UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number: | 811-02806 | |
Exact name of registrant as specified in charter: | Delaware Group® Cash Reserve | |
Address of principal executive offices: | 610 Market Street | |
Philadelphia, PA 19106 | ||
Name and address of agent for service: | David F. Connor, Esq. | |
610 Market Street | ||
Philadelphia, PA 19106 | ||
Registrant’s telephone number, including area code: | (800) 523-1918 | |
Date of fiscal year end: | March 31 | |
Date of reporting period: | September 30, 2020 |
Item 1. Reports to Stockholders
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Visit delawarefunds.com/edelivery.
with offices in the United States, Europe, Asia, and Australia. As active
managers, we prioritize autonomy and accountability at the investment
team level in pursuit of opportunities that matter for clients. Delaware Funds
is one of the longest-standing mutual fund families, with more than 80 years
in existence.
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do not reflect any transactional costs, such as sales charges (loads), redemption fees, or exchange fees. Therefore, the second section of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher. The Fund’s expenses shown in the table reflect
fee waivers in effect and assume reinvestment of all dividends and distributions.
Expense analysis of an investment of $1,000
Beginning Account Value 4/1/20 | Ending Account Value 9/30/20 | Annualized Expense Ratio | Expenses Paid During Period 4/1/20 to 9/30/20* | |
Actual Fund return† | ||||
Class A | $1,000.00 | $1,032.50 | 0.40% | $2.04 |
Class C | 1,000.00 | 1,032.50 | 0.40% | 2.04 |
Class L | 1,000.00 | 1,032.50 | 0.40% | 2.04 |
Institutional Class | 1,000.00 | 1,032.50 | 0.40% | 2.04 |
Hypothetical 5% return (5% return before expenses) | ||||
Class A | $1,000.00 | $1,023.06 | 0.40% | $2.03 |
Class C | 1,000.00 | 1,023.06 | 0.40% | 2.03 |
Class L | 1,000.00 | 1,023.06 | 0.40% | 2.03 |
Institutional Class | 1,000.00 | 1,023.06 | 0.40% | 2.03 |
*“Expenses Paid During Period” are equal to the Fund’s annualized expense ratio, multiplied by the average account value over the period, multiplied by 183/365 (to reflect the one-half year period). |
†Because actual returns reflect only the most recent six-month period, the returns shown may differ significantly from fiscal year returns. |
Delaware Investments Ultrashort Fund | As of September 30, 2020 (Unaudited) |
Security type / sector | Percentage of net assets |
Corporate Bonds | 35.23% |
Banks | 13.71% |
Basic Industry | 3.36% |
Capital Goods | 3.17% |
Communications | 5.30% |
Consumer Cyclical | 1.50% |
Consumer Non-Cyclical | 3.26% |
Electric | 3.44% |
Financials | 1.49% |
Non-Agency Asset-Backed Securities | 52.72% |
Non-Agency Collateralized Mortgage Obligations | 1.02% |
Commercial Paper | 8.58% |
Banks | 5.54% |
Consumer Non-Cyclical | 3.04% |
Total Value of Securities | 97.55% |
Receivables and Other Assets Net of Liabilities | 2.45% |
Total Net Assets | 100.00% |
Delaware Investments Ultrashort Fund | September 30, 2020 (Unaudited) |
Principal amount° | Value (US $) | ||
Corporate Bonds — 35.23% | |||
Banks — 13.71% | |||
Bank of America 1.264% (LIBOR03M + 1.00%) 4/24/23 • | 1,500,000 | $1,515,185 | |
Citigroup 1.38% (LIBOR03M + 1.10%) 5/17/24 • | 1,500,000 | 1,513,778 | |
Goldman Sachs Group 1.856% (LIBOR03M + 1.60%) 11/29/23 • | 1,250,000 | 1,287,271 | |
JPMorgan Chase & Co. 1.145% (LIBOR03M + 0.90%) 4/25/23 • | 1,410,000 | 1,421,956 | |
Morgan Stanley 1.463% (LIBOR03M + 1.22%) 5/8/24 • | 1,500,000 | 1,517,536 | |
Santander UK 2.125% 11/3/20 | 1,000,000 | 1,001,671 | |
Truist Bank 0.804% (SOFRRATE + 0.73%) 3/9/23 • | 1,500,000 | 1,512,503 | |
UBS 144A 2.45% 12/1/20 # | 1,500,000 | 1,502,628 | |
11,272,528 | |||
Basic Industry — 3.36% | |||
DuPont de Nemours 3.766% 11/15/20 | 1,250,000 | 1,255,175 | |
Georgia-Pacific 144A 5.40% 11/1/20 # | 1,500,000 | 1,505,923 | |
2,761,098 | |||
Capital Goods — 3.17% | |||
Caterpillar Financial Services 2.95% 2/26/22 | 1,062,000 | 1,102,060 | |
Otis Worldwide 0.234% (LIBOR03M + 0.45%) 4/5/23 • | 1,500,000 | 1,501,024 | |
2,603,084 | |||
Communications — 5.30% | |||
Deutsche Telekom International Finance 144A 1.95% 9/19/21 # | 1,500,000 | 1,517,002 | |
Fox 3.666% 1/25/22 | 1,500,000 | 1,564,103 | |
Verizon Communications 1.38% (LIBOR03M + 1.10%) 5/15/25 • | 1,250,000 | 1,278,327 | |
4,359,432 | |||
Consumer Cyclical — 1.50% | |||
General Motors Financial 1.224% (LIBOR03M + 0.99%) 1/5/23 • | 1,250,000 | 1,236,933 | |
1,236,933 | |||
Consumer Non-Cyclical — 3.26% | |||
AbbVie 144A 0.897% (LIBOR03M + 0.65%) 11/21/22 #, • | 1,405,000 | 1,412,345 | |
CVS Health 3.35% 3/9/21 | 1,249,000 | 1,265,409 | |
2,677,754 |
Principal amount° | Value (US $) | ||
Corporate Bonds (continued) | |||
Electric — 3.44% | |||
American Electric Power 3.65% 12/1/21 | 1,250,000 | $1,294,969 | |
NextEra Energy Capital Holdings 2.403% 9/1/21 | 1,500,000 | 1,528,914 | |
2,823,883 | |||
Financials — 1.49% | |||
Aviation Capital Group 144A 1.196% (LIBOR03M + 0.95%) 6/1/21 #, • | 1,250,000 | 1,223,131 | |
1,223,131 | |||
Total Corporate Bonds (cost $28,781,743) | 28,957,843 | ||
Non-Agency Asset-Backed Securities — 52.72% | |||
American Express Credit Account Master Trust | |||
Series 2017-2 A 0.602% (LIBOR01M + 0.45%) 9/16/24 • | 675,000 | 677,823 | |
Series 2018-6 A 3.06% 2/15/24 | 1,000,000 | 1,022,223 | |
Avis Budget Rental Car Funding AESOP Series 2015-2A A 144A 2.63% 12/20/21 # | 500,000 | 501,143 | |
BMW Floorplan Master Owner Trust Series 2018-1 A2 144A 0.472% (LIBOR01M + 0.32%) 5/15/23 #, • | 1,000,000 | 1,000,881 | |
CarMax Auto Owner Trust Series 2017-4 A4 2.33% 5/15/23 | 2,000,000 | 2,041,306 | |
Chase Issuance Trust Series 2016-A3 A3 0.702% (LIBOR01M + 0.55%) 6/15/23 • | 500,000 | 501,907 | |
Chesapeake Funding II | |||
Series 2017-2A A2 144A 0.602% (LIBOR01M + 0.45%, Floor 0.45%) 5/15/29 #, • | 152,161 | 152,152 | |
Series 2017-4A A2 144A 0.462% (LIBOR01M + 0.31%) 11/15/29 #, • | 499,494 | 499,455 | |
Citibank Credit Card Issuance Trust Series 2017-A7 A7 0.524% (LIBOR01M + 0.37%) 8/8/24 • | 1,000,000 | 1,003,761 | |
Daimler Trucks Retail Trust Series 2020-1 A2 1.14% 4/15/22 | 1,342,864 | 1,346,537 | |
Dell Equipment Finance Trust Series 2020-2 A2 144A 0.47% 10/24/22 # | 2,000,000 | 2,000,449 |
Principal amount° | Value (US $) | ||
Non-Agency Asset-Backed Securities (continued) | |||
Discover Card Execution Note Trust | |||
Series 2017-A1 A1 0.642% (LIBOR01M + 0.49%) 7/15/24 • | 1,500,000 | $1,506,098 | |
Series 2019-A2 A 0.422% (LIBOR01M + 0.27%) 12/15/23 • | 2,000,000 | 2,003,151 | |
Ford Credit Auto Lease Trust Series 2020-A A2 1.80% 7/15/22 | 1,250,000 | 1,258,371 | |
Ford Credit Auto Owner Trust | |||
Series 2017-C A3 2.01% 3/15/22 | 48,649 | 48,809 | |
Series 2020-B A2 0.50% 2/15/23 | 1,000,000 | 1,001,394 | |
GM Financial Automobile Leasing Trust Series 2020-3 A2A 0.35% 11/21/22 | 1,500,000 | 1,499,839 | |
GreatAmerica Leasing Receivables Funding Series 2019-1 A2 144A 2.97% 6/15/21 # | 191,998 | 192,498 | |
Honda Auto Receivables Owner Trust | |||
Series 2019-2 A2 2.57% 12/21/21 | 339,749 | 341,320 | |
Series 2019-4 A3 1.83% 1/18/24 | 970,000 | 991,967 | |
Hyundai Auto Lease Securitization Trust | |||
Series 2018-B A4 144A 3.20% 6/15/22 # | 977,000 | 982,947 | |
Series 2020-A A3 144A 1.95% 7/17/23 # | 1,510,000 | 1,539,551 | |
Hyundai Auto Receivables Trust Series 2019-B A2 1.93% 7/15/22 | 655,123 | 658,667 | |
Invitation Homes Trust Series 2018-SFR1 A 144A 0.851% (LIBOR01M + 0.70%) 3/17/37 #, • | 1,771,192 | 1,752,474 | |
John Deere Owner Trust Series 2019-B A2 2.28% 5/16/22 | 421,573 | 423,619 | |
Mercedes-Benz Auto Lease Trust Series 2019-B A2 2.01% 12/15/21 | 859,595 | 862,862 | |
Mercedes-Benz Auto Receivables Trust Series 2020-1 A2 0.46% 3/15/23 | 1,000,000 | 1,001,044 | |
MMAF Equipment Finance Series 2020-BA A2 144A 0.38% 8/14/23 # | 2,000,000 | 1,998,955 | |
Nissan Auto Lease Trust Series 2018-A A3 3.25% 9/15/21 | 951,162 | 955,418 | |
Nissan Master Owner Trust Receivables | |||
Series 2017-C A 0.472% (LIBOR01M + 0.32%) 10/17/22 • | 1,500,000 | 1,500,205 | |
Series 2019-A A 0.712% (LIBOR01M + 0.56%) 2/15/24 • | 1,500,000 | 1,505,688 | |
PFS Financing Series 2020-B A 144A 1.21% 6/15/24 # | 2,000,000 | 2,020,793 |
Principal amount° | Value (US $) | ||
Non-Agency Asset-Backed Securities (continued) | |||
Tesla Auto Lease Trust Series 2018-B A 144A 3.71% 8/20/21 # | 2,342,665 | $2,364,660 | |
Trillium Credit Card Trust II Series 2019-1A A 144A 0.625% (LIBOR01M + 0.48%) 1/26/24 #, • | 1,500,000 | 1,501,159 | |
Verizon Owner Trust | |||
Series 2017-3A A1A 144A 2.06% 4/20/22 # | 153,109 | 153,367 | |
Series 2018-A A1A 3.23% 4/20/23 | 1,500,000 | 1,523,234 | |
Volvo Financial Equipment Series 2020-1A A2 144A 0.37% 4/17/23 # | 2,000,000 | 2,000,275 | |
Volvo Financial Equipment Master Owner Trust Series 2017-A A 144A 0.652% (LIBOR01M + 0.50%) 11/15/22 #, • | 1,000,000 | 1,000,392 | |
Total Non-Agency Asset-Backed Securities (cost $43,285,963) | 43,336,394 | ||
Non-Agency Collateralized Mortgage Obligations — 1.02% | |||
Silverstone Master Issuer Series 2018-1A 1A 144A 0.661% (LIBOR03M + 0.39%) 1/21/70 #, • | 840,000 | 838,537 | |
Total Non-Agency Collateralized Mortgage Obligations (cost $840,000) | 838,537 | ||
Commercial Paper — 8.58% | |||
Banks — 5.54% | |||
KFW 0.095% 10/2/20 ~ | 1,400,000 | 1,399,995 | |
National Australia Bank 0.07% 10/1/20 ~ | 1,650,000 | 1,650,000 | |
Toronto Dominion Bank 0.10% 10/2/20 ~ | 1,500,000 | 1,499,993 | |
4,549,988 | |||
Consumer Non-Cyclical — 3.04% | |||
Trinity Health 0.12% 10/1/20 ~ | 1,000,000 | 999,997 | |
Yale University 0.18% 1/7/21 ~ | 1,500,000 | 1,499,468 | |
2,499,465 | |||
Total Commercial Paper (cost $7,049,257) | 7,049,453 | ||
Total Value of Securities—97.55% (cost $79,956,963) | $80,182,227 |
° | Principal amount shown is stated in USD. |
• | Variable rate investment. Rates reset periodically. Rate shown reflects the rate in effect at September 30, 2020. For securities based on a published reference rate and spread, the reference rate and spread are indicated in their description above. The reference rate descriptions (i.e. LIBOR03M, LIBOR06M, etc.) used in this report are identical for different securities, but the underlying reference rates may differ due to the timing of the reset period. Certain variable rate securities are not based on a published reference rate and spread but are determined by the issuer or agent and are based on current market conditions, or for mortgage-backed securities, are impacted by the individual mortgages which are paying off over time. These securities do not indicate a reference rate and spread in their description above. |
# | Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended. At September 30, 2020, the aggregate value of Rule 144A securities was $27,660,717, which represents 33.65% of the Fund net assets. See Note 6 in “Notes to financial statements.” |
~ | The rate shown is the effective yield at the time of purchase. |
Summary of abbreviations: |
ICE – Intercontinental Exchange, Inc. |
LIBOR – London interbank offered rate |
LIBOR01M – ICE LIBOR USD 1 Month |
LIBOR03M – ICE LIBOR USD 3 Month |
LIBOR06M – ICE LIBOR USD 6 Month |
SOFRRATE – Secured Overnight Financing Rate |
USD – US Dollar |
Delaware Investments Ultrashort Fund | September 30, 2020 (Unaudited) |
Assets: | |
Investments, at value* | $80,182,227 |
Cash | 1,574,802 |
Interest receivable | 157,643 |
Receivable for fund shares sold | 417,060 |
Total Assets | 82,331,732 |
Liabilities: | |
Payable for fund shares redeemed | 70,128 |
Audit and tax fees payable | 19,440 |
Distribution payable | 11,548 |
Reports and statements to shareholders expenses payable to affiliates | 10,683 |
Dividend disbursing and transfer agent fees and expenses payable to non-affiliates | 9,056 |
Other accrued expenses | 7,526 |
Pricing fees payable | 2,230 |
Investment management fees payable to affiliates | 1,856 |
Dividend disbursing and transfer agent fees and expenses payable to affiliates | 609 |
Accounting and administration expenses payable to affiliates | 550 |
Trustees' fees and expenses payable | 261 |
Reports and statements to shareholders expenses payable to non-affiliates | 154 |
Legal fees payable to affiliates | 131 |
Total Liabilities | 134,172 |
Total Net Assets | $82,197,560 |
Net Assets Consist of: | |
Paid-in capital | $82,280,178 |
Total distributable earnings (loss) | (82,618) |
Total Net Assets | $82,197,560 |
Net Asset Value | |
Class A: | |
Net assets | $24,097,669 |
Shares of beneficial interest outstanding, unlimited authorization, no par | 2,406,065 |
Net asset value per share | $10.02 |
Sales charge | 2.00% |
Offering price per share, equal to net asset value per share / (1 - sales charge) | $10.22 |
Class C: | |
Net assets | $8,053,507 |
Shares of beneficial interest outstanding, unlimited authorization, no par | 804,125 |
Net asset value per share | $10.02 |
Class L: | |
Net assets | $46,422,284 |
Shares of beneficial interest outstanding, unlimited authorization, no par | 4,634,200 |
Net asset value per share | $10.02 |
Institutional Class: | |
Net assets | $3,624,100 |
Shares of beneficial interest outstanding, unlimited authorization, no par | 361,676 |
Net asset value per share | $10.02 |
*Investments, at cost | $79,956,963 |
Delaware Investments Ultrashort Fund | Six months ended September 30, 2020 (Unaudited) |
Investment Income: | |
Interest | $482,105 |
Expenses: | |
Management fees | 111,868 |
Distribution expenses — Class A | 22,186 |
Distribution expenses — Class C | 36,120 |
Dividend disbursing and transfer agent fees and expenses | 33,336 |
Registration fees | 33,180 |
Accounting and administration expenses | 25,789 |
Audit and tax fees | 19,490 |
Reports and statements to shareholders expenses | 16,624 |
Legal fees | 10,958 |
Dues and services | 4,259 |
Trustees' fees and expenses | 2,216 |
Custodian fees | 1,453 |
Other | 5,004 |
322,483 | |
Less expenses waived | (114,759) |
Less waived distribution expenses — Class A | (22,186) |
Less waived distribution expenses — Class C | (36,120) |
Less expenses paid indirectly | (269) |
Total operating expenses | 149,149 |
Net Investment Income | 332,956 |
Net Realized and Unrealized Loss: | |
Net realized loss on investments | (157,059) |
Net change in unrealized appreciation (depreciation) of investments | 2,145,721 |
Net Realized and Unrealized Gain | 1,988,662 |
Net Increase in Net Assets Resulting from Operations | $2,321,618 |
Six months ended 9/30/20 (Unaudited) | Year ended 3/31/20 | ||
Increase (Decrease) in Net Assets from Operations: | |||
Net investment income | $332,956 | $1,617,927 | |
Net realized gain (loss) | (157,059) | 86,169 | |
Net change in unrealized appreciation (depreciation) | 2,145,721 | (2,047,022) | |
Net increase (decrease) in net assets resulting from operations | 2,321,618 | (342,926) | |
Dividends and Distributions to Shareholders from: | |||
Distributable earnings: | |||
Class A | (81,713) | (292,153) | |
Class C | (33,917) | (165,906) | |
Class L | (221,024) | (1,106,374) | |
Institutional Class | (10,498) | (63,663) | |
(347,152) | (1,628,096) | ||
Capital Share Transactions: | |||
Proceeds from shares sold: | |||
Class A | 12,400,813 | 13,198,449 | |
Class C | 1,765,127 | 2,450,423 | |
Class L | 29,186 | 20 | |
Institutional Class | 2,475,480 | 19,654,840 | |
Net asset value of shares issued upon reinvestment of dividends and distributions: | |||
Class A | 80,898 | 277,562 | |
Class C | 34,598 | 156,664 | |
Class L | 224,548 | 1,097,818 | |
Institutional Class | 11,460 | 59,332 | |
17,022,110 | 36,895,108 |
Six months ended 9/30/20 (Unaudited) | Year ended 3/31/20 | ||
Capital Share Transactions (continued): | |||
Cost of shares redeemed: | |||
Class A | $(4,547,277) | $(9,508,607) | |
Class C | (1,307,936) | (2,437,117) | |
Class L | (1,631,838) | (4,935,394) | |
Institutional Class | (2,964,210) | (17,326,861) | |
(10,451,261) | (34,207,979) | ||
Increase in net assets derived from capital share transactions | 6,570,849 | 2,687,129 | |
Net Increase in Net Assets | 8,545,315 | 716,107 | |
Net Assets: | |||
Beginning of period | 73,652,245 | 72,936,138 | |
End of period | $82,197,560 | $73,652,245 |
Net asset value, beginning of period |
Income (loss) from investment operations: |
Net investment income3 |
Net realized and unrealized gain (loss) |
Capital contribution from Advisor |
Total from investment operations |
Less dividends and distributions from: |
Net investment income |
Net realized gain |
Total dividends and distributions |
Net asset value, end of period |
Total return5 |
Ratios and supplemental data: |
Net assets, end of period (000 omitted) |
Ratio of expenses to average net assets |
Ratio of expenses to average net assets prior to fees waived |
Ratio of net investment income to average net assets |
Ratio of net investment income (loss) to average net assets prior to fees waived |
Portfolio turnover |
1 | Ratios have been annualized and total return and portfolio turnover have not been annualized. |
2 | The Class A shares financial highlights for the periods prior to January 5, 2016 reflect the performance of Delaware Cash Reserve® Fund Consultant Class shares. |
3 | The average shares outstanding method has been applied for per share information. |
4 | For the year ended March 31, 2016, capital contribution from Advisor of $8,961 was made to the Fund’s Class A shares, which calculated to a de minimis amount of $0.00 per share. |
5 | Total return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total return during all of the periods shown reflects waivers by the manager and/or distributor. Performance would have been lower had the waivers not been in effect. |
Six months ended 9/30/201 (Unaudited) | Year ended | |||||||||
3/31/20 | 3/31/19 | 3/31/18 | 3/31/17 | 3/31/162 | ||||||
$9.75 | $9.99 | $9.96 | $10.00 | $10.02 | $10.00 | |||||
0.05 | 0.22 | 0.22 | 0.14 | 0.07 | 0.01 | |||||
0.27 | (0.24) | 0.03 | (0.03) | — | 0.02 | |||||
— | — | — | — | — | —4 | |||||
0.32 | (0.02) | 0.25 | 0.11 | 0.07 | 0.03 | |||||
(0.05) | (0.22) | (0.22) | (0.14) | (0.07) | (0.01) | |||||
— | — | — | (0.01) | (0.02) | — | |||||
(0.05) | (0.22) | (0.22) | (0.15) | (0.09) | (0.01) | |||||
$10.02 | $9.75 | $9.99 | $9.96 | $10.00 | $10.02 | |||||
3.25% | (0.21%) | 2.59% | 1.05% | 0.76% | 0.32% | |||||
$24,098 | $15,718 | $12,169 | $8,722 | $9,430 | $6,305 | |||||
0.40% | 0.40% | 0.40% | 0.40% | 0.40% | 0.19% | |||||
0.96% | 0.97% | 0.97% | 0.92% | 1.08% | 1.03% | |||||
0.89% | 2.21% | 2.24% | 1.38% | 0.73% | 0.14% | |||||
0.33% | 1.64% | 1.67% | 0.86% | 0.05% | (0.70%) | |||||
25% | 82% | 53% | 134% | 104% | 123% |
Net asset value, beginning of period |
Income (loss) from investment operations: |
Net investment income3 |
Net realized and unrealized gain (loss) |
Capital contribution from Advisor |
Total from investment operations |
Less dividends and distributions from: |
Net investment income |
Net realized gain |
Total dividends and distributions |
Net asset value, end of period |
Total return5 |
Ratios and supplemental data: |
Net assets, end of period (000 omitted) |
Ratio of expenses to average net assets |
Ratio of expenses to average net assets prior to fees waived |
Ratio of net investment income to average net assets |
Ratio of net investment income (loss) to average net assets prior to fees waived |
Portfolio turnover |
1 | Ratios have been annualized and total return and portfolio turnover have not been annualized. |
2 | The Class C shares financial highlights for the periods prior to January 5, 2016 reflect the performance of Delaware Cash Reserve® Fund Class C shares. |
3 | The average shares outstanding method has been applied for per share information. |
4 | For the year ended March 31, 2016, capital contribution from Advisor of $16,212 was made to the Fund’s Class C shares, which calculated to a de minimis amount of $0.00 per share. |
5 | Total return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total return during all of the periods shown reflects waivers by the manager and/or distributor. Performance would have been lower had the waivers not been in effect. |
Six months ended 9/30/201 (Unaudited) | Year ended | |||||||||
3/31/20 | 3/31/19 | 3/31/18 | 3/31/17 | 3/31/162 | ||||||
$9.75 | $9.99 | $9.96 | $10.00 | $10.02 | $10.00 | |||||
0.05 | 0.22 | 0.22 | 0.14 | 0.07 | 0.01 | |||||
0.27 | (0.24) | 0.03 | (0.03) | — | 0.02 | |||||
— | — | — | — | — | —4 | |||||
0.32 | (0.02) | 0.25 | 0.11 | 0.07 | 0.03 | |||||
(0.05) | (0.22) | (0.22) | (0.14) | (0.07) | (0.01) | |||||
— | — | — | (0.01) | (0.02) | — | |||||
(0.05) | (0.22) | (0.22) | (0.15) | (0.09) | (0.01) | |||||
$10.02 | $9.75 | $9.99 | $9.96 | $10.00 | $10.02 | |||||
3.25% | (0.21%) | 2.59% | 1.05% | 0.75% | 0.32% | |||||
$8,054 | $7,364 | $7,386 | $5,752 | $7,527 | $9,927 | |||||
0.40% | 0.40% | 0.40% | 0.40% | 0.40% | 0.19% | |||||
1.71% | 1.72% | 1.72% | 1.67% | 1.83% | 1.78% | |||||
0.89% | 2.21% | 2.24% | 1.38% | 0.73% | 0.14% | |||||
(0.42%) | 0.89% | 0.92% | 0.11% | (0.70%) | (1.45%) | |||||
25% | 82% | 53% | 134% | 104% | 123% |
Net asset value, beginning of period |
Income (loss) from investment operations: |
Net investment income3 |
Net realized and unrealized gain (loss) |
Capital contribution from Advisor |
Total from investment operations |
Less dividends and distributions from: |
Net investment income |
Net realized gain |
Total dividends and distributions |
Net asset value, end of period |
Total return5 |
Ratios to average net assets: |
Net assets, end of period (000 omitted) |
Ratio of expenses to average net assets |
Ratio of expenses to average net assets prior to fees waived |
Ratio of net investment income to average net assets |
Ratio of net investment income (loss) to average net assets prior to fees waived |
Portfolio turnover |
1 | Ratios have been annualized and total return and portfolio turnover have not been annualized. |
2 | The Class L shares financial highlights for the periods prior to January 5, 2016 reflect the performance of Delaware Cash Reserve® Fund Class A shares. |
3 | The average shares outstanding method has been applied for per share information. |
4 | For the year ended March 31, 2016, capital contribution from Advisor of $305,752 was made to the Fund’s Class L shares, which calculated to a de minimis amount of $0.00 per share. |
5 | Total return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value. Total return during all of the periods shown reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect. |
Six months ended 9/30/201 (Unaudited) | Year ended | |||||||||
3/31/20 | 3/31/19 | 3/31/18 | 3/31/17 | 3/31/162 | ||||||
$9.75 | $9.99 | $9.96 | $10.00 | $10.02 | $10.00 | |||||
0.05 | 0.22 | 0.22 | 0.14 | 0.07 | 0.01 | |||||
0.27 | (0.24) | 0.03 | (0.03) | — | 0.02 | |||||
— | — | — | — | — | —4 | |||||
0.32 | (0.02) | 0.25 | 0.11 | 0.07 | 0.03 | |||||
(0.05) | (0.22) | (0.22) | (0.14) | (0.07) | (0.01) | |||||
— | — | — | (0.01) | (0.02) | — | |||||
(0.05) | (0.22) | (0.22) | (0.15) | (0.09) | (0.01) | |||||
$10.02 | $9.75 | $9.99 | $9.96 | $10.00 | $10.02 | |||||
3.25% | (0.21%) | 2.59% | 1.05% | 0.75% | 0.32% | |||||
$46,422 | $46,517 | $51,512 | $59,084 | $68,119 | $83,641 | |||||
0.40% | 0.40% | 0.40% | 0.40% | 0.40% | 0.19% | |||||
0.71% | 0.72% | 0.72% | 0.67% | 0.83% | 0.78% | |||||
0.89% | 2.21% | 2.24% | 1.38% | 0.73% | 0.14% | |||||
0.58% | 1.89% | 1.92% | 1.11% | 0.30% | (0.45%) | |||||
25% | 82% | 53% | 134% | 104% | 123% |
Net asset value, beginning of period |
Income (loss) from investment operations: |
Net investment income3 |
Net realized and unrealized gain (loss) |
Total from investment operations |
Less dividends and distributions from: |
Net investment income |
Net realized gain |
Total dividends and distributions |
Net asset value, end of period |
Total return4 |
Ratios and supplemental data: |
Net assets, end of period (000 omitted) |
Ratio of expenses to average net assets |
Ratio of expenses to average net assets prior to fees waived |
Ratio of net investment income to average net assets |
Ratio of net investment income to average net assets prior to fees waived |
Portfolio turnover |
1 | Ratios have been annualized and total return and portfolio turnover have not been annualized. |
2 | Date of commencement of operations; ratios have been annualized and total return has not been annualized. |
3 | The average shares outstanding method has been applied for per share information. |
4 | Total return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value. Total return during all of the periods shown reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect. |
5 | Portfolio turnover is representative of the Fund for the year ended March 31, 2016. |
Six months ended 9/30/201 (Unaudited) | Year ended | 1/5/16 to 3/31/162 | ||||||||
3/31/20 | 3/31/19 | 3/31/18 | 3/31/17 | |||||||
$9.75 | $9.99 | $9.96 | $10.00 | $10.02 | $10.00 | |||||
�� | ||||||||||
0.05 | 0.22 | 0.22 | 0.14 | 0.07 | 0.02 | |||||
0.27 | (0.24) | 0.03 | (0.03) | — | 0.02 | |||||
0.32 | (0.02) | 0.25 | 0.11 | 0.07 | 0.04 | |||||
(0.05) | (0.22) | (0.22) | (0.14) | (0.07) | (0.02) | |||||
— | — | — | (0.01) | (0.02) | — | |||||
(0.05) | (0.22) | (0.22) | (0.15) | (0.09) | (0.02) | |||||
$10.02 | $9.75 | $9.99 | $9.96 | $10.00 | $10.02 | |||||
3.25% | (0.21%) | 2.59% | 1.05% | 0.75% | 0.39% | |||||
$3,624 | $4,053 | $1,869 | $418 | $331 | $303 | |||||
0.40% | 0.40% | 0.40% | 0.40% | 0.40% | 0.40% | |||||
0.71% | 0.72% | 0.72% | 0.67% | 0.83% | 0.74% | |||||
0.89% | 2.21% | 2.24% | 1.38% | 0.73% | 0.36% | |||||
0.58% | 1.89% | 1.92% | 1.11% | 0.30% | 0.02% | |||||
25% | 82% | 53% | 134% | 104% | 123%5 |
Delaware Investments Ultrashort Fund | September 30, 2020 (Unaudited) |
intends to continue to qualify for federal income tax purposes as a regulated investment company
under Subchapter M of the Internal Revenue Code of 1986, as amended, and make the requisite distributions to shareholders. The Fund evaluates tax positions taken or expected to be taken in the course of preparing the Fund's tax returns to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. Tax positions not deemed to meet the “more-likely-than-not” threshold are recorded as a tax benefit or expense in the current year. Management has analyzed the Fund's tax positions taken or expected to be taken on the Fund's federal income tax returns through the six months ended September 30, 2020 and for all open tax years (years ended March 31, 2017–March 31, 2020), and has concluded that no provision for federal income tax is required in the Fund's financial statements. If applicable, the Fund recognizes interest accrued on unrecognized tax benefits in interest expense and penalties in "Other" on the “Statement of operations.” During the
six months ended September 30, 2020, the Fund did not incur any interest or tax penalties.
“Less expenses paid indirectly.” For the six months ended September 30, 2020, the Fund earned $269 under this arrangement.
pay/reimburse expenses (excluding any distribution and service (12b-1) fees, taxes, interest, acquired fund fees and expenses, short sale dividend and interest expenses, brokerage fees, certain insurance costs, and nonroutine expenses or costs, including, but not limited to, those relating to reorganizations, litigation, conducting shareholder meetings, and liquidations) in order to prevent total annual fund operating expenses from exceeding 0.40% of the Fund’s average daily net assets from
April 1, 2020 through September 30, 2020.* These waivers and reimbursements may be terminated only by agreement of DMC and the Fund.
an affiliate of DMC, an annual 12b-1 fee of 0.25% of the average daily net assets of the Class A shares, and 1.00% of the average daily net assets of the Class C shares. The fees are calculated daily and paid monthly. Class L and Institutional Class shares do not pay 12b-1 fees. DDLP has contracted to limit
the 12b-1 fees to 0.00% of average daily net assets for Class A and Class C shares from
April 1, 2020 through September 30, 2020.*
July 29, 2021.
Purchases | $21,243,862 |
Sales | 16,476,848 |
Cost of investments | $79,956,963 |
Aggregate unrealized appreciation of investments | $308,459 |
Aggregate unrealized depreciation of investments | (83,195) |
Net unrealized appreciation of investments | $225,264 |
as follows:
Loss carryforward character | |||||
Short-term | Long-term | Total | |||
$ 135,183 | $ — | $ 135,183 |
Level 2 | |
Securities | |
Assets: | |
Commercial Paper | $7,049,453 |
Corporate Bonds | 28,957,843 |
Non-Agency Asset-Backed Securities | 43,336,394 |
Non-Agency Collateralized Mortgage Obligations | 838,537 |
Total Value of Securities | $80,182,227 |
Six months ended | Year ended | ||
9/30/20 | 3/31/20 | ||
Shares sold: | |||
Class A | 1,241,688 | 1,329,041 | |
Class C | 176,550 | 246,152 | |
Class L | 2,926 | 2 | |
Institutional Class | 247,867 | 1,962,612 | |
Shares issued upon reinvestment of dividends and distributions: | |||
Class A | 8,123 | 27,774 | |
Class C | 3,475 | 15,674 | |
Class L | 22,552 | 109,812 | |
Institutional Class | 1,150 | 5,966 | |
1,704,331 | 3,697,033 | ||
Shares redeemed: | |||
Class A | (456,633) | (962,163) | |
Class C | (131,555) | (245,583) | |
Class L | (163,513) | (493,853) | |
Institutional Class | (302,957) | (1,740,036) | |
(1,054,658) | (3,441,635) | ||
Net increase | 649,673 | 255,398 |
Exchange Redemptions | Exchange Subscriptions | |||||||
Class C Shares | Class A Shares | Value | ||||||
Six months ended | ||||||||
9/30/20 | 10,042 | 10,046 | $100,714 | |||||
Year ended | ||||||||
3/31/20 | 5,791 | 5,793 | 58,111 |
was allocated across the Participants based on a weighted average of the respective net assets of each Participant. The Participants were permitted to borrow up to a maximum of one-third of their net assets under the Agreement. Each Participant was individually, and not jointly, liable for its particular advances, if any, under the line of credit. The line of credit available under the Agreement expired on
November 4, 2019.
September 30, 2020, that would require recognition or disclosure in the Fund's financial statements.
(Highly Liquid, Moderately Liquid, Less Liquid, and Illiquid); (3) for funds that do not primarily hold assets that are Highly Liquid, establishing and maintaining a minimum percentage of the Fund’s net assets in Highly Liquid investments (called a “Highly Liquid Investment Minimum” or “HLIM”); and (4) prohibiting the Fund’s acquisition of Illiquid investments if, immediately after the acquisition, the Fund would hold more than 15% of its net assets in Illiquid assets. The Program also requires reporting to the SEC (on a
non-public basis) and to the Board if the Fund’s holdings of Illiquid assets exceed 15% of the Fund’s net assets. Funds with HLIMs must have procedures for addressing HLIM shortfalls, including reporting to the Board and, with respect to HLIM shortfalls lasting more than seven consecutive calendar days, reporting to the SEC (on a non-public basis).
“Sub-Advisers”), included materials provided by DMC and its affiliates (collectively, “Macquarie Investment Management”) concerning, among other things, the nature, extent, and quality of services provided to the Fund; the costs of such services to the Fund; economies of scale; and the investment manager’s financial condition and profitability. In addition, in connection with the Annual Meeting, materials were provided to the Trustees in May 2020, including reports provided by Broadridge Financial Solutions (“Broadridge”). The Broadridge reports compared the Fund’s investment performance and expenses with those of other comparable mutual funds. The Independent Trustees reviewed and discussed the Broadridge reports with independent legal counsel to the Independent Trustees. In addition to the information noted above, the Board also requested and received information regarding DMC’s policy with respect to advisory fee levels and its breakpoint philosophy; the structure of portfolio manager compensation; comparative client fee information; and any constraints or limitations on the availability of securities for certain investment styles, which had in the past year inhibited, or which were likely in the future to inhibit, the investment manager’s ability to invest fully in accordance with Fund policies.
and restrictions for the Fund; the compliance of Sub-Adviser personnel with its Code of Ethics; and adherence to fair value pricing procedures as established by the Board. The Board was pleased with the current staffing of the Sub-Advisers and the emphasis placed on research in the investment process.
The Board was satisfied with the nature, extent, and quality of the overall services provided by the
Sub-Advisers.
poorest/worst performing 25% of funds in the Performance Universe make up the fourth quartile. Comparative annualized performance for the Fund was shown for the past 1-, 3-, 5-, and 10-year periods, to the extent, applicable, ended January 31, 2020. The Board’s objective is that the Fund’s performance for the 1-, 3-, and 5-year periods be at or above the median of its Performance Universe.
Chief Executive Officer
Delaware Funds®
by Macquarie
Philadelphia, PA
Stonebrook Capital
Management, LLC
Jersey City, NJ
Delaware Funds
by Macquarie
Private Investor
Rosemont, PA
Officer
Private Wealth Management
J.P. Morgan Chase & Co.
New York, NY
President
State Street Corporation
Boston, MA
Drexel University
Philadelphia, PA
Officer
Assurant, Inc.
New York, NY
Sevilla-Sacasa
Officer
Banco Itaú International
Miami, FL
PNC Financial Services Group
Pittsburgh, PA
and President
Gore Creek Capital, Ltd.
Golden, CO
Treasurer
3M Company
St. Paul, MN
General Counsel,
and Secretary
Delaware Funds
by Macquarie
Philadelphia, PA
Treasurer
Delaware Funds
by Macquarie
Philadelphia, PA
Chief Financial Officer
Delaware Funds
by Macquarie
Philadelphia, PA
delawarefunds.com/literature.
![](https://capedge.com/proxy/N-CSRS/0001206774-20-003132/img0ce5f6462.gif)
and use
broker/dealers; and other financial services companies with whom we have joint marketing agreements). Our service providers also include nonfinancial companies and individuals (for example, consultants; information services vendors; and companies that perform mailing or marketing services on our behalf). Information obtained from a report prepared by a service provider may be kept by the service provider and shared with other persons; however, we require our service providers to protect your personal information and to use or disclose it only for the work they are performing for us, or as permitted by law.
This and other information can be found in each Fund’s prospectus and, if available, its summary prospectus.
A Delaware Funds by Macquarie prospectus may be obtained by visiting delawarefunds.com/literature or
calling 800 523-1918. Investors should read the prospectus and, if available, the summary prospectus carefully
before investing.
(formerly, Delaware Emerging Markets Debt Fund)
Municipal fixed income funds
the Acquiring Funds. The Reorganizations are expected to take place in December 2020. The Acquired Funds will
continue to accept purchases (including reinvested dividends and capital gains) from existing shareholders until November 25, 2020. Contingent deferred sales charges will be waived on redemptions from the Acquired Funds
through the date of the Reorganizations.
out the convenient options provided by Macquarie Investment Management. We try to make it easy for you to avoid some of the sales charges that you might otherwise have to pay when you withdraw and invest your money with another firm.
exchange all or part of your shares in one Delaware Funds® by Macquarie mutual fund for shares of the same class of another fund without paying a front-end sales charge or a contingent deferred sales charge (CDSC).
any changes:
or $75 quarterly. If the annual amount you withdraw is less than 12% of your account balance at the time the systematic withdrawal plan is established, the CDSC ordinarily applicable to certain fund classes will be waived. More details are available in your prospectus or at
delawarefunds.com/literature.
read it carefully before buying shares through an exchange.
800 523-1918, weekdays from 8:30am to
6:00pm ET
institutions representatives only
800 362-7500
P.O. Box 9876
Providence, RI 02940-8076
4400 Computer Drive
Westborough, MA 01581-1722
Macquarie Investment Management (MIM) is the marketing name for certain companies comprising the asset management division of Macquarie Group. This includes the following investment advisers: Macquarie Investment Management Business Trust (MIMBT), Macquarie Funds Management Hong Kong Limited, Macquarie Investment Management Austria Kapitalanlage AG, Macquarie Investment Management Global Limited, Macquarie Investment Management Europe Limited, and Macquarie Investment Management Europe S.A.
Item 2. Code of Ethics
Not applicable.
Item 3. Audit Committee Financial Expert
Not applicable.
Item 4. Principal Accountant Fees and Services
Not applicable.
Item 5. Audit Committee of Listed Registrants
Not applicable.
Item 6. Investments
(a) Included as part of report to shareholders filed under Item 1 of this Form N-CSR.
(b) Divestment of securities in accordance with Section 13(c) of the Investment Company Act of 1940.
Not applicable.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies
Not applicable.
Item 8. Portfolio Managers of Closed-End Management Investment Companies
Not applicable.
Item 9. Purchases of Equity Securities by Closed-End Management Investment Companies and Affiliated Purchasers
Not applicable.
Item 10. Submission of Matters to a Vote of Security Holders
Not applicable.
Item 11. Controls and Procedures
The registrant’s principal executive officer and principal financial officer have evaluated the registrant’s disclosure controls and procedures within 90 days of the filing of this report and have concluded that they are effective in providing reasonable assurance that the information required to be disclosed by the registrant in its reports or statements filed under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the Securities and Exchange Commission.
There were no significant changes in the registrant’s internal control over financial reporting that occurred during the period covered by the report to stockholders included herein that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.
Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.
Not applicable.
Item 13. Exhibits
(a) | (1) Code of Ethics |
Not applicable. | |
(2) Certifications of Principal Executive Officer and Principal Financial Officer pursuant to Rule 30a-2 under the Investment Company Act of 1940 are attached hereto as Exhibit 99.CERT. | |
(3) Written solicitations to purchase securities pursuant to Rule 23c-1 under the Securities Exchange Act of 1934. | |
Not applicable. | |
(b) | Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 are furnished herewith as Exhibit 99.906CERT. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf, by the undersigned, thereunto duly authorized.
DELAWARE GROUP® CASH RESERVE
/s/SHAWN K. LYTLE | |
By: | Shawn K. Lytle |
Title: | President and Chief Executive Officer |
Date: | December 3, 2020 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
/s/SHAWN K. LYTLE | |
By: | Shawn K. Lytle |
Title: | President and Chief Executive Officer |
Date: | December 3, 2020 |
/s/RICHARD SALUS | |
By: | Richard Salus |
Title: | Chief Financial Officer |
Date: | December 3, 2020 |