<PAGE>
FOR GROWTH OF CAPITAL
DELCAP FUND
[Photo of illustration from Growth of Capital Brochure]
SERVICE AND GUIDANCE
PROFESSIONAL MANAGEMENT
GOALS
1998
SEMI-ANNUAL REPORT
DELAWARE
INVESTMENTS
- ---------------------
PHILADELPHIA * LONDON
<PAGE>
April 20, 1998
for growth
of capital
2
DEAR SHAREHOLDER:
DELCAP FUND PROVIDED A POSITIVE total return of +7.80% for the six months
ended March 31, 1998 (for A Class shares with distributions reinvested at net
asset value).
Your Fund benefited from the strong performance of growth stocks
during the first half of fiscal 1998. DelCap's portfolio also contained
positions in companies involved in mergers, and some of these stocks performed
well.
In two respects, however, the six months ended March 31 were
disappointing. DelCap's short-term returns were lower than the average of its
peers and less than the return of the Fund's unmanaged benchmark - the Russell
MidCap Growth Index.
DelCap's relative performance suffered from an underweighting in two
sectors - airlines and housing. These economically sensitive sectors provided
high returns this past winter amid falling oil prices and sharply declining
interest rates. Neither situation is likely to endure, in our opinion. We
believe other industry groups such as retailing and consumer services offer
greater long-term growth prospects, and we focused our stock selection efforts
in these areas.
When DelCap's fiscal year began last September, we believed stocks of
medium size, domestic-oriented companies had the potential to outperform
stocks of large multinational businesses. This trend did not materialize
because the earnings of larger companies remained firm in most sectors except
technology.
DELCAP FUND HELD POSITIONS IN COMPANIES INVOLVED IN MERGERS DURING THE FIRST
HALF OF FISCAL 1998, AND SOME OF THESE STOCKS PERFORMED WELL.
CUMULATIVE TOTAL RETURN
- -------------------------------------------------------------------------------
SIX MONTHS ENDED 10 YEARS ENDED
MARCH 31, 1998 MARCH 31, 1998
- -------------------------------------------------------------------------------
DelCap Fund A Class +7.80% +14.67%
- -------------------------------------------------------------------------------
Russell MidCap Growth Index +9.06% +12.95%
Lipper MidCap Fund Average (295 funds) +8.41% +16.59%
- -------------------------------------------------------------------------------
All performance quoted above is based on net asset value without effect of
sales charges. Performance information for all classes of DelCap Fund can be
found on page 8. Past performance does not guarantee future results. The
Russell MidCap Growth Index is an unmanaged benchmark of medium-size company
stocks that exhibit growth characteristics as determined by Frank Russell Co.
<PAGE>
for growth
of capital
3
Since autumn, your Fund's portfolio management team has, under the
leadership of Gerald S. Frey:
* Added more retail, consumer and financial stocks and paired back the Fund's
health care weighting.
* Reduced cash from 6% of net assets in September to 2% as of mid-year.
* Hired a new technology analyst, Jeffrey Hynoski, to provide the team with
additional expertise in this important sector. He had previously managed
technology investments at Bessemer Trust Co.
In measuring the effectiveness of DelCap Fund's strategy, we believe
investors should focus on long-term performance. In the chart on page 2, you
can see that the Fund outpaced its benchmark for the 10-year period ended
March 31, 1998. We believe the refinements we implemented a year ago when we
expanded DelCap's management team can help the Fund improve its competitive
position in the months ahead.
On the pages that follow, Mr. Frey reviews the Fund's performance
since September. For the balance of the year, we are encouraged by
consolidation trends in several industries.
Throughout its history, DelCap has employed a fundamental approach to
investing - emphasizing long-term earnings growth and careful
company-by-company analysis. This remains our strategy, one which we believe
can provide rewarding results for patient investors.
Sincerely,
/s/ Wayne A. Stork
- ------------------
WAYNE A. STORK
Chairman
/s/ Jeffrey J. Nick
- -------------------------------------
JEFFREY J. NICK
President and Chief Executive Officer
PORTFOLIO HIGHLIGHTS
- -------------------------------------------------------------------------------
SEPTEMBER 30, 1997 MARCH 31, 1998
- -------------------------------------------------------------------------------
MEDIAN MARKET CAPITALIZATION $1.8 billion $1.6 billion
NUMBER OF STOCKS 82 78
CASH POSITION* 6.4% 2.3%
AVERAGE STOCK
PRICE-TO-EARNINGS RATIO** 21.0x 35.5x
BETA*** 1.01 0.97
ANNUALIZED PORTFOLIO TURNOVER 105% 102%
* percent of net assets.
** based on a consensus of analysts' earnings estimates.
*** A measure of volatility relative to the S&P 500 Index for the past three
years ended March 31, 1998. A number less than 1.0 means a security has
fluctuated in price less than the Index. A number greater than 1.0 means
the security has fluctuated in price more than the Index.
<PAGE>
for growth
of capital
4
PERFORMANCE REVIEW
The U.S. stock market's performance during the first calendar quarter of 1998
was extraordinary. Even after three consecutive years of returns in excess of
20%, many large company stocks rose by double digit amounts.
This marked a turnaround from the fourth quarter of 1997, when stock
prices suffered because investors feared that economic turmoil along the
Pacific Rim would reduce U.S. corporate profits.
Not all stocks of medium size companies have done well since
September. Health care, energy and technology shares endured a tough period of
volatility as many companies warned of earnings disappointments in the wake of
increased competition and/or weakening product demand.
Falling interest rates, consumer optimism and record levels of
investor demand for equity mutual funds helped support U.S. stock prices. The
yield on 30-year U.S. Treasuries dropped to a record low of 5.73% this past
winter. By late March the Dow Jones Industrial Average had risen to nearly
9000 points even though many securities analysts believe corporate earnings
growth will weaken in calendar 1998.
We believe DelCap Fund's fundamental bottom-up approach to stock
selection can shine in this environment. In our view, the single biggest
market risk today is a shortfall in earnings. By focusing on companies with
solid earnings track records, we believe we can participate in the growth
potential of some of America's best companies while maintaining an attractive
risk profile relative to more aggressive stock portfolios.
STRATEGIC POSITIONING
A Consumer Shift
Headboards Rather Than Keyboards
Thanks to the strong stock market and job market of the mid-1990s, many
consumers have the means and the confidence to shop, and show a willingness to
enjoy the fruits of their labors. During the first half of 1998, consumer
spending patterns shifted from home computers to bedrooms and bathrooms.
FALLING INTEREST RATES, CONSUMER OPTIMISM AND RECORD LEVELS OF INVESTOR DEMAND
FOR EQUITY MUTUAL FUNDS HELPED SUPPORT U.S. STOCK PRICES.
RESULTS BY SECTOR
DELCAP FUND VS. RUSSELL MIDCAP GROWTH INDEX
- ------------------------------------------------------------------------------
SEPTEMBER 30, 1997 TO MARCH 31, 1998
RUSSELL MIDCAP
INDUSTRY GROUP DELCAP FUND GROWTH INDEX
- ------------------------------------------------------------------------------
Financials +20.7% +12.6%
Consumer Services +20.7% +20.9%
Consumer Goods* +11.4% +24.6%
Technology +10.6% -5.0%
Business Services +4.2% +20.3%
Energy +2.0% -9.8%
Health Care -2.2% +6.7%
For complete Fund performance, see page 8. Performance is based on prices of
stock holdings and index components and does not include expenses. The seven
sectors shown here represent 97% of DelCap Fund's equity holdings and 82% of
the unmanaged Russell MidCap Growth Index as of March 31, 1998. Past
performance is not a guarantee of future results.
*Non-durable products such as processed food and clothing.
<PAGE>
for growth
of capital
5
BED BATH & BEYOND illustrated this trend with its exceptional performance
since autumn. As of March 31, the Union, N.J.-based home furnishings chain's
stock was one of your Fund's five largest holdings, representing 3.0% of net
assets. In early April, Bed, Bath & Beyond reported higher-than-expected
earnings amid strong linen sales.
In late March, we liquidated our position in CompUSA, the personal
computer retailer. This had been one of our more successful retail stock
selections in fiscal 1997 and DelCap's largest holding at the start of fiscal
1998. We sold our position as computer demand slackened. More consumers are
buying computers priced at less than $1,000, and this has put pressure on
CompUSA's profit margins.
Beef Rather Than Vitamin B
Since autumn, we have doubled our position in OUTBACK STEAKHOUSE and sold
about two-thirds of our position in GENERAL NUTRITION CENTERS (GNC), a
retailer appealing to consumers who desire a healthy lifestyle.
American consumers are gradually becoming more health-conscious as our
nation's population ages. However, people have historically eaten more red
meat when times are good, and put aside diet concerns. Outback's earnings
outlook appears favorable, and we like the restaurant chain's geographic
diversification and strong management.
Athletic shoes are another health-oriented consumer product
out-of-favor with investors these days. We sold our position in REEBOK
INTERNATIONAL at a loss last fall. A worldwide sneaker glut has developed as
demand has sagged and too many factories have been built in Asia. In our
opinion, the industry's earnings do not appear poised for a rebound any time
soon.
YOUR FUND'S SECTOR WEIGHTINGS
- -----------------------------
MARCH 31, 1998
Insert Chart Here
Technology & Electronics 24.1%
Cash 3.8%
Energy/Utilities 5.0%
Transportation 2.7%
Retailing/Food/Apparel 12.4%
Media 4.3%
Health Care 8.3%
Leisure/Lodging 8.%
Credit Sensitive 15.0%
Environmental Services 2.0%
Telecommunications 6.4%
Other Consumer Products & Services 8.0%
<PAGE>
for growth
of capital
6
A WORD ABOUT MERGERS
Merger activity affected several of DelCap's large holdings during the winter
and early spring of 1998. In some cases, your Fund benefited from business
combinations.
These included:
* USA WASTE SERVICES' decision to acquire Waste Management, which will create
the world's largest environmental services company.
* Household International's agreement to buy BENEFICIAL CORP., a consumer
finance company whose shares we purchased last fall.
We believe it is worth noting that even though your Fund owned shares
in some companies that have grown large, DelCap's overall median market
capitalization as of March 31 was lower than it was September 30. This shows
we remain focused on medium size businesses. Our view is that we should "stick
with winners" so the Fund can maximize capital appreciation potential over the
long term.
Not every deal works out, and during the first half of fiscal 1998,
DelCap's returns were negatively affected by a failed merger between -
MEDPARTNERS and PHYCOR, two physician practice management firms. We jettisoned
our position in Medpartners, but kept Phycor, which we believe has superior
earnings potential.
Historically, your Fund's management viewed health care as an
important growth sector. In fact, at the start of fiscal 1998, your Fund was
overweighted in health care stocks relative to the Russell MidCap Growth
Index. We grew much less optimistic about health care this past winter as
industry competition intensified and the regulatory environment remained
confrontational. We reduced our allocation to this sector from 13.4% in
September to 8.3% in March, one of the lowest weightings the Fund has ever
had.
Technology
Radio Signals Success
Your Fund's position in telecommunications and media stocks as of March 31 was
nearly double what is was back in September. Strong earnings prospects helped
boost share prices for holdings such as CLEAR CHANNEL COMMUNICATIONS. Clear
Channel is a Texas-based radio and television station operator that's also
America's second largest outdoor advertising company. Booming advertising
revenues have lifted the company's earnings. In addition, Clear Channel also
has equity interests in what we believe are attractive radio networks in
Australia, New Zealand and the U.K.
We have modestly increased our weighting in technology stocks since
the start of fiscal 1998. We've also retained our position in one of our more
successful holdings, COMPUWARE, a software systems maker whose products help
information technology professionals develop applications to help run
businesses. (2.7% of net assets)
In our opinion, despite substantial spending by businesses on
technology in recent years, many companies are likely to devote even more
money to upgrade their computer systems as the year 2000 approaches.
DELCAP'S OVERALL MEDIAN MARKET CAPITALIZATION AS OF MARCH 31 WAS LOWER THAN IT
WAS SEPTEMBER 30. THIS SHOWS WE REMAIN FOCUSED ON MEDIUM SIZE BUSINESSES.
<PAGE>
for growth
of capital
7
OUTLOOK
For the balance of 1998, we believe the single most important factor affecting
DelCap's results will be our disciplined team working together toward a common
goal. In the coming months, we expect to:
* Emphasize consumer and non-semiconductor technology stocks, while
increasing our position in financial stocks as opportunities arise;
* Focus on companies that we believe will meet or exceed expected earnings;
* Maintain a portfolio of medium-size company stocks that have a projected
average overall earnings growth of 20%. This compares to an expected 4% to
8% earnings growth for large company stocks for 1998.
We believe expert knowledge of a particular industry's earnings
prospects and competitive environment can help us distinguish between
companies likely to do well over the long term and those that are simply
riding the current wave of U.S. prosperity.
With the nation's unemployment rate at lows not seen since the 1960s,
some industries are facing labor shortages that are reducing productivity.
Others, though profitable, are losing market share, have inadequate management
or weak financial resources. Sometimes, negative events occur that can test
the fortitude of a portfolio manager. For example, in mid April, your Fund's
short-term performance was affected by an unexpected and rapid drop in the
price of the Fund's largest holding - CENDANT CORP. Investors were spooked by
reports of accounting irregularities at Cendant that required a restatement of
earnings. We are carefully evaluating the company's long-term potential. In
the end, we believe intensive, bottom-up analysis can help us pick companies
that can grow at sustained rates, even in the face of unexpected challenges.
Historically, more than two-thirds of your Fund's net assets have been
invested in four broad sectors - technology, business services, consumer goods
and services. Selected financial stocks may also present attractive
opportunities as the sector continues to consolidate. Over the long haul, we
believe these industry groups are likely to remain the most promising growth
areas as your Fund prepares for a new millennium.
GERALD S. FREY
Vice President/
Senior Portfolio Manager
April 20, 1998
<TABLE>
<CAPTION>
TOP 10 HOLDINGS
- -------------------------------------------------------------------------------------------
MARCH 31, 1998
COMPANY INDUSTRY PERCENT OF NET ASSETS
- -------------------------------------------------------------------------------------------
<S> <C> <C>
Cendant Corp. Membership services, insurance 5.1%
Health Management Associates Acute care hospitals 3.4%
Outback Steakhouse Restaurants 3.2%
Bed, Bath & Beyond Home furnishings retailer 3.0%
Compuware Corp. Computer software systems 2.7%
BMC Software Business management software 2.3%
Staples Inc. Office supplies retailer 3.0%
Platinum Technology Software development 2.1%
Snyder Communications Corporate marketing 2.0%
Clear Channel Communications Radio, TV station operator 2.0%
- -------------------------------------------------------------------------------------------
Total 28.8%
</TABLE>
<PAGE>
for growth
of capital
8
Plot Points:
DelCap Fund A Class Russell Midcap Growth Index
Mar-88 $ 9,528 $10,000
Mar-89 $10,807 $11,013
Mar-90 $13,620 $11,992
Mar-91 $15,918 $13,283
Mar-92 $17,920 $15,804
Mar-93 $18,293 $16,281
Mar-94 $20,788 $18,028
Mar-95 $21,744 $19,341
Mar-96 $27,947 $25,408
Mar-97 $27,328 $23,930
Mar-98 $37,441 $33,782
Chart assumes $10,000 invested on March 31, 1988 and includes the effect of a
4.75% front-end sales charge and the reinvestment of all distributions.
Performance of other classes of DelCap Fund will vary due to differing charges
and expenses. Past performance does not guarantee future results.
<TABLE>
<CAPTION>
DELCAP FUND PERFORMANCE
- ----------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL RETURNS THROUGH MARCH 31, 1988
LIFETIME TEN YEARS FIVE YEARS ONE YEAR
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A (Est. 3/27/86)
Excluding Sales Charge +21.38% +14.67% +15.41% +37.06%
Including Sales Charge +20.89% +14.12% +14.29% +30.56%
- ----------------------------------------------------------------------------------------------------------
Class B (Est. 9/6/94)
Excluding Sales Charge +17.48% - - +36.12%
Including Sales Charge +16.92% - - +32.12%
- ----------------------------------------------------------------------------------------------------------
Class C (Est. 11/29/95)
Excluding Sales Charge +17.02% - - +36.15%
Including Sales Charge +17.02% - - +35.15%
</TABLE>
ALL PERFORMANCE INCLUDES REINVESTMENT OF DISTRIBUTIONS AND APPLICABLE SALES
CHARGES AS DESCRIBED BELOW. RETURN AND SHARE VALUE WILL FLUCTUATE SO THAT
SHARES WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. PAST
PERFORMANCE IS NOT A GUARANTEE OF FUTURE RESULTS. PERFORMANCE FOR CLASS B AND
C SHARES EXCLUDING SALES CHARGE ASSUMES EITHER CONTINGENT SALES CHARGES DID
NOT APPLY OR THE INVESTMENT WAS NOT REDEEMED.
CLASS A shares have a 4.75% maximum front-end sales charge and a 12b-1 fee.
CLASS B shares do not carry a front-end sales charge, but are subject to a
deferred sales charge if redeemed before the end of the sixth year and are
subject to a 1% annual distribution and service fee.
CLASS C shares have a 1% annual distribution and service fee. If shares are
redeemed within 12 months, a 1% contingent deferred sales charge applies.
Average annual total returns for the lifetime, ten-year, five-year and
one-year periods and six-month cumulative return for the period ended March
31, 1998 for DelCap Fund's Institutional Class, which is available without
sales or asset-based distribution charges only to certain eligible
institutional accounts, were +21.55%, +14.86%, +15.76%, +37.49% and +8.01%.
The Institutional Class was initially made available November 9, 1992;
performance prior to that date was adjusted to eliminate the effect of the
sales charge, but not Class A's asset-based distribution charge.
<PAGE>
for growth of capital 9
<TABLE>
<CAPTION>
FINANCIAL STATEMENTS
DELAWARE GROUP EQUITY FUNDS IV, INC. -
DELCAP FUND
STATEMENT OF NET ASSETS
MARCH 31, 1998 (UNAUDITED)
- ---------------------------------------------------------------------------------------------
NUMBER MARKET
OF SHARES VALUE
-----------------------------------------------
<S> <C> <C>
COMMON STOCK - 96.21%
Automobiles & Auto Parts - 0.10%
*Delco Remy International ........... 59,900 $ 909,731
------------
909,731
------------
BANKING, FINANCE & INSURANCE - 12.92%
AMBAC ............................... 283,700 16,578,719
*Bank United ........................ 140,900 7,018,582
Beneficial .......................... 125,600 15,613,650
Blanch(E.W.) Holdings ............... 400,600 15,373,025
*CIT Group .......................... 181,700 5,927,965
FINOVA Group ........................ 119,900 7,059,113
First American ...................... 90,300 4,413,413
*PartnerRe Limited .................. 132,400 6,504,150
PMI Group ........................... 134,600 10,868,950
Peoples Heritage Financial Group .... 161,700 7,781,813
*Security Capital Group Class B ..... 311,600 9,581,700
*Wells Fargo ........................ 26,300 8,711,875
------------
115,432,955
------------
BUILDINGS AND MATERIALS - 1.56%
*Fastenal ........................... 176,700 7,703,016
*J. Ray McDermott, S.A .............. 148,000 6,234,500
------------
13,937,516
------------
CABLE, MEDIA, & PUBLISHING - 4.30%
*Jacor Communications ............... 174,700 10,334,597
*Snyder Communications .............. 376,400 17,643,750
*World Color Press .................. 300,400 10,438,900
------------
38,417,247
------------
COMPUTERS & TECHNOLOGY - 21.59%
*12 Technologies .................... 165,100 10,829,528
*Acxiom ............................. 454,100 11,664,695
*Ascend Communications .............. 260,500 9,874,578
*BISYS Group ........................ 365,300 12,842,578
*BMC Software ....................... 244,000 20,457,875
*Compuware .......................... 488,000 24,079,750
*DST Systems ........................ 103,900 5,461,245
*Gateway 2000 ....................... 86,900 4,078,869
*Gemstar International Group Limited 428,500 12,828,220
*IDT ................................ 244,200 9,172,765
*J.D. Edwards ....................... 295,300 9,652,619
*Linear Technology .................. 181,800 12,538,519
*Network Associates ................. 108,600 7,201,538
*PLATINUM Technology ................ 723,700 18,680,506
*Sandisk ............................ 298,200 7,417,725
*Sterling Commerce .................. 349,112 16,190,069
------------
192,971,079
------------
CONSUMER PRODUCTS - 1.21%
*Henry Schein ....................... 259,900 10,777,728
------------
10,777,728
------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
FINANCIAL STATEMENTS
DELAWARE GROUP EQUITY FUNDS IV, INC. -
DELCAP FUND
STATEMENT OF NET ASSETS
MARCH 31, 1998 (UNAUDITED)
- ------------------------------------------------------------------------------------------------------
NUMBER MARKET
OF SHARES VALUE
--------------------------------------------------------
<S> <C> <C>
COMMON STOCK (Continued)
ELECTRONICS & ELECTRICAL - 2.49%
*Analog Devices .............................. 260,500 $ 8,661,625
*MMC Networks ................................ 295,200 6,070,050
*Xilinx ...................................... 200,700 7,519,978
-----------
22,251,653
-----------
ENERGY - 1.82%
*Global Industries Ltd. ...................... 640,200 12,984,056
*Santa Fe International ...................... 86,900 3,296,770
-----------
16,280,826
-----------
ENVIRONMENTAL SERVICES - 2.00%
Halliburton .................................. 86,900 4,361,295
*USA Waste Services .......................... 302,497 13,480,025
-----------
17,841,320
-----------
FOOD, BEVERAGE & TOBACCO - 1.29%
Cracker Barrell Old Country Store ............ 117,300 4,695,666
Food Lion .................................... 326,300 3,579,105
Food Lion Class A ............................ 78,200 840,650
*Foodmaker ................................... 126,450 2,449,969
-----------
11,565,390
-----------
HEALTHCARE & PHARMACEUTICALS - 8.29%
*Health Management Associates Class A 1,071,392 30,668,596
*HEALTHSOUTH ................................. 492,600 13,823,588
*Phycor ...................................... 610,200 13,748,569
*Quorum Health Group ......................... 471,300 15,862,191
-----------
74,102,944
-----------
HOTELS/DIVERSIFIED REITS - 0.56%
*Catellus Development ........................ 268,000 4,974,750
-----------
4,974,750
-----------
LEISURE, LODGING, & ENTERTAINMENT - 8.00%
*Interstate Hotels ........................... 124,300 4,459,265
*Outback Steakhouse .......................... 725,100 28,392,197
*Papa John's International ................... 447,100 17,073,631
*Prime Hospitality ........................... 492,300 9,599,850
*Royal Caribbean Cruises ..................... 171,100 11,987,695
-----------
71,512,638
-----------
REAL ESTATE - 0.44%
*Host Marriott ............................... 209,800 3,973,088
-----------
3,973,088
-----------
RETAIL - 10.21%
*Bed Bath & Beyond ........................... 577,900 26,709,816
*General Nutrition ........................... 182,900 7,258,845
*Kohl's ...................................... 170,600 13,946,560
*St. John Knits .............................. 144,100 6,808,725
*Staples ..................................... 1,175,306 27,178,940
*Viking Office Products ...................... 400,900 9,295,870
-----------
91,198,756
-----------
</TABLE>
- -------------------
Top 10 holdings, representing 28.8% of net assets, are in boldface.
<PAGE>
10 for growth of capital
<TABLE>
<CAPTION>
DELCAP FUND
STATEMENT OF NET ASSETS (CONTINUED)
- ---------------------------------------------------------------------------------------------------------
NUMBER MARKET
OF SHARES VALUE
--------------------------------------------------------
<S> <C> <C>
COMMON STOCK (Continued)
TELECOMMUNICATIONS - 6.43%
*CIENA ......................................... 313,600 $ 13,357,400
*Clear Channel Communications .................. 183,100 17,943,800
*Heftel Broadcasting ........................... 87,700 3,930,056
*Pacific Gateway Exchange ...................... 87,400 4,987,265
*RCN ........................................... 49,000 2,446,938
*Tellabs ....................................... 220,400 14,801,237
------------
57,466,696
------------
TEXTILES, APPAREL, & FURNITURE - 0.92%
*Jones Apparel Group ........................... 148,800 8,193,300
------------
8,193,300
------------
TRANSPORTATION & SHIPPING - 2.68%
Gatx ........................................... 101,500 7,917,000
*Knight Transportation ......................... 269,500 8,455,565
*Laidlaw ....................................... 479,400 7,610,475
------------
23,983,040
------------
UTILITIES - 3.22%
*AES ........................................... 548,480 28,760,920
------------
28,760,920
------------
MISCELLANEOUS - 6.18%
*Cendant ....................................... 1,146,697 45,437,874
*Cornell Corrections ........................... 172,600 4,228,700
*Personnel Group of America .................... 244,400 5,560,100
------------
55,226,674
------------
TOTAL COMMON STOCK (COST $573,160,879) ......... 859,778,251
------------
Principal
Amount
REPURCHASE AGREEMENTS - 2.31%
With J.P. Morgan Securities 5.85% 4/1/98
(dated 3/31/98, collateralized by
5,925,000 U.S. Treasury Notes 6.75% due
5/31/99, market value $6,132,021) ............ $ 6,005,000 $ 6,005,000
With PaineWebber Securities 5.875% 4/1/98
(dated 3/31/98, collateralized by
2,988,000 U.S. Treasury Notes 6.25%
due 6/30/98, market value $3,040,708
and 3,395,000 U.S. Treasury Notes 6.625%
due 6/30/01, market value $3,544,194) 6,450,000 6,450,000
With Prudential Securities 5.90% 4/1/98
(dated 3/31/98, collateralized by
8,668,000 U.S. Treasury Bills due
1/7/99, market value $8,321,618) ............. 8,148,000 8,148,000
------------
TOTAL REPURCHASE AGREEMENTS
(cost $20,603,000) ........................... 20,603,000
------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
DELCAP FUND
STATEMENT OF NET ASSETS (CONTINUED)
- -------------------------------------------------------------------------------
MARKET
VALUE
- -------------------------------------------------------------------------------------------------------
<S> <C>
TOTAL MARKET VALUE OF SECURITIES OWNED - 98.52%
(COST $593,763,879) .................................................... $ 880,381,251
RECEIVABLES AND OTHER ASSETS
NET OF LIABILITIES - 1.48% ............................................. 13,223,591
-------------
NET ASSETS APPLICABLE TO 33,756,513 SHARES
($.01 PAR VALUE) OUTSTANDING - 100% .................................... $ 893,604,842
=============
NET ASSET VALUE - DELCAP FUND A CLASS
($749,586,556 / 28,379,369 SHARES) ..................................... $26.41
======
NET ASSET VALUE - DELCAP FUND B CLASS
($22,926,352 / 896,810 SHARES) ......................................... $25.56
======
NET ASSET VALUE - DELCAP FUND C CLASS
($3,770,779 / 145,672 SHARES) .......................................... $25.89
======
NET ASSET VALUE - DELCAP FUND
INSTITUTIONAL CLASS
($117,321,155 / 4,334,662 SHARES) ...................................... $27.07
======
- ----------------------
*Non-income producing security for period ended March 31, 1998.
COMPONENTS OF NET ASSETS AT MARCH 31, 1998:
Common Stock $.01 par value 1,000,000,000 shares
authorized to the Fund ................................................. $ 560,689,152
Accumulated net investment loss .......................................... (4,120,814)
Accumulated net realized gain on investments ............................. 50,419,132
Net unrealized appreciation of investments ............................... 286,617,372
-------------
Total Net Assets ......................................................... $ 893,604,842
=============
NET ASSET VALUE AND OFFERING PRICE PER SHARE -
A CLASS DELCAP FUND
Net Asset Value A Class (A) .............................................. $26.41
Sales Charge (4.75% of offering price or 5.00% of the amount
invested per share)(B) ................................................. 1.32
-------------
Offering Price ........................................................... $27.73
=============
</TABLE>
--------------
(A) Net asset value per share, as illustrated, is the estimated amount
which would be paid upon redemption or repurchase of shares
(B) See How to Purchase Shares in the current Prospectus for purchase of
$100,000 or more
See accompanying notes
<PAGE>
for growth of capital 11
<TABLE>
<CAPTION>
DELAWARE GROUP EQUITY FUNDS IV, INC. -
DELCAP FUND
STATEMENT OF OPERATIONS
SIX MONTHS ENDED MARCH 31, 1998 (UNAUDITED)
- -------------------------------------------------------------------------------------------------
<S> <C> <C>
INVESTMENT INCOME:
Interest ......................................... $ 1,214,511
Dividends ........................................ 682,339 $ 1,896,850
------------
EXPENSES:
Management fees .................................. 3,268,010
Distribution expense ............................. 1,218,775
Dividend disbursing and transfer agent fees
and expenses .................................... 922,414
Accounting and administration .................... 213,113
Reports and statements to shareholders ........... 158,100
Registration fees ................................ 58,823
Taxes (other than taxes on income) ............... 46,333
Professional fees ................................ 19,820
Custodian fees ................................... 16,038
Directors' fees .................................. 8,983
Other ............................................ 87,255
------------
6,017,664
------------
NET INVESTMENT LOSS .............................. (4,120,814)
------------
NET REALIZED AND UNREALIZED GAIN
ON INVESTMENTS:
Net realized gain from investment transactions ... 79,557,049
Net change in unrealized appreciation/depreciation
on investments .................................. (3,717,974)
------------
NET REALIZED AND UNREALIZED GAIN
ON INVESTMENTS: ................................ $ 75,839,075
------------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS ................................. $ 71,718,261
============
</TABLE>
See accompanying notes
<PAGE>
<TABLE>
<CAPTION>
DELAWARE GROUP EQUITY FUNDS IV, INC. -
DELCAP FUND
STATEMENTS OF CHANGES IN NET ASSETS
- -------------------------------------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED
3/31/98 9/30/97
(UNAUDITED)
-----------------------------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS:
Net investment loss .............................. $ (4,120,814) $ (8,012,958)
Net realized gain on investments ................. 79,557,049 153,187,709
Net change in unrealized appreciation/
depreciation .................................... (3,717,974) (50,356,803)
--------------- ---------------
Net increase in net assets
resulting from operations........................ 71,718,261 94,817,948
--------------- ---------------
DISTRIBUTION TO SHAREHOLDERS FROM:
Net realized gain from security transactions:
Delcap Fund A Class ............................. (147,989,882) (106,881,303)
Delcap Fund B Class ............................. (4,236,577) (1,868,016)
Delcap Fund C Class ............................. (643,676) (238,607)
Delcap Fund Institutional Class ................. (23,312,883) (20,595,496)
--------------- ---------------
(176,183,018) (129,583,422)
--------------- ---------------
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold:
Delcap Fund A Class ............................. 758,633,347 759,827,594
Delcap Fund B Class ............................. 3,303,133 10,072,759
Delcap Fund C Class ............................. 818,636 2,677,952
Delcap Fund Institutional Class ................. 8,383,016 38,682,667
Net asset value of shares issued upon reinvestment
of distributions from net realized gain
on security transactions:
Delcap Fund A Class ............................. 133,444,115 95,973,989
Delcap Fund B Class ............................. 4,037,431 1,828,325
Delcap Fund C Class ............................. 631,878 228,718
Delcap Fund Institutional Class ................. 23,312,883 20,595,496
--------------- ---------------
932,564,439 929,887,500
--------------- ---------------
Cost of shares repurchased:
Delcap Fund A Class ............................. (826,771,260) (981,336,159)
Delcap Fund B Class ............................. (2,463,240) (4,776,048)
Delcap Fund C Class ............................. (681,960) (1,649,304)
Delcap Fund Institutional Class ................. (30,195,766) (98,374,823)
--------------- ---------------
(860,112,226) (1,086,136,332)
--------------- ---------------
Increase (decrease) in net assets derived from
capital share transactions ...................... 72,452,213 (156,248,834)
--------------- ---------------
NET DECREASE IN NET ASSETS ....................... (32,012,545) (191,014,308)
NET ASSETS:
Beginning of period .............................. 925,617,386 1,116,631,694
--------------- ---------------
End of period .................................... $ 893,604,842 $ 925,617,386
=============== ===============
</TABLE>
See accompanying notes
<PAGE>
12 for growth of capital
DELAWARE GROUP EQUITY FUNDS IV, INC. - DELCAP FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Selected data for each share of the Fund outstanding throughout each
period were as follows:
<TABLE>
<CAPTION>
DELCAP FUND A CLASS
----------------------------------------------------------------------------------
SIX MONTHS YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
3/31/98(1) 9/30/97 9/30/96 9/30/95 9/30/94 9/30/93
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period ........ $ 30.450 $ 30.740 $ 28.870 $ 25.570 $ 26.080 $ 20.730
Income from investment operations:
Net investment income (loss) ............ (0.126)(2) (0.234)(2) (0.208)(2) (0.166)(2) (0.218) (0.125)
Net realized and unrealized
gain on investments ............... 1.956 3.534 5.618 5.296 0.528 5.475
-------- -------- -------- -------- -------- ----------
Total from investment operations ........ 1.830 3.300 5.410 5.130 0.310 5.350
-------- -------- -------- -------- -------- ----------
Less distributions:
Distributions from net realized gain on
investments transactions ............... (5.870) (3.590) (3.540) (1.830) (0.820) none
-------- -------- -------- -------- -------- ----------
Total distributions (5.870) (3.590) (3.540) (1.830) (0.820) none
-------- -------- -------- -------- -------- ----------
Net asset value, end of period .............. $ 26.410 $ 30.450 $ 30.740 $ 28.87 $ 25.570 $ 26.080
======== ======== ======== ======== ======== ==========
Total return(3) ............................. 7.80% 12.44% 21.09% 22.04% 1.17% 25.81%
Ratios and supplemental data:
Net assets, end of period (000 omitted) . $749,587 $770,207 $923,248 $888,571 $890,787 $1,057,358
Ratio of expenses to average net assets . 1.40% 1.36% 1.35% 1.37% 1.35% 1.30%
Ratio of net investment loss to
average net assets .............. (0.97%) (0.86%) (0.74%) (0.67%) (0.68%) (0.43%)
Portfolio turnover ...................... 102% 105% 72% 51% 34% 51%
Average commission rate paid(4) ......... 0.0600 $ 0.0599 $ 0.0600 N/A N/A N/A
</TABLE>
- -------------
(1) Ratios have been annualized and total return has not been annualized.
(2) The average shares outstanding method has been applied for per share
information.
(3) Does not include maximum sales charge of 4.75% nor the 1% limited
contingent deferred sales charge that would apply in the event of certain
redemptions within 12 months of purchase of A Class shares.
(4) Computed by dividing the total amount of commissions paid by the total
number of shares purchased and sold during the period for which there was a
commission charged.
See accompanying notes
<PAGE>
for growth of capital 13
FINANCIAL HIGHLIGHTS (CONTINUED)
- ------------------------------------------------------------------------------
Selected data for each share of the Fund outstanding throughout each
period were as follows:
<TABLE>
<CAPTION>
DELCAP FUND B CLASS DELCAP FUND C CLASS
---------------------------------------------------- --------------------------------
SIX MONTHS YEAR YEAR YEAR PERIOD SIX MONTHS YEAR PERIOD
ENDED ENDED ENDED ENDED 9/06/94(2) ENDED ENDED 11/29/95(2)
3/31/98(1) 9/30/97 9/30/96 9/30/95 TO 9/30/94 3/31/98(1) 9/30/97 TO 9/30/96
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period ... $29.750 $30.300 $28.680 $25.560 $25.180 $30.050 $30.570 $28.880
Income from investment operations:
Net investment income (loss) ....... (0.212)(3) (0.418)(3) (0.400)(3) (0.340)(3) (0.008) (0.213)(3)(0.421)(3) (0.359)(3)
Net realized and unrealized gain
on investments ............. 1.892 3.458 5.560 5.290 0.388 1.923 3.491 5.589
------- ------- ------- ------- ------- ------- ------- -------
Total from investment operations ... 1.680 3.040 5.160 4.950 0.380 1.710 3.070 5.230
------- ------- ------- ------- ------- ------- ------- -------
Less distributions:
Distributions from net realized gain
on investments transactions ....... (5.870) (3.590) (3.540) (1.830) none (5.870) (3.590) (3.540)
------- ------- ------- ------- ------- ------- ------- -------
Total distributions ................ (5.870) (3.590) (3.540) (1.830) none (5.870) (3.590) (3.540)
------- ------- ------- ------- ------- ------- ------- -------
Net asset value, end of period ......... $25.560 $29.750 $30.300 $28.680 $25.560 $25.890 $30.050 $30.570
======= ======= ======= ======= ======= ======= ======= =======
Total return(4) ........................ 7.43% 11.64% 20.27% 21.34% 1.51% 7.47% 11.64% 20.38%
Ratios and supplemental data:
Net assets, end of period
(000 omitted) ................ $22,926 $20,706 $13,239 $ 2,710 $ 287 $ 3,771 $ 3,385 $1,947
Ratio of expenses to
average net assets ................. 2.10% 2.06% 2.05% 2.07% 2.05% 2.10% 2.06% 2.05%
Ratio of net investment
loss to average net assets ......... (1.67%) (1.56%) (1.44%) (1.37%) (1.38%) (1.67%) (1.56%) (1.44%)
Portfolio turnover ................. 102% 105% 72% 51% 34% 102% 105% 72%
Average commission rate paid5 ...... 0.0600 $0.0599 $0.0600 N/A N/A 0.0600 $0.0599 $0.0600
</TABLE>
----------------
(1) Ratios have been annualized and total return has not been annualized.
(2) Date of initial public offering; ratios have been annualized and total
return has not been annualized.
(3) The average shares outstanding method has been applied for per share
information.
(4) Does not include contigent deferred sales charge which varies from 1%-4%
for Delcap Fund B Class and 1% for Delcap Fund C Class depending upon
the holding period.
(5) Computed by dividing the total amount of commissions paid by the total
number of shares purchased and sold during the period for which there
was a commission charged.
See accompanying notes
<PAGE>
14 for growth of capital
FINANCIAL HIGHLIGHTS (CONTINUED)
- ------------------------------------------------------------------------------
Selected data for each share of the Fund outstanding throughout each
period were as follows:
<TABLE>
<CAPTION>
DELCAP FUND INSTITUTIONAL CLASS
-------------------------------------------------------------------------------------
SIX MONTHS YEAR YEAR YEAR YEAR PERIOD
ENDED ENDED ENDED ENDED ENDED 11/9/92(2)
3/31/98(1) 9/30/97 9/30/96 9/30/95 9/30/94 TO 9/30/93
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period ........ $31.010 $31.160 $29.130 $25.710 $26.140 $22.000
Income from investment operations:
Net investment income (loss) ............ (0.089)(3) (0.152)(3) (0.123)(3) (0.091)(3) (0.080) (0.027)
Net realized and unrealized gain on
investments ............................ 2.019 3.592 5.693 5.341 0.470 4.167
------- ------- ------- ------ ------- ------
Total from investment operations ........ 1.930 3.440 5.570 5.250 0.390 4.140
------- ------- ------- ------ ------- ------
Less distributions:
Distributions from net realized gain
on investments transactions ............ (5.870) (3.590) (3.540) (1.830) (0.820) none
------- ------- ------- ------ ------- ------
Total distributions ..................... (5.870) (3.590) (3.540) (1.830) (0.820) none
------- ------- ------- ------ ------- ------
Net asset value, end of period .............. $27.070 $31.010 $31.160 $29.130 $25.710 $26.140
======= ======= ======= ======= ======= =======
Total return ................................ 8.01% 12.75% 21.44% 22.45% 1.48% 21.31%
Ratios and supplemental data:
Net assets, end of period (000 omitted) . $117,321 $131,319 $178,197 $129,378 $110,126 $85,588
Ratio of expenses to average net assets . 1.10% 1.06% 1.05% 1.07% 1.05% 1.02%
Ratio of net investment loss to
average net assets ..................... (0.67%) (0.56%) (0.44%) (0.37%) (0.38%) (0.15%)
Portfolio turnover ...................... 102% 105% 72% 51% 34% 51%
Average commission rate paid(4) ......... 0.0600 $0.0599 $0.0600 N/A N/A N/A
</TABLE>
----------------
(1) Ratios have been annualized and total return has not been annualized.
(2) Date of initial public offering; ratios have been annualized and total
return has not been annualized.
(3) The average shares outstanding method has been applied for per share
information.
(4) Computed by dividing the total amount of commissions paid by the total
number of shares purchased and sold during the period for which there
was a commission charged.
See accompanying notes
DELAWARE GROUP EQUITY FUNDS IV, INC. -
DELCAP FUND NOTES TO FINANCIAL STATEMENTS
MARCH 31, 1998 (UNAUDITED)
- --------------------------------------------------------------------------------
Delaware Group Equity Funds IV, Inc. - DelCap Fund, (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 Maryland
Corporation and offers four classes of shares. The DelCap Fund A Class carries
a front-end sales charge of 4.75%. The DelCap Fund B Class carries a back-end
sales charge. The DelCap Fund C Class carries a level load deferred sales
charge and DelCap Fund Institutional Class has no sales charge. The Fund's
objective is to seek long-term capital growth by investing in common stocks
and securities convertible into common stocks of companies that have a
demonstrated history of growth and have the potential to support continued
growth.
<PAGE>
1. SIGNIFICANT ACCOUNTING POLICIES
The following accounting policies are in accordance with generally accepted
accounting principles and are consistently followed by the Fund.
SECURITY VALUATION - Securities listed on an exchange are valued at the last
quoted sales price as of the close of the NYSE on the valuation date.
Securities not traded or securities not listed on an exchange are valued at
the mean of the last quoted bid and asked prices. Money market instruments
having less than 60 days to maturity are valued at amortized cost which
approximates market value. Other securities and assets for which market
quotations are not readily available are valued at fair value as determined in
good faith by or under the direction of the Fund's Board of Directors.
FEDERAL INCOME TAXES - 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 generally
accepted accounting principles.
<PAGE>
for growth of capital 15
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
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 Group of Funds. The aggregate daily balance
of the pooled cash account is invested in repurchase agreements secured by
obligations of the U.S. government. The respective collateral is held by the
Fund's custodian bank until the maturity of the respective repurchase
agreements. Each repurchase agreement is at least 100% collateralized.
However, in the event of default or bankruptcy by the counterparty to the
agreement, realization of the collateral may be subject to legal proceedings.
OTHER - Expenses common to all Funds within the Delaware Group of Funds are
allocated amongst the funds on the basis of average net assets. Security
transactions are recorded on the date the securities are purchased or sold
(trade date). Costs used in calculating realized gains and losses on the sale
of investment securities are those of the specific securities sold. Dividend
income is recorded on the ex-dividend date and interest income is recorded on
the accrual basis. The Fund declares and pays dividends from net investment
income and capital gains annually.
Certain Fund expenses are paid through "soft dollar" arrangements with
brokers. The amount of these expenses is less than 0.01% of the Fund's average
daily net assets.
USE OF ESTIMATES - The preparation of financial statements in conformity with
generally accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities at
the date of the financial statements and the reported amounts of revenues and
expenses during the reporting period. Actual results could differ from those
estimates.
2. INVESTMENT MANAGEMENT AND OTHER TRANSACTIONS WITH AFFILIATES
In accordance with the terms of the Investment Management Agreement, the Fund
pays Delaware Management Company, Inc. (DMC), the Investment Manager of the
Fund, an annual fee which is calculated daily at the rate of 0.75% of the net
assets of the Fund less the fees paid to the unaffiliated directors. For the
six months ended March 31, 1998, the Fund had a liability for Investment
Management fees and other expenses payable to DMC for $144,043.
The Fund has engaged Delaware Service Company, Inc. (DSC), an affiliate of
DMC, to provide dividend disbursing, transfer agent and accounting services
for the Fund. For the six months ended March 31, 1998, the Fund expensed
$922,414 for dividend disbursing and transfer agent services and $171,906 for
accounting services. At March 31, 1998, the Fund had a liability for such fees
and other expenses payable to DSC for $20,819.
Pursuant to the Distribution Agreement, the Fund pays Delaware Distributors,
L.P. (DDLP), the Distributor and an affiliate of DMC, an annual fee not to
exceed 0.30% of the average daily net assets of the A Class and 1.00% of the
average daily net assets of the B and C Class.
For the six months ended March 31, 1998, DDLP earned $60,519 for commissions
on sales of the Fund A Class shares.
<PAGE>
Certain officers of DMC, DSC and DDLP are officers, directors and/or employees
of the Fund. These officers, directors and employees are paid no compensation
by the Fund.
3. INVESTMENTS
During the six months ended March 31, 1998, the Fund made purchases of
$427,758,304 and sales of $540,330,769 of investment securities other than
U.S. government securities and temporary cash investments.
At March 31, 1998, the aggregate cost of securities for federal income tax
purposes was $594,150,904.
At March 31, 1998, unrealized appreciation for federal income tax purposes
aggregated $286,230,347 of which $294,253,601 related to unrealized
appreciation of securities and $8,023,254 related to unrealized depreciation
of securities.
4. CAPITAL STOCK
Transactions in capital stock were as follows:
SIX MONTHS YEAR
ENDED ENDED
3/31/98 9/30/97
Shares sold:
DelCap Fund A Class ................... 29,400,164 27,964,673
DelCap Fund B Class ................... 127,806 372,656
DelCap Fund C Class ................... 31,833 100,557
DelCap Fund Institutional Class ....... 313,557 1,403,623
Shares issued upon reinvestment of
distributions from net realized gains from
security transactions:
DelCap Fund A Class ................... 5,520,210 3,610,768
DelCap Fund B Class ................... 172,245 69,997
DelCap Fund C Class ................... 26,628 8,670
DelCap Fund Institutional Class ....... 942,315 762,796
----------- -----------
36,534,758 34,293,760
----------- -----------
Shares repurchased:
DelCap Fund A Class ................... (31,835,738) (36,317,715)
DelCap Fund B Class ................... (99,256) (183,534)
DelCap Fund C Class ................... (25,432) (60,285)
DelCap Fund Institutional Class ....... (1,155,373) (3,651,898)
----------- -----------
(33,115,799) (40,213,432)
----------- -----------
Net Increase (Decrease) ................... 3,418,959 (5,919,672)
=========== ===========
5. LINES OF CREDIT
The Fund has a committed line of credit for $41.4 million. No amount was
outstanding at March 31, 1998, or at any time during the period.
<PAGE>
THIS SEMI-ANNUAL REPORT IS FOR THE INFORMATION OF DELCAP FUND SHAREHOLDERS,
BUT IT MAY BE USED WITH prospective investors when preceded or accompanied by
a current Prospectus for Delcap fund, which sets forth details about charges,
expenses, investment objectives and operating policies of the Fund. You should
read the prospectus carefully before you invest. Summary investment results
are documented in the Fund's current Statement of Additional Information. The
figures in this report represent past performance 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.
- --------------------------------------------------------------------------------
INVESTMENT MANAGER
Delaware Management Company, Inc.
Philadelphia
NATIONAL DISTRIBUTOR
Delaware Distributors, L.P.
Philadelphia
SHAREHOLDER SERVICING,
DIVIDEND DISBURSING
AND TRANSFER AGENT
Delaware Service Company, Inc.
Philadelphia
1818 Market Street
Philadelphia, PA 19103-3682
[Photo of Globes]
FOR SHAREHOLDERS
1.800.523.1918
FOR SECURITIES DEALERS
1.800.362.7500
FOR FINANCIAL INSTITUTIONS
REPRESENTATIVES ONLY
1.800.659.2265
DELAWARE
INVESTMENTS
- ------------------------
Philadelphia * London
www.delawarefunds.com
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. Shares of the Fund are not bank or credit union deposits.
Copy Rights Delaware Distributors, L.P.
Printed in the USA
on recycled paper
SA-016 [3/98] PP5/98
(683)
