<PAGE>
May 6, 1996
Dear
- --------------------------
Shareholder:
- --------------------------
First, I welcome the more than 4,700 investors who have become members of the
Delaware Group family of mutual funds following shareholder approval to
restructure the Lincoln Advisor Funds on May 3, 1996.
As you know, each Fund's investment objective and policies remain
the same, and for all but one of the Funds, the portfolio manager has not
changed. For the U.S. Growth Fund, Lynch & Mayer, a Lincoln National Corp.
affiliate in New York City that also manages the Enterprise Fund, has replaced
Provident Investment Counsel as investment subadviser on the U.S. Growth Funds.
As you know, Delaware Management Co. has replaced Lincoln Investment Management
Inc. as the Funds' manager.
The six month period ended April 30, 1996, has been an important time
of transition for the Funds, and for the stock and bond markets as well. The
U.S. stock market performed well from late 1995 through mid-February 1996 amid a
slowdown in industrial production and a general expectation of lower interest
rates. However, as the harsh winter weather ebbed, economic growth revived.
Businesses began to hire more workers, and prices began to rise sharply
for staples such as gasoline and corn, leading bond market investors to fear
possible inflation in overall consumer prices. Such concern drove long-term
interest rates up to more than 7% and led to a decline in bond prices,
negatively affecting the performance of fixed-income investments.
Nevertheless, stock prices of many companies, especially those tied to the
fortunes of the economy, advanced in a volatile market. We believe the volatile
environment could persist through 1996, a year that may test the security
selection skills of portfolio managers.
The Standard & Poor's 500 Stock Index climbed +13.76% during the six
months ended April 30, while the Merrill Lynch Corporate-Government-Mortgage
Bond Index advanced only +0.49%. Both indexes are broad, unmanaged measures of
their respective markets.
We are pleased to report that international stock markets have
performed well in recent months, as Japan has emerged from a long economic slump
and selected countries in Europe benefited from lower interest rates. The Morgan
Stanley Europe Australia and Far East (EAFE) Index rose +13.38% for the six
months ended April 30, 1996.
As you read this report, you'll see what steps the Funds' managers took
to position each portfolio. Their actions reflect our belief that as we near the
21st Century the long-term outlook for financial markets both here and abroad is
bright.
We hope to merit your continued confidence and we strive to help you
meet the long-term investing goals you have identified with the help of your
financial adviser. Again, on behalf of Delaware Group, I welcome you to our
growing family of half-a-million shareholders.
Sincerely,
/s/ Wayne A. Stork
- -----------------------------------------------
Wayne A. Stork
CHAIRMAN, PRESIDENT AND CHIEF EXECUTIVE OFFICER
<PAGE>
DOMESTIC EQUITY FUNDS
Enterprise Fund
Managed by Kevin Ferguson and Edward Petner
at Lynch & Mayer
SEEKS TO MAXIMIZE CAPITAL APPRECIATION BY INVESTING IN MEDIUM-SIZE COMPANIES
WHICH HAVE A DOMINANT POSITION WITHIIN THEIR INDUSTRY, ARE UNDERVALUED OR HAVE
POTENTIAL FOR GROWTH IN EARNINGS.
Enterprise Fund achieved very dynamic results during the six months
ended April 30. We outperformed our peers, the overall stock market and the
unmanaged S&P 400 Mid-Cap Index, a benchmark representing mid-size stocks.
The Fund's strategy includes a constant search for companies that
exhibit what we believe are early indications of positive fundamental changes
such as:
* an acceleration of earnings growth;
* an improving industry environment;
* a restructuring of assets; and
* a financial turnaround.
During the six month period many of the technology, energy, healthcare
and retail stocks we selected were strong performers, helping the Fund generate
a total return of +19.40% (capital change plus income based on Class A net asset
value). That was some 550 basis points (5.50%) higher than the S&P 400, as shown
to the right.
Our focus in the energy sector is on companies, particularly those in
the oil service industry, that we believe are benefiting from higher oil prices
and from new exploration and drilling technology. In our opinion, the industry
is finally poised for growth after years of consolidation.
We believe the market will recognize the superior growth potential of
many medium-size companies compared to large companies. And, that consequently,
the stocks of medium-size companies have the potential to outperform the stocks
of large companies for the next several years.
===============================================================================
PORTFOLIO HIGHLIGHTS (APRIL 30, 1996)
Median Market Capitalization $2.0 billion
Number of Stocks 64
Average Stock
Price-to-Earnings Ratio 20.2*
Largest Holding -
Octel Communications Corp. 2.7%**
Top Sector - Technology 22%**
*Based on analysts' earnings estimates for 1996 as reported to First Call.
**Percent of Net Assets
TOTAL RETURN
For the Six Months Ended April 30, 1996
ENTERPRISE FUND A CLASS +19.40%
B CLASS +19.31%
C CLASS +19.08%
(formerly Lincoln Enterprise Portfolio)
STANDARD & POOR'S
MID-CAP 400 INDEX +13.89%
LIPPER MID-CAP FUND
AVERAGE (143 FUNDS) +16.41%
All performance quoted above is based on net asset value with distributions
reinvested without effect of sales charges. Performance for all classes of
Enterprise Fund can be found on page 7.
===============================================================================
U.S. GROWTH FUND
Managed by Anthony Segalas at Lynch & Mayer
(beginning May 6, 1996)
SEEKS TO MAXIMIZE CAPITAL APPRECIATION BY INVESTING IN COMPANIES WITH LOW
DIVIDEND YIELDS, STRONG BALANCE SHEETS AND HIGH EXPECTED EARNINGS GROWTH
RATES RELATIVE TO THEIR INDUSTRY.
During the six months ended April 30, U.S. Growth Fund was managed by
Provident Investment Counsel of California and generally continued a focus on
the same mix of growth stocks the Fund had at the start of fiscal 1996. The Fund
had significant holdings in the technology and financial services industries,
some of which faced difficulties as interest rates rose.
2
<PAGE>
===============================================================================
PORTFOLIO HIGHLIGHTS (APRIL 30, 1996)
Median Market Capitalization $6.0 billion
Number of Stocks 72
Average Stock
Price-to-Earnings Ratio 22.4*
Largest Holding -
First Data Corp. 4.2%**
Top Sector - Technology 23.6%**
* Based on analysts' earnings estimates for the next 12 months as reported to
First Call ** Percent of Net Assets
TOTAL RETURN
For the Six Months Ended April 30, 1996
U.S. GROWTH FUND A CLASS +4.51%
B CLASS +4.14%
C CLASS +4.12%
(formerly Lincoln U.S. Growth Portfolio)
STANDARD & POOR'S
500 INDEX +13.76%
LIPPER GROWTH FUND
AVERAGE (641 FUNDS) +13.12%
All performance quoted above is based on net asset value with distributions
reinvested without effect of sales charges. Performance for all classes of U.S.
Growth Fund can be found on page 7.
==============================================================================
U.S. Growth Fund generated a total return of +4.51% (capital change
plus income for A Class shares at net asset value) for the six months ended
April 30.
In the early months of calendar 1996, the stocks of large "growth"
companies did not perform as well as stocks of medium-size and smaller
companies. Although the Fund had substantial price gains in some large company
holdings such as MICROSOFT CORP., the widely known computer software company,
capital appreciation in many of the Fund's technology, finance and drug stock
selections lagged that of cyclical companies, i.e., those businesses whose
fortunes are tied to the performance of the overall U.S. economy.
In the coming months, the Fund expects, under Lynch & Mayer, to focus
on companies whose stocks fit the definition of "growth" stocks businesses whose
earnings and revenues have been growing more rapidly than corporate America as a
whole. Lynch & Mayer's philosophy is that the stocks of companies undergoing
positive fundamental change have substantial capital appreciation potential.
INTERNATIONAL EQUITY FUNDS
WORLD GROWTH FUND
Managed by Walter Scott & Partners, Ltd.
SEEKS TO MAXIMIZE TOTAL RETURN BY INVESTING IN AN INTERNATIONALLY DIVERSIFIED
PORTFOLIO OF EQUITIES.
World Growth Fund provided a total return of +9.16% (capital change
plus income based on Class A net asset value) for the six months ended April 30.
We were helped by our holdings in a resurgent Japan. However, gains there were
somewhat offset by the Fund's holdings in the German stock market, which we
believe will strengthen in the coming months.
Some 39% of the Fund's net assets were in Japanese equities, just about
paralleling the percentage of Japanese stocks in the Morgan Stanley Europe
Australia Far East (EAFE) Index.
COUNTRY ALLOCATION
APRIL 30, 1996
(CHART HERE)
Japan 38.0%
Pacific Rim 2.8%
Chile 2.3%
Germany 12.9%
France 10.9%
The Netherlands 7.4%
United Kingdom 5.0%
Europe 7.4%
U.S. 4.4%
Norway 5.2%
Other 4.5%
*Cash plus ADR shares of foreign companies
3
<PAGE>
============================================================================
TOTAL RETURN
For the Six Months Ended April 30, 1996
WORLD GROWTH FUND A CLASS +9.16%
B CLASS +8.82%
C CLASS +8.80%
(formerly Lincoln World Growth Portfolio)
MORGAN STANLEY EUROPE
AUSTRALIA FAR EAST INDEX +13.38%
LIPPER INTERNATIONAL FUND
AVERAGE (318 FUNDS) +11.95%
All performance quoted above is based on net asset value with distributions
reinvested without effect of sales charges. Performance for all classes of World
Growth Fund can be found on page 7.
===============================================================================
We believe the recession in Japan is over and that the industrial and consumer
sectors of the Japanese market are set for significant growth and profits.
About 13.4% of the Fund's net assets were in German stocks as of April
30, including ADIDAS, the athletic shoe maker. This company has been through a
restructuring and has retained a leading position in its core European market.
We believe the company has improved productivity by moving production from
Germany to Asia. Our German stock holdings were nearly twice that of the EAFE
Index as of April 30, reflecting our belief that lower interest rates will spur
German economic growth.
World Growth Fund focuses on established overseas markets, and
generally avoids more volatile emerging markets. We had only a small investment
position in Hong Kong, which has been strong of late. We are concerned about the
transfer of sovereignty from the United Kingdom to China in June 1997. There are
increasing doubts as to whether the Beijing government will allow a free market
economy in Hong Kong.
The Fund focuses on companies that we believe have the potential to
expand by more than 20% a year. We seek businesses that can generate high levels
of cash flow over long periods of time. More than one-third of the Fund's
holdings are companies that, in our opinion, stand to benefit as living
standards improve worldwide.
Investing in international stocks involves special risks which result
from differences in accounting, currency fluctuations and political and economic
systems that may be less stable than those in the U.S. In our opinion, these
risks are worth taking because of the potential for greater rewards.
NEW PACIFIC FUND
Managed by Peter Robson at John Govett & Co.
SEEKS LONG-TERM CAPITAL APPRECIATION BY INVESTING PRIMARILY IN COMPANIES THAT
ARE LOCATED IN OR HAVE THEIR PRINCIPAL BUSINESS IN THE PACIFIC BASIN.
Stock markets along the Pacific Rim rebounded sharply during the six
months ended April 30, helping the New Pacific Fund achieve a strong total
return of +15.84% (capital change plus income based on Class A net asset value).
In several countries, we were able to capitalize on political
uncertainty while in others, our stock selections benefited primarily from lower
interest rates and renewed economic growth.
COUNTRY ALLOCATION
APRIL 30, 1996
(CHART GOES HERE)
Japan 23.60%
Singapore 5.10%
Hong Kong 12.90%
Thailand 13.50%
Malaysia 11.10%
Taiwan 5.30%
South Korea 7.50%
Other 7.00%
U.S. 3.40%
Indonesia 3.90%
Australia 5.20%
*Cash plus ADR shares of foreign companies
4
<PAGE>
New Pacific Fund's investments in Taiwan and South Korea -- two
countries we said we would focus on in our 1995 annual report -- have
appreciated significantly. These stock markets ranked among the best performing
in Asia so far in 1996. During the past few months, we took advantage of the
fact that investors had temporarily pulled back from these markets amid a wide
ranging political bribery scandal in Korea and missile firings off Taiwan by the
People's Republic of China.
The Fund also did well in Malaysia, where inflation appears to be
ebbing, and in Japan, where the Bank of Japan has helped to stimulate growth.
The strategy of the Fund is to focus on major growth areas of the
Pacific Rim such as the emerging Asian economies of Indonesia, Thailand, India
and Malaysia. The Fund seeks to find investment "value" by analyzing the
earnings potential of a company relative to its current stock price and the
prices a company's stock has traded at in the past.
Investing in emerging markets involves special risks which result from
differences in the regulation of financial data and reporting, currency
fluctuations and political and economic systems that tend to be less stable than
those in the U.S. However, we believe the Pacific Rim region offers significant
potential rewards for long-term investors. In our view, the region's risks are
worth taking.
===============================================================================
TOTAL RETURN
For the Six Months Ended April 30, 1996
NEW PACIFIC FUND A CLASS +15.84%
B CLASS +15.43%
C CLASS +15.40%
(formerly Lincoln New Pacific Portfolio)
MORGAN STANLEY PACIFIC INDEX +18.15%
LIPPER PACIFIC REGION FUND
AVERAGE (39 FUNDS) +13.50%
All performance quoted above is based on net asset value with distributions
reinvested without effect of sales charges. Performance for all classes of New
Pacific Fund can be found on page 7.
===============================================================================
BOND FUNDS
CORPORATE INCOME FUND
Managed by Tim Policinski at
Lincoln Investment Management Inc.
SEEKS TO PROVIDE HIGH CURRENT INCOME CONSISTENT WITH PRESERVATION OF CAPITAL
BY INVESTING IN A DIVERSIFIED MIX OF INVESTMENT GRADE FIXED-INCOME SECURITIES
ISSUED BY U.S. CORPORATIONS.
Corporate Income Fund performed well during the fall of 1995, as the
market correctly anticipated that the Federal Reserve Board would lower its
interest rate target in December and January.
===============================================================================
PORTFOLIO HIGHLIGHTS (APRIL 30, 1996)
Average Effective Maturity 12.6 years
Average Effective Duration 6.0 years
Average Quality A+
30-Day Annualized Yield* 5.71%
* For Class A shares based on Securities and Exchange Commission guidelines. SEC
Yields for B and C classes were 5.33% and 5.32%, respectively.
TOTAL RETURN
For the Six Months Ended April 30, 1996
CORPORATE INCOME FUND A CLASS -0.79%
B CLASS -1.06%
C CLASS -1.07%
(formerly Lincoln Corporate Income Portfolio)
LEHMAN BROTHERS
CORPORATE BOND INDEX +0.08%
LIPPER CORPORATE
BBB BOND FUND AVERAGE
(92 FUNDS) -0.15%
All performance quoted above is based on net asset value with distributions
reinvested without effect of sales charges. Performance for all classes of
Corporate Income Fund can be found on page 8.
===============================================================================
Your Fund maintained a duration somewhat longer than the benchmark
Lehman Brothers Corporate Bond Index, allowing the Fund to benefit from
declining interest rates in the fall of 1995. Duration is the most common
measure of a bond's sensitivity to interest rates. It indicates the approximate
percentage of change in a bond's price given a 1% change in interest rates.
5
<PAGE>
Beginning in February, optimism about U.S. economic growth increased.
While a healthy economy augured well for the ability of corporations to pay bond
interest and repay principal, it also generated a fear of inflation that
prompted investors to demand a higher yield on fixed-income investments.
Bond prices declined sharply beginning in mid-February. To help
preserve your Fund's principal, we shortened our duration slightly in March and
April.
Your Fund's total return for the six months ended April 30, 1996, was
- -0.79% (capital change plus income for Class A shares at net asset value). In
our opinion, inflation concerns are excessive. Should U.S. interest rates resume
the long-term decline underway since the early 1980s, we believe your Fund will
be well-positioned.
FEDERAL BOND FUND
Managed by Tim Policinski at
Lincoln Investment Management Inc.
SEEKS TO MAXIMIZE CURRENT INCOME CONSISTENT WITH PRESERVATION OF CAPITAL BY
INVESTING PRIMARILY IN SECURITIES ISSUED BY THE U.S. GOVERNMENT, ITS AGENCIES
AND INSTRUMENTALITIES.
During the first three months of the 1996 fiscal year, Federal Bond
Fund performed well as the Federal Reserve Board lowered its interest rate
target by 50 basis points (0.50%) to 5.25% as of January 31.
The Fund kept its average duration higher than the benchmark Lehman
Brothers Government Bond Index, allowing the Fund to benefit from declining
interest rates in the fall of 1995. Duration is the most common measure of a
bond's sensitivity to interest rates. It indicates the approximate percentage of
change in a bond's price given a 1% change in interest rates.
In February 1996, the fortunes of the bond market suddenly and
unexpectedly turned. Optimism about continued interest rate cuts by the Fed
faded. Strong job growth in the U.S. and higher commodity prices for items such
as oil and corn generated a fear of higher inflation.
The Fund's slightly longer duration caused it to underperform the
unmanaged Lehman Brothers Index for the six month period, with a total return of
- -0.83% (capital change plus income for Class A shares at net asset value).
We believe that inflation concerns are overblown and note that interest
rates have begun to drop as of this writing. We believe your Fund's, positioning
will benefit shareholders should U.S. interest rates resume the long-term
decline underway since the early 1980s.
===============================================================================
PORTFOLIO HIGHLIGHTS (APRIL 30, 1996)
Average Effective Maturity 9.5 years
Average Effective Duration 5.2 years
Average Quality AAA
30-Day Annualized Yield* 5.06%
*For Class A shares based on Securities and Exchange Commission guidelines. SEC
Yields for B and C classes were 4.64% and 4.66%, respectively.
TOTAL RETURN
For the Six Months Ended April 30, 1996
FEDERAL BOND FUND A CLASS -0.83%
B CLASS -1.23%
C CLASS -1.20%
(formerly Lincoln Government Income Portfolio)
LEHMAN BROTHERS
GOVERNMENT BOND INDEX +0.03%
LIPPER GENERAL U.S.
GOVERNMENT BOND FUND
AVERAGE (181 FUNDS) -0.60%
All performance quoted above is based on net asset value with distributions
reinvested without effect of sales charges. Performance for all classes of
Federal Bond Fund can be found on page 8.
===============================================================================
6
<PAGE>
AVERAGE ANNUAL TOTAL RETURNS THROUGH APRIL 30, 1996
DOMESTIC EQUITY FUNDS
<TABLE>
<CAPTION>
ENTERPRISE FUND
<S> <C> <C>
ONE YEAR LIFETIME
CLASS A (since 12/3/93)
Excluding Sales Charge +35.48% +34.87%
Including Sales Charge +29.00% +28.44%
- -----------------------------------------------------------------------------------------------------------
CLASS B (since 4/14/94)
Excluding Sales Charge +35.00% +42.70%
Including Sales Charge +31.00% +39.70%
- -----------------------------------------------------------------------------------------------------------
CLASS C (since 5/10/94)
Excluding Sales Charge +34.63% +45.40%
Including Sales Charge +33.63% +45.40%
- -----------------------------------------------------------------------------------------------------------
U.S. GROWTH FUND
ONE YEAR LIFETIME
CLASS A (since 12/3/93)
Excluding Sales Charge +28.23% +30.03%
Including Sales Charge +22.09% +23.84%
- -----------------------------------------------------------------------------------------------------------
CLASS B (since 3/29/94)
Excluding Sales Charge +27.38% +28.40%
Including Sales Charge +23.38% +25.40%
- -----------------------------------------------------------------------------------------------------------
CLASS C (since 5/23/94)
Excluding Sales Charge +27.43% +33.80%
Including Sales Charge +26.43% +33.80%
- -----------------------------------------------------------------------------------------------------------
INTERNATIONAL EQUITY FUNDS
WORLD GROWTH FUND
ONE YEAR LIFETIME
CLASS A (since 12/3/93)
Excluding Sales Charge +16.57% +24.89%
Including Sales Charge +11.06% +18.95%
- -----------------------------------------------------------------------------------------------------------
CLASS B (since 3/29/94)
Excluding Sales Charge +15.96% +17.07%
Including Sales Charge +11.96% +14.07%
- -----------------------------------------------------------------------------------------------------------
CLASS C (since 5/10/94)
Excluding Sales Charge +15.82% +17.24%
Including Sales Charge +14.82% +17.24%
- -----------------------------------------------------------------------------------------------------------
NEW PACIFIC FUND
ONE YEAR LIFETIME
CLASS A (since 12/3/93)
Excluding Sales Charge +18.57% +4.12%
Including Sales Charge +12.99% -0.84%
- -----------------------------------------------------------------------------------------------------------
CLASS B (since 3/29/94)
Excluding Sales Charge +17.78% +7.10%
Including Sales Charge +13.78% +4.10%
- -----------------------------------------------------------------------------------------------------------
CLASS C (since 7/7/94)
Excluding Sales Charge +17.67% +4.99%
Including Sales Charge +16.67% +4.99%
</TABLE>
7
<PAGE>
AVERAGE ANNUAL TOTAL RETURNS THROUGH APRIL 30, 1996
BOND FUNDS
<TABLE>
<CAPTION>
CORPORATE INCOME FUND
<S> <C> <C>
ONE YEAR LIFETIME
CLASS A (since 12/3/93)
Excluding Sales Charge +8.72% +8.58%
Including Sales Charge +3.53% +3.41%
- -----------------------------------------------------------------------------------------------------------
CLASS B (since 7/27/94)
Excluding Sales Charge +8.05% +15.91%
Including Sales Charge +4.05% +11.91%
- -----------------------------------------------------------------------------------------------------------
CLASS C (since 7/7/94)
Excluding Sales Charge +8.03% +13.85%
Including Sales Charge +7.03% +13.85%
- -----------------------------------------------------------------------------------------------------------
FEDERAL BOND FUND
ONE YEAR LIFETIME
CLASS A (since 12/3/93)
Excluding Sales Charge +6.58% +7.26%
Including Sales Charge +1.49% +2.14%
- -----------------------------------------------------------------------------------------------------------
CLASS B (since 5/11/94)
Excluding Sales Charge +5.81% +10.44%
Including Sales Charge +1.81% +6.48%
- -----------------------------------------------------------------------------------------------------------
CLASS C (since 9/14/94)
Excluding Sales Charge +5.86% +9.48%
Including Sales Charge +4.86% +9.48%
</TABLE>
RESULTS INCLUDE GAINS AND REINVESTMENT OF DIVIDENDS AND CAPITAL, THE EFFECT OF
APPLICABLE SALES CHARGES AND FEES, WHICH DIFFER FOR EACH FUND CLASS. PAST
PERFORMANCE IS NOT A GUARANTEE OF FUTURE RESULTS. RETURN AND SHARE VALUE
FLUCTUATE SO THAT SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR
ORIGINAL COST. EXPENSE LIMITATIONS HAVE BEEN IN EFFECT FOR EACH FUND.
PERFORMANCE WOULD HAVE BEEN LOWER IF THE LIMITS HAD NOT BEEN IN EFFECT.
Class A shares returns reflect a 4.75% maximum front-end sales charge and a
0.35% distribution and service fee. Sales charges have varied over the life of
the Funds. The distribution and service fee was reduced to 0.30% on May 6, 1996.
Class B shares do not carry a front-end sales charge, but are subject to a 1%
distribution and service fee. Class B shares are subject to a deferred sales
charge of up to 4% if redeemed before the end of the sixth year. The schedule of
contingent deferred sales charges varies depending on whether shares were
acquired before or after May 3, 1996.
Class C shares have a 1% annual distribution and service fee. If shares are
redeemed within 12 months, a 1% contingent deferred sales charge applies.
All of the above Funds were initially offered as Lincoln Advisor Funds. Below
are the average annual returns (and aggregate returns for six-month period) as
of April 30, 1996, for each Fund's Institutional class (formerly called Class D
and initially offered on February 3, 1994). These shares are available without
sales or asset-based distribution charges only to certain eligible institutional
accounts.
SIX MONTHS ONE YEAR LIFETIME
Enterprise Fund +19.74% +35.44% +12.28%
U.S. Growth Fund +4.64% +28.74% +10.22%
World Growth Fund +8.00% +15.58% +7.84%
New Pacific Fund +16.08% +19.06% -2.63%
Corporate Income Fund -0.53% +9.10% +3.97%
Federal Bond Fund -3.72% +3.60% +1.86%
8
<PAGE>
Financial
- ------------------------------------------------------------------------------
Statements
- ------------------------------------------------------------------------------
DELAWARE GROUP ADVISER FUNDS, INC.
ENTERPRISE FUND
STATEMENT OF NET ASSETS
APRIL 30, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
Number Market
Top 10 holdings in boldface. of Shares Value
<S> <C> <C>
COMMON STOCK - 97.4%
Advertising - 1.8%
Omnicom Group ................................ 11,600 $ 503,150
----------
503,150
----------
Banking - 1.8%
First USA, Inc. .............................. 9,100 511,875
----------
511,875
----------
Capital Goods - 1.8%
Harnischfeger Industries ..................... 12,300 498,150
----------
498,150
----------
Chemicals - 1.9%
IMC Global Inc. .............................. 14,000 516,250
----------
516,250
----------
Commercial Services - 1.2%
*Career Horizons Inc. ........................ 9,600 338,400
----------
338,400
----------
Computers & Software - 9.9%
*BMC Software ................................ 8,300 505,263
*Cadence Design Systems, Inc ................. 11,550 603,488
*CBT Group ................................... 1,900 140,600
*Filenet Corporation ......................... 7,800 436,800
*Intergraph Corporation ...................... 9,496 120,481
*MEMC Electronic Materials ................... 7,400 369,075
*Parametric Technology Corporation ........... 13,800 555,450
----------
2,731,157
----------
Consumer Products & Services - 3.4%
Clorox Company ............................... 3,600 297,450
*Tommy Hilfiger Corporation .................. 14,400 655,200
----------
952,650
----------
Electronics - 4.8%
*Dynatech Corp. .............................. 10,800 278,100
*Itron, Inc. ................................. 7,400 434,750
*UCAR International, Inc. .................... 15,100 619,100
----------
1,331,950
----------
Energy - 2.6%
*Reading & Bates Corporation ................. 29,100 712,950
----------
712,950
----------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Number Market
of Shares Value
<S> <C> <C>
COMMON STOCK (Continued)
Entertainment - 1.4%
*Regal Cinemas .................................... 9,450 $ 385,088
---------
385,088
---------
Finance - 4.2%
Charter One Financial Inc. ........................ 14,500 505,688
Greentree Financial Corporation ................... 7,800 263,250
*Lexmark International Group, Inc ................. 18,500 400,063
---------
1,169,001
---------
Food & Beverage - 5.5%
Coca Cola Enterprises, Inc. ....................... 15,100 445,450
Dole Food Co. ..................................... 16,900 676,000
Pioneer Hi-Bred International ..................... 7,000 390,250
---------
1,511,700
---------
Health Care - 5.8%
Caremark International Inc. ....................... 20,700 571,838
*Healthsouth Rehabilitation ....................... 17,900 664,538
*Sola International ............................... 11,100 363,525
---------
1,599,901
---------
Insurance - 7.6%
Conseco, Inc. ..................................... 17,600 642,400
MGIC Investment Company ........................... 8,500 461,125
TIG Holdings, Inc. ................................ 17,500 531,563
Unum Corporation .................................. 4,900 291,550
Western National Corporation ...................... 9,800 177,625
---------
2,104,263
---------
Lodging & Restaurants - 2.1%
*Sun International Hotels LTD ..................... 7,300 312,075
*Trump Hotels & Casino Resorts .................... 8,700 281,656
---------
593,731
---------
Manufacturing - 1.8%
*Oakley, Inc. ..................................... 10,600 487,600
---------
487,600
---------
Medical Supplies - 1.3%
*VISX Inc. ........................................ 10,400 356,200
---------
356,200
---------
Metals & Mining - 1.4%
*Molten Metal Technology, Inc. .................... 1,200 38,700
Potash Corporation of Saskatchewan ................ 4,900 345,450
---------
384,150
---------
Office Equipment & Supplies - 3.2%
*Officemax, Inc. .................................. 13,400 351,750
*Scholastic Corporation ........................... 1,800 117,900
*Staples, Inc. .................................... 21,975 417,525
---------
887,175
---------
Oil & Gas - 10.8%
Arethusa (Off - Shore) Ltd. ....................... 11,000 495,000
*Benton Oil & Gas Company ......................... 17,500 306,250
</TABLE>
9
<PAGE>
Enterprise Fund
Statement of Net Assets (Continued)
<TABLE>
<CAPTION>
Number Market
of Shares Value
<S> <C> <C>
COMMON STOCK (Continued)
Oil & Gas (Continued)
*BJ Services Company .......................... 16,600 $ 637,025
*Ensco International, Inc ..................... 23,900 717,000
Oryx Energy Company ........................... 11,600 185,600
Triton Energy LTD ............................. 11,700 643,500
----------
2,984,375
----------
Pharmaceuticals - 6.0%
*Biochem Pharmaceuticals, Inc. ................ 16,000 728,000
*Biogen, Inc. ................................. 4,300 283,263
*Centocor, Inc. ............................... 9,300 372,000
Teva Pharmaceutical ........................... 6,100 273,738
----------
1,657,001
----------
Retail - 3.7%
Claire's Stores, Inc. ......................... 25,800 561,150
*Proffitt's Inc. .............................. 5,800 189,950
*Sunglass Hut, Inc. ........................... 4,000 117,000
*Zale Corp. ................................... 9,100 169,488
----------
1,037,588
----------
Technology - 4.1%
*Glenayre Technologies, Inc. .................. 8,400 390,600
*Liposome Company, Inc. ....................... 30,300 742,350
----------
1,132,950
----------
Telecommunications - 6.3%
*LCI International, Inc. ...................... 11,200 291,200
*MFS Communications Co Inc. ................... 8,200 284,438
*Octel Communication .......................... 15,100 675,725
*Paging Network, Inc. ......................... 21,000 493,500
----------
1,744,863
----------
Transportation - 3.0%
*Fritz Companies, Inc. ........................ 11,700 429,975
*Wisconsin Central Transport .................. 4,900 414,050
----------
844,025
Total Common Stock
(cost $19,946,189) .......................... 26,976,143
----------
<PAGE>
Principal
Amount
REPURCHASE AGREEMENT - 3.1%
With Prudential Securities 4.77% 5/1/96
(dated 4/30/96, collateralized by
a Federal National Mortgage Association
Security 7.00% due 4/01/26,
market value of $874,241) ................... $ 857,099 $ 857,099
------------
Total Repurchase Agreement
(cost $857,099) ............................ 857,099
------------
TOTAL MARKET VALUE OF SECURITIES - 100.5%
(Cost $20,803,288) .......................... 27,833,242
LIABILITIES NET OF RECEIVABLES
AND OTHER ASSETS - (0.5%) ................... (150,001)
------------
NET ASSETS APPLICABLE TO 2,042,543 SHARES
($.01 PAR VALUE OUTSTANDING) - 100.0% ....... $ 27,683,241
============
NET ASSET VALUE -
ENTERPRISE FUND A CLASS
($18,294,969 / 1,357,147 SHARES) ............ $13.48
======
NET ASSET VALUE -
ENTERPRISE FUND B CLASS
($2,186,972 / 153,246 SHARES) ............... $14.27
======
NET ASSET VALUE -
ENTERPRISE FUND C CLASS
($59,450 / 4,089 SHARES) .................... $14.54
======
NET ASSET VALUE -
ENTERPRISE FUND INSTITUTIONAL CLASS
($7,141,850 / 528,061 SHARES) ............... $13.52
======
COMPONENTS OF NET ASSETS AT APRIL 30, 1996:
Common stock $.01 par value,
70,000,000 shares authorized to the
Enterprise Fund with 20,000,000 shares
allocated to the Enterprise Fund A Class,
20,000,000 shares allocated to the
Enterprise Fund B Class, 15,000,000
shares allocated to the Enterprise Fund C
Class and 15,000,000 shares allocated to the
Enterprise Fund Institutional Class.......... $20,786,501
Accumulated undistributed income:
Distribution in excess of net investment
income...................................... (148,410)
Net realized gain on investments and
future contracts............................ 191,846
Net unrealized appreciation of investments
and futures contracts....................... 6,853,304
------------
Total net assets.............................. $27,683,241
============
</TABLE>
- ------------------
**Non-income producing security for the six months ended April 30, 1996.
See accompanying notes
10
<PAGE>
DELAWARE GROUP ADVISER FUNDS, INC.
U.S. GROWTH FUND
STATEMENT OF NET ASSETS
APRIL 30, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
Number Market
Top 10 holdings in boldface. of Shares Value
<S> <C> <C>
Common Stock - 91.8%
Airlines - 0.0%
*The Alpine Group ........................... 100 $ 456
----------
456
----------
Automotive - 2.2%
*Autozone, Inc. ............................. 9,300 339,450
General Motors, Class E ..................... 2,700 152,213
----------
491,663
----------
Banking - 1.4%
First USA, Inc. ............................. 5,600 315,000
----------
315,000
----------
Chemicals - 0.8%
Monsanto Co. ................................ 1,200 181,800
----------
181,800
----------
Computers & Software - 20.0%
*3 COM Corporation .......................... 5,500 253,688
Automatic Data Processing, Inc .............. 5,400 209,925
*Cabletron Systems, Inc. .................... 1,150 86,681
*Ceridian Corporation ....................... 3,100 148,025
*Cisco Systems, Inc. ........................ 10,100 523,938
*Computer Associates International, Inc. .... 9,050 664,044
*Computer Sciences Corporation .............. 4,900 362,600
Hewlett-Packard, Inc. ....................... 3,500 370,563
*Informix Corporation ....................... 3,300 87,038
*Microsoft Corporation ...................... 9,000 1,020,375
*Oracle Systems Corporation ................. 19,550 659,813
----------
4,386,690
----------
Consumer Products & Services - 4.5%
*CUC International, Inc. .................... 7,600 249,850
Estee Lauder Companies Class A .............. 1,200 43,950
Gillette Company ............................ 6,700 361,800
Service Corp International .................. 4,000 212,500
*Tommy Hilfiger Corporation ................. 2,800 127,400
----------
995,500
----------
Electronics - 1.6%
*Analog Devices, Inc. ....................... 6,850 176,388
Tyco Lab .................................... 4,600 177,675
----------
354,063
----------
Energy - 0.8%
Enron ....................................... 4,400 177,100
----------
177,100
----------
Entertainment - 2.5%
*Circus Circus Enterprises .................. 1,600 58,800
The Walt Disney Company ..................... 6,200 384,400
<PAGE>
Number Market
of Shares Value
COMMON STOCK (Continued)
Entertainment (Continued)
*Viacom Inc Class B ........................ 2,700 $ 110,700
---------
553,900
---------
Environmental Control - 0.8%
*Republic Industries, Inc. ................. 5,400 176,850
---------
176,850
---------
Federal Home Loan - 1.1%
Federal Home Loan Mortgage
Corporation ................................ 2,800 233,450
---------
233,450
---------
Federal National Mortgage Association - 3.8%
Federal National Mortgage Financial
Service .................................... 26,800 820,750
---------
820,750
---------
Finance - 7.1%
Finova Group, Inc. ......................... 500 27,750
First Data Corporation ..................... 12,144 922,944
MBNA Corporation ........................... 18,600 527,775
Mercury Financial Compay ................... 5,900 67,850
Synovus Financial .......................... 1,050 23,625
---------
1,569,944
---------
Health Care - 12.6%
*Boston Scientific Corporation ............. 3,800 163,875
Cardinal Health, Inc. ...................... 3,300 207,075
Columbia/HCA Healthcare Corp. .............. 2,300 122,188
Elan Corporation PLC ....................... 2,300 152,088
*Healthsouth Rehabilitation ................ 9,200 341,550
Medtronic, Inc. ............................ 10,300 547,188
*Oxford Health Plans ....................... 9,900 499,950
Shared Medical ............................. 1,000 68,500
*St. Jude Medical, Inc. .................... 6,250 228,125
*United Healthcare Corporation ............. 7,700 450,450
---------
2,780,989
---------
Insurance - 3.0%
American International Group ............... 3,750 342,656
MGIC Investment Company .................... 4,800 260,400
The PMI Group, Inc. ........................ 1,100 46,750
---------
649,806
---------
Lodging & Restaurants - 4.4%
*HFS, Inc. ................................. 10,200 524,025
McDonalds Corporation ...................... 3,200 153,200
*Mirage Resorts, Inc. ...................... 5,500 288,063
---------
965,288
---------
Manufacturing - 1.5%
*American Standard Companies ............... 2,600 73,450
Thermo Electron Corp. ...................... 4,300 264,988
---------
338,438
---------
</TABLE>
11
<PAGE>
U.S. Growth Fund
Statement of NetAssets (Continued)
<TABLE>
<CAPTION>
Number Market
of Shares Value
<S> <C> <C>
COMMON STOCK (Continued)
Office Equipment & Supplies - 3.3%
Alco Standard Corporation .................... 2,700 $ 156,263
Danka Business Systems PLC ................... 7,100 340,800
*Staples, Inc. ............................... 11,500 218,500
----------
715,563
----------
Pharmaceuticals - 8.2%
*Amgen, Inc. ................................. 6,900 396,750
Eli Lilly & Co. .............................. 3,000 177,000
Merck & Co, Inc. ............................. 6,400 387,200
Pfizer, Inc. ................................. 12,100 833,388
----------
1,794,338
----------
Radio & Broadcasting - 1.6%
British Sky Broadcasting ..................... 7,900 341,675
----------
341,675
----------
Retail - 1.1%
Home Depot ................................... 2,100 99,488
*Kohls Corporation ........................... 4,400 151,250
----------
250,738
----------
Services - 0.9%
Paychex, Inc. ................................ 2,900 196,475
----------
196,475
Technology - 0.3%
*Glenayre Technologies, Inc .................. 1,650 76,725
----------
76,725
----------
Telecommunications - 5.7%
*ADC Telecommunications, Inc. ................ 2,300 96,600
*Andrew Corporation .......................... 4,325 207,600
Ericsson (L M) Telephone ADR ................. 23,200 472,700
U. S. Robotics Corporation ................... 3,000 469,500
----------
1,246,400
----------
Transportation - 0.3%
*Fritz Companies, Inc. ....................... 1,800 66,150
----------
66,150
----------
Utilities - 2.3%
Frontier Corporation ......................... 10,600 335,218
*Worldcom, Inc. .............................. 3,600 169,200
----------
504,418
----------
Total Common Stock
(cost $14,574,374) ......................... 20,184,169
----------
Principal
Amount
Commercial Paper - 4.5%
Automotive - 4.5%
Ford Motor Credit Corporation
5.323% 06/06/96............................... $1,000,000 1,000,000
-------------
Total Commercial Paper
(cost $1,000,000)............................ 1,000,000
--------------
<PAGE>
Principal Market
Amount Value
REPURCHASE AGREEMENT - 3.6%
With Prudential Securities
4.77% 5/1/96 (dated 4/30/96,
collateralized by a Federal National
Mortgage Association Security 7.00% due
4/01/26, market value of $815,201)............ $799,217 $799,217
-----------
Total Repurchase Agreement
(cost $799,217)............................... 799,217
-----------
TOTAL MARKET VALUE OF SECURITIES - 99.9%
(Cost $16,373,591)............................ 21,983,386
RECEIVABLE AND OTHER ASSETS
NET OF LIABILITIES - 0.1%..................... 12,523
===========
NET ASSETS APPLICABLE TO 1,690,337 SHARES
($.01 PAR VALUE OUTSTANDING) - 100.0% ........ $21,995,909
NET ASSET VALUE -
U.S. GROWTH FUND A CLASS
($14,568,746 / 1,121,650 SHARES).............. $12.99
===========
NET ASSET VALUE -
U.S. GROWTH FUND B CLASS
($712,839 / 55,521 SHARES).................... $12.84
===========
NET ASSET VALUE -
U.S. GROWTH FUND C CLASS
($50,035 / 3,740 SHARES)...................... $13.38
===========
NET ASSET VALUE -
U.S. GROWTH FUND INSTITUTIONAL CLASS
($6,664,289 / 509,426 SHARES)................. $13.08
===========
COMPONENTS OF NET ASSETS AT APRIL 30, 1996:
Common stock $.01 par value, 70,000,000 shares
authorized to the U.S. Growth Fund with
20,000,000 shares allocated to the
U.S. Growth Fund A Class, 20,000,000
shares allocated to the U.S. Growth
Fund B Class, 15,000,000 shares allocated
to the U. S. Growth Fund C Class and
15,000,000 shares allocated to the
U.S. Growth Fund Institutional Class......... $17,277,212
Accumulated undistributed income:
Distribution in excess of net investment
income...................................... (92,181)
Net realized loss on investments............. (798,917)
Net unrealized appreciation of investments... 5,609,795
-----------
Total net assets.............................. $21,995,909
===========
</TABLE>
- ------------------
**Non-income producing security for the six months ended April 30, 1996.
See accompanying notes
12
<PAGE>
DELAWARE GROUP ADVISER FUNDS, INC.
WORLD GROWTH FUND
STATEMENT OF NET ASSETS
APRIL 30, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
Number Market
Top 10 holdings in boldface. of Shares Value
<S> <C> <C>
Common Stock - 91.9%
Building Supplies - 12.9%
Castorama Dubois Investissem ................. 2,246 $ 429,859
Cermex SA .................................... 3,544 246,280
Dyckerhoff AG Preferred Shares ............... 752 170,272
Heidelberger Zement German ................... 330 205,940
Higashi Nihon House .......................... 4,000 64,947
Nippon Kanzai ................................ 8,640 259,117
Redland, PLC ................................. 35,519 229,441
RMC Group, PLC ............................... 16,000 262,659
Westag and Getalit ........................... 750 181,337
---------
2,049,852
---------
Conglomerates - 3.9%
Sophus Berendsen, Class B .................... 2,600 319,051
Swire Pacific, Ltd., B ....................... 213,500 289,800
---------
608,851
---------
Construction - 1.2%
Kampa ........................................ 5,256 182,035
---------
182,035
---------
Consumer Products & Services - 10.7%
Adidas ....................................... 6,000 456,773
Brioche Pasquier ............................. 2,000 297,242
SEB Group .................................... 2,465 415,007
Secom Company, Ltd. .......................... 5,000 353,391
Shimano, Inc. ................................ 8,000 161,987
---------
1,684,400
---------
Electronics - 10.9%
Advantest Corporation ........................ 8,800 436,218
Fanuc Company ................................ 7,000 304,202
Kyocera Corporation .......................... 4,000 301,051
Rohm Company ................................. 6,000 381,089
Tokyo Electron, Ltd. ......................... 8,000 297,230
---------
1,719,790
---------
Entertainment - 2.0%
Polygram ..................................... 5,250 312,518
---------
312,518
---------
Farm Equipment - 1.3%
Kubota Corporation ........................... 30,000 208,883
---------
208,883
---------
Food & Beverage - 7.3%
Docks De France .............................. 1,800 341,364
Embotelladora Andina SA, ADR ................. 10,300 360,500
Koninklijke Ahold NV ......................... 9,338 457,772
---------
1,159,636
---------
<PAGE>
Number Market
of Shares Value
COMMON STOCK (Continued)
Furniture - 5.1%
AFG Arbonia - Forster Holdings ............... 200 $ 130,482
Daiwa Rakuda Industry Company, Ltd. .......... 10,000 157,593
Moebel Walther ............................... 6,250 247,092
Shimachu ..................................... 8,000 271,251
----------
806,418
----------
Insurance - 2.3%
Tokio Marine & Fire Insurance ................ 27,000 371,347
----------
371,347
----------
Manufacturing - 9.6%
Bien - Haus AG ............................... 600 145,854
Daifuku Company, Ltd. ........................ 24,000 378,223
Fuji Machine Manufacturing ................... 11,000 361,414
Futaba Industrial ............................ 18,000 355,874
Gea AG ....................................... 790 270,509
----------
1,511,874
----------
Oil & Gas - 5.2%
*Petroleum GEO-Services ...................... 12,000 385,415
Saga Petroleum, A Free ....................... 30,000 438,386
----------
823,801
----------
Pharmaceuticals - 2.1%
Sankyo Company, Ltd .......................... 13,900 337,211
----------
337,211
----------
Retail - 5.8%
Familymart ................................... 7,656 374,391
Ito-Yokado, Ltd. ............................. 6,000 353,582
Spar Handles ................................. 900 181,141
----------
909,114
----------
Telecommunications - 5.8%
Cable & Wireless ............................. 37,552 294,251
Ericsson (L M) Telephone
(ordinary shares) ........................... 17,600 356,609
Nippon Telegraph and
Telephone Corporation ........................ 35 271,108
----------
921,968
----------
Textiles - 2.3%
Wolford, AG .................................. 1,700 369,514
----------
369,514
----------
Transportation - 3.5%
IHC Caland N.V ............................... 10,000 392,763
Sembawang Shipyard ........................... 30,000 155,783
----------
548,546
----------
Total Common Stock
(cost $12,086,320) ......................... 14,525,758
----------
13
</TABLE>
<PAGE>
World Growth Fund
Statement of NetAssets (Continued)
Market
Value
<TABLE>
<CAPTION>
<S> <C> <C>
Currency Put Options - 1.6%
German Deutsche Mark
04/14/97..................................... $ 83,835
Japanese Yen
11/08/96..................................... 144,000
Japanese Yen
04/11/97..................................... 19,690
----------
Total Currency Put Options
(cost $289,125).............................. 247,525
-----------
Principal
Amount
REPURCHASE AGREEMENT - 2.8%
With Prudential Securities
4.77% 5/1/96 (dated 4/30/96,
collateralized by a Federal National
Mortgage Association Security 7.00%
due 4/01/26, market value
of $455,497)................................. $446,566 446,566
------------
Total Repurchase Agreement
(cost $446,566).............................. 446,566
-------------
TOTAL MARKET VALUE OF INVESTMENTS - 96.3%
(cost $12,822,011)........................... 15,219,849
RECEIVABLE AND OTHER ASSETS
NET OF LIABILITIES - 3.7%.................... 589,058
------------
NET ASSETS APPLICABLE TO 1,279,284 SHARES
($.01 PAR VALUE OUTSTANDING) - 100.0%........ $15,808,907
-------------
NET ASSET VALUE -
WORLD GROWTH FUND A CLASS
($14,598,322 / 1,175,223 SHARES)............. $12.42
=======
NET ASSET VALUE -
WORLD GROWTH FUND B CLASS
($1,155,723 / 99,376 SHARES)................. $11.63
=======
NET ASSET VALUE -
WORLD GROWTH FUND C CLASS
($49,432 / 4,245 SHARES)..................... $11.64
=======
NET ASSET VALUE -
WORLD GROWTH FUND INSTITUTIONAL CLASS
($5,430 / 440 SHARES)........................ $12.34
=======
<PAGE>
COMPONENTS OF NET ASSETS AT APRIL 30, 1996:
Common stock $.01 par value,
70,000,000 shares authorized to the
World Growth Fund with 20,000,000 shares
allocated to the World Growth Fund A Class,
20,000,000 shares allocated to the
World Growth Fund B Class, 15,000,000
shares allocated to the World Growth Fund
C Class and 15,000,000 shares allocated
to the World Growth Fund
Institutional Class.......................... $12,945,353
Accumulated undistributed income:
Distribution in excess of net investment
income...................................... (92,919)
Net realized gain on investments............. 577,721
Net unrealized appreciation of investments
and foreign currencies...................... 2,378,752
-----------
Total net assets.............................. $15,808,907
===========
</TABLE>
- ---------------------
*Non-income producing security for the six months ended April 30, 1996.
ADR - American Depository Receipt
See accompanying notes
14
<PAGE>
DELAWARE GROUP ADVISER FUNDS, INC.
NEW PACIFIC FUND
STATEMENT OF NET ASSETS
APRIL 30, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
Number Market
Top 10 holdings in boldface. of Shares Value
<S> <C> <C>
COMMON STOCK - 89.2%
Agriculture - 1.4%
IOI Corporation .................................. 120,000 $ 180,002
----------
180,002
----------
Airlines - 0.4%
Korean Air ....................................... 1,800 58,285
----------
58,285
----------
Automotive - 4.4%
Daikin Industries, Ltd. .......................... 10,000 110,793
Mitsubishi Motor Corp. ........................... 12,000 108,195
Perusahaan Otomobil Nasional ..................... 28,000 138,130
*PT Astra International-F ........................ 85,000 125,673
Toyota Motor Company ............................. 4,000 91,309
----------
574,100
----------
Banking - 8.0%
Cho Hung Bank .................................... 5,200 72,162
Far East Bank And Trust Co Ltd. .................. 1,880 68,605
First Bangkok City Bank, Ltd. .................... 24,000 42,069
First Bangkok City Bank .......................... 75,000 148,545
Guoco Group, Ltd. ................................ 28,000 139,358
*Korea Housing Bank .............................. 1,800 51,346
Panin Bank ....................................... 78,750 80,152
PT Bank Umum Nasional ............................ 75,000 84,369
Security Bank Corporation ........................ 62,000 156,362
Thai Military Bank, Foreign ...................... 506 2,445
*Thai Military Bank .............................. 49,494 199,980
----------
1,045,393
----------
Building Supplies - 3.1%
*Asia Cement ..................................... 3,740 78,540
Kurimoto ......................................... 10,000 109,838
Siam City Cement Company, Ltd. ................... 7,400 100,838
Sumitomo Osaka Cement Co. Ltd. ................... 21,000 111,117
----------
400,333
----------
Computers & Software - 0.5%
*Creative Technology, Ltd. ....................... 8,000 59,000
----------
59,000
----------
Conglomerates - 8.5%
*China Apollo Holdings, Ltd. ..................... 750,000 208,455
China Resources Enterprises ...................... 306,000 188,889
Ekran Berhad ..................................... 47,000 185,678
Great Eagle Holdings, Ltd ........................ 48,000 137,755
*Henderson China Holdings, Ltd. .................. 80 222
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Number Market
of Shares Value
COMMON STOCK (Continued)
Conglomerates (Continued)
<S> <C> <C>
Jardine Matheson Holdings ........................ 20,000 $ 160,000
Jardine Strategic Holdings, Ltd. ................. 43,375 142,270
Loxely Company, Ltd. ............................. 3,000 42,544
Multi-Purpose Holdings ........................... 27,000 46,998
----------
1,112,811
Construction - 4.4%
Citra Marga Nusaphala Per PT ..................... 94,000 137,969
*Hyundai Engineering & Construction .............. 3,012 152,092
Kandenko ......................................... 11,000 150,239
Taisei Corporation ............................... 17,000 131,519
----------
571,819
Consumer Products & Services - 5.2%
Acma, Ltd ........................................ 28,800 86,044
Asatsu Inc ....................................... 3,000 131,805
Cochlear, Limited ................................ 90,000 219,224
*Singer Thailand Ltd (local shares) .............. 21,200 162,919
Sony Corporation ................................. 1,300 84,432
684,424
Electronics - 6.0%
Electricity Generating Company ................... 63,000 197,152
*Guangdong Electric Power, B ..................... 210,000 120,128
Kyocera Corporation .............................. 1,000 75,263
K.R. Precision Public Co. Ltd. - Foreign ......... 4,000 21,708
LG Electronics ................................... 408 4,100
Matsushita Electrical Industries ................. 7,000 123,687
Samsung Display Devices, Ltd. .................... 700 71,507
*Samsung Electronics 144A, GDR ................... 170 12,899
*Samsung Electronics, GDR ........................ 694 28,801
*Samsung Electronics, Preferred Stock ............ 322 26,232
*Samsung Electronics, GDR ........................ 187 25,470
Shanghai Shangling Electric
Apparatus Co. .................................. 129,000 83,592
----------
790,539
Entertainment - 0.9%
Magnum Corporation ............................... 65,000 112,622
----------
112,622
Finance - 9.1%
*Chevalier International ......................... 720,000 129,378
Daewoo Securities Company ........................ 22,800 74,706
Dhana Siam Finance ............................... 35,000 246,785
*Intiplus Berhad ................................. 124,000 135,772
Malaysian Industrial Development Finance ......... 92,000 153,499
*National Finance ................................ 47,000 215,968
Nomura Securities Co LTD ......................... 5,000 108,883
Rashid Hussein Berhad ............................ 38,000 134,119
----------
1,199,110
---------
</TABLE>
15
<PAGE>
New Pacific Fund
Statement of Net Assets (Continued)
<TABLE>
<CAPTION>
Number Market
of Shares Value
<S> <C> <C>
COMMON STOCK (Continued)
Food & Beverage - 2.3%
*Chosun Brewery Company .......................... 2,668 $ 91,876
Kirin Brewery Co. LTD ............................ 8,000 103,916
National Foods LTD ............................... 88,300 111,705
--------
307,497
--------
Health Care - 0.5%
Shimadzo Corporation ............................. 9,000 61,461
--------
61,461
--------
Industrial - 1.3%
*New World Infrastructure, Ltd. .................. 79,080 175,836
--------
175,836
--------
Insurance - 0.6%
Samsung Fire & Marine Ins ........................ 110 72,226
--------
72,226
--------
Lodging & Restaurants - 0.6%
AAPC, Ltd. ....................................... 119,476 79,797
--------
79,797
--------
Manufacturing - 2.2%
CESC Limited, GDR ................................ 18,000 61,200
NIFCO ............................................ 8,800 123,553
Takuma Co ........................................ 7,000 107,641
--------
292,394
--------
Metals & Mining - 4.9%
*Mitsui Mining Co Ltd. ........................... 18,000 100,229
*Odin Mining Investment Company .................. 300,000 75,432
Pasminco Limited ................................. 63,750 93,170
Pt Supreme Cable Manufacturing ................... 26,500 30,094
Samchullly Co. ................................... 1,485 137,385
*Steel Authority India ........................... 4,000 61,740
Sumitomo Metal Industries ........................ 34,000 109,112
*Tung Ho Steel 144A, GDR ......................... 2,424 29,694
--------
636,856
--------
Natural Resources - 2.0%
Broken Hill Proprietary .......................... 11,000 169,321
Southern Petro Chemical, GDR ..................... 7,000 54,950
Southern Petrochemical ........................... 4,000 31,400
--------
255,671
--------
Photography - 0.5%
China-Hong Kong Photo Products ................... 130,000 64,282
--------
64,282
--------
Plastics - 0.5%
Thai Modern Plastic Industry ..................... 91,900 62,797
--------
62,797
--------
<PAGE>
Number Market
of Shares Value
COMMON STOCK (Continued)
Printing & Paper - 1.3%
Oriental Press Group, Ltd. ......................... 310,000 $144,270
Picop Resources .................................... 125,000 31,525
--------
175,795
--------
Radio & Broadcasting - 1.7%
*International Broadcasting
Corporation, Ltd. ................................ 41,300 85,890
Japan Radio ........................................ 9,000 139,255
--------
225,145
--------
Real Estate - 4.2%
Malaysian Resources Corporation .................... 105,000 269,522
Mitsubishi Estate Company, Ltd. .................... 9,000 126,361
United Overseas Land, Ltd. ......................... 74,000 154,232
--------
550,115
--------
Retail - 2.7%
Autobacs Seven ..................................... 1,000 95,033
Chaifa Holdings, Ltd. .............................. 500,000 138,970
Itochu Corporation ................................. 15,000 114,183
Shinsegae Department Store ......................... 4 326
--------
348,512
--------
Storage - 0.9%
Sumitomo Warehouse ................................. 16,000 118,128
--------
118,128
--------
Technology - 0.5%
*Technology Resources .............................. 19,000 64,774
--------
64,774
--------
Telecommunications - 4.8%
Hong Kong Telecommunications ....................... 80,000 152,543
Mitsubishi Cable Industries ........................ 17,000 108,462
Nippon Telegraph and
Telephone Corporation ............................. 11 87,374
NTT Data Communications
Systems Corporation ............................... 300 104,871
*Pakistan Telecommunications, GDR .................. 941 94,100
United Communication Industries .................... 5,500 75,383
--------
622,733
--------
Textiles - 1.4%
Saha Union Corporation, Ltd. ....................... 120,000 154,489
Westmont Industries Berhad ......................... 16,000 34,653
--------
189,142
--------
Transportation - 1.5%
*Continental Mariner Investment .................... 350,000 59,725
Sembawang Shipyard ................................. 25,000 129,819
--------
189,544
Utilities - 0.8%
Korea Electric Power Corporation ................... 2,600 109,913
--------
109,913
--------
</TABLE>
16
<PAGE>
<TABLE>
<CAPTION>
New Pacific Fund
Statement of NetAssets (Continued)
Number Market
of Shares Value
<S> <C> <C>
COMMON STOCK (Continued)
Miscellaneous - 2.1%
Hitachizosen Corporation ......................... 19,000 $104,164
*Larsen & Toubro LTD GDR (New) ................... 3,250 61,344
Nippon Zeon Company, Ltd. ........................ 17,000 108,462
----------
273,970
----------
Total Common Stock
(cost $11,116,294)........................... 11,665,026
----------
Principal
Amount
CONVERTIBLE BONDS - 2.8%
Computers & Software - 0.2%
Acer Inc
4.00% 06/10/01 .................................... $ 10,000 26,000
--------
26,000
--------
Electronics - 0.4%
United Micro Electronics
1.25% 06/08/04 .................................... 38,000 46,740
--------
46,740
--------
Finance - 0.9%
MBL International Finance
3.00% 11/30/02 ................................... 100,000 116,000
--------
116,000
--------
Food & Beverage - 0.9%
President Enterprises
0.00% 07/22/01 ................................... 80,000 113,200
--------
113,200
--------
Transportation - 0.4%
Yang Ming Marine
2.00% 10/06/01 ................................... 49,000 57,918
--------
57,918
--------
Total Convertible Bonds
(cost $312,289) .................................. 359,858
--------
<PAGE>
Warrants/ Market
Rights Value
WARRANTS & RIGHTS - 0.7%
Daewoo Corporation, Warrants,
11/08/96 .......................................... 11 $ 963
Fujitsu, Ltd., Warrants
12/06/00 ......................................... 15 9,375
Jardine Strategic Holdings, Ltd., Warrants,
05/02/98 ......................................... 6,375 2,423
Nankai Electric Railway Co. Warrants,
12/02/97 ......................................... 25 7,813
Optec-Daiichi Warrants,
02/08/00 ......................................... 20 16,750
PT Bank Umum Nasional Rights ....................... 75,000 52,230
Samchully Rights ................................... 94 4,156
-------
Total Warrants & Rights
(cost $45,769) ................................... 93,710
-------
Number
of Shares
INVESTMENT COMPANIES - 4.5%
*China North Industries Investment, Ltd. ........... 125,000 83,438
*R.O.C. Taiwan Fund ................................ 6,300 67,725
*Taipei Fund B (new) .............................. 2,400 194,400
*Taipei Fund-UTS, Class B .......................... 20 162,000
*Taiwan Fund Inc. .................................. 3,500 80,938
-------
Total Investment Companies
(cost $640,638) .................................. 588,501
-------
Principal
Amount
REPURCHASE AGREEMENT - 1.3%
With Prudential Securities
4.77% 5/1/96 (dated 4/30/96,
collateralized by a Federal National
Mortgage Association Security 7.00%
due 4/01/26, market value
of $170,465)....................................... $ 167,122 $167,122
-----------
Total Repurchase Agreement
(cost $167,122).................................... 167,122
-----------
</TABLE>
17
<PAGE>
<TABLE>
<CAPTION>
<S> <C>
New Pacific Fund
Statement of NetAssets (Continued)
TOTAL MARKET VALUE OF SECURITIES - 98.5%
(COST $12,282,112...................................... $12,874,217
RECEIVABLES AND OTHER ASSETS
NET OF LIABILITIES - 1.5%.............................. 192,315
-----------
NET ASSETS APPLICABLE TO 1,295,098
SHARES ($.01 PAR VALUE OUTSTANDING) - 100.0%........... $13,066,532
===========
NET ASSET VALUE -
NEW PACIFIC FUND A CLASS
($12,461,231 / 1,236,770 SHARES)....................... $10.08
======
NET ASSET VALUE -
NEW PACIFIC FUND B CLASS
($580,338 / 55,876 SHARES)............................. $10.39
======
NET ASSET VALUE -
NEW PACIFIC FUND C CLASS
($19,273 / 1,893 SHARES)............................... $10.18
======
NET ASSET VALUE -
NEW PACIFIC FUND INSTITUTIONAL CLASS
($5,690 / 559 SHARES).................................. $10.18
======
COMPONENTS OF NET ASSETS AT APRIL 30, 1996:
Common stock $.01 par value,
70,000,000 shares authorized to the
New Pacific Fund with 20,000,000 shares
allocated to the New Pacific Fund A Class,
20,000,000 shares allocated to the
New Pacific Fund B Class, 15,000,000 shares
allocated to the New Pacific Fund C
Class and 15,000,000 shares
allocated to the New Pacific Fund
Institutional Class.................................... $12,859,408
Accumulated undistributed income:
Distribution in excess of net investment income....... (73,338)
Net realized loss on investments...................... (247,415)
Net unrealized appreciation of investments............ 527,877
-----------
Total net assets........................................ $13,066,532
===========
</TABLE>
- --------------------
*Non-income producing security for the six months ended April 30, 1996.
GDR Global Depository Receipt
144A Securities exempt from registration under Rule 144A of the
Securities Act of 1933. These securities may be resold in transactions
exempt from registration, normally to qualified institutional buyers.
See accompanying notes
18
<PAGE>
DELAWARE GROUP ADVISER FUNDS, INC
CORPORATE INCOME FUND
STATEMENT OF NET ASSETS
APRIL 30, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
Principal Market
Amount Value
<S> <C> <C>
CORPORATE BONDS - 78.4%
Airlines - 4.7%
Delta Airlines
8.25% 12/27/07 .................................. $ 250,000 $ 270,008
United Airlines
9.21% 01/21/17 ................................. 450,000 475,331
----------
745,339
----------
Automotive - 4.9%
Chrysler Finance
9.50% 12/15/99 ................................. 400,000 434,171
Ford Motor Credit
7.25% 05/15/99 .................................. 340,000 345,755
----------
779,926
----------
Banking - 7.2%
Chase Manhattan
6.50% 01/15/09 .................................. 250,000 230,289
First Bank Systems
6.875% 09/15/07 ................................. 250,000 239,896
First Tennessee National
6.75% 11/15/05 .................................. 200,000 190,676
NationsBank
6.625% 01/15/98 ................................ 220,000 220,925
Southtrust Bank Birmingham
7.69% 05/15/25 .................................. 250,000 260,717
----------
1,142,503
Building Supplies - 2.6%
Georgia Pacific
9.125% 07/01/22 ................................. 400,000 408,222
----------
408,222
----------
Chemicals - 1.1%
Dow Capital
9.00% 05/15/10 .................................. 155,000 173,807
----------
173,807
----------
Consumer Products & Services - 3.2%
Federal Express
7.96% 03/28/17 .................................. 250,000 246,438
Service Corporation International
8.375% 12/15/04 ................................ 250,000 267,216
----------
513,654
----------
Entertainment - 0.6%
Viacom International
8.75% 05/15/01 .................................. 100,000 101,500
----------
101,500
----------
<PAGE>
Principal Market
Amount Value
CORPORATE BONDS (Continued)
Farm Equipment - 0.7%
John Deere Credit
8.625% 08/01/19 ................................. $ 100,000 $ 107,753
----------
107,753
----------
Finance - 9.6%
American Express Company
8.50% 08/15/01 ................................. 200,000 214,507
First Security
7.00% 07/15/05 ................................. 250,000 242,530
Heller Financial
5.625% 03/15/00 ................................ 100,000 95,835
International Lease Finance
8.25% 01/15/00 ................................. 250,000 261,232
Lehman Brothers Holding Company
8.875% 03/01/02 ................................ 300,000 322,261
Smith Barney Holdings
7.875% 10/01/99 ................................ 100,000 103,572
Tenneco Credit
9.625% 08/15/01 ................................ 250,000 276,398
----------
1,516,335
----------
Food & Beverage - 3.3%
Conagra
9.875% 11/15/05 ................................ 250,000 288,974
Nabisco
7.55% 06/15/15 ................................. 250,000 236,770
----------
525,744
----------
Industrial - 4.0%
Archer Daniels
8.875% 04/15/11 ................................ 250,000 290,343
Inco Ltd
9.60% 06/15/22 ................................. 100,000 107,377
ITT
6.25% 11/15/00 ................................. 250,000 242,859
----------
640,579
----------
Insurance - 1.8%
Transamerica Finance
6.80% 03/15/99 .................................. 150,000 150,831
Travelers
8.625% 02/01/07 ................................. 120,000 130,299
----------
281,130
----------
Manufacturing - 1.6%
Cyprus Amax Minerals Company
7.375% 05/15/07 ................................. 250,000 245,714
----------
245,714
----------
</TABLE>
19
<PAGE>
Corporate Income Fund
Statement of NetAssets (Continued)
<TABLE>
<CAPTION>
Principal Market
Amount Value
<S> <C> <C>
CORPORATE BONDS (Continued)
Metals & Mining - 2.0%
Newmont Gold Company
8.910% 01/05/09 ..................................... $100,000 $106,673
Noranda
8.125% 06/15/04 ..................................... 200,000 206,666
--------
313,339
--------
Oil & Gas - 4.5%
Pennzoil Company
10.125% 11/15/09 ................................... 290,000 340,237
Phillips Petroleum
9.180% 09/15/21 .................................... 250,000 269,215
Texas Gas Transmission
8.625% 04/01/04 ..................................... 100,000 107,889
--------
717,341
--------
Retail - 6.1%
Dayton Hudson
10.00% 01/01/11 ..................................... 250,000 297,184
Federated Department Stores
10.00% 02/15/01 ..................................... 100,000 106,250
Sears Roebuck & Company
9.05% 02/06/12 ..................................... 500,000 562,965
--------
966,399
--------
Telecommunications - 5.3%
AT&T Capital
7.47% 05/11/05 ..................................... 250,000 252,592
Cable & Wireless PLC
6.50% 12/16/03 ..................................... 100,000 96,313
GTE
9.375% 12/01/00 .................................... 100,000 109,579
GTE Hawaii
7.00% 02/01/06 ..................................... 400,000 387,701
--------
846,185
--------
Transportation - 1.5%
Burlington Northern Railroad Company
6.94% 01/02/14 ..................................... 250,000 240,290
--------
240,290
--------
Utilities - 13.7%
General Electric Capital
8.75% 05/21/07 ..................................... 400,000 446,348
Great Lakes Power
9.00% 08/01/04 ..................................... 100,000 107,132
Long Island Lighting Company
9.625% 07/01/24 ..................................... 200,000 202,810
Old Dominion Electric
8.76% 12/01/22 ..................................... 400,000 431,150
<PAGE>
Principal Market
Amount Value
CORPORATE BONDS (Continued)
Utilities (Continued)
Pennsylvania Power & Light
7.70% 10/01/09 ..................................... $ 200,000 $ 209,368
Texas Utilities
7.375% 11/01/99 .................................... 450,000 457,380
Utilicorp United
8.45% 11/15/99 ..................................... 100,000 104,325
Virginia Electric & Power Company
6.00% 08/01/02 ..................................... 200,000 189,658
-----------
2,148,171
-----------
Total Corporate Bonds
(cost $12,373,535) ................................. 12,413,931
-----------
CORPORATE COLLATERALIZED MORTGAGE
OBLIGATIONS - 1.7%
Airlines - 1.7%
Northwest Airlines Trust
10.23% 06/21/14 ................................... 243,846 268,466
-----------
Total Corporate Collateralized Mortgage
Obligations (cost $287,091) ....................... 268,466
-----------
AGENCY OBLIGATIONS - 9.3%
FNMA Principal Strip
0.00% 04/12/06 .................................... 600,000 478,554
FNMA
6.66% 12/01/05 .................................... 299,103 285,269
FNMA
7.00% 10/01/25 .................................... 491,561 473,889
FNMA Multi-family Mortgage
7.15% 10/01/15 .................................... 247,286 241,571
-----------
Total Agency Obligations
(cost $1,515,356) .................................. 1,479,283
-----------
U.S. TREASURY OBLIGATIONS - 4.4%
U.S Treasury Strips
0.00% 05/15/17 .................................... 150,000 33,121
U.S. Treasury Strips
0.00% 05/15/03 .................................... 1,000,000 631,430
U.S. Treasury Notes
5.375% 11/30/97 ................................... 25,000 24,781
-----------
Total U.S. Treasury Obligations
(cost $700,865) .................................... 689,332
-----------
</TABLE>
20
<PAGE>
Corporate Income Fund
Statement of NetAssets (Continued)
<TABLE>
<CAPTION>
Principal Market
Amount Value
<S> <C> <C>
REPURCHASE AGREEMENT - 3.8%
With Prudential Securities
4.77% 5/1/96 (dated
4/30/96 collateralized by a Federal
National Mortgage Association Security
7.00% due 4/01/26,
market value of $609,595)............................ $597,642 $ 597,642
----------
Total Repurchase Agreement
(cost $597,642).................................................. 597,642
----------
TOTAL MARKET VALUE OF SECURITIES - 97.6%
(cost $15,474,489)............................................... 15,448,654
RECEIVABLES AND OTHER ASSETS
NET OF LIABILITIES - 2.4%........................................ 379,623
----------
NET ASSETS APPLICABLE TO 1,692,705 SHARES
($.01 PAR VALUE OUTSTANDING) - 100.0%............................ $15,828,277
===========
NET ASSET VALUE -
CORPORATE INCOME FUND A CLASS
($11,423,731 / 1,214,680 SHARES)................................. $ 9.40
======
NET ASSET VALUE -
CORPORATE INCOME FUND B CLASS
($387,945 / 38,445 SHARES)....................................... $10.09
======
NET ASSET VALUE -
CORPORATE INCOME FUND C CLASS
($4,228 / 419 SHARES)............................................ $10.09
======
NET ASSET VALUE -
CORPORATE INCOME FUND INSTITUTIONAL CLASS
($4,012,373 / 439,161 SHARES).................................... $ 9.14
======
<PAGE>
COMPONENTS OF NET ASSETS AT APRIL 30, 1996:
Common stock $.01 par value, 70,000,000 shares
authorized to the Corporate Income Fund with
20,000,000 shares allocated to the
Corporate Income Fund A Class, 20,000,000
shares allocated to the Corporate
Income Fund B Class 15,000,000 shares
allocated to the Corporate Income Fund C
Class and 15,000,000 shares allocated to
the Corporate Income Fund
Institutional Class.................................... $16,384,591
Accumulated undistributed:
Distribution in excess of net investment income....... (117)
Net realized loss on investments...................... (530,362)
Net unrealized depreciation of investments............ (25,835)
-----------
Total net assets........................................ $15,828,277
===========
</TABLE>
See accompanying notes
21
<PAGE>
DELAWARE GROUP ADVISER FUNDS, INC.
FEDERAL BOND FUND
STATEMENT OF NET ASSETS
APRIL 30, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
Principal Market
Amount Value
<S> <C> <C>
U.S. TREASURY OBLIGATIONS - 62.0%
U.S Treasury Strips
0.00% 05/15/17 ................................ $ 275,000 $ 60,723
U.S. Treasury Bond
6.50% 08/15/05 ............................... 1,500,000 1,479,375
U.S. Treasury Strips
0.00% 05/15/03 ................................ 1,500,000 946,830
U.S. Treasury Notes
7.50% 05/15/02 ................................ 2,200,000 2,310,000
U.S. Treasury Notes
5.375% 11/30/97 ............................... 50,000 49,547
U.S. Treasury Notes
5.125% 11/30/98 ............................... 650,000 633,952
U.S. Treasury Notes
6.50% 04/30/99 ................................ 500,000 504,058
U.S. Treasury Notes
6.875% 08/31/99 ............................... 250,000 254,298
Tennessee Valley Authority Principal Strips
0.00% 11/01/00 ............................... 1,000,000 739,130
----------
Total U.S. Treasury Obligations
(cost $7,191,597) ............................ 6,977,913
----------
AGENCY OBLIGATIONS - 27.8%
FNMA Principal Strips
0.00% 12/20/01 ............................... 500,000 477,580
FNMA Principal Strips
0.00% 04/12/06 ............................... 400,000 317,624
FNMA 6.00% 03/01/09 ........................... 863,805 823,854
FNMA 7.00% 10/01/25 ........................... 491,561 473,894
FNMA Multi-Family Mortgage
7.15% 10/01/15 ................................ 247,286 241,571
FHLMC
7.30% 12/01/12 ................................ 297,304 292,845
FHLMC
7.50% 11/15/23 ............................... 500,000 508,750
----------
Total Agency Obligations
(cost $3,196,872) ............................ 3,136,118
----------
CORPORATE BONDS - 7.9%
Finance - 3.8%
Associates Corp. of North America
9.125% 04/01/00 .............................. 400,000 432,356
----------
432,356
----------
<PAGE>
Principal Market
Amount Value
Corporate Bonds (Continued)
Telecommunications 4.1%
Bellsouth Telecommmunications 6.125%
09/23/08 ...................................... $ 500,000 $ 457,813
-----------
457,813
-----------
Total Corporate Bonds
(cost $948,573) ............................... 890,169
-----------
REPURCHASE AGREEMENT - 0.9%
With Prudential Securities 4.77% 5/1/96
(dated 4/30/96 collateralized by a Federal
National Mortgage Association Security 7.00%
due 4/01/26, market value
of $103,859) ................................. 101,823 101,823
-----------
Total Repurchase Agreement
(cost $101,823) .............................. 101,823
-----------
TOTAL MARKET VALUE OF SECURITIES - 98.6%
(COST $11,438,865) ........................... 11,106,023
RECEIVABLES AND OTHER ASSETS
NET OF LIABILITIES - 1.4% .................... 158,686
-----------
NET ASSETS APPLICABLE TO 1,186,997 SHARES
($.01 PAR VALUE OUTSTANDING) - 100.0% ........ $11,264,709
===========
NET ASSET VALUE -
FEDERAL BOND FUND A CLASS
($10,922,360 / 1,152,465 SHARES) ............. $ 9.48
===========
NET ASSET VALUE -
FEDERAL BOND FUND B CLASS
($319,574 / 32,210 SHARES) ................... $ 9.92
===========
NET ASSET VALUE -
FEDERAL BOND FUND C CLASS
($18,047 / 1,796 SHARES) ..................... $ 10.05
===========
NET ASSET VALUE -
FEDERAL BOND FUND INSTITUTIONAL CLASS
($4,728 / 526 SHARES) ........................ $ 8.99
===========
COMPONENTS OF NET ASSETS AT APRIL 30, 1996:
Common stock $.01 par value, 70,000,000
shares authorized to the Federal Bond Fund
with 20,000,000 shares allocated to
the Federal Bond Fund A Class, 20,000,000
shares allocated to the Federal Bond
Fund B Class, 15,000,000 shares allocated
to the Federal Bond Fund C Class and
15,000,000 shares allocated to the
Federal Bond Fund
Institutional Class........................... $11,762,458
Accumulated undistributed:
Net investment income......................... 3,216
Net realized loss on investments.............. (168,123)
Net unrealized depreciation of investments.... (332,842)
-----------
Total net assets................................ $11,264,709
===========
</TABLE>
See accompanying notes
22
<PAGE>
DELAWARE GROUP ADVISER FUNDS, INC.
FEDERAL BOND FUND
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED APRIL 30, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
World New Corporate Federal
Enterprise U.S. Growth Growth Pacific Income Bond
Fund Fund Fund Fund Fund Fund
---------- ------------ --------- -------- -------- ------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest. . . . . . . . . . . . . . . . . $ 30,251 $ 32,763 $ 8,455 $ 10,683 $ 559,628 $359,599
Dividends. . . . . . . . . . . . . . . . 47,689 50,906 37,124 48,649 -- --
--------- --------- -------- ------- -------- ---------
77,940 83,669 45,579 59,332 559,628 359,599
--------- --------- -------- ------- -------- ---------
EXPENSES:
Investment Advisory fees. . . . . . . . . 99,628 69,172 80,167 65,184 23,246 17,551
Custody and administration fees. . . . . . 37,866 38,653 47,878 51,007 37,838 37,621
Distribution expense. . . . . . . . . . . 39,548 27,623 29,090 22,509 22,309 21,109
Professional fees. . . . . . . . . . . . . 9,535 9,535 9,236 9,236 9,535 9,535
Registration and filing fees. . . . . . 26,023 24,313 23,701 23,867 23,608 23,634
Transfer agency fees. . . . . . . . . . . 19,946 11,933 15,457 10,849 10,103 3,828
Directors' fees and expenses. . . . . . . 3,738 3,738 3,738 3,738 3,738 3,738
Amortization of organization costs. . . . 1,026 795 994 941 1,012 1,056
Other. . . . . . . . . . . . . . . . . . . 5,171 5,174 5,176 5,224 5,136 5,136
--------- --------- -------- ------- -------- ---------
242,481 190,936 215,437 192,555 136,525 123,208
Less expenses absorbed by the adviser. . . . 16,131 15,086 77,028 81,159 44,478 49,447
--------- --------- -------- ------- -------- ---------
NET INVESTMENT INCOME (LOSS). . . . . . . . . (148,410) (92,181) (92,830) (52,064) 467,581 285,838
--------- --------- -------- ------- -------- ---------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS AND FOREIGN CURRENCIES:
Net realized gain on:
Investment transactions and futures contracts 855,792 443,478 801,347 145,763 8,548 118,867
Foreign currencies. . . . . . . . . . . . -- -- 2,604 114,152 -- --
--------- --------- -------- ------- -------- ---------
Net realized gain. . . . . . . . . . . . . 855,792 443,478 803,951 259,915 8,548 118,867
Net unrealized appreciation (depreciation)
of investments and foreign currencies. . . 3,719,605 572,725 596,331 1,551,895 (583,172) (483,195)
--------- --------- -------- ------- -------- ---------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS AND FOREIGN CURRENCIES. . . . 4,575,397 1,016,203 1,400,282 1,811,810 (574,624) (364,328)
--------- --------- -------- ------- -------- ---------
NET INCREASE (DECREASE)
RESULTING FROM OPERATIONS. . . . . $4,426,987 $ 924,022 $1,307,452 $1,759,746 $(107,043) $ (78,490)
========== ========= ========== ========== ========= ========
</TABLE>
See sccompanying notes
23
<PAGE>
DELAWARE GROUP ADVISER FUNDS, INC.
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE SIX MONTHS ENDED APRIL 30, 1996
AND THE YEAR ENDED OCTOBER 31, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
Enterprise Fund U. S. Growth Fund World Growth Fund
------------------------ --------------------- -----------------------
Six Months Year Six Months Year Six Months Year
Ended Ended Ended Ended Ended Ended
April 30, October 31, April 30, October 31, April 30, October 31,
1996 1995 1996 1995 1996 1995
---------- ----------- ---------- ----------- ----------- ------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment loss. . . . . . . . . . . . $ (148,410) $ (127,474) $ (92,181) $(127,175) $ (92,830) $ (4,785)
Net realized gain (loss) on investments
and foreign currencies. . . . . . . . . . 855,792 952,012 443,478 (476,502) 803,951 (56,010)
Net change in unrealized appreciation
(depreciation). . . . . . . . . . . . . . 3,719,605 2,165,537 572,725 3,893,441 596,331 631,558
---------- ---------- -------- ----------- ----------- ----------
Net increase (decrease) in net assets
resulting from operations . . . . . . . . 4,426,987 2,990,075 924,022 3,289,764 1,307,452 570,763
---------- ---------- -------- ----------- ----------- ----------
DISTRIBUTION TO SHAREHOLDERS FROM:
Net investment income:
A Class. . . . . . . . . . . . . . . . . -- -- -- -- (26,689) (9,506)
B Class. . . . . . . . . . . . ... . . . -- -- -- -- (2,249) (1,209)
C Class. . . . . . . . . . . . . . . . . -- -- -- -- (93) (104)
Institutional Class. . . . . . . . . . . -- -- -- -- (10) (263)
Net realized gain from security transactions:
A Class. . . . . . . . . . . . . . . . . -- -- -- -- -- --
B Class. . . . . . . . . . . . . . . . . -- -- -- -- -- --
C Class. . . . . . . . . . . . . . . . . -- -- -- -- -- --
Institutional Class. . . . . . . . . . . -- -- -- -- -- --
---------- ---------- -------- ----------- ----------- ----------
0 0 0 0 (29,041) (11,082)
---------- ---------- -------- ----------- ----------- ----------
CAPITAL SHARE TRANSACTIONS:
A Class. . . . . . . . . . . . . . . . 838,164 1,331,853 367,875 488,757 395,860 799,587
B Class. . . . . . . . . . . . . . . . 6,346 780,768 115,800 268,431 (115,661) 605,810
C Class. . . . . . . . . . . . . . . . (9,293) 10,081 20,966 18,772 2,820 2,337
Instituional Class. . . . . . . . . . 2,377,832 3,318,688 1,579,958 2,411,031 (156,672) 89,271
---------- ---------- --------- --------- ---------- ---------
Increase in assets derived from capital
share transactions. . . . . . . . .. . 3,213,049 5,441,390 2,084,599 3,186,991 126,347 1,497,005
---------- ---------- --------- --------- ---------- ---------
NET INCREASE IN NET ASSETS. . . . . . 7,640,036 8,431,465 3,008,621 6,476,755 1,404,758 2,056,686
NET ASSETS:
Beginning of period. . . . . . . . . . 20,043,205 11,611,740 18,987,288 12,510,533 14,404,149 12,347,463
---------- ---------- --------- --------- ---------- ---------
End of period. . . . . . . . . . . . . $27,683,241 $20,043,205 $21,995,909 $18,987,288 $15,808,907 $14,404,149
=========== =========== =========== =========== =========== ===========
Undistributed net investment income
(loss). . . . . .. . . . . . . . . . . $ (148,410) $ (127,474) $ (92,181) $ (127,175) $ (90,919) $ (23,614)
=========== =========== ========= ========== =========== ==========
</TABLE>
See accompanying notes
24
<PAGE>
Statements of Changes in NetAssets (Continued)
<TABLE>
<CAPTION>
New Pacific Fund Corporate Income Fund Federal Bond Fund
---------------------- ---------------------- ---------------------
Six Months Year Six Months Year Six Months Year
Ended Ended Ended Ended Ended Ended
April 30, October 31, April 30, October 31, April 30, October 31,
1996 1995 1996 1995 1996 1995
---------- ----------- ---------- ----------- ---------- -----------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss). . . . $ (52,064) $ (68,480) $ 467,581 $ 896,150 $ 285,838 $ 683,071
Net realized gain (loss) on investments
and foreign currencies. . . . . . . . 259,915 (388,609) 8,548 104,351 118,867 315,265
Net change in unrealized appreciation
(depreciation). . . . . . . . . . . . 1,551,895 (1,231,855) (583,172) 1,219,589 (483,195) 453,575
---------- ---------- -------- ---------- -------- ----------
Net increase (decrease) in net assets
resulting from operations. . . . . . . 1,759,746 (1,688,944) (107,043) 2,220,090 (78,490) 1,451,911
---------- ---------- -------- ---------- -------- ----------
DISTRIBUTION TO SHAREHOLDERS FROM:
Net Investment Income. . . . . . . . . . .
A Class. . . . . . . . . . . . . . . . . (11,516) -- (346,955) (633,907) (276,650) (620,799)
B Class. . . . . . . . . . . . . . . . . (518) -- (9,272) (24,234) (6,387) (19,661)
C Class. . . . . . . . . . . . . . . . . (16) -- (110) (604) (368) (224)
Institutional Class. . . . . . . . . . . (5) -- (113,418) (236,120) (4,685) (51,430)
Net realized gain from security transactions:
A Class. . . . . . . . . . . . . . . . . . -- (316,289) -- -- -- --
B Class. . . . . . .. . . . . . . . . . . . -- (15,095) -- -- -- --
C Class. . . . . . .. . . . . . . . . . . . -- (342) -- -- -- --
Institutional Class. . . . . . . . . . . . -- (1,631) -- -- -- --
---------- ---------- -------- ---------- -------- ----------
(12,055) (333,357) (469,755) (894,865) (288,090) (692,114)
CAPITAL SHARE TRANSACTIONS:
A Class. . . . . . . . . . . . . . . . . . 438,740 941,615 338,010 802,327 229,886 689,590
B Class. . . . . . . . . . . . . . . . . . (66,899) 231,878 40,348 115,759 30,619 46,580
C Class. . . . . . . . . . . . . . . . . . (498) 6,813 (306) (5,334) 3,948 (35,204)
Instituional Class. . . . . . . . . . . . . (58,918) 23,103 439,165 2,194,396 (988,141) 593,422
---------- ---------- -------- ---------- -------- ----------
Increase (decrease) in assets derived from
capital share transactions. . . . . . . . 312,425 1,203,409 817,217 3,107,148 (723,688) 1,294,388
---------- ---------- -------- ---------- -------- ----------
NET INCREASE (DECREASE) IN NET ASSETS. . . 2,060,116 (818,892) 240,419 4,432,373 (1,090,268) 2,054,185
NET ASSETS:
Beginning of period. . . . . . . . . . . 11,006,416 11,825,308 15,587,858 11,155,485 12,354,977 10,300,792
---------- ---------- ---------- ---------- ---------- ----------
End of period. . . . . . . . . . . . . . $13,066,532 $11,006,416 $15,828,277 $15,587,858 $11,264,709 $12,354,977
=========== =========== =========== =========== =========== ===========
Undistributed net investment income
(loss). . . . . . . .. . . . . . . . . . $ (73,338) $ (68,480) $ (117) $ 2,057 $ 3,216 $ 5,981
=========== =========== =========== =========== =========== ===========
</TABLE>
See accompanying notes
25
<PAGE>
DELAWARE GROUP ADVISER FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS
APRIL 30, 1996
(UNAUDITED)
The Delaware Adviser Funds, Inc. ("The Company") is registered as a
diversified open-end Investment Company under the Investment Company Act of
1940, as amended. The Company is organized as a Maryland corporation. Adviser
Funds, Inc. currently issues six separate series of shares (each referred to
as a "Fund" or collectively as the "Funds"), Enterprise Fund, U.S. Growth
Fund, World Growth Fund, New Pacific Fund, Corporate Income Fund and Federal
Bond Fund. Each Fund offers four classes of shares.
1. Significant Accounting Policies
The following accounting policies are in accordance with generally accepted
accounting principles and are consistently followed by each of the Funds:
Securities Valuation - Securities listed on an exchange are valued at the last
quoted sales price as of 4:00 pm EST on the valuation date. Securities not
traded are valued at the mean of the last quoted bid and asked prices.
Securities not listed on an exchange are valued at the mean of the last quoted
bid and asked prices. Securities listed on a foreign exchange are valued at the
last quoted sale price before the time when the Fund is valued. Debt obligations
that are issued or guaranteed by the U.S. government, its agencies, authorities
and instrumentalities are valued on the basis of prices provided by independent
pricing services. Money market instruments having less than 60 days to maturity
are valued at amortized cost.
Federal Income Taxes - Each Fund intends to qualify as a regulated investment
company and makes the requisite distributions to shareholders. Accordingly, no
federal income tax provision is required in the financial statements.
Repurchase Agreements - Each Fund may invest in a pooled cash account along with
other members of the Delaware Group of Funds. The aggregated 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
Funds custodian bank until the maturity of the respective repurchase agreements.
Each repurchase agreement is at least 100% collateralized. However, in the event
of default or bankruptcy by the counterparty to the agreement, realization of
the collateral may be subject to legal proceedings.
Class Accounting - Investment income, common expenses and gains (losses) on
investments are allocated to the various classes of each Fund on the basis of
daily net assets of each class. Distribution expenses relating to a specific
class are charged directly to that class.
<PAGE>
Foreign Currencies - The value of all assets and liabilities denominated in
foreign currencies are translated into the U.S. dollars at the exchange rate of
such currencies against U.S. dollars as of 3:00 pm EST. Forward foreign currency
contracts are valued at the mean between the bid and asked prices of the
contracts. Interpolated values are derived when the settlement date of the
contract is an interim date for which quotations are not available.
Other - Expenses common to all Funds within the Delaware Group of Funds are
allocated amongst the Funds on the basis of average net assets. Security
transactions are recorded on the date the securities are purchased or sold
(trade date). Costs used in calculating realized gains and losses on the sale of
investment securities are those of the specific securities sold. Dividend income
is recorded on the ex-dividend date and interest income is recorded on the
accrual basis. Original discounts are accreted to interest income over the lives
of the respective securities.
Organization costs are amortized over a five-year period beginning on the date
of commencement of operations. The balance of organization costs at April 30,
1996, were $5,344, $4,140, $5,165, $4,892, $5,266 and $5,494 for the Enterprise
Fund, U.S. Growth Fund, World Growth Fund, New Pacific Fund, Corporate Income
Fund and Federal Bond Fund, respectively.
2. Investment Management and Distribution Agreements
In accordance with the terms of the Investment Management Agreement, the Fund
pays Delaware Management Company, Inc. (DMC), the Investment Manager of each
Fund a monthly fee based upon each Fund's average daily net assets at the
following annual rates:
Enterprise Fund................. .80%
U.S. Growth Fund................ .70%
World Growth Fund............... 1.10%
New Pacific Fund................ .80%
Corporate Income Fund........... .30%
Federal Bond Fund............... 30%
DMC has entered into sub-advisory agreements with Lynch & Mayer, Inc. with
respect to the management of the Enterprise Fund and the U.S. Growth Fund, with
Walter Scott & Partners Limited with respect to the management of the World
Growth Fund, with John Govett & Company Limited with respect to the
26
<PAGE>
Notes to Financial Statements (Continued)
management of the New Pacific Fund, and with Lincoln Investment Management, Inc.
with respect to the management of the Corporate Income Fund and the Federal Bond
Fund. The sub-advisers receive sub-advisory fees from DMC for their services
calculated in accordance with the schedule set forth below. The Funds do not pay
any fees to the sub-advisers.
Enterprise Fund.......... .50% on the
first $150 million
and .35% on
assets over $150 million
U.S. Growth Fund .40%
World Growth Fund .80%
New Pacific Fund .50%
Corporate Income Fund .30%
Federal Bond Fund .30%
DMC has elected voluntarily to waive that portion, if any, of the annual
management fees payable by each Fund to the extent necessary to ensure that the
annual operating expenses exclusive of taxes, interest, brokerage commissions,
extraordinary expenses and 12b-1 expenses do not exceed 1.50% of average net
assets for each class through October 31, 1996.
On May 6, 1996, DMC, a wholly owned subsidiary of Lincoln National Corporation,
became the investment manager of the Fund. Additionally, on May 6, 1996, the
sub-advisory agreement for the U.S. Growth Fund was terminated with Provident
Investment Council. Effective May 6, 1996, a new sub-advisory agreement with
Lynch & Mayer, Inc., a wholly owned subsidiary of Lincoln National Corporation,
was approved by shareholders of the U.S. Growth Fund.
Pursuant to the Distribution Agreement, each Fund pays Delaware Distributors
L.P. (DDLP), the Distributor and an affiliate of DMC, an annual fee of 0.30% of
the average daily net assets of the A Class and 1.00% of the average daily net
assets of the B Class and the C Class. No distribution expenses are paid by the
Institutional Class. At April 30, 1996, the Enterprise Fund, the U.S. Growth
Fund, the World Growth Fund, the New Pacific Fund, the Corporate Income Fund and
the Federal Bond Fund had liabilities for distribution fees and other expenses
payable to DDLP for $20,631, $14,111, $14,688, $11,710, $10,996 and $10,403,
respectively.
Each of the funds have engaged Delaware Service Company, Inc. (DSC), an
affiliate of DMC to serve as dividend disbursing and transfer agent for the
Fund. For the six months ended April 30, 1996, the amount expensed for these
services were $19,946, $11,933, $15,457, $10,849, $10,103 and $3,828 for the
Enterprise Fund, the U.S. Growth Fund, the World Growth Fund, the New Pacific
Fund, the Corporate Income Fund and the Federal Bond Fund, respectively.
Certain officers of DMC are officers, directors and/or employees of each Fund.
These officers, directors and employees are paid no compensation by each Fund.
<PAGE>
3. Investments
For the six months ended April 30, 1996, the Fund made purchases and sales of
investment securities other than U.S. government securities and temporary cash
investments as follows:
Purchases Sales
------------ ----------
Enterprise Fund 14,728,837 12,366,329
U.S. Growth Fund 7,686,028 7,228,615
World Growth Fund 1,886,091 1,956,544
New Pacific Fund 10,685,361 9,971,720
Corporate Income Fund 1,680,644 2,585,882
Federal Bond Fund 426,025 441,800
Investment securities based on cost for federal income tax purposes at April 30,
1996, are as follows:
Enterprise U.S. Growth World Growth
Fund Fund Fund
--------------- -------------- -------------
Cost of Investments $20,803,288 $16,373,591 $12,822,011
Aggregated unrealized
appreciation 7,148,897 5,686,971 3,209,821
Aggregated unrealized
depreciation 118,943 77,176 811,983
----------- ----------- -----------
Market value of
investments $27,833,242 $21,983,386 $15,219,849
New Pacific Corporate Income Federal Bond
Fund Fund Fund
---------------- ------------------ -----------------
Cost of investments $12,282,112 $15,474,489 $11,438,865
Aggregated unrealized
appreciation 1,311,591 293,230 19,584
Aggregated unrealized
depreciation 719,486 319,065 352,426
----------- ----------- -----------
Market value of
investments $12,874,217 $15,448,654 $11,106,023
27
<PAGE>
Notes to Financial Statements (Continued)
4. Capital Stock
Transactions in capital stock shares were as follows:
<TABLE>
<CAPTION>
Enterprise Fund U.S. Growth Fund World Growth Fund
---------------------------- --------------------- ---------------------
Six Months Year Six Months Year Six Months Year
Ended Ended Ended Ended Ended Ended
April 30, October 31, April 30, October 31, April 30, October 31,
1996 1995 1996 1995 1996 1995
--------------- ------------- ----------- ----------- ---------- -----------
<S> <C> <C> <C> <C> <C> <C>
Shares sold:
A Class. . . . . . . . . . . . . . . . . . . 117,216 165,155 43,942 52,639 52,209 87,908
B Class. . . . . . . . . . . . . . . . . . . 33,668 81,179 20,738 26,729 8,454 66,883
C Class. . . . . . . . . . . . . . . . . . . 582 1,660 1,987 1,865 662 1,735
Institutional Class. . . . . . . . . . . . . 264,320 308,608 197,420 307,706 1,143 10,800
Shares issued upon reinvestment of dividends from
net investment income and net realized gains
from security transactions:
A Class. . . . . . . . . . . . . . . . . . . -- -- -- -- 2,274 895
B Class. . . . . . . . . . . . . . . . . . . -- -- -- -- 197 123
C Class. . . . . . . . . . . . . . . . . . . -- -- -- -- 9 11
Institutional Class. . . . . . . . . . . . . -- -- -- -- (14,776) 25
---------- -------- -------- -------- -------- --------
415,786 556,602 264,087 388,939 50,172 168,380
---------- -------- -------- -------- -------- --------
Shares repurchased:
A Class. . . . . . . . . . . . . . . . . . . (45,959) (45,959) (14,313) (5,890) (20,768) (13,283)
B Class. . . . . . . . . . . . . . . . . . . (31,887) (31,887) (11,209) (829) (19,684) (6,937)
C Class. . . . . . . . . . . . . . . . . . . (1,260) (1,260) (360) (232) (425) (1,466)
Institutional Class. . . . . . . . . . . . . (60,644) (60,644) (73,633) 81,517) 1 (2,532)
---------- -------- -------- -------- -------- --------
(139,750) (139,750) (99,515) (88,468) (40,876) (24,218)
Net increase. . . . . . . . . . . . . . . . . . 276,036 416,852 164,572 300,471 9,296 144,162
========= ======== ======== ======== ======= ========
</TABLE>
28
<PAGE>
Notes to Financial Statements (Continued)
4. Capital Stock (Continued)
Transactions in capital stock shares were as follows:
<TABLE>
<CAPTION>
New Pacific Fund Corporate Income Fund Federal Bond Fund
--------------------------- ------------------------- ------------------------
Six Months Year Six Months Year Six Months Year
Ended Ended Ended Ended Ended Ended
April 30, October 31, April 30, October 31, April 30, October 31,
1996 1995 1996 1995 1996 1995
-------------- ----------- ------------ ------------ ---------- -----------
<S> <C> <C> <C> <C> <C> <C>
Shares sold:
A Class. . . . . . . . . . . . . . . . 78,269 88,098 5,337 25,773 2,106 13,148
B Class. . . . . . . . . . . . . . . . 4,739 36,512 5,037 10,034 2,832 3,642
C Class. . . . . . . . . . . . . . . . 387 1,031 32 445 346 1,394
Institutional Class. . . . . . . . . . 558 2,883 157,995 307,225 5,674 75,898
Shares issued upon reinvestment of dividends from
net investment income and net realized gains
from security transactions:
A Class. . . . . . . . . . . . . . . . . . . 1,189 33,992 35,135 67,335 28,144 65,220
B Class. . . . . . . . . . . . . . . . . . . 50 1,505 817 2,352 543 1,698
C Class. . . . . . . . . . . . . . . . . . . 2 37 11 6 36 22
Institutional Class. . . . . . . . . . . . . 1 176 12,535 26,256 484 5,547
------- -------- -------- -------- -------- --------
85,195 164,234 216,899 439,426 40,165 166,569
------- -------- -------- -------- -------- --------
Shares repurchased:
A Class. . . . . . . . . . . . . . . . . . . (31,143) (18,925) (5,879) (6,735) (6,678) (5,486)
B Class. . . . . . . . . . . . . . . . . . . (12,561) (14,072) (2,028) (677) (374) (634)
C Class. . . . . . . . . . . . . . . . . . . (476) (271) (72) (1,004) (2) (5,071)
Institutional Class. . . . . . . . . . . . . (7,126) (494) (121,568) (90,608) (107,603) (18,066)
------- -------- -------- -------- -------- --------
(51,306) (33,762) (129,547) (99,024) (114,657) (29,257)
Net increase (decrease). . . . . . . . . . . . 33,889 130,472 87,352 340,402 (74,492) 137,312
======== ======== ======== ====== ======== ========
</TABLE>
5. Foreign Currency Forward Contracts
The following currency forward contracts were outstanding in the New Pacific
Fund at April 30, 1996:
<TABLE>
<CAPTION>
Contract to Deliver In Exchange For Settlement Date Unrealized Loss
----------------------- ------------------- ------------------ -------------------
<S> <C> <C> <C>
215,600,000 Japanese Yen $2,000,000 05/20/96 $(65,167)
</TABLE>
29
<PAGE>
Notes to Financial Statements (Continued)
6. Geographic Disclosure
As of April 30, 1996, the World Growth Fund's geographic diversification was as
follows:
Percentage of
Total Net Assets
Country at Value
------------ --------------------
Japan. . . . . . . . 38.0%
Germany. . . . . . . 12.9%
France. . . . . . . . 10.9%
Netherlands. . . . . 7.4%
Norway. . . . . . . . 5.2%
Great Britian. . . . 5.0%
United States. . . . 4.4%
Austria. . . . . . . 2.3%
Chile. . . . . . . . 2.3%
Sweeden. . . . . . . 2.3%
Denmark. . . . . . . 2.0%
Hong Kong. . . . . . 1.8%
Singapore. . . . . . 1.0%
Switzerland. . . . . 0.8%
Cash and Other Assets 3.7%
----
Total. . . . . . . . 100%
====
At April 30, 1996, the New Pacific Fund's geographic diversification was as
follows:
Percentage of
Total Net Assets
Country at Value
------------- ---------------------
Japan. . . . . . . . 23.6%
Thailand. . . . . . . 13.5%
Hong Kong. . . . . . 12.9%
Malaysia. . . . . . . 11.1%
South Korea. . . . . 7.5%
Taiwan. . . . . . . 5.3%
Australia. . . . . . 5.2%
Singapore. . . . . . 5.1%
Indonesia. . . . . . 3.9%
United States. . . . 3.4%
China. . . . . . . . 2.2%
India. . . . . . . . 2.1%
Phillipines. . . . . 2.0%
Pakistan. . . . . . . 0.7%
Cash and Other Assets 1.5%
----
Total. . . . . . . . 100%
====
30
<PAGE>
Notes to Financial Statements (Continued)
7. Financial Highlights
Selected data for each share of the Fund outstanding throughout each period were
as follows:
<TABLE>
<CAPTION>
Enterprise Fund A Class Enterprise Fund B Class
------------------------------------- ------------------------------------
Six Year Period Six Year Period
Months Ended Ended 12/3/93(1) to Months Ended Ended 4/14/94(1) to
4/30/96(2) 10/31/95 10/31/94 4/30/96(1) 10/31/95 10/31/94
------------- -------- ----------- ------------ -------- ------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period ........... $11.28 $ 9.20 $10.00 $11.96 $ 9.81 $10.00
Income (loss) from investment operations:
Net investment income (loss).................. (0.07) (0.08) (0.08) (0.13) (0.12) (0.04)
Net realized and unrealized gain (loss)
from security transactions .................. 2.27 2.16 (0.71) 2.44 2.27 (0.15)
------------- -------- ----------- ------------ -------- ------------
Net increase (decrease) in net assets from
investment operations ....................... 2.20 2.08 (0.79) 2.31 2.15 (0.19)
------------- -------- ----------- ------------ -------- ------------
Less distributions:
Dividends from net investment income ......... -- -- (0.01) -- -- --
Distributions from net realized gain on
security transactions ....................... -- -- -- -- -- --
------------- -------- ----------- ------------ -------- ------------
Total distributions .......................... 0.00 0.00 (0.01) 0.00 0.00 0.00
------------- -------- ----------- ------------ -------- ------------
Net asset value, end of period ................. $13.48 $11.28 $9.20 $14.27 $11.96 $ 9.81
============= ======== =========== ============ ======== ============
Total return(3) ................................ 19.40% 22.72% (7.91%) 19.31% 21.92% (1.91%)
Ratios and supplemental data:
Net assets, end of period (000 omitted) $18,295 $14,508 $10,579 $2,187 $1,811 $761
Ratio of expenses to average net assets
after waiver ................................ 1.85% 1.85% 1.85% 2.50% 2.50% 2.50%
Ratio of expenses to average net assets
before waiver ............................... 1.99% 2.42% 3.10% 2.64% 3.07% 3.76%
Ratio of net investment income to average
net assets after waiver ..................... (1.23%) (0.83%) (1.01%) (1.90%) (1.50%) (1.53%)
Ratio of net investment income to average
net assets before waiver .................... (1.37%) (1.40%) (2.26%) (2.04%) (2.07%) (2.79%)
Portfolio turnover ........................... 52% 106% 120% 52% 106% 120%
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Enterprise Fund C Class Enterprise Fund Institutional Class
------------------------------------- -----------------------------------------
Six Year Period Six Year Period
Months Ended Ended 5/10/94(1) to Months Ended Ended 2/3/94(1) to
4/30/96(2) 10/31/95 10/31/94 4/30/962 10/31/95 10/31/94
----------- -------- ------------- ------------- --------- -------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period....... $12.21 $10.02 $10.00 $11.30 $9.23 $10.44
Income (loss) from investment operations:
Net investment income (loss)............. (0.14) (0.15) (0.05) (0.05) (0.02) (0.02)
Net realized and unrealized gain
(loss) from security transactions....... 2.47 2.34 0.07 2.27 2.09 (1.19)
----------- -------- ------------- ------------- --------- -------------
Net increase (decrease) in net assets
from investment operations 2.33 2.19 0.02 2.22 2.07 (1.21)
=========== ======== ============= ============= ========= ============
Less distributions:
Dividends from net investment income -- -- -- -- -- --
Distributions from net realized gain on
security transactions................... -- -- -- -- -- --
----------- -------- ------------- ------------- --------- -------------
Total distributions...................... 0.00 0.00 0.00 0.00 0.00 0.00
----------- -------- ------------- ------------- --------- -------------
Net asset value, end of period............. $14.54 $12.21 $10.02 $13.52 $11.30 $9.23
=========== ======== ============= ============= ========= ============
Total return(3)............................ 19.08% 21.86% 0.23% 19.73% 22.43% (11.61%)
Ratios and supplemental data:
Net assets, end of period (000 omitted) $59 $58 $37 $7,142 $3,666 $234
Ratio of expenses to average net assets
after waiver............................ 2.50% 2.50% 2.50% 1.50% 1.53% 1.50%
Ratio of expenses to average net assets
before waiver........................... 2.64% 3.07% 3.75% 1.64% 2.07% 2.75%
Ratio of net investment income to
average net assets after waiver......... (1.87%) (1.49%) (1.53%) (0.86%) (0.60%) (0.63%)
Ratio of net investment income to average
net assets before waiver................ (2.01%) (2.06%) (2.78%) (1.00%) (1.14%) (1.88%)
Portfolio turnover....................... 52% 106% 120% 52% 106% 120%
</TABLE>
- --------
1 Date of initial public offering; ratios and total return have been annualized.
2 Ratios have been annualized and total return has not been annualized.
3 Does not include maximum sales charge of 4.75% nor the 1% limited
contingent deferred sales charge that would apply in the event of certain
redemptions within 12 months of purchase of A Class shares. Does not include
contingent deferred sales charge which varies from 1-4% depending upon the
holding period for Class B and Class C shares.
31
<PAGE>
Notes to Financial Statements (Continued)
7. Financial Highlights (Continued)
<TABLE>
<CAPTION>
U.S. Growth Fund A Class U.S. Growth Fund B Class
-------------------------------------------- -------------------------------------------
For the Six For the Year For the Period For the Six For the Year For The Period
Months Ended Ended 12/3/93(1) to Months Ended Ended 3/29/94(1) to
4/30/96(2) 10/31/95 10/31/94 4/30/96(2) 10/31/95 10/31/94
------------ ------------ -------------- ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period ...... $12.43 $10.21 $10.00 $12.33 $10.19 $10.00
Income (loss) from investment operations:
Net investment income (loss) ............ (0.06) (0.09) (0.04) (0.09) (0.14) (0.03)
Net realized and unrealized gain (loss)
from security transactions ............. 0.62 2.31 0.26 0.60 2.28 0.22
------------ ------------ -------------- ------------ ------------ ------------
Net increase (decrease) in net assets
from investment operations ............. 0.56 2.22 0.22 0.51 2.14 0.19
------------ ------------ -------------- ------------ ------------ ------------
Less distributions:
Dividends from net investment income .... -- -- (0.01) -- -- --
Distributions from net realized gain on
security transactions .................. -- -- -- -- -- --
------------ ------------ -------------- ------------ ------------ ------------
Total distributions ..................... 0.00 0.00 (0.01) 0.00 0.00 0.00
------------ ------------ -------------- ------------ ------------ ------------
Net asset value, end of period ............ $12.99 $12.43 $10.21 $12.84 $12.33 $10.19
============ ============ ============== ============ ============ ============
Total return(3) ........................... 4.51% 21.74% 2.18% 4.14% 21.00% 1.90%
Ratios and supplemental data:
Net assets, end of period (000 omitted) . $14,569 $13,574 $10,669 $713 $567 $204
Ratio of expenses to average net assets
after waiver .......................... 1.85% 1.85% 1.85% 2.50% 2.50% 2.50%
Ratio of expenses to average net assets
before waiver ......................... 2.14% 2.18% 2.94% 2.79% 2.83% 3.60%
Ratio of net investment income to average
net assets after waiver ............... (0.91%) (0.88%) (0.51%) (1.42%) (1.57%) (1.26%)
Ratio of net investment income to average
net assets before waiver .............. (1.20%) (1.21%) (1.60%) (1.71%) (1.90%) (2.36%)
Portfolio turnover ...................... 38% 58% 66% 38% 58% 66%
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
U.S. Growth Fund C Class U.S. Growth Fund Institutional Class
-------------------------------------------- ------------------------------------------
For the Six For the Year For the Period For the Six For the Year For the Period
Months Ended Ended 5/23/94(1) to Months Ended Ended 2/3/94(1) to
4/30/96(2) 10/31/95 10/31/94 4/30/96(2) 10/31/95 10/31/94
------------ ------------ -------------- ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period ...... $12.85 $10.62 $10.00 $12.50 $10.23 $10.52
Income (loss) from investment operations:
Net investment income (loss) ............ (0.10) (0.10) (0.03) (0.05) (0.05) (0.01)
Net realized and unrealized gain (loss)
from security transactions ............. 0.63 2.33 0.65 0.63 2.32 (0.28)
------------ ------------ -------------- ------------ ------------ ------------
Net increase (decrease) in net assets
from investment operations ............. 0.53 2.23 0.62 0.58 2.27 (0.29)
------------ ------------ -------------- ------------ ------------ ------------
Less distributions:
Dividends from net investment income .... -- -- -- -- -- --
Distributions from net realized gain on
security transactions ................... -- -- -- -- -- --
------------ ------------ -------------- ------------ ------------ ------------
Total distributions ..................... 0.00 0.00 0.00 0.00 0.00 0.00
============ ============ ============== ============ ============ ============
Net asset value, end of period ............ $13.38 $12.85 $10.62 $13.08 $12.50 $10.23
============ ============ ============== ============ ============ ============
Total return(3) ........................... 4.12% 21.00% 6.17% 4.64% 22.19% (2.78%)
Ratios and supplemental data:
Net assets, end of period (000 omitted) . $50 $27 $5 $6,664 $4,819 $1,630
Ratio of expenses to average net assets
after waiver ............................ 2.50% 2.50% 2.50% 1.50% 1.50% 1.50%
Ratio of expenses to average net assets
before waiver ........................... 2.79% 2.82% 3.54% 1.79% 1.83% 2.60%
Ratio of net investment income to average
net assets after waiver ................. (2.27%) (1.61%) (1.09%) (0.93%) (0.59%) (0.27%)
Ratio of net investment income to average
net assets before waiver ................ (2.56%) (1.93%) (2.13%) (1.22%) (0.92%) (1.37%)
Portfolio turnover ...................... 38% 58% 66% 38% 58% 66%
</TABLE>
- ----------------------------
1 Date of initial public offering; ratios and total return have been annualized.
2 Ratios have been annualized and total return has not been annualized.
3 Does not include maximum sales charge of 4.75% nor the 1% limited
contingent deferred sales charge that would apply in the event of certain
redemptions within 12 months of purchase of A Class shares. Does not include
contingent deferred sales charge which varies from 1-4% depending upon the
holding period for Class B and Class C shares.
32
<PAGE>
Notes to Financial Statements (Continued)
7. Financial Highlights (Continued)
<TABLE>
<CAPTION>
World Growth Fund A Class World Growth Fund B Class
------------------------------------------ -----------------------------------------
For the Six For the Year For the Period For the Six For the Year For the Period
Months Ended Ended 12/3/93(1) to Months Ended Ended 3/29/94(1) to
4/30/96(2) 10/31/95 10/31/94 4/30/96(2) 10/31/95 10/31/94
---------- --------- --------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period ........... $11.40 $11.00 $10.00 $10.71 $10.40 $10.00
Income (loss) from investment operations:
Net investment income (loss) ................. (0.10) 0.01 0.02 (0.09) (0.02) --
Net realized and unrealized gain from
security transactions ........................ 1.14 0.40 1.01 1.03 0.35 0.43
---------- --------- --------- -------- -------- --------
Total from investment operations ............. 1.04 0.41 1.03 0.94 0.33 0.43
---------- --------- --------- -------- -------- --------
Less distributions:
Dividends from net investment income ......... (0.02) (0.01) (0.03) (0.02) (0.02) (0.03)
Distributions from net realized gain on
security transactions......................... -- -- -- -- -- --
---------- --------- --------- -------- -------- --------
Total distributions .......................... (0.02) (0.01) (0.03) (0.02) (0.02) (0.03)
---------- --------- --------- -------- -------- --------
Net asset value, end of period ................. $12.42 $11.40 $11.00 $11.63 $10.71 $10.40
========== ========= ========= ======== ======== ========
Total return(3) ................................ 9.16% 3.81% 10.25% 8.82% 3.19% 4.28%
Ratios and supplemental data:
Net assets, end of period (000 omitted)....... $14,598 $13,018 $11,721 $1,156 $1,183 $523
Ratio of expenses to average net assets
after waiver.................................. 1.85% 1.85% 1.85% 2.50% 2.50% 2.50%
Ratio of expenses to average net assets before
waiver........................................ 3.12% 2.96% 3.56% 3.77% 3.61% 4.22%
Ratio of net investment income to average net
assets after waiver........................... (1.23%) 0.00% 0.25% (1.87%) (0.57%) (0.37%)
Ratio of net investment income to average net
assets before waiver.......................... (2.50%) (1.11%) (1.46%) (3.14%) (1.68%) (2.09%)
Portfolio turnover 14% 9% 6% 14% 9% 6%
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
World Growth Fund C Class World Growth Fund Institutional Class
------------------------------------------ ------------------------------------------
For the Six For the Year For the Period For the Six For the Year For The Period
Months Ended Ended 5/10/94(1) to Months Ended Ended 2/3/94(1) to
4/30/96(2) 10/31/95 10/31/94 4/30/96(2) 10/31/95 10/31/94
------------ ------------ -------------- ------------- ------------ -------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period ....... $10.73 $10.43 $10.00 $11.44 $11.02 $10.50
Income (loss) from investment operations:
Net investment income (loss) ............. (0.09) (0.06) 0.01 (0.47) 0.04 0.04
Net realized and unrealized gain from
security transactions .................... 1.02 0.39 0.44 1.39 0.41 0.52
------------ ------------ -------------- ------------- ------------ -------------
Total from investment operations ......... 0.93 0.33 0.45 0.92 0.45 0.56
------------ ------------ -------------- ------------- ------------ -------------
Less distributions:
Dividends from net investment income ..... (0.02) (0.03) (0.02) (0.02) (0.03) (0.04)
Distributions from net realized gain
on security transactions ................. -- -- -- -- -- --
------------ ------------ -------------- ------------- ------------ -------------
Total distributions ...................... (0.02) (0.03) (0.02) (0.02) (0.03) (0.04)
------------ ------------ -------------- ------------- ------------ -------------
Net asset value, end of period ............. $11.64 $10.73 $10.43 $12.34 $11.44 $11.02
============ ============ ============== ============= ============ =============
Total return(3) ............................ 8.80% 3.16% 4.45% 7.99% 4.22% 5.26%
Ratios and supplemental data:
Net assets, end of period (000 omitted)... $49 $43 $38 $5 $161 $63
Ratio of expenses to average net assets
after waiver.............................. 2.50% 2.50% 2.50% 1.50% 1.50% 1.50%
Ratio of expenses to average net assets
before waiver............................. 3.77% 3.61% 4.23% 2.76% 2.61% 3.21%
Ratio of net investment income to average
net assets after waiver................... (1.87%) (0.62%) 0.16% (0.96%) 0.40% 0.76%
Ratio of net investment income to average
net assets before waiver.................. (3.14%) (1.73%) (1.57%) (2.22%) (0.71%) (0.95%)
Portfolio turnover ....................... 14% 9% 6% 14% 9% 6%
</TABLE>
- -----------
1 Date of initial public offering; ratios and total return have been
annualized.
2 Ratios have been annualized and total return has not been annualized.
3 Does not include maximum sales charge of 4.75% nor the 1% limited contingent
deferred sales charge that would apply in the event of certain redemptions
within 12 months of purchase of A Class shares. Does not include contingent
deferred sales charge which varies from 1-4% depending upon the holding
period for Class B and Class C shares.
33
<PAGE>
Notes to Financial Statements (Continued)
7. Financial Highlights (Continued)
<TABLE>
<CAPTION>
New Pacific Fund A Class New Pacific Fund B Class
------------------------------------------ -----------------------------------------
For the Six For the Year For the Period For the Six For the Year For the Period
Months Ended Ended 12/3/93(1) to Months Ended Ended 3/29/94(1) to
4/30/96(2) 10/31/95 10/31/94 4/30/96(2) 10/31/95 10/31/94
------------ ------------ -------------- ------------ ----------- --------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period ...... $ 8.71 $10.44 $10.00 $ 9.01 $10.86 $10.00
Income (loss) from investment operations:
Net investment income (loss) ............ (0.04) (0.05) (0.02) (0.07) (0.10) (0.03)
Net realized and unrealized gain (loss)
on security transactions ................ 1.42 (1.39) 0.47 1.46 (1.46) 0.89
------------ ------------ -------------- ------------ ----------- --------------
Total from investment operations ........ 1.38 (1.44) 0.45 1.39 (1.56) 0.86
------------ ------------ -------------- ------------ ----------- --------------
Less distributions:
Dividends from net investment income .... (0.01) -- (0.01) (0.01) -- --
Distributions from net realized gain on
security transactions ................... -- (0.29) -- -- (0.29) --
------------ ------------ -------------- ------------ ----------- --------------
Total distributions ..................... (0.01) (0.29) (0.01) (0.01) (0.29) 0.00
------------ ------------ -------------- ------------ ----------- --------------
Net asset value, end of period ............ $10.08 $8.71 $10.44 $10.39 $ 9.01 $10.86
------------ ------------ -------------- ------------ ----------- --------------
Total return(3) ........................... 15.84% (13.99%) 4.53% 15.43% (14.56%) 8.58%
Ratios and supplemental data:
Net assets, end of period (000 omitted) . $12,461 $10,353 $11,333 $580 $573 $431
Ratio of expenses to average net assets
after waiver ............................ 1.85% 1.85% 1.85% 2.50% 2.50% 2.50%
Ratio of expenses to average net assets
before waiver ........................... 3.47% 3.73% 3.66% 4.12% 4.38% 4.32%
Ratio of net investment income to average
net assets after waiver ................. (0.85%) (0.60%) (0.21%) (1.48%) (1.20%) (0.88%)
Ratio of net investment income to average
net assets before waiver ................ (2.47%) (2.48%) (2.02%) (3.10%) (3.08%) (2.70%)
Portfolio turnover ...................... 88% 163% 104% 88% 163% 104%
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
New Pacific Fund C Class New Pacific Institutional Class
------------------------------------------ -----------------------------------------
For the Six For the Year For the Period For the Six For the Year For the Period
Months Ended Ended 7/7/94(1) to Months Ended Ended 2/3/94(1) to
4/30/96(2) 10/31/95 10/31/94 4/30/96(2) 10/31/95 10/31/94
----------- ------------ -------------- ------------ ------------ -------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period ...... $ 8.83 $10.66 $10.00 $ 8.77 $10.48 $11.14
Income (loss) from investment operations:
Net investment income (loss) ............ (0.06) (0.08) (0.02) (0.04) (0.01) 0.01
Net realized and unrealized gain (loss)
on security transactions ................ 1.42 (1.46) 0.68 1.46 (1.41) (0.67)
----------- ------------ -------------- ------------ ------------ -------------
Total from investment operations ........ 1.36 (1.54) 0.66 1.42 (1.42) (0.66)
----------- ------------ -------------- ------------ ------------ -------------
Less distributions:
Dividends from net investment income .... (0.01) -- -- (0.01) -- --
Distributions from net realized gain on
security transactions ................... -- (0.29) -- -- (0.29) --
----------- ------------ -------------- ------------ ------------ -------------
Total distributions ..................... (0.01) (0.29) 0.00 (0.01) (0.29) 0.00
----------- ------------ -------------- ------------ ------------ -------------
Net asset value, end of period ............ $10.18 $8.83 $10.66 $10.18 $ 8.77 $10.48
Total return(3) ........................... 15.40% (14.57%) 6.55% 16.08% (13.65%) (5.98%)
Ratios and supplemental data:
Net assets, end of period (000 omitted) . $19 $17 $12 $6 $62 $47
Ratio of expenses to average net assets
after waiver ............................ 2.50% 2.50% 2.50% 1.50% 1.50% 1.50%
Ratio of expenses to average net assets
before waiver ........................... 4.12% 4.38% 4.31% 3.12% 3.38% 3.31%
Ratio of net investment income to average
net assets after waiver ................. (1.46%) (1.02%) (0.83%) (0.22%) (0.16%) 0.23%
Ratio of net investment income to average
net assets before waiver ................ (3.08%) (2.90%) (2.64%) (1.84%) (2.04%) (1.58%)
Portfolio turnover ...................... 88% 163% 104% 88% 163% 104%
</TABLE>
- ---------
1 Date of initial public offering; ratios and total return have been
annualized.
2 Ratios have been annualized and total return has not been annualized.
3 Does not include maximum sales charge of 4.75% nor the 1% limited contingent
deferred sales charge that would apply in the event of certain redemptions
within 12 months of purchase of Class A shares. Does not include contingent
deferred sales charge which varies from 1-4% depending upon the holding
period for Class B and Class Cshares.
34
<PAGE>
Notes to Financial Statements (Continued)
7. Financial Highlights (Continued)
<TABLE>
<CAPTION>
Corporate Income Fund A Class Corporate Income Fund B Class
----------------------------------------- ------------------------------------------
For the Six For the Year For the Period For the Six For the Year For the Period
Months Ended Ended 12/3/93(1) to Months Ended Ended 3/29/94(1) to
4/30/96(2) 10/31/95 10/31/94 4/30/96(2) 10/31/95 10/31/94
----------- ------------ ------------- ------------ ----------- -------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period ........ $ 9.76 $ 8.80 $ 10.00 $ 10.45 $ 9.73 $ 10.00
Income (loss) from investment operations:
Net investment income ..................... 0.29 0.61 0.51 0.26 0.66 0.29
Net realized and unrealized gain (loss)
on security transactions .................. (0.36) 0.91 (1.20) (0.36) 0.91 (0.28)
----------- ------------ -------------- ------------ ------------ -------------
Total from investment operations .......... (0.07) 1.52 (0.69) (0.10) 1.57 0.01
----------- ------------ -------------- ------------ ------------ -------------
Less distributions:
Dividends from net investment income ...... (0.29) (0.56) (0.51) (0.26) (0.85) (0.28)
Distributions from net realized gain on
security tranactions ...................... -- -- -- -- -- --
----------- ------------ -------------- ------------ ----------- -------------
Total distributions ....................... (0.29) (0.56) (0.51) (0.26) (0.85) (0.28)
----------- ------------ -------------- ------------ ----------- -------------
Net asset value, end of period .............. $ 9.40 $ 9.76 $ 8.80 $ 10.09 $ 10.45 $ 9.73
=========== ============ ============== ============ =========== =============
Total return(3) ............................ (0.79%) 17.71% (7.06%) (1.06%) 17.05% 0.11%
Ratios and supplemental data:
Net assets, end of period (000 omitted) ... $ 11,424 $ 11,518 $ 9,620 $ 388 $ 362 $ 222
Ratio of expenses to average net assets
after waiver .............................. 1.25% 1.25% 1.25% 1.90% 1.90% 1.90%
Ratio of expenses to average net assets
before waiver ............................. 1.94% 1.87% 2.55% 2.59% 2.52% 3.21%
Ratio of net investment income to average
net assets after waiver ................... 5.97% 6.64% 6.04% 5.32% 5.97% 5.94%
Ratio of net investment income to
average net assets before waiver ........ 5.28% 6.02% 4.74% 4.63% 5.35% 4.63%
Portfolio turnover ........................ 36% 119% 185% 36% 119% 185%
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Corporate Income Fund C Class Corporate Income Institutional Fund Class
------------------------------------------ -------------------------------------------
For the Six For the Year For the Period For the Six For the Year For the Period
Months Ended Ended 9/14/94(1) to Months Ended Ended 2/3/94(1) to
4/30/96(2) 10/31/95 10/31/94 4/30/96(2) 10/31/95 10/31/94
------------ -------- ----------- ------------ -------- ----------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period....... $10.44 $9.80 $10.00 $9.49 $8.84 $9.98
Income (loss) from investment operations:
Net investment income.................... 0.32 0.18 0.08 0.31 0.73 0.41
Net realized and unrealized gain (loss)
on security transactions................. (0.41) 1.33 (0.19) (0.35) 0.78 (1.12)
---------- -------- ----------- ------------ -------- ----------
Total from investment operations......... (0.09) 1.51 (0.11) (0.04) 1.51 (0.71)
---------- -------- ----------- ------------ -------- ----------
Less distributions:
Dividends from net investment income (0.26) (0.87) (0.09) (0.31) (0.86) (0.43)
Distributions from net realized gain on
security transactions................... -- -- -- -- -- --
---------- -------- ----------- ------------ -------- ----------
Total distributions..................... (0.26) (0.87) (0.09) (0.31) (0.86) (0.43)
---------- -------- ----------- ------------ -------- ----------
Net asset value, end of period............ $10.09 $10.44 $ 9.80 $9.14 $9.49 $8.84
========== ======== =========== ============ ======== ==========
Total return(3)........................... (1.07%) 16.23% (1.00%) (0.52%) 18.27% (7.21%)
Ratios and supplemental data:
Net assets, end of period (000 omitted) $4 $5 $9 $4,012 $3,704 $1,302
Ratio of expenses to average net assets
after waiver............................ 1.90% 1.90% 1.85% 0.90% 0.90% 0.90%
Ratio of expenses to average net assets
before waiver........................... 2.60% 2.52% 3.17% 1.59% 1.52% 2.20%
Ratio of net investment income to
average net assets after waiver........ 5.29% 5.75% 5.91% 6.34% 6.95% 6.88%
Ratio of net investment income to
average net assets before waiver....... 4.59% 5.13% 4.59% 5.65% 6.33% 5.58%
Portfolio turnover...................... 36% 119% 185% 36% 119% 185%
</TABLE>
- -------------
1 Date of initial public offering; ratios and total return have been
annualized.
2 Ratios have been annualized and total return has not been annualized.
3 Does not include maximum sales charge of 4.75% nor the 1% limited contingent
deferred sales charge that would apply in the event of certain redemptions
within 12 months of purchase of Class A shares. Does not include contingent
deferred sales charge which varies from 1-4% depending upon the holding
period for Class B and Class Cshares.
35
<PAGE>
Notes to Financial Statements (Continued)
7. Financial Highlights (Continued)
<TABLE>
<CAPTION>
Federal Bond Fund A Class Federal Bond Fund B Class
----------------------------------------- ------------------------------------------
For the Six For the Year For the Period For the Six For the Year For the Period
Months Ended Ended 12/3/93(1) to Months Ended Ended 7/27/94(1) to
4/30/96(2) 10/31/95 10/31/94 4/30/96(2) 10/31/95 10/31/94
------------ ------------ -------------- ------------ ------------ -------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period...... $9.80 $9.15 $10.00 $10.25 $ 9.78 $10.00
Income (loss) from investment operations:
Net investment income................... 0.22 0.57 0.38 0.21 0.57 0.12
Net realized and unrealized gain (loss)
on security transactions................ (0.30) 0.65 (0.86) (0.33) 0.65 (0.23)
------------ ------------ -------------- ------------ ------------ -------------
Total from investment operations........ (0.08) 1.22 (0.48) (0.12) 1.22 (0.11)
------------ ------------ -------------- ------------ ------------ -------------
Less distributions:
Dividends from net investment income (0.24) (0.57) (0.37) (0.21) (0.75) (0.11)
Distributions from net realized gain
on security tranactions.................. -- -- -- -- -- --
------------ ------------ -------------- ------------ ------------ -------------
Total distributions...................... (0.24) (0.57) (0.37) (0.21) (0.75) (0.11)
------------ ------------ -------------- ------------ ------------ -------------
Net asset value, end of period............. $9.48 $9.80 $9.15 $9.92 $10.25 $9.78
============ ============ ============== ============ ============ =============
Total return(3)............................ (0.83%) 13.72% (4.93%) (1.23%) 13.09% 1.11%
Ratios and supplemental data:
Net assets, end of period (000 omitted) $10,922 $11,062 $9,658 $320 $299 $239
Ratio of expenses to average net assets
a after waiver........................... 1.25% 1.25% 1.25% 1.90% 1.90% 1.90%
Ratio of expenses to average net assets
before waiver............................ 2.23% 2.06% 2.58% 2.88% 2.71% 3.22%
Ratio of net investment income to average
net assets after waiver ................. 4.91% 6.07% 4.38% 4.27% 5.43% 4.87%
Ratio of net investment income to average
net assets before waiver................. 3.93% 5.26% 3.05% 3.29% 4.62% 3.55%
Portfolio turnover....................... 82% 227% 366% 82% 227% 366%
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Federal Bond Fund C Class Federal Bond Fund Institutional Class
------------------------------------------ -----------------------------------------
For the Six For the Year For the Period For the Six For the Year For the Period
Months Ended Ended 12/3/93(1) to Months Ended Ended 7/27/94(1) to
4/30/96(2) 10/31/95 10/31/94 4/30/96(2) 10/31/95 10/31/94
------------ ------------ -------------- ------------ ----------- -------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period......... $10.38 $ 9.79 $10.00 $9.60 $9.15 $10.00
Income (loss) from investment operations:
Net investment income (loss)............... 0.18 0.63 0.15 2.55 0.69 0.33
Net realized and unrealized gain (loss) on
security transactions...................... (0.30) 0.47 (0.22) (2.90) 0.54 (0.85)
--------- ------------ -------------- ------------ ----------- -------------
Total from investment operations........... (0.12) 1.10 (0.07) (0.35) 1.23 (0.52)
--------- ------------ -------------- ------------ ----------- -------------
Less distributions:
Dividends from net investment income....... (0.21) (0.51) (0.14) (0.26) (0.78) (0.33)
Distributions from net realized gain on
security tranactions....................... -- -- -- -- -- --
--------- ------------ -------------- ------------ ----------- -------------
Total distributions........................ (0.21) (0.51) (0.14) (0.26) (0.78) (0.33)
--------- ------------ -------------- ------------ ----------- -------------
Net asset value, end of period............... $10.05 $10.38 $9.79 $8.99 $9.60 $9.15
========= ============ ============== ============ =========== =============
Total return(3).............................. (1.20%) 11.59% (0.72%) (3.72%) 14.15% (5.17%)
Ratios and supplemental data:
Net assets, end of period (000 omitted) $18 $15 $49 $5 $979 $353
Ratio of expenses to average net assets
after waiver............................... 1.90% 1.85% 1.90% 0.90% 0.90% 0.90%
Ratio of expenses to average net assets
before waiver.............................. 2.88% 2.70% 3.22% 1.88% 1.71% 2.23%
Ratio of net investment income to average
net assets after waiver.................... 4.26% 4.73% 4.71% 4.78% 6.39% 5.57%
Ratio of net investment income to average
net assets before waiver................... 3.28% 3.88% 3.39% 3.80% 5.58% 4.24%
Portfolio turnover......................... 82% 227% 366% 82% 227% 366%
</TABLE>
- ----------
1 Date of initial public offering; ratios and total return have been
annualized.
2 Ratios have been annualized and total return has not been annualized.
3 Does not include maximum sales charge of 4.75% nor the 1% limited contingent
deferred sales charge that would apply in the event of certain redemptions
within 12 months of purchase of Class A shares. Does not include contingent
deferred sales charge which varies from 1-4% depending upon the holding
period for Class B and Class C shares.
36
<PAGE>
A REPORT ON THE DELAWARE GROUP ADVISER FUNDS, INC. ANNUAL MEETING
An annual meeting of shareholders was held on May 4, 1996. The matters submitted
to a vote of shareholders were the election of directors, the approval of a new
investment management agreement and a new sub-advisory agreement and the
ratification of the selection of Coopers & Lybrand LLP as independent auditors
of the Funds. Whenever there is a change in control of an investment manager,
the Investment Company Act of 1940 requires shareholders to vote on a new
investment management agreement.
<TABLE>
<CAPTION>
Enterprise Fund Number of Votes*
----------------------------------------------
For Against/Withheld Abstentions
<S> <C> <C> <C>
Wayne A. Stork.................. 1,360,697 4,324 --
Walter P. Babich ............... 1,360,697 4,324 --
Anthony D. Knerr................ 1,360,697 4,324 --
Ann R. Leven.................... 1,360,697 4,324 --
W. Thatcher Longstreth.......... 1,360,222 4,799 --
Charles E. Peck................. 1,360,550 4,471 --
Approval of the New Investment
Management Agreement........... 1,355,362 283 9,376
Approval of the New Sub-Advisory
Agreement...................... 1,355,232 321 9,376
Selection of Coopers & Lybrand
LLP as Independent Auditors.... 1,359,337 2,376 3,307
U.S. Growth Fund Number of Votes*
------------------------------------------------
For Against/Withheld Abstentions
Wayne A. Stork.................. 1,544,339 501 --
Walter P. Babich................ 1,544,339 501 --
Anthony D. Knerr................ 1,544,339 501 --
Ann R. Leven.................... 1,544,339 501 --
W. Thatcher Longstreth.......... 1,544,042 798 --
Charles E. Peck................. 1,544,339 501 --
Approval of the New Investment
Management Agreement........... 1,540,157 201 4,481
Approval of the New Sub-Advisory
Agreement ...................... 1,540,454 201 4,184
Selection of Coopers & Lybrand
LLP as Independent Auditors.... 1,543,504 232 1,102
World Growth Fund Number of Votes*
------------------------------------------------
For Against/Withheld Abstentions
Wayne A. Stork.................. 1,163,993 2,936 --
Walter P. Babich................ 1,163,993 2,936 --
Anthony D. Knerr................ 1,163,993 2,936 --
Ann R. Leven.................... 1,163,993 2,936 --
W. Thatcher Longstreth.......... 1,163,925 3,004 --
Charles E. Peck................. 1,163,925 3,004 --
Approval of the New Investment
Management Agreement............ 1,157,665 0 9,264
Approval of the New Sub-Advisory
Agreement....................... 1,157,809 0 9,120
Selection of Coopers & Lybrand
LLP as Independent Auditors... 1,162,295 8 4,625
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
New Pacific Fund Number of Votes*
------------------------------------------------
For Against/Withheld Abstentions
<S> <C> <C> <C>
Wayne A. Storkp................. 1,111,588 0 --
Walter P. Babich................ 1,111,588 0 --
Anthony D. Knerr................ 1,111,588 0 --
Ann R. Leven.................... 1,111,588 0 --
W. Thatcher Longstreth.......... 1,111,588 0 --
Charles E. Peck................. 1,111,588 0 --
Approval of the New Investment
Management Agreement........... 1,104,121 0 74,874
Approval of the New Sub-Advisory
Agreement....................... 1,103,866 255 7,874
Selection of Coopers & Lybrand
LLP as Independent Auditors.... 1,106,090 2,376 3,530
Corporate Income Fund Number of Votes*
------------------------------------------------
For Against/Withheld Abstentions
Wayne A. Stork.................. 1,563,539 595 --
Walter P. Babich................ 1,563,539 595 --
Anthony D. Knerr................ 1,563,539 595 --
Ann R. Leven.................... 1,563,539 595 --
W. Thatcher Longstreth.......... 1,563,539 595 --
Charles E. Peck................. 1,563,539 595 --
Approval of the New Investment
Management Agreement........... 1,554,630 0 9,504
Approval of the New Sub-Advisory
Agreement....................... 1,554,279 350 9,504
Selection of Coopers & Lybrand
LLP as Independent Auditors.... 1,563,539 0 595
Federal Bond Fund Number of Votes*
------------------------------------------------
For Against/Withheld Abstentions
Wayne A. Stork.................. 1,156,805 0 --
Walter P. Babich................ 1,156,805 0 --
Anthony D. Knerr................ 1,156,805 0 --
Ann R. Leven.................... 1,156,805 0 --
W. Thatcher Longstreth.......... 1,156,805 0 --
Charles E. Peck................. 1,156,805 0 --
Approval of the New Investment
Management Agreement........... 1,153,322 0 3,482
Approval of the New Sub-Advisory
Agreement....................... 1,152,978 344 3,482
Selection of Coopers & Lybrand
LLP as Independent Auditors.... 1,156,805 0 0
</TABLE>
* Please note that the results of this meeting were not audited by Coopers &
Lybrand LLP.
37
<PAGE>
This semi-annual report is for the information of Delaware Adviser Funds'
shareholders, but may be used with prospective investors when preceded or
accompanied by a current PROSPECTUS, which sets forth details about charges,
expenses, investment objectives and operating policies of the Funds. Summary
investment results are documented in the current Statement of Additional
Information. The figures in this report represent past 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>
DELAWARE GROUP
===================
OF FUNDS
===================
FOR GROWTH CAPITAL
Trend Fund
Enterprise Fund
DelCap Fund
Value Fund
U.S. Growth Fund
FOR TOTAL RETURN
Devon Fund
Decatur Total Return Fund
Decatur Income Fund
Delaware Fund
FOR GLOBAL DIVERSIFICATION
Emerging Markets Fund
New Pacific Fund
International Equity Fund
World Growth Fund
Global Assets Fund
Global Bond Fund
FOR CURRENT INCOME
Delchester Fund
Corporate Income Fund
Federal Bond Fund
U.S. Government Fund
Limited-Term Government Fund
FOR TAX-FREE CURRENT INCOME
Tax-Free Pennsylvania Fund
Tax-Free USA Fund
Tax-Free Insured Fund
Tax-Free USA Intermediate Fund
MONEY MARKET FUNDS
Delaware Cash Reserve
U.S. Government Money Fund
Tax-Free Money Fund
CLOSED-END EQUITY/INCOME*
Dividend and Income Fund
Global Dividend and Income Fund
This report must be preceded or accompanied by a current Delaware Group Adviser
Funds PROSPECTUS and the Delaware Group Fund Performance Update for the most
recently completed calendar quarter.
For a prospectus of any other Delaware Group fund, contact your financial
adviser or Delaware Group.
* Delaware Group Dividend and Income Fund and Delaware Group Global Dividend and
Income Fund purchases can be made through any registered broker.
<PAGE>
Be sure to consult your financial adviser when making investments. Mutual funds
can be a valuable part of your financial plan; however, shares of the Funds are
not FDIC or NCUSIF insured, are not guaranteed by any bank or any credit union,
are not obligations of any bank or any credit union, and involve investment
risk, including the possible loss of principal. Shares of the Funds are not bank
or credit union deposits.
INVESTMENT MANAGER
Delaware Management Company, Inc.
Philadelphia, Pennsylvania
INTERNATIONAL AFFILIATE
Delaware International Advisers Ltd.
London, England
SUBADVISERS
Lynch & Mayer
New York, New York
Walter Scott & Partners, Ltd.
Edinburgh, Scotland
John Govett & Co.
London, England
Lincoln Investment Management Inc.
Fort Wayne, Indiana
NATIONAL DISTRIBUTOR
Delaware Distributors, L.P.
Philadelphia, Pennsylvania
SHAREHOLDER SERVICING,
DIVIDEND DISBURSING
AND TRANSFER AGENT
Delaware Service Company, Inc.
Philadelphia, Pennsylvania
1818 Market Street
Philadelphia, PA 19103-3682
Nationwide (800) 523-4640
SECURITIES DEALERS ONLY
Nationwide (800) 362-7500
FINANCIAL INSTITUTIONS REPRESENTATIVES ONLY
Nationwide (800) 659-BANK (2265)
Copy Rights Delaware Distributors, L.P.
Printed in the U.S.A. on recycled paper.
SA - DAF [4/96] PP6/96
<PAGE>
1996
SEMI-ANNUAL
REPORT
=====================
ENTERPRISE FUND
U.S. GROWTH FUND
WORLD GROWTH FUND
NEW PACIFIC FUND
CORPORATE INCOME FUND
FEDERAL BOND FUND
======================
A Tradition of Sound Investing Since 1929
DELAWARE
GROUP
=====================
Philadelphia o London
