<PAGE>
DELAWARE(SM)
INVESTMENTS
-----------
Delaware Growth Opportunities Fund
Growth of Capital
(ILLUSTRATION OMITTED)
2000 ANNUAL REPORT
<PAGE>
TABLE OF CONTENTS
-----------------
Letter to Shareholders 1
Portfolio Management
Review 3
Performance Summary 5
Financial Statements
Statement of Net Assets 6
Statement of Operations 8
Statements of Changes in
Net Assets 9
Financial Highlights 10
Notes to Financial
Statements 13
Report of Independent
Auditors 16
A TRADITION OF SOUND INVESTING SINCE 1929
-----------------------------------------
A Commitment To Our Investors
Experienced
[ ] Our seasoned investment professionals average more than 11 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 consistency has earned us the confidence of
discriminating institutional and individual investors to manage more than
$44 billion in assets as of September 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>
"...WE BELIEVE THE
OUTLOOK REMAINS BRIGHT
FOR MANY GROWING
U.S. COMPANIES."
Dear Shareholder
November 6, 2000
Recap of Events - The record-setting expansion of the U.S. economy has continued
in 2000, yet the U.S. equities markets have cooled considerably after strong
performance in recent years. Volatility in the markets has been running high,
and the broad market for U.S. equities is struggling toward its most
disappointing calendar year since 1994. After strong performance in late 1999
and early 2000, stock market indexes gave up significant ground in the spring
and have been volatile ever since. Major indexes such as the Dow Jones
Industrial Average, the S&P 500, and the Nasdaq Composite are in negative
territory year-to-date through September 30th.
There are several reasons for the volatility. Recently, disappointing earnings
announcements by one company have often been followed by brief, but sharp,
declines in whole sectors. The rising cost of oil has analysts concerned that
the pace of economic activity may slow, causing consumers to reduce spending,
especially for low-end retail products.
There is also concern on the part of investors and analysts over stock
valuations for companies that play roles in the New Economy. In recent months,
we've begun to see increased focus on corporate fundamentals such as earnings
and questions about the long-term sustainability of corporate growth. We believe
this trend is positive, as it has been helping to move stocks toward fair
values.
Delaware Growth Opportunities Fund, consistent with its investment strategy,
focuses on earnings as a major part of its stock selection process. Your Fund
invests in growth stocks -- companies that we believe offer significant
potential for future growth. When selecting stocks for Delaware Growth
Opportunities Fund, we look for companies that have a solid earnings track
record and new ways for sustaining and growing revenues.
Your Fund returned +77.02% during the fiscal year ended September 30, 2000
(Class A shares at net asset value with distributions reinvested), outperforming
both the Lipper Multi-Cap Growth Fund Average (+53.43%) and the benchmark
Total Return
For the Period Ended September 30, 2000 One Year
--------------------------------------------------------------------------------
Delaware Growth Opportunities Fund Class A +77.02%*
--------------------------------------------------------------------------------
Russell Midcap(R)Growth Index +60.37%
Lipper Multi-Cap Growth Fund Average +53.43% (531 funds)
--------------------------------------------------------------------------------
All performance shown above is at net asset value without the effect of sales
charges and assumes reinvestment of dividends and capital gains. Performance
information for all Fund classes can be found on page 5. The Russell Midcap
Growth Index is an unmanaged index that generally measures the performance of
those Russell Midcap companies with higher price-to-book ratios and higher
forecasted growth values. The Lipper category represents the average returns of
multi-capitalization mutual funds tracked by Lipper (Source: Lipper Inc.). You
cannot invest directly in an index. Past performance does not guarantee future
results.
*The total return for the fiscal year ended September 30, 2000 was unusually
high and cannot be sustained. Investors should be aware that such returns were
achieved during extraordinarily favorable market conditions.
1
<PAGE>
Russell Midcap Growth Index (+60.37%). The Fund's strong performance can be
attributed, in part, to its higher percentage of holdings, relative to its
benchmark, in a number of technology stocks that saw significant appreciation
during the year.
Generally, investors in growth stocks have fared quite well in recent years. A
strong U.S. economy, the growth of the Internet, and a general upswing in
old-fashioned entrepreneurism have all contributed to what has been a fertile
landscape for growth companies during the last half-decade. While we believe the
outlook remains bright for many growing U.S. companies, it is important to keep
in mind that the strong double-digit returns posted by your Fund and some of its
peers over the last year cannot be sustained. Sectors or investment styles that
are performing well today may struggle tomorrow. The strong performance achieved
by your Fund and other funds in the Lipper Multi-Cap Growth Funds class over the
past year, for example, often came during the first half of the period. During
this time, conditions in the market were considerably more favorable than they
have been in recent months, especially for technology stocks.
Market Outlook - One year ago, our outlook for the U.S. stock market was for a
return to normalcy -- that is, a resumption of stock returns that are closer to
averages of about 11% annually. We think that the events of the past 12 months
have set such a trend in motion. We also expect market volatility to continue,
but believe that your Fund is well-positioned to take advantage of growth
investment opportunities that arise in the market.
Since it is impossible to predict the short-term direction of the markets with
any real accuracy, we recommend that investors continue to rely on basic, sound
principles of investing. These include sticking to a regular investment plan,
diversifying your assets, and keeping a long-term outlook, as well as
considering your own risk tolerance and financial goals. For help in balancing
such considerations, contact your financial adviser.
On the pages that follow, Delaware Growth Opportunities Fund manager, Jerry
Frey, discusses your Fund's performance over the past year and provides his
outlook on the equities market. As always, we thank you for remaining committed
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
2
<PAGE>
Gerald S. Frey
Senior Portfolio Manager
November 6, 2000
"DURING THE PERIOD,
TECHNOLOGY WAS OUR
LARGEST SECTOR
WEIGHTING."
PORTFOLIO MANAGEMENT REVIEW
---------------------------
The Fund's Results
The fiscal year ending September 30, 2000 was one marked by extreme periods of
volatility. Growth-oriented indexes posted exceptional returns in the last
quarter of 1999, and this performance continued until mid-March of 2000. The
Federal Reserve Board continued its campaign of raising interest rates,
implementing three additional rate hikes during our fiscal year. As these hikes
began having their desired effect of slowing the economy to a more sustainable
rate, growth stocks experienced substantial declines during April and May 2000.
Returns see-sawed during the final four months of the fiscal year, with strong
increases in June and August followed by negative returns in July and September.
Mid-capitalization stocks were the best performing segment of the overall market
during this period, as many investors turned their focus away from the large-
capitalization stocks that had led the market during much of 1999. The Russell
Midcap Growth Index posted a 60.37% return for the one-year period ending
September 30, 2000, compared to the Russell 2000 Growth Index's 29.66% return
and the Russell 1000 Growth Index's 23.41% return. In this environment, our
mid-capitalization portfolio performed well on both an absolute and relative
basis, posting a return almost 17 percentage points higher than that of its
Russell Midcap Growth benchmark.
Portfolio Highlights
During the period, technology was our largest sector weighting, and this sector
contained many of the strongest contributors to the Fund's performance. Network
Appliance, Ciena, and PMC-Sierra were our three best performing stocks during
the year, with each delivering a return of more than 300%. Network Appliance
designs, manufactures, markets and supports high-performance network data
storage devices, and has reported three consecutive quarters with
greater-than-100% sales increases. Ciena designs and manufactures systems for
optical telecommunications networks. During the past year, the company has
announced several agreements to supply its systems to telecommunications
providers worldwide. PMC-Sierra designs, develops, markets, and supports
high-performance semiconductor networking solutions. Its stock has appreciated
during the year largely as the result of its reporting a doubling of earnings
for four consecutive quarters.
We remain attracted to business services, with Fiserv (up 75%) our biggest
contributor in this sector. Fiserv, a provider of data processing and
information management products and services to financial institutions,
experienced double-digit sales and earnings growth during the year as a result
of increased spending by financial institutions and increased trading volumes.
3
<PAGE>
Delaware Growth Opportunities Fund
Sector Allocation
As of September 30, 2000
Telecommunications 10.01%
Business Services 5.20%
Leisure, Lodging & Entertainment 4.54%
Healthcare & Pharmaceuticals 3.28%
Cable, Media & Publishing 3.16%
Consumer Products 2.81%
Computers and Technology 21.65%
Cash & Other Assets 10.01%
Retail 10.90%
Banking, Finance & Insurance 12.25%
Electronics & Electrical Equipment 16.19%
(Graphic Omitted)
Relative to the benchmark Russell Midcap Growth Index, we had a higher
percentage of consumer-oriented stocks. Kohl's (up 74%) and Bed Bath & Beyond
Inc. (up 40%) were our two best-performing stocks in this sector. Kohl's, a
department store chain with locations in the Midwest and Mid-Atlantic regions of
the U.S., continued to profitably open new stores while increasing sales in
their existing stores. Bed Bath & Beyond Inc. is a nationwide chain of
"superstores" selling predominantly better quality domestic merchandise and home
furnishings. Its stock has also risen based on its ability to consistently grow
sales both by opening new stores and increasing sales from existing stores.
SI Technologies and Checkfree Corporation were two of our poorest performing
stocks during the year, down 69% and 55%, respectively. SI Technologies is a
provider of applications enabling financial institutions to offer secure
Internet services and transactions, while Checkfree Corporation is a provider of
electronic commerce services, institutional portfolio management services, and
financial application software. Each company failed to deliver expected sales
and earnings growth during the year and we have sold both stocks as a result of
reduced growth expectations.
Outlook
Looking forward, it is our opinion that the market will continue its emphasis on
earnings growth, rewarding those companies that exhibit continued growth and
penalizing those that fall short of expectations. In this investment
environment, we will continue our focus on selecting companies that have strong
earnings outlooks and are the recognized leaders of their respective industries.
Top 10 Holdings
As of September 30, 2000
Company Percentage of Net Assets
--------------------------------------------------------------------------------
Extreme Networks 4.8%
--------------------------------------------------------------------------------
Veritas Software 4.5%
--------------------------------------------------------------------------------
Network Appliance 4.5%
--------------------------------------------------------------------------------
PMC-Sierra 4.1%
--------------------------------------------------------------------------------
Xilinx 3.4%
--------------------------------------------------------------------------------
Ciena 3.3%
--------------------------------------------------------------------------------
JDS Uniphase 3.2%
--------------------------------------------------------------------------------
Kohls 3.0%
--------------------------------------------------------------------------------
PerkinElmer 2.9%
--------------------------------------------------------------------------------
i2 Technologies 2.8%
--------------------------------------------------------------------------------
4
<PAGE>
FUND BASICS
-----------
Fund Objective
The Fund seeks long-term capital growth.
Total Fund Assets
As of September 30, 2000
$1.22 billion
Number of Holdings
56
Fund Start Date
March 27, 1986
Your Fund Manager
Gerald S. Frey leads the Delaware Investments growth team. He holds a BA in
Economics from Bloomsburg University and attended Wilkes College and New York
University. Prior to joining Delaware Investments in 1996, he was a Senior
Director with Morgan Grenfell Capital Management in New York, where he managed
technology-related stocks. Previously, he was a Vice President at Chase
Investors Management Corporation.
Nasdaq Symbols
Class A DFCIX
Class B DFBIX
Class C DEEVX
DELAWARE GROWTH OPPORTUNITIES FUND PERFORMANCE
Growth of a $10,000 Investment
September 30, 1990 through September 30, 2000
<TABLE>
<CAPTION>
Russell Midcap Growth Index Delaware Growth Opportunities Fund Class A
--------------------------- ------------------------------------------
<S> <C> <C>
Sep. 90
Sep. 91
Sep. 92
Sep. 93
Sep. 94 (TO COME)
Sep. 95
Sep. 96
Sep. 97
Sep. 98
Sep. 99
Sep. 00
</TABLE>
Chart assumes $10,000 invested on September 30, 1990 and includes the effect of
a 5.75% sales charge and the reinvestment of all dividends and capital gains.
Performance of other Fund classes will vary due to differing charges and
expenses. Returns plotted on the chart were as of the last day of each
successive month.
Average Annual Total Returns
Through September 30, 2000 Lifetime 10 Years Five Years One Year
--------------------------------------------------------------------------------
Class A (Est. 3/27/86)
Excluding Sales Charge +23.50% +20.75% +25.10% +77.02%
Including Sales Charge +23.00% +20.04% +23.63% +66.82%
--------------------------------------------------------------------------------
Class B (Est. 9/6/94)
Excluding Sales Charge +23.76% +24.24% +75.81%
Including Sales Charge +23.76% +24.07% +70.81%
--------------------------------------------------------------------------------
Class C (Est. 11/29/95)
Excluding Sales Charge +25.16% +75.77%
Including Sales Charge +25.16% +74.77%
--------------------------------------------------------------------------------
Returns reflect the reinvestment of distributions and any applicable sales
charges as noted below. Returns and share values will fluctuate so that shares,
when redeemed, may be worth more or less than their original cost. Class B and C
share 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.
Please keep in mind that high double-digit returns are very unusual and cannot
be sustained. Investors should be aware that such returns were achieved during
extraordinarily favorable market conditions. Current performance may be lower
than the performance shown. Please call 1-800-523-1918 or visit us at
www.delawareinvestments.com for current performance figures.
<PAGE>
Class A shares have a 5.75% maximum front-end sales charge and a 12b-1 fee.
Class B shares do not have a front-end sales charge, but are subject to a 1%
annual distribution and service fee. They are also subject to a contingent
deferred sales charge of up to 5% if redeemed before the end of the sixth year.
Class C shares have a 1% annual distribution and service fee. If redeemed within
12 months, a 1% contingent deferred sales charge applies.
The average annual total returns for the lifetime, 10-year, five-year and
one-year periods ended September 30, 2000 for Delaware Growth Opportunities
Fund's Institutional Class shares were +23.71%, +21.04%, +25.48% and +77.55%,
respectively. The Institutional Class shares were originally made available
without sales charges only to certain eligible institutional accounts on
November 9, 1992. Institutional Class performance prior to that date is based on
Class A performance and was adjusted to eliminate sales charges, but not the
asset-based distribution charge of Class A shares.
Nasdaq Symbol Institutional Class: DFDIX
5
<PAGE>
Statement of Net Assets
DELAWARE GROWTH OPPORTUNITIES FUND
----------------------------------
Number of Market
September 30, 2000 Shares Value
--------------------------------------------------------------------------------
Common Stock - 94.73%
Banking, Finance & Insurance - 12.25%
Ambac Financial .................................. 180,300 $ 13,206,975
Banknorth ........................................ 246,000 4,397,250
Capital One Financial ............................ 348,500 24,416,781
+*Compucredit ...................................... 352,600 19,778,656
Heller Financial ................................. 717,800 20,502,163
*John Hancock Financial Services .................. 328,100 8,817,688
+*Knight Trading ................................... 352,400 12,686,400
Lehman Brothers .................................. 57,300 8,466,075
Mellon Financial ................................. 269,900 12,516,613
Zions Bancorp .................................... 487,500 24,931,055
--------------
149,719,656
--------------
Basic Industry & Capital Goods - 2.91%
+PerkinElmer ...................................... 340,100 35,497,938
--------------
35,497,938
--------------
Business Services - 5.20%
Cintas ........................................... 360,700 15,712,994
*Convergys ........................................ 631,300 24,541,788
*Fiserv ........................................... 388,200 23,243,475
--------------
63,498,257
--------------
Cable, Media & Publishing - 3.16%
*Clear Channel Communications ..................... 360,600 20,373,900
*Hispanic Broadcasting ............................ 362,200 10,096,325
+*Lamar Advertising ................................ 214,700 8,131,763
--------------
38,601,988
--------------
Computers & Technology - 21.65%
*Aether Systems ................................... 175,300 18,494,150
*BroadVision ...................................... 398,700 10,191,769
*Extreme Networks ................................. 513,900 58,841,550
+*i2 Technologies .................................. 183,655 34,354,963
*Network Appliance ................................ 430,100 54,783,988
*Peregrine Systems ................................ 868,800 16,452,900
*SunGard Data Systems ............................. 369,800 15,832,063
+*Veritas Software ................................. 391,050 55,529,100
--------------
264,480,483
--------------
Consumer Products - 2.81%
+*Gemstar International ............................ 393,600 34,317,000
--------------
34,317,000
--------------
Electronics & Electrical Equipment - 16.19%
*Altera ........................................... 545,000 26,023,750
+*Globespan ........................................ 112,100 13,676,200
*JDS Uniphase ..................................... 416,520 39,439,238
*PMC - Sierra .................................... 231,300 49,787,325
Tektronix ........................................ 348,400 26,761,475
*Xilinx ........................................... 491,300 42,067,563
--------------
197,755,551
--------------
<PAGE>
Number of Market
Shares Value
--------------------------------------------------------------------------------
Common Stock (continued)
Energy - 0.83%
*Southern Energy .................................. 325,100 $ 10,200,013
--------------
10,200,013
--------------
Food, Beverage & Tobacco - 1.00%
*Starbucks ........................................ 306,400 12,275,150
--------------
12,275,150
--------------
Healthcare & Pharamceuticals - 3.28%
*Genentech ........................................ 87,100 16,173,381
*Invitrogen ....................................... 143,300 10,192,213
+*Sepracor ......................................... 61,200 7,508,475
*United Therapeutics Restricted ................... 81,000 6,252,861
--------------
40,126,930
--------------
Leisure, Lodging & Entertainment - 4.54%
*Brinker International ............................ 730,800 22,015,350
Darden Restaurants .............................. 360,000 7,492,500
*Jack in the Box .................................. 479,900 10,287,856
*Outback Steakhouse ............................... 424,900 11,525,413
+*Six Flags ........................................ 265,600 4,116,800
--------------
55,437,919
--------------
Retail - 10.90%
*Bed Bath & Beyond ................................ 1,197,200 29,200,456
*Best Buy ......................................... 258,600 16,453,425
Dollar General ................................... 289,100 4,842,425
*Dollar Tree ...................................... 511,900 20,763,944
Intimate Brands .................................. 895,000 16,725,313
*Kohl's ........................................... 634,300 36,591,181
*Staples .......................................... 609,800 8,651,538
--------------
133,228,282
--------------
Telecommunications - 10.01%
+*American Tower - Class A ........................ 606,200 22,846,163
+*CIENA ............................................ 327,000 40,159,688
*Finisar .......................................... 295,100 14,275,463
+*McLeodUSA Class A ................................ 1,333,600 19,087,150
+*Nextlink Communications .......................... 414,500 14,585,211
+*Oni Systems ...................................... 131,100 11,315,569
--------------
122,269,244
--------------
Total Common Stock
(cost $674,324,940) .............................. 1,157,408,411
--------------
6
<PAGE>
Statement of Net Assets (continued)
Principal Market
Delaware Growth Opportunities Fund Amount Value
--------------------------------------------------------------------------------
Repurchase Agreements - 7.86%
With Chase Manhattan 6.40% 10/2/00
(dated 9/29/00, collateralized by
$37,296,000 U.S. Treasury Notes
4.75% due 2/15/04, market value
$36,218,450). ............................ $35,294,000 $ 35,294,000
With J.P. Morgan Securities 6.40%
10/2/00 (dated 9/29/00, collateralized
by $14,446,000 U.S. Treasury Notes
6.625% due 4/30/02, market
value $14,954,349). ...................... 14,641,000 14,641,000
With PaineWebber 6.50% 10/2/00
(dated 9/29/00, collateralized by
$168,000 U.S. Treasury Notes 5.75%
due 10/31/00, market value
$171,541 and $7,320,000 U.S. Treasury
Notes 4.625% due 12/31/00, market
value $7,369,859 and $7,320,000
U.S. Treasury Notes 6.25% due
1/31/02, market value $7,401,912) ........ 14,641,000 14,641,000
With Prudential Securities 6.50%
10/2/00 (dated 9/29/00, collateralized
by $25,661,000 U.S. Treasury Notes
12.375% due 5/15/04, market
value $32,131,916). ...................... 31,478,000 31,478,000
--------------
Total Repurchase Agreements
(cost $96,054,000) ....................... 96,054,000
--------------
Total Market Value of
Securities - 102.59%
(cost $770,378,940) ...................... 1,253,462,411
Liabilities Net of Receivables and
Other Assets - (2.59%) ................... (31,681,400)
--------------
Net Assets Applicable to 30,602,791
Shares Outstanding - 100.00% ............ $1,221,781,011
==============
Net Asset Value - Delaware Growth
Opportunities Fund A Class
($1,086,471,729 / 27,114,185
Shares) .................................. $40.07
------
Net Asset Value - Delaware Growth
Opportunities Fund B Class
($79,335,128 / 2,114,504 Shares) ......... $37.52
------
Net Asset Value - Delaware Growth
Opportunities Fund C Class
($15,554,565 / 407,376 Shares) ........... $38.18
------
Net Asset Value - Delaware Growth
Opportunities Fund Institutional Class
($40,419,589 / 966,726 Shares) ........... $41.81
------
----------------------
+Security is partially or fully on loan.
*Non-income producing security for the year ended September 30, 2000.
<PAGE>
Components of Net Assets at September 30, 2000:
Shares of beneficial interest (unlimited
authorization - no par) .................... $480,473,063
Accumulated net realized gain
on investments ............................. 258,224,477
Net unrealized appreciation
of investments ............................. 483,083,471
---------------
Total net assets ............................. $1,221,781,011
===============
Net Asset Value and Offering Price
per Share - Delaware Growth
Opportunities Fund
Net asset value A Class (A) .................. $40.07
Sales charge (5.75% of offering or 6.09%
of the amount invested per share) (B) ...... 2.44
------
Offering price ............................... $42.51
------
----------------------
(A) Net asset value per share, as illustrated, is the estimated amount which
would be paid upon the redemption or repurchase of shares. (B) See the current
prospectus for purchases of $50,000 or more.
See accompanying notes
7
<PAGE>
Statement of Operations
<TABLE>
<CAPTION>
Year Ended September 30, 2000 Delaware Growth Opportunities Fund
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Investment Income:
Interest ........................................................................... $2,112,590
Dividends .......................................................................... 957,055
Other income ....................................................................... 527,331 $ 3,596,976
---------- ------------
Expenses:
Management fees .................................................................... 7,631,003
Distribution expenses .............................................................. 3,432,919
Dividend disbursing and transfer agent fees and expenses ........................... 1,572,916
Accounting and administration expenses ............................................. 442,325
Reports and statements to shareholders ............................................. 337,899
Registration fees .................................................................. 65,668
Professional fees .................................................................. 49,860
Taxes (other than taxes on income) ................................................. 46,372
Custodian fees ..................................................................... 39,466
Trustees' fees ..................................................................... 20,685
Other .............................................................................. 42,914 13,682,027
---------
Less expenses paid indirectly ...................................................... (28,920)
------------
Total expenses ..................................................................... 13,653,107
------------
Net Investment Loss ................................................................ (10,056,131)
------------
Net Realized and Unrealized Gain on Investments:
Net realized gain on investments ................................................... 285,934,911
Net change in unrealized appreciation/depreciation of investments .................. 256,890,771
------------
Net Realized and Unrealized Gain on Investments .................................... 542,825,682
------------
Net Increase in Net Assets Resulting from Operations ............................... $532,769,551
============
</TABLE>
See accompanying notes
8
<PAGE>
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
Delaware Growth Opportunities Fund
------------------------------------------------------------------------------------------------------------------------------------
Year Ended
9/30/00 9/30/99
<S> <C> <C>
Increase (Decrease) In Net Assets from Operations:
Net investment loss ............................................................... $ (10,056,131) $ (6,203,065)
Net realized gain on investments .................................................. 285,934,911 134,801,378
Net change in unrealized appreciation/depreciation of investments ................. 256,890,771 119,004,716
----------------------------------------
Net increase in net assets resulting from operations .............................. 532,769,551 247,603,029
----------------------------------------
Distributions to Shareholders from:
Net realized gain on investments:
A Class ......................................................................... (122,411,599) (97,254,365)
B Class ......................................................................... (5,904,479) (3,479,402)
C Class ......................................................................... (1,173,935) (685,495)
Institutional Class ............................................................. (3,984,869) (15,667,174)
----------------------------------------
(133,474,882) (117,086,436)
----------------------------------------
Capital Share Transactions:
Proceeds from shares sold:
A Class ......................................................................... 147,361,693 144,292,480
B Class ......................................................................... 38,612,116 8,914,905
C Class ......................................................................... 10,674,870 2,223,105
Institutional Class ............................................................. 19,674,932 20,024,079
Net asset value of shares issued upon reinvestment of distributions:
A Class ......................................................................... 112,379,223 88,851,156
B Class ......................................................................... 5,683,440 3,346,585
C Class ......................................................................... 1,146,846 677,133
Institutional Class ............................................................. 3,655,878 15,667,174
----------------------------------------
339,188,998 283,996,617
----------------------------------------
Cost of shares repurchased:
A Class ......................................................................... (188,506,820) (258,668,637)
B Class ......................................................................... (9,581,577) (7,313,282)
C Class ......................................................................... (5,898,225) (1,292,835)
Institutional Class ............................................................. (14,298,558) (129,635,573)
----------------------------------------
(218,285,180) (396,910,327)
----------------------------------------
Increase (decrease) in net assets derived from capital share transactions ......... 120,903,818 (112,913,710)
----------------------------------------
Net Increase In Net Assets 520,198,487 17,602,883
Net Assets:
Beginning of period ............................................................... 701,582,524 683,979,641
----------------------------------------
End of period ..................................................................... $1,221,781,011 $ 701,582,524
========================================
</TABLE>
See accompanying notes
9
<PAGE>
Financial Highlights
<TABLE>
<CAPTION>
Selected data for each share of the Fund outstanding
throughout each period were as follows: Delaware Growth Opportunities Fund A Class
------------------------------------------------------------------------------------------------------------------------------------
Year Ended
9/30/00 9/30/99 9/30/98 9/30/97 9/30/96
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period .......................... $26.350 $22.470 $30.450 $30.740 $28.870
Income (loss) from investment operations:
Net investment loss(1) ..................................... (0.324) (0.204) (0.237) (0.234) (0.208)
Net realized and unrealized gain (loss) on investments ..... 19.064 8.014 (1.873) 3.534 5.618
---------------------------------------------------------------
Total from investment operations ........................... 18.740 7.810 (2.110) 3.300 5.410
---------------------------------------------------------------
Less distributions:
Distributions from net realized gain on investments ........ (5.020) (3.930) (5.870) (3.590) (3.540)
---------------------------------------------------------------
Total distributions ........................................ (5.020) (3.930) (5.870) (3.590) (3.540)
---------------------------------------------------------------
Net asset value, end of period ................................ $40.070 $26.350 $22.470 $30.450 $30.740
===============================================================
Total return(2) ............................................... 77.02% 38.64% (8.28%) 12.44% 21.09%
Ratios and supplemental data:
Net assets, end of period (000 omitted) .................... $1,086,472 $649,052 $566,734 $770,207 $923,248
Ratio of expenses to average net assets .................... 1.25% 1.37% 1.40% 1.36% 1.35%
Ratio of net investment loss to average net assets ......... (0.91%) (0.83%) (0.92%) (0.86%) (0.74%)
Portfolio turnover ......................................... 123% 114% 115% 105% 72%
------------------------------------------------------------------------------------------------------------------------------------
Delaware Growth Opportunities Fund B Class
Year Ended
9/30/00 9/30/99 9/30/98 9/30/97 9/30/96
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $25.060 $21.680 $29.750 $30.300 $28.680
Income (loss) from investment operations
Net investment loss(1) ..................................... (0.545) (0.367) (0.408) (0.418) (0.400)
Net realized and unrealized gain (loss) on investments ..... 18.025 7.677 (1.792) 3.458 5.560
---------------------------------------------------------------
Total from investment operations ........................... 17.480 7.310 (2.200) 3.040 5.160
---------------------------------------------------------------
Less distributions:
Distributions from net realized gain on investments ........ (5.020) (3.930) (5.870) (3.590) (3.540)
---------------------------------------------------------------
Total distributions ........................................ (5.020) (3.930) (5.870) (3.590) (3.540)
---------------------------------------------------------------
Net asset value, end of period ................................ $37.520 $25.060 $21.680 $29.750 $30.300
===============================================================
Total return(2) ............................................... 75.81% 37.67% (8.92%) 11.64% 20.27%
Ratios and supplemental data:
Net assets, end of period (000 omitted) .................... $79,335 $26,941 $18,470 $20,706 $13,239
Ratio of expenses to average net assets .................... 1.95% 2.07% 2.10% 2.06% 2.05%
Ratio of net investment loss to average net assets ......... (1.61%) (1.53%) (1.62%) (1.56%) (1.44%)
Portfolio turnover ......................................... 123% 114% 115% 105% 72%
</TABLE>
----------------------
(1) The average shares outstanding method has been applied for per share
information.
(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
10
<PAGE>
Financial Highlights (continued)
<TABLE>
<CAPTION>
Selected data for each share of the Fund outstanding
throughout each period were as follows: Delaware Growth Opportunities Fund C Class
------------------------------------------------------------------------------------------------------------------------------------
Period
11/29/95(1)
Year Ended to
9/30/00 9/30/99 9/30/98 9/30/97 9/30/96
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period .............................. $25.440 $21.950 $30.050 $30.570 $28.880
Income (loss) from investment operations:
Net investment loss(2) ......................................... (0.552) (0.369) (0.411) (0.421) (0.359)
Net realized and unrealized gain (loss) on investments ......... 18.312 7.789 (1.819) 3.491 5.589
-----------------------------------------------------------
Total from investment operations ............................... 17.760 7.420 (2.230) 3.070 5.230
-----------------------------------------------------------
Less distributions:
Distributions from net realized gain on investments ............ (5.020) (3.930) (5.870) (3.590) (3.540)
-----------------------------------------------------------
Total distributions ............................................ (5.020) (3.930) (5.870) (3.590) (3.540)
-----------------------------------------------------------
Net asset value, end of period .................................... $38.180 $25.440 $21.950 $30.050 $30.570
===========================================================
Total return(3) ................................................... 75.77% 37.65% (8.89%) 11.64% 20.38%
Ratios and supplemental data:
Net assets, end of period (000 omitted) ........................ $15,555 $5,945 $3,576 $3,385 $1,947
Ratio of expenses to average net assets ........................ 1.95% 2.07% 2.10% 2.06% 2.05%
Ratio of net investment loss to average net assets ............. (1.61%) (1.53%) (1.62%) (1.56%) (1.44%)
Portfolio turnover ............................................. 123% 114% 115% 105% 72%
</TABLE>
----------------------
(1) Date of initial public offering; 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) 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 Growth Opportunities Fund Institutional Class
------------------------------------------------------------------------------------------------------------------------------------
Year Ended
9/30/00 9/30/99 9/30/98 9/30/97 9/30/96
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period .............................. $27.260 $23.070 $31.010 $31.160 $29.130
Income (loss) from investment operations:
Net investment loss(1) ......................................... (0.227) (0.131) (0.160) (0.152) (0.123)
Net realized and unrealized gain (loss) on investments ......... 19.797 8.251 (1.910) 3.592 5.693
------------------------------------------------------------
Total from investment operations ............................... 19.570 8.120 (2.070) 3.440 5.570
------------------------------------------------------------
Less distributions:
Distributions from net realized gain on investments ............ (5.020) (3.930) (5.870) (3.590) (3.540)
------------------------------------------------------------
Total distributions ............................................ (5.020) (3.930) (5.870) (3.590) (3.540)
------------------------------------------------------------
Net asset value, end of period .................................... $41.810 $27.260 $23.070 $31.010 $31.160
============================================================
Total return(2) ................................................... 77.55% 39.08% (7.99%) 12.75% 21.44%
Ratios and supplemental data:
Net assets, end of period (000 omitted) ........................ $40,419 $19,645 $95,200 $131,319 $178,197
Ratio of expenses to average net assets ........................ 0.95% 1.07% 1.10% 1.06% 1.05%
Ratio of net investment loss to average net assets ............. (0.61%) (0.53%) (0.62%) (0.56%) (0.44%)
Portfolio turnover ............................................. 123% 114% 115% 105% 72%
</TABLE>
----------------------
(1) The average shares outstanding method has been applied for per share
information.
(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
12
<PAGE>
Notes to Financial Statements
September 30, 2000
--------------------------------------------------------------------------------
Delaware Group Equity Funds IV (the "Trust") is organized as a Delaware business
trust and offers two funds: Delaware Growth Opportunities Fund (formerly known
as Delaware DelCap Fund), and Delaware Diversified Growth Fund. These financial
statements and related notes pertain to Delaware Growth Opportunities Fund (the
"Fund"). Delaware Growth Opportunities 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
5.75%. 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.
Delaware Growth Opportunities Fund seeks long-term capital growth.
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 - Securities listed on an exchange are valued at the last
quoted sales price as of the regular close of the New York Stock Exchange (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 Trust'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
Fund's 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
<PAGE>
management to make estimates and assumptions that affect the reported amounts of
assets and liabilities at the date of the financial statements and the reported
amounts of revenues and expenses during the reporting period. Actual results
could differ from those estimates.
Other - Expenses common to all funds within the Delaware Investments Family of
Funds are allocated amongst the funds on the basis of average net assets.
Security transactions are recorded on the date the securities are purchased or
sold (trade date). Costs used in calculating realized gains and losses on the
sale of investment securities are those of the specific securities sold.
Dividend income is recorded on the ex-dividend date and interest income is
recorded on the accrual basis. The Fund declares and pays dividends from net
investment income and capital gains, if any, annually.
Certain expenses of the Fund are paid through commission arrangements with
brokers. These transactions are done subject to best execution. The amount of
these expenses was approximately $24,457 for the year ended September 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 $4,463 for the year ended September 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 Fund's investment management agreement, the
Fund pays Delaware Management Company (DMC), the investment manager of the Fund,
an annual fee which is calculated daily at the rate of 0.75% on the first $500
million of average daily net assets of the Fund, 0.70% on the next $500 million,
0.65% on the next $1.5 billion and 0.60% on the average daily net assets in
excess $2.5 billion. At September 30, 2000, the Fund had a liability for
investment management fees payable to DMC of $177,441.
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 September 30, 2000, the Fund had a liability for such fees and
other expenses payable to DSC of $20,985.
Pursuant to a 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 Classes.
At September 30, 2000, the Fund had a liability for distribution fees and other
expenses payable to DMC and affiliates of $56,982.
13
<PAGE>
Notes to Financial Statements (continued)
2. Investment Management and Other Transactions with Affiliates (continued)
For the year ended September 30, 2000, DDLP earned $102,266 for commissions on
sales of the Fund A Class shares.
Certain officers of DMC, DSC and DDLP are officers, trustees and/or employees of
the Fund. These officers, trustees and employees are paid no compensation by the
Fund.
3. Investments
During the year ended September 30, 2000, the Fund made purchases of
$1,238,277,622 and sales of $1,296,243,133 of investment securities other than
U.S. government securities and temporary cash investments.
At September 30, 2000, the aggregate cost of securities for federal income tax
purposes was $775,284,078 and net unrealized appreciation (depreciation) for
federal income tax purposes aggregated $478,178,333 of which $508,650,800
related to unrealized appreciation of securities and $30,472,467 related to
unrealized depreciation of securities.
4. Capital Shares
Transactions in capital shares were as follows:
Year Ended
9/30/00 9/30/99
Shares sold:
A Class ......................................... 4,215,041 6,028,222
B Class ......................................... 1,124,104 377,577
C Class ......................................... 304,804 93,619
Institutional Class ............................. 521,545 810,624
Shares issued upon reinvestment of distributions:
A Class ......................................... 3,672,805 4,119,153
B Class ......................................... 197,273 162,175
C Class ......................................... 39,115 32,338
Institutional Class ............................. 114,528 703,826
---------- -----------
10,189,215 12,327,534
---------- -----------
Shares repurchased:
A Class ......................................... (5,406,894) (10,732,226)
B Class ......................................... (281,853) (316,808)
C Class ......................................... (170,243) (55,180)
Institutional Class ............................. (390,013) (4,920,826)
---------- -----------
(6,249,003) (16,025,040)
---------- -----------
Net increase (decrease) ........................... 3,940,212 (3,697,506)
========== ===========
<PAGE>
5. Lines of Credit
The Fund, along with certain other funds in the Delaware Investments Family of
Funds (the "Participants"), participate in a $375,400,000 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 one third of their net assets under the agreement. The Fund had no
amounts outstanding as of September 30, 2000, or at any time during the period.
6. Securities Lending
The Fund may participate, along with other funds in the Delaware Investments
Family of Funds, in a Security Lending Agreement ("Lending Agreement"). Security
Loans made pursuant to the Lending Agreement are required at all times to be
secured by U.S. Treasury obligations and/or cash collateral at least equal to
100% of the market value of the securities. Cash collateral received is invested
in fixed income securities, with a weighted average maturity not to exceed 90
days, rated in one of the top tiers by Standard & Poors Rating Group or Moody's
Investor Service, Inc. or repurchase agreements collateralized by such
securities. However, in the event of default or bankruptcy by the lending agent,
realization and/or retention of the collateral may be subject to legal
proceedings. In the event that the borrower fails to return loaned securities
and the collateral received is insufficient to cover the value of the loaned
securities and provided such collateral is not the result of investment losses,
the lending agent has agreed to pay the amount of the shortfall to the Fund or,
at the discretion of the lending agent, replace the loaned securities. The
market value of securities on loan and the related collateral received at
September 30, 2000 was $210,814,293 and $220,105,600 respectively. Net income
from securities lending was $527,331 and is included in other income on the
Statement of Operations.
14
<PAGE>
Notes to Financial Statements (continued)
7. Tax Information (unaudited)
The information set forth below is for the Fund's fiscal year as required by
federal laws. Shareholders, however, must report distributions on a calendar
year basis for income tax purposes, which may include distributions for portions
of two fiscal years of a fund. Accordingly, the information needed by
shareholders for income tax purposes will be sent to them in early 2001. Please
consult your tax advisor for proper treatment of this information.
For the fiscal year ended September 30, 2000, the Fund designates distributions
paid during the year as follows:
(A) (B)
Long-Term Ordinary (C)
Capital Gains Income Total (D)
Distributions Distributions Distributions Qualifying
(Tax Basis) (Tax Basis) (Tax Basis) Dividends(1)
------------- ------------- ------------- ------------
98% 2% 100% 4%
(A) and (B) are based on a percentage of the Fund's total distributions.
(D) is based on a percentage of ordinary income of the Fund.
----------------------
(1) Qualifying dividends represent dividends which qualify for the corporate
dividends received deduction.
15
<PAGE>
Report of Independent Auditors
--------------------------------------------------------------------------------
To the Shareholders and Board of Trustees
Delaware Group Equity Funds IV - Delaware Growth Opportunities Fund
We have audited the accompanying statement of net assets of Delaware Growth
Opportunities Fund (the "Fund") as of September 30, 2000, and the related
statement of operations for the year then ended, the statements of changes in
net assets for each of the two years in the period then ended, and the financial
highlights for each of the periods indicated therein. These financial statements
and financial highlights are the responsibility of the Fund's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with auditing standards generally accepted
in the United States. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements and financial highlights. Our procedures included
confirmation of securities owned as of September 30, 2000, by correspondence
with the custodian and brokers. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Delaware Growth Opportunities Fund at September 30, 2000, the results of its
operations for the year then ended, the changes in its net assets for each of
the two years in the period then ended, and its financial highlights for each of
the periods indicated therein, in conformity with accounting principles
generally accepted in the United States.
/s/ Ernst & Young LLP
Philadelphia, Pennsylvania
November 10, 2000
16
<PAGE>
DELAWARE INVESTMENTS FAMILY OF FUNDS
------------------------------------
More information on any fund offered by Delaware Investments can be found in
each fund's current prospectus. Prospectuses for all funds offered by Delaware
Investments are available from your financial adviser. Please read the
prospectus carefully before you invest or send money.
BUILDING BLOCKS
OF A DIVERSIFIED PORTFOLIO
--------------------------------------------------------------------------------
AGGRESSIVE GROWTH EQUITY FUNDS
--------------------------------------------
GROWTH EQUITY FUNDS
--------------------------------------------
TAX
TAXABLE EXEMPT INTERNATIONAL ASSET
MODERATE GROWTH BOND BOND AND GLOBAL ALLOCATION
EQUITY FUNDS FUNDS FUNDS FUNDS FUNDS
--------------------------------------------------------------------------------
STABILITY OF PRINCIPAL
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
<S> <C> <C>
[ ] Growth of Capital [ ] International and Global [ ] Tax-Exempt Income
o Technology and Innovation o Emerging Markets Fund o National High-Yield
Fund o New Pacific Fund Municipal Bond Fund
o Select Growth Fund o Overseas Equity Fund o Tax-Free USA Fund
o Trend Fund o International Equity Fund o Tax-Free Insured Fund
o Growth Opportunities Fund* o Global Equity Fund o Tax-Free USA
o Small Cap Value Fund o Global Bond Fund Intermediate Fund
o U.S. Growth Fund [ ] Current Income o State Tax-Free Funds**
o Tax-Efficient Equity Fund o Delchester Fund [ ] Stability of Principal
o Social Awareness Fund o High-Yield o Cash Reserve
[ ] Total Return Opportunities Fund o Tax-Free Money Fund
o Blue Chip Fund o Strategic Income Fund [ ] Asset Allocation
o Devon Fund o Corporate Bond Fund o Foundation Funds
o Growth and Income Fund o Extended Duration Growth Portfolio
o Decatur Equity Income Fund Bond Fund Balanced Portfolio
o REIT Fund o American Government Income Portfolio
o Balanced Fund Bond Fund
o U.S. Government
Securities Fund
o Limited-Term
Government Fund
</TABLE>
* Formerly known as DelCap Fund.
** Available for the following states: Arizona, California, Colorado, Florida,
Idaho, Iowa, Kansas, Minnesota, Missouri, Montana, North Dakota, New Jersey,
New Mexico, New York, Oregon, Pennsylvania and Wisconsin. Insured and
intermediate bond funds are available in selected states.
(C) Delaware Distributors, L.P.
<PAGE>
DELAWARE(SM)
INVESTMENTS
---------------------
Philadelphia o London
For Shareholders
1.800.523.1918
For Securities Dealers
1.800.362.7500
For Financial Institutions
Representatives Only
1.800.659.2265
www.delawareinvestments.com
This annual report is for the information of Delaware Growth Opportunities Fund
shareholders, but it may be used with prospective investors when preceded or
accompanied by a current prospectus for Delaware Growth Opportunities Fund and
the Delaware Investments Performance Update for the most recently completed
calendar quarter. The prospectus sets forth details about charges, expenses,
investment objectives and operating policies of the Fund. You should read the
prospectus carefully before you invest. The figures in this report represent
past results which are not a guarantee of future results. The return and
principal value of an investment in the Fund will fluctuate so that shares, when
redeemed, may be worth more or less than their original cost.
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
<S> <C> <C>
BOARD OF TRUSTEES Charles E. Peck Investment Manager
Retired Delaware Management Company
Wayne A. Stork Fredericksburg, VA Philadelphia, PA
Chairman
Delaware Investments Family of Funds Janet L. Yeomans International Affiliate
Philadelphia, PA Vice President and Treasurer Delaware International Advisers Ltd.
3M Corporation London, England
Walter P. Babich St. Paul, MN
Board Chairman National Distributor
Citadel Constructors, Inc. Delaware Distributors, L.P.
King of Prussia, PA AFFILIATED OFFICERS Philadelphia, PA
David K. Downes Charles E. Haldeman, Jr. Shareholder Servicing, Dividend
President and Chief Executive Officer President and Chief Executive Officer Disbursing and Transfer Agent
Delaware Investments Family of Funds Delaware Management Holdings, Inc. Delaware Service Company, Inc.
Philadelphia, PA Philadelphia, PA Philadelphia, PA
John H. Durham Richard J. Flannery 1818 Market Street
Private Investor Executive Vice President Philadelphia, PA 19103-3682
Horsham, PA and General Counsel
Delaware Investments Family of Funds
Anthony D. Knerr Philadelphia, PA
Consultant, Anthony Knerr & Associates
New York, NY Bruce D. Barton
President and Chief Executive Officer
Ann R. Leven Delaware Distributors, L.P.
Former Treasurer, National Gallery of Art Philadelphia, PA
Washington, DC
Thomas F. Madison
President and Chief Executive Officer
MLM Partners, Inc.
Minneapolis, MN
</TABLE>
(3971) Printed in the USA
AR-016 [09/00] PPL 11/00 (J6483)
