DELAWARE GROUP EQUITY FUNDS V INC, N-30D, 2000-01-31

DELAWARE GROUP EQUITY FUNDS V INC
N-30D, 2000-01-31

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<PAGE>

DELAWARE(sm)
INVESTMENTS
-----------

Delaware Small Cap Value Fund

[Growth of Capital Artwork]

Growth
of Capital

1999 ANNUAL REPORT

<PAGE>

A TRADITION OF SOUND INVESTING SINCE 1929

TABLE OF CONTENTS
- -----------------

Letter to Shareholders 1

Performance Summary
Delaware Small Cap
Value Fund 3

Portfolio Management
Review 4

Financial Statements
Statement of Net Assets 7
Financial Highlights 11

A Committment to Our Investors

Experienced
[ ] Our seasoned investment professionals average more than 15 years'
experience.

[ ] For over 70 years, we have managed money in a variety of investment styles
that 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 relatively
conservative investment alternatives within any given asset class.

Consistent
[ ] We believe consistent processes are the best way to seek consistent
investment performance.

[ ] Our commitment to style consistency has earned us the confidence of
discriminating institutional and individual investors to manage
approximately $47 billion in assets as of December 31, 1999.

Comprehensive
[ ] We offer more than 60 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 (24 single-state funds)
o International equity o International fixed-income
o Balanced

o Our funds are available through financial advisers who can offer you
individualized attention and valuable investment advice.

Funds are not FDIC insured and are not guaranteed. It is possible to lose the
principal amount invested.

(C)Delaware Distributors, L.P.

<PAGE>

Dear Shareholder

IN LATE APRIL AND MAY,
MARKET GAINS EXTENDED
TO A MUCH BROADER
RANGE OF STOCKS.

[Growth of Capital
Artwork]

December 18, 1999

Recap of Events -- Last winter, as the world's economic outlook improved,
investors made safety less of a priority. During the first quarter of 1999,
demand for safe haven investments like U.S. Treasury bonds declined. Large
company stocks tracked by the Standard & Poor's 500 Index and the Dow Jones
Industrial Average benefited from renewed investor interest, advancing to record
highs in March and April.

Though key stock market indexes moved steadily higher, until the middle of
April gains were limited to a very "narrow" group of large, well-known growth
companies and to technology companies. This left many smaller, undervalued
companies like those in the Delaware Small Cap Value Fund portfolio on the
sidelines.

In late April and May, market gains extended to a much broader range of stocks
as a pick up in global economic activity bolstered the performance of cyclical
and energy stocks.Delaware Small Cap Value Fund performed well in this
environment, outperforming the S&P 500 by a wide margin in April and surpassing
both the S&P 500 and the Dow Jones Industrial Average in May.

In June, stronger global demand for U.S. goods and services led to inflation
concerns, setting the stage for volatile stock market conditions throughout the
summer. As expected, the Federal Reserve attempted to dampen economic growth and
thus stem inflation with three interest rate hikes during the summer and fall of
1999. As interest rates went up, many stocks hit another stumbling block as
investors once again focused almost exclusively on technology stocks or large
company stocks with a reliable track record of earnings growth.

<TABLE>
<CAPTION>
Performance Overview

For Periods Ended November 30, 1999 *From June 24, 1987
Average Annual Total Returns at Net Asset Value 12 Months to November 30, 1999
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Delaware Small Cap Value Fund Class A -2.51% +12.82%
Russell 2000 Index +12.60% +10.34%
Lipper Small Cap Value Fund Average +5.17% (306 Funds) +9.40% (17 Funds)
- -----------------------------------------------------------------------------------------------------------------
</TABLE>

All performance shown above is at net asset value without the effect of sales
charges and assumes reinvestment of dividends and capital gains. Performance for
all Delaware Small Cap Value Fund classes can be found on page 3. The unmanaged
Russell 2000 Index is a measure of small company stocks. The Lipper category
represents the average returns of small cap value Funds tracked by Lipper
Analytical. Source: Lipper Analytical Services, Inc. You cannot invest directly
in an Index. Past performance does not guarantee future results.

While investing in small company stocks may offer greater appreciation potential
than other types or classes of securities, they generally involve greater
investment risk.

*Fund inception date.

1
<PAGE>

[growth of Capital
Artwork]

WE BELIEVE THAT AS THE
WORLD'S ECONOMIES
CONTINUE TO RECOVER, A
WIDER RANGE OF
COMPANIES MAY BEGIN TO
SHARE IN THE STOCK
MARKET'S APPRECIATION POTENTIAL.

Delaware Small Cap Value Fund focuses on less expensive stocks from smaller,
under-recognized companies. This meant that we couldn't invest in many of the
stock market's best performers, which were primarily very large growth companies
and technology companies.

Our investment strategy worked well in April and May of 1999, when undervalued
stocks outperformed higher-priced growth stocks. Many of the Fund's cyclical
holdings, whose performance is closely tied to ups and downs in the economy,
benefited from stronger worldwide demand for goods and services.

Unfortunately, this more favorable market trend did not take a firm hold, making
this a disappointing year in terms of total return. Over its lifetime, however,
Delaware Small Cap Value Fund has outpaced its benchmark, the Russell 2000 Index
and the average return of other funds following a similar investment style.

Market Outlook -- We remain committed to Delaware Small Cap Value Fund's "value"
philosophy through favorable and unfavorable market environments. In the pages
that follow, your Fund's portfolio manager, Christopher S. Beck, reviews
Delaware Small Cap Value Fund's 1999 performance, discusses some of the Fund's
holdings and provides his outlook for the coming months.

We believe that as the world's economies continue to recover, a wider range of
companies may begin to share in the stock market's appreciation potential. We
have positioned Delaware Small Cap Value Fund for this scenario and hope to
provide you with more encouraging results next May.

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

<PAGE>

Delaware Small Cap Value Fund

FUND BASICS
- -----------

Fund Objectives
Seeks capital appreciation. The Fund attempts to achieve its objective by
investing primarily in common stocks of small companies whose market values
appear low relative to their underlying value or future potential.

Assets Under Management
$324 Million

Number of Holdings
84

Fund Start Date
June 24, 1987

Your Fund Manager
Christopher S. Beck earned a bachelor's degree at the University of Delaware and
an MBA degree at Lehigh University. He joined Delaware Investments in 1997. Mr.
Beck previously served as a vice president at Pitcairn Trust Company, where he
managed small-capitalization stocks and analyzed equity sectors. Before that he
was chief investment officer of the University of Delaware and held management
positions at Cypress Capital Management and Wilmington Trust Company. Mr. Beck
is a Chartered Financial Analyst.

NASDAQ Symbols
Class A DEVLX
Class B DEVBX
Class C DEVCX

[Growth of Capital Artwork]

FUND PERFORMANCE
- ----------------

Growth of a $10,000 Investment
December 1, 1989 through November 30, 1999
- --------------------------------------------------------------------------------
Russell 2000 Delaware Small Cap Value A Lipper Small Cap Value
Fund A Class Fund Average
Period End
11/30/1989 10,000 9,427 10,000
02/28/1990 9,447 8,716 9,426.81
05/31/1990 10,170 9,377 10,043.99
08/31/1990 8,445 8,314 8,628.29
11/30/1990 7,776 7,934 8,045.52
02/28/1991 9,798 9,393 9,761.30
05/31/1991 10,955 10,419 10,702.61
08/31/1991 11,078 11,163 10,970.59
11/30/1991 10,928 11,393 10,821.12
02/29/1992 13,132 13,357 12,781.72
05/31/1992 12,426 12,804 12,404.02
08/31/1992 11,907 12,717 12,089.93
11/30/1992 13,529 14,012 13,280.63
02/28/1993 14,139 15,300 14,090.67
05/31/1993 14,824 15,698 14,498.06
08/31/1993 15,775 16,377 15,095.21
11/30/1993 16,096 16,617 15,405.07
02/28/1994 17,105 17,477 16,387.16
05/31/1994 16,117 16,900 15,703.58
08/31/1994 16,711 16,992 16,182.00
11/30/1994 15,917 16,156 15,612.57
02/28/1995 16,808 16,364 16,402.18
05/31/1995 17,776 17,244 17,255.38
08/31/1995 20,184 18,501 18,797.14
11/30/1995 20,451 19,449 18,862.02
02/29/1996 21,621 20,410 19,744.86
05/31/1996 24,156 21,776 21,774.34
08/31/1996 22,369 21,417 21,123.04
11/30/1996 23,828 23,159 22,749.05
02/28/1997 24,336 25,053 24,007.74
05/31/1997 25,839 27,004 25,516.34
08/31/1997 28,846 30,259 29,042.50
11/30/1997 29,405 31,585 29,948.91
02/28/1998 31,625 33,101 31,651.17
05/31/1998 31,328 33,032 32,520.94
08/31/1998 23,249 24,728 24,819.47
11/30/1998 27,458 29,224 27,553.09
02/28/1999 27,152 27,612 26,247.88
05/31/1999 30,485 30,868 29,309.30
08/31/1999 29,843 29,875 28,698.85
11/30/1999 31,720 28,490 28,149.98
- --------------------------------------------------------------------------------

<PAGE>

Chart assumes $10,000 invested on December 1, 1989. Fund performance includes
the effect of a 5.75% sales charge and reinvestment of dividends and capital
gains. Performance for other Fund classes will vary due to different charges and
expenses. Past performance does not guarantee future results.

Average Annual Returns
Through November 30, 1999
<TABLE>
<CAPTION>
Lifetime Ten Years Five Years One Year
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A (Est. 6/24/87)
Excluding Sales Charge +12.82% +11.69% +12.01% -2.51%
Including Sales Charge +12.29% +11.04% +10.69% -8.10%
- ------------------------------------------------------------------------------------------------------------------------------------
Class B (Est. 9/6/94)
Excluding Sales Charge +9.66% +11.24% -3.18%
Including Sales Charge +9.53% +10.98% -8.02%
- ------------------------------------------------------------------------------------------------------------------------------------
Class C (Est. 11/29/95)
Excluding Sales Charge +9.54% -3.19%
Including Sales Charge +9.54% -4.15%
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

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 their original share price. Past
performance does not guarantee future results. Performance excluding sales
charges for B and C Classes assumes contingent sales charges did not apply or
the investment was not redeemed.

Class A shares have a front-end maximum sales charge of 5.75% 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, and a deferred sales charge of up to 5% if
redeemed before the end of the sixth year.

Class C shares have a 1% annual distribution service fee. If shares are 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 11/30/99 for Delaware Small Cap Value Fund's
Institutional Class were +13.02%, +11.93%, +12.35% and -2.23%. The Institutional
Class (Est. 11/9/92) is available without sales only to certain eligible
institutional accounts. Performance prior to 11/9/92 is based on Class A
performance, adjusted to eliminate the sales charges, but not the asset-based
distribution charges.

NASDAQ Symbol Institutional Class DEVIX

While investing in small company stocks may offer greater appreciation potential
than other types or classes of securities, it generally involves greater
investment risk.

<PAGE>

[Growth of Capital Artwork]

Christopher S. Beck
Senior Portfolio Manager
December 18, 1999

Delaware Small Cap Value Fund's Sector Diversification
As of November 30, 1999

PIECHART

Technology 9.8%
REITs 7.6%
Consumer Services 9.4%
Transportation 4.6%
Health Care 4.3%
Business Services 2.3%
Utilities 1.7%
Cash 0.3%
Energy 9.7%
Financial Services 15.6%
Capital Goods 10.5%
Basic Industry 11.3%
Consumer Cyclicals & Staples 12.9%

Portfolio Highlights
Number of Stocks 84
- --------------------------------------
Median Market
Capitalization $815.8 million
- --------------------------------------

PORTFOLIO MANAGEMENT REVIEW
- ---------------------------

The Fund's Results
Given the turmoil in overseas markets over the last several years, the U.S., by
default, became one of the world's havens for foreign investors, who tend to
prefer larger and more recognizable companies. This was one of the key forces
behind the continued dominance of larger growth companies. Throughout 1999,
foreign and U.S. investors, were willing to pay more for large growth companies
with a track record for meeting or exceeding their earnings estimates.

Delaware Small Cap Value Fund's stock selection strategy runs counter to these
prevailing market trends, making the past year challenging for our Fund and
others that focus on the small-cap value sector of the stock market. However,
markets typically move in cycles. Last April and May we saw a broader range of
companies participate in the market's gains. We believe continued global
economic recovery could bring a return of this market environment and
benefit undervalued small company stocks.

Portfolio Highlights
We found a diamond in the rough with Zale Corp. when the company's stock fell in
1997. Zale Corp., a jewelry retailer that owns and operates the Zales, Gordon's
Jewelers and Bailey, Banks and Biddle chains, is currently Delaware Small Cap
Value Fund's largest holding and one of its best performers. By generating
strong cash flow, Zales has been able to consistently open new stores, buy back
its own stock, pay down its debt and acquire other jewelry retailers,
positioning the company for continued strength.

We were also pleased with the performance of BJ Services, a company that
provides a variety of services to help companies get oil out of the ground. BJ
Services rebounded strongly from its low in November of 1998 as rising worldwide
demand for oil led to stronger pricing and higher demand for oil service
companies. Shortly after the close of your Fund's fiscal year, we sold our
holdings at a profit because the company outgrew Delaware Small Cap Value Fund's
size and value criteria.

Rising interest rates over the summer of 1999 created problems for D.R. Horton,
a homebuilder in the Delaware Small Cap Value Fund portfolio. Investors seemed
concerned that higher interest rates would reduce the pace of new home
construction. Although we don't expect interest rates to significantly reduce
housing starts, we do anticipate a slight decline. Since housing starts have
been running at a record pace, in our opinion, a slight reduction should not
have major impact on the profitability of homebuilders.

<PAGE>

WE'VE BEEN ABLE TO ADD
HIGH QUALITY COMPANIES
TO OUR PORTFOLIO AT
INEXPENSIVE PRICES.

Outlook
Three rate hikes during the summer and fall of 1999 essentially brought us back
to where we were a year ago, before the Federal Reserve tilted its interest rate
policy in favor of economic growth as a means to compensate for the global
recession. After a relatively successful transition to the year 2000, we think
the Fed may raise rates again to slow the pace of U.S. economic growth.

An area of concern for the Federal Reserve Board has been rising U.S. labor
costs. However, a government report released in early December showed that U.S.
labor costs fell for the first time in more than two years, which may help
reduce the need for additional interest rate hikes in the near future (Source:
Bloomberg Business News).

Because the market has been so narrowly focused on a few large growth and
technology stocks, we've been able to add high quality companies to our
portfolio at inexpensive prices. Over the next several months, we may invest
more of Delaware Small Cap Value Fund's assets in financial stocks. Due to
rising interest rates over the summer and fall, prices for a number of financial
services companies fell and now meet the Fund's value criteria. We believe it
may make sense to take advantage of these lower prices and increase our
financial allocation.

We expect the global recovery that began in 1999 to continue throughout 2000.
This could lead to a broader market environment like we experienced last April
and May. If investors once again become more confident in the earnings prospects
of smaller, undervalued companies, we anticipate stronger performance for
Delaware Small Cap Value Fund in the coming year.

Value Indicators
November 30, 1999

Delaware Small Cap
Value Fund S&P 500 Index
- --------------------------------------------------------------------------------
Beta 0.85 1.0
- --------------------------------------------------------------------------------
Price-To-Earnings Ratio 14.1x 29.2x
- --------------------------------------------------------------------------------
Median Price-To-Book Ratio 1.8x 6.81x
- --------------------------------------------------------------------------------
Dividend Yield
(Before Fund Expenses) 1.68% 1.28%
- --------------------------------------------------------------------------------

The above yield represents the weighted average dividend yield of the Fund's
holdings exclusive of transaction costs. Delaware Small Cap 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 is based on analysts' earnings estimates
for 2000 as reported by First Call. Beta is a measure of volatility relative to
the S&P 500 Index for the past three years ended October 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.

<PAGE>

Statement of Net Assets

Delaware Group Equity Funds V -- DELAWARE SMALL CAP VALUE FUND

November 30, 1999
Number of Market
Shares Value
- --------------------------------------------------------------------------------
Common Stock - 99.75%
Aerospace & Defense - 1.02%
Cordant Technologies ................................ 113,200 $ 3,296,950
-----------
3,296,950
-----------
Automobiles & Automotive Parts - 4.26%
Arvin Industries .................................... 144,900 3,848,906
Borg-Wagner Automotive .............................. 158,398 6,415,121
CLARCOR ............................................. 201,800 3,506,275
-----------
13,770,302
-----------
Banking, Finance & Insurance - 15.52%
*Avis Rent-A-Car ..................................... 235,700 4,507,763
Banknorth Group ..................................... 121,000 3,675,375
Bank United ......................................... 70,500 2,504,953
Colonial Bancgroup .................................. 68,400 782,325
+Enhance Financial Services Group .................... 217,100 3,717,838
Everest Reinsurance Holdings ........................ 124,770 2,963,288
*Farm Family Holdings ................................ 89,700 3,655,275
*+Financial Federal ................................... 209,750 4,339,203
+Horace Mann Educators ............................... 156,000 3,422,250
Liberty Financial Companies ......................... 110,400 2,594,400
+North Fork Bancorporation ........................... 321,550 6,471,194
+Peoples Heritage Financial Group .................... 166,600 2,837,406
Radian Group ........................................ 71,700 3,504,338
Westamerica Bancorporation .......................... 166,700 5,240,631
-----------
50,216,239
-----------
Buildings & Materials - 2.24%
D.R. Horton ......................................... 328,600 4,518,250
*Griffon ............................................. 354,600 2,725,988
-----------
7,244,238
-----------
Business Services - 2.24%
*+Metamor Worldwide ................................... 130,000 3,432,813
*Modis Professional Services ......................... 357,200 3,817,575
-----------
7,250,388
-----------
Chemicals - 5.46%
CK Witco ............................................ 222,300 2,375,831
+Hanna (M.A.) ........................................ 232,700 2,428,806
OM Group ............................................ 120,000 4,050,000
*+Scotts .............................................. 219,200 8,809,099
-----------
17,663,736
-----------
Computers & Technology - 4.39%
*+Metro Information Services .......................... 176,000 2,618,000
*+Synopsys ............................................ 160,100 11,582,232
-----------
14,200,232
-----------
Electronics & Electrical Equipment - 1.69%
*Etec Systems ........................................ 126,800 5,456,363
-----------
5,456,363
-----------

<PAGE>

Number of Market
Shares Value
- --------------------------------------------------------------------------------
Common Stock continued
Energy - 9.68%
*+BJ Services ......................................... 96,000 $ 3,348,000
*Forest Oil .......................................... 165,200 1,889,475
Helmerich & Payne ................................... 23,600 533,950
*Louis Dreyfus Natural Gas ........................... 104,300 1,877,400
Nicor ............................................... 167,800 5,820,563
NUI ................................................. 102,500 2,581,719
*+Ocean Energy ........................................ 269,700 2,056,463
*Oceaneering International ........................... 194,700 2,531,100
*Santa Fe Snyder ..................................... 484,300 3,874,400
*Titan Exploration ................................... 390,700 1,391,869
*Tom Brown ........................................... 146,800 1,720,313
+Valero Energy ....................................... 178,700 3,708,025
-----------
31,333,277
-----------
Engineering & Construction - 2.26%
*Jacobs Engineering Group ............................ 233,000 7,324,937
-----------
7,324,937
-----------
Food, Beverage & Tobacco - 5.97%
Corn Products ....................................... 174,400 5,471,800
*+Suiza Foods ......................................... 150,000 5,390,625
Universal Foods ..................................... 398,300 8,463,874
-----------
19,326,299
-----------
Healthcare & Pharmaceuticals - 4.29%
*AmeriSource Health-Class A .......................... 90,400 1,118,700
*Conmed .............................................. 107,800 2,718,581
*Trigon Healthcare ................................... 135,700 3,994,669
*Varian Associates ................................... 231,000 6,034,875
-----------
13,866,825
-----------
Hotels/Diversified REITs - 0.31%
Meristar Hospitality ................................ 65,698 1,018,323
-----------
1,018,323
-----------
Industrial Machinery - 6.00%
*Circor International ................................ 62,650 681,319
+Harsco .............................................. 95,300 2,841,131
Hussmann International .............................. 213,400 3,641,138
+IDEX ................................................ 151,700 4,181,231
+Milacron ............................................ 270,900 3,944,981
Regal-Beloit ........................................ 186,700 4,107,400
-----------
19,397,200
-----------
Manufactured Housing REITs - 0.73%
+Chateau Communities ................................. 91,307 2,373,982
-----------
2,373,982
-----------
Metals & Mining - 1.41%
*Mueller Industries .................................. 126,500 4,554,000
-----------
4,554,000
-----------

<PAGE>

Statement of Net Assets (continued)

Number of Market
Delaware Small Value Fund Shares Value
- --------------------------------------------------------------------------------
Common Stock continued
Office/Industrial REITs - 5.04%
Cabot Industrial Trust .............................. 235,100 $ 4,319,963
Duke Realty Investments ............................. 134,400 2,486,400
Kilroy Realty ....................................... 140,600 2,671,400
Prentiss Properties Trust ........................... 177,500 3,594,375
+Reckson Associates Realty ........................... 161,600 3,262,300
-----------
16,334,438
-----------
Paper & Forest Products - 3.34%
Caraustar Industries ................................ 147,600 3,602,363
Chesapeake .......................................... 108,500 3,465,219
Rayonier ............................................ 84,200 3,741,638
-----------
10,809,220
-----------
Retail - 7.21%
*BJ's Wholesale Club ................................. 189,500 7,082,562
Casey's General Stores .............................. 300,800 3,844,600
*Zale ................................................ 245,200 12,413,248
-----------
23,340,410
-----------
Retail Strip Centers REITs - 1.75%
New Plan Excel Realty Trust ......................... 120,000 1,950,000
Pan Pacific Retail Properties ....................... 217,500 3,697,500
-----------
5,647,500
-----------
Telecommunications - 1.57%
*+Brightpoint ......................................... 457,900 5,079,828
-----------
5,079,828
-----------
Textiles, Apparel & Furniture - 4.55%
*Furniture Brands International ...................... 215,200 4,196,400
HON Industries ...................................... 162,200 3,507,575
Kellwood ............................................ 189,100 3,923,825
+Wolverine World Wide ................................ 282,400 3,088,750
-----------
14,716,550
-----------
Transportation & Shipping - 4.62%
Alexander & Baldwin ................................. 160,600 3,663,688
*+M.S. Carriers ....................................... 157,800 4,132,388
*Mesaba Holdings ..................................... 235,250 2,903,867
USFreightways ....................................... 101,200 4,231,425
-----------
14,931,368
-----------
Utilities - 1.68%
+California Water Service Group ...................... 91,800 2,903,175
Sierra Pacific Resources ............................ 141,120 2,531,340
-----------
5,434,515
-----------
Miscellaneous - 2.52%
+Federal Signal ...................................... 265,000 4,488,438
+Smith (A.O.) ........................................ 166,100 3,654,200
-----------
8,142,638
-----------
Total Common Stock (cost $291,747,904) .............. 322,729,758
===========

<PAGE>

Market
Value
- --------------------------------------------------------------------------------

Total Market Value of Securities - 99.75%
(cost $291,747,904) ........................................ $322,729,758

Receivables and Other Assets
Net of Liabilities - 0.25% ................................ 804,936
------------
Net Assets Applicable to 13,164,392 Shares
($0.01 par value) Outstanding - 100.00% ................... $323,534,694
============
Net asset value - Delaware Small Cap Value
Fund A Class ($209,885,837 / 8,503,128 shares) ............ $24.68
======
Net asset value - Delaware Small Cap Value
Fund B Class ($76,894,319 / 3,159,285 shares) ............. $24.34
======
Net asset value - Delaware Small Cap Value
Fund C Class ($25,818,072 / 1,061,532 shares) ............. $24.32
======
Net asset value - Delaware Small Cap Value
Fund Institutional Class
($10,936,466 / 440,447 shares) ............................ $24.83
======
- --------------
* Non-income producing security for the year ended November 30, 1999.
+ Security is partially or fully on loan.
REITs - Real Estate Investment Trusts
Top Ten Holdings, representing 24.86% of net assets, are in boldface.

Components of Net Assets at November 30, 1999:
Common stock, $0.01 par value, 500,000,000 shares
authorized to the Fund with 150,000,000 shares
allocated to Delaware Small Cap Value Fund
A Class, 100,000,000 shares allocated to
Delaware Small Cap Value Fund B Class,
50,000,000 shares allocated to Delaware
Small Cap Value Fund C Class, and 50,000,000
shares allocated to Delaware Small Cap
Value Fund Institutional Class ............................ $288,305,809
Undistributed net investment income ......................... 591,136
Accumulated net realized gain on investments ................ 3,657,580
Net unrealized appreciation of investments
and foreign currencies ..................................... 30,980,169
------------
Total net assets ............................................ $323,534,694
============
Net Asset Value And Offering Price Per Share -
Delaware Small Cap Value Fund A Class
Net asset value A Class (A) ................................. $24.68
Sales Charge (5.75% of offering price or 6.12%
of the amount invested per share) (B) ....................... 1.51
======
Offering Price .............................................. $26.19
======
- --------------
(A) Net asset value per share, as illustrated, is the estimated amount which
would be paid upon redemption or repurchase of shares.
(B) See the current prospectus for purchases of $50,000 or more.

See accompanying notes

<PAGE>

Statement of Operations

Delaware Group Equity Funds V

Year Ended November 30, 1999 Delaware Small Cap Value Fund
- --------------------------------------------------------------------------------
Investment Income:
Interest .......................................... $ 905,109
Dividends ......................................... 7,571,254 $8,476,363
---------- ----------

Expenses:
Management fees ................................... 3,203,991
Distribution expense .............................. 1,871,506
Dividend disbursing, transfer agent fees and
other expenses .................................. 1,461,432
Accounting and administration ..................... 187,142
Registration fees ................................. 134,500
Professional fees ................................. 117,500
Reports and statements to shareholders ............ 270,000
Taxes (other than taxes on income) ................ 58,000
Custodian fees .................................... 17,100
Trustees' fees .................................... 11,030
Other ............................................. 113,308
---------
7,445,509

Less expenses paid indirectly ..................... (9,823)
---------
Total expenses .................................... 7,435,686
----------

Net Investment Income ............................. 1,040,677
----------
Net Realized and Unrealized Gain (Loss) on
Investments and Foreign Currencies:
Net realized gain on investments .................. 5,502,762
Net change in unrealized appreciation/depreciation
of investments and foreign currencies ........... (10,581,298)
-----------

Net Realized and Unrealized Loss on Investments
and Foreign Currencies .......................... (5,078,536)
-----------
Net Decrease in Net Assets Resulting from Operations . $(4,037,859)
============

See accompanying notes

<PAGE>

Statements of Changes in Net Assets

Delaware Group Equity Funds V

<TABLE>
<CAPTION>
Delaware Small Cap Value Fund
- ------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30,

1999 1998
<S> <C> <C>
Increase (Decrease) in Net Assets from Operations:
Net investment income ...................................................................... $ 1,040,677 $2,791,464
Net realized gain (loss) on investments .................................................... 5,502,762 (1,782,359)
Net change in unrealized appreciation/depreciation of investments and foreign currencies ... (10,581,298) (46,031,653)
------------ ------------
Net decrease in net assets resulting from operations ....................................... (4,037,859) (45,022,548)
------------ ------------
Distributions to Shareholders from:
Net investment income:
A Class .................................................................................. (1,721,074) (1,285,317)
B Class .................................................................................. -- --
C Class .................................................................................. -- --
Institutional Class ...................................................................... (1,089,465) (110,446)

Net realized gain on investments:
A Class .................................................................................. -- (19,279,760)
B Class .................................................................................. -- (3,029,492)
C Class .................................................................................. -- (944,203)
Institutional Class ...................................................................... -- (1,054,260)
------------ ------------
(2,810,539) (25,703,478)
------------ ------------
Capital Share Transactions:
Proceeds from shares sold:
A Class .................................................................................. 76,804,025 205,546,496
B Class .................................................................................. 27,414,619 64,897,563
C Class .................................................................................. 10,549,758 26,227,243
Institutional Class ...................................................................... 25,868,388 127,407,635

Net asset value of shares issued upon reinvestment of distributions from net investment
income and net realized gain on investments:
A Class .................................................................................. 1,620,211 19,744,279
B Class .................................................................................. -- 2,863,324
C Class .................................................................................. -- 899,118
Institutional Class ...................................................................... 1,085,627 1,160,155
------------ ------------
143,342,628 448,745,813
------------ ------------
Cost of shares repurchased:
A Class .................................................................................. (132,175,379) (179,392,003)
B Class .................................................................................. (31,339,508) (12,271,145)
C Class .................................................................................. (14,640,829) (4,573,233)
Institutional Class ...................................................................... (134,866,200) (17,144,933)
------------ ------------
(313,021,916) (213,381,314)
------------ ------------
Increase (decrease) in net assets derived from capital share transactions .................. (169,679,288) 235,364,499
------------ ------------
Net Increase (Decrease) in Net Assets ...................................................... (176,527,686) 164,638,473

Net Assets:
Beginning of year .......................................................................... 500,062,380 335,423,907
------------ ------------
End of year ................................................................................ $323,534,694 $500,062,380
============ ============
</TABLE>

See accompanying notes

<PAGE>

Financial Highlights

Delaware Group Equity Funds V

Selected data for each share of the Fund outstanding throughout each year were as follows:

Delaware Small Cap Value Fund A Class
- ------------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30,
1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year ......................... $ 25.480 $ 29.790 $ 25.780 $ 22.760 $ 19.320

Income (loss) from investment operations:
Net investment income(1) ................................. 0.098 0.215 0.131 0.122 0.253
Net realized and unrealized gain (loss) on investments
and foreign currencies .................................. (0.735) (2.285) 7.914 4.028 3.597
----------------------------------------------------------
Total from investment operations ......................... (0.637) (2.070) 8.045 4.150 3.850
----------------------------------------------------------
Less dividends and distributions:
Dividends from net investment income ..................... (0.163) (0.140) (0.135) (0.240) (0.160)
Distributions from net realized gain on investments ...... -- (2.100) (3.900) (0.890) (0.250)
----------------------------------------------------------
Total dividends and distributions ........................ (0.163) (2.240) (4.035) (1.130) (0.410)
----------------------------------------------------------

Net asset value, end of year ............................... $ 24.680 $ 25.480 $ 29.790 $ 25.780 $ 22.760
==========================================================

Total return(2) ............................................ (2.51%) (7.47%) 36.38% 19.08% 20.39%

Ratios and supplemental data:
Net assets, end of year (000 omitted) .................... $209,886 $271,192 $268,266 $192,297 $177,011
Ratio of expenses to average net assets .................. 1.60% 1.39% 1.39% 1.45% 1.48%
Ratio of net investment income to average net assets ..... 0.38% 0.81% 0.51% 0.51% 1.18%
Portfolio turnover ....................................... 37% 38% 53% 87% 65%

</TABLE>

- ----------------
(1) Per share information for the years ended November 30, 1996, 1997 and 1999
was based on the average shares outstanding method.
(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

<PAGE>

Financial Highlights (continued)

Delaware Group Equity Funds V

Selected data for each share of the Fund outstanding throughout each year were as follows:

Delaware Small Cap Value Fund B Class
- ------------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30,
1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year ............................ $25.140 $29.460 $25.570 $22.590 $19.300

Income (loss) from investment operations:
Net investment income (loss)(1) ............................. (0.081) 0.052 (0.042) (0.041) 0.141
Net realized and unrealized gain (loss) on investments
and foreign currencies .................................... (0.719) (2.272) 7.832 4.006 3.549
----------------------------------------------------------
Total from investment operations ............................ (0.800) (2.220) 7.790 3.965 3.690
----------------------------------------------------------

Less dividends and distributions:
Dividends from net investment income ........................ -- -- -- (0.095) (0.150)
Distributions from net realized gain on investments ......... -- (2.100) (3.900) (0.890) (0.250)
----------------------------------------------------------
Total dividends and distributions ........................... -- (2.100) (3.900) (0.985) (0.400)
----------------------------------------------------------

Net asset value, end of year .................................. $24.340 $25.140 $29.460 $25.570 $22.590
==========================================================

Total return(2) ............................................... (3.18%) (8.08%) 35.36% 18.26% 19.55%

Ratios and supplemental data:
Net assets, end of year (000 omitted) ....................... $76,894 $83,899 $39,733 $12,730 $ 5,788
Ratio of expenses to average net assets ..................... 2.30% 2.09% 2.09% 2.15% 2.18%
Ratio of net investment income (loss) to average net assets . (0.32%) 0.11% (0.19%) (0.19%) 0.48%
Portfolio turnover .......................................... 37% 38% 53% 87% 65%

</TABLE>

- ----------------
(1) Per share information for the years ended November 30, 1996, 1997, and 1999
was based on the average shares outstanding method.
(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

<PAGE>

Financial Highlights (continued)

Delaware Group Equity Funds V

Selected data for each share of the Fund outstanding throughout each year were as follows:

Delaware Small Cap Value Fund C Class
- ------------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, Period
11/29/95(1) to
1999 1998 1997 1996 11/30/95
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period ........................... $25.120 $29.440 $25.550 $22.760 $22.510

Income (loss) from investment operations:
Net investment income (loss)(2) .............................. (0.081) 0.036 (0.033) (0.043) --
Net realized and unrealized gain (loss) on investments
and foreign currencies ..................................... (0.719) (2.256) 7.823 4.003 0.250
------------------------------------------------------------
Total from investment operations ............................. (0.800) (2.220) 7.790 3.960 0.250
------------------------------------------------------------
Less dividends and distributions:
Dividends from net investment income ......................... -- -- -- (0.280) --
Distributions from net realized gain on investments .......... -- (2.100) (3.900) (0.890) --
------------------------------------------------------------
Total dividends and distributions ............................ -- (2.100) (3.900) (1.170) --
------------------------------------------------------------

Net asset value, end of period ................................. $24.320 $25.120 $29.440 $25.550 $22.760
============================================================

Total return(3) ................................................ (3.19%) (8.08%) 35.40% 18.23% (4)
Ratios and supplemental data:
Net assets, end of period (000 omitted) ...................... $25,818 $31,041 $12,547 $3,360 $5
Ratio of expenses to average net assets ...................... 2.30% 2.09% 2.09% 2.15% (4)
Ratio of net investment income (loss) to average net assets .. (0.32%) 0.11% (0.19%) (0.19%) (4)
Portfolio turnover ........................................... 37% 38% 53% 87% (4)

</TABLE>

- -----------------
(1) Date of initial public offering.
(2) Per share information for the years ended November 30, 1996, 1997 and 1999
was based on the average shares outstanding method.
(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.
(4) The ratios of expenses and net investment income (loss) 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

<PAGE>

Financial Highlights (continued)

Delaware Group Equity Funds V

Selected data for each share of the Fund outstanding throughout each year were as follows:

Delaware Small Cap Value Fund Institutional Class
- ------------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30,

1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year ........................... $25.640 $ 29.950 $25.910 $22.860 $19.400

Income (loss) from investment operations:
Net investment income(1) ................................... 0.174 0.160 0.209 0.193 0.297
Net realized and unrealized gain (loss) on investments
and foreign currencies ................................... (0.741) (2.150) 7.936 4.047 3.628
-----------------------------------------------------------
Total from investment operations ........................... (0.567) (1.990) 8.145 4.240 3.925
-----------------------------------------------------------
Less dividends and distributions:
Dividends from net investment income ....................... (0.243) (0.220) (0.205) (0.300) (0.215)
Distributions from net realized gain on investments ........ -- (2.100) (3.900) (0.890) (0.250)
-----------------------------------------------------------
Total dividends and distributions .......................... (0.243) (2.320) (4.105) (1.190) (0.465)
-----------------------------------------------------------

Net asset value, end of year ................................. $24.830 $ 25.640 $29.950 $25.910 $22.860
===========================================================

Total return(2) .............................................. (2.23%) (7.16%) 36.73% 19.45% 20.76%

Ratios and supplemental data:
Net assets, end of year (000 omitted) ...................... $10,936 $113,930 $14,878 $16,373 $ 7,294
Ratio of expenses to average net assets .................... 1.30% 1.09% 1.09% 1.15% 1.18%
Ratio of net investment income to average net assets ....... 0.68% 1.11% 0.81% 0.81% 1.48%
Portfolio turnover ......................................... 37% 38% 53% 87% 65%
</TABLE>

- ---------------
(1) Per share information for the years ended November 30, 1996, 1997 and 1999
was based on the average shares outstanding method.
(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

13
<PAGE>

Notes to Financial Statements

November 30, 1999 Delaware Small Cap Value Fund
- --------------------------------------------------------------------------------
Delaware Group Equity Funds V (the "Company") is registered as a diversified
open-end investment company under the Investment Company Act of 1940, as
amended. The Company is organized as a Delaware Business Trust and offers four
Funds: the Delaware Small Cap Value Fund, the Delaware Mid Cap Value Fund, the
Delaware Small Cap Contrarian Fund, and the Delaware Retirement Income Fund.
These financial statements and related notes pertain to the Delaware Small Cap
Value Fund (the "Fund"). The Fund offers four classes of shares. The Delaware
Small Cap Value Fund A Class carries a 5.75% front-end sales charge. The
Delaware Small Cap Value Fund B Class carries a back-end deferred sales charge.
The Delaware Small Cap Value Fund C Class carries a level load deferred sales
charge and the Delaware Small Cap Value Fund Institutional Class has no sales
charge.

The Fund's objective is to seek capital appreciation by investing primarily in
common stocks whose market values appear low relative to their underlying value
or future potential.

1. Significant Accounting Policies
The following accounting policies are in accordance with gene rally accepted
accounting principles and are consistently followed by the Fund.

Security Valuation - Securities listed on an exchange are valued at the last
quoted sales price as of the close of the NYSE on the valuation date. Securities
not traded or securities not listed on an exchange are valued at the mean of the
last quoted bid and asked prices. Money market instruments having less than 60
days to maturity are valued at amortized cost, which approximates market value.
Other securities and assets for which market quotations are not readily
available are valued at fair value as determined in good faith by or under the
direction of the Fund's Board of 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 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 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 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.

<PAGE>

November 30, 1999 Delaware Small Cap Value Fund
- --------------------------------------------------------------------------------
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.

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 Fund expenses are paid through "soft dollar" arrangements with brokers.
These transactions are done subject to best price and execution. The amount of
these expenses was approximately $9,823 for the year ended November 30, 1999. In
addition, the Fund receives earnings credits from its custodian when positive
cash balances are maintained, which are used to offset custody fees. There were
no earnings credits for the year ended November 30, 1999. 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
Effective April 15, 1999, and in accordance with the terms of the Investment
Management Agreement, the Fund pays Delaware Management Company ("DMC"), the
Investment Manager of the Fund, an annual fee, which is calculated daily at 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 $1,500 million and 0.60% on
the net assets over $2,500 million, less fees paid to the unaffiliated
directors. Prior to April 15, 1999, the Fund paid DMC an annual fee, which was
calculated daily at the rate of 0.75% of the average daily net assets of the
Fund, less fees paid to the unaffiliated directors. At November 30, 1999, the
Fund had a liability for Investment Management fees and other expenses payable
to DMC of $342,107.

The Fund has engaged Delaware Service Company, Inc. ("DSC"), an affiliate of
DMC, to provide dividend disbursing, transfer agent and 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 November 30, 1999, the Fund had a liability for such
fees and other expenses payable to DSC of $106,953.

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 Classes. At November 30, 1999, the Fund
had a liability for other expenses payable to DMC and affiliates of $166,508.

<PAGE>

Notes to Financial Highlights (continued)

- --------------------------------------------------------------------------------
For the year ended November 30, 1999, DDLP earned $94,286 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 November 30, 1999, the Fund made purchases of $151,676,513
and sales of $292,944,597 of investment securities other than U.S. government
securities and temporary cash investments.

At November 30, 1999, the aggregate cost of securities for federal income tax
purposes was $291,985,321. At November 30,1999, net unrealized appreciation for
federal income tax purposes aggregated $30,744,437, of which $53,486,912 related
to unrealized appreciation of securities and $22,742,475 related to unrealized
depreciation of securities.

4. Capital Stock
Transactions in capital stock shares were as follows:

Year Ended Year Ended
11/30/99 11/30/98
Shares sold:
A Class ...................................... 2,992,890 7,335,761
B Class ...................................... 1,075,523 2,368,089
C Class ...................................... 414,119 954,136
Institutional Class .......................... 1,014,611 4,539,218

Shares issued upon reinvestment of
distributions from net investment income
and net realized gain on investments:
A Class ...................................... 64,268 720,644
B Class ...................................... -- 105,269
C Class ...................................... -- 33,080
Institutional Class .......................... 42,927 42,218
---------- ----------
5,604,338 16,098,415
---------- ----------
Shares repurchased:
A Class ...................................... (5,197,017) (6,419,595)
B Class ...................................... (1,254,012) (484,073)
C Class ...................................... (588,370) (177,569)
Institutional Class .......................... (5,061,302) (633,955)
---------- -----------
(12,100,701) (7,715,192)
---------- -----------
Net increase (decrease) ........................ (6,496,363) 8,383,223
========== ===========

5. Lines of Credit
The Fund has a committed line of credit for $16,400,000. No amount was
outstanding at November 30,1999, or at any time during the fiscal year.

<PAGE>

Notes to Financial Highlights (continued)

- --------------------------------------------------------------------------------
6. Credit and Market Risk
The Fund may invest up to 10% of its total net 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.

7. Securities Lending
The Fund may participate, along with other funds in the Delaware Investments
Family of Funds, in a Securities 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 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 two tiers by Standard & Poor's Ratings Group or
Moody's Investors 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 loaned
securities and provided such collateral is not the result of investment loss,
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 to brokers and the related cash collateral
received at November 30, 1999 were $30,222,975 and $30,827,435, respectively.
Net income from securities lending activities for the year ended November 30,
1999 was $78,046 and is included in interest income on the Statement of
Operations.

8. 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 2000. Please
consult your tax advisor for proper treatment of this information.

For the fiscal year ended November 30, 1999, the Fund designates as
long-term capital gains and ordinary income distributions paid during the year
as follows:

(A) (B) (C) (D)
Long Term Capital Ordinary Income Total Qualifying
Gains Distributions Distributions Distributions Dividends(1)
(Tax Basis) (Tax Basis) (Tax Basis)
--------------------------------------------------------------------------
-- 100% 100% 100%

* Items (A) and (B) are based on a percentage of the Fund's distributions.
** Item (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 V - Delaware Small Cap Value Fund

We have audited the accompanying statement of net assets of Delaware Small Cap
Value Fund (the "Fund") as of November 30, 1999, 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 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, 1999, 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 Small Cap Value Fund at November 30, 1999, 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 generally accepted accounting
principles.

/s/ Ernst & Young LLP

Philadelphia, Pennsylvania
January 7, 2000

<PAGE>

DELAWARE INVESTMENTS FAMILY OF FUNDS

Complete 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.

[GRAPHIC OMITTED: BUILDING BLOCKS OF A DIVERSIFIED PORTFOLIO "HOUSE"]

Building Blocks of a Diversified Portfolio

GROWTH OF CAPITAL
Aggressive Growth Equity Funds
Growth Equity Funds
o Select Growth Fund
o Trend Fund
o DelCap Fund
o Small Cap Value Fund
o U.S. Growth Fund
o Growth Stock Fund
o Tax-Efficient Equity Fund
o Social Awareness Fund

TOTAL RETURN
Moderate Growth Equity Funds
o Blue Chip Fund
o Devon Fund
o Growth and Income Fund
o Decatur Equity Income Fund
o REIT Fund
o Balanced Fund

INTERNATIONAL AND GLOBAL
International and Global Funds
o Emerging Markets Fund
o New Pacific Fund
o Overseas Equity Fund
o International Equity Fund
o Global Equity Fund
o Global Bond Fund

CURRENT INCOME
Taxable Bond Funds
o Delchester Fund
o High-Yield Opportunities Fund
o Strategic Income Fund
o Corporate Bond Fund
o Extended Duration Bond Fund
o American Government Bond Fund
o U.S. Government Securities Fund
o Limited-Term Government Fund

<PAGE>

TAX-EXEMPT INCOME
Tax-Exempt Bond Funds
o National High-Yield Municipal Bond Fund
o Tax-Free USA Fund
o Tax-Free Insured Fund
o Tax-Free USA Intermediate Fund
o State Tax-Free Funds*

STABILITY OF PRINCIPAL
Stability of Principal
o Cash Reserve
o Tax-Free Money Fund

ASSET ALLOCATION
Asset Allocation Funds
(varying levels of income and growth potential)
o Foundation Funds
Growth Portfolio
Balanced Portfolio
Income Portfolio

*Available for the following states: Arizona, California, Colorado, Florida,
Idaho, Iowa, Kansas, Minnesota, Missouri, Montana, North Dakota, New Jersey,
New Mexico, New York, Ohio, Oregon, Pennsylvania and Wisconsin. Insured and
Intermediate Funds are available in selected states.

<PAGE>

DELAWARE(sm)
INVESTMENTS
- -----------
Philadelphia * 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 Small Cap Value Fund
shareholders, but it may be used with prospective investors when preceded or
accompanied by a current Prospectus for Delaware Small Cap Value 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, Pennsylvania
Chairman
Delaware Investments Family of Funds Jan L. Yeomans International Affiliate
Philadelphia, PA Vice President and Treasurer Delaware International Advisers Ltd.
3M Corporation London, England
Walter P. Babich St. Paul, Minnesota
Board Chairman, Citadel Constructors, Inc. National Distributor
King of Prussia, PA Delaware Distributors, L.P.
AFFILIATED OFFICERS Philadelphia, Pennsylvania
David K. Downes
President and Chief Executive Officer Richard J. Flannery Shareholder Servicing, Dividend
Delaware Investments Family of Funds Executive Vice President Disbursing and Transfer Agent
Philadelphia, PA and General Counsel Delaware Service Company, Inc.
Delaware Investments Family of Funds Philadelphia, Pennsylvania
John H. Durham Philadelphia, PA
Private Investor 1818 Market Street
Horsham, PA Bruce D. Barton Philadelphia, PA 19103-3682
President and Chief Executive Officer
Anthony D. Knerr Delaware Distributors, L.P.
Consultant, Anthony Knerr & Associates Philadelphia, PA
New York, NY

Ann R. Leven
Former Treasurer, National Gallery of Art
Washington, DC

Thomas F. Madison
President and Chief Executive Officer
MLM Partners, Inc.
Minneapolis, MN

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Printed in the USA

(2532)
AR-021 [11/99] PPL 1/00