<PAGE>
DELAWARE GROUP PREMIUM FUND
SUPPLEMENT TO PROSPECTUS
MARCH 1, 2000
DELCHESTER SERIES
Delaware Group Premium Fund (DGPF) has approved several changes to DELCHESTER
SERIES, the series of DGPF that focuses on high yield bonds. The most
significant change is a change in the Series' investment objective from a
primary focus on high current income to a primary focus on total return, which
the Adviser believes is a more appropriate investment objective for a variable
insurance product given the typically long-term orientation of investors. There
are also a number of related changes to the Series' investment policies. The
Adviser believes that all of these changes will improve the Series' ability to
seek higher overall performance in varying market conditions. The effect of
these changes is to provide somewhat more latitude in the kinds of high yield
securities in which the Series may invest, and certain of these kinds of
securities present additional risks, which are summarized in the table below.
The changes to the Series' investment objective, policies and risks, as well as
a name change and a change in the frequency of dividend payments, are described
below. These changes will become effective on May 1, 2000. In order to minimize
the effect on the Series, however, the restructuring of the Series' portfolio
will take place over an extended time period from three to six months after May
15, 2000.
<TABLE>
<CAPTION>
Name Change
<S> <C> <C> <C>
- --------------------------------------------------------------- --------------------------------------------------------------------
Old Name New Name
- --------------------------------------------------------------- --------------------------------------------------------------------
Delchester Series High Yield Series
- --------------------------------------------------------------- --------------------------------------------------------------------
Investment Objective
- --------------------------------------------------------------- --------------------------------------------------------------------
Old Objective New Objective
- --------------------------------------------------------------- --------------------------------------------------------------------
The Series seeks as high a current income as possible. The Series seeks total return and, as a secondary objective, high
current income.
- --------------------------------------------------------------- --------------------------------------------------------------------
<PAGE>
Investment Policies
- ----------------------------- --------------------- ------------------------------------ -------------------------------------------
Investment Policy Old Policy New Policy Change in Risk
- ----------------------------- --------------------- ------------------------------------ -------------------------------------------
Credit Quality refers to Typically invests Typically invests in bonds rated All bonds rated below investment grade
ratings given by agencies in bonds rated BB BB or B or, if unrated, of carry increased risk that the issuer will
such as S&P or Moody's that or B or, if equivalent quality. Will not be unable to make payments on interest or
indicate the risk that the unrated, of invest more than 15% of total principal, but bonds rated CCC have a
issuer of a bond might fail equivalent quality. assets in bonds which, at the time significantly higher risk of default than
to make payments on Can also invest in of purchase, are rated CCC or, if bonds rated BB or B.
principal or interest. bonds rated lower unrated, of equivalent quality.
Bonds rated BB, B or CCC than BB or B. Will not invest in bonds which, at
carry a higher risk of the time of purchase, are rated
default than investment below CCC or, if unrated, of
grade bonds. equivalent quality.
- ----------------------------- --------------------- ------------------------------------ -------------------------------------------
Foreign Government or Does not typically May invest up to 15% of its total Foreign securities may be adversely
Corporate Bonds are invest in assets in securities of issuers effected by political instability, foreign
securities issued by securities of domiciled in foreign countries. economic conditions or inadequate
foreign governments, foreign issuers. When investing in these foreign regulatory and accounting standards.
foreign corporations or securities, the Series may not These risks are significantly higher for
supranational entities such invest more than two-thirds of emerging market securities. Non-dollar
as the World Bank. that 15% amount (that is, 10% of denominated securities also carry the risk
total assets) in any combination of of adverse changes in foreign currency
non-dollar denominated securities exchange rates.
and emerging market securities.
- ----------------------------- --------------------- ------------------------------------ -------------------------------------------
Illiquid Securities are May invest up to May invest up to 15% of net The Series will be able to invest in more
securities that do not have 10% of net assets assets in illiquid securities, not illiquid securities, both because of the
a ready market and cannot in illiquid including Rule 144A securities increase from 10% to 15% and because it
be easily sold within seven securities, determined to be liquid (that is, will no longer automatically treat Rule
days at approximately the including Rule 144A those that have a secondary market 144A securities as illiquid. Illiquid
price that the Series has securities. among large institutional securities could have an adverse effect on
valued them. investors). the Series' ability to dispose of
portfolio securities to meet its liquidity
needs or in response to specific economic
events such as the deterioration of the
creditworthiness of an issuer.
- ----------------------------- --------------------- ------------------------------------ -------------------------------------------
Dividend Frequency
- ---------------------------------------------------------------- -------------------------------------------------------------------
Old Frequency New Frequency
- ---------------------------------------------------------------- -------------------------------------------------------------------
Declared daily and paid monthly. Declared and paid annually.
- ---------------------------------------------------------------- -------------------------------------------------------------------
</TABLE>
<PAGE>
DELAWARE BALANCED SERIES
The last paragraph under "Our investment strategies" is deleted.
U.S. GROWTH SERIES
On March 1, 2000, management of Lynch & Mayer, Inc. and Delaware Investments
integrated Lynch & Mayer's investment personnel into Delaware's. Frank Houghton
and Rufus Winton, formerly of Lynch & Mayer, have joined Delaware's growth team
and continue to act as the Series' portfolio managers with day-to-day investment
responsibility for the Series. As a result of the integration, Lynch & Mayer no
longer serves as sub-adviser to the Series.
ALL SERIES
On December 15, 1999, the Series were part of a reorganization from a Maryland
corporation to a Delaware business trust, as approved by shareholders of the
company at the most recent Joint Annual/Special Meeting of Shareholders. The
reorganization does not affect the names of the Series or their investment
operations; however, the name of the company of which the Series are a part has
changed from Delaware Group Premium Fund, Inc. to Delaware Group Premium Fund.
This Supplement also updates the Series' performance information in the Profile
section in the beginning of the prospectus, as well as the data in the Financial
Highlights section of the prospectus, as follows:
From January 1, 1999 to September 30, 1999 the total return for each
Series was as follows. The performance presented does not reflect any
separate account fees, which would reduce the return. Performance for
each Series reflects applicable voluntary expense caps and would be
lower without the voluntary caps.
Capital Reserves Series 0.16%
Cash Reserve Series 3.47%
Convertible Securities Series -1.60%
Delaware Balanced Series -9.24%
DelCap Series 11.24%
Delchester Series -2.68%
Devon Series -12.18%
Emerging Markets Series 20.56%
Global Bond Series -1.44%
Growth and Income Series -4.42%
International Equity Series 6.44%
REIT Series -2.61%
Small Cap Value Series -6.22%
Social Awareness Series -1.65%
Strategic Income Series -3.09%
Trend Series 27.05%
<PAGE>
The Financial Highlights for each share for the six-month period ended June 30,
1999 (unaudited) were as follows:(1)
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
- ------------ -------- --------- --------- --------- ------------- ---------
Net Net Net Dividends Distributions Net
asset investment realized from from asset
value, income and net net value,
beginning unrealized investment realized end of
of gain income gain on period
period (loss) investments
on
investments
and
foreign
currencies
- ------------ -------- --------- --------- --------- ------------ ---------
Capital
Reserves
Series $9.880 0.270 (0.330) (0.270) -- $9.550
- ------------ -------- --------- --------- --------- ------------ ---------
Cash
Reserve
Series $10.000 0.224 -- (0.224) -- $10.000
- ------------ -------- --------- --------- --------- ------------ ---------
Convertible
Securities
Series $11.160 0.231 0.019 (0.410) -- $11.000
- ------------ -------- --------- --------- --------- ------------ ---------
Delaware
Balanced
Series $20.040 0.182 (0.272) (0.300) (0.770) $18.880
- ------------ -------- --------- --------- --------- ------------ ---------
DelCap
Series $18.550 (0.010)(2) 2.270 -- (1.000) $19.810
- ------------ -------- --------- --------- --------- ------------ ---------
Delchester
Series $8.460 0.386 (0.335) (0.391) (0.050) $8.070
- ------------ -------- --------- --------- --------- ------------ ---------
Devon
Series $15.440 0.043 (0.079) (0.090) (0.174) $15.140
- ------------ -------- --------- --------- --------- ------------ ---------
Emerging
Markets
Series $5.810 0.066(2) 1.427 (0.133) -- $7.170
- ------------ -------- --------- --------- --------- ------------ ---------
Global
Bond
Series $10.680 0.292(2) (0.466) (0.334) (0.062) $10.110
- ------------ -------- --------- --------- --------- ------------ ---------
Growth and
Income
Series $19.420 0.167 0.834 (0.161) (1.480) $18.780
- ------------ -------- --------- --------- --------- ------------ ---------
Inter-
national
Equity
Series $16.480 0.235(2) 1.097 (0.356) (0.026) $17.430
- ------------ -------- --------- --------- --------- ------------ ---------
REIT Series $9.100 0.152 0.118 -- -- $9.370
- ------------ -------- --------- --------- --------- ------------ ---------
Small Cap
Value
Series $16.450 0.083 0.482 (0.195) (0.080) $16.740
- ------------ -------- --------- --------- --------- ------------ ---------
Social
Awareness
Series $14.550 0.014 0.656 (0.060) -- $15.160
- ------------ -------- --------- --------- --------- ------------ ---------
Strategic
Income
Series $10.600 0.393(2) (0.613) (0.610) -- $9.770
- ------------ -------- --------- --------- --------- ------------ ---------
Trend
Series $19.760 (0.023) 4.165 (0.002) -- $23.900
- ------------ -------- --------- --------- --------- ------------ ---------
</TABLE>
<PAGE>
[RESTUBBED]
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
- ------------ ---------- ----------- ---------- ---------- ---------- -------- --------
Total Net Ratio of Ratio of Ratio of Ratio Portfolio
Return Assets, expenses expenses net of turnover
End of to to investment net
Period average average income investment
(000 net net to income
omitted) assets assets average to
prior to net average
expense assets net
limitation assets
and prior
expenses to
paid expense
indirectly limitation
and
expenses
paid
indirectly
- ------------ ---------- ----------- ---------- ---------- ---------- -------- --------
Capital
Reserves
Series (0.63%) $40,351 0.79% -- 5.58% -- 128%
- ------------ ---------- ----------- ---------- ---------- ---------- -------- --------
Cash
Reserve
Series 2.26% $51,437 0.53% -- 4.51% -- --
- ------------ ---------- ----------- ---------- ---------- ---------- -------- --------
Convertible
Securities
Series 2.41% $9,043 0.82% 0.84% 4.40% 4.38% 44%
- ------------ ---------- ----------- ---------- ---------- ---------- -------- --------
Delaware
Balanced
Series (0.14%) $207,606 0.71% -- 2.08% -- 74%
- ------------ ---------- ----------- ---------- ---------- ---------- -------- --------
DelCap
Series 13.06% $147,606 0.79% -- (0.17%) -- 62%
- ------------ ---------- ----------- ---------- ---------- ---------- -------- --------
Delchester
Series 0.57% $121,144 0.70% -- 9.34% -- 92%
- ------------ ---------- ----------- ---------- ---------- ---------- -------- --------
Devon
Series (0.10%) $93,927 0.76% 0.77% 0.95% 0.94% 43%
- ------------ ---------- ----------- ---------- ---------- ---------- -------- --------
Emerging
Markets
Series 26.56% $8,956 1.49% 1.64% 2.19% 2.04% 19%
- ------------ ---------- ----------- ---------- ---------- ---------- -------- --------
Global
Bond
Series (1.64%) $22,190 0.84% -- 5.64% -- 106%
- ------------ ---------- ----------- ---------- ---------- ---------- -------- --------
Growth and
Income
Series 5.79% $604,114 0.71% 0.72% 1.84% 1.83% 120%
- ------------ ---------- ----------- ---------- ---------- ---------- -------- --------
Inter-
national
Equity
Series 8.30% $255,757 0.89% 0.90% 2.83% 2.82% 0%
- ------------ ---------- ----------- ---------- ---------- ---------- -------- --------
REIT Series 5.25% $9,094 0.85% 1.00% 5.02% 4.87% 50%
- ------------ ---------- ----------- ---------- ---------- ---------- -------- --------
Small Cap
Value
Series 3.69% $103,101 0.85% -- 1.04% -- 49%
- ------------ ---------- ----------- ---------- ---------- ---------- -------- --------
Social
Awareness
Series 4.63% $33,588 0.84% 0.89% 0.30% 0.25% 28%
- ------------ ---------- ----------- ---------- ---------- ---------- -------- --------
Strategic
Income
Series (2.19%) $21,938 0.80% -- 7.81% -- 115%
- ------------ ---------- ----------- ---------- ---------- ---------- -------- --------
Trend
Series 20.97% $219,907 0.83% 0.84% (0.27%) (0.28%) 104%
- ------------ ---------- ----------- ---------- ---------- ---------- -------- --------
</TABLE>
(1) Ratios have been annualized and total return has not been annualized.
(2) Per share information was based on the average shares outstanding method.
<PAGE>
DELAWARE GROUP PREMIUM FUND
SUPPLEMENT TO PROSPECTUS
MARCH 1, 2000
DELCHESTER SERIES
Delaware Group Premium Fund (DGPF) has approved several changes to DELCHESTER
SERIES, the series of DGPF that focuses on high yield bonds. The most
significant change is a change in the Series' investment objective from a
primary focus on high current income to a primary focus on total return, which
the Adviser believes is a more appropriate investment objective for a variable
insurance product given the typically long-term orientation of investors. There
are also a number of related changes to the Series' investment policies. The
Adviser believes that all of these changes will improve the Series' ability to
seek higher overall performance in varying market conditions. The effect of
these changes is to provide somewhat more latitude in the kinds of high yield
securities in which the Series may invest, and certain of these kinds of
securities present additional risks, which are summarized in the table below.
The changes to the Series' investment objective, policies and risks, as well as
a name change and a change in the frequency of dividend payments, are described
below. These changes will become effective on May 1, 2000. In order to minimize
the effect on the Series, however, the restructuring of the Series' portfolio
will take place over an extended time period from three to six months after May
15, 2000.
<TABLE>
<CAPTION>
Name Change
<S> <C> <C> <C>
- --------------------------------------------------------------- --------------------------------------------------------------------
Old Name New Name
- --------------------------------------------------------------- --------------------------------------------------------------------
Delchester Series High Yield Series
- --------------------------------------------------------------- --------------------------------------------------------------------
Investment Objective
- --------------------------------------------------------------- --------------------------------------------------------------------
Old Objective New Objective
- --------------------------------------------------------------- --------------------------------------------------------------------
The Series seeks as high a current income as possible. The Series seeks total return and, as a secondary objective, high
current income.
- --------------------------------------------------------------- --------------------------------------------------------------------
<PAGE>
Investment Policies
- ----------------------------- --------------------- ------------------------------------ -------------------------------------------
Investment Policy Old Policy New Policy Change in Risk
- ----------------------------- --------------------- ------------------------------------ -------------------------------------------
Credit Quality refers to Typically invests Typically invests in bonds rated All bonds rated below investment grade
ratings given by agencies in bonds rated BB BB or B or, if unrated, of carry increased risk that the issuer will
such as S&P or Moody's that or B or, if equivalent quality. Will not be unable to make payments on interest or
indicate the risk that the unrated, of invest more than 15% of total principal, but bonds rated CCC have a
issuer of a bond might fail equivalent quality. assets in bonds which, at the time significantly higher risk of default than
to make payments on Can also invest in of purchase, are rated CCC or, if bonds rated BB or B.
principal or interest. bonds rated lower unrated, of equivalent quality.
Bonds rated BB, B or CCC than BB or B. Will not invest in bonds which, at
carry a higher risk of the time of purchase, are rated
default than investment below CCC or, if unrated, of
grade bonds. equivalent quality.
- ----------------------------- --------------------- ------------------------------------ -------------------------------------------
Foreign Government or Does not typically May invest up to 15% of its total Foreign securities may be adversely
Corporate Bonds are invest in assets in securities of issuers effected by political instability, foreign
securities issued by securities of domiciled in foreign countries. economic conditions or inadequate
foreign governments, foreign issuers. When investing in these foreign regulatory and accounting standards.
foreign corporations or securities, the Series may not These risks are significantly higher for
supranational entities such invest more than two-thirds of emerging market securities. Non-dollar
as the World Bank. that 15% amount (that is, 10% of denominated securities also carry the risk
total assets) in any combination of of adverse changes in foreign currency
non-dollar denominated securities exchange rates.
and emerging market securities.
- ----------------------------- --------------------- ------------------------------------ -------------------------------------------
Illiquid Securities are May invest up to May invest up to 15% of net The Series will be able to invest in more
securities that do not have 10% of net assets assets in illiquid securities, not illiquid securities, both because of the
a ready market and cannot in illiquid including Rule 144A securities increase from 10% to 15% and because it
be easily sold within seven securities, determined to be liquid (that is, will no longer automatically treat Rule
days at approximately the including Rule 144A those that have a secondary market 144A securities as illiquid. Illiquid
price that the Series has securities. among large institutional securities could have an adverse effect on
valued them. investors). the Series' ability to dispose of
portfolio securities to meet its liquidity
needs or in response to specific economic
events such as the deterioration of the
creditworthiness of an issuer.
- ----------------------------- --------------------- ------------------------------------ -------------------------------------------
Dividend Frequency
- ---------------------------------------------------------------- -------------------------------------------------------------------
Old Frequency New Frequency
- ---------------------------------------------------------------- -------------------------------------------------------------------
Declared daily and paid monthly. Declared and paid annually.
- ---------------------------------------------------------------- -------------------------------------------------------------------
</TABLE>
<PAGE>
DELAWARE GROUP PREMIUM FUND
SUPPLEMENT TO PROSPECTUS
MARCH 1, 2000
DELCHESTER SERIES
Delaware Group Premium Fund (DGPF) has approved several changes to DELCHESTER
SERIES, the series of DGPF that focuses on high yield bonds. The most
significant change is a change in the Series' investment objective from a
primary focus on high current income to a primary focus on total return, which
the Adviser believes is a more appropriate investment objective for a variable
insurance product given the typically long-term orientation of investors. There
are also number of related changes to the Series' investment policies. The
Adviser believes that all of these changes will improve the Series' ability to
seek higher overall performance in varying market conditions. The effect of
these changes is to provide somewhat more latitude in the kinds of high yield
securities in which the Series may invest, and certain of these kinds of
securities present additional risks, which are summarized in the table below.
The changes to the Series' investment objective, policies and risks, as well as
a name change and a change in the frequency of dividend payments, are described
below. These changes will become effective on May 1, 2000. In order to minimize
the effect on the Series, however, the restructuring of the Series' portfolio
will take place over an extended time period from three to six months after May
15, 2000.
<TABLE>
<CAPTION>
Name Change
<S> <C> <C> <C>
- --------------------------------------------------------------- --------------------------------------------------------------------
Old Name New Name
- --------------------------------------------------------------- --------------------------------------------------------------------
Delchester Series High Yield Series
- --------------------------------------------------------------- --------------------------------------------------------------------
Investment Objective
- --------------------------------------------------------------- --------------------------------------------------------------------
Old Objective New Objective
- --------------------------------------------------------------- --------------------------------------------------------------------
The Series seeks as high a current income as possible. The Series seeks total return and, as a secondary objective, high
current income.
- --------------------------------------------------------------- --------------------------------------------------------------------
<PAGE>
Investment Policies
- ----------------------------- --------------------- ------------------------------------ -------------------------------------------
Investment Policy Old Policy New Policy Change in Risk
- ----------------------------- --------------------- ------------------------------------ -------------------------------------------
Credit Quality refers to Typically invests Typically invests in bonds rated All bonds rated below investment grade
ratings given by agencies in bonds rated BB BB or B or, if unrated, of carry increased risk that the issuer will
such as S&P or Moody's that or B or, if equivalent quality. Will not be unable to make payments on interest or
indicate the risk that the unrated, of invest more than 15% of total principal, but bonds rated CCC have a
issuer of a bond might fail equivalent quality. assets in bonds which, at the time significantly higher risk of default than
to make payments on Can also invest in of purchase, are rated CCC or, if bonds rated BB or B.
principal or interest. bonds rated lower unrated, of equivalent quality.
Bonds rated BB, B or CCC than BB or B. Will not invest in bonds which, at
carry a higher risk of the time of purchase, are rated
default than investment below CCC or, if unrated, of
grade bonds. equivalent quality.
- ----------------------------- --------------------- ------------------------------------ -------------------------------------------
Foreign Government or Does not typically May invest up to 15% of its total Foreign securities may be adversely
Corporate Bonds are invest in assets in securities of issuers effected by political instability, foreign
securities issued by securities of domiciled in foreign countries. economic conditions or inadequate
foreign governments, foreign issuers. When investing in these foreign regulatory and accounting standards.
foreign corporations or securities, the Series may not These risks are significantly higher for
supranational entities such invest more than two-thirds of emerging market securities. Non-dollar
as the World Bank. that 15% amount (that is, 10% of denominated securities also carry the risk
total assets) in any combination of of adverse changes in foreign currency
non-dollar denominated securities exchange rates.
and emerging market securities.
- ----------------------------- --------------------- ------------------------------------ -------------------------------------------
Illiquid Securities are May invest up to May invest up to 15% of net The Series will be able to invest in more
securities that do not have 10% of net assets assets in illiquid securities, not illiquid securities, both because of the
a ready market and cannot in illiquid including Rule 144A securities increase from 10% to 15% and because it
be easily sold within seven securities, determined to be liquid (that is, will no longer automatically treat Rule
days at approximately the including Rule 144A those that have a secondary market 144A securities as illiquid. Illiquid
price that the Series has securities. among large institutional securities could have an adverse effect on
valued them. investors). the Series' ability to dispose of
portfolio securities to meet its liquidity
needs or in response to specific economic
events such as the deterioration of the
creditworthiness of an issuer.
- ----------------------------- --------------------- ------------------------------------ -------------------------------------------
Dividend Frequency
- ---------------------------------------------------------------- -------------------------------------------------------------------
Old Frequency New Frequency
- ---------------------------------------------------------------- -------------------------------------------------------------------
Declared daily and paid monthly. Declared and paid annually.
- ---------------------------------------------------------------- -------------------------------------------------------------------
</TABLE>
<PAGE>
DELAWARE BALANCED SERIES
The last paragraph under "Our investment strategies" is deleted.
U.S. GROWTH SERIES
On March 1, 2000, management of Lynch & Mayer, Inc. and Delaware Investments
integrated Lynch & Mayer's investment personnel into Delaware's. Frank Houghton
and Rufus Winton, formerly of Lynch & Mayer, have joined Delaware's growth team
and continue to act as the Series' portfolio managers with day-to-day investment
responsibility for the Series. As a result of the integration, Lynch & Mayer no
longer serves as sub-adviser to the Series.
ALL SERIES
On December 15, 1999, the Series were part of a reorganization from a Maryland
corporation to a Delaware business trust, as approved by shareholders of the
company at the most recent Joint Annual/Special Meeting of Shareholders. The
reorganization does not affect the names of the Series or their investment
operations; however, the name of the company of which the Series are a part has
changed from Delaware Group Premium Fund, Inc. to Delaware Group Premium Fund.
This Supplement also updates the Series' performance information in the Profile
section in the beginning of the prospectus, as well as the data in the Financial
Highlights section of the prospectus, as follows:
From January 1, 1999 to September 30, 1999 the total return for each
Series was as follows. The performance presented does not reflect any
separate account fees, which would reduce the return. Performance for
each Series reflects applicable voluntary expense caps and would be
lower without the voluntary caps.
Capital Reserves Series 0.16%
Cash Reserve Series 3.47%
Delaware Balanced Series -9.24%
DelCap Series 11.24%
Delchester Series -2.68%
Devon Series -12.18%
Emerging Markets Series 20.56%
Growth and Income Series -4.42%
International Equity Series 6.44%
REIT Series -2.61%
Small Cap Value Series -6.22%
Social Awareness Series -1.65%
Strategic Income Series -3.09%
Trend Series 27.05%
<PAGE>
The Financial Highlights for each share for the six-month period ended June 30,
1999 (unaudited) were as follows:(1)
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
- ------------ -------- --------- --------- --------- ------------- ---------
Net Net Net Dividends Distributions Net
asset investment realized from from asset
value, income and net net value,
beginning unrealized investment realized end of
of gain income gain on period
period (loss) investments
on
investments
and
foreign
currencies
- ------------ -------- --------- --------- --------- ------------ ---------
Capital
Reserves
Series $9.880 0.270 (0.330) (0.270) -- $9.550
- ------------ -------- --------- --------- --------- ------------ ---------
Cash
Reserve
Series $10.000 0.224 -- (0.224) -- $10.000
- ------------ -------- --------- --------- --------- ------------ ---------
Delaware
Balanced
Series $20.040 0.182 (0.272) (0.300) (0.770) $18.880
- ------------ -------- --------- --------- --------- ------------ ---------
DelCap
Series $18.550 (0.010)(2) 2.270 -- (1.000) $19.810
- ------------ -------- --------- --------- --------- ------------ ---------
Delchester
Series $8.460 0.386 (0.335) (0.391) (0.050) $8.070
- ------------ -------- --------- --------- --------- ------------ ---------
Devon
Series $15.440 0.043 (0.079) (0.090) (0.174) $15.140
- ------------ -------- --------- --------- --------- ------------ ---------
Emerging
Markets
Series $5.810 0.066(2) 1.427 (0.133) -- $7.170
- ------------ -------- --------- --------- --------- ------------ ---------
Growth and
Income
Series $19.420 0.167 0.834 (0.161) (1.480) $18.780
- ------------ -------- --------- --------- --------- ------------ ---------
Inter-
national
Equity
Series $16.480 0.235(2) 1.097 (0.356) (0.026) $17.430
- ------------ -------- --------- --------- --------- ------------ ---------
REIT Series $9.100 0.152 0.118 -- -- $9.370
- ------------ -------- --------- --------- --------- ------------ ---------
Small Cap
Value
Series $16.450 0.083 0.482 (0.195) (0.080) $16.740
- ------------ -------- --------- --------- --------- ------------ ---------
Social
Awareness
Series $14.550 0.014 0.656 (0.060) -- $15.160
- ------------ -------- --------- --------- --------- ------------ ---------
Strategic
Income
Series $10.600 0.393(2) (0.613) (0.610) -- $9.770
- ------------ -------- --------- --------- --------- ------------ ---------
Trend
Series $19.760 (0.023) 4.165 (0.002) -- $23.900
- ------------ -------- --------- --------- --------- ------------ ---------
</TABLE>
<PAGE>
[RESTUBBED]
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
- ------------ ---------- ----------- ---------- ---------- ---------- -------- --------
Total Net Ratio of Ratio of Ratio of Ratio Portfolio
Return Assets, expenses expenses net of turnover
End of to to investment net
Period average average income investment
(000 net net to income
omitted) assets assets average to
prior to net average
expense assets net
limitation assets
and prior
expenses to
paid expense
indirectly limitation
and
expenses
paid
indirectly
- ------------ ---------- ----------- ---------- ---------- ---------- -------- --------
Capital
Reserves
Series (0.63%) $40,351 0.79% -- 5.58% -- 128%
- ------------ ---------- ----------- ---------- ---------- ---------- -------- --------
Cash
Reserve
Series 2.26% $51,437 0.53% -- 4.51% -- --
- ------------ ---------- ----------- ---------- ---------- ---------- -------- --------
Delaware
Balanced
Series (0.14%) $207,606 0.71% -- 2.08% -- 74%
- ------------ ---------- ----------- ---------- ---------- ---------- -------- --------
DelCap
Series 13.06% $147,606 0.79% -- (0.17%) -- 62%
- ------------ ---------- ----------- ---------- ---------- ---------- -------- --------
Delchester
Series 0.57% $121,144 0.70% -- 9.34% -- 92%
- ------------ ---------- ----------- ---------- ---------- ---------- -------- --------
Devon
Series (0.10%) $93,927 0.76% 0.77% 0.95% 0.94% 43%
- ------------ ---------- ----------- ---------- ---------- ---------- -------- --------
Emerging
Markets
Series 26.56% $8,956 1.49% 1.64% 2.19% 2.04% 19%
- ------------ ---------- ----------- ---------- ---------- ---------- -------- --------
Growth and
Income
Series 5.79% $604,114 0.71% 0.72% 1.84% 1.83% 120%
- ------------ ---------- ----------- ---------- ---------- ---------- -------- --------
Inter-
national
Equity
Series 8.30% $255,757 0.89% 0.90% 2.83% 2.82% 0%
- ------------ ---------- ----------- ---------- ---------- ---------- -------- --------
REIT Series 5.25% $9,094 0.85% 1.00% 5.02% 4.87% 50%
- ------------ ---------- ----------- ---------- ---------- ---------- -------- --------
Small Cap
Value
Series 3.69% $103,101 0.85% -- 1.04% -- 49%
- ------------ ---------- ----------- ---------- ---------- ---------- -------- --------
Social
Awareness
Series 4.63% $33,588 0.84% 0.89% 0.30% 0.25% 28%
- ------------ ---------- ----------- ---------- ---------- ---------- -------- --------
Strategic
Income
Series (2.19%) $21,938 0.80% -- 7.81% -- 115%
- ------------ ---------- ----------- ---------- ---------- ---------- -------- --------
Trend
Series 20.97% $219,907 0.83% 0.84% (0.27%) (0.28%) 104%
- ------------ ---------- ----------- ---------- ---------- ---------- -------- --------
</TABLE>
(1) Ratios have been annualized and total return has not been annualized.
(2) Per share information was based on the average shares outstanding method.
