<PAGE>
DELAWARE GROUP
Value Fund
For Growth of Capital
1997
Semi-Annual
Report
professional management
service and guidance
goals
DELAWARE
GROUP
========
<PAGE>
- --------------------------------------------------------------------------------
JULY 3, 1997
Dear Shareholder:
Delaware Group's Value Fund provided sterling results during the first half
of fiscal 1997, a period of exceptional difficulty for the stocks of small
companies.
While many of Value Fund's peers were tarnished by market volatility,
your Fund provided a robust +16.60% total return for the six months ended May
31, 1997, (capital change plus income based on net asset value for A Class
shares). Your Fund's performance not only far outdistanced Value Fund's
benchmark - the unmanaged Russell 2000 Index - but larger stocks in the
unmanaged S&P 500 Index as well.
I am delighted to report Value Fund's disciplined investment strategy
showed its mettle during a period when stock prices dropped 10%, the largest
market decline in seven years. As you'll see on page 7, your Fund's share
price during the first half of 1997 was less volatile
than the overall stock market.
Value Fund was initially offered a decade ago, four months before the
largest short-term market setback in a generation - the October 1987 "crash."
Since that time, your Fund has seen many market trends. Nevertheless, we
remain faithful to selecting stocks of small companies that appear undervalued.
This discipline has enabled us to deliver superior long-term results.
The first half was also a time of transition for the Fund. On May 12,
Christopher S. Beck was named Value Fund's portfolio manager. He assumed
leadership of the Fund following the resignation of David C. Dalrymple in
March. During the interim, the Fund was managed by George H. Burwell, an
experienced portfolio manager who is responsible for three of Delaware
Group's equity funds.
Mr. Beck has 16 years of investment management experience, and was
most recently the small cap value fund manager at Pitcairn Trust Co. In the
pages that follow, Mr. Beck delineates our commitment to a highly disciplined
investment strategy, which we believe can be a more valuable wealth building
tool than picking stocks based on short-term considerations such as price
momentum.
Prudent stock selection based on fundamental research played a vital
role in Value Fund's success since November. The Fund
SINCE 1987, VALUE FUND HAS REMAINED FAITHFUL TO A STRATEGY OF
SELECTING STOCKS OF SMALL COMPANIES THAT APPEAR UNDERVALUED. THIS DISCIPLINE
HAS ENABLED US TO DELIVER SUPERIOR LONG-TERM RESULTS.
discipline
1 9 9 7 s e m i - a n n u a l r e p o r t
2
<PAGE>
TOTAL RETURN
- --------------------------------------------------------------------------------
AGGREGATE RETURN AVERAGE ANNUAL RETURN
- -------------------------------------------------------------------------------
SIX MONTHS ENDED FROM JUNE 24, 1987
May 31, 1997 May 31, 1997
Value Fund A Class +16.60% +15.68%
- -------------------------------------------------------------------------------
Russell 2000 Index +8.44% +10.79%
Wilshire Small Cap Value Index +10.80% +13.63%
Wilshire Small Cap Growth Index +5.47% +11.40%
- -------------------------------------------------------------------------------
Standard & Poor's 500 Index +13.15% +14.28%
Lipper Capital Appreciation Fund Average +5.11% +10.91%
VALUE FUND AND THE LIPPER CAPITAL APPRECIATION FUND AVERAGE PERFORMANCE IS
BASED ON NET ASSET VALUE WITHOUT EFFECT OF SALES CHARGES AND ASSUMES
REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS. THERE WERE 227 AND 58 FUNDS IN
THE LIPPER CAPITAL APPRECIATION AVERAGE FOR THE SIX-MONTH AND VALUE FUND
LIFETIME PERIODS SHOWN ABOVE. PERFORMANCE INFORMATION FOR ALL VALUE FUND
CLASSES CAN BE FOUND ON PAGE 8. PAST PERFORMANCE DOES NOT GUARANTEE FUTURE
RESULTS.
benefited by having relatively few stocks in the volatile, underperforming
technology and consumer services sectors. Strong positioning in capital goods
and financial stocks and real estate investment trusts helped your Fund outpace
its benchmark.
Inside, Mr. Beck reviews what contributed to the Fund's strong
relative returns and shares his outlook for the balance of fiscal 1997.
Generally, we are in a period of strong economic growth, characterized by low
inflation and healthy corporate profits.
One undercurrent to the market's ebullient results of the 1990s has
been the degree to which small cap stocks' performance has lagged that of
their larger brethren. This has left some investors wondering when this
sector of the market will take the lead or at least keep pace with
the S&P 500.
Let me offer a historical perspective. Twenty-five years ago I recall
it being fashionable on Wall Street to believe there was a Nifty Fifty -
50 large cap stocks whose prospects for growth seemed immune to economic
cycles. Such a view wasn't true in 1972, and I believe isn't
valid today.
Rather than time when the market's psychology will shift, I believe
one prudent way to prepare for the future is by having a small cap value fund
as an integral part of a well-diversified investment plan.
I believe Value Fund can play an important role in whatever asset
allocation strategy you develop with the help of your financial adviser. As
we mark Value Fund's 10th anniversary, I thank you for being among the Fund's
more than 15,000 shareholders.
Sincerely,
/s/ Wayne A. Stork
- ------------------
Wayne A. Stork
CHAIRMAN, PRESIDENT AND CHIEF EXECUTIVE OFFICER
1 9 9 7 s e m i - a n n u a l r e p o r t
3
<PAGE>
Introducing Your Fund's Portfolio Manager
Insert Photo of CHRISTOPHER S. BECK
CHRISTOPHER S. BECK began his investment career at Wilmington Trust Co. in
1981. Later, he was Director of Research at Cypress Capital Management Co. in
Wilmington, Del. and Chief Investment Officer of the University of Delaware
Endowment Fund. Prior to joining Delaware Group, he managed Pitcairn Trust
Co.'s small cap value fund, which had $130 million in assets. Mr. Beck holds
a bachelor's degree from the University of Delaware and an MBA from Lehigh
University.
Market Review
Fiscal 1997 has not been an easy time to be a small cap investor. Since last
fall, a fear of higher inflation has repeatedly disrupted the market. A low
U.S. unemployment rate and six years of economic expansion have investors
wondering how much the Federal Reserve Board might increase the cost of
borrowing to curtail consumer price increases.
In late March, the Fed raised the federal funds rate - the interest
rate banks charge each other for overnight loans - by 25 basis points (0.25%)
to 5.50%. Delaware shares the view of some economists that further increases
could follow by autumn.
A rising interest rate environment has generally been
a negative development for small cap stocks because smaller companies need to
borrow more
PORTFOLIO HIGHLIGHTS
- --------------------------------------------------------------------------------
NOVEMBER 30, 1996 MAY 31, 1997
- -------------------------------------------------------------------------------
Number of Stocks 88 83
Median Market Capitalization $484 million $591 million
Median Stock
Price-To-Earnings Ratio 12.5x 12.7x
Median Price-To-Book Ratio 174% 221%
Dividend Yield
(Before Fund Expenses) 1.70% 1.62%
Beta* 0.69 0.80
THE ABOVE YIELD REPRESENTS THE WEIGHTED AVERAGE DIVIDEND YIELD OF THE FUND'S
HOLDINGS EXCLUSIVE OF TRANSACTION COSTS. VALUE FUND DOES NOT PAY A REGULAR
DIVIDEND, BUT MAY DISTRIBUTE INCOME GENERATED BY THE FUND'S HOLDINGS, TYPICALLY
AT YEAR'S END. P/E BASED ON ANALYSTS' EARNINGS ESTIMATES FOR 1998 AS REPORTED
BY FIRST CALL.
*A MEASURE OF VOLATILITY RELATIVE TO THE S&P 500 INDEX FOR THE PAST THREE YEARS
ENDED MAY 31. A NUMBER LESS THAN 1.0 MEANS A SECURITY HAS FLUCTUATED LESS IN
PRICE THAN THE INDEX. A NUMBER MORE THAN 1.0 MEANS THE SECURITY HAS FLUCTUATED
MORE THAN THE INDEX.
1 9 9 7 s e m i - a n n u a l r e p o r t
4
<PAGE>
Insert Photo: Family at Beach
Q. WHAT'S THE DIFFERENCE BETWEEN SMALL GROWTH COMPANIES AND SMALL VALUE
COMPANIES?
A. Generally, a value stock sells at a discount relative to some financial
measure such as operating cash flow, profits, or book value. Earnings
expectations for a value company are more modest than expectations for its
industry or the overall stock market. A growth stock, by contrast, is one
whose price and profit expectations are generally higher than the market.
value
Value
capital to expand and remain competitive. In spite of this, your
Fund performed exceptionally well in the six months ended May 31.
I attribute this to the Fund's consistent investment disciplines.
HOW STOCKS ARE SELECTED
Selecting small cap value stocks is a bit like buying local brands of shampoo
or baby powder rather than, for example, the Johnson & Johnson brand. The
products are not nearly as well known, but if one carefully checks the
ingredients, a shopper may get a high quality product at a lower price.
Generally, the Fund invests in companies whose stocks are selling
near the low end of their historical valuations. To find these businesses,
I'm using research parameters that have been used throughout the Fund's
lifetime. These include:
* examining sales and earnings prospects relative to competitors; and,
* measuring value with yardsticks appropriate to each industry.
I personally tend to put primary emphasis on a company's operating
cash flow - the amount of money a company generates as revenue from operations
- - as well as free cash flow - excess funds remaining after capital expenses
- - and dividends, as measures of value. A company's free cash flow tells us
how much financial flexibility a business has to:
* expand internally;
* acquire other businesses;
* increase dividends;
* weather unexpected events;
* meet increased competition; and,
* adapt to higher interest rates.
One additional characteristic I seek in stocks I select for your
Fund's portfolio is liquidity. I look for stocks that have minimum daily
trading volume of 30,000 to 40,000 shares. In my opinion, such a level of
activity gives your Fund the flexibility to increase or decrease its position
without significantly disrupting the market.
As it did at the start of fiscal 1997, Value Fund's portfolio
contains many stocks whose price relative to the company's book value
1 9 9 7 s e m i - a n n u a l r e p o r t
5
<PAGE>
BROAD SECTOR DIVERSIFICATION
Value Fund vs. Russell 2000 Index
- --------------------------------------------------------------------------------
May 31, 1997
ALLOCATION
SHARE OF FUND'S CHANGE FROM SHARE OF
BROAD SECTOR NET ASSETS NOVEMBER 30, 1996 INDEX
- -------------------------------------------------------------------------------
Basic Industry 10.6% -3% 10.1%
Business Services 2.9 -1 4.2
Capital Goods 11.6 No change 5.8
Consumer Services 8.8 +2 13.0
Energy 7.1 -1 6.3
Financial Services 21.5 +5.3 17.2
Health Care 3.3 -1 9.2
Technology 6.3 -2 14.8
REITs and Real Estate 10.5 +1 8.8
Utilities 1.6 -2 3.2
- - that is, the company's net worth for accounting purposes - is much lower than
the price-to-book ratio of stocks in the S&P 500 Index.
Stocks in the Index traded at an average of nearly five times book
value as of May 31, but as you can see on page 4, companies in Value Fund's
portfolio trade at less than half that ratio. I believe this
difference is an indicator of price appreciation potential.
STRATEGIC POSITIONING
Since November, your Fund's position in financial stocks has increased
substantially. This occurred through a combination of market appreciation and a
few additions such as WESTAMERICA BANCORP, a community bank in California.
Before I began managing Value Fund, its weighting in small bank,
insurance and financial services stocks had risen above our benchmark, the
Russell 2000 Index. I anticipate this sector may continue to offer superior
capital appreciation potential.
During the first half of fiscal 1997, the number of different stocks in
the Fund's portfolio was reduced. Sales included PILLOWTEX CORP., whose
performance did not meet expectations. Overall, however, your Fund's turnover
rate of 57% was lower than in fiscal 1996. The Fund stuck with winners, and as
of May 31, I believe many of these companies appear to offer more capital
appreciation potential. In addition, Value Fund's performance benefited by
having relatively few stocks in the volatile and weak technology and consumer
services sectors.
I expect to continue to modestly increase our portfolio concentration
until we reach a target level of between 65 and 80 stocks, compared to 83 as
of May 31. This will allow us to more efficiently monitor our holdings while
maintaining a well-diversified small cap portfolio.
1 9 9 7 s e m i - a n n u a l r e p o r t
6
<PAGE>
VALUE FUND'S PERFORMANCE AMID SHORT-TERM MARKET VOLATILITY
Percentage Change in Net Asset Value
- --------------------------------------------------------------------------------
November 30, 1996, to May 31, 1997
S&P 500 Russell 2000
Value Fund Index Index
11/30/96 0% 0% 0%
12/6/96 1.12% -2.25% 0.41%
12/13/96 0.97% -3.66% 0.1 %
12/20/96 2.5 % -0.97% 0.83%
12/27/96 4.1 % 0.13% 1.59%
1/3/97 5.16% -1.01% 2.36%
1/10/97 6.9 % 0.55% 3.59%
1/17/97 7.68% 2.77% 4.11%
1/24/97 7.81% 2.03% 4.19%
1/31/97 8.22% 4.14% 4.6 %
2/7/97 7.58% 4.66% 3.87%
2/14/97 8.22% 7.22% 4.59%
2/21/97 8.45% 6.37% 3.82%
2/28/97 8.18% 4.96% 2.07%
3/7/97 10.79% 6.9 % 3.63%
3/14/97 10.19% 5.38% 2.43%
3/21/97 8.45% 4.19% -0.18%
3/28/97 7.77% 2.87% -0.91%
4/4/97 5.71% 0.77% -3.2 %
4/11/97 5.8 % -1.88% -3.61%
4/18/97 6.9 % 1.95% -2.89%
4/25/97 5.84% 1.83% -4.55%
5/2/97 10.1 % 8.22% 0.65%
5/9/97 11.52% 9.85% 2.8 %
5/16/97 12.12% 10.61% 3.94%
5/23/97 15.27% 12.94% 6.92%
5/31/97 16.6 % 13.15% 8.4 %
Despite the highest level of market volatility in seven years, your Fund
provided higher returns with less price fluctuation than the overall stock
market since November, as measured by unmanaged benchmarks of the small and
large cap sectors.
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. PERFORMANCE INFORMATION
FOR ALL CLASSES CAN BE FOUND ON PAGE 8.
The positive effect of Value Fund's strategy can be seen in the chart
above.
OUTLOOK
After five years of economic growth, large companies may find it increasingly
difficult to post significantly higher earnings for the balance of 1997.
Several major companies in the technology area, for example, have
disappointed investors in recent months as order rates for products have
begun to subside.
In my opinion, the market may broaden its focus as investors realize
that smaller, underfollowed companies may offer greater capital appreciation
potential than the stocks of larger, widely watched companies.
As of May 31, the difference in dividend yield between stocks in the
S&P 500 Index (1.71%) and the Russell 2000 Index (1.5%) was quite narrow by
historical standards. This supports our belief in the relative attractiveness
of small cap value stocks. Typically larger stocks have offered almost twice
the yield of smaller companies, in part to compensate investors for the slower
growth rates of larger businesses.
I believe the small cap value segment of the stock market remains an
excellent way for investors to increase the diversification of their
investment portfolio without taking on the added risks associated with
aggressive growth stocks. I'm excited to be part of the Delaware investment
team and I look forward to building on Value Fund's fine track record.
Christopher B. Beck
VICE PRESIDENT AND
SENIOR PORTFOLIO MANAGER
July 3, 1997
1 9 9 7 s e m i - a n n u a l r e p o r t
7
<PAGE>
VALUE FUND'S LIFETIME PERFORMANCE
Growth of a $10,000 Investment
June 24, 1987, through May 31, 1997
- --------------------------------------------------------------------------------
Lipper Capital
Appreciation Fund Russell 2000 S&P 500
Average Value Fund A Index Index
6\24\87 $10,000 $ 9,525 $10,000 $10,000
5\31\88 $ 8,893 $ 9,684 $ 8,756 $ 8,893
5\31\89 $11,070 $13,784 $10,822 $11,265
5\31\90 $12,201 $14,062 $10,869 $13,127
5\31\91 $13,250 $15,625 $11,708 $14,678
5\31\92 $14,892 $19,203 $13,281 $16,123
5\31\93 $17,343 $23,345 $15,843 $17,990
5\31\94 $18,530 $25,345 $17,225 $18,752
5\31\95 $20,769 $25,862 $18,998 $22,524
5\31\96 $28,167 $32,657 $25,817 $28,899
5\31\97 $30,410 $40,499 $27,616 $37,382
Only 15.5% of stock funds that seek capital appreciation as
their primary objective outpaced both the S&P 500 Index and the Russell 2000
Index for Value Fund's lifetime, according to Lipper Analytical Services.
CHART ASSUMES $10,000 INVESTED ON JUNE 24, 1987, AND INCLUDES THE EFFECT OF A
4.75% FRONT-END SALES CHARGE AND THE REINVESTMENT OF ALL DIVIDENDS AND
CAPITAL GAINS. PERFORMANCE OF OTHER CLASSES OF VALUE FUND WILL VARY DUE TO
DIFFERING CHARGES AND EXPENSES. THERE WERE 58 FUNDS IN THE
LIPPER AVERAGE FOR VALUE FUND'S LIFETIME PERFORMANCE.
VALUE FUND PERFORMANCE
- --------------------------------------------------------------------------------
Average Annual Total Return through May 31, 1997
LIFETIME FIVE YEARS ONE YEAR
- -------------------------------------------------------------------------------
Class A (Est. 6/24/87)
Excluding Sales Charge +15.68% +16.10% +24.01%
Including Sales Charge +15.11% +14.97% +18.12%
- -------------------------------------------------------------------------------
Class B (Est. 9/6/94)
Excluding Sales Charge +17.74% +23.14%
Including Sales Charge +16.91% +19.14%
- -------------------------------------------------------------------------------
Class C (Est. 11/29/95)
Excluding Sales Charge +24.38% +23.12%
Including Sales Charge +24.38% +22.12%
RETURNS REFLECT REINVESTMENT OF DISTRIBUTIONS AND ANY APPLICABLE SALES CHARGES
AS NOTED 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. B AND C CLASS RESULTS "EXCLUDING SALES
CHARGE" ASSUME INVESTMENT WAS NOT REDEEMED.
CLASS A SHARES HAVE A 4.75% SALES CHARGE AND A 12B-1 FEE.
CLASS B SHARES DO NOT CARRY A FRONT-END SALES CHARGE, BUT ARE SUBJECT TO A 1%
ANNUAL DISTRIBUTION AND SERVICE FEE.
THEY ARE ALSO SUBJECT TO A DEFERRED SALES CHARGE OF UP TO 4%. LIFETIME
PERFORMANCE EXCLUDING SALES CHARGE ASSUMES THE INVESTMENT WAS NOT REDEEMED.
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, FIVE-YEAR AND ONE-YEAR
PERIODS AND AGGREGATE SIX-MONTH RETURN FOR THE PERIOD ENDED MAY 31, 1997,
WERE +15.83%, +16.41%, +24.36% AND +16.73%, RESPECTIVELY. THE INSTITUTIONAL
CLASS, INITIALLY OFFERED ON NOVEMBER 9, 1992, IS AVAILABLE WITHOUT SALES
CHARGE ONLY TO CERTAIN ELIGIBLE INSTITUTIONAL ACCOUNTS. PERFORMANCE PRIOR TO
NOVEMBER 9, 1992, IS BASED ON CLASS A PERFORMANCE, ADJUSTED TO ELIMINATE THE
SALE CHARGES, BUT NOT THE ASSET-BASED DISTRIBUTION CHARGE.
1 9 9 7 s e m i - a n n u a l r e p o r t
8
<PAGE>
Financial Statements
DELAWARE GROUP
EQUITY FUNDS V, INC. -- VALUE FUND
STATEMENT OF NET ASSETS -- MAY 31, 1997
(UNAUDITED)
NUMBER OF MARKET
SHARES VALUE
- --------------------------------------------------------------------------------
COMMON STOCK - 92.45%
AEROSPACE & DEFENSE - 1.59%
Thiokol .......................................... 57,300 $ 4,118,438
-----------
4,118,438
-----------
AUTOMOBILES & AUTO PARTS - 2.25%
Arvin Industries ................................. 117,400 3,257,850
CLARCOR .......................................... 109,100 2,563,850
-----------
5,821,700
-----------
BANKING, FINANCE & INSURANCE - 21.51%
American Heritage Life ........................... 34,300 994,700
CMAC Investments ................................. 46,100 1,918,912
Enhance Financial Services Group ................. 91,000 3,799,250
Everest Reinsurance Holdings ..................... 101,170 3,439,780
Farm Family Holdings ............................. 114,400 3,060,200
Financial Federal ................................ 148,700 2,927,531
Horace Mann Educators ............................ 86,700 4,183,275
Keystone Financial ............................... 91,650 2,732,316
NAC RE Group ..................................... 62,200 2,480,225
North Fork Bancorporation ........................ 135,000 2,835,000
ONBANCorp ........................................ 48,500 2,282,531
PMI Group ........................................ 59,700 3,276,037
Penncorp Financial Group ......................... 101,700 3,470,512
Roosevelt Financial Group ........................ 122,500 2,863,438
Scpie Holdings ................................... 59,000 1,305,375
TIG Holdings ..................................... 120,900 3,264,300
Titan Holdings ................................... 192,245 3,700,707
Union Planters ................................... 84,500 3,992,625
Westamerica Bancorporation ....................... 45,000 3,088,125
-----------
55,614,839
-----------
BUILDINGS & MATERIALS - 1.89%
Cavalier Homes Inc. .............................. 163,800 1,842,750
D.R. Horton ...................................... 299,800 2,885,575
Southern Energy Homes ............................ 13,200 145,200
-----------
4,873,525
-----------
CABLE, MEDIA & PUBLISHING - 1.76%
Cadmus Communications ............................ 139,800 1,974,675
Devon Group ...................................... 83,000 2,583,375
-----------
4,558,050
-----------
CHEMICALS - 3.86%
Ferro ............................................ 75,800 2,833,025
Scotts ........................................... 140,100 4,097,925
Synthetic Industries ............................. 160,800 3,035,100
-----------
9,966,050
-----------
ELECTRONICS & ELECTRICAL - 6.27%
Burr-Brown ....................................... 166,350 5,208,834
Kemet ............................................ 142,700 3,594,256
Micro Linear ..................................... 220,500 4,410,000
Rexel ............................................ 163,800 2,989,350
-----------
16,202,440
-----------
Top 10 stock holdings, representing 17.30% of net assets, are in boldface.
<PAGE>
NUMBER OF MARKET
SHARES VALUE
- --------------------------------------------------------------------------------
COMMON STOCK (CONTINUED)
ENERGY - 7.08%
Belco Oil & Gas .................................... 130,800 $ 3,073,800
Belden & Blake ..................................... 106,150 2,832,878
EVI Inc. ........................................... 73,200 2,754,150
Offshore Logistics ................................. 192,500 3,477,031
Pool Energy Services ............................... 197,200 3,266,125
Seacor ............................................. 56,000 2,898,000
-----------
18,301,984
-----------
FOOD, BEVERAGE & TOBACCO - 3.74%
DiMon .............................................. 116,300 2,689,437
Fresh America ...................................... 143,500 2,331,875
Schweitzer-Mauduit International ................... 135,500 4,657,813
-----------
9,679,125
-----------
HEALTHCARE & PHARMACEUTICALS - 3.32%
Lincare Holdings ................................... 59,400 2,312,887
Marquette Medical Systems .......................... 148,700 3,382,925
Maxicare Health Plans .............................. 121,600 2,895,600
-----------
8,591,412
-----------
INDUSTRIAL MACHINERY - 12.37%
Central Sprinkler .................................. 22,100 458,575
Chicago Bridge & Iron .............................. 146,000 2,899,875
Columbus McKinnon .................................. 143,500 2,538,156
Global Industries Technology ....................... 116,400 2,153,400
IDEX ............................................... 117,600 3,336,900
Keystone International ............................. 159,600 5,206,950
Kuhlman ............................................ 162,200 4,480,775
Regal-Beloit ....................................... 122,500 3,261,563
Shaw Group ......................................... 145,600 2,529,800
TriMas ............................................. 90,900 2,579,288
Watts Industries ................................... 101,600 2,527,300
-----------
31,972,582
-----------
LEISURE, LODGING, & ENTERTAINMENT - 1.37%
Ascent Entertainment Group ......................... 137,600 1,393,200
Hollywood Park ..................................... 154,300 2,160,200
-----------
3,553,400
-----------
METALS & MINING - 0.70%
Century Aluminum ................................... 102,800 1,818,275
-----------
1,818,275
-----------
PAPER & FOREST PRODUCTS - 3.66%
Caraustar Industries ............................... 74,600 2,144,750
Chesapeake ......................................... 66,200 2,217,700
Glatfelter (P.H.) ................................. 124,700 2,182,250
Rayonier ........................................... 68,200 2,924,075
-----------
9,468,775
-----------
REAL ESTATE - 10.47%
Cali Realty ........................................ 110,600 3,276,525
Chateau Communities ................................ 89,507 2,349,559
Duke Realty Investments ............................ 67,200 2,562,000
Excel Realty Trust ................................. 100,000 2,587,500
Kilroy Realty Corporation .......................... 41,400 993,600
1 9 9 7 s e m i - a n n u a l r e p o r t
9
<PAGE>
DELAWARE GROUP
EQUITY FUNDS V, INC. -- VALUE FUND
STATEMENT OF NET ASSETS -- (CONTINUED)
NUMBER OF MARKET
SHARES VALUE
- --------------------------------------------------------------------------------
COMMON STOCK (CONTINUED)
REAL ESTATE (CONTINUED)
Patriot American Hospitality ..................... 146,200 $ 3,161,575
Prentiss Properties Trust ........................ 145,100 3,409,850
Public Storage ................................... 107,600 2,864,850
Reckson Associates Realty ........................ 161,600 3,636,000
Starwood Lodging Trust ........................... 60,000 2,235,000
------------
27,076,459
------------
RETAIL - 1.37%
Waban ............................................ 116,300 3,532,613
------------
3,532,613
------------
TEXTILES, APPAREL, & FURNITURE - 2.34%
Kellwood ......................................... 123,200 3,218,600
Quaker Fabric .................................... 175,100 2,823,487
------------
6,042,087
------------
TRANSPORTATION & SHIPPING - 5.26%
Airborne Freight ................................. 69,000 2,639,250
M.S. Carriers .................................... 135,300 2,799,019
Mesaba Holdings .................................. 295,700 4,361,575
USFreightways .................................... 157,600 3,802,100
------------
13,601,944
------------
UTILITIES - 1.64%
Public Service Company of North Mexico ........... 107,600 1,896,450
Sierra Pacific Resources ......................... 79,500 2,355,188
------------
4,251,638
------------
Total Common Stock (cost $181,917,532) ........... $239,045,336
------------
PRINCIPAL
AMOUNT
REPURCHASE AGREEMENTS - 7.85%
With Morgan, (J.P.) 5.50% 6/2/97
(dated 5/30/97, collaterized by
$3,801,000 U.S. Treasury Notes
5.125% due 2/28/98 market value
$3,829,249 and $2,371,000 U.S.
Treasury Notes 5.125% due 2/28/98
market value $2,388,762) ........................ $6,089,000 6,089,000
With Prudential Securities 5.53% 6/2/97
(dated 5/30/97, collaterized by
$3,801,000 U.S. Treasury Notes
8.875% due 11/15/98 market value
$3,961,132, $1,121,000 U.S.
Treasury Notes 6.25% due 6/30/98
market value $1,145,271 and $1,008,000 U.S.
Treasury Notes 8.875% due 11/15/98
market value $1,029,894) ........................ 6,006,000 6,006,000
<PAGE>
PRINCIPAL MARKET
AMOUNT VALUE
- --------------------------------------------------------------------------------
REPURCHASE AGREEMENTS (CONTINUED)
With PaineWebber 5.50% 6/2/97
(dated 5/30/97, collaterized by
$3,801,000 U.S. Treasury Notes
5.50% due 11/30/98 market value
$3,883,848 and $2,162,000 U.S. Treasury Notes
5.50% due 11/30/00 market value
$2,168,879) .................................... $ 5,930,000 $5,930,000
With Chase Manhattan 5.45% 6/2/97
(dated 5/30/97, collaterized by
$2,273,000 U.S. Treasury Notes
6.25% due 7/31/98 market value
$2,327,642) .................................... 2,281,000 2,281,000
-------------
Total Repurchase Agreements
(cost $20,306,000) .......................................... 20,306,000
-------------
TOTAL MARKET VALUE OF SECURITIES - 100.30%
(cost $202,223,532) ........................................ $ 259,351,336
LIABILITIES NET OF RECEIVABLES AND
OTHER ASSETS - (0.30%) ..................................... (793,606)
-------------
NET ASSETS APPLICABLE TO
10,157,903 SHARES ($.01 PAR VALUE
OUTSTANDING) - 100.00% ..................................... $ 258,557,730
=============
NET ASSET VALUE - VALUE FUND A CLASS
($219,936,339 / 8,636,373 shares) .......................... $25.47
=============
NET ASSET VALUE - VALUE FUND B CLASS
($18,344,993 / 725,684 shares) ............................. $25.28
=============
NET ASSET VALUE - VALUE FUND C CLASS
($5,818,612 / 230,388 shares) .............................. $25.26
=============
NET ASSET VALUE - VALUE FUND INSTITUTIONAL CLASS
($14,457,786 / 565,458 shares) ............................. $25.57
=============
COMPONENTS OF NET ASSETS AT MAY 31, 1997:
Capital Stock, $1 par value, 500,000,000 shares authorized
to the Fund with 150,000,000 shares allocated to Value
Fund A Class, 100,000,000 shares allocated to Value
Fund B Class, 50,000,000 shares allocated to Value
Fund C Class and 50,000,000 shares allocated to Value
Fund Institutional Class .................................... 189,723,878
Accumulated undistributed:
Net investment income ....................................... 417,439
Net realized gain on investments ............................ 11,290,892
Net unrealized appreciation of investments
and foreign currencies ..................................... 57,125,521
-------------
Total net assets ............................................ 258,557,730
=============
See accompanying notes
1 9 9 7 s e m i - a n n u a l r e p o r t
10
<PAGE>
DELAWARE GROUP
EQUITY FUNDS V, INC. -- VALUE FUND
STATEMENT OF OPERATIONS
SIX MONTHS ENDED MAY 31, 1997
(UNAUDITED)
- --------------------------------------------------------------------------------
INVESTMENT INCOME:
Dividends .......................................... $ 1,823,743
Interest ........................................... 449,302 $ 2,273,045
-----------
EXPENSES:
Management fees ($890,063)
and directors' fees ($4,467) ...................... 894,530
Distribution expenses .............................. 408,635
Dividend disbursing and transfer agent fees
and expenses ...................................... 292,420
Accounting fees and salaries ....................... 45,835
Reports and statements to shareholders ............. 43,597
Registration fees .................................. 33,015
Professional fees .................................. 17,531
Taxes (other than taxes on income) ................. 8,072
Custodian fees ..................................... 4,433
Other .............................................. 20,758 1,768,826
----------- -----------
NET INVESTMENT INCOME .............................. 504,219
-----------
NET REALIZED AND UNREALIZED GAIN
ON INVESTMENTS AND FOREIGN CURRENCIES:
Net realized gain from security transactions and
foreign currencies ................................ 11,375,954
Net unrealized appreciation of investments and
foreign currency during the period ................ 24,863,235
-----------
NET REALIZED AND UNREALIZED GAIN ON
INVESTMENTS AND FOREIGN CURRENCIES ................ 36,239,189
-----------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS ................................... $36,743,408
===========
NET ASSET VALUE AND OFFERING PRICE PER
SHARE - VALUE FUND A CLASS
Net asset value A Class (A) ........................ $25.47
Sales Charge (4.75% of offering price or 4.99%,
of the amount invested per share) (B) ............. 1.27
-----------
Offering price ..................................... $26.74
===========
- -------------------
(A) Net asset value per share, as illustrated, is the estimated amount which
would be paid upon redemption or repurchase of shares.
(B) See Buying Shares in the current Prospectus for purchases of $100,000 or
more.
See accompanying notes
<PAGE>
DELAWARE GROUP
EQUITY FUNDS V, INC. -- VALUE FUND
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
For the Six Months Year Ended
Ended 5/31/97 11/30/96
(Unaudited)
INCREASE IN NET ASSETS
FROM OPERATIONS:
Net investment income ........................ $ 504,219 $ 1,017,699
Net realized gain from security transactions
and foreign currencies ...................... 11,375,954 34,101,818
Net unrealized appreciation of investments
and foreign currency during the period ...... 24,863,235 1,003,831
------------- -------------
Net increase in net assets
resulting from operations ................... 36,743,409 36,123,348
------------- -------------
DISTRIBUTION TO SHAREHOLDERS FROM:
Net investment income:
Value Fund A Class .......................... (1,008,137) (1,863,298)
Value Fund B Class .......................... -- (25,338)
Value Fund C Class .......................... -- (67)
Value Fund Institutional Class .............. (125,855) (98,850)
Net realized gain from security transactions:
Value Fund A Class .......................... (29,123,966) (6,909,728)
Value Fund B Class .......................... (1,956,018) (237,377)
Value Fund C Class .......................... (557,181) (214)
Value Fund Institutional Class .............. (2,394,311) (293,254)
------------- -------------
(35,165,468) (9,428,126)
------------- -------------
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold:
Value Fund A Class .......................... 24,520,464 30,362,508
Value Fund B Class .......................... 4,598,506 7,098,090
Value Fund C Class .......................... 2,442,723 3,631,712
Value Fund Institutional Class .............. 4,467,990 14,113,802
Net asset value of shares issued upon
reinvestment of dividends from net investment
income and net realized gains on security
transactions:
Value Fund A Class .......................... 28,755,476 8,292,572
Value Fund B Class .......................... 1,883,574 252,413
Value Fund C Class .......................... 536,064 282
Value Fund Institutional Class .............. 2,518,773 392,342
------------- -------------
69,723,570 64,143,721
------------- -------------
Cost of shares repurchased:
Value Fund A Class .......................... (26,963,013) (46,585,878)
Value Fund B Class .......................... (1,210,806) (1,736,866)
Value Fund C Class .......................... (676,628) (564,409)
Value Fund Institutional Class .............. (8,653,797) (7,288,901)
------------- -------------
(37,504,244) (56,176,054)
------------- -------------
Increase in net assets derived from capital
share transactions .......................... 32,219,326 7,967,667
------------- -------------
NET INCREASE IN NET ASSETS ................... 33,797,266 34,662,889
NET ASSETS:
Beginning of year ............................ 224,760,464 190,097,575
------------- -------------
End of year .................................. $ 258,557,730 $ 224,760,464
============= =============
See accompanying notes
1 9 9 7 s e m i - a n n u a l r e p o r t
11
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
Selected data for each share of the Fund outstanding throughout each period
were as follows:
<TABLE>
<CAPTION>
Value Fund A Class
------------------------------------------------------------------------
Six Months Year Year Year Year Year
Ended Ended Ended Ended Ended Ended
5/31/97 11/30/96 11/30/95 11/30/94 11/30/93 11/30/92
(Unaudited)
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period........ $ 25.780 $22.760 $19.320 $20.070 $17.750 $15.320
Income from investment operations:
Net investment income(1).................. 0.634 0.122 0.253 0.142 0.033 0.060
Net realized and unrealized gain (loss)
from investments & foreign currencies.... 3.091 4.028 3.597 (0.687) 3.147 3.360
-------- ------- ------- ------- ------- -------
Net increase (decrease) in net assets
from investment operations............... 3.725 4.150 3.850 (0.545) 3.180 3.420
-------- ------- ------- ------- ------- -------
Less dividends and distributions:
Dividends from net investment income...... (0.135) (0.240) (0.160) (0.035) (0.040) none
Distributions from net realized gain
on security transactions................. (3.900) (0.890) (0.250) (0.170) (0.820) (0.990)
-------- ------- ------- ------- ------- -------
Total dividends and distributions......... (4.035) (1.130) (0.410) (0.205) (0.860) (0.990)
-------- ------- ------- ------- ------- -------
Net asset value, end of period.............. $ 25.470 $25.780 $22.760 $19.320 $20.070 $17.750
======== ======= ======= ======= ======= =======
Total Return(2)............................. 16.60% 19.08% 20.39% (2.78%) 18.59% 22.99%
Ratios and supplemental data:
Net assets, end of period (000 omitted)... $219,936 $192,297 $177,011 $179,498 $151,384 $38,792
Ratio of expenses to average net assets... 1.43% 1.45% 1.48% 1.46% 1.64% 1.93%
Ratio of net investment income
to average net assets.................... 0.46% 0.51% 1.18% 0.75% 0.25% 0.39%
Portfolio turnover........................ 57% 87% 65% 14% 32% 68%
Average commission rate paid.............. $ 0.0600 $0.0600 N/A N/A N/A N/A
Value Fund B Class Value Fund C Class
--------------------------------------------------------------------------------------
Six Months Year Year 9/6/94 Six Months Year 11/29/95
Ended Ended Ended To Ended Ended To
5/31/97 11/30/96 11/30/95 11/30/94(1) 5/31/97 11/30/96 11/30/95(1)
(Unaudited) (Unaudited)
Net asset value, beginning of period........ $25.570 $22.59 $19.300 $ 20.28 $25.550 $22.760 $22.510
Income from investment operations:
Net investment income (loss)(1)........... 0.523 (0.041) 0.141 0.011 0.405 (0.043) none
Net realized and unrealized gain (loss)
from investments & foreign currencies.... 3.087 4.006 3.549 (0.991) 3.205 4.003 0.250
-------- ------- ------- ------- ------- ------- -------
Net increase (decrease) in net assets
from investment operations............... 3.610 3.965 3.690 (0.980) 3.610 3.960 0.250
-------- ------- ------- ------- ------- ------- -------
Less dividends and distributions:
Dividends from net investment income...... none (0.095) (0.150) none none (0.280) none
Distributions from net realized gain
on security transactions................. (3.900) (0.890) (0.250) none (3.900) (0.890) none
-------- ------- ------- ------- ------- ------- -------
Total dividends and distributions......... (3.900) (0.985) (0.400) none (3.900) (1.170) none
-------- ------- ------- ------- ------- ------- -------
Net asset value, end of period.............. $25.280 $25.570 $22.590 $19.300 $25.260 $25.550 $22.760
======== ======= ======= ======= ======= ======= =======
Total Return(2)............................. 16.16% 18.26% 19.55% (4.83%) 16.18% 18.23% (3)
Ratios and supplemental data:
Net assets, end of period (000 omitted)... $18,345 $12,730 $ 5,788 $ 1,455 $ 5,819 $ 3,360 (3)
Ratio of expenses to average net assets... 2.13% 2.15% 2.18% 2.16% 2.13% 2.15% (3)
Ratio of net investment income
to average net assets.................... (0.24%) (0.19%) 0.48% 0.05% (0.24%) (0.19%) (3)
Portfolio turnover........................ 57% 87% 65% 14% 57% 87% (3)
Average commission rate paid.............. $0.0600 $0.0600 N/A N/A $0.0600 $0.0600 N/A
</TABLE>
<PAGE>
- --------------------
(1) Date of commencement of trading; ratios and total return have been
annualized.
(2) 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. Does not include
contingent deferred sales charge which varies from 1-4% depending upon the
holding period for Class B and Class C shares.
(3) The ratios of expenses and net investment income to average net assets,
portfolio turnover and total return have been omitted as management believes
that such ratios and returns for this relatively short period are not
meaningful.
See accompanying notes
1 9 9 7 s e m i - a n n u a l r e p o r t
12
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
Selected data for each share of the Fund outstanding throughout each period
were as follows:
<TABLE>
<CAPTION>
Value Fund Institutional Class
-----------------------------------------------------------------------
Six Months Year Year Year Year 11/9/92(1)
Ended Ended Ended Ended Ended TO
5/31/97 11/30/96 11/30/95 11/30/94 11/30/93 11/30/92
(Unaudited)
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period........ $25.910 $22.860 $19.400 $20.140 $17.750 $17.090
Income from investment operations:
Net investment income..................... 0.692 0.193 0.297 0.195 0.092 0.004
Net realized and unrealized gain (loss)
from investments & foreign currencies.... 3.073 4.047 3.628 (0.685) 3.158 0.656
-------- ------- ------- ------- ------- -------
Net increase (decrease) in net assets
from investment operations............... 3.765 4.240 3.925 (0.490) 3.250 0.660
-------- ------- ------- ------- ------- -------
Less dividends and distributions:
Dividends from net investment income...... (0.205) (0.300) (0.215) (0.080) (0.040) none
Distributions from net realized gain
on security transactions................. (3.900) (0.890) (0.250) (0.170) (0.820) none
-------- ------- ------- ------- ------- -------
Total dividends and distributions........... (4.105) (1.190) (0.465) (0.250) (0.860) none
-------- ------- ------- ------- ------- -------
Net asset value, end of period.............. $25.570 $25.910 $22.860 $19.400 $20.140 $17.750
======== ======= ======= ======= ======= =======
Total Return................................ 16.73% 19.45% 20.76% (2.51%) 19.00% 3.86%
Ratios and supplemental data:
Net assets, end of period (000 omitted)... $14,458 $16,373 $ 7,294 $ 6,385 $ 5,476 $ 1,558
Ratio of expenses to average net assets... 1.13% 1.15% 1.18% 1.16% 1.34% 1.63%
Ratio of net investment income
to average net assets.................... 0.76% 0.81% 1.48% 1.05% 0.55% 0.69%
Portfolio turnover........................ 57% 87% 65% 14% 32% 68%
Average commission rate paid.............. $0.0600 $0.0600 N/A N/A N/A N/A
</TABLE>
- -------------------
(1)Date of commencement of trading; ratios and total return have been
annualized.
See accompanying notes
1 9 9 7 s e m i - a n n u a l r e p o r t
13
<PAGE>
DELAWARE GROUP
EQUITY FUNDS V, INC. -- VALUE FUND
NOTES TO FINANCIAL STATEMENTS
MAY 31, 1997
(UNAUDITED)
- --------------------------------------------------------------------------------
Delaware Group Equity Funds V, Inc. - Value Fund, formerly known as Delaware
Group Value Fund, Inc. ("the Fund") is registered as a diversified open-end
investment company under the Investment Company Act of 1940, as amended. The
Fund is organized as a Maryland Corporation and offers four classes of
shares.
The investment objective of the Value Fund is to seek capital appreciation. The
Fund's strategy is to invest primarily in equities with market values that, in
the manager's opinion, appear low relative to their underlying value or future
earnings and growth potential.
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. Securities listed on a
foreign exchange are valued at the last quoted sales price before the Fund is
valued. Long-term debt securities are valued by an independent pricing
service and such prices are believed to reflect the fair value of such
securities. Money market instruments having less than 60 days to maturity are
valued at amortized cost which approximates market value. Other securities
and assets for which market quotations are not readily available are valued
at fair value as determined in good faith by or under the direction of the
Fund's Board of 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.
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.
Foreign Currency Transactions - Transactions denominated in foreign
currencies are recorded in the Fund's records at the current prevailing
exchange rates. The value of all assets and liabilities denominated in
foreign currencies are translated into U.S. dollars at the exchange rate of
such currencies against the U.S. dollar as of 3:00 PM EST. Transaction gains
or losses resulting from changes in exchange rates during the reporting
period or upon settlement of the foreign currency transaction are reported in
operations for the current period. It is not practical to isolate that
portion of both realized and unrealized gains and losses on investments in
equity securities in the statement of
<PAGE>
operations that result from fluctuations in foreign currency exchange rates. The
Fund reports certain foreign currency related transactions as components of
realized gains for financial reporting purposes, whereas such components are
treated as ordinary income (loss) for federal income tax purposes.
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. Foreign dividends are also recorded on the
ex-dividend date or as soon after the ex-dividend date that the Fund is aware
of such dividends, net of all non-rebatable tax withholdings. Original issue
discounts are accreted to interest income over the lives of the respective
securities.
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. the Investment Manager of the Fund, an annual fee which
is calculated daily at the annual rate of 0.75% of the average daily net assets
of the Fund less the fees paid to the unaffiliated directors. At May 31, 1997,
the Fund had a liability for Investment Management fees and other expenses
payable to DMC for $8,565.
The Fund has engaged Delaware Service Company, Inc. (DSC), an affiliate of
DMC, to serve as dividend disbursing and transfer agent for the Fund.
Effective August 19, 1996, the Fund also engaged DSC to provide accounting
services for the Fund. Previously, fund personnel provided this service and
the related costs were recorded in salaries and other expense categories in
the statement of operations. For the six months ended May 31, 1997, the Fund
expensed $36,033 for accounting services. At May 31, 1997, the Fund had a
liability for such fees and other expenses payable to DSC for $19,048.
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. At May 31, 1997, the Fund had
a liability for distribution fees and other expenses payable to DDLP for
$12,205. For the six months ended May 31, 1997, DDLP earned $42,794 for
commissions on sales of the Fund A Class shares.
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.
1 9 9 7 s e m i - a n n u a l r e p o r t
14
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
3. Investments
During the six months ended May 31, 1997, the Fund made purchases of
$63,155,077 and sales of $73,292,851 of investment securities other than U.S.
government securities and temporary cash investments.
At May 31, 1997, the aggregate cost of securities for federal income tax
purposes was $202,223,532
At May 31, 1997, unrealized appreciation for federal income tax purposes
aggregated $57,127,804 of which $60,017,477 related to unrealized appreciation
of securities and $2,889,673 related to unrealized depreciation of securities.
4. Capital Stock
Transactions in capital stock were as follows:
Six Months Year
Ended Ended
5/31/97 11/30/96
----------- -----------
Shares sold:
Value Fund A Class .......................... 1,026,231 1,300,538
Value Fund B Class .......................... 194,134 304,900
Value Fund C Class .......................... 103,482 154,695
Value Fund Institutional Class .............. 184,534 607,791
Shares issued upon reinvestment of
dividends from net investment income
and net realized gains from security
transactions:
Value Fund A Class .......................... 1,284,300 376,091
Value Fund B Class .......................... 84,465 11,473
Value Fund C Class .......................... 24,071 13
Value Fund Institutional Class .............. 112,195 17,762
--------- ---------
3,013,412 2,773,263
--------- ---------
Shares repurchased:
Value Fund A Class .......................... (1,132,635) (1,994,881)
Value Fund B Class .......................... (50,824) (74,607)
Value Fund C Class .......................... (28,667) (23,427)
Value Fund Institutional Class .............. (363,270) (312,634)
--------- ---------
(1,575,396) (2,405,549)
--------- ---------
Net Increase ................................. 1,438,016 367,714
--------- ---------
5. Lines of Credit
The Fund has a committed line of credit for $8.2 million. No amount was
outstanding at May 31, 1997, or at any time during the six months ended
May 31, 1997.
1 9 9 7 s e m i - a n n u a l r e p o r t
15
<PAGE>
THIS SEMI-ANNUAL REPORT IS FOR THE INFORMATION OF VALUE FUND SHAREHOLDERS,
BUT IT MAY BE USED WITH PROSPECTIVE INVESTORS WHEN PRECEDED OR ACCOMPANIED BY
A CURRENT PROSPECTUS FOR VALUE 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 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.
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
FOR SHAREHOLDERS
1.800.523.1918
FOR SECURITIES DEALERS
1.800.362.7500
FOR FINANCIAL INSTITUTIONS
REPRESENTATIVES
1.800.659.2265
Be sure to consult your financial adviser when making investments. Mutual
funds can be a valuable part of your financial plan: however, shares of the
Fund are not FDIC or NCUSIF insured, are not guaranteed by any bank or any
credit union, and involve investment risk, including the possible loss of the
principal amount invested. Shares of the Fund are not bank or credit union
deposits.
Copy Rights Delaware Distributors, L.P.
Printed in the USA on
recycled paper
(52)
SA-021 [5/97] PP7/97
