<PAGE>
- --------------
DELAWARE GROUP
- --------------
PREMIUM FUND
============
SEMI-ANNUAL REPORT
- -------------------
JUNE 30, 1997
DECATUR TOTAL RETURN SERIES
DELCHESTER SERIES
CAPITAL RESERVES SERIES
CASH RESERVES SERIES
DELCAP SERIES
DELAWARE FUND SERIES
INTERNATIONAL EQUITY SERIES
VALUE SERIES
TREND SERIES
GLOBAL BOND SERIES
STRATEGIC INCOME SERIES
DEVON SERIES
EMERGING MARKETS SERIES
CONVERTIBLE SECURITIES SERIES
QUANTUM SERIES
<PAGE>
July 31, 1997
Dear Policyholder:
The first six months of Premium Fund's 1997 fiscal year was an opportune time
to be an investor. Equities provided significant capital appreciation
potential and domestic and global bond markets yielded many income and total
return opportunities.
Below is a comparison of the short-term performance of stocks of large and
small companies, domestic bonds and overseas stocks as measured by unmanaged
indexes. Complete performance information for your Funds, including charges
and expenses, can be found in the financial section of this report.
Aggregate Total Return Six Months Ended June 30, 1997
Standard & Poor's 500 Index +20.60%
Russell 2000 Index +10.17%
Lehman Brothers Government/Corporate Bond Index +2.74%
Morgan Stanley Europe Australia Far East Index +10.35%
Past performance does not guarantee future results. Performance quoted above is
at net asset value and assumes reinvestment of dividends.
As for the U.S. stock market, despite a brief second quarter lull, the
first half of 1997 mirrored its ebullient performance of 1996 amid strong
corporate earnings growth, mild inflation and rising consumer confidence. In
general, shares of large companies significantly outperformed the shares of
smaller companies and value stocks tended to outperform growth stocks.
The most significant shift in the U.S. bond market was the continuing
narrowing of spreads between U.S. Treasuries and high-yield bonds of
comparable maturity. This suggests healthy investor demand for high-yield
issues and an expectation that the credit standings of highly leveraged
companies will remain stable.
Overseas, European equity markets performed well. One of the strongest was
Germany, which is benefiting from corporate earnings growth among major
export-oriented companies such as car manufacturers. The United Kingdom and
France also held up well despite political change. In Japan, we believe
skyrocketing export volume may be a catalyst for future growth.
Emerging equity markets, especially those in Latin America and Eastern
Europe, also offered strong returns. In particular, Mexico and Brazil did
well amid forecasts of buoyant growth and low inflation. The Pacific Rim
region offered mixed results. Thailand performed poorly amid financial sector
instability.
The following pages detail the performance and expenses of each Series.
Remember that your annuity is designed to offer the powerful advantage of
diversification and tax-deferred earnings potential for investors.
Sincerely,
/s/ Wayne A. Stork
- -------------------
Wayne A. Stork
Chairman, President and Chief Executive Officer
Delaware Group Premium Fund, Inc.
1
<PAGE>
Delaware Group Premium Fund, Inc.- Decatur Total Return Series
(Formerly Equity/Income Series)
Statement of Net Assets
June 30, 1997
(Unaudited)
Number Market
of Shares Value
COMMON STOCK-97.38%
Aerospace & Defense-1.37%
General Dynamics..................... 48,500 $ 3,637,500
-----------
3,637,500
-----------
Automobiles & Automotive Parts-4.27%
FORD MOTOR........................... 142,000 5,360,500
General Motors....................... 47,400 2,639,588
ITT Industries....................... 82,800 2,132,100
LucasVarity ADR...................... 33,800 1,170,325
-----------
11,302,513
-----------
Banking, Finance & Insurance-20.89%
American General..................... 98,200 4,689,050
AON.................................. 105,325 5,450,569
Banc One............................. 84,600 4,097,813
Bank of Boston....................... 51,700 3,725,631
CIGNA................................ 23,300 4,135,750
Chase Manhattan...................... 49,600 4,814,300
Crestar Financial.................... 105,700 4,109,088
Fleet Financial Group................ 56,000 3,542,000
Hartford Financial Services 45,000 3,723,750
Mellon Bank.......................... 81,600 3,682,200
Mercantile Bancorporation............ 52,400 3,183,300
Signet Banking....................... 48,500 1,746,000
Summit Bancorp....................... 91,650 4,593,956
U.S. Bancorp......................... 60,000 3,849,375
-----------
55,342,782
-----------
Cable, Media & Publishing-2.79%
Dow Jones & Company.................. 700 28,350
MCGRAW-HILL.......................... 125,400 7,375,088
-----------
7,403,438
-----------
Chemicals-5.91%
DUPONT(E.I.)DENEMOURS................ 102,000 6,413,250
Eastman Chemical..................... 8,900 565,150
Hercules............................. 14,500 694,188
Imperial Chemical ADR................ 77,300 4,396,438
Rhone-Poulenc ADR.................... 86,300 3,592,238
-----------
15,661,264
-----------
<PAGE>
Number Market
of Shares Value
COMMON STOCK (Continued)
Electronics & Electrical Equipment-3.81%
Eaton................................ 58,500 $ 5,107,781
Thomas & Betts....................... 94,900 4,988,181
-----------
10,095,962
-----------
Energy-10.49%
Atlantic Richfield................... 53,000 3,736,500
British Petroleum ADR................ 63,443 4,750,325
Consolidated Natural Gas............. 38,900 2,093,306
Mobil................................ 65,200 4,555,850
Texaco............................... 48,800 5,307,000
USX-Marathon Group................... 102,700 2,965,463
Williams............................. 100,350 4,390,313
-----------
27,798,757
-----------
Environmental Services-3.09%
Browning Ferris...................... 153,100 5,090,575
Waste Management..................... 96,600 3,103,275
-----------
8,193,850
-----------
Food, Beverage & Tobacco-9.43%
Anheuser-Busch....................... 107,500 4,508,281
Fortune Brands....................... 123,900 4,623,019
*Gallagher Group....................... 47,500 875,781
General Mills........................ 1,700 110,713
Heinz (H.J.)......................... 93,800 4,326,525
Philip Morris........................ 99,600 4,419,750
Quaker Oats.......................... 57,000 2,557,875
RJR Nabisco Holdings................. 108,040 3,565,320
-----------
24,987,264
-----------
Healthcare & Pharmaceuticals-13.58%
AMERICAN HOME PRODUCTS............... 84,800 6,487,200
Bausch & Lomb........................ 82,300 3,878,388
BAXTER INTERNATIONAL................. 128,100 6,693,225
BRISTOL-MYERS SQUIBB................. 88,500 7,168,500
Glaxo Wellcome ADR................... 105,900 4,427,944
PHARMACIA & UPJOHN................... 210,700 7,321,825
-----------
35,977,082
-----------
- -------------------
Top 10 stock holdings, representing 25.0% of net assets, are in bold.
2
<PAGE>
Decatur Total Return Series
Statement of Net Assets (Continued)
Number Market
of Shares Value
COMMON STOCK (Continued)
Metals & Mining-1.10%
Freeport-McMoRan Copper & Gold Class B 93,600 $ 2,913,300
------------
2,913,300
------------
Paper & Forest Products-2.09%
Georgia-Pacific...................... 39,500 3,372,313
Temple-Inland........................ 40,040 2,162,160
------------
5,534,473
------------
Retail-2.43%
Eastman Kodak........................ 47,800 3,668,650
May Department Stores................ 58,300 2,754,675
------------
6,423,325
------------
Telecommunications-7.00%
Alltel............................... 75,700 2,531,219
BCE.................................. 127,800 3,578,400
BellSouth............................ 81,300 3,770,288
Frontier............................. 239,100 4,767,056
SBC Communications................... 62,900 3,891,938
------------
18,538,901
------------
Transportation & Shipping-3.95%
Norfolk Southern..................... 38,200 3,848,650
UNION PACIFIC........................ 93,900 6,619,950
------------
10,468,600
------------
<PAGE>
Number Market
of Shares Value
COMMON STOCK (Continued)
Miscellaneous-5.18%
BOC Group............................ 56,000 $ 1,988,000
Block (H&R).......................... 5,900 190,275
Minnesota Mining & Manufacturing 40,600 4,141,200
PITNEY BOWES......................... 103,900 7,402,875
------------
13,722,350
------------
Total Common Stock
(cost $212,048,114).................. 258,001,361
------------
Principal
Amount
REPURCHASE AGREEMENTS-3.53%
With Chase Manhattan 5.80% 7/1/97 (dated
6/30/97, collateralized by $3,286,000
U.S. Treasury Notes 5.375% due 11/30/97,
market value $3,297,182)............... $3,230,000 3,230,000
With J.P. Morgan Securities 5.80% 7/1/97
(dated 6/30/97, collateralized by $3,112,000
U.S. Treasury Notes 5.125% due 4/30/98,
market value $3,123,486)............... 3,055,000 3,055,000
With PaineWebber 5.80% 7/1/97 (dated 6/30/97,
collateralized by $1,934,000 U.S. Treasury Notes
7.25% due 2/15/98, market value $2,033,071
and $1,047,000 U.S. Treasury Notes 9.125%
due 5/15/99, market value $1,114,310).. 3,055,000 3,055,000
Total Repurchase Agreements ------------
(cost $9,340,000).................... 9,340,000
------------
TOTAL MARKET VALUE OF SECURITIES-100.91% (cost $221,388,114)..... 267,341,361
LIABILITIES NET OF RECEIVABLES AND OTHER ASSETS-(0.91%).......... (2,413,438)
------------
NET ASSETS APPLICABLE TO 15,441,237 SHARES ($.01 PAR VALUE) OUTSTANDING;
EQUIVALENT TO $17.16 PER SHARE -100.00%........................$264,927,923
============
COMPONENTS OF NET ASSETS AT JUNE 30, 1997:
Common stock, $.01 par value, 750,000,000 shares authorized
to the Fund with 50,000,000 shares allocated to the Series......$208,562,324
Accumulated undistributed:
Net investment income.......................................... 958,691
Net realized gain on investments............................... 9,453,661
Net unrealized appreciation of investments..................... 45,953,247
------------
Total net assets.................................................$264,927,923
============
- --------------------
*Non-income producing security for the period ended June 30, 1997.
ADR-American Depository Receipt
See accompanying notes
3
<PAGE>
Delaware Group Premium Fund, Inc.-Delchester Series (Formerly High-Yield Series)
Statement of Net Assets
June 30, 1997
(Unaudited)
Principal Market
Amount Value
CORPORATE BONDS-89.45%
Aerospace & Defense-0.09%
Roller Bearing Company of America
sr sub nts 9.625% 6/15/07.................. $ 75,000 $ 76,125
----------
76,125
----------
Automobiles & Automotive Parts-4.26%
Collins & Aikman sr sub nts 10.00% 1/15/07..... 750,000 759,375
CSK Auto sr sub nts 11.00% 11/1/06............. 500,000 522,500
Delco Remy International
sr sub nts 10.625% 8/1/06.................... 250,000 266,875
Exide sr nts 10.75% 12/15/02................... 100,000 105,250
Motors & Gears sr nts 10.75% 11/15/06.......... 500,000 518,125
Penda sr nts 10.75% 3/1/04..................... 600,000 609,000
Ryder Transportation sr sub nts
10.00% 12/1/06............................... 600,000 618,000
----------
3,399,125
----------
Banking, Finance & Insurance-0.85%
Cityscape Financial sr nts 12.75% 6/1/04....... 475,000 471,438
Life Partners sr sub nts 12.75% 7/15/02........ 200,000 207,250
----------
678,688
----------
Buildings & Materials-4.54%
Atrium sr sub nts 10.50% 11/15/06.............. 500,000 515,000
Clarks Material sr nts 10.75% 11/15/06......... 500,000 526,250
Nortek sr nts 9.25% 3/15/07.................... 500,000 515,000
NVR sr nts 11.00% 4/15/03...................... 250,000 268,438
Reliant Building sr sub nts 10.875% 5/1/04..... 500,000 515,000
Safelite Glass sr sub nts 9.875% 12/15/06...... 500,000 528,750
Williams Scotsman sr nts 9.875% 6/1/07......... 750,000 751,875
----------
3,620,313
----------
Cable, Media & Publishing-11.75%
Adelphia Communications
sr nts 9.50% 2/15/04......................... 325,000 314,438
Adelphia Communications
sr debs 11.875% 9/15/04...................... 400,000 427,000
Allbritton sr sub debs 11.50% 8/15/04.......... 150,000 158,063
Big Flower Press sr sub nts 8.875% 7/1/07...... 450,000 443,250
Cablevision Systems sr sub nts 9.875% 5/15/06.. 425,000 455,813
Comcast Cellular sr nts 9.50% 5/1/07........... 1,000,000 1,015,000
Fundy Cable Limited sr nts 11.00% 11/15/05..... 250,000 271,563
<PAGE>
Principal Market
Amount Value
CORPORATE BONDS (Continued)
Cable, Media & Publishing (Continued)
Hollinger International Publishing
sr sub nts 9.25% 3/15/07..................... $ 550,000 $ 562,375
Intermed Capital Partners sr nts 11.25% 8/1/06. 500,000 540,000
Jones Intercable sr nts 8.875% 4/1/07.......... 275,000 281,875
Katz Media sr sub nts 10.50% 1/15/07........... 900,000 889,875
Lamar Advertising unsec sr sub nts
9.625% 12/1/06............................... 500,000 513,750
Marcus Cable sr disc nts
0.00%/14.25% 12/15/05....................... 800,000 636,000
Rogers Cablesystems sr sec nts
10.00% 12/1/07............................... 1,040,000 1,120,600
Rogers Cablesystems sr sub nts 11.00% 12/1/15.. 270,000 294,975
STC Broadcasting sr sub nts 11.00% 3/15/07..... 600,000 642,000
Sullivan Graphics sr sub nts 12.75% 8/1/05..... 500,000 519,375
Universal Outdoor sr sub nts 9.75% 10/15/06.... 275,000 285,313
----------
9,371,265
----------
Chemicals-5.33%
Astor sr sub nts 10.50% 10/15/06............... 650,000 693,875
BPC Holding sr nts 12.50% 6/15/06.............. 400,000 437,500
Harris Chemical sr sub nts 10.75% 10/15/03..... 1,000,000 1,027,500
ISP Holdings sr nts 9.00% 10/15/03............. 275,000 286,688
Pioneer Americas Acquisition
sr nts 9.25% 6/15/07....................... 100,000 99,125
Sterling Chemical Holdings
sr disc nts 0.00%/13.50% 8/15/08............. 1,675,000 1,109,688
TEXAS Petrochemical sr sub nts
11.125% 7/1/06............................... 250,000 269,375
UCC Investors Holding sub nts
0.00%/12.00% 5/1/05.......................... 350,000 323,750
----------
4,247,501
----------
Computers & Technology-1.61%
Precise Technology sr sub nts 11.125% 6/15/07.. 75,000 76,500
Statia Terminals mtg nts 11.75% 11/15/03....... 250,000 265,000
Unisys nts 11.75% 10/15/04..................... 110,000 120,725
Unisys sr nts 12.00% 4/15/03................... 750,000 821,250
----------
1,283,475
----------
4
<PAGE>
Delchester Series
Statement of Net Assets (Continued)
Principal Market
Amount Value
CORPORATE BONDS (Continued)
Consumer Products-4.18%
Calmar sr sub nts 11.50% 8/15/05............... $ 500,000 $ 520,000
Consumers International sr nts 10.25% 4/1/05... 225,000 238,500
E&S Holdings sr sub nts 10.375% 10/1/06........ 250,000 262,500
French Fragrance sr nts 10.375% 5/15/07........ 1,000,000 1,032,500
Prime Succession Acquisition
sr sub nts 10.75% 8/15/04.................... 200,000 220,000
Shop Vac sr sub nts 10.625% 9/1/03............. 500,000 532,500
William Carter sr sub nts 10.375% 12/1/06...... 500,000 527,500
----------
3,333,500
----------
Electronics & Electrical Equipment-2.48%
Amphenol unsec sr sub nts 9.875% 5/15/07....... 700,000 728,000
Electronics Retailing Systems
unit 0.00%/13.25% 2/1/04................... 500,000 346,250
IMO Industries sr sub nts 11.75% 5/1/06........ 500,000 600,000
Tracor sr sub nts 8.50% 3/1/07................. 300,000 300,000
----------
1,974,250
----------
Energy-4.35%
Clark USA sr nts 10.875%12/1/05................ 500,000 532,500
Kelley Oil & Gas sr sub nts 10.375% 10/15/06... 300,000 312,750
Mariner Energy sr sub nts 10.50% 8/1/06........ 500,000 525,000
MESA Operating sr sub nts 11.625% 7/1/06....... 500,000 386,250
Transamerican Energy sr nts 11.50% 6/15/02..... 250,000 243,750
Transamerican Energy
sr disc nts 0.00%/13.00% 6/15/02........... 1,000,000 725,000
United Refining sr unsec nts 10.75% 6/15/07.... 750,000 748,125
----------
3,473,375
----------
Environmental Services-0.46%
Petro Stopping Centers sr nts 10.50% 2/1/07.... 350,000 363,125
----------
363,125
----------
Food, Beverage & Tobacco-4.57%
CARROLS sr nts 11.50% 8/15/03.................. 200,000 214,750
CFP Holdings sr nts 11.625% 1/15/04............ 525,000 545,344
Core-Mark sr sub nts 11.375% 9/15/03........... 300,000 314,625
Delta Beverage Group sr nts 9.75% 12/15/03..... 825,000 863,156
International Home Foods
sr sub nts 10.375% 11/1/06................... 500,000 518,750
MBW Foods sr sub nts 9.875% 2/15/07............ 300,000 309,750
<PAGE>
Principal Market
Amount Value
CORPORATE BONDS (Continued)
Food, Beverage & Tobacco (Continued)
Mafco sr sub nts 11.875% 11/15/02.............. $ 250,000 $ 270,313
Windy Hill Pet Food sr sub nts 9.75% 5/15/07... 600,000 610,500
----------
3,647,188
----------
Healthcare & Pharmaceuticals-2.87%
Dynacare sr nts 10.75% 1/15/06................. 500,000 521,875
Fresensius Medical Care
co gtd nts 9.00% 12/1/06..................... 450,000 461,250
Imed sr sub nts 9.75% 12/1/06.................. 500,000 508,750
Integrated Health Services
sr sub nts 9.50% 9/15/07................... 500,000 516,250
Owens & Minor sr sub nts 10.875% 6/1/06........ 250,000 278,125
----------
2,286,250
----------
Industrial Machinery-2.99%
Hawk sr nts 10.25% 12/1/03..................... 780,000 807,300
Interlake sr nts 12.125% 3/1/02................ 100,000 104,500
International Wire Group
sr sub nts 11.75% 6/1/05..................... 500,000 546,875
Jordan Industries sr nts 10.375% 8/1/03........ 400,000 420,000
Spinnaker Industries sr nts 10.75% 10/15/06.... 500,000 506,875
----------
2,385,550
----------
Leisure, Lodging & Entertainment-9.01%
AMF Group sr sub nts 10.875% 3/15/06............ 400,000 433,000
American Skiing sr sub nts 12.00% 7/15/06....... 300,000 316,500
Booth Creek Ski Holdings
sr nts 12.50% 3/15/07....................... 600,000 619,500
Casino America sr nts 12.50% 8/1/03............. 650,000 676,000
Cinemark USA sr sub nts 9.625% 8/1/08........... 975,000 996,938
Coleman Escrow
1st priority disc nts 0.00% 5/15/01......... 1,000,000 632,500
Coleman Escrow
2nd priority disc nts 0.00% 5/15/01......... 575,000 345,000
Eldorado Resorts LLC
sr sub nts 10.50% 8/15/06..................... 200,000 215,000
Hollywood Casino sr nts 12.75% 11/1/03.......... 600,000 640,500
Host Mar Travel Plaza sr nts 9.50% 5/15/05...... 300,000 314,250
KSL Recreation sr sub nts 10.25% 5/1/07......... 100,000 105,250
Riddell Sports sr nts 10.50% 7/15/07............ 25,000 25,625
Station Casinos sr sub nts 9.75% 4/15/07........ 575,000 570,688
5
<PAGE>
Delchester Series
Statement of Net Assets (Continued)
Principal Market
Amount Value
CORPORATE BONDS (Continued)
Leisure, Lodging & Entertainment (Continued)
Sun International Hotels
sr sub nts 9.00% 3/15/07.................... $500,000 $ 510,000
Trump-Atlantic City 1st mtg nts 11.25% 5/1/06... 800,000 784,000
----------
7,184,751
----------
Metals & Mining-4.27%
AK Steel sr nts 10.75% 4/1/04................... 750,000 810,000
Commonwealth Aluminum
sr sub nts 10.75% 10/1/06..................... 300,000 317,250
G.S.Technologies sr nts 12.00% 9/1/04........... 550,000 594,688
G.S.Technologies sr nts 12.25% 10/1/05.......... 525,000 579,469
Weirton Steel sr nts 11.375% 7/1/04............. 400,000 428,000
Westmin Resources sr nts 11.00% 3/15/07......... 650,000 676,000
----------
3,405,407
----------
Packaging & Containers-2.91%
Gaylord Container sr nts 9.75% 6/15/07.......... 500,000 500,000
Plastic Containers sr nts 10.00% 12/15/06....... 500,000 520,000
Stone Container sr nts 11.875% 8/1/16........... 575,000 619,563
Stone Container sr sub units 12.25% 4/1/02...... 300,000 308,250
U.S. Can sr nts 10.125% 10/15/06................ 350,000 373,625
----------
2,321,438
----------
Paper & Forest Products-6.40%
Drypers sr nts 10.25% 6/15/07................... 325,000 324,188
Fibermark sr nts 9.375% 10/15/06................ 400,000 399,500
Four M sr nts 12.00% 6/1/06..................... 1,000,000 1,040,000
MAXXAM Group sr sec nts 11.25% 8/1/03........... 950,000 986,813
MAXXAM Group sr sec nts 12.00% 8/1/03........... 600,000 619,500
Pacific Lumber sr nts 10.50% 3/1/03............. 700,000 725,375
Repap Wisconsin sr nts 9.875% 5/1/06............ 1,000,000 1,010,000
----------
5,105,376
----------
Retail-1.72%
Central Tractor sr nts 10.625% 4/1/07........... 290,000 301,600
Fleming sr nts 10.625%12/15/01.................. 750,000 791,250
Leslie's Poolmart sr nts 10.375% 7/15/04........ 175,000 180,469
Shoppers Food sr nts 9.75% 6/15/04.............. 100,000 100,250
----------
1,373,569
----------
<PAGE>
Principal Market
Amount Value
CORPORATE BONDS (Continued)
Telecommunications-8.71%
Arch Communications Group
sr disc nts 0.00%/10.75% 3/15/08..............$1,000,000 $ 527,500
Century Communications sr nts 9.75% 2/15/02..... 500,000 522,500
Echostar sr sec nts 12.50% 7/1/02............... 500,000 498,750
Galaxy Telecommunication L.P.
sr sub nts 12.375% 10/1/05.................... 500,000 533,750
JACOR Communications
unsec sr sub nts 9.75% 12/15/06............... 500,000 528,750
McCaw International units 0.00%/13.00% 4/15/07.. 300,000 150,000
Metrocall unsec sr sub nts 10.375% 10/1/07...... 500,000 460,000
Paging Network sr sub nts 10.125% 8/1/07........ 450,000 438,750
Rogers Cantel Mobile Communications
sr sub nts 11.125% 7/15/02.................... 1,200,000 1,249,500
TELEX Communications
sr sub nts 10.50% 5/1/07.................... 1,000,000 1,045,000
Teleport Communications sr nts 9.875% 7/1/06.... 250,000 266,250
Teleport Communications
sr disc nts 0.00%/7.25% 7/1/07............... 1,000,000 723,750
-----------
6,944,500
-----------
Textiles, Apparel & Furniture-1.27%
Anvil Knitwear sr nts 10.875% 3/15/07........... 1,000,000 1,010,000
-----------
1,010,000
-----------
Transportation & Shipping-2.19%
Ameriking sr nts 10.75% 12/1/06................. 450,000 473,063
Blue Bird Body sr nts 10.75% 11/15/06........... 600,000 642,000
Chemical Leaman sr nts 10.375% 6/15/05.......... 325,000 332,313
Eletson Holdings
1st pfd mtg nts 9.25% 11/15/03................ 100,000 101,500
Equimar Shipholdings
1st priority ship mtg nts 9.875% 7/1/07....... 200,000 199,750
-----------
1,748,626
-----------
Miscellaneous-2.64%
Coinmach sr nts 11.75% 11/15/05................. 500,000 554,375
DiGiorgio sr nts 10.00% 6/15/07................. 350,000 344,313
Dyncorp sr sub nts 9.50% 3/1/07................. 315,000 318,938
Kindercare Learning Centers
sr sub nts 9.50% 2/15/09..................... 325,000 320,125
Rayovac sr sub nts 10.25% 11/1/06............... 335,000 352,588
Therma-Wave sr nts 10.625% 5/15/04.............. 200,000 213,500
-----------
2,103,839
-----------
Total Corporate Bonds (cost $69,018,481)........ 71,337,236
-----------
6
<PAGE>
Delchester Series
Statement of Net Assets (Continued)
Number Market
of Shares Value
COMMON STOCK-0.01%
Terex Corporation appreciation rights........... 800 $ 9,600
----------
Total Common Stock (cost $2,000)................ 9,600
----------
PREFERRED STOCK-2.17%
El Paso Electric pik............................ 5,909 664,761
Pegasus Communication unit 12.75% 1/1/02........ 5,000 490,000
Silgan Holdings pik 13.25% 7/15/06.............. 532 571,900
----------
Total Preferred Stock (cost $1,624,704)......... 1,726,661
----------
CONVERTIBLE PREFERRED STOCK-0.31%
Pantry Pride $14.875 cv pfd..................... 2,500 250,000
----------
Total Convertible Preferred Stock
(cost $262,500)............................... 250,000
--------
WARRANTS-0.03%
NS Group warrants............................... 400 20,000
----------
Total Warrants (cost $652)...................... 20,000
----------
Principal Market
Amount Value
REPURCHASE AGREEMENTS-5.64%
With Chase Manhattan 5.80% 7/1/97 (dated
6/30/97, collateralized by $1,584,000
U.S. Treasury Notes 5.375% due 11/30/97,
market value $1,588,931)....................... $1,557,000 $ 1,557,000
With J.P. Morgan Securities 5.95% 7/1/97 (dated
6/30/97, collateralized by $1,500,000
U.S. Treasury Notes 5.125% due 4/30/98,
market value $1,505,226)....................... 1,472,000 1,472,000
With PaineWebber 5.80% 7/1/97 (dated
6/30/97, collateralized by $932,000
U.S. Treasury Notes 7.25% due 2/15/98,
market value $965,291 and $505,000
U. S. Treasury Notes 9.125% due 5/15/99,
market value $536,993)......................... 1,472,000 1,472,000
-----------
Total Repurchase Agreements
(cost $4,501,000)............................. 4,501,000
-----------
TOTAL MARKET VALUE OF SECURITIES-97.61% (cost $75,409,337)........ 77,844,497
RECEIVABLES AND OTHER ASSETS NET OF LIABILITIES-2.39%............. 1,903,292
-----------
NET ASSETS APPLICABLE TO 8,581,023 SHARES ($.01 PAR VALUE) OUTSTANDING;
EQUIVALENT TO $9.29 PER SHARE-100.00%...........................$79,747,789
===========
COMPONENTS OF NET ASSETS AT JUNE 30, 1997:
Common stock, $.01 par value, 750,000,000 shares authorized to the
Fund with 50,000,000 shares allocated to the Series..............$79,167,239
Accumulated undistributed:
Net investment income........................................... 69,701
Net realized loss on investments................................ (1,924,311)
Net unrealized appreciation of investments...................... 2,435,160
-----------
Total net assets..................................................$79,747,789
===========
- ---------------
Summary of Abbreviations:
cv-convertible mtg-mortgage sec-secured
co gtd-company guaranteed nts-notes sr-senior
debs-debentures pfd-preferred sub-subordinated
disc-discount pik-pay-in-kind unsec-unsecured
See accompanying notes
7
<PAGE>
Delaware Group Premium Fund, Inc.-Capital Reserves Series
Statement of Net Assets
June 30, 1997
(Unaudited)
Principal Market
Amount Value
ASSET BACKED SECURITIES-11.95%
Advanta
Series 93-1A2 5.95% 5/25/09............... $ 45,873 $ 44,422
American Finance Home Equity
Series 94-2A 2A1 6.95% 6/25/24............ 212,403 212,787
Series 91-1A 8.00% 7/25/06 ............... 32,975 33,464
Case Equipment Loan Trust
Series 95-B A3 6.15% 9/15/02 ............. 472,121 472,636
Furst Series 96-2A2 6.46% 9/24/11 .......... 615,000 609,619
IMC Home Equity Loan Trust
Series 95-3 A2 6.50% 11/25/10 ............ 270,000 269,326
MetLife Capital Equipment Loan Trust
Series 97-A A 6.85% 5/20/08 .............. 410,000 413,716
NationsCredit Grantor Trust
Series 96-1A 5.85% 9/15/11................ 234,897 230,587
The Money Store Home Equity Trust
Series 97-A A9 7.235% 4/15/27 ............ 385,000 390,173
UCFC Home Equity Loan
Series 96-B A3 7.30% 4/15/14 ............. 625,000 633,086
---------
Total Asset-Backed Securities
(cost $3,300,032 ) ....................... 3,309,816
---------
COLLATERALIZED MORTGAGE
OBLIGATIONS-31.12%
Asset Securitization Corporation
Series 96-D2 A1 6.92% 2/14/29 ............ 635,443 634,351
Series 96-D3 A1B 7.21% 10/13/26 .......... 400,000 406,500
Series 97-D4 A1A 7.35% 4/14/29............ 779,251 796,419
Conti Series 96-MCI D 7.80% 4/15/06......... 360,000 367,470
Merrill Lynch Mortgage Investors
Series 97-C1 A1 6.95% 6/18/29............. 260,000 260,528
Principal Market
Amount Value
COLLATERALIZED MORTGAGE
OBLIGATIONS (Continued)
Morgan Stanley Capital Trust
Series 97-C1 A1B 7.46% 2/15/20 ........... $320,000 $ 328,400
Mortgage Capital Funding
Series 96-MC2 A1 6.758% 12/21/26 ......... 387,577 385,336
Series 96-MC2 C 7.224% 9/20/06............ 275,000 274,828
Nomura Asset Securities
Series 96-MD5 A3 7.918% 4/13/36........... 460,000 475,956
Series 95-MD3 A1A 8.17% 3/4/20............ 474,804 493,574
Prudential Home Mortgage
Series 93-61 A3 6.50% 12/25/08............ 465,000 460,586
Residential Accredit Loans
Series 96-QS2 A3 7.05% 3/25/19 ........... 680,000 681,381
Series 96-QS3 AI3 7.29% 6/25/26 .......... 225,000 226,477
Series 95-QS1 A3 7.30% 6/25/21 ........... 220,000 221,238
Series 96-QS2 A6 7.45% 4/25/23............ 540,000 539,156
Series 97-QS6 A5 7.50% 6/25/12............ 550,000 562,719
Series 96-A4 A5 7.50% 4/25/27............. 540,000 544,219
Resolution Trust Corporation
Series 95-C1 A2B 6.75% 2/25/27 ........... 400,000 397,250
Residential Funding Mortgage
Series 96-S9 7.25% 4/25/26 ............... 364,518 362,087
Travelers Mortgage Securities
Series 1 Z2 12.00% 3/14/14 ............... 175,066 199,575
---------
Total Collateralized Mortgage Obligations
(cost $8,554,832)......................... 8,618,050
---------
8
<PAGE>
Capital Reserves Series
Statement of Net Assets (Continued)
Principal Market
Amount Value
CORPORATE BONDS-21.22%
AT&T Capital 6.83% 1/30/01................. $545,000 $ 544,319
Barrick Gold 7.50% 5/1/07.................. 475,000 485,688
Continental Airlines 7.206% 12/30/05....... 395,000 394,013
Credit Foncier de France 8.00% 1/14/02..... 340,000 353,175
Federal Express 7.65% 1/15/14.............. 440,000 446,600
Firstar Capital Trust I 8.32% 12/15/26..... 315,000 320,513
Ford Motor Credit 7.00% 9/25/01 ........... 850,000 858,500
Great Western Financial Trust II
8.206% 2/1/27............................ 500,000 496,875
Lehman Brothers Holdings 6.84% 9/25/98..... 485,000 488,720
Norfolk Southern 6.70% 5/1/00 ............. 450,000 451,688
Pep Boys 7.00% 6/1/05...................... 100,000 98,875
Summit Bank 6.75% 6/15/03.................. 430,000 425,163
U.S. West Capital Funding 6.20% 11/30/00 .. 520,000 512,200
---------
Total Corporate Bonds (cost $5,822,220).... 5,876,329
---------
MORTGAGE BACKED SECURITIES-21.53%
Federal Home Loan Mortgage Corporation
5.75% 11/15/17........................... 500,000 492,062
Federal Home Loan Mortgage Corporation
7.00% 10/1/97 to 7/1/11.................. 559,244 560,932
Federal Home Loan Mortgage Corporation
7.50% 5/1/09............................. 103,789 105,346
Federal Home Loan Mortgage Corporation
8.50% 9/1/08 to 6/14/14.................. 267,875 279,262
Federal National Mortgage Association
5.75% 4/25/18............................ 300,000 294,967
Federal National Mortgage Association
7.50% 2/1/27............................. 447,977 447,176
Federal National Mortgage Association
8.00% 1/1/10 to 9/1/16................... 695,284 717,064
Federal National Mortgage Association
9.00% 10/1/06............................ 285,850 299,249
Principal Market
Amount Value
MORTGAGE BACKED SECURITIES (Continued)
Federal National Mortgage Association
9.50% 11/1/21 to 5/1/22................... $ 521,742 $ 562,340
Government National Mortgage Association
9.00% 6/15/21............................. 540,217 577,695
Government National Mortgage Association
10.00% 2/15/10 to 7/15/20 ................ 332,071 368,129
Government National Mortgage Association
10.50% 11/15/19........................... 187,548 206,772
Government National Mortgage Association
12.00% 11/15/11........................... 57,556 65,739
Government National Mortgage Association II
9.00% 11/15/21............................ 701,926 751,500
Government National Mortgage Association II
11.00% 12/15/09........................... 23,268 26,082
Government National Mortgage Association II
12.00% 6/20/14 to 2/20/16 ................ 183,484 208,158
Total Mortgage-Backed Securities ---------
(cost $5,903,652)......................... 5,962,473
---------
MUNICIPAL BONDS-3.32%
New York State Dorm Authority Revenue
(Taxable Pension Obligations)
6.23% 10/1/98............................. 530,000 530,000
Philadelphia PA Industrial Development
Authority Revenue 6.488% 6/15/04.......... 390,000 390,000
---------
Total Municipal Bonds (cost $920,000)....... 920,000
---------
U.S. TREASURY OBLIGATIONS-9.83%
U.S. Treasury Notes 5.875% 4/30/98 ......... 2,180,000 2,182,638
U.S. Treasury Notes 5.875% 3/31/99 ......... 385,000 384,104
U.S. Treasury Notes 6.00% 9/30/98 .......... 155,000 155,201
Total U.S. Treasury Obligations ---------
(cost $2,717,535)......................... 2,721,943
---------
9
<PAGE>
Capital Reserves Series
Statement of Net Assets (Continued)
Principal Market
Amount Value
REPURCHASE AGREEMENTS-4.49%
With Chase Manhattan 5.80% 7/01/97 (dated
6/30/97, collateralized by $435,000
U.S. Treasury Notes 5.375% due 11/30/97,
market value $439,154)...................... $430,000 $430,000
With J.P. Morgan Securities 5.80% 7/01/97
(dated 6/30/97, collateralized by $407,000
U.S. Treasury Notes 5.125% due 4/30/98,
market value $416,019)...................... 407,000 407,000
With PaineWebber 5.80% 7/01/97 (dated
6/30/97, collateralized by $258,000
U.S. Treasury Notes 7.25% due 2/15/98,
market value $266,790, and $139,000
U.S. Treasury Notes 9.125% due 5/15/99,
market value $148,416)...................... $407,000 407,000
-----------
Total Repurchase Agreements
(cost $1,244,000)........................... 1,244,000
-----------
TOTAL MARKET VALUE OF SECURITIES (cost $28,462,271)-103.46% .... 28,652,611
LIABILITIES NET OF RECEIVABLES AND OTHER ASSETS-(3.46%)......... (958,898)
-----------
NET ASSETS APPLICABLE TO 2,866,497 SHARES ($.01 PAR VALUE)
OUTSTANDING; EQUIVALENT TO $9.66 PER SHARE-100.00%............ $27,693,713
===========
COMPONENTS ON NET ASSETS AT JUNE 30, 1997:
Common stock, $.01 par value, 750,000,000 shares authorized
to the Fund with 50,000,000 shares allocated to the Series..... $29,189,320
Accumulated undistributed:
Net realized loss on investments ............................. (1,685,947)
Net unrealized appreciation of investments ................... 190,340
-----------
Total net assets................................................ $27,693,713
===========
See accompanying notes
10
<PAGE>
Delaware Premium Fund, Inc.-Cash Reserves Series (Formerly Money Market Series)
Statement of Net Assets
June 30, 1997
(Unaudited)
Principal Market
Amount Value
COMMERCIAL PAPER-54.22%
Financial Services -25.99%
Abbey National N.A. 5.64% 10/1/97........... $1,500,000 $ 1,478,380
Ciesco L.P. 5.55% 8/22/97................... 1,000,000 991,983
Commonwealth Bank of Australia
5.56% 9/23/97............................. 1,000,000 987,027
Den Danske 5.63% 8/6/97..................... 1,500,000 1,491,555
International Nederlanden U.S. Insured
Holdings 5.61% 10/1/97.................... 1,000,000 985,663
Safeco Credit 5.60% 7/9/97.................. 500,000 499,378
Unilever Capital 5.53% 7/14/97 ............. 1,500,000 1,497,005
----------
Total Financial Services.................... 7,930,991
----------
Industrial-15.23%
duPont (E.I.)deNemours 5.54% 12/2/97........ 500,000 488,151
duPont (E.I.)deNemours 5.58% 7/8/97......... 1,670,000 1,668,188
Kellogg 5.50% 8/1/97....................... 1,000,000 995,264
Zeneca Wilmington 5.64% 7/22/97 ............ 1,500,000 1,495,065
----------
Total Industrial............................ 4,646,668
----------
Mortgage Bankers and Brokers-13.00%
Bear Stearns 5.58% 9/22/97.................. 1,000,000 987,135
CS First Boston 5.62% 8/5/97................ 1,500,000 1,491,804
Goldman Sachs Group L.P. 5.57% 8/4/97 ...... 500,000 497,370
Goldman Sachs Group L.P. 5.60% 9/3/97....... 1,000,000 990,044
----------
Total Mortgage Bankers and Brokers ......... 3,966,353
----------
Total Commercial Paper...................... 16,544,012
----------
Principal Market
Amount Value
FLOATING RATE NOTES*-17.20%
Bank One Columbus 5.69% 9/24/97 ............ $1,000,000 $ 999,842
Federal Farm Credit Bank Floating Rate
Medium Term Note 5.55% 2/20/98 .......... 1,000,000 999,625
Merrill Lynch 5.66% 4/6/98.................. 1,500,000 1,500,000
Student Loan Marketing Association Floating
Rate Medium Term Note 5.25% 10/3/97....... 1,250,000 1,249,813
Student Loan Marketing Association
5.32% 8/4/97.............................. 500,000 499,814
----------
Total Floating Rate Notes .................. 5,249,094
----------
YANKEE CERTIFICATES OF DEPOSIT-4.92%
ABN-AMRO Finance-Chicago
6.03% 6/11/98............................. 500,000 500,041
West Deutsche L.B. Giro 5.54% 7/28/97....... 1,000,000 1,000,000
----------
Total Yankee Certificates of Deposit ....... 1,500,041
----------
MISCELLANEOUS INVESTMENTS-9.02%
Bank of America NTSA-Bank Notes
5.52% 11/21/97............................ 500,000 499,886
Eli Lilly 6.13% 11/6/97..................... 1,750,000 1,751,211
Northern Trust Bank Notes 5.96% 6/17/98..... 500,000 499,816
----------
Total Miscellaneous Investments ............ 2,750,913
----------
11
<PAGE>
Cash Reserves Series
Statement of Net Assets (Continued)
Principal Market
Amount Value
REPURCHASE AGREEMENTS-16.99%
With Chase Manhattan 5.80% 7/1/97 (dated
6/30/97, collateralized by $1,824,000
U.S. Treasury Notes 5.375% due
11/30/97, market value $1,830,395)............ $1,793,000 $1,793,000
With J.P. Morgan Securities 5.95% 7/1/97
(dated 6/30/97, collateralized by $1,728,000
U.S. Treasury Notes 5.125% due 4/30/98,
market value $1,733,969)...................... 1,696,000 1,696,000
With PaineWebber 5.80% 7/1/97 (dated
6/30/97, collateralized by $1,073,000
U.S. Treasury Notes 7.25% due 2/15/98,
market value $1,111,983 and $581,000
U.S. Treasury Notes 9.125% due 5/15/99,
market value $618,597)....................... $1,696,000 1,696,000
----------
Total Repurchase Agreements..................... 5,185,000
----------
TOTAL MARKET VALUE OF SECURITIES-102.35% (COST $31,229,060)**.......31,229,060
LIABILITIES NET OF RECEIVABLES AND OTHER ASSETS-(2.35%) ............ (715,689)
----------
NET ASSETS APPLICABLE TO 3,051,337 SHARES ($0.01 PAR VALUE)
OUTSTANDING; EQUIVALENT TO $10.00 PER SHARE-100.00%...............$30,513,371
===========
- ------------------
*Floating Rate Notes-The interest rate shown is the rate as of June 30, 1997
and the maturity shown is the longer of the next interest readjustment date
or the date the principal amount shown can be recovered through demand.
**Also the cost for federal income tax purposes.
See accompanying notes
12
<PAGE>
Delaware Group Premium Fund, Inc.-DelCap Series (Formerly Growth Series)
Statement of Net Assets
June 30, 1997
(Unaudited)
Number Market
of Shares Value
COMMON STOCK-90.01%
Banking, Finance & Insurance-5.20%
AMBAC......................................... 7,200 $ 549,900
Blanch(E.W.)Holdings.......................... 39,800 1,062,163
CMAC Investment............................... 41,200 1,967,300
*FIRSTPLUS Financial Group..................... 31,600 1,074,400
Signet Banking................................ 11,000 396,000
---------
5,049,763
---------
Computers & Technology-25.09%
*Acxiom........................................ 56,300 1,157,669
Adobe Systems................................. 42,300 1,484,466
*Affiliated Computer Services Class A ......... 66,300 1,856,400
*BA Merchant Services Class A ................. 20,500 390,781
*BISYS GROUP................................... 62,400 2,618,850
*BMC SOFTWARE.................................. 39,200 2,173,150
*Bay Networks.................................. 8,500 225,781
*Cascade Communications........................ 36,400 1,004,412
Cognizant .................................... 23,100 935,550
*Compuware..................................... 41,300 1,977,230
*DST Systems................................... 10,000 333,125
Dallas Semiconductor.......................... 19,200 753,600
FIRST DATA.................................... 49,046 2,154,959
*Gateway 2000.................................. 12,400 402,225
*Intuit........................................ 13,000 297,781
*LSI Logic..................................... 33,500 1,072,000
Linear Technology............................. 11,800 609,544
*Netscape Communications....................... 8,800 281,875
*Pure Atria.................................... 63,700 903,744
*Rational Software............................. 45,300 760,191
*Sterling Commerce............................. 36,019 1,184,111
*StorMedia Class A............................. 90,950 653,703
*Xilinx........................................ 22,800 1,117,912
----------
24,349,059
----------
- ----------------
Top 10 stock holdings, representing 23.6% of net assets, are in bold.
<PAGE>
Number Market
of Shares Value
COMMON STOCK (Continued)
Energy-7.03%
*AES........................................... 37,597 $ 2,659,988
*Calenergy..................................... 51,400 1,953,200
*Global Industries Limited..................... 34,600 806,613
*Newpark Resources ............................ 30,100 1,015,875
*Weatherford Enterra........................... 9,900 381,150
----------
6,816,826
----------
Environmental Services-4.91%
*PHILIP SERVICES............................... 155,700 2,471,738
*USA Waste Services............................ 26,100 1,008,113
*United Waste Systems.......................... 31,300 1,281,344
----------
4,761,195
----------
Food, Beverage & Tobacco-3.06%
*Foodmaker..................................... 107,300 1,757,038
*General Cigar Holdings........................ 39,300 1,156,894
*Swisher International Group Class A........... 3,200 55,200
----------
2,969,132
----------
Healthcare & Pharmaceuticals-17.24%
*DURA PHARMACEUTICALS ......................... 55,700 2,217,556
*Genesis Health Ventures....................... 24,500 826,875
*HEALTH MANAGEMENT ASSOCIATES CLASS A ......... 75,645 2,155,883
*Healthsouth................................... 48,500 1,209,469
*Incyte Pharmaceuticals........................ 7,600 500,650
*Interim Services.............................. 24,000 1,068,000
*Interneuron Pharmaceutical.................... 1,800 36,338
*MedPartners................................... 83,800 1,812,175
*Orthodontic Centers of America ............... 87,700 1,597,784
*PHYCOR........................................ 68,600 2,360,269
*Quorum Health Group........................... 28,500 1,015,313
Teva Pharmaceutical ADR....................... 10,200 661,088
*Vencor........................................ 29,200 1,262,900
----------
16,724,300
----------
13
<PAGE>
DelCap Series
Statement of Net Assets (Continued)
Number Market
of Shares Value
COMMON STOCK (Continued)
Leisure, Lodging & Entertainment-4.88%
*HFS........................................... 31,300 $1,815,400
*Interstate Hotels............................. 21,600 635,850
La Quinta Inns................................ 28,200 616,875
*Mirage Resorts ............................... 28,700 724,675
*Prime Hospitality............................. 47,700 942,075
----------
4,734,875
----------
Retail-13.99%
*Bed Bath & Beyond............................. 53,700 1,632,816
*CompUSA....................................... 82,500 1,773,750
Fastenal...................................... 7,800 381,225
*GENERAL NUTRITION............................. 73,800 2,061,788
*Guitar Center................................. 9,200 155,825
*Hertz Class A................................. 32,200 1,159,200
*Kohl's ....................................... 26,600 1,408,138
*Officemax..................................... 61,000 880,688
*Outback Steakhouse............................ 31,000 748,844
St. John Knits ............................... 15,400 831,600
*Staples....................................... 67,400 1,562,837
*U.S. Rentals.................................. 14,100 356,025
*Value City Department Stores.................. 29,700 241,313
*Viking Office Products........................ 20,000 378,750
----------
13,572,799
----------
Telecommunications-1.84%
*Clear Channel Communications.................. 19,300 1,188,156
*Premiere Technologies......................... 22,900 596,831
----------
1,784,987
----------
Textiles, Apparel & Furniture-1.87%
*Reebok International.......................... 15,100 705,925
*Tommy Hilfiger................................ 27,600 1,109,175
----------
1,815,100
----------
Transportation & Shipping-1.22%
Illinois Central.............................. 33,950 1,186,128
----------
1,186,128
----------
Miscellaneous-3.68%
*CUC INTERNATIONAL............................. 77,813 2,008,535
Loewen Group.................................. 27,600 959,100
*Personnel Group of America.................... 16,700 481,169
*SITEL......................................... 5,700 117,563
----------
3,566,367
----------
Total Common Stock (cost $71,805,482)........ 87,330,531
----------
14
<PAGE>
DelCap Series
Statement of Net Assets (Continued)
Principal Market
Amount Value
REPURCHASE AGREEMENTS-7.83%
With Chase Manhattan 5.80% 7/1/97 (dated
6/30/97, collaterized by $1,573,000
U.S. Treasury Notes 5.375% due 11/30/97,
market value $1,578,359 and $1,101,000
U.S. Treasury Notes 5.375% due 11/30/97,
market value $1,104,220)....................$ 2,628,000 $2,628,000
With J.P. Morgan Securities 5.95% 7/1/97
(dated 6/30/97, collaterized by $1,573,000
U.S. Treasury Notes 5.125% due 4/30/98,
market value $1,578,893 and $959,000
U.S. Treasury Notes 5.125% due 4/30/98,
market value $962,367)...................... 2,486,000 2,486,000
With PaineWebber 5.80% 7/1/97 (dated
6/30/97, collaterized by $1,573,000
U.S. Treasury Notes 7.25% due 2/15/98,
market value $1,629,693 and $852,000
U.S. Treasury Notes 9.125% due 5/15/99,
market value $906,600)......................$2,485,000 2,485,000
-----------
Total Repurchase Agreements
(cost $7,599,000)......................... 7,599,000
-----------
TOTAL MARKET VALUE OF SECURITIES (cost $79,404,482)-97.84%.... 94,929,531
RECEIVABLES AND OTHER ASSETS NET OF LIABILITIES-2.16%......... 2,099,541
----------
NET ASSETS APPLICABLE TO 6,087,190 SHARES ($0.01 PAR VALUE)
OUTSTANDING; EQUIVALENT TO $15.94 PER SHARE-100%............$97,029,072
===========
COMPONENTS OF NET ASSETS AT JUNE 30, 1997:
Common Stock, $0.01 par value 750,000,000 shares authorized
to the Fund with 50,000,000 shares allocated to the Series...$78,387,198
Accumulated undistributed:
Net investment loss......................................... (59,205)
Net realized gain on investments ........................... 3,176,030
Net unrealized appreciation on investments ................. 15,525,049
-----------
Total net assets .............................................$97,029,072
===========
- -------------------
*Non-income producing security for the period ended June 30, 1997.
ADR-American Depository Receipt
See accompanying notes
15
<PAGE>
Delaware Group Premium Fund, Inc.-Delaware Fund Series
(Formerly Multiple Strategy Series)
Statement of Net Assets
June 30, 1997
(Unaudited)
Number of Market
Shares Value
COMMON STOCK-61.14%
Aerospace & Defense-2.49%
GenCorp................................ 54,100 $1,251,063
Lockheed Martin........................ 11,500 1,190,969
----------
2,442,032
----------
Automobiles & Automotive Parts-1.86%
DANAHER................................ 36,000 1,829,250
----------
1,829,250
----------
Banking, Finance & Insurance-7.83%
American International Group........... 9,000 1,344,375
BB&T................................... 13,400 603,000
Chubb.................................. 16,700 1,116,813
Federal National Mortgage.............. 29,100 1,269,488
Nationwide Financial Services Class A.. 30,400 807,500
Penncorp Financial Group............... 15,200 585,200
State Street Bank...................... 19,300 892,625
UNUM................................... 25,400 1,066,800
----------
7,685,801
----------
Buildings & Materials-2.00%
Chicago Bridge and Iron................ 21,300 471,263
Foster Wheeler......................... 37,000 1,498,500
----------
1,969,763
----------
Cable, Media & Publishing-1.85%
Banta.................................. 27,950 761,638
Reynolds & Reynolds Class A............ 66,900 1,053,675
----------
1,815,313
----------
Computers & Technology-3.49%
Hewlett-Packard........................ 22,900 1,282,400
WALLACE COMPUTER SERVICES.............. 71,300 2,143,456
----------
3,425,856
----------
Consumer Products-2.49%
General Electric....................... 12,000 784,500
MASCO.................................. 39,700 1,657,475
----------
2,441,975
----------
Electronics & Electrical Equipment-2.54%
Intel.................................. 3,300 467,259
Motorola............................... 15,400 1,170,400
Teleflex............................... 27,400 856,250
----------
2,493,909
----------
- -------------------
Top 10 stock holdings, representing 22.6% of net assets, are in bold.
<PAGE>
Number of Market
Shares Value
COMMON STOCK (Continued)
Energy-2.57%
Compagnie Francaise de Petroleum Total 12,958 $ 657,619
Kerr-McGee............................. 19,900 1,261,163
Royal Dutch Petroleum.................. 11,200 609,000
----------
2,527,782
----------
Food, Beverage & Tobacco-6.08%
CONAGRA................................ 46,900 3,007,463
PHILIP MORRIS.......................... 51,000 2,263,125
Universal Foods........................ 18,300 697,688
----------
5,968,276
----------
Healthcare & Pharmaceuticals-8.81%
Baxter International................... 13,000 679,250
COLUMBIA/HCA HEALTHCARE................ 50,400 1,981,350
Hillenbrand Industries................. 18,600 883,500
Johnson & Johnson...................... 19,900 1,281,063
SCHERING-PLOUGH........................ 51,200 2,451,200
SmithKline Beecham..................... 15,000 1,374,375
----------
8,650,738
----------
Real Estate-3.41%
Colonial Properties Trust.............. 9,000 264,375
D.R. Horton............................ 61,300 635,988
Developers Diversified Realty 13,800 552,000
Health Care Property Investors 13,700 482,925
Kilroy Realty.......................... 20,300 512,575
Nationwide Health Properties. 22,600 497,200
Sun Communities........................ 12,000 402,750
----------
3,347,813
----------
Retail-3.02%
May Department Stores.................. 15,900 751,275
RITE AID............................... 38,700 1,930,163
Storage Trust Realty................... 3,900 103,350
Storage USA............................ 4,800 183,600
----------
2,968,388
----------
Telecommunications-1.37%
ALLTEL................................. 40,400 1,350,875
----------
1,350,875
----------
16
<PAGE>
Delaware Fund Series
Statement of Net Assets (Continued)
Number of Market
Shares Value
COMMON STOCK (Continued)
Textiles, Apparel & Furniture-2.94%
HON Industries............................. 29,800 $ 1,319,581
Miller (Herman)............................ 22,800 817,950
Valspar.................................... 25,300 749,513
-----------
2,887,044
-----------
Utilities-2.11%
CMS Energy................................. 32,000 1,128,000
Edison International....................... 16,000 398,000
Illinova................................... 24,900 547,800
-----------
2,073,800
-----------
Miscellaneous-6.28%
ECOLAB..................................... 45,100 2,153,525
Pentair.................................... 21,900 719,963
Tompkins ADR............................... 28,000 500,500
TYCO INTERNATIONAL......................... 40,100 2,789,456
-----------
6,163,444
-----------
Total Common Stock (cost $45,822,720)...... 60,042,059
-----------
CONVERTIBLE PREFERRED STOCK-0.24%
Metals & Mining-0.24%
Freeport-McMoRan Copper & Gold 5.00% pfd cv 8,700 238,148
-----------
Total Convertible Preferred Stock
(cost $201,026).......................... 238,148
-----------
Principal
Amount
ASSET-BACKED SECURITIES-3.30%
ADVANTA Series 93-1A2 5.95% 5/25/09........ $ 61,164 59,229
American Finance Home Equity
Series 94-2 A1 6.95% 6/25/24............. 60,114 60,223
Series 92-5 A 7.20% 2/15/08.............. 99,781 100,204
Series 91-1 A 8.00% 7/25/06.............. 11,679 11,852
Case Equipment Loan Trust
Series 95-B A3 6.15% 9/15/02............. 429,201 429,669
FURST Series 96-2 A2 6.46% 9/25/11......... 555,000 550,144
IMC Home Equity Loan Trust
Series 95-3 A2 6.50% 11/25/10............ 225,000 224,439
MetLife Capital Equipment Loan Trust
Series 97-A A 6.85% 5/20/08.............. 420,000 423,806
NationsCredit Grantor Trust
Series 96-1A 5.85% 9/15/11............... 172,718 169,550
<PAGE>
Principal Market
Amount Value
ASSET-BACKED SECURITIES (Continued)
Neiman Marcus Group
Series 95-1A 7.60% 6/15/03............. $400,000 $ 411,814
The Money Store Home Equity Trust
Series 97-A A9 7.235% 5/15/28.......... 330,000 334,434
UCFC Home Equity Loan
Series 96-B A3 7.30% 4/15/14........... 460,000 465,951
----------
Total Asset-Backed Securities
(cost $3,234,788) ..................... 3,241,315
----------
COLLATERALIZED MORTGAGE
OBLIGATIONS-8.50%
Asset Securization Corporation
Series 96-D2 A1 6.92% 2/14/29.......... 371,490 370,851
Series 96-D3 A1B 7.21% 10/13/26........ 360,000 365,850
Series 97-D4 A1A 7.35% 4/14/29......... 647,753 662,023
Series 97-MD7 A3 7.843% 1/13/30........ 400,000 413,313
Chase Commercial Mortgage Securities
Series 96-2 C 6.90% 11/19/06........... 250,000 244,453
Conti Series 96-MCI D 7.80% 4/15/06...... 300,000 306,225
Merrill Lynch Mortgage Investors
Series 97-C1 A1 6.95% 6/18/29.......... 225,000 225,457
Morgan Stanley Capital Trust
Series 97-C1 A1A 6.85% 2/15/20......... 340,329 342,031
Series 97-C1 A1B 7.46% 2/15/20......... 275,000 282,219
Mortgage Capital Funding
Series 96-MC2 A1 6.758% 12/21/26....... 338,516 336,559
Series 96-MC2 C 7.224% 9/20/06......... 245,000 244,847
Nomura Asset Securities
Series 96-MD5 A3 7.918% 4/13/36........ 340,000 351,794
Series 95-MD3 A1A 8.17% 3/4/20......... 339,146 352,553
Norwest Asset Securities
Series 97-1 A8 7.25% 2/25/12........... 442,991 445,119
Prudential Home Mortgage
Series 93-61 A3 6.50% 12/25/08......... 440,000 435,823
Residential Accredit Loans
Series 97-QS1 A5 6.75% 2/25/27......... 400,000 397,250
Series 96-QS2 A3 7.05% 3/25/19......... 400,000 400,813
Series 96-QS3 AI3 7.29% 6/25/26........ 200,000 201,313
Series 95-QS1 A3 7.30% 6/25/21......... 180,000 181,013
Series 96-QS2 A6 7.45% 4/25/23......... 445,000 444,305
Series 97-QS6 A5 7.50% 6/25/12......... 370,000 378,556
Series 97-QS3 A3 7.50% 4/25/27......... 445,000 448,477
17
<PAGE>
Delaware Fund Series
Statement of Net Assets (Continued)
Principal Market
Amount Value
COLLATERALIZED MORTGAGE
OBLIGATIONS (Continued)
Residential Funding Mortgage
Series 96-S9 7.25% 4/25/26.............. $384,222 $ 381,660
Travelers Mortgage Securities
Series 1 Z2 12.00% 3/1/14............... 117,833 134,329
----------
Total Collateralized Mortgage Obligations
(cost $8,290,728)....................... 8,346,833
----------
CORPORATE BONDS-7.21%
ABN-AMRO Bank NV 8.25% 8/1/09............. 80,000 84,200
AT&T Capital 6.83% 1/30/01................ 500,000 499,375
Barrick Gold 7.50% 5/1/07................. 475,000 485,688
Chase Manhattan 6.25% 1/15/06............. 385,000 363,825
Continental Airlines 7.206% 12/30/05...... 295,000 294,263
Credit Foncier de France 8.00% 1/14/02.... 275,000 285,656
Federal Express 7.65% 1/15/14............. 450,000 456,750
Firstar Capital Trust I 8.32% 12/15/26.... 260,000 264,550
Ford Motor Credit 7.00% 9/25/01........... 800,000 808,000
Lehman Brothers Holdings 6.84% 9/25/98.... 300,000 302,301
MBNA America Bank, NA 6.00% 12/26/00...... 450,000 439,313
Norfolk Southern 6.70% 5/1/00............. 350,000 351,313
Pep Boys 7.00% 6/1/05..................... 395,000 390,556
Santander Financial Issuances
6.80% 7/15/05........................... 175,000 171,719
Summit Bank 6.75% 6/15/03................. 320,000 316,400
Travelers/Aetna Property & Casualty
6.75% 4/15/01........................... 775,000 775,969
U.S. Bancorp 8.125% 5/15/02............... 430,000 452,575
U.S. West Capital Funding 6.20% 11/30/00.. 340,000 334,900
----------
Total Corporate Bonds (cost $7,040,266).. 7,077,353
----------
<PAGE>
Principal Market
Amount Value
MORTGAGE-BACKED SECURITIES-6.13%
Federal Home Loan Mortgage Corporation
5.75% 11/15/17......................... $ 500,000 $ 492,062
Federal Home Loan Mortgage Corporation
7.00% 10/1/17.......................... 92,596 93,203
Federal Home Loan Mortgage Corporation
7.50% 5/1/09........................... 59,308 60,198
Federal Home Loan Mortgage Corporation
8.50% 9/1/08........................... 93,785 97,537
Federal Home Loan Mortgage
Corporation-Gold 6.00% 3/1/11.......... 242,282 234,181
Federal Home Loan Mortgage
Corporation-Gold 7.00% 7/1/11........... 93,265 93,410
Federal Home Loan Mortgage
Corporation-Gold 8.50% 6/1/14........... 73,453 76,758
Federal National Mortgage Association
5.75% 4/25/18.......................... 300,000 294,967
Federal National Mortgage Association
6.50% 2/1/26........................... 394,923 378,632
Federal National Mortgage Association
7.50% 2/1/27........................... 742,971 745,293
Federal National Mortgage Association
8.00% 1/1/10 to 9/1/16................. 414,178 427,255
Federal National Mortgage Association
9.50% 6/1/19 to 5/1/22................. 468,398 505,167
Government National Mortgage Association
7.00% 12/15/22......................... 578,718 571,846
Government National Mortgage Association
8.50% 8/15/21 to 11/15/21.............. 629,962 661,519
Government National Mortgage Association
9.00% 6/15/21 to 11/15/21.............. 1,119,598 1,197,633
Government National Mortgage Association
10.00% 1/15/18......................... 79,206 87,374
----------
Total Mortgage-Backed Securities
(cost $5,946,419)...................... 6,017,035
----------
18
<PAGE>
Delaware Fund Series
Statement of Net Assets (Continued)
Principal Market
Amount Value
MUNICIPAL BONDS-0.41%
Philadelphia PA Industrial Development
Authority Revenue 6.488% 6/15/04..... $ 400,000 $ 400,000
----------
Total Municipal Bonds (cost $400,000).. 400,000
----------
U.S. TREASURY OBLIGATIONS-3.94%
U.S. Treasury Notes 5.75% 8/15/03...... 400,000 386,388
U.S. Treasury Notes 6.375% 8/15/02..... 700,000 700,084
U.S. Treasury Notes 6.50% 5/15/05...... 225,000 224,566
U.S. Treasury Bonds 6.625% 2/15/27..... 460,000 450,322
U.S. Treasury Bonds 7.50% 11/15/24..... 1,955,000 2,110,892
----------
Total U.S. Treasury Obligations
(cost $3,787,573).................... 3,872,252
----------
MASTER REPURCHASE AGREEMENTS-8.81%
With Chase Manhattan 5.80%
7/01/97 (dated 6/30/97, collateralized
by $3,023,000 U.S. Treasury Notes 5.375%
due 11/30/97, market value
$3,054,306).......................... 2,992,000 2,992,000
With J.P. Morgan Securities 5.80% 7/01/97
(dated 6/30/97, collateralized by
$2,883,000 U.S. Treasury Notes 5.125%
due 4/30/98, market value
$2,893,404).......................... 2,830,000 2,830,000
With PaineWebber 5.80% 7/01/97 (dated
6/30/97, collateralized by $1,791,000
U.S. Treasury Notes 7.25% due 2/15/98,
market value $1,855,521, and $970,000
U.S. Treasury Notes 9.125% due 5/15/99,
market value $1,032,228).............. 2,830,000 2,830,000
----------
Total Repurchase Agreements
(cost $8,652,000).................... 8,652,000
----------
TOTAL MARKET VALUE OF SECURITIES (cost
$83,375,520)-99.68%................... 97,886,995
RECEIVABLES AND OTHER ASSETS NET OF LIABILITIES-0.32%. 313,903
----------
NET ASSETS APPLICABLE TO 5,806,718 SHARES
($.01 PAR VALUE) OUTSTANDING;
EQUIVALENT TO $16.91 PER SHARE-100.00%.............. 98,200,898
==========
COMPONENTS OF NET ASSETS AT JUNE 30, 1997:
Common stock, $.01 par value, 750,000,000 shares
authorized to the Fund with 50,000,000 shares
allocated to the Series............................... $78,005,879
Accumulated undistributed:
Net investment income................................ 1,085,290
Net realized gain on investments..................... 4,598,254
Net unrealized appreciation of investments........... 14,511,475
----------
Total net assets....................................... $98,200,898
----------
- --------------------
ADR-American Depository Receipt
See accompanying notes
19
<PAGE>
Delaware Group Premium Fund, Inc.-International Equity Series
Statement of Net Assets
June 30, 1997
(Unaudited)
Market
Number Value
of Shares (U.S. $)
COMMON STOCK-94.68%
Australia-10.84%
Amcor.............................. 865,000 $ 5,736,023
CSR................................ 1,224,966 4,735,365
Foster's Brewing Group............. 1,797,051 3,331,253
NATIONAL AUSTRALIA BANK............ 448,327 6,408,764
-----------
20,211,405
-----------
Belgium-2.15%
Electrabel......................... 18,700 4,006,419
-----------
4,006,419
-----------
France-7.57%
Alcatel Alsthom.................... 24,015 3,007,340
Campagnie de Saint Gobain.......... 28,408 4,142,320
ELF AQUITAINE...................... 47,259 5,097,954
Societe Television Francaise....... 21,000 1,875,861
-----------
14,123,475
-----------
Germany-8.45%
BAYER.............................. 134,600 5,185,679
Continental........................ 117,200 2,909,422
Rheinisch Westfaelisches Kalkwerke. 78,000 3,353,877
Siemens............................ 72,050 4,314,532
-----------
15,763,510
-----------
Hong Kong-2.60%
Hong Kong Electric................. 810,000 3,262,166
Wharf Holdings..................... 366,000 1,587,402
-----------
4,849,568
-----------
Indonesia-1.77%
PT Bank Dagang Nasional............ 3,974,250 2,819,769
PT Semen Gresik.................... 210,000 470,744
-----------
3,290,513
-----------
Japan-14.16%
Amano.............................. 185,000 2,099,062
Eisai Co........................... 197,000 3,731,094
HITACHI............................ 398,000 4,446,346
- ---------------
Top 10 stock holdings, representing 27.7% of net assets, are in bold.
<PAGE>
Market
Number Value
of Shares (U.S. $)
COMMON STOCK(Continued)
Japan (Continued)
Kinki Coca-Cola Bottling.......... 191,000 $ 2,617,238
Koito Manufacturing............... 272,000 2,079,616
Matsushita Electric............... 205,000 4,133,102
Nichido Fire & Marine............. 483,000 3,524,225
West Japan Railway................ 965 3,781,672
-----------
26,412,355
-----------
Malaysia-1.97%
Oriental Holdings Berhad.......... 319,200 2,401,901
Sime Darby Berhad................. 380,000 1,264,158
-----------
3,666,059
-----------
Netherlands-6.41%
Elsevier.......................... 199,500 3,332,620
Koninklijke Van Ommeren........... 60,100 2,332,376
Royal Dutch Petroleum............. 63,000 3,275,936
Unilever NV....................... 14,360 3,021,926
-----------
11,962,858
-----------
New Zealand-4.26%
Carter Holt Harvey Limited........ 1,187,800 3,078,484
TELECOM CORPORATION OF NEW ZEALAND 954,784 4,871,189
-----------
7,949,673
-----------
Philippines-1.04%
Philippine Long Distance Telephone
Company ADR..................... 30,100 1,933,925
-----------
1,933,925
-----------
Singapore -1.28%
Jardine Matheson Holdings Limited. 336,622 2,390,016
-----------
2,390,016
-----------
South Korea- 0.72%
Cho Hung Bank Limited GDR......... 201,970 1,348,150
-----------
1,348,150
-----------
Spain-4.80%
Banco Central Hispanoamerica S.A.. 92,449 3,381,056
Iberdrola S.A..................... 197,800 2,496,322
Telefonica de Espana.............. 106,500 3,078,368
-----------
8,955,746
-----------
20
<PAGE>
International Equity Series
Statement of Net Assets (Continued)
Market
Number Value
of Shares (U.S. $)
COMMON STOCK (Continued)
United Kingdom-26.66%
BG.................................. 700,000 $ 2,575,523
BASS................................ 411,000 5,015,577
Blue Circle Industries.............. 522,000 3,719,541
BOOTS............................... 433,200 5,073,734
British Airways..................... 345,000 3,931,585
CABLE & WIRELESS.................... 556,000 5,114,253
*Centrica............................ 700,000 853,652
GKN................................. 252,000 4,340,164
Glaxo Wellcome...................... 214,470 4,436,475
Great Universal Stores.............. 323,000 3,269,499
RTZ................................. 212,100 3,695,345
Taylor Woodrow...................... 1,365,000 4,022,361
Unigate............................. 458,000 3,686,694
------------
49,734,403
------------
Total Common Stock (cost $140,851,181) 176,598,075
------------
Warrants-0.06%
Indonesia-0.06%
*Pt Bank Dagang Nasional Warrants 2/14/00 283,875 116,761
------------
Total Warrants (cost $0)............ 116,761
------------
Market
Principal Value
Amount (U.S. $)
REPURCHASE AGREEMENTS-7.27%
With Chase Manhattan 5.80% 7/1/97 (dated
6/30/97, collateralized by $4,774,000
U.S. Treasury Notes 5.375% due 11/30/97,
market value $4,790,092)............... $4,693,000 $ 4,693,000
With J.P. Morgan Securities 5.80% 7/1/97
(dated 6/30/97, collateralized by
$4,521,000 U.S. Treasury Notes 5.125%
due 4/30/98, market value $4,537,749).. 4,438,000 4,438,000
With PaineWebber 5.80% 7/1/97 (dated
6/30/97, collateralized by $1,521,000
U.S. Treasury Notes 9.125% due 5/15/99,
market value $1,618,851 and $2,809,000
U.S. Treasury Notes 7.25% due 2/15/98,
market value $2,910,028)............... 4,438,000 4,438,000
------------
Total Repurchase Agreements
(cost $13,569,000)..................... 13,569,000
------------
<PAGE>
TOTAL MARKET VALUE OF SECURITIES
(cost $ 154,420,181)-102.01%............................ 190,283,836
LIABILITIES NET OF RECEIVABLES AND OTHER ASSETS-(2.01%).. (3,756,803)
------------
NET ASSETS APPLICABLE TO 11,245,867 SHARES
($.01 PAR VALUE) OUTSTANDING;
EQUIVALENT TO $16.59 PER SHARE-100.00%................. $186,527,033
============
COMPONENTS OF NET ASSETS AT JUNE 30,1997:
Common stock, $.01 par value, 750,000,000 shares
authorized to the fund with 50,000,000 shares allocated
to the Series........................................... $146,129,964
Accumulated undistributed:
Net investment income**................................ 4,663,173
Net realized loss on investments....................... (337,428)
Net unrealized appreciation of investments and
foreign currencies.................................... 36,071,324
------------
Total net assets......................................... $186,527,033
============
- ----------------
*Non-income producing security for the period ended June 30, 1997.
**Undistributed net investment income includes net realized gain (loss) on
foreign currencies. Net realized gains on foreign currencies are included as
a component of ordinary income in accordance with provisions of the Internal
Revenue Code.
ADR-American Depository Receipt
GDR-Global Depository Receipt
See accompanying notes
21
<PAGE>
Delaware Group Premium Fund, Inc.-Value Series
Statement of Net Assets
June 30, 1997
(Unaudited) Number Market
of Shares Value
COMMON STOCK-87.40%
Aerospace & Defense-1.42%
THIOKOL............................. 10,200 $ 714,000
-----------
714,000
-----------
Automobiles & Automotive Parts-2.07%
Arvin Industries.................... 20,800 566,800
CLARCOR............................. 19,100 472,725
-----------
1,039,525
-----------
Banking, Finance & Insurance-20.13%
CMAC Investment..................... 7,600 362,900
Enhance Financial Services Group 16,000 702,000
EVEREST RE HOLDINGS................. 18,000 713,250
Farm Family Holdings................ 20,200 563,075
Financial Federal................... 26,100 574,200
HORACE MANN EDUCATORS............... 15,400 754,600
Keystone Financial.................. 16,050 501,563
NAC RE Group........................ 10,600 512,775
North Fork Bancorporation........... 23,800 508,725
Onbancorp........................... 8,600 438,063
PMI Group........................... 10,600 661,175
Penncorp Financial Group............ 17,900 689,150
SCPIE Holdings...................... 9,800 272,563
TIG Holdings........................ 21,200 662,500
TITAN HOLDINGS...................... 33,696 800,298
UNION PLANTERS...................... 15,000 778,125
Westamerica Bancorporation.......... 7,900 598,425
-----------
10,093,387
-----------
Buildings & Materials-2.27%
Chicago Bridge and Iron............. 24,600 544,275
Synthetic Industries................ 27,300 592,069
-----------
1,136,344
-----------
Cable, Media & Publishing-2.18%
Devon Group......................... 14,700 518,175
King World Productions.............. 16,400 574,000
-----------
1,092,175
-----------
- ---------------
Top 10 stock holdings, representing 16.1% of net assets, are in bold.
<PAGE>
Number Market
of Shares Value
COMMON STOCK (Continued)
Chemicals-3.69%
Ferro.................................... 13,300 $ 492,931
Lawter International..................... 51,300 647,663
*Scotts.................................... 24,500 710,500
-----------
1,851,094
-----------
Computers & Technology-1.47%
Cadmus Communications.................... 22,900 359,244
*Micro Linear.............................. 36,600 379,725
-----------
738,969
-----------
Electronics & Electrical Equipment-3.91%
*Burr-Brown................................ 14,400 495,450
KUHLMAN.................................. 28,800 928,800
*Rexel..................................... 29,000 536,500
-----------
1,960,750
-----------
Energy-5.54%
*Belco Oil & Gas........................... 22,800 487,350
*EVI....................................... 12,800 537,600
*Offshore Logistics........................ 34,300 655,988
*Pool Energy Services...................... 31,600 575,712
*SEACOR Holdings........................... 10,000 523,125
-----------
2,779,775
-----------
Food, Beverage & Tobacco-3.75%
DiMon.................................... 20,600 545,900
*Fresh America............................. 23,800 435,838
SCHWEITZER-MAUDUIT INTERNATIONAL......... 23,900 896,250
-----------
1,877,988
-----------
22
<PAGE>
Value Series
Statement of Net Assets (Continued)
Number Market
of Shares Value
COMMON STOCK (Continued)
Healthcare & Pharmaceuticals-2.98%
*Lincare Holdings.......................... 10,600 $ 456,131
*Marqxette Electronics A................... 25,500 561,000
*Maxicare Health Plans..................... 21,300 478,584
-----------
1,495,715
-----------
Industrial Machinery-8.55%
Columbus McKinnon........................ 25,100 472,194
*Global Industries Technology.............. 19,600 401,800
IDEX..................................... 20,850 688,050
KEYSTONE INTERNATIONAL................... 27,300 946,969
Regal-Beloit............................. 21,600 572,400
*Shaw Group................................ 19,900 323,375
TriMas................................... 16,000 450,000
Watts Industries......................... 18,000 432,000
-----------
4,286,788
-----------
Leisure, Lodging & Entertainment-1.13%
*Ascent Entertainment Group................ 20,000 185,625
*Hollywood Park............................ 26,100 380,081
-----------
565,706
-----------
Metals & Mining-0.49%
Century Aluminum........................ 17,000 247,563
-----------
247,563
-----------
Paper & Forest Products-3.44%
Caraustar Industries..................... 12,700 439,738
Chesapeake............................... 10,700 361,125
Glatfelter (P.H.)........................ 21,200 424,000
Rayonier................................. 11,900 500,544
-----------
1,725,407
-----------
<PAGE>
Number Market
of Shares Value
COMMON STOCK (Continued)
Real Estate-11.74%
Cali Realty......................... 19,400 $ 659,600
Chateau Communities................. 15,116 432,690
D.R. Horton......................... 52,400 543,650
Duke Realty Investments............. 11,700 473,850
Excel Realty Trust.................. 17,600 464,200
Kilroy Realty....................... 7,100 179,275
PATRIOT AMERICAN HOSPITALITY........ 31,900 813,450
Prentiss Properties Trust........... 25,300 648,313
Public Storage...................... 19,000 555,750
Reckson Associates Realty........... 28,600 657,800
Starwood Lodging Trust.............. 10,750 458,891
-----------
5,887,469
-----------
Retail-2.58%
*Kemet................................ 25,300 630,919
*Waban................................ 20,600 663,063
-----------
1,293,982
-----------
Textiles, Apparel & Furniture-3.55%
Heilig-Meyers....................... 34,500 677,063
Kellwood............................ 22,000 610,500
*Quaker Fabric........................ 30,000 491,250
-----------
1,778,813
-----------
Transportation & Shipping-4.97%
Airborne Freight.................... 11,400 477,375
*M.S. Carriers........................ 22,600 565,000
*MESABA HOLDINGS...................... 49,400 737,913
USFreightways....................... 27,600 712,425
-----------
2,492,713
-----------
Utilities-1.54%
Public Service Company of New Mexico 18,100 323,538
Sierra Pacific Resources............ 14,100 451,200
-----------
774,738
-----------
Total Common Stock (cost $36,156,687) 43,832,901
-----------
23
<PAGE>
Value Series
Statment of Net Assets (Continued)
Principal Market
Amount Value
REPURCHASE AGREEMENTS-9.10%
With Chase Manhattan 5.80% 7/1/97 (dated
6/30/97, collateralized by $1,605,000
U.S. Treasury Notes 5.375% due 11/30/97,
market value $1,610,465)................ $1,578,000 $1,578,000
With J.P. Morgan Securities 5.80% 7/1/97
(dated 6/30/97, collateralized by
$1,520,000 U.S. Treasury Notes 5.125%
due 4/30/98, market value
$1,525,625)............................. 1,492,000 1,492,000
With PaineWebber 5.80% 7/1/97 (dated
6/30/97, collateralized by $944,000
U.S. Treasury Notes 7.25% due 2/15/98,
market value $978,373 and $512,000
U.S. Treasury Notes 9.125% due
5/15/99, market value $544,270)......... 1,492,000 1,492,000
-----------
Total Repurchase Agreements
(cost $4,562,000)....................... 4,562,000
-----------
TOTAL MARKET VALUE OF SECURITIES
(cost $40,718,687)-96.50%................. 48,394,901
RECEIVABLES AND OTHER ASSETS
NET OF LIABILITIES-3.50%.................. 1,757,471
-----------
NET ASSETS APPLICABLE TO 3,181,440 SHARES
($.01 PAR VALUE) OUTSTANDING;
EQUIVALENT TO $15.76 PER SHARE-100.00%..... $50,152,372
===========
COMPONENTS OF NET ASSETS AT JUNE 30, 1997:
Common stock, $.01 par value, 750,000,000
shares authorized to the Fund with
50,000,000 shares allocated to the
Series...................................... $41,162,495
Accumulated undistributed:
Net investment income...................... 207,458
Net realized gain on investments........... 1,106,205
Net unrealized appreciation of investments. 7,676,214
-----------
Total net assets............................. $50,152,372
===========
- -----------------
*Non-income producing security for the period ended June 30, 1997.
See accompanying notes
24
<PAGE>
Delaware Group Premium Fund, Inc.-Trend Series
(Formerly Emerging Growth Series)
Statement of Net Assets
June 30, 1997
(Unaudited)
Number Market
of shares Value
COMMON STIOCK-88.74%
Aerospace & Defense-1.41%
AAR................................. 25,700 $ 830,431
*Kellstrom Industries................. 16,400 258,300
----------
1,088,731
----------
Banking, Finance & Insurance-2.26%
*Long Beach Financial................ 8,900 77,875
Medallion Financial................. 28,900 547,294
Ocwen Asset Investment.............. 36,100 728,769
Security Capital Pacific Trust...... 16,900 386,588
----------
1,740,526
----------
Buildings & Materials-0.47%
*Comfort Systems USA.................. 23,100 360,938
----------
360,938
----------
Cable, Media, & Publishing-6.07%
*EVERGREEN MEDIA CLASS A.............. 29,600 1,319,050
*Gemstar International Group Limited.. 19,200 356,400
*HSN.................................. 33,852 1,059,991
*Hollywood Entertainment.............. 29,100 669,300
*Journal Register..................... 22,900 455,138
*Metro Networks....................... 12,200 297,375
*Norwood Promotional Products......... 35,900 520,550
----------
4,677,804
----------
Computers & Technology-14.13%
*Activision........................... 1,000 14,375
*Aspect Development................... 25,000 650,781
*Black Box............................ 16,200 651,544
*Checkfree............................ 41,800 735,419
*Credit Management Solutions.......... 32,400 417,150
*Cypress Semiconductor................ 79,300 1,149,850
*EMC.................................. 32,500 1,267,500
*GTECH Holdings....................... 25,400 819,150
*INSO................................. 20,600 428,094
*Komag................................ 40,300 661,172
*NOVA................................. 28,800 747,000
*PSW Technologies..................... 17,400 207,713
*Peerless Systems..................... 55,000 770,000
*Platinum Technology ................. 73,495 982,996
*Puma Technology...................... 22,800 192,375
*Veritas Software..................... 23,700 1,187,963
----------
10,883,082
----------
- -----------------
Top 10 stock holdings, representing 19.3% of net assets, are in bold.
<PAGE>
Number Market
of shares Value
COMMON STOCK (Continued)
Consumer Products-0.78%
*Home Products International............. 12,700 $ 126,206
*Racing Champions........................ 27,100 418,356
*Zag Industries Limited.................. 5,300 53,828
----------
598,390
----------
Electronics & Electrical Equipment-6.35%
*Aavid Thermal Technologies.............. 17,200 351,525
*ITI Technologies........................ 23,800 545,913
*Micrel.................................. 6,400 324,800
*P-COM................................... 34,600 1,137,475
Pittston Brink's Group.................. 29,900 897,000
*Protection One.......................... 40,500 549,281
*Sipex................................... 30,500 1,086,563
----------
4,892,557
----------
Energy-2.91%
*Patterson Energy........................ 23,400 1,058,850
*Precision Drilling...................... 24,400 1,180,350
----------
2,239,200
----------
Environmental Services-4.16%
*REPUBLIC INDUSTRIES..................... 71,240 1,727,570
*Superior Services....................... 21,600 508,950
*TETRA Technologies...................... 14,300 338,731
*Veritas DGC............................. 26,000 591,500
*Waste Industries........................ 2,300 40,681
----------
3,207,432
----------
Food, Beverage & Tobacco-0.61%
*Cheesecake Factory...................... 800 16,800
*United Natural Foods.................... 21,900 453,056
----------
469,856
----------
25
<PAGE>
Trend Series
Statement of Net Assets (Continued)
Number Market
of shares Value
COMMON STOCK (Continued
Healthcare & Pharmaceuticals-13.46%
ADAC Laboratories..................... 21,500 $ 507,938
*Alternative Living Services........... 27,200 610,300
*AMERICAN ONCOLOGY RESOURCES........... 72,200 1,213,863
*ArQule................................ 19,700 339,825
*Ariad Pharmaceuticals................. 46,200 294,525
*Capstone Pharmacy..................... 67,800 735,206
*Cerus................................. 29,300 267,363
*DepoTech.............................. 29,200 396,025
*DUSA Pharmaceuticals.................. 37,200 230,175
*FPA Medical Management................ 28,300 670,356
*Guilford Pharmaceuticals.............. 44,600 1,092,700
*Medical Resources..................... 5,900 98,088
*Physician Sales & Service............. 30,600 582,356
*PMR................................... 21,500 507,938
*Renal Care Group...................... 17,500 730,625
*Res-Care.............................. 10,500 198,844
*SUNRISE ASSISTED LIVING............... 36,400 1,278,550
*Vertex Pharmaceuticals................ 16,100 613,813
----------
10,368,490
----------
Industrial Machinery-2.18%
*Central Sprinkler..................... 11,900 316,838
*PRI Automation........................ 24,300 921,881
Spinnaker Industries.................. 14,000 441,000
----------
1,679,719
----------
Leisure, Lodging & Entertainment-8.88%
*Ascent Entertainment Group............ 49,300 457,566
*CAPSTAR HOTEL......................... 57,200 1,830,400
*Dave & Buster's....................... 7,400 198,875
*Equity Marketing...................... 35,100 842,400
*EXTENDED STAY AMERICA................. 95,560 1,505,064
*Florida Panthers...................... 36,000 868,500
*Mirage Resorts........................ 23,200 585,800
*Morton's Restaurant Group............. 27,200 540,600
*Teardrop Golf......................... 2,100 7,744
----------
6,836,949
----------
<PAGE>
Number Market
of shares Value
COMMON STOCK (Continued
Metals & Mining-0.38%
*Kaynar Technologies.................. 15,800 $ 290,325
----------
290,325
----------
Packaging & Containers-1.28%
*Silgan Holdings...................... 25,400 982,663
----------
982,663
----------
Real Estate-0.24%
CWM Mortgage Holdings................ 7,800 186,713
----------
186,713
----------
Retail-9.29%
*Amazon.com .......................... 18,000 335,812
*Cost Plus............................ 39,700 1,027,238
*Duty Free International.............. 56,300 1,055,625
Eagle Hardware & Garden.............. 39,600 904,612
*GENERAL NUTRITION.................... 56,800 1,586,850
*Linens 'n Things..................... 13,600 402,900
*Piercing Pagoda...................... 23,200 580,000
Schultz Sav-O Stores................. 14,400 260,100
*Staples.............................. 25,650 594,759
*Wilmar Industries.................... 16,300 402,406
----------
7,150,302
----------
Telecommunications-4.85%
*IntelCom Group....................... 26,600 510,388
*PageMart Wireless.................... 58,100 497,481
*PairGain Technologies................ 12,000 186,375
*Powerwave Technologies............... 6,500 146,250
*Telco Systems........................ 57,800 509,363
*TELEPORT COMMUNICATIONS GROUP........ 40,200 1,369,313
*TeleSpectrum Worldwide............... 48,800 344,650
*Yurie Systems........................ 9,900 168,609
----------
3,732,429
----------
Textiles, Apparel & Furniture-0.95%
*Cyrk ................................. 3,600 41,850
*Quiksilver ........................... 12,300 392,063
*Sport-Haley........................... 17,500 295,313
----------
729,226
----------
26
<PAGE>
Trend Series
Statement of Net Assets (Continued)
Number Market
of shares Value
COMMON STOCK (Continued
Transportation & Shipping-0.49%
*Midwest Express Holdings.............. 13,650 $ 373,669
-----------
373,669
-----------
Utilities-1.18%
*AES................................... 10,596 749,667
*York Research......................... 20,400 156,825
-----------
906,492
-----------
Miscellaneous-6.41%
*AHL Services.......................... 18,500 283,281
*CUC INTERNATIONAL..................... 67,860 1,751,636
*Catalina Marketing .................. 10,900 524,563
*KLA Instruments .................. 11,000 536,594
*NFO Research.......................... 24,400 622,200
*Norrell............................... 28,900 953,700
*Pierce Leahy.......................... 8,200 147,600
RCM Technologies...................... 10,800 115,425
-----------
4,934,999
-----------
Total Common Stock (cost $60,465,170) 68,330,492
-----------
Principal Market
Amount Value
REPURCHASE AGREEMENTS-10.82%
With Chase Manhattan 5.80% 7/1/97 (dated
6/30/97, collateralized by $2,932,000
U.S. Treasury Notes 5.375% due 11/30/97,
market value $2,941,693)................ $2,882,000 $ 2,882,000
With J.P. Morgan Securities 5.95% 7/1/97
(dated 6/30/97, collateralized by
$2,777,000 U.S. Treasury Notes 5.125%
due 4/30/98, market value $2,786,724)... 2,726,000 2,726,000
With PaineWebber 5.80% 7/1/97 (dated
6/30/97, collateralized by $934,000
U.S. Treasury Notes 9.125% due 5/15/99,
market value $994,170 and $1,725,000
U.S. Treasury Notes 7.25% due 2/15/98,
market value $1,787,108)................ 2,725,000 2,725,000
---------
Total Repurchase Agreements
(cost $8,333,000)........................ 8,333,000
---------
<PAGE>
TOTAL MARKET VALUE OF SECURITIES
(cost $68,798,170)-99.56%................. $76,663,492
RECEIVABLES AND OTHER ASSETS NET OF
LIABILITIES-0.44% 340,416
-----------
NET ASSETS APPLICABLE TO 5,107,059 SHARES
(.01 PAR VALUE) OUTSTANDING;
EQUIVALENT TO $15.08 PER SHARE-100.00%..... $77,003,908
===========
COMPONENTS OF NET ASSETS AT JUNE 30,1997:
Common stock, $.01 par value, 750,000,000
shares authorized to the fund with
50,000,000 shares allocated to the
Series.................................... $69,192,324
Accumulated undistributed:
Net investment income.................... 9,707
Net realized loss on investments......... (63,445)
Net unrealized appreciation of investments 7,865,322
-----------
Total net assets........................... $77,003,908
===========
- -----------------
*Non-income producing security for the period ended June 30, 1997.
See accompanying notes
27
<PAGE>
Delaware Group Premium Fund, Inc.-Global Bond Series
Statement of Net Assets
June 30, 1997
(Unaudited)
Market
Principal Value
Amount* (U.S. $)
BONDS-91.59%
Australia-3.86%
New South Wales International
7.00% 4/1/04............................ A$ 150,000 $ 111,121
Queensland Treasury-Global
8.00% 5/14/03........................... 580,000 463,890
----------
575,011
----------
Canada-6.21%
Autobahn Schnell 8.50% 3/3/03............. C$ 60,000 48,540
Banque National De Paris 9.00% 8/13/02.... 250,000 204,754
Export-Import Bank of Japan
7.75% 10/8/02........................... 160,000 125,168
General Electric Capital of Canada
7.125% 2/12/04.......................... 100,000 76,192
Government of Canada 9.00% 12/1/04........ 100,000 84,796
Government of Canada 10.25% 3/15/14....... 100,000 97,721
KFW International Finance
6.50% 12/28/01.......................... 60,000 44,819
Kingdom of Norway 8.375% 1/27/03.......... 200,000 160,805
Ontario Hydro 10.00% 3/19/01.............. 100,000 83,345
----------
926,140
----------
Finland-1.44%
Republic of Finland Government
7.875% 7/28/04.......................... Fim 200,000 214,125
----------
214,125
----------
Germany-7.56%
Baden Wurt L-Finance NV
6.625% 8/20/03.......................... Dem 250,000 154,364
DSL Finance NV Amsterdam
6.00% 2/21/06........................... 500,000 292,447
Deut Pfandbriefe Hypobk Bank
5.625% 2/7/03........................... 500,000 296,058
Euro Bank Reconstruction &
Development 4.875% 2/28/01.............. 500,000 292,676
International Bank Reconstruction &
Development 6.125% 9/27/02.............. 150,000 91,458
----------
1,127,003
----------
<PAGE>
Market
Principal Value
Amount* (U.S. $)
BONDS- (Continued)
Italy-10.51%
Buoni Poliennali Del Tes 9.50% 2/1/01...... Itl 1,000,000,000 $ 648,564
Italian Government 12.00% 1/1/03........... 1,000,000,000 732,517
Republic of Italy 3.50% 6/20/01............ 20,000,000 186,232
----------
1,567,313
----------
Japan-8.77%
International Bank Reconstruction &
Development 4.50% 6/20/00................ Jpy 20,000,000 190,814
Japan Government-129 (10 Year Issue)
6.40% 3/20/00........................... 60,000,000 596,727
Japan Highway 7.875% 9/27/02............... 400,000 314,186
Matsushita Electric Industries
7.25% 8/1/02............................. 200,000 205,500
----------
1,307,227
----------
New Zealand-12.24%
Government of New Zealand
8.00% 2/15/01............................ Nz$ 250,000 176,848
Government of New Zealand
8.00% 4/15/04............................ 2,300,000 1,647,967
----------
1,824,815
----------
Sweden-10.48%
Swedish Government 8.00% 8/15/07 .......... Sk 4,000,000 569,829
Swedish Government 9.00% 4/20/09........... 300,000 45,894
Swedish Government 10.25% 5/5/03........... 2,300,000 359,666
Swedish Government 13.00% 6/15/01.......... 500,000 81,713
Sweden (Kingdom of) 5.50% 4/12/02.......... 4,000,000 504,728
----------
1,561,830
----------
United Kingdom-7.22%
Abbey National Treasury 8.00%
4/2/03...................................Gbp 200,000 340,878
Depfa Finance 7.125% 11/11/03.............. 100,000 163,363
Glaxo Wellcome 8.75% 12/01/05.............. 80,000 142,844
Powergen 8.50% 7/3/06...................... 100,000 173,353
SmithKline Beecham
8.375% 12/29/00.......................... 150,000 256,127
----------
1,076,565
----------
28
<PAGE>
Global Bond Series
Statement of Net Assets (Continued)
Market
Principal Value
Amount* (U.S. $)
BONDS- (Continued)
United States-23.30%
J. Sainsbury 6.25% 3/27/02.................. $100,000 $ 98,000
Korea Electric Power 6.375% 12/1/03......... 100,000 96,125
Republic of Finland 5.50% 2/9/01............ 800,000 476,996
U.S. Treasury Bonds 13.375% 8/15/01......... 700,000 876,729
U.S.Treasury Inflation Index Notes
3.375% 1/15/07........................... 404,306 394,704
U.S. Treasury Notes 5.625% 11/30/98........ 400,000 398,296
U.S. Treasury Notes 6.125% 7/31/00......... 300,000 298,944
U.S.Treasury Notes 7.50% 11/15/01.......... 800,000 833,896
----------
3,473,690
----------
Total Bonds (cost $13,606,676) 13,653,719
----------
REPURCHASE AGREEMENTS-12.20%
With Chase Manhattan 5.80% 7/01/97 (dated
6/30/97, collateralized by $635,000
U.S. Treasury Notes 5.375% due 11/30/97,
market value $642,139)................... 629,000 629,000
With J.P. Morgan Securities 5.80% 7/01/97
(dated 6/30/97, collateralized by $606,000
U.S. Treasury Notes 5.125% due 4/30/98,
market value $608,311)................... 595,000 595,000
With PaineWebber 5.80% 7/01/97 (dated
6/30/97, collateralized by $377,000
U.S. Treasury Notes 7.25% due 2/15/98,
market value $390,106, and $204,000)
U.S. Treasury Notes 9.125% due 5/15/99,
market value $217,016).................. 595,000 595,000
----------
Total Repurchase Agreements
(cost $1,819,000)....................... 1,819,000
----------
<PAGE>
TOTAL MARKET VALUE OF SECURITIES (cost $ 15,425,676)-103.79%.. 15,472,719
LIABILITIES NET OF RECEIVABLES AND OTHER ASSETS-(3.79%)....... (565,124)
-----------
NET ASSETS APPLICABLE TO 1,411,747 SHARES ($.01 PAR VALUE)
OUTSTANDING; EQUIVALENT TO $10.56 PER SHARE-100.00%......... $14,907,595
===========
COMPONENTS OF NET ASSETS AT JUNE 30, 1997:
Common stock, $.01 par value, 750,000,000 shares authorized
to the Fund with 50,000,000 shares allocated to the Series... $14,776,925
Accumulated undistributed:
Net investment income**..................................... 262,294
Net realized loss on investments**.......................... (183,142)
Net unrealized appreciation of investments and foreign
currencies................................................ 51,518
-----------
Total net assets.............................................. $14,907,595
===========
- --------------------------
*Principal amount is stated in the currency in which each bond is denominated
A$- Australian Dollars Jpy-Japanese Yen
C$- Canadian Dollars NZ$-New Zealand Dollars
Fim-Finish Markka Sk- Swedish Kroner
Dem-German Deutsche Mark Gbp-British Pounds
Itl-Italian Lira $- U.S. Dollars
**Accumulated net investment income includes net realized gains on foreign
currencies. Net realized gains on foreign currencies are included as a
component of ordinary income in accordance with provisions of the Internal
Revenue Code.
See accompanying notes.
29
<PAGE>
Delaware Group Premium Fund-Strategic Income Series
Statement of Net Assets
June 30, 1997
(Unaudited)
Market
Principal Value
Amount* (U.S. $)
CORPORATE BONDS-42.97%
Areospace & Defense-0.84%
Roller Bearing Company of America
sr sub nts 9.625% 6/15/07 ......... $ 25,000 $ 25,375
--------
25,375
--------
Banking, Finance & Insurance-0.86%
Credit Foncier de France
sr unsub seasoned 8.00% 1/14/02 ... 25,000 25,969
--------
25,969
--------
Cable, Media & Publishing-7.91%
STC Broadcasting
sr sub nts 11.00% 3/15/07 ......... 200,000 214,000
Von Hoffman Press
sr sub nts 10.375% 5/15/07 ........ 25,000 26,000
--------
240,000
--------
Computers & Technology-0.84%
Precise Technology
sr sub nts 11.125% 6/15/07 ........ 25,000 25,500
--------
25,500
--------
Energy-0.80%
Transamerican Energy
sr nts 11.50% 6/15/02.............. 25,000 24,375
--------
24,375
--------
Food, Beverage & Tobacco-0.50%
AFC Enterprises
sr sub nts 10.25% 5/15/07 ......... 15,000 15,263
--------
15,263
--------
Healthcare & Pharmaceuticals -1.92%
Cardinal Health nts 6.00% 1/15/06 ... 35,000 32,769
Leiner Health
sr sub nts 9.625% 7/10/07 ......... 25,000 25,500
--------
58,269
--------
<PAGE>
Market
Principal Value
Amount* (U.S. $)
CORPORATE BONDS (Continued)
Metals & Mining-6.86%
Westmin Resources
sr nts 11.00% 3/15/07................ $200,000 $ 208,000
--------
208,000
--------
Paper & Forest Products-0.82%
Drypers sr nts 10.25% 6/15/07 ......... 25,000 24,938
--------
24,938
--------
Packaging & Containers-4.23%
Stone Container
sr sub nts 12.25% 4/1/02 ............ 125,000 128,438
--------
128,438
--------
Retail-2.56%
Central Tractor sr nts 10.625% 4/1/07 . 50,000 52,000
Leslie's Poolmart
sr nts 10.375% 7/15/04............... 25,000 25,781
--------
77,781
--------
Telecommunications-4.82%
Paging Network
sr sub nts 10.125% 8/1/07 ........... 150,000 146,250
--------
146,250
--------
Textiles, Apparel & Furniture-7.50%
Anvil Knitwear sr nts 10.875% 3/15/07 . 200,000 202,000
Riddell Sports sr nts 10.50% 7/15/07 .. 25,000 25,625
--------
227,625
--------
Transportation & Shipping-2.51%
Chemical Leaman
sr nts 10.375% 6/15/05............... 50,000 51,125
Continential Airlines
pass thru cert 7.206%12/30/05 ....... 25,000 24,938
--------
76,063
--------
Total Corporate Bonds
(cost $1,287,382).................... 1,303,846
--------
30
<PAGE>
Strategic Income Series
Statement of Net Assets (Continued)
Market
Principal Value
Amount* (U.S. $)
FOREIGN BONDS-29.60%
Australia-3.43%
Queensland Treasury Global
8.00% 8/14/01.........................A$ 130,000 $103,934
--------
103,934
--------
Greece-3.06%
Hellenic Republic 11.00% 11/26/99 ... ..Grd 25,000,000 92,921
--------
92,921
--------
Italy-4.27%
Italian Government 9.50% 2/1/01 ........Itl 200,000,000 129,713
--------
129,713
--------
New Zealand-4.96%
Government of New Zealand
6.50% 2/15/00.........................NZ$ 40,000 27,101
Government of New Zealand
8.00% 11/15/06....................... 170,000 123,483
--------
150,584
--------
South Africa-4.45%
Republic of South Africa
12.50% 1/15/02........................Zar 650,0000 134,959
--------
134,959
--------
Sweden-4.28%
Swedish Government 10.25% 5/5/00 .......Swk 400,0000 58,643
Swedish Government 8.00% 8/15/07 ....... 500,000 71,229
--------
129,872
--------
United Kingdom-5.15%
UK Treasury 8.00% 6/10/03...............Gbp 90,000 156,158
--------
156,158
--------
Total Foreign Bonds (cost $894,476) .... 898,141
--------
<PAGE>
Market
Principal Value
Amount* (U.S. $)
AGENCY MORTGAGE-BACKED
SECURITIES-3.65%
Federal Home Loan Mortgage Corporation
6.00% 11/1/26......................... $23,989 $ 23,989
Federal Home Loan Mortgage Corporation
7.00% 3/1/11............ ............. 86,768 86,903
--------
Total Agency Mortgage-Backed
Securities (cost $108,826) 110,892
--------
ASSET-BACKED SECURITIES-1.65%
CIT Group Securitization
Series 95 2A2 6.00% 5/15/26 .......... 25,000 24,773
MetLife Capital Equipment Loan Trust
Series 97-A A 6.85% 5/20/08 .......... 25,000 25,227
--------
Total Asset-Backed Securities
(cost $49,716)......... 50,000
--------
COLLATERALIZED MORTGAGE
OBLIGATIONS-5.29%
Merrill Lynch Mortgage Investors-
Series C1-A1 6.95% 6/18/29 ........... 25,000 25,051
RALI Series 97-QS6 A5 7.50% 6/25/12 .... 40,000 40,925
Residential Accredit Loans
7.29% 6/25/26......................... 40,000 40,263
Residential Funding Mortgage-Sec I-
Series 94-S10 A 4 6.50% 3/25/09 ...... 30,000 29,240
Travelers Mortgage Securities
Series 84-1Z2 12.00% 3/1/14 .......... 21,883 24,947
--------
Total Collateralized Mortgage
Obligations (cost $159,252) .......... 160,426
--------
31
<PAGE>
Strategic Income Series
Statement of Net Assets (Continued)
Market
Principal Value
Amount* (U.S. $)
COMMERCIAL MORTGAGE BACKED SECURITIES-1.67%
First Union-Lehman Brothers Commercial Mortgage
7.15% 2/18/04 ................................... $50,000 $ 50,641
----------
Total Commercial Mortgage Backed Securities
(cost $50,375) .................................. 50,641
----------
U.S. TREASURY OBLIGATIONS-9.56%
U.S. Treasury Bonds 6.25% 8/15/23 ................. 25,000 23,156
U.S. Treasury Notes 6.75% 4/30/00 ................. 135,000 136,777
U.S. Treasury Notes 7.50% 2/15/05 ................. 100,000 105,799
U.S. Treasury Notes 6.25% 2/15/07 ................. 25,000 24,469
----------
Total U.S. Treasury Obligations
(cost $287,693) ................................ 290,201
----------
REPURCHASE AGREEMENTS-7.65%
With Chase Manhattan 5.80% 7/1/97 (dated
6/30/97, collateralized by $82,000
U.S. Treasury Notes 5.375% due 11/30/97,
market value $81,900) ........................... $80,000 $ 80,000
With J.P. Morgan Securities 5.80% 7/1/97
(dated 6/30/97, collateralized by $77,000
U.S. Treasury Notes 5.125% due 4/30/98,
market value $77,586)..... ........................ 76,000 76,000
With PaineWebber 5.80% 7/1/97 (dated
6/30/97, collateralized by $48,000
U.S. Treasury Notes 7.25% due 2/15/98,
market value $49,755 and $26,000
U.S. Treasury Notes 9.125% due 5/15/99,
market value $27,679) ........................... 76,000 76,000
----------
Total Repurchase Agreements
(cost $232,000) ............................. 232,000
----------
TOTAL MARKET VALUE OF SECURITIES-102.04%
(cost $3,069,720) ............................... 3,096,147
LIABILITIES NET OF RECEIVABLES AND OTHER ASSETS-(2.04%) (61,948)
----------
NET ASSETS APPLICABLE TO 296,532 SHARES ($.01 PAR VALUE)
OUTSTANDING; EQUIVALENT TO $10.23 PER SHARE-100.00% $3,034,199
==========
COMPONENTS OF NET ASSETS AT JUNE 30, 1997:
Common stock, $.01 par value, 750,000,000 shares authorized
to the Fund with 50,000,000 shares allocated to the Series $2,970,217
Accumulated undistributed:
Net investment income................................... 29,732
Net realized gain on investments........................ 8,102
Net unrealized appreciation of investments and foreign
currencies............................................ $ 26,148
----------
Total net assets.......................................... $3,034,199
==========
___________________
*Principal amount is stated in the currency in which each security is
denominated.
A$- Australian Dollars Itl-Italian Lire Swk-Swedish Krona
Gbp- British Pounds NZ$-New Zealand Dollar Zar-South African Rand
Grd- Greek Drakma
Summary of Abbreviations:
certs-certificates sr-senior
nts-notes sub-subordinated
See accompanying notes
32
<PAGE>
Delaware Group Premium Fund, Inc.-Devon Series
Statement of Net Assets
June 30, 1997
(Unaudited)
Number Market
of shares Value
COMMON STOCK-88.36%
Aerospace And Defense-3.43%
GENCORP................................. 3,500 $ 80,938
Lockheed Martin......................... 300 31,069
--------
112,007
--------
Automobiles & Automotive Parts-2.33%
Danaher................................. 1,500 76,219
--------
76,219
--------
Banking, Finance & Insurance-12.97%
American International Group. 400 59,750
BB&T.................................... 700 31,500
Chubb................................... 500 33,438
FEDERAL NATIONAL MORTGAGE............... 2,100 91,613
Nationwide Financial Services Class A 1,400 37,188
Penncorp Financial Group................ 800 30,800
Provident............................... 800 42,800
State Street Bank....................... 900 41,625
Unum.................................... 1,300 54,600
--------
423,314
--------
Buildings & Materials-2.11%
Foster Wheeler.......................... 1,700 68,850
--------
68,850
--------
Cable, Media & Publishing-5.27%
Banta................................... 1,000 27,250
Reynolds & Reynolds Class A............. 2,700 42,525
WALLACE COMPUTER SERVICES............... 3,400 102,213
--------
171,988
--------
Computers & Technology-1.89%
Hewlett-Packard......................... 1,100 61,600
--------
61,600
--------
Consumer Products-4.56%
General Electric........................ 1,000 65,375
MASCO................................... 2,000 83,500
--------
148,875
--------
Electronics & Electrical Equipment-3.63%
Intel................................... 200 28,313
Motorola................................ 900 68,400
Teleflex................................ 700 21,875
--------
118,588
--------
- -------------
Top 10 stock holdings, representing 30.4% of net assets, are in bold.
<PAGE>
Number Market
of shares Value
COMMON STOCK (Continued)
Energy-4.75%
Compagnie Francaise de Petroleum Total 700 $ 35,525
Kerr-McGee.............................. 1,200 76,050
Royal Dutch Petroleum................... 800 43,500
--------
155,075
--------
Food, Beverage & Tobacco-7.65%
CONAGRA................................. 1,500 96,188
Hershey Foods........................... 400 22,125
PHILIP MORRIS........................... 2,100 93,188
Universal Foods......................... 1,000 38,125
--------
249,626
--------
Healthcare & Pharmaceuticals-9.67%
Baxter International.................... 500 26,125
COLUMBIA/HCA HEALTHCARE................. 2,100 82,556
Johnson & Johnson....................... 1,100 70,813
Schering-Plough......................... 1,500 71,813
SmithKline Beecham...................... 700 64,138
--------
315,445
--------
Real Estate-4.77%
Colonial Properties Trust............... 500 14,688
Developers Diversified Realty 300 12,000
D.R. Horton............................. 2,400 24,900
Health Care Property Investors 700 24,675
Kilroy Realty........................... 500 12,625
Nationwide Health Properties............ 1,400 30,800
Storage USA............................. 500 19,125
Sun Communities......................... 500 16,781
--------
155,594
--------
Retail-4.37%
May Department Stores................... 800 37,800
RITE AID................................ 2,100 104,738
--------
142,538
--------
Telecommunications-1.54%
Alltel.................................. 1,500 50,156
--------
50,156
--------
33
<PAGE>
Devon Series
Statement of Net Assets (Continued)
Number Market
of shares Value
COMMON STOCK (Continued)
Textiles, Apparel & Furniture-9.84%
ECOLAB.................................. 2,900 $ 138,475
Hillenbrand Industries.................. 900 42,750
HON Industries.......................... 1,200 53,137
Miller (Herman)......................... 600 21,525
Valspar................................. 2,200 65,175
----------
321,062
----------
Utilities-4.14%
CMS Energy.............................. 1,300 45,825
Edison International.................... 1,200 29,850
Illinova................................ 900 19,800
PacifiCorp.............................. 1,800 39,600
----------
135,075
----------
Miscellaneous-5.44%
Pentair................................. 1,100 36,163
Tompkins................................ 1,300 23,238
TYCO INTERNATIONAL...................... 1,700 118,256
----------
177,657
----------
Total Common Stock (cost $2,728,796) 2,883,669
----------
CONVERTIBLE PREFERRED STOCK-0.42%
Metals And Mining-0.42%
Freeport-McMorran Copper & Gold
5.00% pfd cv.......................... 500 13,688
----------
Total Convertble Preferred Stock
(cost $13,795)........................ 13,688
----------
Principal Market
Amount Value
REPURCHASE AGREEMENTS-16.03%
With Chase Manhattan 5.80% 7/1/97 (dated
6/30/97, collaterized by $108,000 U.S.
Treasury Notes 5.375% due 11/30/97,
market value $108,630 and $76,000 U.S.
Treasury Notes 5.375% due 11/30/97, market
value $75,998)............................... $181,000 $ 181,000
With J.P. Morgan Securities 5.95% 7/1/97
(dated 6/30/97, collaterized by $108,000
U.S. Treasury Notes 5.125% due 4/30/98, market
value $108,667 and $66,000 U.S. Treasury
Notes 5.125% due 4/30/98, market value
$66,235)..................................... 171,000 171,000
With PaineWebber 5.80% 7/1/97 (dated
6/30/97, collaterized by $108,000 U.S.
Treasury Notes 7.25% due 2/15/98 market
value $112,163 and $59,000 U.S. Treasury
Notes 9.125% due 5/15/99 market value
$62,397)..................................... 171,000 171,000
----------
Total Repurchase Agreements
(cost $523,000)............................. 523,000
----------
TOTAL MARKET VALUE OF SECURITIES (cost $3,265,591)-104.81%... 3,420,357
LIABILITIES NET OF RECEIVABLES AND OTHER ASSETS-(4.81%)...... (156,991)
---------
NET ASSETS APPLICABLE TO 299,304 SHARES ($0.01 PAR VALUE)
OUTSTANDING; EQUIVALENT TO $10.90 PER SHARE-100.00%........ $3,263,366
==========
COMPONENTS OF NET ASSETS AT JUNE 30, 1997:
Common Stock, $0.01 par value 750,000,000 shares authorized
to the Fund with 50,000,000 shares allocated to the Series.. $3,080,879
Accumulated undistributed:
Net investment income...................................... 7,580
Net realized gain on investments........................... 20,141
Net unrealized appreciation on investments................. 154,766
----------
Total net assets............................................. $3,263,366
==========
See accompanying notes
34
<PAGE>
Delaware Group Premium Fund, Inc.-Emerging Markets Series
Statement of Net Assets
June 30, 1997
(Unaudited)
Market
Number Value
of Shares (U.S. $)
COMMON STOCK-86.66%
Australia-1.16%
Quilmes Industrial S.A. ADR........... 3,200 $ 37,200
--------
37,200
--------
Argentina-2.80%
Transportadora de Gas del sur, S.A.
Class B............................. 21,000 50,407
YPF Sociedad Anonima ADR.............. 1,300 39,591
--------
89,998
--------
Brazil-9.00%
ARACRUZ CELULOSE S.A. ADR............. 4,300 87,613
*Centrais Electricas de Santa Catarina
S.A. GDR.............................. 300 42,132
Companhia Energetica
de Minas Gerais ADR................. 700 35,924
TELECOMMUNICACOES BRASILEIRAS S.A. ADR 400 60,700
USINAS SIDERURGICAS
DE MINAS GERAIS S.A. ADR............ 5,600 62,720
--------
289,089
--------
Chile-4.89%
Administradora de Fondos
de Pensiones Provida S.A. ADR....... 1,500 33,000
*Banco BHIF ADR........................ 2,040 43,095
Cia. de Telecomunicaciones
de Chile S.A. ADR................... 1,260 41,580
Empresa Nacional Electricidad S.A. ADR 1,750 39,484
--------
157,159
--------
Czech Republic-1.34%
*Telekomunikacni Montaze Praha a.s..... 200 11,531
*SPT Telecom a.s....................... 300 31,466
--------
42,997
--------
Egypt-1.51%
*Commercial International Bank GDR..... 1,100 23,012
*Suez Cement GDR....................... 1,300 25,610
--------
48,622
- --------------------- --------
Top 10 stock holdings, representing 18.8% of net assets, are in bold.
<PAGE>
Market
Number Value
of Shares (U.S. $)
COMMON STOCK (Continued)
Greece-3.42%
Attica Enterprises S.A................ 4,300 $ 41,343
Ergo Bank S.A......................... 650 38,986
Helenic Bottling Company S.A.......... 800 29,531
--------
109,860
--------
Hong Kong-5.20%
*First Tractor.......................... 4,000 2,633
Guangdong Kelon Electric Holding 31,000 29,611
GUANGSHEN RAILWAY...................... 130,000 57,054
Northeast Electrical Transmission &
Transformation Machinery
Manufacturing Limited................ 164,000 27,309
Shenzhen Expressway Co Limited......... 184,000 50,471
--------
167,078
--------
Hungary-1.93%
MOL Magyar Olaj-es Gazipari Rt GDR.... 1,550 34,488
Richter Gedeon Rt GDR................. 300 27,600
--------
62,088
--------
India-6.33%
*BSES Limited GDR....................... 1,350 35,775
Gujarat Ambuja Cement GDR.............. 3,400 39,525
*India Fund, (The) ..................... 2,300 21,994
LARSEN & TOUBRO GDR.................... 3,150 53,944
Tata Engineering & Locomotive
Limited GDR.......................... 3,400 52,190
--------
203,428
--------
Indonesia-3.88%
PT Bank Dagang Nasional............... 64,000 45,409
PT Semen Gresik....................... 18,000 40,350
PT United Tractors.................... 10,500 38,869
--------
124,628
--------
Israel-2.48%
Bank Hapoalim......................... 19,200 39,950
Israel Chemicals Limited.............. 33,600 39,537
--------
79,487
--------
35
<PAGE>
Emerging Markets Series
Statement of Net Assets (Continued)
Market
Number Value
of Shares (U.S. $)
COMMON STOCK (Continued)
Luxemburg-1.75%
*BANQUE LIBANAISE GDR................... 2,700 $ 56,295
--------
56,295
--------
Malaysia-5.01%
Leader Universal Holdings Berhad...... 15,000 26,970
Nestle Berhad......................... 2,000 14,970
Petronas Dagangan Berhad.............. 15,000 35,644
Public Finance Berhad................. 17,000 26,123
Resorts World Berhad ................. 9,000 27,089
Sime Darby Berhad .................... 9,000 29,941
--------
160,737
--------
Mexico-7.60%
ALFA, S.A. de C.V. Class A............ 7,800 53,291
Cemex, S..A. de C.V. Class B 8,200 39,589
Grupo Minsa S.A. Class C.............. 18,000 23,371
Grupo Minsa ADR ...................... 2,400 30,000
Telefonos De Mexico S.A............... 870 41,543
VITRO S.A. ADR........................ 5,000 56,250
--------
244,044
--------
Peru-2.17%
Banco de Credito del Peru............. 15,500 31,234
Cementos Lima S.A..................... 1,002 20,156
Telefonica del Peru, S.A. ADR......... 700 18,331
--------
69,721
--------
Philippines-1.40%
Philippine Long Distance
Telephone Company ADR ................ 700 44,975
--------
44,975
--------
Portugal-2.58%
Electricidade de Portugal, S.A........ 2,100 38,518
Portugal Telecom S.A.................. 1,100 44,350
--------
82,868
--------
Russia-2.67%
*Gazprom ADR........................... 1,000 16,570
Lukoil Holding ADR.................... 500 39,215
Mosenergo ADR......................... 700 29,792
--------
85,577
--------
<PAGE>
Market
Number Value
of Shares (U.S. $)
COMMON STOCK (Continued)
Slovenia-1.39%
*Blagovno Trgovinski Center's GDR....... 1,925 $ 18,961
SKB Banka GDR.......................... 800 25,600
---------
44,561
---------
South Africa-6.02%
Amalgamated Banks of South Africa 4,000 28,713
ANGLOAMERICAN CORPORATION OF
SOUTH AFRICA LIMITED................... 920 55,439
Sappi Limited........................... 5,750 51,990
SASOL LIMITED........................... 4,350 57,079
---------
193,221
---------
South Korea-3.27%
Cho Hung Bank GDR...................... 2,600 17,355
Korea Electric Power ADR............... 2,100 39,753
Pohang Iron & Steel Limited ADR 1,500 48,000
---------
105,108
---------
Taiwan-1.61%
*Yageo GDR.............................. 2,600 51,662
---------
51,662
---------
Thailand-3.94%
Ayudhya Life Insurance................. 10,500 20,127
Hana Microelectronics.................. 9,000 50,751
K.R. Percision Public Company.......... 1,400 10,564
Ruang Khao 2 Fund...................... 86,500 22,108
Thai Reinsurance Co. Limited........... 8,600 23,026
---------
126,576
---------
Turkey-1.50%
Anadolu Isuzu Otomotiv Sanay........... 30,000 17,794
Netas-Northern Eleckrik
Telekomunikayson S.A.................. 110,371 30,500
---------
48,294
---------
Venezuela-1.81%
*COMPANIA ANONIMA NACIONAL TELEFONOS
DE VENEZUELA.......................... 1,350 58,219
---------
58,219
---------
Total Common Stock (cost $2,610,352)... 2,783,492
---------
36
<PAGE>
Emerging Market Series
Statement of Net Assets (Continued)
Market
Principal Value
Amount (U.S. $)
REPURCHASE AGREEMENTS-17.68%
With Chase Manhattan 5.80% 7/1/97 (dated
6/30/97, collateralized by $200,000
U.S. Treasury Notes 5.375% due 11/30/97,
market value $200,514).................... $196,000 $196,000
With J.P. Morgan Securities 5.80% 7/1/97
(dated 6/30/97, collateralized by $189,000
U.S. Treasury Notes 5.125% due 4/30/98,
market value $189,951).................... 186,000 186,000
With PaineWebber 5.80% 7/1/97 (dated
6/30/97, collateralized by $118,000
U.S. Treasury Notes 7.25% due 2/15/98,
market value $121,814 and $64,000
U.S. Treasury Notes 9.125% due 5/15/99,
market value $67,765)..................... 186,000 186,000
Total Repurchase Agreements --------
(cost $568,000)........................... 568,000
--------
TOTAL MARKET VALUE OF SECURITIES (cost $3,178,352)-104.34% $3,351,492
LIABILITIES NET OF RECEIVABLES AND OTHER ASSETS-(4.34%)..... (139,543)
---------
NET ASSETS APPLICABLE TO 296,335 SHARES ($.01 PAR VALUE)
OUTSTANDING; EQUIVALENT TO $10.84 PER SHARE-100.00%......... $3,211,949
==========
COMPONENTS OF NET ASSETS AT JUNE 30, 1997:
Common stock, $.01 par value, 750,000,000 shares
authorized to the Fund with 50,000,000 shares allocated
to the Series............................................. $3,010,358
Accumulated undistributed:
Net investment income..................................... 7,747
Net realized gain on investments ......................... 20,750
Net unrealized appreciation of investments and
foreign currencies....................................... 173,094
----------
Total net assets............................................ $3,211,949
- ---------------- ==========
*Non-income producing security for the period ended June 30, 1997.
ADR-American Depository Receipt
GDR-Global Depository Receipt
See accompanying notes
37
<PAGE>
Delaware Group Premium Fund, Inc.-Convertible Securities Series
Statement of Net Assets
June 30, 1997
(Unaudited)
Principal Market
Amount Value
CORPORTATE BONDS-3.68%
Signature Resorts 5.75% 1/15/07................. $80,000 $ 80,000
--------
Total Corporate Bonds (cost $79,000) 80,000
--------
CONVERTIBLE BONDS-38.59%
Computers & Technology-11.11%
Atmel 3.25% 6/1/00.............................. 80,000 86,000
Micron Technology 7.00% 7/1/04.................. 80,000 78,200
Unisys Corporation 8.25% 3/15/06................ 60,000 77,250
--------
241,450
--------
Electronics & Electrical Equipment-3.63%
Samsung Electronics 0.00% 12/31/07.............. 80,000 78,900
--------
78,900
--------
Healthcare & Pharmaceuticals-13.38%
ARV Assisted Living 6.75% 4/1/06................ 80,000 72,000
NABI 6.50% 2/1/03............................... 90,000 75,150
Phycor 4.50% 2/15/03............................ 70,000 76,125
Phymatrix 6.75% 6/15/03......................... 75,000 67,406
--------
290,681
--------
Metals & Mining-2.95%
Mascotech 4.50% 12/15/03........................ 75,000 64,125
--------
64,125
--------
Miscellaneous-7.52%
Personnel Group of America 5.75% 7/1/04......... 80,000 85,900
U.S. Office Products 5.50% 2/1/01............... 65,000 77,350
--------
163,250
--------
Total Convertible Bonds (cost $834,479)......... 838,406
--------
<PAGE>
Number Market
of Shares Value
COMMON STOCK-24.94%
Automobiles & Automotive Parts-3.32%
Chrysler........................................ 2,200 $ 72,188
--------
72,188
--------
Banking, Finance & Insurance-3.55%
Crescent Operating.............................. 210 2,940
SunAmerica...................................... 1,700 74,163
--------
77,103
--------
Real Estate-18.07%
Boston Properties............................... 3,200 88,000
Crescent Real Estate Equities................... 2,100 66,675
Equity Residential Properties................... 1,500 71,250
Lexington Corporate Properties.................. 5,800 81,200
Starwood Lodging Trust.......................... 2,000 85,375
--------
392,500
--------
Total Common Stock (cost $506,234).............. 541,791
--------
CONVERTIBLE PREFERRED STOCK-27.74%
Banking, Finance & Insurance-6.13%
American General 6.00% Series A................. 1,000 63,375
National Australia Bank 7.875% unit............. 2,500 69,843
--------
133,218
--------
Cable, Media & Publishing-6.79%
Evergreen Media 6.00%........................... 1,500 82,125
SFX Broadcasting 6.50% 5/31/07.................. 1,200 65,400
--------
147,525
--------
Environmental Services-2.60%
Browning-Ferris 7.25%........................... 1,700 56,525
--------
56,525
--------
38
<PAGE>
Convertible Securities Series
Statement of Net Assets (Continued)
Number Market
of Shares Value
CONVERTIBLE PREFERRED STOCK (Continued)
Leisure, Lodging & Entertainment-2.73%
Felcor Suite Hotels $1.95 Series A.............. 2,000 $ 59,250
--------
59,250
--------
Metals & Mining-3.02%
Freeport-McMoran Copper & Gold 7.00%............ 2,400 65,700
--------
65,700
--------
Real Estate-3.19%
Insignia Financial 6.50% 9/3/16................. 1,500 69,375
--------
69,375
Retail-3.28%
Kmart Financing................................. 1,300 71,175
--------
71,175
--------
Total Convertible Preferred Stock
(cost $592,712)................................ 602,768
--------
<PAGE>
Principal Market
Amount Value
REPURCHASE AGREEMENTS-0.60%
With Chase Manhattan 5.80% 7/1/97 (dated
6/30/97, collaterized by $3,000
U.S. Treasury Notes 5.375% due 11/30/97, market value
$2,700 and $2,000 U.S. Treasury Notes 5.375%
due 11/30/97, market value $1,889)..................... $5,000 $ 5,000
With J.P. Morgan Securities 5.95%
7/1/97 (dated 6/30/97, collaterized
by $3,000 U.S. Treasury Notes 5.125%
due 4/30/98, market value $2,701 and
$2,000 U.S. Treasury Notes 5.125%
due 4/30/98, market value $1,646)...................... 4,000 4,000
With PaineWebber 5.80% 7/1/97 (dated
6/30/97, collaterized by $1,000 U.S.
Treasury Notes 7.25% due 2/15/98
market value $1,551 and $3,000 U.S.
Treasury Notes 9.125% due 5/15/99
market value $2,788)................................... 4,000 4,000
----------
Total Repurchase Agreements
(cost $13,000)......................................... 13,000
----------
TOTAL MARKET VALUE OF SECURITIES (cost $2,025,425)-95.55%...... 2,075,965
RECEIVABLES AND OTHER ASSETS NET OF LIABILITIES-4.45%.......... 96,650
----------
NET ASSETS APPLICABLE TO 209,573 SHARES ($0.01 PAR VALUE)
OUTSTANDING; EQUIVALENT TO $10.37 PER SHARE-100.00%.......... $2,172,615
==========
COMPONENTS OF NET ASSETS AT JUNE 30, 1997:
Common Stock, $0.01 par value 750,000,000 shares authorized to
the Fund with 50,000,000 shares allocated to the Series....... $2,097,983
Accumulated undistributed:
Net investment income........................................ 17,649
Net realized gain on investments............................. 6,443
Net unrealized appreciation on investments................... 50,540
----------
Total net assets............................................... $2,172,615
==========
See accompanying notes
39
<PAGE>
Delaware Group Premium Fund, Inc.-Quantum Series
Statement of Net Assets
June 30, 1997
(Unaudited)
Number Market
of Shares Value
COMMON STOCK-94.95%
Automobiles & Automotive Parts-0.21%
Paccar....................................... 100 $ 4,644
--------
4,644
--------
Banking, Finance & Insurance-31.80%
Ahmanson (H.F.) & Co......................... 640 27,520
Allstate..................................... 290 21,170
AmSouth Bancorporation....................... 600 22,687
Bank of Boston............................... 265 19,097
Bank of New York............................. 405 17,618
BankAmerica.................................. 520 33,573
Bear Stearns................................. 775 26,495
Chase Manhattan.............................. 270 26,207
CIGNA........................................ 180 31,950
City National................................ 760 18,288
Comdisco..................................... 1,000 26,000
Comerica..................................... 380 25,840
Edwards (A.G.)............................... 610 26,306
First Chicago NBD............................ 265 16,033
First Union.................................. 150 13,875
First of America Bank........................ 513 23,447
Marsh & McLennan............................. 440 31,405
Mellon Bank.................................. 675 30,459
Mercury General.............................. 160 11,640
Mid Ocean.................................... 100 5,244
NationsBank.................................. 500 32,250
Old Republic International................... 600 18,187
*Oxford Health Plans.......................... 375 26,918
Paine Webber Group........................... 705 24,675
*Reliance Group Holdings...................... 1,820 21,613
*Republic New York............................ 125 13,438
*Student Loan Marketing Association........... 265 33,655
SunAmerica................................... 520 25,350
TRAVELERS GROUP.............................. 700 44,144
--------
695,084
--------
<PAGE>
Number Market
of Shares Value
COMMON STOCK (Continued)
Buildings & Materials-0.60%
Oakwood Homes................................ 550 $ 13,200
--------
13,200
--------
Cable, Media & Publishing-2.66%
Ennis Business Forms......................... 355 3,417
Harland (John H.)............................ 425 9,695
New York Times............................... 415 20,958
Omnicom Group................................ 390 24,034
--------
58,104
--------
Chemicals-0.44%
Avery Dennison............................... 135 5,417
International Flavors & Fragrances........... 85 4,293
--------
9,710
--------
Computers & Technology-9.32%
*Cadence Design Systems........................ 640 21,440
*COMPAQ COMPUTER............................... 450 44,663
Deluxe........................................ 465 15,868
HBO........................................... 425 29,272
*MICROSOFT..................................... 360 45,529
*Quantum....................................... 1,140 23,192
*Western Digital............................... 750 23,719
--------
203,683
--------
Consumer Products-2.27%
Avon Products................................ 385 27,167
Clorox....................................... 170 22,440
--------
49,607
--------
Electronics & Electrical Equipment-2.08%
*American Power Conversion..................... 1,225 23,160
Anixter International......................... 1,300 22,344
--------
45,504
--------
Energy-2.79%
*Global Marine................................. 850 19,763
Helmerich & Payne............................. 140 8,068
*Oryx Energy................................... 800 16,900
Union Texas Petroleum......................... 775 16,227
--------
60,958
--------
- ------------------------
Top 10 stocks holdings, representing 19.3% of net assets, are in bold.
40
<PAGE>
Quantum Series
Statement of Net Assets (Continued)
Number Market
of Shares Value
COMMON STOCK (Continued)
Food, Beverage & Tobacco-9.18%
*Boston Chicken................................. 1,255 $ 17,531
Campbell Soup.................................. 450 22,500
COCA COLA...................................... 570 39,758
Flowers Industries............................. 1,340 22,529
Hershey Foods.................................. 510 28,209
Hormel Foods................................... 160 4,300
International Multifoods....................... 150 3,769
Interstate Bakeries............................ 465 27,580
Quaker Oats.................................... 500 22,438
Ralston-Purina Group........................... 145 11,917
--------
200,531
--------
Healthcare & Pharmaceuticals-6.66%
*Amgen.......................................... 375 21,785
*Healthsouth.................................... 895 22,319
JOHNSON & JOHNSON.............................. 540 34,763
*Lincare Holdings............................... 495 21,300
*Phycor......................................... 275 9,462
SCHERING-PLOUGH................................ 750 35,906
--------
145,535
--------
Leisure, Lodging & Entertainment-1.95%
Callaway Golf.................................. 830 29,465
Fleetwood Enterprises.......................... 130 3,876
King World Productions......................... 265 9,275
--------
42,616
--------
Metals & Mining-0.47%
Cleveland Cliffs Iron.......................... 250 10,188
--------
10,188
--------
Packaging & Containers-0.87%
*Sealed Air..................................... 400 19,000
--------
19,000
--------
<PAGE>
Number Market
of Shares Value
COMMON STOCK (Continued)
Retail-9.17%
CVS Corporation............................... 200 $ 10,250
Gap........................................... 440 17,105
Jostens....................................... 345 9,099
Ross Stores................................... 875 28,574
*Safeway....................................... 630 29,059
Sears,Roebuck................................. 535 28,756
TJX........................................... 1,180 31,123
Tiffany....................................... 615 28,405
*Woolworth..................................... 750 18,000
----------
200,371
----------
Telecommunications-11.54%
*ADC Telecommunications........................ 860 28,756
AMERITECH..................................... 645 43,820
*Ascend Communications......................... 140 5,499
NYNEX......................................... 475 27,372
*PairGain Technologies......................... 835 12,969
SBC COMMUNICATIONS............................ 620 38,363
*TELLABS....................................... 630 35,162
U.S. WEST COMMUNICATIONS GROUP................ 1,600 60,300
----------
252,241
----------
Textiles, Apparel & Furniture-1.51%
NIKE.......................................... 240 14,010
*Tommy Hilfiger................................ 470 18,888
----------
32,898
----------
Transportation & Shipping-1.43%
*AMR........................................... 230 21,275
*UAL........................................... 140 10,019
----------
31,294
----------
Total Common Stock (cost $1,961,882)......... 2,075,168
----------
41
<PAGE>
Quantum Series
Statement of Net Assets (Continued)
Principal Market
Amount Value
REPURCHASE AGREEMENTS-5.76%
With Chase Manhattan 5.80% 7/01/97 (dated
6/30/97, collateralized by $44,000
U.S. Treasury Notes 5.375% due 11/30/97,
market value $44,480) ......................... $44,000 $44,000
With J.P. Morgan Securities 5.95% 7/01/97
(dated 6/30/97, collateralized by $42,000
U.S. Treasury Notes 5.125% due 4/30/98,
market value $42,137) ......................... 41,000 41,000
With PaineWebber 5.80% 7/01/97 (dated
6/30/97, collateralized by $26,000
U.S. Treasury Notes 7.25% due 2/15/98,
market value $27,022 and $14,000
U.S. Treasury Notes 9.125% due 5/15/99,
market value $15,032) ......................... $ 41,000 $ 41,000
Total Repurchase Agreements --------
(cost $126,000) ............................... 126,000
--------
TOTAL MARKET VALUE OF SECURITIES
(cost $2,087,882)-100.71% ...................... 2,201,168
LIABILITIES NET OF RECEIVABLES AND
OTHER ASSETS-(0.71%) ........................... (15,533)
NET ASSETS APPLICABLE TO 202,494 SHARES -----------
($0.01 PAR VALUE) OUTSTANDING;
EQUIVALENT TO $10.79 PER SHARE-100.00% ........ $ 2,185,635
===========
COMPONENTS OF NET ASSETS AT JUNE 30, 1997:
Common stock, $0.01 par value, 750,000,000 shares
authorized to the Fund with 50,000,000 shares
allocated to the Series ....................... $ 2,059,023
Accumulated undistributed :
Net investment income ......................... 3,212
Net realized gain on investments .............. 10,114
Net unrealized appreciation of investments .... 113,286
-----------
Total net assets ................................ $ 2,185,635
===========
===========
*Non-income producing security for the period ended June 30, 1997.
See accompanying notes
42
<PAGE>
Delaware Group Premium Fund, Inc.
Statements of Assets and Liabilities
June 30, 1997
(Unaudited)
<TABLE>
<CAPTION>
Decatur Capital Cash
Total Return Delchester Reserves Reserves
Series Series Series Series
------ ------ ------ ------
ASSETS:
<S> <C> <C> <C> <C>
Investments at market .................... $267,341,361 $ 77,844,497 $ 28,652,611 $ 31,229,060
Cash and foreign currencies .............. 59,743 501,825 -- 6,053
Dividends and interest receivable......... 590,422 1,485,354 254,277 129,190
Subscriptions receivable ................. 143,356 77,434 73 19,242
Receivable for securities sold ........... 1,741,049 -- 292,699 --
Other assets ............................. 1,950 -- -- --
------------ ------------ ------------ ------------
Total assets ........................... 269,877,881 79,909,110 29,199,660 31,383,545
------------ ------------ ------------ ------------
LIABILITIES:
Liquidations payable ..................... 466,488 5,101 77,237 850,638
Payable for securities purchased 4,318,039 104,475 839,091 --
Other accounts payable and accrued
expenses ............................... 165,431 51,745 589,619 19,536
------------ ------------ ------------ ------------
Total liabilities ...................... 4,949,958 161,321 1,505,947 870,174
------------ ------------ ------------ ------------
TOTAL NET ASSETS ......................... $264,927,923 $ 79,747,789 $ 27,693,713 $ 30,513,371
============ ============ ============ ============
Investments at cost ...................... $221,388,114 $ 75,409,337 $ 28,462,271 $ 31,229,060
============ ============ ============ ============
[RESTUBBED TABLE]
International
DelCap Delaware Equity Value
Series Series Series Series
------ ------ ------ ------
ASSETS:
Investments at market .................... $ 94,929,531 $ 97,886,995 $190,283,836 $ 48,394,901
Cash and foreign currencies .............. -- -- -- 660,835
Dividends and interest receivable......... 13,169 366,279 1,491,016 45,697
Subscriptions receivable ................. 74,853 337,454 350,072 1,812,577
Receivable for securities sold ........... 2,484,191 773,895 -- 51,531
Other assets ............................. 1,357 -- 202,705 --
------------ ------------ ------------ ------------
Total assets ........................... 97,503,101 99,364,623 192,327,629 50,965,541
------------ ------------ ------------ ------------
LIABILITIES:
Liquidations payable ..................... 12,485 10,908 -- 205
Payable for securities purchased 379,580 748,640 3,834,830 748,198
Other accounts payable and accrued
expenses ............................... 81,964 404,177 1,965,766 64,766
------------ ------------ ------------ ------------
Total liabilities ...................... 474,029 1,163,725 5,800,596 813,169
------------ ------------ ------------ ------------
TOTAL NET ASSETS ......................... $ 97,029,072 $ 98,200,898 $186,527,033 $ 50,152,372
============ ============ ============ ============
Investments at cost ...................... $ 79,404,482 $ 83,375,520 $154,420,181 $ 40,718,687
============ ============ ============ ============
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Global Strategic Emerging Convertible
Trend Bond Income Devon Markets Securities Quantum
Series Series Series Series Series Series Series
------ ------ ------ ------ ------ ------ ------
ASSETS:
<S> <C> <C> <C> <C> <C> <C> <C>
Investments at market ........ $76,663,492 $15,472,719 $ 3,096,147 $ 3,420,357 $ 3,351,492 $ 2,075,965 $ 2,201,168
Cash and foreign currencies
(cost of foreign currencies
are $32,722 for the Emerging
Markets Series) ............ -- 925 26,550 1,461 40,622 82,329 2,988
Dividends and interest
receivable .................. 2,510 373,415 69,368 3,920 4,692 12,191 1,836
Subscriptions receivable ..... 152,552 58,736 12,109 73,414 56,468 6,087 31,567
Receivable for
securities sold ............. 1,454,117 1,925,137 -- -- -- 67,900 46,152
Other assets ................. 156 -- -- -- -- -- --
----------- ----------- ----------- ----------- ----------- ----------- -----------
Total assets ............... 78,272,827 17,830,932 3,204,174 3,499,152 3,453,274 2,244,472 2,283,711
----------- ----------- ----------- ----------- ----------- ----------- -----------
LIABILITIES:
Liquidations payable ......... 48,676 37 -- -- -- -- --
Payable for securities
purchased ................... 1,104,418 2,850,726 166,350 232,914 235,376 69,305 95,822
Other accounts payable
and accrued expenses ........ 115,825 72,574 3,625 2,872 5,949 2,552 2,254
----------- ----------- ----------- ----------- ----------- ----------- -----------
Total liabilities .......... 1,268,919 2,923,337 169,975 235,786 241,325 71,857 98,076
----------- ----------- ----------- ----------- ----------- ----------- -----------
TOTAL NET ASSETS ............. $77,003,908 $14,907,595 $ 3,034,199 $ 3,263,366 $ 3,211,949 $ 2,172,615 $ 2,185,635
=========== =========== =========== =========== =========== =========== ===========
Investments at cost .......... $68,798,170 $15,425,676 $ 3,069,720 $ 3,265,591 $ 3,178,352 $ 2,025,425 $ 2,087,882
=========== =========== =========== =========== =========== =========== ===========
</TABLE>
See accompanying notes
43
<PAGE>
Delaware Group Premium Fund, Inc.
Statement of Operations
(Unaudited)
<TABLE>
<CAPTION>
Six Months Ended 6/30/97
Decatur Capital Cash
Total Return Delchester Reserves Reserves DelCap
Series Series Series Series Series
------ ------ ------ ------ ------
INVESTMENT INCOME:
<S> <C> <C> <C> <C> <C>
Interest .................... $ 211,318 $ 3,552,918 $ 981,587 $ 846,437 $ 297,660
Dividends ................... 2,905,712 149,485 -- -- 56,526
Foreign tax withheld ........ -- -- -- -- --
----------- ----------- ----------- ----------- -----------
3,117,030 3,702,403 981,587 846,437 354,186
----------- ----------- ----------- ----------- -----------
EXPENSES:
Management fees ............. 633,817 216,768 81,883 75,993 319,707
Custodian fees .............. 4,221 -- 1,512 2,702 5,297
Dividend disbursing
and transfer
agent fees and expenses .... 10,614 1,666 1,954 1,420 4,212
Registration fees ........... 21,718 2,945 750 1,650 5,559
Reports and statements
to shareholders ............ 2,600 3,177 1,000 1,110 1,748
Accounting fees and
salaries ................... 48,273 16,721 6,254 7,093 19,790
Professional fees ........... 5,769 4,927 3,708 2,395 1,420
Directors' fees ............. 1,851 838 500 520 934
Taxes (other than taxes
on income) ................. 7,966 1,828 856 1,360 5,251
Other ....................... 12,202 2,678 941 557 4,984
----------- ----------- ----------- ----------- -----------
749,031 251,548 99,358 94,800 368,902
Less expenses absorbed
by Delaware Management
Company, Inc. or Delaware
International Advisers Ltd. -- -- -- -- (31,450)
----------- ----------- ----------- ----------- -----------
NET INVESTMENT INCOME ....... 2,367,999 3,450,855 882,229 751,637 16,734
----------- ----------- ----------- ----------- -----------
NET REALIZED AND
UNREALIZED GAIN (LOSS)
ON INVESTMENTS AND
FOREIGN CURRENCIES:
Net realized gain (loss) on:
Investment transactions .... 9,630,955 1,172,737 (63,228) -- 3,155,394
Foreign currencies ......... -- -- -- -- --
----------- ----------- ----------- ----------- -----------
Net realized gain (loss) .... 9,630,955 1,172,737 (63,228) -- 3,155,394
----------- ----------- ----------- ----------- -----------
Net change in unrealized
appreciation (depreciation)
during the period:
Investment transactions .... 24,475,763 (156,527) (24,363) -- 2,073,754
Foreign currencies ......... -- -- -- -- --
----------- ----------- ----------- ----------- -----------
Net change in unrealized
appreciation (depreciation) 24,475,763 (156,527) (24,363) -- 2,073,754
NET REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS
AND FOREIGN CURRENCIES ..... 34,106,718 1,016,210 (87,591) -- 5,229,148
----------- ----------- ----------- ----------- -----------
NET INCREASE IN NET ASSETS
RESULTING FROM
OPERATIONS ................ $36,474,717 $ 4,467,065 $ 794,638 $ 751,637 $ 5,245,882
=========== =========== =========== =========== ===========
</TABLE>
<PAGE>
[RESTUBBED TABLE]
<TABLE>
<CAPTION>
Six Months Ended 6/30/97
International Global
Delaware Equity Value Trend Bond
Series Series Series Series Series
------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C>
Interest .................... $ 1,052,755 $ 269,743 $ 86,510 $ 235,961 $ 427,551
Dividends ................... 559,026 3,177,569 255,050 54,914 --
Foreign tax withheld ........ -- (250,245) -- -- (2,231)
------------ ------------ ------------ ------------ ------------
1,611,781 3,197,067 341,560 290,875 425,320
------------ ------------ ------------ ------------ ------------
EXPENSES:
Management fees ............. 256,553 577,074 129,672 243,484 46,622
Custodian fees .............. 1,050 54,438 6,074 10,339 1,603
Dividend disbursing
and transfer
agent fees and expenses .... 675 4,460 920 3,351 1,262
Registration fees ........... 931 5,675 6,400 1,211 1,930
Reports and statements
to shareholders ............ 1,126 7,040 3,002 2,178 1,300
Accounting fees and
salaries ................... 6,262 28,586 6,892 14,953 2,915
Professional fees ........... 364 4,056 3,651 3,632 7,250
Directors' fees ............. 932 1,431 527 766 319
Taxes (other than taxes
on income) ................. 2,213 5,043 1,359 2,065 2,200
Other ....................... 10,260 10,076 372 1,964 1,303
------------ ------------ ------------ ------------ ------------
280,366 697,879 158,869 283,943 66,704
Less expenses absorbed
by Delaware Management
Company, Inc. or Delaware
International Advisers Ltd. -- (88,086) (22,400) (26,767) (17,567)
------------ ------------ ------------ ------------ ------------
NET INVESTMENT INCOME ....... 1,331,415 2,587,274 205,091 33,699 376,183
------------ ------------ ------------ ------------ ------------
NET REALIZED AND
UNREALIZED GAIN (LOSS)
ON INVESTMENTS AND
FOREIGN CURRENCIES:
Net realized gain (loss) on:
Investment transactions .... 4,620,764 208,785 1,111,591 17,687 (200,796)
Foreign currencies ......... -- 2,445,945 -- -- 93,001
------------ ------------ ------------ ------------ ------------
Net realized gain (loss) .... 4,620,764 2,654,730 1,111,591 17,687 (107,795)
Net change in unrealized
appreciation (depreciation)
during the period:
Investment transactions .... 3,870,900 16,254,808 4,720,554 3,715,409 (206,453)
Foreign currencies ......... -- (296,104) -- -- 12,036
------------ ------------ ------------ ------------ ------------
Net change in unrealized
appreciation (depreciation) 3,870,900 15,958,704 4,720,554 3,715,409 (194,417)
NET REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS
AND FOREIGN CURRENCIES ..... 8,491,664 18,613,434 5,832,145 3,733,096 (302,212)
------------ ------------ ------------ ------------ ------------
NET INCREASE IN NET ASSETS
RESULTING FROM
OPERATIONS ................ $ 9,823,079 $ 21,200,708 $ 6,037,236 $ 3,766,795 $ 73,971
============ ============ ============ ============ ============
</TABLE>
44
See accompanying notes
<PAGE>
Delaware Group Premium Fund, Inc.
Statement of Operations (Continued)
<TABLE>
<CAPTION>
5/1/97* to 5/1/97* to 5/1/97* to
6/30/97 5/1/97* to 6/30/97 6/30/97 5/1/97* to
Strategic 6/30/97 Emerging Convertible 6/30/97
Income Devon Markets Securities Quantum
Series Series Series Series Series
------ ------ ------ ------ ------
INVESTMENT INCOME:
<S> <C> <C> <C> <C> <C>
Interest ......................... $ 36,040 $ 4,096 $ 7,033 $ 15,938 $ 2,045
Dividends ........................ -- 6,356 8,989 4,263 3,422
Foreign tax withheld ............. -- -- (911) -- --
--------- --------- --------- --------- ---------
36,040 10,452 5,111 20,201 5,467
--------- --------- --------- --------- ---------
EXPENSES:
Management fees .................. 2,979 2,259 5,001 2,514 2,191
Custodian fees ................... 958 650 5,312 2,965 1,163
Dividend disbursing and transfer
agent fees and expenses ........ 200 140 120 3,019 137
Registration fees ................ 1,850 800 2,538 1,500 695
Reports and statements
to shareholders ................. 300 373 275 391 550
Accounting fees and salaries ..... 286 245 253 207 185
Professional fees ................ 1,009 1,317 1,150 1,598 875
Directors' fees .................. 39 38 38 38 37
Taxes (other than taxes on income) 55 50 46 1,100 22
Other ............................ 64 145 61 587 612
--------- --------- --------- --------- ---------
7,740 6,017 14,794 13,919 6,467
Less expenses absorbed
by Delaware
Management Company,
Inc. or Delaware
International Advisers Ltd. ..... (4,114) (3,145) (8,845) (11,367) (4,212)
--------- --------- --------- --------- ---------
NET INVESTMENT INCOME ............ 32,414 7,580 9,162 17,649 3,212
--------- --------- --------- --------- ---------
NET REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS
AND FOREIGN CURRENCIES:
Net realized gain (loss) on:
Investment transactions ........ 8,102 20,141 20,750 6,443 10,114
Foreign currencies ............. (2,682) -- (1,415) -- --
--------- --------- --------- --------- ---------
Net realized gain ................ 5,420 20,141 19,335 6,443 10,114
Net change in unrealized
appreciation (depreciation)
during the period
Investment transactions ......... 26,148 154,766 173,140 50,540 113,286
Foreign currencies .............. -- -- (46) -- --
--------- --------- --------- --------- ---------
Net change in unrealized
appreciation (depreciation) . 26,148 154,766 173,094 50,540 113,286
NET REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS
AND FOREIGN CURRENCIES ......... 31,568 174,907 192,429 56,983 123,400
--------- --------- --------- --------- ---------
NET INCREASE IN NET ASSETS
RESULTING FROM
OPERATIONS ..................... $ 63,982 $ 182,487 $ 201,591 $ 74,632 $ 126,612
========= ========= ========= ========= =========
</TABLE>
- -------------------------
*Date of commencement of operations. See accompanying notes
<PAGE>
Delaware Group Premium Fund, Inc.
Statements of Changes in Net Assets
(Unaudited)
<TABLE>
<CAPTION>
Six Months Ended 6/30/97
Decatur Capital Cash
Total Return Delchester Reserves Reserves DelCap
Series Series Series Series Series
------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C>
INCREASE(DECREASE)IN NET
ASSETS FROM OPERATIONS:
Net investment income................... $ 2,367,999 $ 3,450,855 882,229 $ 751,637 $ 16,734
Net realized gain (loss) on investments
and foreign currencies................ 9,630,955 1,172,737 (63,228) -- 3,155,394
Net change in unrealized appreciation
(depreciation) during the period...... 24,475,763 (156,527) (24,363) -- 2,073,754
------------ ----------- ----------- ----------- -----------
Net increase (decrease) in net assets
resulting from operations............. 36,474,717 4,467,065 794,638 751,637 5,245,882
------------ ----------- ----------- ----------- -----------
DISTRIBUTION TO
SHAREHOLDERS FROM:
Net investment income................... (2,170,882) (3,381,154) (882,697) (751,637) --
Net realized gain from
security transactions................. (14,788,457) -- -- -- (4,513,513)
------------ ----------- ----------- ----------- -----------
(16,959,339) (3,381,154) (882,697) (751,637) (4,513,513)
------------ ----------- ----------- ----------- -----------
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold............... 73,014,133 13,451,883 2,482,264 50,713,775 17,537,843
Net asset value of shares issues upon
reinvestment of dividends from net
investment income and net realized
gain on security transactions......... 16,959,339 3,381,154 882,697 751,583 4,513,513
------------ ----------- ----------- ----------- -----------
89,973,472 16,833,037 3,364,961 51,465,358 22,051,356
Cost of shares repurchased.............. (11,207,504) (5,835,847) (3,350,802) (47,430,541) (5,655,129)
------------ ----------- ----------- ----------- -----------
Increase in net assets derived
from capital share transactions....... 78,765,968 10,997,190 14,159 4,034,817 16,396,227
------------ ----------- ----------- ----------- -----------
NET INCREASE(DECREASE)IN
NET ASSETS............................ 98,281,346 12,083,101 (73,900) 4,034,817 17,128,596
------------ ----------- ----------- ----------- -----------
NET ASSETS:
Beginning of period..................... 166,646,577 67,664,677 27,767,613 26,478,554 79,900,476
------------ ----------- ----------- ----------- -----------
End of period........................... $264,927,923 $79,747,778 $27,693,713 $30,513,371 $97,029,072
============ =========== =========== =========== ===========
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Six Months Ended 6/30/97
International Global
Delaware Equity Value Trend Bond
Series Series Series Series Series
------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C>
INCREASE(DECREASE)IN NET
ASSETS FROM OPERATIONS:
Net investment income.................. $ 1,331,415 $ 2,587,274 $ 205,091 $ 33,699 $ 376,183
Net realized gain (loss) on investments
and foreign currencies............... 4,620,764 2,654,730 1,111,591 17,687 (107,795)
Net change in unrealized appreciation
(depreciation) during the period..... 3,870,900 15,958,704 4,720,554 3,715,409 (194,417)
----------- ------------ ----------- ----------- -----------
Net increase (decrease) in net assets
resulting from operations............ 9,823,079 21,200,708 6,037,236 3,766,795 73,971
----------- ------------ ----------- ----------- -----------
DISTRIBUTION TO
SHAREHOLDERS FROM:
Net investment income.................. (2,100,694) (4,927,079) (197,794) (204,613) (319,448)
Net realized gain from
security transactions................ (4,899,878) -- (1,672,255) (736,608) (83,855)
----------- ------------ ----------- ----------- -----------
(7,000,572) (4,927,079) (1,870,049) (941,221) (403,303)
----------- ------------ ----------- ----------- -----------
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold.............. 17,722,077 36,520,794 21,226,552 22,147,515 6,694,632
Net asset value of shares issues upon
reinvestment of dividends from net
investment income and net realized
gain on security transactions........ 7,000,572 4,927,079 1,870,049 941,221 403,303
----------- ------------ ----------- ----------- -----------
24,722,649 41,447,873 23,096,601 23,088,736 7,097,935
Cost of shares repurchased............. (4,746,365) (2,622,186) (794,156) (5,333,895) (1,331,826)
----------- ------------ ----------- ----------- -----------
Increase in net assets derived
from capital share transactions...... 19,976,284 38,825,687 22,302,445 17,754,841 5,766,109
----------- ------------ ----------- ----------- -----------
NET INCREASE(DECREASE)IN
NET ASSETS........................... 22,798,791 55,099,316 26,469,632 20,580,415 5,436,777
----------- ------------ ----------- ----------- -----------
NET ASSETS:
Beginning of period.................... 75,402,107 131,427,717 23,682,740 56,423,493 9,470,818
----------- ------------ ----------- ----------- -----------
End of period.......................... $98,200,898 $186,527,033 $50,152,372 $77,003,908 $14,907,595
=========== ============ =========== =========== ===========
</TABLE>
See accompanying notes
46
<PAGE>
Delaware Group Premium Fund, Inc.
Statements of Changes in Net Assets (Continued)
(Unaudited)
<TABLE>
<CAPTION>
5/1/97* 5/1/97* 5/1/97* 5/1/97* 5/1/97*
to to to to to
6/30/97 6/30/97 6/30/97 6/30/97 6/30/97
Strategic Emerging Convertible
Income Devon Markets Securities Quantum
Series Series Series Series Series
----------- ----------- ----------- ----------- -----------
INCREASE(DECREASE)IN NET
ASSETS FROM OPERATIONS:
<S> <C> <C> <C> <C> <C>
Net investment income ................. $ 32,414 $ 7,580 $ 9,162 $ 17,649 $ 3,212
Net realized gain (loss) on investments
and foreign currencies .............. 5,420 20,141 19,335 6,443 10,114
Net change in unrealized appreciation
(depreciation) during the period .... 26,148 154,766 173,094 50,540 113,286
----------- ----------- ----------- ----------- -----------
Net increase (decrease) in net assets
resulting from operations ........... 63,982 182,487 201,591 74,632 126,612
----------- ----------- ----------- ----------- -----------
DISTRIBUTION TO
SHAREHOLDERS FROM:
Net investment income ................. -- -- -- -- --
Net realized gain from
security transactions -- -- -- -- --
----------- ----------- ----------- ----------- -----------
-- -- -- -- --
----------- ----------- ----------- ----------- -----------
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold ............. 2,974,760 3,081,096 3,010,641 2,098,013 2,059,185
Net asset value of shares issues upon
reinvestment of dividends from net
investment income and net realized
gain on security transactions -- -- -- -- --
----------- ----------- ----------- ----------- -----------
2,974,760 3,081,096 3,010,641 2,098,013 2,059,185
Cost of shares repurchased ............ (4,543) (217) (283) (30) (162)
----------- ----------- ----------- ----------- -----------
Increase in net assets derived
from capital share transactions ..... 2,970,217 3,080,879 3,010,358 2,097,983 2,059,023
NET INCREASE(DECREASE)IN
NET ASSETS .......................... 3,034,199 3,263,366 3,211,949 2,172,615 2,185,635
----------- ----------- ----------- ----------- -----------
NET ASSETS:
Beginning of period -- -- -- -- --
----------- ----------- ----------- ----------- -----------
End of period ......................... $ 3,034,199 $ 3,263,366 $ 3,211,949 $ 2,172,615 $ 2,185,635
______________ =========== =========== =========== =========== ===========
*Date of commencement of operations.
</TABLE>
See accompanying notes
47
<PAGE>
Delaware Group Premium Fund, Inc.
Statement of Changes in Net Assets (Continued)
<TABLE>
<CAPTION>
Year Ended 12/31/96
Decatur Capital Cash
Total Return Delchester Reserves Reserves DelCap
Series Series Series Series Series
------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
INCREASE IN NET ASSETS
FROM OPERATIONS:
Net investment income (loss) ............... $ 3,405,801 $ 5,569,157 $ 1,772,824 $ 1,073,967 $ (71,762)
Net realized gain (loss) on investments
and foreign currencies ................... 14,743,863 684,792 (292,042) -- 4,627,563
Net change in unrealized appreciation
(depreciation) during the period ........ 6,445,954 953,156 (383,633) -- 3,704,225
------------- ------------- ------------- ------------- -------------
Net increase in net assets resulting
from operations .......................... 24,595,618 7,207,105 1,097,149 1,073,967 8,260,026
------------- ------------- ------------- ------------- -------------
SHAREHOLDERS FROM:
Net investment income ...................... (3,496,319) (5,569,157) (1,772,356) (1,073,967) (270,847)
Net realized gain from security transactions (8,895,014) -- -- -- (4,585,059)
------------- ------------- ------------- ------------- -------------
(12,391,333) (5,569,157) (1,772,356) (1,073,967) (4,855,906)
------------- ------------- ------------- ------------- -------------
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold .................. 52,083,570 17,364,098 5,108,430 57,526,653 24,165,659
Net asset value of shares issued upon
reinvestment of dividends from net
investment income and net realized
gain on security transactions ............ 12,391,333 5,569,157 1,772,356 1,073,758 4,855,906
------------- ------------- ------------- ------------- -------------
64,474,903 22,933,255 6,880,786 58,600,411 29,021,565
Cost of shares repurchased ................. (19,036,067) (13,511,480) (6,372,705) (48,460,039) (10,647,798)
------------- ------------- ------------- ------------- -------------
Increase in net assets derived from
capital share transactions ............... 45,438,836 9,421,775 508,081 10,140,372 18,373,767
------------- ------------- ------------- ------------- -------------
NET INCREASE (DECREASE) IN
NET ASSETS ............................... 57,643,121 11,059,723 (167,126) 10,140,372 21,777,887
------------- ------------- ------------- ------------- -------------
NETASSETS:
Beginning of period ........................ 109,003,456 56,604,954 27,934,739 16,338,182 58,122,589
------------- ------------- ------------- ------------- -------------
End of period .............................. $ 166,646,577 $ 67,664,677 $ 27,767,613 $ 26,478,554 $ 79,900,476
============= ============= ============= ============= =============
</TABLE>
- -------------
*Date of commencement of operations.
See accompanying notes
<PAGE>
<TABLE>
<CAPTION>
5/2/96*
to
12/31/96
International Global
Delaware Equity Value Trend Bond
Series Series Series Series Series
------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
INCREASE IN NET ASSETS
FROM OPERATIONS:
Net investment income (loss) ............... $ 2,396,290 $ 2,763,530 $ 200,524 $ 185,659 $ 231,186
Net realized gain (loss) on investments
and foreign currencies ................... 4,893,415 1,560,830 1,671,243 661,923 83,530
Net change in unrealized appreciation
(depreciation) during the period ........ 2,885,535 14,667,391 1,737,511 1,635,650 264,767
------------- ------------- ------------- ------------- -------------
Net increase in net assets resulting
from operations .......................... 10,175,240 18,991,751 3,609,278 2,483,232 579,483
------------- ------------- ------------- ------------- -------------
SHAREHOLDERS FROM:
Net investment income ...................... (2,087,278) (2,695,399) (182,035) (131,779) (119,481)
Net realized gain from security transactions (2,685,289) (725,191) (455,088) (1,171,368)
------------- ------------- ------------- ------------- -------------
(4,772,567) (3,420,590) (637,123) (1,303,147) (119,481)
------------- ------------- ------------- ------------- -------------
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold .................. 10,105,572 37,727,987 10,317,936 49,046,522 9,137,415
Net asset value of shares issued upon
reinvestment of dividends from net
investment income and net realized
gain on security transactions ............ 4,772,567 3,420,590 637,123 1,303,147 119,481
------------- ------------- ------------- ------------- -------------
14,878,139 41,148,577 10,955,059 50,349,669 9,256,896
Cost of shares repurchased ................. (8,093,881) (6,840,060) (2,173,784) (15,615,925) (246,080)
------------- ------------- ------------- ------------- -------------
Increase in net assets derived from
capital share transactions ............... 6,784,258 34,308,517 8,781,275 34,733,744 9,010,816
------------- ------------- ------------- ------------- -------------
NET INCREASE (DECREASE) IN
NET ASSETS ............................... 12,186,931 49,879,678 11,753,430 35,913,829 9,470,818
------------- ------------- ------------- ------------- -------------
NETASSETS:
Beginning of period ........................ 63,215,176 81,548,039 11,929,310 20,509,664 --
------------- ------------- ------------- ------------- -------------
End of period .............................. $ 75,402,107 $ 131,427,717 $ 23,682,740 $ 56,423,493 $ 9,470,818
============= ============= ============= ============= =============
</TABLE>
- -------------
*Date of commencement of operations.
See accompanying notes
48
<PAGE>
Delaware Group Premium Fund, Inc.
Financial Highlights
Selected data for each share of the Series outstanding throughout each period
were as follows:
<TABLE>
<CAPTION>
Decatur Total Return Series
--------------------------------------------------------------------------------------
Six
Months
Ended
6/30/97(1) Year Ended December 31,
(Unaudited) 1996 1995 1994 1993 1992
-------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period ....... $15.9800 $14.8300 $11.4800 $12.5100 $11.2200 $10.7500
Income from investment operations:
Net investment income .................... 0.1590 0.3771 0.4155 0.4121 0.4341 0.4155
Net realized and unrealized gain (loss)
from investments &
foreign currencies ..................... 2.5410 2.3979 3.5745 (0.4221) 1.2659 0.5045
-------- -------- -------- -------- -------- --------
Net increase (decrease) in net assets from
investment operations ................. 2.7000 2.7750 3.9900 (0.0100) 1.7000 0.9200
-------- -------- -------- -------- -------- --------
Less dividends and distributions:
Dividends from net investment income ..... (0.1700) (0.4200) (0.4300) (0.4200) (0.4100) (0.4500)
Distributions from net realized gain on
security transactions .................. (1.3500) (1.2050) (0.2100) (0.6000) none none
-------- -------- -------- -------- -------- --------
Total dividends and distributions ........ (1.5200) (1.6250) (0.6400) (1.0200) (0.4100) (0.4500)
-------- -------- -------- -------- -------- --------
Net asset value, end of period ............. $17.1600 $15.9800 $14.8300 $11.4800 $12.5100 $11.2200
======== ======== ======== ======== ======== ========
Total return................................ 18.27% 20.72% 36.12% (0.20%) 15.45% 8.82%
Ratios and supplemental data:
Net assets, end of period
(000's omitted)......................... $264,928 $166,647 $109,003 $72,725 $65,519 $38,278
Ratio of expenses to average net assets .. 0.71% 0.67% 0.69% 0.71% 0.75% 0.79%
Ratio of expenses to average net assets ..
prior to expense limitation ............ 0.71% 0.67% 0.69% 0.71% 0.76% 0.81%
Ratio of net investment income to average
net assets............................. 2.25 2.66% 3.24% 3.63% 3.95% 3.86%
Ratio of net investment income to average
net assets prior to expense limitation 2.25% 2.66% 3.24% 3.63% 3.94% 3.84%
Portfolio turnover........................ 54% 81% 85% 91% 67% 72%
Average commission rate paid(2) .......... $0.0600 $0.0600 N/A N/A N/A N/A
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Delchester Series
------------------------------------------------------------------------------------
Six
Months
Ended
6/30/97(1) Year Ended December 31,
(Unaudited) 1996 1995 1994 1993 1992
------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period ....... $9.1700 $8.9400 $8.5400 $9.7700 $9.2900 $9.1300
Income from investment operations:
Net investment income .................... 0.4363 0.8532 0.8715 0.9621 0.9758 1.0224
Net realized and unrealized gain (loss)
from investments &
foreign currencies ..................... 0.1118 0.2300 0.4000 (1.2300) 0.4800 0.1600
------- ------- ------- ------- ------- -------
Net increase (decrease) in net assets from
investment operations ................. 0.5481 1.0832 1.2715 (0.2679) 1.4558 1.1824
------- ------- ------- ------- ------- -------
Less dividends and distributions:
Dividends from net investment income ..... (0.4281) (0.8532) (0.8715) (0.9621) (0.9758) (1.0224)
Distributions from net realized gain on
security transactions .................. none none none none none none
------- ------- ------- ------- ------- -------
Total dividends and distributions ........ (0.4281) (0.8532) (0.8715) (0.9621) (0.9758) (1.0224)
------- ------- ------- ------- ------- -------
Net asset value, end of period ............. $9.2900 $9.1700 $8.9400 $8.5400 $9.7700 $9.2900
======= ======= ======= ======= ======= =======
Total return................................ 6.12% 12.79% 15.50% (2.87%) 16.36% 13.44%
Ratios and supplemental data:
Net assets, end of period
(000's omitted)......................... $79,748 $67,665 $56,605 $43,686 $34,915 $11,311
Ratio of expenses to average net assets .. 0.70% 0.70% 0.69% 0.72% 0.80% 0.80%
Ratio of expenses to average net assets ..
prior to expense limitation ............ 0.70% 0.70% 0.69% 0.72% 0.82% 0.94%
Ratio of net investment income to average
net assets............................. 9.59% 9.54% 9.87% 10.56% 10.05% 10.93%
Ratio of net investment income to average
net assets prior to expense limitation 9.59% 9.54% 9.87% 10.56% 10.03% 10.79%
Portfolio turnover........................ 104% 93% 74% 47% 43% 73%
Average commission rate paid(2) .......... N/A N/A N/A N/A N/A N/A
</TABLE>
_____________________
1 Ratios have been annualized and total return has not been annualized.
2 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
49
<PAGE>
Financial Highlights (Continued)
Selected data for each share of the Series outstanding throughout each period
were as follows:
<TABLE>
<CAPTION>
Capital Reserves Series
---------------------------------------------------------------------------------
Six
Months
Ended
6/30/97(1) Year Ended December 31,
(Unaudited) 1996 1995 1994 1993 1992
----------- ------- ------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period ........ $9.6900 $9.9300 $9.3000 $10.2600 $10.2000 $10.2300
Income from investment operations:
Net investment income ..................... 0.3099 0.6229 0.6431 0.6355 0.6357 0.6474
Net realized and unrealized gain (loss)
from investments &
foreign currencies ...................... (0.0300) (0.2400) 0.6300 (0.9050) 0.1450 0.0600
------- ------- ------- -------- -------- --------
Net increase (decrease) in net assets
from investment operations .............. 0.2799 0.3829 1.2731 (0.2695) 0.7807 0.7074
------- ------- ------- -------- -------- --------
Less dividends and distributions:
Dividends from net investment income ...... (0.3099) (0.6229) (0.6431) (0.6355) (0.6357) (0.6474)
Distributions from net realized gain on
security transactionsnone ............... none none none (0.0550) (0.0850) (0.0900)
------- ------- ------- -------- -------- --------
Total dividends and distributions ......... (0.3099) (0.6229) (0.6431) (0.6905) (0.7207) (0.7374)
------- ------- ------- -------- -------- --------
Net asset value, end of period .............. $9.6600 $9.6900 $9.9300 $9.3000 $10.2600 $10.2000
======= ======= ======= ======= ======== ========
Total return................................. 2.94% 4.05% 14.08% (2.68%) 7.85% 7.20
Ratios and supplemental data:
Net assets, end of period
(000's omitted).......................... $27,694 $27,768 $27,935 $25,975 $24,173 $9,790
Ratio of expenses to average net assets ... 0.73% 0.72% 0.71% 0.74% 0.80% 0.80%
Ratio of expenses to average net assets
prior to expense limitation ............. 0.73% 0.72% 0.71% 0.74% 0.85% 0.98%
Ratio of net investment income to average
net assets.............................. 6.48% 6.43% 6.64% 6.57% 6.20% 6.39%
Ratio of net investment income to average
net assets prior to expense limitation 6.48% 6.43% 6.64% 6.57% 6.15% 6.21%
Portfolio turnover......................... 142% 122% 145% 219% 198% 241%
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Cash Reserves Series
------------------------------------------------------------------------------
Six
Months
Ended
6/30/97(1) Year Ended December 31,
(Unaudited) 1996 1995 1994 1993 1992
-------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period ........ $10.0000 $10.0000 $10.0000 $10.0000 $10.0000 $10.0000
Income from investment operations:
Net investment income ..................... 0.2431 0.4824 0.5349 0.3614 0.2451 0.3202
Net realized and unrealized gain (loss)
from investments &
foreign currencies ...................... none none none none none none
-------- -------- -------- -------- -------- --------
Net increase (decrease) in net assets
from investment operations .............. 0.2431 0.4824 0.5349 0.3614 0.2451 0.3202
-------- -------- -------- -------- -------- --------
Less dividends and distributions:
Dividends from net investment income ...... (0.2431) (0.4824) (0.5349) (0.3614) (0.2451) (0.3202)
Distributions from net realized gain on
security transactionsnone ............... none none none none none none
-------- -------- -------- -------- -------- --------
Total dividends and distributions ......... (0.2431) (0.4824) (0.5349) (0.3614) (0.2451) (0.3202)
-------- -------- -------- -------- -------- --------
Net asset value, end of period .............. $10.0000 $10.0000 $10.0000 $10.0000 $10.0000 $10.0000
======== ======== ======== ======== ======== ========
Total return................................. 2.47% 4.93% 5.48% 3.68% 2.48% 3.25%
Ratios and supplemental data:
Net assets, end of period
(000's omitted).......................... $30,513 $26,479 $16,338 $20,125 $10,245 $7,774
Ratio of expenses to average net assets ... 0.62% 0.61% 0.62% 0.66% 0.80% 0.80%
Ratio of expenses to average net assets
prior to expense limitation ............. 0.62% 0.61% 0.62% 0.66% 0.86% 0.85%
Ratio of net investment income to average
net assets.............................. 4.94% 4.82% 5.35% 3.79% 2.44% 3.21%
Ratio of net investment income to average
net assets prior to expense limitation 4.94% 4.82% 5.35% 3.79% 2.38% 3.16%
Portfolio turnover......................... -- -- -- -- -- --
</TABLE>
_______________________
1 Ratios have been annualized and total return has not been annualized.
See accompanying notes
50
<PAGE>
Financial Highlights (Continued)
Selected data for each share of the Series outstanding throughout each period
were as follows:
<TABLE>
<CAPTION>
DelCap Series
--------------------------------------------------------------------
Six
Months
Ended
6/30/97(1) Year Ended December 31,
(Unaudited) 1996 1995 1994 1993 1992
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period ........ $15.8900 $15.1300 $11.7500 $12.2400 $11.1200 $11.0300
Income from investment operations:
Net investment income (loss) .............. 0.0054 (0.0145) 0.0720 0.0694 0.0558 0.0225
Net realized and unrealized gain (loss)
from investments &
foreign currencies ...................... 0.9146 2.0295 3.3780 (0.4994) 1.2142 0.1975
-------- -------- -------- -------- -------- --------
Net increase (decrease) in net assets
from investment operations .............. 0.9200 2.0150 3.4500 (0.4300) 1.2700 0.2200
-------- -------- -------- -------- -------- --------
Less dividends and distributions:
Dividends from net investment income ...... none (0.0700) (0.0700) (0.0600) (0.0200) (0.0100)
Distributions from net realized gain on
security transactions ................... (0.8700) (1.1850) none none (0.1300) (0.1200)
-------- -------- -------- -------- -------- --------
Total dividends and distributions ......... (0.8700) (1.2550) (0.0700) (0.0600) (0.1500) (0.1300)
-------- -------- -------- -------- -------- --------
Net asset value, end of period .............. $15.9400 $15.8900 $15.1300 $11.7500 $12.2400 $11.1200
======== ======== ======== ======== ======== ========
Total return................................. 6.05% 14.46% 29.53% (3.54%) 11.56% 1.99%
Ratios and supplemental data:
Net assets, end of period
(000's omitted)......................... $97,029 $79,900 $58,123 $39,344 $33,180 $14,251
Ratio of expenses to average net assets ... 0.80% 0.80% 0.80% 0.80% 0.80% 0.98%
Ratio of expenses to average net assets
prior to expense limitation ............. 0.83% 0.82% 0.85% 0.88% 1.00% 1.25%
Ratio of net investment income to average
net assets.............................. 0.04% (0.11%) 0.61% 0.64% 0.67% 0.28%
Ratio of net investment income to average
net assets prior to expense limitation . 0.01% (0.13%) 0.56% 0.56% 0.47% 0.01%
Portfolio turnover......................... 147% 85% 73% 43% 57% 52%
Average commission rate paid (2) ......... $0.0599 $0.0600 N/A N/A N/A N/A
</TABLE>
[RESTUBBED TABLE CONTINUED ON NEXT PAGE]
<PAGE>
[RESTUBBED TABLE]
Financial Highlights (Continued)
Selected data for each share of the Series outstanding throughout each period
were as follows:
<TABLE>
<CAPTION>
Delaware Series
---------------------------------------------------------------------
Six
Months
Ended
6/30/97(1) Year Ended December 31,
(Unaudited) 1996 1995 1994 1993 1992
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period ........ $16.6400 $15.5000 $12.6800 $13.3300 $13.5500 $12.9800
Income from investment operations:
Net investment income (loss) .............. 0.2277 0.5303 0.5088 0.4373 0.3280 0.4572
Net realized and unrealized gain (loss)
from investments &
foreign currencies ...................... 1.5623 1.7647 2.7612 (0.4473) 0.6920 1.2328
-------- -------- -------- -------- -------- --------
Net increase (decrease) in net assets
from investment operations .............. 1.7900 2.2950 3.2700 (0.0100) 1.0200 1.6900
-------- -------- -------- -------- -------- --------
Less dividends and distributions:
Dividends from net investment income ...... (0.4500) (0.5000) (0.4500) (0.3400) (0.4600) (1.0600)
Distributions from net realized gain on
security transactions ................... (1.0700) (0.6550) none (0.3000) (0.7800) (0.0600)
-------- -------- -------- -------- -------- --------
Total dividends and distributions ......... (1.5200) (1.1550) (0.4500) (0.6400) (1.2400) (1.1200)
-------- -------- -------- -------- -------- --------
Net asset value, end of period .............. $16.9100 $16.6400 $15.5000 $12.6800 $13.3300 $13.5500
======== ======== ======== ======== ======== ========
Total return................................. 11.70% 15.91% 26.58% (0.15%) 8.18% 13.85%
Ratios and supplemental data:
Net assets, end of period
(000's omitted)......................... $98,201 $75,402 $63,215 $47,731 $37,235 $15,150
Ratio of expenses to average net assets ... 0.66% 0.68% 0.69% 0.70% 0.80% 0.86%
Ratio of expenses to average net assets
prior to expense limitation ............. 0.66% 0.68% 0.69% 0.70% 0.89% 0.94%
Ratio of net investment income to average
net assets.............................. 3.13% 3.56% 3.75% 3.71% 3.33% 3.60%
Ratio of net investment income to average
net assets prior to expense limitation . 3.13% 3.56% 3.75% 3.71% 3.24% 3.52%
Portfolio turnover......................... 72% 92% 106% 140% 162% 202%
Average commission rate paid (2) .......... $0.0600 $0.0600 N/A N/A N/A N/A
- -------------
1 Ratios have been annualized and total return has not been annualized.
2 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.
</TABLE>
See accompanying notes
51
<PAGE>
Financial Highlights (Continued)
Selected data for each share of the Series outstanding throughout each period
were as follows:
<TABLE>
<CAPTION>
International Equity Series
-------------------------------------------------------------------------
Six
Months
Ended 10/29/92(1)
6/30/97(3) Year Ended December 31, to
(Unaudited) 1996 1995 1994 1993 12/31/92
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period ....... $15.1100 $13.1200 $11.8400 $11.6200 $10.0300 $10.0000
Income from investment operations:
Net investment income .................... 0.2182 0.5572 0.4194 0.2198 0.0523 0.0153
Net realized and unrealized gain (loss)
from investments &
foreign currencies ..................... 1.8068 1.9658 1.1906 0.0802 1.5477 0.0147
-------- -------- --------- -------- -------- --------
Net increase in net assets
from investment operations ............. 2.0250 2.5230 1.6100 0.3000 1.6000 0.0300
-------- -------- --------- -------- -------- --------
Less dividends and distributions:
Dividends from net investment income ..... (0.5450) (0.4200) (0.2400) (0.0700) (0.0100) none
Distributions from net realized gain on
security transactions................... none (0.1130) (0.0900) (0.0100) none none
-------- -------- --------- -------- -------- --------
Total dividends and distributions ........ (0.5450) (0.5330) (0.3300) (0.0800) (0.010) none
-------- -------- --------- -------- -------- --------
Net asset value, end of period ............. $16.5900 $15.1100 $13.1200 $11.8400 $11.6200 $10.0300
======== ======== ========= ======== ======== ========
Total return ............................... 13.95% 20.03% 13.98% 2.57% 15.97% 1.73%
Ratios and supplemental data:
Net assets, end of period
(000's omitted) ....................... $186,527 $131,428 $ 81,548 $ 57,649 $ 16,664 $ 177
Ratio of expenses to average net assets .. 0.80% 0.80% 0.80% 0.80% 0.80% (2)
Ratio of expenses to average net assets
prior to expense limitation ............ 0.91% 0.91% 0.89% 1.01% 1.85% (2)
Ratio of net investment income to average
net assets ............................ 3.38% 4.71% 3.69% 2.63% 1.85% (2)
Ratio of net investment income to average
net assets prior to expense limitation 3.27% 4.60% 3.60% 2.42% 0.80% (2)
Portfolio turnover ....................... 6% 8% 19% 13% 9% (2)
Average commission rate paid(4) ............ $ 0.0190 $ 0.0100 N/A N/A N/A N/A
</TABLE>
[RESTUBBED TABLE CONTINUED ON NEXT PAGE]
<PAGE>
[RESTUBBED TABLE]
Financial Highlights (Continued)
Selected data for each share of the Series outstanding throughout each period
were as follows:
<TABLE>
<CAPTION>
Value Series
--------------------------------------------------------------------
Six
Months
Ended 12/27/93(1)
6/30/97(3) Year Ended December 31, to
(Unaudited) 1996 1995 1994 12/31/93
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period ....... $14.5000 $12.4700 $10.2900 $10.210 $10.0000
Income from investment operations:
Net investment income .................... 0.1145 0.1120 0.1918 0.1481 none
Net realized and unrealized gain (loss)
from investments &
foreign currencies ..................... 2.1855 2.5480 2.2082 (0.0681) 0.2100
-------- -------- -------- ------- --------
Net increase in net assets
from investment operations ............. 2.3000 2.6600 2.4000 0.0800 0.2100
-------- -------- -------- ------- --------
Less dividends and distributions:
Dividends from net investment income ..... (0.1100) (0.1800) (0.1500) none none
Distributions from net realized gain on
security transactions................... (0.9300) (0.4500) (0.0700) none none
-------- -------- -------- ------- --------
Total dividends and distributions ........ (1.0400) (0.6300) (0.2200) none none
-------- -------- -------- ------- --------
Net asset value, end of period ............. $15.7600 $ 14.500 $12.4700 $10.290 $10.2100
======== ======== ======== ======= ========
Total return ............................... 16.89% 22.55% 23.85% 0.78% 2.10%
Ratios and supplemental data:
Net assets, end of period
(000's omitted) ....................... $ 50,152 $ 23,683 $ 11,929 $ 6,291 $ 210
Ratio of expenses to average net assets .. 0.80% 0.80% 0.80% 0.80% (2)
Ratio of expenses to average net assets
prior to expense limitation ............ 0.93% 0.99% 0.96% 1.41% (2)
Ratio of net investment income to average
net assets ............................ 1.19% 1.28% 2.13% 2.62% (2)
Ratio of net investment income to average
net assets prior to expense limitation 1.06% 1.09% 1.97% 2.01% (2)
Portfolio turnover ....................... 58% 84% 71% 26% (2)
Average commission rate paid(4) ............ $ 0.0596 $ 0.0600 N/A N/A N/A
- ----------------------
1 Date of commencement of operations; total return has been annualized.
2 The ratio of expenses and net investment income to average net assets and
portfolio turnover have been omitted as management believes that such ratios
are not meaningful due to the limited net assets of this Series.
3 Ratios have been annualized and total return has not been annualized.
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.
</TABLE>
See accompanying notes
52
<PAGE>
Financial Highlights (Continued)
Selected data for each share of the Series outstanding throughout each period
were as follows:
<TABLE>
<CAPTION>
Trend Series Global Bond Series
--------------------------------------------------------- ---------------------
Six Six
Months Months
Ended 12/27/93(1) Ended 5/2/96(1)
6/30/97(3) Year Ended December 31, to 6/30/97(3) to
(Unaudited) 1996 1995 1994 12/31/93 (Unaudited) 12/31/96
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period ....... $14.5600 $14.0200 $10.1600 $10.2000 $10.0000 $10.9600 $10.0000
Income from investment operations:
Net investment income .................... 0.0053 0.0500 0.0976 0.0791 none 0.3347 0.3390
Net realized and unrealized gain (loss)
from investments &
foreign currencies ..................... 0.7447 1.3800 3.8524 (0.1191) 0.2000 (0.3697) 0.8310
-------- -------- -------- -------- -------- -------- --------
Net increase (decrease) in net assets
from investment operations ............. 0.7500 1.4300 3.9500 (0.0400) 0.2000 (0.0350) 1.1700
-------- -------- -------- -------- -------- -------- --------
Less dividends and distributions:
Dividends from net investment income ..... (0.0500) (0.0900) (0.0900) none none (0.2800) (0.2100)
Distributions from net realized gain on
security transactions .................. (0.1800) (0.8000) none none none (0.0850) none
-------- -------- -------- -------- -------- -------- --------
Total dividends and distributions ........ (0.2300) (0.8900) (0.0900) none none (0.3650) (0.2100)
-------- -------- -------- -------- -------- -------- --------
Net asset value, end of period ............. $15.0800 $14.5600 $14.0200 $10.1600 $10.2000 $10.5600 $10.9600
======== ======== ======== ======== ======== ======== ========
Total return ............................... 5.25% 11.00% 39.21% (0.39%) 2.00% (0.25%) 11.79%
Ratios and supplemental data:
Net assets, end of period
(000's omitted) ....................... $ 77,004 $ 56,423 $ 20,510 $ 7,087 $ 204 $ 14,908 $ 9,471
Ratio of expenses to average net assets .. 0.80% 0.80% 0.80% 0.80% (2) 0.80% 0.80%
Ratio of expenses to average net assets
prior to expense limitation ............ 0.88% 0.92% 0.96% 1.47% (2) 1.08% 1.19%
Ratio of net investment income to average
net asset ............................. 0.10% 0.56% 1.03% 1.63% (2) 7.61% 6.51%
Ratio of net investment income to average
net assets prior to expense limitation 0.02% 0.44% 0.87% 0.96% (2) 7.32% 6.12%
Portfolio turnover ....................... 142% 112% 76% 59% (2) 107% 56%
Average commission rate paid(4) .......... $ 0.0597 $ 0.0598 N/A N/A N/A N/A N/A
_________________________
1 Date of commencement of operations; ratios have been annualized for the
Global Bond Series and total return has not been annualized for the Trend
Series and for the Global Bond Series.
2 The ratio of expenses and net investment income to average net assets and
portfolio turnover have been omitted as management believes that such ratios
are not meaningful due to the limited net assets
of this Series.
3 Ratios have been annualized and total return has not been annualized.
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.
</TABLE>
See accompanying notes
53
<PAGE>
Financial Highlights (Continued)
Selected data for each share of the Series outstanding throughout each period
were as follows:
<TABLE>
<CAPTION>
Strategic Emerging Convertible
Income Devon Markets Securities Quantum
Series Series Series Series Series
------ ------ ------ ------ ------
5/1/97(1) 5/1/97(1) 5/1/97(1) 5/1/97(1) 5/1/97(1)
to to to to to
6/30/97 6/30/97 6/30/97 6/30/97 6/30/97
(Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited)
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period ......... $10.0000 $10.0000 $10.0000 $10.0000 $10.0000
Income from investment operations:
Net investment income (loss) ............... 0.1093 0.0253 0.0309 0.0590 0.0159
Net realized and unrealized gain (loss)
from investments &
foreign currencies ....................... 0.1207 0.8747 0.8091 0.3110 0.7741
------- ------- ------- ------- --------
Net increase (decrease) in net assets
from investment operations ............... 0.2300 0.9000 0.8400 0.3700 0.7900
------- ------- ------- ------- --------
Less dividends and distributions:
Dividends from net investment income ....... none none none none none
Distributions from net realized gain on
security transactions..................... none none none none none
------- ------- ------- ------- --------
Total dividends and distributions .......... none none none none none
------- ------- ------- ------- --------
Net asset value, end of period ............... $10.2300 $10.9000 $10.8400 $10.3700 $10.7900
======= ======= ======= ======= ========
Total return ................................. 2.30% 9.00% 8.40% 3.90% 7.90%
Ratios and supplemental data:
Net assets, end of period
(000's omitted) ......................... $ 3,034 $ 3,263 $ 3,212 $ 2,173 $ 2,186
Ratio of expenses to average net assets 0.80% 0.80% 1.50% 0.80% 0.80%
Ratio of expenses to average net assets
prior to expense limitation .............. 1.70% 1.68% 3.71% 4.36% 2.29%
Ratio of net investment income to average
net assets .............................. 7.05% 2.12% 2.28% 5.53% 1.14%
Ratio of net investment income to average
net assets prior to expense limitation .. 6.15% 1.24% 0.07% 1.97% (0.35%)
Portfolio turnover ......................... 120% 45% 17% 96% 33%
Average commission rate paid2 .............. N/A $0.0600 N/A $ 0.060 $ 0.0334
- ---------------------
1 Date of commencement of operations; ratios have been annualized and total
return has not been annualized.
2 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..
</TABLE>
See accompanying notes
54
<PAGE>
Delaware Group Premium Fund, Inc.
Notes to Financial Statements
June 30, 1997
(Unaudited)
Delaware Group Premium Fund, Inc. (The "Fund"), is registered as a diversified
open-end investment company under the Investment Company Act of 1940, as
amended. The Fund is organized as a Maryland Corporation and offers 15 series:
the Decatur Total Return Series, the Delchester Series, the Capital Reserves
Series, the Cash Reserves Series, the Delcap Series, the Delaware Series, the
International Equity Series, the Value Series, the Trend Series, the Global Bond
Series, the Strategic Income Series, the Devon Series, the Emerging Markets
Series, the Convertible Securities Series, and the Quantum Series (the
"Series"). The shares of the Fund are sold only to separate accounts of life
insurance companies.
1. Significant Accounting Policies The following accounting
policies are in accordance with generally accepted accounting principles and are
consistently followed by the Fund:
Security Valuation-Securities listed on an exchange are valued at the last
quoted sales price as of the close of the NYSE on the valuation date.
Securities not traded or securities not listed on an exchange are valued at the
mean of the last quoted bid and asked prices. Securities listed on a foreign
exchange are valued at the last quoted sales price before the Fund is valued.
Long-term debt securities are valued by an independent pricing service and such
prices are believed to reflect the fair value of such securities. Money market
instruments having less than 60 days to maturity are valued at amortized cost
which approximates market value. Other securities and assets for which market
quotations are not readily available are valued at fair value as determined in
good faith by or under the direction of the Fund's Board of Directors.
Federal Income Taxes-Each series 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.
Repurchase Agreements-Each Series may invest in a pooled cash account along with
other members of the Delaware Group of Funds. The aggregate daily balance of the
pooled cash account is invested in repurchase agreements secured by obligations
of the U.S. Government. The respective collateral is held by the custodian bank
until the maturity of the respective repurchase agreements. Each repurchase
agreement is at least 100% collateralized. However, in the event of default or
bankruptcy by the counterparty to the agreement, realization of the collateral
may be subject to legal proceedings.
Foreign Currency Transactions-Transactions denominated in foreign currencies are
recorded at the current prevailing exchange rates. The value of all assets and
liabilities denominated in foreign currencies are translated into U.S. dollars
at the exchange rate of such currencies against the U.S. dollar as of 3:00 PM
EST. Transaction gains or losses resulting from changes in exchange rates during
the reporting period or upon settlement of the foreign currency transaction are
reported in operations for the current period. It is not practical to isolate
that portion of both realized and unrealized gains and losses on investments in
equity securities in the statement of operations that result from fluctuations
in foreign currency exchange rates. The Funds do isolate that portion of gains
and losses on investments in debt securities which are due to changes in the
foreign exchange rate from that which are due to changes in market prices of
debt securities. The Series reports certain foreign currency related
transactions as components of realized gains for financial reporting purposes,
whereas such components are treated as ordinary income (loss) for federal income
tax purposes.
Other-Expenses common to all Funds within the Delaware Group of Funds are
allocated amongst the Funds on the basis of average net assets. Security
transactions are recorded on the date the securities are purchased or sold
(trade date). Costs used in calculating realized gains and losses on the sale of
investment securities are those of the specific securities sold. Dividend income
is recorded on the ex-dividend date and interest income is recorded on the
accrual basis. Foreign dividends are also recorded on the ex-dividend date or as
soon after the ex-dividend date that the Funds are aware of such dividends, net
of all non-rebatable tax withholdings. Original issue discounts are accreted to
interest income over the lives of the respective securities. Withholding taxes
on foreign dividends have been provided for in accordance with the Fund's
understanding of the applicable country's tax rules and rates. The Delchester
Series, the Capital Reserves Series, the Cash Reserves Series and the Strategic
Income Series declare dividends daily from net investment income and pay such
dividends monthly. The Global Bond Series declares and pays dividends from net
investment income monthly. Short-term capital gains distributions, if any, may
be paid with the dividend. Distributi ons from net realized securities profits
normally will be distributed following the close of the fiscal year.
The Decatur Total Return Series, Delaware Series, Devon Series, Convertible
Securities Series and Quantum Series will make payments from the Series' net
investment income quarterly and distributions from net realized securities
profits, if any, following the close of the fiscal year.
55
<PAGE>
Notes to Financial Statements (Continued)
The DelCap Series, International Equity Series, Value Series and Emerging
Markets Series will make payments from net income and net realized securities
profits, if any, once a year.
The Trend Series will make payments from net investment income and net realized
securities profits, if any, twice a year.
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 each
Series except the International Equity Series, the Global Bond Series
and the Emerging Markets Series, and Delaware International Advisers Ltd.
("DIAL"), the investment manager of the International Equity Series, the Global
Bond Series, and the Emerging Markets Series, an annual fee which is calculated
daily on the average daily net assets of each Series, less the fees paid to the
unaffiliated directors of the Decatur Total Return Series, the Delchester
Series, the Capital Reserves Series, the Cash Reserves Series, the DelCap
Series, the Delaware Series, and the International Equity Series. The manageme
nt fee for the Value Series, the Trend Series, the Global Bond Series, the
Strategic Income Series, The Devon Series, the Emerging Markets Series, the
Convertible Securities Series, and the Quantum Series are calculated daily on
the net assets of each Series without consideration of amounts paid to
unaffiliated directors. The management fee rates are as follows:
<TABLE>
<CAPTION>
Decatur Capital Cash International
Total Return Delchester Reserves Reserves Delcap Delaware Equity Value
Series Series Series Series Series Series Series Series
------------ ---------- -------- -------- ------ -------- ------------- ------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Management fee as a percentage
of average daily net assets
(per annum)................... 0.60% 0.60% 0.60% 0.50% 0.75% 0.60% 0.75% 0.75%
Global Strategic Emerging Convertible
Trend Bond Income Devon Markets Securities Quantum
Series Series Series Series Series Series Series
------ ------ --------- ------ -------- ----------- -------
Management fee as a percentage
of average daily net assets
(per annum).................... 0.75% 0.75% 0.65% 0.60% 1.25% 0.75% 0.75%
<PAGE>
</TABLE>
DMC and DIAL have elected to waive their fees and reimburse each Series to the
extent that annual operating expenses exclusive of taxes, interest, brokerage
commissions and extraordinary expenses, exceed 0.80% of average daily net assets
for each Series, except for the International Equity Series and the Emerging
Market Series, through December 31, 1997. For the International Equity Series
DIALhas elected to waive their fee and reimburse the Series to the extent that
annual operating expenses exclusive of taxes, interest, brokerage commissions
and extraordinary expenses, exceed 0.80% of average daily net assets through
June 30, 1997 and 0.95% of average daily net assets through December 31, 1997
and 1.50% of average daily net assets for the Emerging Markets Series through
December 31, 1997. Total expenses absorbed by DMC and DIAL for the period ended
June 30, 1997 are as follows:
<TABLE>
<CAPTION>
Decatur Capital Cash International
Total Return Delchester Reserves Reserves Delcap Delaware Equity Value
Series Series Series Series Series Series Series Series
------------ ---------- -------- -------- ------- -------- ------------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Total expenses absorbed
by DMC or DIAL.............. --- --- --- --- $31,450 --- $88,086 $22,400
Global Strategic Emerging Convertible
Trend Bond Income Devon Markets Securities Quantum
Series Series Series Series Series Series Series
------ ------ --------- ------ -------- ----------- -------
Total expenses absorbed
by DMC or DIAL.............. $26,767 $17,567 $4,114 $3,145 $8,845 $11,367 $4,212
</TABLE>
56
<PAGE>
Notes to Financial Statements (Continued)
The Fund has engaged Delaware Service Company, Inc. ("DSC"), an affiliate of
DMC, to serve as dividend disbursing and transfer agent for the Fund. Effective
August 19, 1996, the Fund also engaged DSC to provide accounting services for
the Series. Previously, Fund personnel provided this service and the related
costs were recorded in salaries and other expense categories in the statement of
operations. For the period ended June 30, 1997, the amounts expensed for each
Series were as follows:
<TABLE>
<CAPTION>
Decatur Capital Cash International
Total Return Delchester Reserves Reserves Growth Delaware Equity Value
Series Series Series Series Series Series Series Series
------------ ---------- -------- -------- ------- -------- ------------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Dividend disbursing, transfer
agent fees and other expenses. $10,614 $1,666 $675 $1,420 $4,212 $1,954 $4,460 $920
Accounting fees................ $36,482 $11,515 $6,146 $4,872 $13,561 $4,331 $22,169 $5,581
Global Strategic Emerging Convertible
Trend Bond Income Devon Markets Securities Quantum
Series Series Series Series Series Series Series
------ ------ --------- ------ -------- ----------- -------
Dividend disbursing, transfer
agent fees and other expenses. $3,351 $1,262 $200 $140 $120 $3,019 $137
Accounting fees................ $10,186 $1,987 $172 $141 $150 $126 $110
</TABLE>
On June 30, 1997, the Fund had payables to affiliates as follows:
<TABLE>
<CAPTION>
Decatur Capital Cash International
Total Return Delchester Reserves Reserves Growth Delaware Equity Value
Series Series Series Series Series Series Series Series
------------ ---------- -------- -------- ------- -------- ------------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Investment Management fee payble
to DMC or DIAL.................. $103,925 $4,416 $13,703 $12,467 $58,202 $38,497 $101,402 $28,466
Dividend disbursing, transfer
agent fees, accounting fees and
other expenses payable to DSC... $9,645 $2,799 $877 $1,170 $3,283 $3,463 $6,495 $1,901
Other expenses payable to DMC and
affiliatess..................... $13,630 --- $1,647 $1,692 $5,316 $4,446 $10,013 $2,364
Global Strategic Emerging Convertible
Trend Bond Income Devon Markets Securities Quantum
Series Series Series Series Series Series Series
------ ------ --------- ------ -------- ----------- -------
Investment Management fee payble
to DMC or DIAL.................. $46,274 $60,548 --- --- ---- ----- ---
Dividend disbursing, transfer
agent fees, accounting fees and
other expenses payable to DSC.. $2,748 $4,857 --- --- ---- ----- ---
Other expenses payable to DMC and
affiliatess..................... $4,008 $2,743 --- --- ---- ----- ---
</TABLE>
Certain officers of DMC, DSC and DIAL are officers, directors and/or employees
of the Fund. These officers, directors and employees are paid no compensation by
the Fund.
57
<PAGE>
Notes to Financial Statements (Continued)
3. Investments
During the period ended June 30, 1997, the Fund made purchases and sales of
investment securities other than U.S. government securities and temporary cash
investments for each Series as follows:
<TABLE>
<CAPTION>
Decatur Capital International
Total Return Delchester Reserves Delcap Delaware Equity Value
Series Series Series Series Series Series Series
------------ ---------- ---------- ---------- ---------- ------------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
Purchases....................... $116,455,082 $41,977,680 $11,238,770 $70,264,702 $29,704,348 $41,116,855 $25,578,945
Sales........................... 55,142,175 35,073,208 11,204,901 53,607,890 17,612,015 4,674,299 9,247,340
Global Strategic Emerging Convertible
Trend Bond Income Devon Markets Securities Quantum
Series Series Series Series Series Series Series
------ ------ --------- ------ -------- ----------- -------
Purchases....................... $62,455,924 $11,704,989 $3,353,974 $2,895,822 $2,653,834 $2,171,781 $2,054,930
Sales........................... 38,967,059 6,106,708 549,942 173,373 66,941 165,967 93,048
</TABLE>
At June 30, 1997, the aggregate cost of securities and unrealized appreciation
(depreciation) for federal income tax purposes for each Series were as follows:
<TABLE>
<CAPTION>
Decatur Capital Cash International
Total Return Delchester Reserves Reserves Delcap Delaware Equity Value
Series Series Series Series Series Series Series Series
------------ ---------- ---------- ---------- ---------- ---------- ------------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Cost of Investments.. $221,515,882 $75,409,337 $28,462,309 $31,229,060 $79,404,482 $83,400,541 $154,420,181 $40,718,687
============ ========== ========== ========== ========== ========== ============= ==========
Aggregate unrealized
appreciation........ $47,086,708 $3,042,756 $259,853 $0000 $17,975,607 $14,788,188 $37,448,655 $7,976,200
Aggregate unrealized
depreciation........ (1,261,229) (607,596) (69,809) 0000 (2,450,558) (300,400) (1,585,000) (299,986)
------------ ---------- ---------- ---------- ---------- ---------- ------------- ----------
Net unrealized
appreciation........ $45,825,479 2,435,160 $190,044 $0000 $15,525,049 $14,487,788 $35,863,655 $7,676,214
============ ========== ========== ========== ========== ========== ============= ==========
Global Strategic Emerging Convertible
Trend Bond Income Devon Markets Securities Quantum
Series Series Series Series Series Series Series
------ ------ --------- ------ -------- ----------- -------
Cost of Investments.. $69,030,158 $15,428,732 $3,069,720 $3,265,591 $3,178,352 $2,025,425 $2,087,882
========== ========== ========= ========= ========= ========= =========
Aggregate unrealized
appreciation..... $10,681,832 $243,377 $30,035 $174,994 $229,193 $68,390 $137,720
Aggregate unrealized
depreciation..... (3,048,498) (196,334) (3,609) (20,228) (56,053) (17,850) (24,434)
---------- ---------- --------- --------- --------- --------- ---------
Net unrealized
appreciation..... $7,633,334 $47,043 $26,426 $154,776 $173,140 $50,540 $113,286
========== ========== ========= ========= ========= ========= =========
</TABLE>
For federal income tax purposes, the Fund had accumulated capital losses at
December 31, 1996 for each Series as follows:
Capital International
Delchester Reserves Equity
Series Series Series
---------- --------- ------------
Year of Expiration
2002.................................. $ 880,637 $1,328,634
2003.................................. 2,216,446
2004.................................. 292,208 $522,832
58
<PAGE>
Notes to Financial Statements (Continued)
4. Capital Stock
Transactions in capital stock shares were as follows:
<TABLE>
<CAPTION>
Decatur Capital Cash
Total Return Delchester Reserves Reserves Delcap
Series Series Series Series Series
--------------------- -------------------- ------------------ -------------------- -----------------
Six months Year Six months Year Six months Year Six months Year Six months Year
ended ended ended ended ended ended ended ended ended ended
6/30/97 12/31/96 6/30/97 12/31/96 6/30/97 12/31/96 6/30/97 12/31/96 6/30/97 12/31/96
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Shares sold............. 4,592,028 3,486,920 1,469,316 1,940,624 257,443 526,966 5,071,392 5,752,665 1,153,831 1,535,822
Shares issued upon
reinvestment of dividends
from net investment
income and distributions
of realized gains from
security transactions.. 1,125,687 899,233 368,073 621,618 91,738 182,839 75,158 107,376 296,551 347,595
--------- --------- --------- --------- ------- ------- --------- --------- --------- ---------
5,717,715 4,386,153 1,837,389 2,562,242 349,181 709,805 5,146,550 5,860,041 1,450,382 1,883,417
Shares repurchased...... (703,278) (1,307,916) (636,141)(1,513,036) (347,400) (658,016)(4,743,068)(4,846,004) (392,767) (694,724)
--------- --------- --------- --------- ------- ------- --------- --------- --------- ---------
Net increase (decrease) 5,014,437 3,078,237 1,201,248 1,049,206 1,781 51,789 403,482 1,014,037 1,057,615 1,188,693
========= ========= ========= ========= ========= ======== ========== ========= ========= =========
</TABLE>
<TABLE>
<CAPTION>
International Global
Delaware Equity Value Trend Bond
Series Series Series Series Series
--------------------- -------------------- ------------------ -------------------- -----------------
Six months Year Six months Year Six months Year Six months Year Six months 5/2/96*
ended ended ended ended ended ended ended ended ended to
6/30/97 12/31/96 6/30/97 12/31/96 6/30/97 12/31/96 6/30/97 12/31/96 6/30/97 12/31/96
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Shares sold............ 1,110,696 650,944 2,382,575 2,717,039 1,469,582 795,391 1,540,433 3,395,485 636,287 876,461
Shares issued upon
reinvestment of dividends
from net investment
income and distributions
of realized gains from
security transactions... 455,997 326,621 342,396 265,574 135,707 54,501 63,254 101,808 38,585 11,182
--------- ------- --------- --------- --------- ------- --------- --------- ------- -------
1,566,693 977,565 2,724,971 2,982,613 1,605,289 849,892 1,603,687 3,497,293 674,872 887,643
Shares repurchased...... (292,538) (524,572) (175,944) (503,590) (57,336)(172,909) (370,808)(1,086,091) (127,571) (23,197)
--------- ------- --------- --------- --------- ------- --------- --------- ------- -------
Net increase (decrease). 1,274,155 452,993 2,549,027 2,479,023 1,547,953 676,983 1,232,879 2,411,202 547,301 864,446
========= ======= ========= ========= ========= ======= ========= ========= ======= =======
</TABLE>
<TABLE>
<CAPTION>
Strategic Emerging Convertible
Income Devon Markets Securities Quantum
Series Series Series Series Series
---------- ---------- ---------- ---------- ----------
5/1/97* to 5/1/97* to 5/1/97* to 5/1/97* to 5/1/97* to
6/30/97 6/30/97 6/30/97 6/30/97 6/30/97
<S> <C> <C> <C> <C> <C>
Shares sold................................. 296,980 299,324 296,362 209,576 202,509
Shares issued upon reinvestment of dividends
from net investment income and distributions
of realized gains from security transactions -- -- -- -- --
---------- ---------- ---------- ---------- ----------
296,980 299,324 296,362 209,576 202,509
Shares repurchased.......................... (448) (20) (27) (3) (15)
---------- ---------- ---------- ---------- ----------
Net increase (decrease)................... 296,532 299,304 296,335 209,573 202,494
========== ========== ========== ========== ==========
_________________________
*Date of commencement of operations.
</TABLE>
59
<PAGE>
Notes to Financial Statements (Continued)
5. Foreign Exchange Contracts
The Fund will generally enter into forward foreign currency contracts as a way
of managing foreign exchange rate risk. A fund may enter into these contracts to
fix the U.S. dollar value of a security that it has agreed to buy or sell for
the period between the date the trade was entered into and the date the security
is delivered and paid for. A fund may also use these contracts to hedge the U.S.
dollar value of securities it already owns denominated in foreign currencies.
Forward foreign currency contracts are valued at the mean between the bid and
asked prices of the contracts and are marked-to-market daily. Interpolated
values are derived when the settlement date of the contract is an interim date
for which quotations are not available. The change in market value is recorded
by the Fund as an unrealized gain or loss. When the contract is closed, the Fund
records a realized gain or loss equal to the difference between the value of the
contract at the time it was opened and the value at the time it was closed.
The use of forward foreign currency contracts does not eliminate fluctuations in
the underlying prices of the Fund's securities, but it does establish a rate of
exchange that can be achieved in the future. Although forward foreign currency
contracts limit the risk of loss due to a decline in the value of the hedged
currency, they also limit any potential gain that might result should the value
of the currency increase. In addition, the Fund could be exposed to risks if the
counterparties to the contracts are unable to meet the terms of their contracts.
The following forward currency contracts were outstanding at June 30, 1997 for
the International Equity Series:
<TABLE>
<CAPTION>
Unrealized
CONTRACTS TO DELIVER IN EXCHANGE FOR CONTRACT VALUE SETTLEMENT DATE APPRECIATION
-------------------- --------------- -------------- --------------- ------------
<S> <C> <C> <C> <C>
11,800,593 Dutch Guilders $6,090,000 $6,024,035 7/31/97 $ 65,965
35,401,170 French Francs 5,194,281 5,148,774 7/31/97 45,507
6,157,061 New Zealand Dollars 4,273,000 4,184,438 7/31/97 88,562
------------
$200,034
============
Unrealized
CONTRACTS TO RECEIVE IN EXCHANGE FOR CONTRACT VALUE SETTLEMENT DATE DEPRECIATION
-------------------- --------------- -------------- --------------- ------------
1,024,321 British Pounds $1,708,978 $1,705,341 7/1/97 ($3,637)
97,722 British Pounds 154,697 154,366 7/2/97 (331)
78,150 British Pounds 130,339 130,104 7/3/97 (235)
------------
($4,203)
============
</TABLE>
<PAGE>
6. Concentrations of Credit Risk
Some countries in which the Funds may invest require governmental approval for
the repatriation of investment income, capital or the proceeds of sales of
securities by foreign investors. In addition, if there is a deterioration in a
country's balance of payments or for other reasons, a country may impose
temporary restrictions on foreign capital remittances abroad.
The securities exchanges of certain foreign markets are substantially smaller,
less liquid and more volatile than the major securities markets in the United
States. Consequently, acquisition and disposition of securities by the Fund may
be inhibited. In addition, a significant proportion of the aggregate market
value of equity securities listed on the major securities exchanges in emerging
markets are held by a smaller number of investors. This may limit the number of
shares available for acquisition or disposition of the Fund.
The Delchester Series, Strategic Income Series and Convertible Securities Series
may invest in high-yield fixed income securities which carry ratings of BB or
lower by S&P and/or Ba or lower by Moody's. Investments in these higher yielding
securities may be accompanied by a greater degree of credit risk than higher
rated securities. Additionally, lower rated securities may be more susceptible
to adverse economic and competitive industry conditions than investment grade
securities.
The Capital Reserves Series and the Delaware Series may invest in securities
whose value is derived from an underlying pool of mortgages or consumer loans.
Prepayment of these loans may shorten the stated maturity of the respective
obligation and may result in a loss of premium, if any has been paid.
Each Series may invest up to 10% 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. These securities, if any, have been
denoted in the Statement of Net Assets.
60
