
Total return(2) ........................................... 2.46% 1.22% 7.62% 5.39% 3.84% 8.87%
Ratios and supplemental data:
Net assets, end of period (000 omitted) .................. $4,155 $4,448 $21,201 $32,902 $30,349 $37,460
Ratio of expenses to average net assets .................. 0.95% 0.85% 0.86% 0.83% 0.78% 0.81%
Ratio of net investment income to average net assets ..... 6.61% 6.27% 6.47% 6.98% 6.92% 7.86%
Portfolio turnover ....................................... 286% 175% 69% 79% 83% 73%
</TABLE>
------------
(1) Ratios have been annualized and total return has not been annualized.
(2) Total investment return is based on the change in net asset value of a share
during the period and assumes reinvestment of distributions at net asset
value.
See accompanying notes
14
<PAGE>
Notes to Financial Statements
June 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
Delaware Group Limited-Term Government Funds (the "Company") is organized as a
Delaware business trust and offers one fund, the Delaware Limited-Term
Government Fund (the "Fund"). The Fund is a diversified open-end investment
company under the Investment Company Act of 1940, as amended. The Fund offers
four classes of shares. The A Class carries a maximum front-end sales charge of
2.75%. The B Class carries a back-end deferred sales charge. The C Class carries
a level load deferred sales charge and the Institutional Class has no sales
charge.
The investment objective of the Fund is to seek a high, stable level of current
income while attempting to minimize fluctuations in principal and provide
maximum liquidity.
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 - Long-term debt securities are valued by an independent
pricing service and such prices are believed to reflect the fair value of such
securities. Money market instruments having less than 60 days to maturity are
valued at amortized cost, which approximates market value. Other securities and
assets for which market quotations are not readily available are valued at fair
value as determined in good faith by or under the direction of the Fund's Board
of 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 respective collateral is held by the
custodian bank until the maturity of the respective repurchase agreements. Each
repurchase agreement is 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.
<PAGE>
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. Original issue discounts are
accredited to interest income over the lives of the respective securities. The
Fund declares dividends daily from net investment income and pays such dividends
monthly. Capital gain dividends, if any, are declared and paid 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 $3,025 for the six months ended June 30, 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 $10,521 for the six months ended June 30, 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 a rate of 0.50% on first $500 million of
net assets, 0.475% on the next $500 million, 0.45% on the next $1,500 million,
and 0.425% in excess of $2,500 million. At June 30, 2000, the Fund had a
liability for investment management fees and other expenses payable to DMC of
$133,130.
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 June 30, 2000, the Fund had no liability for such fees and other
expenses payable to DSC.
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 0.15% of the average daily net assets of A Class and 1.00% of the average
daily net assets of the B and C Classes.
For the six months ended June 30, 2000, DDLP earned $11,807 for commissions on
sales of the Fund's 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.
15
<PAGE>
Notes to Financial Statements (continued)
--------------------------------------------------------------------------------
3. Investments
During the six months ended June 30, 2000, the Fund made purchases of
$229,510,048 and sales of $311,725,817 of investment securities other than U.S.
government securities and temporary cash investments.
The cost of investments for federal income tax purposes approximates the cost
for book purposes. At June 30, 2000, the aggregate cost of securities for
federal income tax purposes was $238,833,566.
At June 30, 2000, net unrealized depreciation for federal income tax purposes
aggregate $2,014,196 of which $1,471,237 related to unrealized appreciation of
securities and $3,485,433 related to unrealized depreciation of securities.
For federal income tax purposes, the Fund had accumulated capital losses of
$145,976,013 at June 30, 2000, which may be carried forward and applied against
future capital gains. The capital loss carryforwards expire as follows: 2002 -
$84,612,370, 2003 - $29,779,768 - 2004 - $16,636,244, 2005 - $9,442,127 and 2007
- $5,505,504.
4. Capital Shares
Transactions in capital shares were as follows:
<TABLE>
<CAPTION>
Six Months Year
Ended Ended
6/30/00 12/31/99
<S> <C> <C>
Shares sold:
A Class .................................................................. 2,409,754 14,431,512
B Class .................................................................. 206,792 883,214
C Class .................................................................. 667,277 1,521,301
Institutional Class ...................................................... 103,450 627,622
Shares issued upon reinvestment of distributions from net investment income:
A Class .................................................................. 666,416 1,453,542
B Class .................................................................. 22,078 59,133
C Class .................................................................. 19,160 35,400
Institutional Class ...................................................... 16,785 92,791
----------------------
4,111,712 19,104,515
----------------------
Shares repurchased:
A Class .................................................................. (7,528,628) (20,583,300)
B Class .................................................................. (642,358) (1,030,538)
C Class .................................................................. (643,319) (1,320,789)
Institutional Class ...................................................... (151,264) (2,619,975)
----------------------
(8,965,569) (25,554,602)
----------------------
Net decrease .............................................................. (4,853,857) (6,450,087)
======================
</TABLE>
<PAGE>
5. Futures Contracts
The Fund invests in financial futures contracts for the purpose of hedging its
existing portfolio securities against fluctuations in fair value caused by
changes in prevailing market rates. Upon entering into a futures contract, the
Fund deposits cash or pledges U.S. government securities to a broker, equal to
the minimum "initial margin" requirements of the exchange on which the contract
is traded. (In some cases, due to the form of the futures agreement, initial
margin is held in a segregated account with the Fund's custodian, rather than
directly with the broker.) Subsequent payments are received from the broker or
paid to the broker (or added to the segregated account) each day, based on the
daily fluctuation in the market value of the contract. These receipts or
payments are known as "variation margins" and are recorded daily by the Fund as
unrealized gains or losses until the contracts are closed. When the contracts
are closed, the Fund records a realized gain or loss equal to the difference
between the value of the contract at the time it was opened and the value at the
time it was closed. Risk may arise upon entering into futures contracts from
potential imperfect correlation between the futures contracts and the underlying
securities and from the possibility of an illiquid secondary market for these
instruments.
Financial futures contracts open at June 30, 2000 were as follows:
Notional Unrealized
Contracts Cost Amount Expiration Date Gain/(Loss)
--------- ----------- --------------- -----------
270 U.S. 10-Year
Agency contracts $(24,769,688) September 2000 $(201,094)
210 U.S. 5-Year
Treasury note contracts (20,502,234) September 2000 (292,546)
180 U.S. 10-Year
Treasury note contracts 17,520,210 September 2000 206,978
16
<PAGE>
Notes to Financial Statements (continued)
--------------------------------------------------------------------------------
6. Options Written
During the period ended June 30, 2000, the Fund entered into options contracts
in accordance with its investment objective. When the Fund writes an option, the
premium received is recorded as a liability and is subsequently adjusted to the
current market value of the option written. Premiums received from writing
options that expire unexercised are treated by the Fund on expiration date as
realized gains from investments. The difference between the premium and the
amount paid on effecting a closing purchase transaction, including brokerage
commissions, is also treated as a realized gain, or if the premium is less than
the amount paid for the closing purchase, as a realized loss. If a call option
is exercised, the premium is added to the proceeds from the sale of the
underlying security in determining whether the Fund has realized a gain or loss.
If a put option is exercised, the premium reduces the cost basis of the
securities purchased by the Fund. The Fund as a writer of an option bears the
market risk of an unfavorable change in the price of the security underlying the
written option.
Transactions in options written during the six months ended June 30, 2000, were
as follows:
Number of Premiums
Contracts Received
------ -------
Options outstanding at December 31, 1999 - -
Options written 800 232,113
Options terminated in closing purchase
transaction (800) (232,113)
Options expired - -
Options exercised - -
------ -------
Options outstanding at June 30, 2000 - -
====== =======
7. Market and Credit Risk
The Fund invests in securities whose value is derived from an underlying pool of
mortgages or consumer loans. Some of these securities are collateralized
mortgage obligations (CMOs). CMOs are debt securities issued by U.S. government
agencies or by financial institutions and other mortgage lenders which are
collateralized by a pool of mortgages held under an indenture. The Fund invests
in private-backed CMOs only if they are 100% collateralized at the time of
issuance by securities or certificates issued or guaranteed by the U.S.
government, its agencies or instrumentalities. Prepayment of mortgages may
shorten the stated maturity of the obligations and can result in a loss of
premium, if any has been paid. Certain of these securities may be stripped
(securities, which provide only the principal or interest feature of the
underlying security). The yield to maturity on an interest-only CMO is extremely
sensitive not only to changes in prevailing interest rates, but also to the rate
of principal payments (including prepayments) on the related underlying mortgage
assets and a rapid rate of principal payments may have a material adverse affect
on the Fund's yield to maturity. If the underlying mortgage assets experience
greater than anticipated prepayments of principal, the Fund may fail to fully
recoup its initial investment in these securities even if the securities are
rated in the highest rating categories. The Fund will, from time to time, invest
in higher risk interest only CMOs. At June 30, 2000 the Fund had no holdings in
interest-only CMOs.
8. 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 June 30, 2000, or at any time during the period.
17
<PAGE>
DELAWARE(SM) For Shareholders
INVESTMENTS 1.800.523.1918
---------------------
Philadelphia o London 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 Limited-Term
Government Fund shareholders, but it may be used with prospective investors when
preceded or accompanied by a current Prospectus for Delaware Limited-Term
Government 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.
--------------------------------------------------------------------------------
BOARD OF TRUSTEES
Wayne A. Stork
Chairman
Delaware Investments Family of Funds
Philadelphia, PA
Walter P. Babich
Board Chairman
Citadel Constructors, Inc.
King of Prussia, PA
David K. Downes
President and Chief Executive Officer
Delaware Investments Family of Funds
Philadelphia, PA
John H. Durham
Private Investor
Horsham, PA
Anthony D. Knerr
Consultant, Anthony Knerr & Associates
New York, NY
Ann R. Leven
Former Treasurer, National Gallery of Art
Washington, DC
Thomas F. Madison
President and Chief Executive Officer
MLM Partners, Inc.
Minneapolis, MN
Charles E. Peck
Retired
Fredericksburg, VA
Janet L. Yeomans
Vice President and Treasurer
3M Corporation
St. Paul, MN
<PAGE>
AFFILIATED OFFICERS
Charles E. Haldeman, Jr.
President and Chief Executive Officer
Delaware Management Holdings, Inc.
Philadelphia, PA
Richard J. Flannery
Executive Vice President
and General Counsel
Delaware Investments Family of Funds
Philadelphia, PA
Bruce D. Barton
President and Chief Executive Officer
Delaware Distributors, L.P.
Philadelphia, PA
Investment Manager
Delaware Management Company
Philadelphia, PA
International Affiliate
Delaware International Advisers Ltd.
London, England
National Distributor
Delaware Distributors, L.P.
Philadelphia, PA
Shareholder Servicing, Dividend
Disbursing and Transfer Agent
Delaware Service Company, Inc.
Philadelphia, PA
1818 Market Street
Philadelphia, PA 19103-3682
(3505) Printed in the USA
SA-022 [6/00] PP 8/00 (J6154)
