<PAGE>
January 5, 1998
Dear Shareholder:
As another record year on Wall Street draws to a close, we are pleased to
present the inaugural annual report for Retirement Income Fund.
Retirement Income Fund's objective is to provide high current income and
capital appreciation. We strive to accomplish these goals through an asset
allocation strategy consisting of equities, high yield corporate bonds and
convertible securities.
Your Fund provided a total return of +38.31% for A class shares (capital
change plus reinvested dividends at net asset value for the lifetime period
ended November 30, 1997). This substantially outpaced the return of the
unmanaged S & P 500 Index, which rose +28.49% during the period.
Retirement Income Fund's stunning results were attributable to strong
stock selection in REITs, falling U.S. interest rates and a high weighting in
convertible securities, which provided both income and capital appreciation.
The U.S. stock market suffered two short-term corrections in 1997 - one
as a result of the Federal Reserve Board modestly raising short-term interest
rates in the spring, and the other a result of financial uncertainty in several
Asian countries. However, low inflation and the fundamental strength of the
domestic economy allowed the U.S. stock and bond markets to shrug off these
temporary setbacks and forge ahead.
During fiscal 1997, the yield on the 30-year Treasury bonds fell 32 basis
points (0.32%) to 6.04% as of November 30, 1997. Meanwhile, the credit quality
and risk/reward profile of the high-yield bond market remained attractive.
Retirement Income Fund provided a competitive 30-day SEC yield* while being
less interest rate sensitive than a fund invested solely in fixed-income
securities. As of November 30, your Fund's assets were allocated as follows:
o Convertible Securities - 37%
o Equities - 34%
o High-Yield Corporate Bonds - 29%
In our opinion, your Fund's diversified investment approach can provide a
buffer against market volatility by providing a regular stream of income and a
combination of asset classes that seldom perform in unison.
On behalf of the Delaware Group, we thank you for becoming Retirement
Income Fund's charter shareholders. We wish you a happy and prosperous New Year.
Sincerely,
Wayne A. Stork, Jeffrey J. Nick Babak Zenouzi, Paul A. Matlack
Chairman President and Vice President Vice President
Chief Executive Officer U.S. Equities U.S. Fixed Income
*As of 11/30/97, the 30-day SEC yield was 5.52% for Class A shares and 5.80% for
Institutional Class shares.
<PAGE>
Retirement Income Fund Performance
- ----------------------------------
GROWTH OF A $10,000 INVESTMENT - DECEMBER 1, 1996 TO NOVEMBER 30, 1997
CUMULATIVE TOTAL RETURN (DECEMBER 1, 1996 TO NOVEMBER 30, 1997)
- ---------------------------------------------------------------
Retirement Income Fund Retirement Income Fund
A Class/ A Class/ Standard & Poor's
Excluding Sales Charge Including Sales Charge 500 Index
---------------------- ---------------------- -----------------
11/30/96 $10,000 $9,525 $10,000
12/31/96 10,498 10,003 9,802
1/31/97 10,497 10,431 10,414
2/28/97 11,219 10,691 10,496
3/31/97 11,089 10,567 10,065
4/30/97 11,124 10,600 10,666
5/31/97 11,621 11,074 11,315
6/30/97 12,247 11,671 11,822
7/31/97 12,980 12,369 12,762
8/31/97 12,945 12,335 12,047
9/30/97 13,843 13,191 12,707
10/31/97 13,607 12,966 12,283
11/30/97 13,831 13,180 12,851
Chart assumes $10,000 invested on December 1, 1996 at net asset value and
reinvestment of all distributions. The maximum sales charge for A Class shares
is 4.75%. Shares may be purchased at net asset value under certain
circumstances. Class A shares have a 12b-1 fee of 0.30% that has been waived
since inception. A voluntary expense cap of 0.75% has been in effect. The S&P
500 Index is unmanaged.
Retirement Income Fund Performance
Cumulative Total Return, December 1, 1996 To November 30, 1997
- --------------------------------------------------------------
Class A
- -------
Excluding Sales Charge. . . . . . . . . . . . . . . . . . . . . . . . +38.31%
Including Sales Charge . . . . . . . . . . . . . . . .. . . . . . . . +31.80%
Institutional Class . . . . . . . . . . . . . . . . . . . . . . . . . +38.19%
Retirement Income Fund invests in high-yield securities, which involve greater
risk than investing in higher quality fixed-income securities. Return and share
value will fluctuate with rising and falling interest rates so that shares when
redeemed may be worth or less than the original cost. All results include
reinvestment of distributions. Past performance is not a guarantee of future
results.
<PAGE>
<TABLE>
<CAPTION>
Delaware Group Equity Funds V, Inc -
Retirement Income Fund
Statement of Net Assets
November 30, 1997
Number Market
of shares Value
---------- ---------
<S> <C> <C>
COMMON STOCK - 33.71%
Automobiles & Automotive Parts - 5.12%
Chrysler 2,000 $ 68,625
General Motors 1,200 73,200
--------
141,825
--------
Banking, Finance & Insurance - 2.86%
Mellon Bank 1,400 79,363
--------
79,363
--------
Chemicals - 3.97%
Trammell Crow 5,000 110,000
--------
110,000
--------
Food, Beverage & Tobacco - 1.88%
Philip Morris 1,200 52,200
--------
52,200
--------
Real Estate - 17.45%
Apartment Investment & Management 1,800 63,675
Brandywine Realty Trust 2,000 48,375
Crescent Real Estate Equities 2,000 77,000
Excel Realty Trust 1,800 54,900
Patriot American Hospitality 3,098 96,813
Prentiss Properties Trust 2,100 54,338
Starwood Lodging Trust 1,650 88,481
--------
483,582
--------
Miscellaneous - 2.43%
Pitney Bowes 800 67,250
--------
67,250
--------
Total Common Stock (cost $690,516 ) 934,220
--------
CONVERTIBLE PREFERRED STOCKS - 14.71%
Banking, Finance & Insurance - 5.01%
Calenergy Capital Trust 1,200 57,600
SunAmerica 1,750 81,375
--------
138,975
--------
Cable, Media & Publishing - 5.91%
Chancellor Media-pfd. 1,500 99,375
MetroMedia International Group 1,400 64,400
--------
163,775
--------
Healthcare & Pharmaceuticals - 1.39%
MedPartners 1,600 38,400
--------
38,400
--------
Utilities - 2.40%
Houston Industries 1,200 66,600
--------
66,600
--------
Total Convertible Preferred Stocks (cost $366,663 ) 407,750
--------
Principal Market
Amount Value
--------- -----------
CORPORATE BONDS - 29.12%
Aerospace & Defense - 2.97%
Kellstrom Industries 5.75% 10/15/02 $50,000 56,875
Roller Bearing 9.625% 06/15/07 25,000 25,375
-------
82,250
-------
Automobile & Automotive Parts - 1.92%
Motors and Gears 10.75% 11/15/06 50,000 53,125
-------
53,125
-------
See accompany notes
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
RETIREMENT INCOME FUND
STATEMENT OF NET ASSETS (Continued)
Principal Market
CORPORATE BONDS (Continued) Amount Value
----------- ------------
<S> <C> <C>
Building & Materials - 3.80%
American Builders and Contractors
sr sub nts 10.625% 05/15/07 $ 25,000 $ 26,063
Atrium sr sub nts 10.50% 11/15/06 50,000 52,500
Clark Materials Handling 10.75% 11/15/06 25,000 26,688
--------
105,251
--------
Chemicals - 0.93%
Precise Technology 11.125% 06/15/07 25,000 25,875
--------
25,875
--------
Computer & Technology - 0.59%
Decisionone Holdings 11.50% 08/01/08 25,000 16,500
--------
16,500
--------
Consumer Products - 3.80%
Consumers International sr nts 10.25% 04/01/05 25,000 27,125
Riddell Sports 10.50% 07/15/07 25,000 25,938
William Carter 10.375% 12/01/06 50,000 52,375
--------
105,438
--------
Electronics & Electrical Equipment - 1.71%
Fairchild Semiconductor 10.125% 03/15/07 20,000 21,150
HCC Industries sr sub nts 10.75% 05/15/07 25,000 26,188
--------
47,338
--------
Energy - 0.90%
Panaco 10.625% 10/01/04 25,000 24,875
--------
24,875
--------
Environmental Services - 1.88%
Hydrochem Industrial Services 10.375% 08/01/07 50,000 52,000
--------
52,000
Leisure, Lodging & Entertainment - 4.04%
AFC Enterprises 10.25% 05/15/07 10,000 10,500
Hollywood Theaters 10.625% 08/01/07 25,000 26,688
Town Sports International 9.75% 10/15/04 25,000 25,250
Trump-Atlantic City 11.25% 05/01/06 50,000 49,625
--------
112,063
--------
Packaging & Containers - 0.92%
Huntsman Packaging 9.125% 10/01/07 25,000 25,563
--------
25,563
--------
Retail - 2.84%
Fleming sr sub nts 10.625% 12/15/01 50,000 53,000
Leslie's Poolmart 10.375% 07/15/04 25,000 25,875
--------
78,875
--------
Transportation & Shipping - 1.88%
Chemical Leaman 10.375% 06/15/05 50,000 52,000
--------
52,000
--------
Miscellaneous - 0.94%
Burke Industries 10.00% 08/15/07 25,000 26,000
--------
26,000
--------
Total Corporate Bonds (cost $773,276 ) 807,153
--------
CONVERTIBLE BONDS - 20.08%
Cable, Media & Publishing - 1.78%
World Color Press 6.00% 10/01/07 50,000 49,500
--------
49,500
--------
See accompanying notes
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
RETIREMENT INCOME FUND
STATEMENT OF NET ASSETS (Continued)
Principal Market
CONVERTIBLE BONDS (Continued) Amount Value
---------- ----------
<S> <C> <C>
Electronics & Electrical Equipment - 1.58%
Kent Electronics 4.50% 09/01/04 $ 47,000 $ 43,769
--------------
43,769
--------------
Energy - 2.38%
Parker Drilling 5.50% 08/01/04 58,000 65,903
--------------
65,903
--------------
Healthcare & Pharmaceuticals - 2.94%
Sunrise Assisted Living 5.50% 06/15/02 70,000 81,550
--------------
81,550
--------------
Miscellaneous - 11.40%
Corestaff 2.94% 08/15/04 65,000 55,331
Personnel Group of America 5.75% 07/01/04 60,000 72,300
Smartalk Teleservices 5.75% 09/15/04 55,000 55,825
Tel-Save Holdings 4.50% 09/15/02 60,000 64,875
Thermo Fibertek 4.50% 07/15/04 65,000 67,600
--------------
315,931
--------------
Total Convertible Bonds (cost $527,880 ) 556,653
--------------
REPURCHASE AGREEMENTS - 4.87%
With Chase Manhattan 5.68% 12/1/97
(dated 11/28/97, collateralized by $45,000
U.S. Treasury Notes 8.25% due 7/15/98
market value $46,933) 46,000 46,000
With J.P. Morgan Securities 5.70% 12/1/97
(dated 11/28/97, collateralized by $28,000
U.S. Treasury Notes 5.125% due 2/28/98
market value $28,509 and $17,000 U.S.
Treasury Notes 5.125% due 4/30/98
market value $16,933) 44,000 44,000
With PaineWebber 5.68% 12/1/97
(dated 11/28/97, collateralized by $44,000
U.S. Treasury Notes 6.25% due 6/30/98
market value $45,464) 45,000 45,000
--------------
Total Repurchase Agreements (cost $135,000) 135,000
--------------
Total Market Value of Securities - 102.49%
(cost $2,493,335) 2,840,776
LIABILITIES NET OF RECEIVABLES AND
OTHER ASSETS - (2.49%) (69,033)
--------------
NET ASSETS APPLICABLE TO 237,174 SHARES
($.01 PAR VALUE) OUTSTANDING - 100.00% $ 2,771,743
==============
NET ASSET VALUE - RETIREMENT INCOME FUND A CLASS
($8,683/742 shares) $ 11.70
==============
NET ASSET VALUE - RETIREMENT INCOME FUND INSTITUTIONAL CLASS
($2,763,060/236,432 shares) $ 11.69
==============
COMPONENTS OF NET ASSETS AT NOVEMBER 30, 1997:
Common stock, $.01 par value, 200,000,000 shares authorized to the Fund with
100,000,000 shares allocated to Retirement Income Fund A Class, 25,000,000
shares allocated to Retirement Income Fund B Class, 25,000,000 shares
allocated to Retirement Income Fund C Class and 50,000,000 shares allocated
to Retirement Income Fund Institutional Class $ 2,018,391
Undistributed net investment income 121,801
Accumulated net realized gain on investments 284,110
Net unrealized appreciation of investments 347,441
--------------
Total net assets $ 2,771,743
==============
</TABLE>
- ------------------
nts - notes sub - subordinate sr - senior
See accompanying notes
<PAGE>
RETIREMENT INCOME FUND
STATEMENT OF NET ASSETS (Continued)
<TABLE>
<CAPTION>
NET ASSET VALUE AND OFFERING PRICE PER SHARE -
RETIREMENT INCOME FUND
<S> <C>
Net asset value A Class (A) $ 11.70
Sales charge (4.75% of offering price or 4.96% of the amount invested per share)(B) 0.58
------------------
Offering price $ 12.28
==================
</TABLE>
(A) Net asset value per share, as illustrated, is the estimated amount which
would be paid upon redemption or repurchase of shares.
(B) See Buying Shares in the current prospectus for purchases of $100,000 or
more.
See accompanying notes
<PAGE>
DELAWARE GROUP EQUITY FUNDS V, INC. -
RETIREMENT INCOME FUND
STATEMENT OF OPERATIONS
FOR THE PERIOD DECEMBER 2, 1996* TO NOVEMBER 30, 1997
<TABLE>
<CAPTION>
<S> <C> <C>
INVESTMENT INCOME:
Interest $ 90,289
Dividends 59,665 $ 149,954
----------- -----------
EXPENSES:
Professional fees 16,034
Management fees 15,939
Custodian fees 3,240
Registration fees 2,717
Directors' fees 2,473
Reports and statements to shareholders 1,992
Dividend disbursing and transfer agent fees and expenses 1,295
Accounting fees and salaries 1,199
Taxes (other than taxes on income) 242
Other 54
-----------
45,185
Less expenses absorbed by Delaware Management
Company, Inc. (27,150) 18,035
----------- -----------
NET INVESTMENT INCOME 131,919
-----------
NET REALIZED AND UNREALIZED GAIN
ON INVESTMENTS:
Net realized gain on investment transactions 284,110
Net unrealized appreciation of investments during the period 347,441
-----------
NET REALIZED AND UNREALIZED GAIN
ON INVESTMENTS 631,551
-----------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS $ 763,470
===========
</TABLE>
- -------------------------------------------------
*Date of commencement of trading
See accompanying notes
<PAGE>
DELAWARE GROUP EQUITY FUNDS V, INC. -
RETIREMENT INCOME FUND
STATEMENT OF CHANGES IN NET ASSETS
FOR THE PERIOD DECEMBER 2, 1996* TO NOVEMBER 30, 1997
<TABLE>
<CAPTION>
<S> <C>
INCREASE IN NET ASSETS RESULTING FROM OPERATIONS:
Net investment income $ 131,919
Net realized gain on investment transactions 284,110
Net unrealized appreciation of investments during the period 347,441
------------
Net increase in net assets resulting from operations 763,470
------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income:
Retirement Income Fund A Class (1)
Retirement Income Fund Institutional Class (10,117)
------------
(10,118)
------------
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold:
Retirement Income Fund A Class 8,266
Retirement Income Fund Institutional Class 2,000,007
Net asset value of shares issued upon reinvestment of dividends from net
investment income:
Retirement Income Fund A Class 1
Retirement Income Fund Institutional Class 10,117
------------
2,018,391
Cost of shares repurchased:
Retirement Income Fund A Class -
Retirement Income Fund Institutional Class -
------------
-
------------
Increase in net assets derived from capital
share transactions 2,018,391
------------
NET INCREASE IN NET ASSETS 2,771,743
NET ASSETS:
Beginning of year -
------------
End of year $ 2,771,743
============
</TABLE>
- -------------------------------------------------
*Date of commencement of trading
See accompanying notes
<PAGE>
DELAWARE GROUP EQUITY FUNDS V, INC. -
RETIREMENT INCOME FUND
Financial Highlights
Selected data for each share of the Fund outstanding throughout the period were
as follows:
<TABLE>
<CAPTION>
Retirement Income
Fund
--------------------------------------------
A Class Institutional Class
12/2/96 (1) 12/2/96 (1)
to to
11/30/97 11/30/97
------------------ -----------------------
<S> <C> <C>
Net asset value, beginning of period $ 8.500 $ 8.500
Income from investment operations:
Net investment income (2) 0.558 0.558
Net realized and unrealized gain on investment transactions 2.685 2.675
------------- ---------------
Total from investment operations 3.243 3.233
------------- ---------------
Less dividends:
Dividends from net investment income (0.043) (0.043)
------------- ---------------
Total dividends (0.043) (0.043)
------------- ---------------
Net asset value, end of period $ 11.700 $ 11.690
============= ===============
Total Return (3) 38.31% 38.19%
Ratios and supplemental data:
Net assets, end of period (000 omitted) $ 9 $ 2,763
Ratio of expenses to average net assets 0.75% 0.75%
Ratio of expenses to average net assets prior to expense
limitation 2.18% 1.88%
Ratio of net investment income to average net assets 5.48% 5.48%
Ratio of net investment income to average net assets prior
to expense limitation 4.05% 4.35%
Portfolio turnover 196% 196%
Average commission rate paid (4) $ 0.0600 $ 0.0600
</TABLE>
(1) Date of commencement of trading; ratios have been annualized and total
returns have not been annualized.
(2) Per share information was based on the average shares outstanding method.
(3) Does not include maximum sales charge of 4.75% nor the 1% limited
contingent deferred sales charge that would apply in the event of certain
redemptions within 12 months of purchase of A Class shares.
(4) Computed by dividing the total amount of commissions paid by the total
number of shares purchased and sold during the period for which there was a
commission charged.
See accompanying notes
<PAGE>
DELAWARE GROUP EQUITY FUND V, INC - RETIREMENT INCOME FUND
NOTES TO FINANCIAL STATEMENTS
NOVEMBER 30, 1997
Delaware Group Equity Funds V, Inc. - Retirement Income Fund (the "Fund") is
registered as a diversified open-end investment company under the Investment
Company Act of 1940, as amended. The Fund is organized as a Maryland Corporation
and offers four classes of shares. The Retirement Income Fund A Class carries a
front-end sales charge of 4.75%. The Retirement Income Fund B Class carries a
back-end deferred sales charge. The Retirement Income Fund C Class carries a
level load deferred sales charge and Retirement Income Fund Institutional Class
has no sales charge. As of November 30, 1997 only the Retirement Income Fund A
Class and the Retirement Income Fund Institutional Class have commenced
operations.
The objective of the Fund is to seek to provide investors with high
current income and an investment that has the potential for capital
appreciation.
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. 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 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
<PAGE>
pooled cash account is invested in repurchase agreements secured by obligations
of the U.S. government. The respective collateral is held by the Fund's
custodian bank until the maturity of the respective repurchase agreements. Each
repurchase agreement is at least 100% collateralized. However, in the event of
default or bankruptcy by the counterparty to the agreement, realization of the
collateral may be subject to legal proceedings.
Other- Expenses common to all funds within the Delaware Group of Funds are
allocated amongst the funds on the basis of average net assets. Security
transactions are recorded on the date the securities are purchased or sold
(trade date). Costs used in calculating realized gains and losses on the sale of
investment securities are those of the specific securities sold. Dividend income
is recorded on the ex-dividend date and interest income is recorded on the
accrual basis. 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. (DMC), the Investment Manager of the
Fund, an annual fee which is calculated daily at the rate of; 0.65% of the first
$500 million of average daily net assets, 0.625% of the next $500 million and
0.60% of the average daily net assets in excess of $1 billion. At November 30,
1997 the Fund had a liability for other expenses payable to DMC of $3,812.
DMC has elected to waive that portion if any of the management fee and reimburse
the Fund to the extent that annual operating expenses exclusive of taxes,
interest, distribution fees, brokerage commissions and extraordinary expenses,
exceed 0.75% of average daily net assets of the Fund through April 30, 1998.
Total expenses absorbed by DMC for the period ended November 30, 1997 were
$27,150.
The Fund has engaged Delaware Service Company, Inc. (DSC) and Delaware
Investment Retirement Services, Inc. (DIRSI), affiliates of DMC, to provide
dividend disbursing and transfer agent services. The Fund also engaged DSC to
provide accounting services. For the period ended November 30, 1997, the Fund
expensed $1,295 for dividend disbursing and transfer agent services and $824 for
accounting services. At November 30, 1997, the Fund had a liability for such
fees and other expenses payable to DSC of $2,786.
<PAGE>
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. DDLP has elected voluntarily to
waive its rights to receive 12B-1 Plan fees (including service fees) from the
commencement of operations of A Class shares of the Fund through May 31, 1998.
At November 30, 1997, the Fund had a liability to DDLP of $1,059.
Certain officers of DMC, DSC and DDLP are officers, directors and/or employees
of the Fund. These officers, directors and employees are paid no compensation by
the Fund.
3. Investments
During the period ended November 30, 1997, the Fund made purchases of $6,726,365
and sales of $4,653,219 of investment securities other than U.S. government
securities and temporary cash investments.
At November 30, 1997, the aggregate cost of securities for federal income tax
purposes was $2,493,335.
At November 30, 1997, net unrealized appreciation for federal income tax
purposes aggregated $347,441 of which $359,297 related to unrealized
appreciation of securities and $11,856 related to unrealized depreciation of
securities.
At November 30, 1997 the fund had a payable of $177,500 for securities
purchased.
4. Capital Stock
Transactions in capital stock were as follows:
12/02/96*
to
11/30/97
--------
Shares sold:
Retirement Income Fund A Class 742
Retirement Income Fund Institutional Class 235,295
-------
236,037
Shares issued upon reinvestment of dividends from net investment
income:
Retirement Income Fund A Class -
Retirement Income Fund Institutional Class 1,137
-------
1,137
-------
Net Increase 237,174
=======
* Date of commencement of trading
<PAGE>
5. Market and Credit Risks
The Fund may invest up to 15% of its total assets in illiquid securities which
may include securities with contractual restrictions on resale, securities
exempt from registration under Rule 144A of the Securities Act of 1933, as
amended, and other securities which may not be readily marketable. The relative
illiquidity of some of these securities may adversely affect the Fund's ability
to dispose of such securities in a timely manner and at a fair price when it is
necessary to liquidate such securities.
6. Subsequent Events
The Fund declared a distribution of $0.57 per share from net investment income
for A Class and Institutional Class and $1.20 per share from net realized
capital gains for A Class and Institutional Class payable on December 30, 1997
to shareholders of record December 19,1997. The ex-dividend date was December
22, 1997.
<PAGE>
Report of Independent Auditors
To the Shareholders and Board of Directors
Delaware Group Equity Funds V, Inc. - Retirement Income Fund
We have audited the accompanying statement of net assets of Delaware Group
Equity Funds V, Inc. - Retirement Income Fund as of November 30, 1997, and the
related statement of operations, the statement of changes in net assets, and the
financial highlights for the period December 2, 1996 (commencement of
operations) to November 30, 1997. 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 audit.
We conducted our audit in accordance with generally accepted auditing standards.
Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements and financial highlights are
free of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements and
financial highlights. Our procedures included confirmation of securities owned
as of November 30, 1997, 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 audit provides a reasonable basis
for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Delaware Group Equity Funds V, Inc. - Retirement Income Fund at November 30,
1997, and the results of its operations, the changes in its net assets, and the
financial highlights for the period December 2, 1996 (commencement of
operations) to November 30, 1997, in conformity with generally accepted
accounting principles.
Philadelphia, Pennsylvania
January 5, 1998
