<PAGE>
DELAWARE(SM)
INVESTMENTS
Delaware U.S. Government Securities Fund
Current Income
2000 ANNUAL REPORT
{Current Income Artwork}
<PAGE>
TABLE OF CONTENTS
-----------------
Letter to Shareholders 1
Portfolio Management
Review 4
Performance Summary 6
Financial Statements
Statement of Net Assets 7
Statement of Operations 8
Statements of Changes in
Net Assets 9
Financial Highlights 10
Notes to Financial
Statements 14
Report of Independent
Auditors 16
A TRADITION OF SOUND INVESTING SINCE 1929
-----------------------------------------
A Commitment To Our Investors
Experienced
o Our seasoned investment professionals average 11 years' experience.
o We began managing investments in 1929 and opened our first mutual fund in
1938. Over the past 70 years, we have weathered a full range of economic and
market environments.
Disciplined
o We follow strict investment policies and clear buy/sell guidelines.
o We strive to balance risk and reward in order to provide sound investment
alternatives within any given asset class.
Consistent
o We clearly articulate our investment policies and follow them consistently.
o Our commitment to consistency has earned us the confidence of discriminating
institutional and individual investors to manage more than $44 billion in
assets as of September 30, 2000.
Comprehensive
o We offer more than 70 mutual funds in these asset classes.
o Large-cap equity o High-yield bonds
o Mid-cap equity o Investment grade bonds
o Small-cap equity o Municipal bonds
o International equity (single-state and national funds)
o Balanced o International fixed-income
o Our funds are available through financial advisers who can offer you
individualized attention and valuable investment advice.
Funds are not FDIC insured and are not guaranteed. It is possible to lose the
principal amount invested.
(C)Delaware Distributors, L.P.
<PAGE>
Dear Shareholder
"...WITH THEIR RELATIVELY
LARGER STREAMS OF
INCOME, BONDS TEND TO
BE FAR LESS VOLATILE
THAN STOCKS..."
--------------------------------------------------------------------------------
December 4, 2000
Recap of Events -- The past year has witnessed high levels of anxiety and
turbulence in the world's equity markets, but has proven to be relatively benign
for fixed-income investors in general, and shareholders of the Delaware U.S.
Government Securities Fund in particular. After posting a negative total return
in 1999, for the fiscal year ended October 31, 2000, the Fund generated positive
returns that exceeded those of several major stock indexes.
There was no better example of the fever pitch of emotions spent over the last
year than the technology-heavy Nasdaq Composite Index. After roaring to a return
of more than 85% in calendar year 1999, the Nasdaq Composite peaked in March
2000 and then fell into a genuine bear market. From mid-March to the end of
October, the index gave up some 40% of its value before recovering about half of
its losses.
Meanwhile, the two leading indexes of large-capitalization U.S. stocks -- the
Dow Jones Industrial Average and the Standard & Poor's 500 Index -- moved in
similar but less extreme patterns. The S&P 500 Index peaked at a record high in
March, with the Dow doing the same in April. But from there, the one-year period
ended October 31, 2000 was a bumpy road to eventually tepid returns of about
positive 2% for the Dow and plus 6% for the S&P 500 Index. But year-to-date
2000, the view was more dismal -- the S&P 500 Index was down 2.7%, the Dow was
at negative 4.7% and the Nasdaq Composite had lost 17.2% through October 31,
2000. These were sobering returns for investors who had enjoyed double-digit
returns from stocks over the prior four to five years.
Total Return
For the Period Ended October 31, 2000 One Year
-------------------------------------------------------------------------
Delaware U.S. Government Securities Fund Class A Shares +6.88%
-------------------------------------------------------------------------
Lehman Brothers Government Bond Index +8.04%
U.S. Consumer Price Index +3.36%
Lipper General U.S. Government Funds Average (365 funds) +6.77%
-------------------------------------------------------------------------
All performance shown above is at net asset value and assumes reinvestment of
all distributions. Performance information for all Fund classes can be found on
page 6. The Lehman Brothers Government Bond Index is an unmanaged composite of
several types of U.S. government securities and assumes no fees or expenses. The
U.S. Consumer Price Index is calculated by the U.S. Department of Labor and
represents the change in the price of goods and services for all urban
consumers. The Lipper category represents the average return of general U.S.
government funds tracked by Lipper (Source: Lipper Inc.). You cannot invest
directly in an index. Past performance is not a guarantee of future results.
*Although the Fund invests primarily in securities guaranteed or backed by the
U.S. government, shares of the Fund are not guaranteed and will fluctuate in
value.
1
<PAGE>
"FORTUNATELY, AS OF THIS
WRITING, WE BELIEVE THAT
THE SIGNS POINT ONLY TO
A 'SOFT LANDING' FOR THE
ECONOMY -- SLOWER
GROWTH AND EVEN TAMER
INFLATION."
{Current Income Artwork}
--------------------------------------------------------------------------------
Among the causes of the equity markets' spasms were concerns that the U.S.
economy, in the longest period of expansion in its history, was growing too fast
and would re-ignite inflation. U.S. Gross Domestic Product was up a torrid 5.6%
on an annualized basis at the end of the second quarter of 1999, and
unemployment was running near 20-year lows at around 4%. Adding further fuel to
the fire was this year's meteoric rise in the price of oil, up some 30% in
October 2000 and, at its peak, the highest it's been in 10 years.
Focused on keeping inflation in check, the Federal Reserve Board began raising
short-term interest rates in June 1999, a process it continued well into this
year. All told, it hiked its discount rate -- the rate the Federal Reserve
charges member banks for overnight loans -- six times over one year, from 4.75%
to 6.50%, where it remains at its highest level since 1991. Fearful that the
moves would stifle corporate profit growth, many investors worldwide began a
massive shift away from stocks and into U.S. Treasury securities, particularly
those with longer maturities and relatively higher yields. This pushed long-term
bond prices upward and long-term yields lower.
This combination of Fed and investor actions last summer resulted in an
infrequent phenomenon in the bond markets known as an "inverted yield curve."
This is characterized by higher yields for shorter term maturities than yields
on longer term maturities. As of the end of August, the yield on 90-day Treasury
bills was 6.11%, while the 5-year note yield was 5.98%, the 10-year bond yield
stood at 5.73% and the 30-year at 5.67%. Historically, this phenomenon often
preceded a recession. Fortunately, as of this writing, we believe that the signs
point only to a "soft landing" for the economy -- slower growth and even tamer
inflation.
These developments serve as a useful reminder of why even equity investors
should include bonds in their portfolios, to reduce the long-term wealth-robbing
effect of wide fluctuations in portfolio value. As 1999 demonstrated, not even
bonds are immune to negative total returns -- when interest rates rise, bond
prices fall, and values of bond portfolios fall along with them. But with their
relatively larger streams of income, bonds tend to be far less volatile than
stocks, especially high-quality bonds from the intermediate to the long range of
the maturity spectrum. This is precisely where your Fund manager held the Fund
over the last 12 months.
2
<PAGE>
"WE BELIEVE THE FED IS
FINISHED WITH ITS
TIGHTENING CYCLE AND
MAY EVEN REDUCE SHORT-
TERM INTEREST RATES
EARLY NEXT YEAR."
--------------------------------------------------------------------------------
Delaware U.S. Government Securities Fund performed well despite the severe
volatility in the stock and bond markets, delivering a total return of +6.88%
(Class A shares at net asset value with distributions reinvested) for the
one-year period ended October 31, 2000.
Market Outlook -- We believe that after a series of six interest rate hikes
since June 1999, Federal Reserve Chairman Greenspan has successfully navigated a
soft landing for the economy. We believe the Fed is finished with its tightening
cycle and may even reduce short-term interest rates early next year. This should
bode well for fixed-income investors.
In the following section, Delaware U.S. Government Securities Fund's manager
reviews his strategy for the Fund and offers his outlook for the year ahead. We
hope you are as pleased as we are with the results achieved. We thank you for
your continued confidence in Delaware Investments.
Sincerely,
/s/ Wayne A. Stork /s/ David K. Downes
------------------------------------ --------------------------------------
Wayne A. Stork David K. Downes
Chairman, President and Chief Executive Officer,
Delaware Investments Family of Funds Delaware Investments Family of Funds
3
<PAGE>
Randal W. Harrison
Senior Portfolio Manager
December 4, 2000
"THE FUND DELIVERED AN
ATTRACTIVE TOTAL RETURN
CONSISTING OF RELATIVELY
HIGH CURRENT INCOME
AND MODEST PRICE
APPRECIATION."
{Current Income Artwork}
--------------------------------------------------------------------------------
PORTFOLIO MANAGEMENT REVIEW
---------------------------
The Fund's Results
Despite high levels of volatility in the stock and bond markets, the Fund
enjoyed success over the one-year period ended October 31, 2000. The Fund
delivered an attractive total return consisting of relatively high current
income and modest price appreciation. By the end of its fiscal year on October
31, 2000, the Fund's total return stood at +6.88% (Class A shares at net asset
value with distributions reinvested).
The most significant contributor to these results was the Fund's emphasis on
Government National Mortgage Association (GNMA) mortgage-backed securities.
These securities represent ownership of a pool of mortgages, with investors
receiving a proportionate share of net mortgage interest and principal payments.
The Fund's holdings of this category of securities comprised 71% of its
portfolio of marketable instruments at fiscal year-end, up from nearly 65% a
year ago. Backed by the full faith and credit of the U.S. government, GNMA
mortgage-backed securities provide nearly the same level of safety as U.S.
Treasury bonds. But as investors flocked to the ultimate safety of Treasuries
this past year, a significant yield advantage emerged for GNMA mortgage-backed
securities and the Fund sought to capitalize to improve its income stream.
While shifting its focus further away from Treasuries, the Fund sought to
minimize risk in two ways. The first was by avoiding bonds selling at prices
well above their par value, or face value. Bonds or mortgage-backed securities
tend to sell at high premiums when they offer attractive levels of income. Yet
paying large premiums for that higher income means carrying increased risks,
especially during a period of changing interest rates. By not purchasing
high-premium securities, we attempted to minimize such risk.
Secondly, the Fund focused on mortgage-backed securities instead of direct debt
issued by government-owned agencies, such as GNMA, or government-sponsored
agencies such as the Federal National Mortgage Association (FNMA) and the
Federal Home Loan Mortgage Association (FHLMC). Both of the latter came under
more intense Congressional scrutiny this past year, with the threat that
Congress would vote to remove their government sponsorships and guarantees. As a
result, prices for these securities fell, and while the resulting yields were
even more attractive than those on mortgage-backed bonds, Fund management
believed the outcome of the review process was too uncertain to risk the Fund's
capital in this area.
4
<PAGE>
Delaware U.S. Government
Securities Fund
Portfolio Characteristics
October 31, 2000
Current 30-Day SEC Yield* +5.55%
--------------------------------------------------------------------------
Average Duration** 5.19 years
--------------------------------------------------------------------------
Average Effective
Maturity*** 23.05 years
--------------------------------------------------------------------------
Average Credit Quality AAA
--------------------------------------------------------------------------
*For Class A shares measured according to Securities and Exchange Commission
(SEC) guidelines. Current 30-day SEC yield as of October 31, 2000 for Class B
shares was 5.07%. For Class C shares, the 30-day SEC yield was 5.10%.
**Duration is a common measure of a bond or bond fund's sensitivity to interest
rate changes.
***Average effective maturity is the average time remaining until scheduled
repayment by issuers of portfolio securities.
--------------------------------------------------------------------------------
Throughout the year, as the Fund's GNMA holdings increased, its investment in U.
S. Treasury securities declined, from nearly 34% of the portfolio a year ago to
under 27% on October 31, 2000, reflecting the opportunity for better yields on
GNMAs. Meanwhile, the Fund's investment in STRIP securities (Separate Trading to
Registered Interest or Principal of Securities) rose slightly, from 1.6% to
2.2%. Rather than being an indication of additional investment, the increase
reflected gains in the prices of these highly interest-rate-sensitive
instruments.
Outlook
As for the year ahead, we believe that the emerging economic environment could
result in a decline in short-term interest rates of between 0.25% and 0.75%, and
the return to a "normal" yield curve over the next six months. Reports near the
close of the Fund's fiscal year gave evidence that the economy may be slowing
down. Signs of this can be seen in the decline in consumer prices in August,
lower import prices in October, and in the lower-than-expected increase in
third-quarter Gross Domestic Product of just 2.7%, announced at the beginning of
November. At the same time, productivity gains appear strong enough to more than
offset the inflationary pressures of high employment and growing payrolls.
As interest rates decline, we expect mortgage refinancings to be on the upswing,
but we don't expect them to return to the levels of one to two years ago. Thus,
we believe the Fund's income stream from mortgage-backed securities will be
relatively stable. In the meantime, we plan to continue to favor government
agency-related bonds over U.S. Treasuries. With the threat of Congressional
action against FNMA and FHLMC apparently subsided, we will also look for
opportunities to invest in bonds issued by government agencies.
With expectations of a cooling but nevertheless vibrant economy, lower inflation
and a return to a "normal" yield curve, we look forward to another rewarding
year for investors in Delaware U.S. Government Securities Fund.
5
<PAGE>
FUND BASICS
-----------
Fund Objectives
The Fund seeks to provide a high level of current income consistent with prudent
investment risk by investing primarily in debt obligations issued or guaranteed
by the U.S. government, its agencies or instrumentalities.
Total Fund Assets
As of October 31, 2000
$39.79 million
Number of Holdings
34
Fund Start Date
November 2, 1987
Your Fund Manager
Randal W. Harrison holds a B.A. from Miami University (Ohio) and an MBA from the
University of Iowa. Prior to joining Voyageur Asset Management, LLC in 1993, Mr.
Harrison was a securities analyst and trader for AEGON USA Insurance Group. He
is a CFA charterholder and has been in the investment industry since 1990.
Nasdaq Symbols
Class A VUSGX
Class B DVGBX
Class C DVUCX
{Current Income Artwork}
--------------------------------------------------------------------------------
<PAGE>
DELAWARE U.S. GOVERNMENT SECURITIES
-----------------------------------
FUND PERFORMANCE
----------------
Growth of a $10,000 Investment
October 31, 1990 through October 31, 2000
Lehman Brothers Delaware U.S. Government
Government Securities Fund
Bond Index Class A Shares
-------------- ------------------------
Oct-90 $10,000 $ 9,523
Oct-91 $11,460 $11,113
Oct-92 $12,644 $12,299
Oct-93 $14,305 $13,995
Oct-94 $13,665 $12,964
Oct-95 $15,767 $15,218
Oct-96 $16,574 $15,945
Oct-97 $18,009 $17,279
Oct-98 $20,041 $18,801
Oct-99 $19,799 $18,510
Oct-00 $21,390 $19,781
Chart assumes $10,000 invested on October 31, 1990 and includes the effect of a
4.75% front-end sales charge and the reinvestment of all distributions.
Performance of other Fund classes will vary due to differing charges and
expenses. Returns plotted on the chart were as of the last day of each
successive month. You cannot invest directly in an index. Past performance is
not a guarantee of future results.
Average Annual Total Returns
Through October 31, 2000 Lifetime 10 Years Five Years One Year
--------------------------------------------------------------------------------
Class A Shares (Est. 11/2/87)
Excluding Sales Charge +7.92% +7.61% +5.38% +6.88%
Including Sales Charge +7.51% +7.09% +4.37% +1.79%
--------------------------------------------------------------------------------
Class B Shares (Est. 6/7/94)
Excluding Sales Charge +5.66% +4.63% +6.06%
Including Sales Charge +5.66% +4.30% +2.06%
--------------------------------------------------------------------------------
Class C Shares (Est. 1/10/95)
Excluding Sales Charge +6.70% +4.62% +6.08%
Including Sales Charge +6.70% +4.62% +5.08%
--------------------------------------------------------------------------------
Returns reflect the reinvestment of distributions and any applicable sales
charges as noted below. Returns and share values will fluctuate so that shares,
when redeemed, may be worth more or less than their original cost. Class B and C
share results, excluding sales charges, assume either that contingent deferred
sales charges did not apply or the investment was not redeemed. Past performance
is not a guarantee of future results.
Class A shares have a 4.75% maximum front-end sales charge and a 12b-1 fee.
Class B shares do not have a front-end sales charge, but are subject to a 1%
annual distribution and service fee. They are also subject to a contingent
deferred sales charge of up to 4% if redeemed before the end of the sixth year.
Class C shares have a 1% annual distribution and service fee. If redeemed within
12 months, a 1% contingent deferred sales charge applies.
The average annual total returns for the lifetime, five-year and one-year
periods ended October 31, 2000 for Delaware U.S. Government Securities Fund's
Institutional Class shares were +6.43%, +5.43% and +7.00%, respectively. The
Institutional Class was originally made available without sales charges or
asset-based distribution charges only to certain eligible institutional accounts
on June 7, 1994.
An expense limitation was in effect for all classes of Delaware U.S. Government
Securities Fund during the periods shown. Performance would have been lower if
the expense limitation was not in effect.
Nasdaq Symbol Institutional Class: VUSIX
6
<PAGE>
Statement of Net Assets
DELAWARE U.S. GOVERNMENT SECURITIES FUND
----------------------------------------
Principal Market
October 31, 2000 Amount Value
--------------------------------------------------------------------------------
Agency Mortgage-Backed Securities - 70.71%
Government National Mortgage Association
6.50% 7/15/14 to 4/15/29 ........................... $7,044,167 $ 6,838,724
7.50% 3/15/27 to 9/20/30 ........................... 9,274,911 9,312,473
8.00% 1/15/17 to 5/15/30 ........................... 3,390,010 3,449,369
10.00% 3/15/16 ..................................... 26,129 27,950
Government National Mortgage Association II
6.00% 11/20/28 ..................................... 1,834,900 1,724,233
6.50% 5/20/28 to 2/20/30 ........................... 5,490,384 5,268,280
8.00% 6/20/30 ...................................... 1,486,724 1,504,379
10.00% 12/20/02 .................................... 9,362 9,748
-----------
Total Agency Mortgage-Backed Securities
(cost $28,363,467) ................................. 28,135,156
-----------
U.S. Treasury Obligations - 28.65%
U.S. Treasury Bill 6.09% 11/24/00 .................... 471,000 469,202
U.S. Treasury Bonds
6.125% 8/15/29 ..................................... 1,600,000 1,657,501
7.875% 2/15/21 ..................................... 120,000 146,044
8.00% 11/15/21 ..................................... 820,000 1,013,726
8.125% 8/15/21 ..................................... 1,000,000 1,249,552
8.50% 2/15/20 ...................................... 500,000 640,809
U.S. Treasury Notes
4.25% 11/15/03 ..................................... 303,000 289,386
4.50% 1/31/01 ...................................... 500,000 497,556
4.75% 11/15/08 ..................................... 2,000,000 1,861,694
4.875% 3/31/01 ..................................... 145,000 144,094
5.625% 12/31/02 .................................... 1,000,000 993,644
6.25% 6/30/02 ...................................... 150,000 150,522
6.50% 8/31/01 ...................................... 500,000 500,597
6.625% 4/30/02 ..................................... 340,000 342,634
7.00% 7/15/06 ...................................... 545,000 574,690
*U.S.Treasury Strip-Principal 6.54% 11/15/04 ......... 1,100,000 869,461
-----------
Total U.S. Treasury Obligations
(cost $11,315,879) ................................. 11,401,112
-----------
Total Market Value of Securities - 99.36%
(cost $39,679,346) ................................. 39,536,268
Receivables and Other Assets
Net of Liabilities - 0.64% ......................... 254,570
-----------
Net Assets Applicable to 3,856,698
Shares Outstanding - 100.00% ....................... $39,790,838
===========
<PAGE>
Net Asset Value - Delaware U.S. Government
Securities Fund A Class
($30,142,220 / 2,922,434 Shares) ................... $10.31
------
Net Asset Value - Delaware U.S. Government
Securities Fund B Class
($6,188,460 / 598,904 Shares) ...................... $10.33
------
Net Asset Value - Delaware U.S. Government
Securities Fund C Class
($1,637,061 / 158,737 Shares) ...................... $10.31
------
Net Asset Value - Delaware U.S. Government
Securities Fund Institutional Class
($1,823,097 / 176,623 Shares) ...................... $10.32
------
Components of Net Assets at October 31, 2000:
Shares of beneficial interest
(unlimited authorization - no par) ................. $44,791,929
Accumulated net realized loss on investments ......... (4,858,013)
Net unrealized depreciation of investments ........... (143,078)
-----------
Total net assets ..................................... $39,790,838
===========
-----------------------
* Zero coupon security. The interest rate disclosed is the effective yield at
the time of purchase.
Net Asset Value and Offering Price per
Share - Delaware U.S. Government
Securities Fund
Net asset value A class (A) .......................... $10.31
Sales charge (4.75% of offering price or 4.95%
of the amount invested per share) (B) ................ 0.51
------
Offering price ....................................... $10.82
======
-----------------------
(A) Net asset value per share, as illustrated, is the estimated amount which
would be paid upon the redemption or repurchase of shares.
(B) See the current prospectus for purchases of $100,000 or more.
See accompanying notes
7
<PAGE>
Statement of Operations
<TABLE>
<CAPTION>
Year Ended October 31, 2000 Delaware U.S. Government Securities Fund
---------------------------------------------------------------------------------------------
<S> <C> <C>
Investment Income:
Interest .................................................. $2,789,184
----------
Expenses:
Management fees ........................................... $230,488
Distribution expense ...................................... 160,320
Dividend disbursing and transfer agent fees and expenses .. 120,539
Reports and statements to shareholders .................... 77,233
Registration fees ......................................... 67,064
Professional fees ......................................... 55,200
Accounting and administration ............................. 18,350
Taxes (other than taxes on income) ........................ 10,701
Custodian fees ............................................ 9,100
Trustees' fees ............................................ 6,650
Other ..................................................... 9,439 765,084
--------
Less expenses waived or absorbed .......................... (253,075)
Less expenses paid indirectly ............................. (964)
----------
Total operating expenses .................................. 511,045
Interest expense .......................................... 3,496
----------
Total expenses ............................................ 514,541
----------
Net Investment Income ..................................... 2,274,643
----------
Net Realized and Unrealized Gain (Loss) on Investments:
Net realized loss on investments .......................... (1,708,354)
Net change in unrealized appreciation/depreciation
of investments ........................................... 2,013,553
----------
Net Realized and Unrealized Gain on Investments ........... 305,199
----------
Net Increase in Net Assets Resulting From Operations ...... $2,579,842
==========
</TABLE>
See accompanying notes
8
<PAGE>
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
Delaware U.S. Government Securities Fund
------------------------------------------------------------------------------------------------------------------------------------
Year Ended
10/31/00 10/31/99
<S> <C> <C>
Increase (Decrease) in Net Assets From Operations:
Net investment income ..................................... $ 2,274,643 $ 4,122,259
Net realized loss on investments .......................... (1,708,354) (3,031,615)
Net change in unrealized appreciation/depreciation
of investments ........................................... 2,013,553 (2,802,444)
-------------------------------
Net increase (decrease) in net assets resulting
from operations .......................................... 2,579,842 (1,711,800)
-------------------------------
Distributions to Shareholders from:
Net investment income:
A Class ................................................. (1,779,950) (1,997,496)
B Class ................................................. (286,412) (235,557)
C Class ................................................. (70,241) (38,943)
Institutional Class ..................................... (151,494) (1,836,809)
Net realized gain on investments:
A Class ................................................. -- (242,646)
B Class ................................................. -- (26,084)
C Class ................................................. -- (2,085)
Institutional Class ..................................... -- (201,369)
-------------------------------
(2,288,097) (4,580,989)
-------------------------------
Capital Share Transactions:
Proceeds from shares sold:
A Class ................................................. 5,353,955 8,038,131
B Class ................................................. 1,863,407 4,291,874
C Class ................................................. 865,171 1,597,648
Institutional Class ..................................... 106,182 10,762,439
Net asset value of shares issued upon reinvestment
of distributions:
A Class ................................................. 1,205,204 1,533,537
B Class ................................................. 224,459 209,476
C Class ................................................. 59,080 33,177
Institutional Class ..................................... 106,376 1,845,529
-------------------------------
9,783,834 28,311,811
-------------------------------
Cost of shares repurchased:
A Class ................................................. (15,203,141) (13,003,403)
B Class ................................................. (2,492,801) (2,143,849)
C Class ................................................. (691,313) (560,273)
Institutional Class ..................................... (2,643,340) (42,448,667)
-------------------------------
(21,030,595) (58,156,192)
-------------------------------
Decrease in net assets derived from capital
share transactions ...................................... (11,246,761) (29,844,381)
-------------------------------
Net Decrease in Net Assets ................................ (10,955,016) (36,137,170)
Net Assets:
Beginning of period ..................................... 50,745,854 86,883,024
-------------------------------
End of period ........................................... $39,790,838 $50,745,854
===============================
</TABLE>
See accompanying notes
9
<PAGE>
Financial Highlights
Selected data for each share of the Fund outstanding
throughout each period were as follows:
<TABLE>
<CAPTION>
Delaware U.S. Government Securities Fund A Class
------------------------------------------------------------------------------------------------------------------------------------
Four
Months Year
Year Ended Ended Ended
<S> <C> <C> <C> <C> <C> <C>
10/31/00 10/31/99 10/31/98 10/31/97(1) 10/31/96(2) 6/30/96
Net asset value, beginning of period ...................... $10.200 $10.940 $10.600 $10.370 $10.160 $10.370
Income (loss) from investment operations:
Net investment income ................................... 0.562 0.516 0.555 0.590 0.210 0.630
Net realized and unrealized gain (loss)
on investments ......................................... 0.115 (0.681) 0.351 0.240 0.210 (0.230)
----------------------------------------------------------------------
Total from investment operations ........................ 0.677 (0.165) 0.906 0.830 0.420 0.400
----------------------------------------------------------------------
Less dividends and distributions:
Dividends from net investment income .................... (0.567) (0.515) (0.566) (0.600) (0.210) (0.610)
Distributions from net realized gain
on investments ......................................... -- (0.060) -- -- -- --
----------------------------------------------------------------------
Total dividends and distributions ....................... (0.567) (0.575) (0.566) (0.600) (0.210) (0.610)
----------------------------------------------------------------------
Net asset value, end of period ............................ $10.310 $10.200 $10.940 $10.600 $10.370 $10.160
======================================================================
Total return(3) ........................................... 6.88% (1.53%) 8.79% 8.37% 4.18% 3.88%
Ratios and supplemental data:
Net assets, end of period (000 omitted) ................. $30,142 $38,520 $44,819 $52,213 $65,516 $68,442
Ratio of expenses to average net assets ................. 1.10% 1.03% 1.00% 0.93% 0.98% 0.97%
Ratio of expenses to average net assets prior to
expense limitation and expenses paid indirectly ........ 1.70% 1.05% 1.06% 1.01% 0.98% 0.97%
Ratio of net investment income to average
net assets ............................................. 5.55% 4.91% 5.21% 5.76% 6.03% 6.07%
Ratio of net investment income to average
net assets prior to expense limitation and
expenses paid indirectly ............................... 4.95% 4.89% 5.15% 5.68% 6.03% 6.07%
Portfolio turnover ...................................... 73% 182% 280% 202% 66% 145%
</TABLE>
----------------------
(1) Commencing May 1, 1997, Delaware Management Company replaced Voyageur Fund
Managers, Inc. as the Fund's investment manager.
(2) Effective October 31, 1996, the Fund changed its fiscal year end from June
30 to October 31; ratios have been annualized and total return has not been
annualized.
(3) Total investment return is based on the change in net asset value of a
share during the period and assumes reinvestment of distributions at net
asset value.
See accompanying notes
10
<PAGE>
Financial Highlights (continued)
Selected data for each share of the Fund outstanding
throughout each period were as follows:
<TABLE>
<CAPTION>
Delaware U.S. Government Securities Fund B Class
------------------------------------------------------------------------------------------------------------------------------------
Four
Months Year
Year Ended Ended Ended
10/31/00 10/31/99 10/31/98 10/31/97(1) 10/31/96(2) 6/30/96
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period ..................... $10.220 $10.950 $10.610 $10.380 $10.170 $10.380
Income (loss) from investment operations:
Net investment income .................................. 0.486 0.438 0.477 0.520 0.180 0.570
Net realized and unrealized gain (loss)
on investments ........................................ 0.113 (0.673) 0.348 0.240 0.210 (0.230)
-----------------------------------------------------------------------
Total from investment operations ....................... 0.599 (0.235) 0.825 0.760 0.390 0.340
-----------------------------------------------------------------------
Less dividends and distributions:
Dividends from net investment income ................... (0.489) (0.435) (0.485) (0.530) (0.180) (0.550)
Distributions from net realized gain
on investments ........................................ -- (0.060) -- -- -- --
-----------------------------------------------------------------------
Total dividends and distributions ...................... (0.489) (0.495) (0.485) (0.530) (0.180) (0.550)
-----------------------------------------------------------------------
Net asset value, end of period ........................... $10.330 $10.220 $10.950 $10.610 $10.380 $10.170
=======================================================================
Total return(3) .......................................... 6.06% (2.18%) 7.97% 7.59% 3.91% 3.32%
Ratios and supplemental data:
Net assets, end of period (000 omitted) ................ $6,188 $6,550 $4,582 $2,257 $2,139 $1,780
Ratio of expenses to average net assets ................ 1.85% 1.78% 1.75% 1.67% 1.73% 1.46%
Ratio of expenses to average net assets prior to
expense limitation and expenses paid indirectly ....... 2.45% 1.80% 1.81% 1.75% 1.73% 1.63%
Ratio of net investment income to average
net assets ............................................ 4.80% 4.16% 4.46% 5.02% 5.24% 5.55%
Ratio of net investment income to average
net assets prior to expense limitation and
expenses paid indirectly .............................. 4.20% 4.14% 4.40% 4.94% 5.24% 5.38%
Portfolio turnover ..................................... 73% 182% 280% 202% 66% 145%
</TABLE>
----------------------
(1) Commencing May 1, 1997, Delaware Management Company replaced Voyageur Fund
Managers, Inc. as the Fund's investment manager.
(2) Effective October 31, 1996, the Fund changed its fiscal year end from June
30 to October 31; ratios have been annualized and total return has not been
annualized.
(3) Total investment return is based on the change in net asset value of a
share during the period and assumes reinvestment of distributions at net
asset value and does not reflect the impact of a sales charge.
See accompanying notes
11
<PAGE>
Financial Highlights (continued)
Selected data for each share of the Fund outstanding
throughout each period were as follows:
<TABLE>
<CAPTION>
Delaware U.S. Government Securities Fund C Class
------------------------------------------------------------------------------------------------------------------------------------
Four
Months Year
Year Ended Ended Ended
10/31/00 10/31/99 10/31/98 10/31/97(1) 10/31/96(2) 6/30/96
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period ...................... $10.200 $10.930 $10.590 $10.360 $10.150 $10.360
Income (loss) from investment operations:
Net investment income ................................... 0.487 0.438 0.477 0.520 0.180 0.550
Net realized and unrealized gain (loss)
on investments ......................................... 0.113 (0.676) 0.348 0.240 0.210 (0.230)
----------------------------------------------------------------------
Total from investment operations ........................ 0.600 (0.238) 0.825 0.760 0.390 0.320
----------------------------------------------------------------------
Less dividends and distributions:
Dividends from net investment income .................... (0.490) (0.432) (0.485) (0.530) (0.180) (0.530)
Distributions from net realized gain
on investments ......................................... -- (0.060) -- -- -- --
----------------------------------------------------------------------
Total dividends and distributions ....................... (0.490) (0.492) (0.485) (0.530) (0.180) (0.530)
----------------------------------------------------------------------
Net asset value, end of period ............................ $10.310 $10.200 $10.930 $10.590 $10.360 $10.150
======================================================================
Total return(3) ........................................... 6.08% (2.19%) 7.98% 7.60% 3.92% 3.11%
Ratios and supplemental data:
Net assets, end of period (000 omitted) ................. $1,637 $1,392 $385 $138 $234 $224
Ratio of expenses to average net assets ................. 1.85% 1.78% 1.75% 1.68% 1.73% 1.70%
Ratio of expenses to average net assets prior to
expense limitation and expenses paid indirectly ........ 2.45% 1.80% 1.81% 1.76% 1.73% 1.70%
Ratio of net investment income to average
net assets ............................................. 4.80% 4.16% 4.46% 5.02% 5.26% 5.33%
Ratio of net investment income to average
net assets prior to expense limitation and
expenses paid indirectly ............................... 4.20% 4.14% 4.40% 4.94% 5.26% 5.33%
Portfolio turnover ...................................... 73% 182% 280% 202% 66% 145%
</TABLE>
----------------------
(1) Commencing May 1, 1997, Delaware Management Company replaced Voyageur Fund
Managers, Inc. as the Fund's investment manager.
(2) Effective October 31, 1996, the Fund changed its fiscal year end from June
30 to October 31; ratios have been annualized and total return has not been
annualized.
(3) Total investment return is based on the change in net asset value of a
share during the period and assumes reinvestment of distributions at net
asset value and does not reflect the impact of a sales charge.
See accompanying notes
12
<PAGE>
Financial Highlights (continued)
Selected data for each share of the Fund outstanding
throughout each period were as follows:
<TABLE>
<CAPTION>
Delaware U.S. Government Securities Fund Institutional Class
------------------------------------------------------------------------------------------------------------------------------------
Four
Months Year
Year Ended Ended Ended
10/31/00 10/31/99 10/31/98 10/31/971 10/31/962 6/30/96
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $10.210 $10.940 $10.600 $10.370 $10.160 $10.370
Income (loss) from investment operations:
Net investment income 0.572 0.521 0.555 0.600 0.210 0.630
Net realized and unrealized gain (loss)
on investments 0.117 (0.672) 0.351 0.240 0.210 (0.230)
----------------------------------------------------------------------
Total from investment operations 0.689 (0.151) 0.906 0.840 0.420 0.400
----------------------------------------------------------------------
Less dividends and distributions:
Dividends from net investment income (0.579) (0.519) (0.566) (0.610) (0.210) (0.610)
Distributions from net realized gain
on investments -- (0.060) -- -- -- --
----------------------------------------------------------------------
Total dividends and distributions (0.579) (0.579) (0.566) (0.610) (0.210) (0.610)
Net asset value, end of period $10.320 $10.210 $10.940 $10.600 $10.370 $10.160
======================================================================
Total return(3) 7.00% (1.40%) 8.79% 8.39% 4.17% 3.88%
Ratios and supplemental data:
Net assets, end of period (000 omitted) $1,823 $4,285 $37,097 $45,589 $50,066 $41,688
Ratio of expenses to average net assets 1.01% 0.99% 1.00% 0.93% 0.99% 0.97%
Ratio of expenses to average net assets prior to
expense limitation and expenses paid indirectly 1.70% 1.01% 1.06% 1.01% 0.99% 0.97%
Ratio of net investment income to average
net assets 5.64% 4.95% 5.21% 5.76% 6.00% 6.07%
Ratio of net investment income to average
net assets prior to expense limitation and
expenses paid indirectly 4.95% 4.93% 5.15% 5.68% 6.00% 6.07%
Portfolio turnover 73% 182% 280% 202% 66% 145%
</TABLE>
----------------------
(1) Commencing May 1, 1997, Delaware Management Company replaced Voyageur Fund
Managers, Inc. as the Fund's investment manager.
(2) Effective October 31, 1996, the Fund changed its fiscal year end from June
30 to October 31; ratios have been annualized and total return has not been
annualized.
(3) Total investment return is based on the change in net asset value of a
share during the period and assumes reinvestment of distributions at net
asset value. See accompanying notes
13
<PAGE>
Notes to Financial Statements
October 31, 2000
--------------------------------------------------------------------------------
Voyageur Funds, Inc. - (the "Trust") is registered as an investment company
under the Investment Company Act of 1940, as amended. The Trust is organized as
a Delaware Business Trust. Delaware U.S. Government Securities Fund (the
"Fund"), a series of Voyageur Funds, Inc., is a diversified investment company.
The Fund currently offers four classes of shares. The A Class carries a maximum
front-end sales charge of 4.75%. The B Class carries a back-end deferred sales
charge, the C Class carries a level load deferred sales charge and the
Institutional Class has no sales charge.
The Fund's objective is to seek a high level of current income consistent with
prudent investment risk from investments issued, guaranteed or otherwise backed
by the full faith and credit of the U.S. Government.
1.Significant Accounting Policies
The following accounting policies are in accordance with accounting principles
generally accepted in the United States and are consistently followed by the
Fund.
Security Valuation - 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 under the direction of the Fund's Board of
Trustees.
Federal Income Taxes - The Fund intends to continue to qualify as a regulated
investment company and make the requisite distributions to shareholders.
Accordingly, no provision for federal income taxes has been made in the
financial statements. Income and capital gain distributions are determined in
accordance with federal income tax regulations, which may differ from accounting
principles generally accepted in the United States.
Class Accounting - Investment income, common expenses and realized and
unrealized gain (loss) on investments are allocated to the various classes of
the Fund on the basis of daily net assets of each class. Distribution expenses
relating to a specific class are charged directly to that class.
Repurchase Agreements - The Fund may invest in a pooled cash account along with
other members of the Delaware Investments Family of Funds. The aggregate daily
balance of the pooled cash account is invested in repurchase agreements secured
by obligations of the U.S. government. The respective collateral is held by the
Fund's custodian bank until the maturity of the respective repurchase
agreements. Each repurchase agreement is 102% collateralized. However, in the
event of default or bankruptcy by the counterparty to the agreement, realization
of the collateral may be subject to legal proceedings.
<PAGE>
Use of Estimates - The preparation of financial statements in conformity with
accounting principles generally accepted in the United States requires
management to make estimates and assumptions that affect the reported amounts of
assets and liabilities at the date of the financial statements and the reported
amounts of revenues and expenses during the reporting period. Actual results
could differ from those estimates.
Other - Expenses common to all funds within the Delaware Investments Family of
Funds are allocated amongst the funds on the basis of average net assets.
Security transactions are recorded on the date the securities are purchased or
sold (trade date). Costs used in calculating realized gains and losses on the
sale of investment securities are those of the specific securities sold.
Interest income is recorded on the accrual basis. Original issue discounts and
market premiums are accreted to interest income over the lives of the respective
securities. The Fund declares dividends daily from net investment income and
pays such dividends monthly and declares and pays distributions from net
realized gain on investment transactions, if any, annually.
Certain expenses of the Fund are paid through commission arrangements with
brokers. These transactions are done subject to best execution. The amount of
these expenses was approximately $964 for the year ended October 31, 2000. The
expenses paid under the above agreement are included in their respective expense
captions on the Statement of Operations with a corresponding expense offset
shown as "Expenses paid indirectly."
2. Investment Management and Other Transactions with Affiliates
In accordance with the terms of the Investment Management Agreement, the Fund
pays Delaware Management Company (DMC), a series of Delaware Management Business
Trust and the Investment Manager of the Fund, an annual fee which is calculated
daily at the rate of 0.55% on the first $500 million of net assets of the Fund,
0.50% on the next $500 million, 0.45% on the next $1.5 billion, and 0.425% on
the net assets over $2.5 billion. DMC has agreed to limit its management fee to
0.50% of daily net assets through April 30, 2001.
DMC has entered into a sub-advisory agreement with Voyageur Asset Management,
LLC with respect to the management of the Fund. The sub-advisor receives a
sub-advisory fee from DMC for its services equal to one half of the actual fee
paid to DMC under the terms of the Investment Management Agreement. The Fund
does not pay any fees directly to the sub-advisor. Effective December 8, 2000,
Voyageur Asset Management was sold to Dain Rauscher. The sub-advisory agreement
was terminated.
14
<PAGE>
Notes to Financial Statements (continued)
2. Investment Management and Other Transactions with Affiliates
(continued)
DMC has elected to waive its management fee and reimburse the Fund to the extent
necessary to ensure that annual operating expenses, exclusive of taxes,
interest, brokerage commissions, distribution fees and extraordinary expenses
exceed 0.85% of average daily net assets through October 31, 2000.
The Fund has engaged Delaware Service Company, Inc. (DSC), an affiliate of DMC,
to provide dividend disbursing, transfer agent, accounting and administration
services. The Fund pays DSC a monthly fee based on number of shareholder
accounts, shareholder transactions and average net assets, subject to certain
minimums. At October 31, 2000, the Fund had a liability for such fees and other
expenses payable to DSC of $11,400.
Pursuant to the Distribution Agreement, the Fund pays Delaware Distributors,
L.P. (DDLP), the Distributor and an affiliate of DMC, an annual fee not to
exceed 0.25% of the average daily net assets attributable to A Class and
Institutional Class shares and 1.00% of the average daily net assets
attributable to B Class and C Class shares. The Distributor has agreed to waive
these fees for the Institutional Class shares acquired by shareholders on or
after March 1, 1998. On October 31, 2000, the Fund had a payable to DDLP of
$40,917.
For the year ended October 31, 2000, DDLP earned $5,043 for commissions on sales
of the Fund A Class shares.
Certain officers of DMC, DSC and DDLP are officers, trustees and/or employees of
the Fund. These officers, trustees and employees are paid no compensation by the
Fund.
3. Investments
During the year ended October 31, 2000, the Fund had purchases of $29,600,352
and sales of $41,826,134 of long-term U.S. government securities.
As of October 31, 2000, net unrealized depreciation for federal income tax
purposes aggregated $336,379 of which $212,720 related to unrealized
appreciation of securities and $549,099 related to unrealized depreciation of
securities. At October 31, 2000, the aggregate cost of securities for federal
income tax purposes was $39,872,654.
For federal income tax purposes, the Fund had accumulated capital losses of
$3,514,534, that will expire in 2008, which may be carried forward and applied
against future capital gains.
<PAGE>
4. Capital Shares
Transactions in capital shares were as follows:
Year Ended
10/31/00 10/31/99
Shares sold:
A Class 530,564 768,054
B Class 182,948 407,097
C Class 84,940 152,135
Institutional Class 10,570 1,016,118
Shares issued upon reinvestment of distributions:
A Class 118,987 145,433
B Class 22,127 19,894
C Class 5,832 3,187
Institutional Class 10,512 174,713
---------- ----------
966,480 2,686,631
---------- ----------
Shares repurchased:
A Class (1,503,423) (1,235,065)
B Class (247,208) (204,181)
C Class (68,515) (54,037)
Institutional Class (264,318) (4,160,715)
---------- ----------
(2,083,464 (5,653,998)
---------- ----------
Net decrease (1,116,984) (2,967,367)
========== ==========
5. Market and Credit Risk
The Fund invests in fixed income securities whose value is derived from an
underlying pool of mortgages or consumer loans. Investors receive principal and
interest payments as the underlying mortgages and consumer loans are paid back.
Prepayment of mortgages may shorten the stated maturity of the obligations and
can result in a loss of premium, if any has been paid.
15
<PAGE>
Report of Independent Auditors
To the Shareholders and Board of Trustees
Voyageur Mutual Funds - Delaware U.S. Government Securities Fund
We have audited the accompanying statement of net assets of Delaware U.S.
Government Securities Fund (the "Fund") as of October 31, 2000, and the related
statement of operations for the year then ended, the statements of changes in
net assets for each of the two years in the period then ended, and the financial
highlights for each of the four years in the period then ended. These financial
statements and financial highlights are the responsibility of the Fund's
management. Our responsibility is to express an opinion on these financial
statements and financial highlights based on our audits. The financial
highlights for the period ended October 31, 1996 were audited by other auditors
whose report dated December 6, 1996 expressed an unqualified opinion on those
financial highlights.
We conducted our audits in accordance with auditing standards generally accepted
in the United States. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements and financial highlights. Our procedures included
confirmation of securities owned as of October 31, 2000, by correspondence with
the custodian and brokers. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Delaware U.S. Government Securities Fund at October 31, 2000, the results of its
operations for the year then ended, the changes in its net assets for each of
the two years in the period then ended, and its financial highlights for each of
the four years in the period then ended, in conformity with accounting
principles generally accepted in the United States.
/s/ Ernst & Young LLP
Philadelphia, Pennsylvania
December 8, 2000
16
<PAGE>
DELAWARE INVESTMENTS FAMILY OF FUNDS
------------------------------------
More information on any fund offered by Delaware Investments can be found in
each fund's current prospectus. Prospectuses for all funds offered by Delaware
Investments are available from your financial adviser. Please read the
prospectus carefully before you invest or send money.
{Graphic Omitted}
o Growth of Capital
o Technology and Innovation
Fund
o Select Growth Fund
o Trend Fund
o Growth Opportunities Fund*
o Small Cap Value Fund
o U.S. Growth Fund
o Tax-Efficient Equity Fund
o Social Awareness Fund
o Total Return
o Blue Chip Fund
o Devon Fund
o Growth and Income Fund
o Decatur Equity Income Fund
o REIT Fund
o Balanced Fund
o International and Global
o Emerging Markets Fund
o New Pacific Fund
o Overseas Equity Fund
o International Equity Fund
o Global Equity Fund
o Global Bond Fund
o Current Income
o Delchester Fund
o High-Yield
Opportunities Fund
o Strategic Income Fund
o Corporate Bond Fund
o Extended Duration
Bond Fund
o American Government
Bond Fund
o U.S. Government
Securities Fund
o Limited-Term
Government Fund
<PAGE>
o Tax-Exempt Income
o National High-Yield
Municipal Bond Fund
o Tax-Free USA Fund
o Tax-Free Insured Fund
o Tax-Free USA
Intermediate Fund
o State Tax-Free Funds**
o Stability of Principal
o Cash Reserve
o Tax-Free Money Fund
Asset Allocation
o Foundation Funds
Growth Portfolio
Balanced Portfolio
Income Portfolio
*Formerly known as DelCap Fund.
**Available for the following states: Arizona, California, Colorado, Florida,
Idaho, Iowa, Kansas, Minnesota, Missouri, Montana, North Dakota, New Jersey,
New Mexico, New York, Oregon, Pennsylvania and Wisconsin. Insured and
intermediate bond funds are available in selected states.
(C)Delaware Distributors, L.P.
<PAGE>
DELAWARE(SM)
INVESTMENTS
-----------
Philadelphia o London
For Shareholders
1.800.523.1918
For Securities Dealers
1.800.362.7500
For Financial Institutions
Representatives Only
1.800.659.2265
www.delawareinvestments.com
This annual report is for the information of Delaware U.S. Government Securities
Fund shareholders, but it may be used with prospective investors when preceded
or accompanied by a current prospectus for Delaware U.S. Government Securities
Fund and the Delaware Investments Performance Update for the most recently
completed calendar quarter. The prospectus sets forth details about charges,
expenses, investment objectives and operating policies of the Fund. You should
read the prospectus carefully before you invest. The figures in this report
represent past results which are not a guarantee of future results. The return
and principal value of an investment in the Fund will fluctuate so that shares,
when redeemed, may be worth more or less than their original cost.
--------------------------------------------------------------------------------
<PAGE>
BOARD OF TRUSTEES
Wayne A. Stork
Chairman
Delaware Investments Family of Funds
Philadelphia, PA
Walter P. Babich
Board Chairman
Citadel Constructors, Inc.
King of Prussia, PA
David K. Downes
President and Chief Executive Officer
Delaware Investments Family of Funds
Philadelphia, PA
John H. Durham
Private Investor
Horsham, PA
Anthony D. Knerr
Consultant, Anthony Knerr & Associates
New York, NY
Ann R. Leven
Former Treasurer, National Gallery of Art
Washington, DC
Thomas F. Madison
President and Chief Executive Officer
MLM Partners, Inc.
Minneapolis, MN
Charles E. Peck
Retired
Fredericksburg, VA
Janet L. Yeomans
Vice President and Treasurer
3M Corporation
St. Paul, MN
AFFILIATED OFFICERS
Charles E. Haldeman, Jr.
President and Chief Executive Officer
Delaware Management Holdings, Inc.
Philadelphia, PA
Richard J. Flannery
Executive Vice President
and General Counsel
Delaware Investments Family of Funds
Philadelphia, PA
Bruce D. Barton
President and Chief Executive Officer
Delaware Distributors, L.P.
Philadelphia, PA
Investment Manager
Delaware Management Company
Philadelphia, PA
International Affiliate
Delaware International Advisers Ltd.
London, England
Subadviser
Voyageur Asset Management, LLC
Minneapolis, MN
National Distributor
Delaware Distributors, L.P.
Philadelphia, PA
Shareholder Servicing, Dividend
Disbursing and Transfer Agent
Delaware Service Company, Inc.
Philadelphia, PA
2005 Market Street
Philadelphia, PA 19103-3682
(4066) Printed in the USA
AR-404 [10/00] PPL 12/00 (J6590)
