<PAGE>
December 15, 1999
Delchester Series
Devon Series
Emerging Markets Series
Growth and Income Series
International Equity Series
REIT Series
Small Cap Value Series
Social Awareness Series
Trend Series
Supplement to the Prospectus dated May 1, 1999
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 Series' company 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,
except Delchester Series, reflects applicable voluntary expense caps and
would be lower without the voluntary caps.
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%
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>
Growth
Emerging and International
Delchester Devon Markets Income Equity REIT
Series Series Series Series Series Series
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $8.460 $15.440 $5.810 $19.420 $16.480 $9.100
Income (loss) from investment operations:
Net investment income 0.386 0.043 0.0662 0.167 0.235(2) 0.152
Net realized and unrealized gain (loss) on
investments and foreign currencies (0.335) (0.079) 1.427 0.834 1.097 0.118
-------- ------- ------ -------- -------- ------
Total from investment operations 0.051 (0.036) 1.493 1.001 1.332 0.270
-------- ------- ------ -------- -------- ------
Less dividends and distributions:
Dividends from net investment income (0.391) (0.090) (0.133) (0.161) (0.356) --
Distributions from net realized gain on
investments (0.050) (0.174) -- (1.480) (0.026) --
-------- ------- ------ -------- -------- ------
Total dividends and distributions (0.441) (0.264) (0.133) (1.641) (0.382) --
-------- ------- ------ -------- -------- ------
Net asset value, end of period $8.070 $15.140 $7.170 $18.780 $17.430 $9.370
======== ======= ====== ======== ======== ======
Total return 0.57% (0.10%) 26.56% 5.79% 8.30% 5.25%
Ratios and supplemental data:
Net assets, end of period (000 omitted) $121,144 $93,927 $8,956 $604,114 $255,757 $9,094
Ratio of expenses to average net assets 0.70% 0.76% 1.49% 0.71% 0.89% 0.85%
Ratio of expenses to average net assets
prior to expense limitation and
expenses paid indirectly N/A 0.77% 1.64% 0.72% 0.90% 1.00%
Ratio of net investment income to
average net assets 9.34% 0.95% 2.19% 1.84% 2.83% 5.02%
Ratio of net investment income to
average net assets prior to expense
limitation and expenses paid indirectly N/A 0.94% 2.04% 1.83% 2.82% 4.87%
Portfolio turnover 92% 43% 19% 120% 0% 50%
</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>
[TABLE RESTUBED FOR ABOVE]
<TABLE>
<CAPTION>
Small
Cap Social
Value Awareness Trend
Series Series Series
<S> <C> <C> <C>
Net asset value, beginning of period $16.450 $14.550 $19.760
Income (loss) from investment operations:
Net investment income 0.083 0.014 (0.023)
Net realized and unrealized gain (loss) on
investments and foreign currencies 0.482 0.656 4.165
-------- ------- --------
Total from investment operations 0.565 0.670 4.142
-------- ------- --------
Less dividends and distributions:
Dividends from net investment income (0.195) (0.060) (0.002)
Distributions from net realized gain on
investments (0.080) -- --
-------- ------- --------
Total dividends and distributions (0.275) (0.060) (0.002)
-------- ------- --------
Net asset value, end of period $16.740 $15.160 $23.900
======== ======= ========
Total return 3.69% 4.63% 20.97%
Ratios and supplemental data:
Net assets, end of period (000 omitted) $103,101 $33,588 $219,907
Ratio of expenses to average net assets 0.85% 0.84% 0.83%
Ratio of expenses to average net assets
prior to expense limitation and
expenses paid indirectly N/A 0.89% 0.84%
Ratio of net investment income to
average net assets 1.04% 0.30% (0.27%)
Ratio of net investment income to
average net assets prior to expense
limitation and expenses paid indirectly N/A 0.25% (0.28%)
Portfolio turnover 49% 28% 104%
</TABLE>
<PAGE>
December 15, 1999
Delchester Series
Devon Series
Emerging Markets Series
REIT Series
Small Cap Value Series
Trend Series
Supplement to the Prospectus dated May 1, 1999
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 Series' company 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,
except Delchester Series, reflects applicable voluntary expense caps and
would be lower without the voluntary caps.
Delchester Series -2.68%
Devon Series -12.18%
Emerging Markets Series 20.56%
REIT Series -2.61%
Small Cap Value Series -6.22%
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>
Emerging Small Cap
Delchester Devon Markets REIT Value Trend
Series Series Series Series Series Series
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $8.460 $15.440 $5.810 $9.100 $16.450 $19.760
Income (loss) from investment operations:
Net investment income 0.386 0.043 0.066(2) 0.152 0.083 (0.023)
Net realized and unrealized gain (loss) on
investments and foreign currencies (0.335) (0.079) 1.427 0.118 0.482 4.165
-------- ------- ------ ------ -------- --------
Total from investment operations 0.051 (0.036) 1.493 0.270 0.565 4.142
-------- ------- ------ ------ -------- --------
Less dividends and distributions:
Dividends from net investment income (0.391) (0.090) (0.133) -- (0.195) (0.002)
Distributions from net realized gain
on investments (0.050) (0.174) -- -- (0.080) --
-------- ------- ------ ------ -------- --------
Total dividends and distributions (0.441) (0.264) (0.133) -- (0.275) (0.002)
-------- ------- ------ ------ -------- --------
Net asset value, end of period $8.070 $15.140 $7.170 $9.370 $16.740 $23.900
======== ======= ====== ====== ======== ========
Total return 0.57% (0.10%) 26.56% 5.25% 3.69% 20.97%
Ratios and supplemental data:
Net assets, end of period (000 omitted) $121,144 $93,927 $8,956 $9,094 $103,101 $219,907
Ratio of expenses to average net assets 0.70% 0.76% 1.49% 0.85% 0.85% 0.83%
Ratio of expenses to average net assets prior to
expense limitation and expenses paid indirectly N/A 0.77% 1.64% 1.00% N/A 0.84%
Ratio of net investment income to average
net assets 9.34% 0.95% 2.19% 5.02% 1.04% (0.27%)
Ratio of net investment income to average
net assets prior to expense limitation and
expenses paid indirectly N/A 0.94% 2.04% 4.87% N/A (0.28%)
Portfolio turnover 92% 43% 19% 50% 49% 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>
December 15, 1999
Delchester Series
Devon Series
International Equity Series
REIT Series
Small Cap Value Series
Supplement to the Prospectus dated May 1, 1999
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 Series' company 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,
except Delchester Series, reflects applicable voluntary expense caps and
would be lower without the voluntary caps.
Delchester Series -2.68%
Devon Series -12.18%
International Equity Series 6.44%
REIT Series -2.61%
Small Cap Value Series -6.22%
<PAGE>
The Financial highlights for each share for the six-month period ended June 30,
1999 (unaudited) were as follows:(1)
<TABLE>
<CAPTION>
International Small Cap
Delchester Devon Equity REIT Value
Series Series Series Series Series
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $8.460 $15.440 $16.480 $9.100 $16.450
Income (loss) from investment operations:
Net investment income 0.386 0.043 0.235(2) 0.152 0.083
Net realized and unrealized gain (loss) on investments
and foreign currencies (0.335) (0.079) 1.097 0.118 0.482
-------- ------- -------- ------ --------
Total from investment operations 0.051 (0.036) 1.332 0.270 0.565
-------- ------- -------- ------ --------
Less dividends and distributions:
Dividends from net investment income (0.391) (0.090) (0.356) -- (0.195)
Distributions from net realized gain on investments (0.050) (0.174) (0.026) -- (0.080)
-------- ------- -------- ------ --------
Total dividends and distributions (0.441) (0.264) (0.382) -- (0.275)
-------- ------- -------- ------ --------
Net asset value, end of period $8.070 $15.140 $17.430 $9.370 $16.740
======== ======= ======== ====== ========
Total return 0.57% (0.10%) 8.30% 5.25% 3.69%
Ratios and supplemental data:
Net assets, end of period (000 omitted) $121,144 $93,927 $255,757 $9,094 $103,101
Ratio of expenses to average net assets 0.70% 0.76% 0.89% 0.85% 0.85%
Ratio of expenses to average net assets prior to expense
limitation and expenses paid indirectly N/A 0.77% 0.90% 1.00% N/A
Ratio of net investment income to average net assets 9.34% 0.95% 2.83% 5.02% 1.04%
Ratio of net investment income to average net assets prior to
expense limitation and expenses paid indirectly N/A 0.94% 2.82% 4.87% N/A
Portfolio turnover 92% 43% 0% 50% 49%
</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>
December 15, 1999
Global Bond Series
Growth and Income Series
Trend Series
Supplement to the Prospectus dated May 1, 1999
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 Series' company 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.
Global Bond Series -1.44%
Growth and Income Series -4.42%
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>
Global Growth
Bond and Trend
Series Income Series Series
<S> <C> <C> <C>
Net asset value, beginning of period $10.680 $19.420 $19.760
Income (loss) from investment operations:
Net investment income 0.292(2) 0.167 (0.023)
Net realized and unrealized gain (loss) on investments
and foreign currencies (0.466) 0.834 4.165
------- -------- --------
Total from investment operations (0.174) 1.001 4.142
------- -------- --------
Less dividends and distributions:
Dividends from net investment income (0.334) (0.161) (0.002)
Distributions from net realized gain on investments (0.062) (1.480) --
------- -------- --------
Total dividends and distributions (0.396) (1.641) (0.002)
------- -------- --------
Net asset value, end of period $10.110 $18.780 $23.900
======= ======== ========
Total return (1.64%) 5.79% 20.97%
Ratios and supplemental data:
Net assets, end of period (000 omitted) $22,190 $604,114 $219,907
Ratio of expenses to average net assets 0.84% 0.71% 0.83%
Ratio of expenses to average net assets prior to expense
limitation and expenses paid indirectly N/A 0.72% 0.84%
Ratio of net investment income to average net assets 5.64% 1.84% (0.27%)
Ratio of net investment income to average net assets prior to
expense limitation and expenses paid indirectly N/A 1.83% (0.28%)
Portfolio turnover 106% 120% 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>
December 15, 1999
Emerging Markets Series
Small Cap Value Series
Trend Series
Supplement to the Prospectus dated May 1, 1999
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 Series' company 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.
Emerging Markets Series 20.56%
Small Cap Value Series -6.22%
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>
Emerging Small Cap
Markets Value Trend
Series Series Series
<S> <C> <C> <C>
Net asset value, beginning of period $5.810 $16.450 $19.760
Income (loss) from investment operations:
Net investment income 0.066(2) 0.083 (0.023)
Net realized and unrealized gain (loss) on investments
and foreign currencies 1.427 0.482 4.165
------ ------- -------
Total from investment operations 1.493 0.565 4.142
------ ------- -------
Less dividends and distributions:
Dividends from net investment income (0.133) (0.195) (0.002)
Distributions from net realized gain on investments -- (0.080) --
------ ------- -------
Total dividends and distributions (0.133) (0.275) (0.002)
------ ------- -------
Net asset value, end of period $7.170 $16.740 $23.900
====== ======= =======
Total return 26.56% 3.69% 20.97%
Ratios and supplemental data:
Net assets, end of period (000 omitted) $8,956 $103,101 $219,907
Ratio of expenses to average net assets 1.49% 0.85% 0.83%
Ratio of expenses to average net assets prior to expense
limitation and expenses paid indirectly 1.64% N/A 0.84%
Ratio of net investment income to average net assets 2.19% 1.04% (0.27%)
Ratio of net investment income to average net assets prior to
expense limitation and expenses paid indirectly 2.04% N/A (0.28%)
Portfolio turnover 19% 49% 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.
