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: 811-2806
Exact name of registrant as specified in charter:
Delaware Group Cash Reserve
Address of principal executive offices:
2005 Market Street
Philadelphia, PA 19103
Name and address of agent for service:
Richelle S. Maestro, Esq.
2005 Market Street
Philadelphia, PA 19103
Registrant's telephone number, including area code: (800) 523-1918
Date of fiscal year end: September 30
Date of reporting period: September 30, 2003
Item 1. Reports to Stockholders
Delaware
Investments(SM)
--------------------------------------
A member of Lincoln Financial Group(R)
FIXED INCOME
Semiannual Report 2004
- --------------------------------------------------------------------------------
DELAWARE CASH RESERVE FUND
[LOGO OMITTED] POWERED BY RESEARCH.(SM)
Table
OF CONTENTS
- ---------------------------------------------------------
FINANCIAL STATEMENTS:
- ---------------------------------------------------------
Statement of Net Assets 1
Statement of Operations 3
Statements of Changes in Net Assets 4
Financial Highlights 5
Notes to Financial Statements 8
- ---------------------------------------------------------
Funds are not FDIC insured and are not guaranteed. It is possible to lose
the principal amount invested.
Mutual fund advisory services provided by Delaware Management Company, a
series of Delaware Management Business Trust, which is a registered
investment advisor.
(C) 2003 Delaware Distributors, L.P.
Statement Delaware Cash Reserve Fund
OF NET ASSETS September 30, 2003 (Unaudited)
Principal Market
Amount Value
- ---------------------------------------------------------------------------
Commercial Paper- 92.87%
- ---------------------------------------------------------------------------
Financial Services - 67.67%
Allianz Finance Corporation
1.08% 11/7/03 $10,000,000 $ 9,988,900
America Honda Finance
1.05% 11/4/03 10,000,000 9,990,083
Amstel Funding Corporation
1.04% 10/7/03 10,000,000 9,998,267
1.05% 10/2/03 10,000,000 9,999,708
1.08% 11/5/03 5,000,000 4,994,750
Aquinas Funding LLC
1.13% 10/1/03 25,000,000 25,000,000
Barton Capital Corporation
1.05% 11/13/03 10,000,000 9,987,458
1.06% 10/20/03 10,000,000 9,994,406
Beta Finance Inc.
1.03% 10/10/03 10,000,000 9,997,425
CAFCO LLC
1.07% 11/12/03 10,000,000 9,987,517
CBA (Delaware) Finance
1.07% 10/15/03 8,500,000 8,496,463
Ciesco LLC
1.06% 10/28/03 8,050,000 8,043,600
Eiffel Funding LLC
1.04% 10/14/03 10,000,000 9,996,244
1.07% 11/4/03 10,000,000 9,989,894
Fleet Funding Corporation
1.06% 10/8/03 11,849,000 11,846,558
Fortis Funding LLC
1.05% 10/1/03 10,000,000 10,000,000
Fountain Square Commercial
Funding Corporation
1.07% 10/2/03 20,000,000 19,999,406
1.13% 10/1/03 5,000,000 5,000,000
Gramercy Capital Corporation
1.03% 10/29/03 4,750,000 4,746,010
1.06% 10/8/03 10,000,000 9,997,939
Moat Funding LLC
1.07% 10/21/03 10,000,000 9,994,056
1.08% 11/20/03 10,000,000 9,985,000
Nationwide Life Insurance Company
1.06% 10/1/03 5,000,000 5,000,000
1.06% 10/8/03 12,400,000 12,397,444
Nordea North America Inc.
1.045% 10/22/03 10,000,000 9,993,904
1.07% 10/27/03 10,000,000 9,992,272
Sheffield Receivables
1.05% 10/16/03 15,000,000 14,993,417
Sigma Finance Inc.
1.04% 10/6/03 5,400,000 5,399,220
1.07% 11/12/03 10,000,000 9,987,517
1.12% 10/1/03 9,600,000 9,600,000
Surrey Funding Corporation
1.08% 10/20/03 9,000,000 8,994,870
Swiss RE Financial Products
1.06% 10/16/03 10,000,000 9,995,583
1.06% 11/20/03 10,000,000 9,985,278
Tasmania Public Finance
1.05% 10/2/03 21,500,000 21,499,373
Three Pillars Funding
1.06% 11/10/03 10,000,000 9,988,222
1.07% 10/1/03 10,000,000 10,000,000
Principal Market
Amount Value
- ---------------------------------------------------------------------------
Commercial Paper (continued)
- ---------------------------------------------------------------------------
Financial Services (continued)
UBS Finance LLC
1.11% 10/1/03 $25,000,000 $ 24,999,999
Wal-Mart Funding Corporation
1.05% 10/29/03 11,000,000 10,991,017
------------
411,851,800
------------
Industrial - 8.66%
BMW US Capital Corporation
1.12% 10/1/03 25,000,000 25,000,000
Koch Industries Inc.
1.10% 10/1/03 2,685,000 2,685,000
Total Fina Elf Capital
1.12% 10/1/03 25,000,000 25,000,000
------------
52,685,000
------------
Mortgage Bankers & Brokers - 13.95%
Bear Stearns
1.05% 11/4/03 10,000,000 9,990,083
ING Funding LLC
1.03% 10/8/03 11,000,000 10,997,797
1.06% 12/9/03 9,000,000 8,981,715
Morgan Stanley
1.06% 11/4/03 10,000,000 9,989,989
1.07% 12/8/03 10,000,000 9,979,789
NBNZ International Ltd.
1.12% 10/1/03 25,000,000 25,000,000
Svenska Handelsbank Inc.
1.06% 12/8/03 10,000,000 9,979,978
------------
84,919,351
------------
Other - 2.59%
University of California
1.06% 11/3/03 9,000,000 8,991,255
1.07% 11/5/03 6,800,000 6,792,992
------------
15,784,247
------------
Total Commercial Paper
(cost $565,240,398) 565,240,398
------------
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Certificates of Deposit- 5.18%
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First Tennessee Bank 1.06% 11/4/03 10,000,000 10,000,000
Wells Fargo Bank
1.06% 11/10/03 10,000,000 10,000,000
1.07% 11/4/03 11,500,000 11,500,000
------------
Total Certificates of Deposit
(cost $31,500,000) 31,500,000
------------
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*Floating Rate Notes- 0.82%
- ---------------------------------------------------------------------------
Credit Suisse First Boston
1.14% 10/9/03 5,000,000 5,000,000
------------
Total Floating Rate Notes
(cost $5,000,000) 5,000,000
------------
1
Statement Delaware Cash Reserve Fund
OF NET ASSETS (CONTINUED)
Total Market Value of Securities - 98.87%
(cost $601,740,398)** $601,740,398
Receivables and Other Assets
Net of Liabilities - 1.13% 6,895,256
------------
Net Assets Applicable to 608,987,480
Shares Outstanding - 100.00% $608,635,654
------------
Net Asset Value - Delaware Cash Reserve Class A
($528,778,439 / 529,078,701 Shares) $1.00
-----
Net Asset Value - Delaware Cash Reserve Class B
($30,139,760 / 30,162,912 Shares) $1.00
-----
Net Asset Value - Delaware Cash Reserve Class C
($12,529,130 / 12,535,224 Shares) $1.00
-----
Net Asset Value - Delaware Cash Reserve
Consultant Class
($37,188,325 / 37,210,643 Shares) $1.00
-----
Components of Net Assets at September 30, 2003:
Shares of beneficial interest
(unlimited authorization - no par) $608,987,499
Accumulated net realized loss on investments (351,845)
------------
Total net assets $608,635,654
------------
*Floating Rate Notes - the interest rate shown is the rate as of September 30,
2003 and the maturity date shown is the longer of the next interest
readjustment or the date the principal amount shown can be recovered through
demand.
**Also the cost for federal income tax purposes.
See accompanying notes
2
Statement Delaware Cash Reserve Fund
OF OPERATIONS Six Months Ended September 30, 2003 (Unaudited)
Investment Income:
Interest $3,527,589
----------
Expenses:
Management fees $1,341,319
Dividend disbursing and transfer agent fees and expenses 1,221,927
Distribution expenses -- Class B 165,430
Distribution expenses -- Class C 57,119
Distribution expenses -- Consultant Class 55,055
Accounting and administration expenses 129,000
Reports and statements to shareholders 70,766
Registration fees 37,788
Professional fees 17,250
Trustees' fees 16,200
Custodian fees 6,621
Other 80,696
-----------
3,199,171
Less expenses absorbed or waived (1,544,154)
Less waived distribution expenses-- Class B (62,457)
Less waived distribution expenses-- Class C (22,362)
Less waived distribution expenses-- Consultant Class (9,175)
Less expenses paid indirectly (8,717)
-----------
Total expenses 1,552,306
-----------
Net Investment Income 1,975,283
-----------
Net Realized Gain on Investments:
Net realized gain on investments 15,465
-----------
Net Increase in Net Assets Resulting from Operations $1,990,748
===========
See accompanying notes
3
Statements Delaware Cash Reserve Fund
OF CHANGES IN NET ASSETS
Six Months Year
Ended Ended
9/30/03 3/31/03
(Unaudited)
Increase (Decrease) in Net Assets from Operations:
Net investment income $ 1,975,283 $ 5,223,790
Net realized gain (loss) on investments 15,465 (367,310)
------------ ------------
Net increase in net assets resulting from operations 1,990,748 4,856,480
------------ ------------
Dividends to Shareholders from:
Net investment income:
Class A (1,870,286) (4,883,075)
Class B (15,205) (53,729)
Class C (5,390) (14,854)
Consultant Class (84,402) (272,132)
------------ ------------
(1,975,283) (5,223,790)
------------ ------------
Capital Share Transactions:
Proceeds from shares sold:
Class A 278,682,327 604,018,602
Class B 7,607,324 44,635,175
Class C 7,167,548 13,331,678
Consultant Class 11,200,414 42,344,790
Net asset value of shares issued upon reinvestment of dividends:
Class A 1,857,219 4,765,752
Class B 13,590 46,346
Class C 5,046 13,766
Consultant Class 86,136 270,255
------------ ------------
306,619,604 709,426,364
------------ ------------
Cost of shares repurchased:
Class A (290,244,177) (595,032,593)
Class B (14,507,151) (33,375,974)
Class C (5,067,769) (9,999,346)
Consultant Class (11,128,731) (40,176,626)
------------ ------------
(320,947,828) (678,584,539)
------------ ------------
Increase (decrease) in net assets derived from capital share transactions (14,328,224) 30,841,825
------------ ------------
Net Increase (Decrease) in Net Assets (14,312,759) 30,474,515
Net Assets:
Beginning of period 622,948,413 592,473,898
------------ ------------
End of period $608,635,654 $622,948,413
============ =============
See accompanying notes
4
Financial
HIGHLIGHTS
Selected data for each share of the Fund outstanding
throughout each period were as follows:
- -----------------------------------------------------------------------------------------------------------------------------------
Delaware Cash Reserve Fund Class A
- -----------------------------------------------------------------------------------------------------------------------------------
Six Months Year
Ended Ended
9/30/03(2) 3/31/03 3/31/02 3/31/01 3/31/00 3/31/99
(Unaudited)
Net asset value, beginning of period $1.000 $1.000 $1.000 $1.000 $1.000 $1.000
Income from investment operations:
Net investment income 0.004 0.009 0.026 0.056 0.046 0.045
------ ------ ------ ------ ------ ------
Total from investment operations 0.004 0.009 0.026 0.056 0.046 0.045
------ ------ ------ ------ ------ ------
Less dividends from:
Net investment income (0.004) (0.009) (0.026) (0.056) (0.046) (0.045)
------ ------ ------ ------ ------ ------
Total dividends (0.004) (0.009) (0.026) (0.056) (0.046) (0.045)
------ ------ ------ ------ ------ ------
Net asset value, end of period $1.000 $1.000 $1.000 $1.000 $1.000 $1.000
====== ====== ====== ====== ====== ======
Total return(1) 0.36% 0.92% 2.59% 5.75% 4.69% 4.61%
Ratios and supplemental data:
Net assets, end of period (000 omitted) $528,779 $538,469 $525,032 $548,006 $566,193 $588,249
Ratio of expenses to average net assets 0.45% 0.76% 0.92% 0.84% 0.91% 0.90%
Ratio of expenses to average net assets
prior to expense limitation and expenses paid indirectly 0.96% 0.99% 0.92% 0.84% 0.91% 0.90%
Ratio of net investment income to average net assets 0.71% 0.91% 2.56% 5.60% 4.59% 4.51%
Ratio of net investment income to average net assets
prior to expense limitation and expenses paid indirectly 0.20% 0.68% 2.56% 5.60% 4.59% 4.51%
(1) Total investment return is based on the change in net asset value of a
share during the period and assumes reinvestment of dividends at net asset
value. Total investment return reflects waivers and payment of fees by the
manager, as applicable. Performance would have been lower had the expense
limitation not been in effect.
(2) Ratios have been annualized and total return has not been annualized.
See accompanying notes
5
Financial
HIGHLIGHTS (CONTINUED)
Selected data for each share of the Fund outstanding
throughout each period were as follows:
- -----------------------------------------------------------------------------------------------------------------------------------
Delaware Cash Reserve Fund Class B
- -----------------------------------------------------------------------------------------------------------------------------------
Six Months Year
Ended Ended
9/30/03(2) 3/31/03 3/31/02 3/31/01 3/31/00 3/31/99
(Unaudited)
Net asset value, beginning of period $1.000 $1.000 $1.000 $1.000 $1.000 $1.000
Income from investment operations:
Net investment income 0.000 0.002 0.016 0.046 0.036 0.035
------ ------ ------ ------ ------ ------
Total from investment operations 0.000 0.002 0.016 0.046 0.036 0.035
------ ------ ------ ------ ------ ------
Less dividends from:
Net investment income (0.000) (0.002) (0.016) (0.046) (0.036) (0.035)
------ ------ ------ ------ ------ ------
Total dividends 0.000 (0.002) (0.016) (0.046) (0.036) (0.035)
------ ------ ------ ------ ------ ------
Net asset value, end of period $1.000 $1.000 $1.000 $1.000 $1.000 $1.000
====== ====== ====== ====== ====== ======
Total return(1) 0.05% 0.16% 1.57% 4.71% 3.65% 3.57%
Ratios and supplemental data:
Net assets, end of period (000 omitted) $30,140 $37,025 $25,744 $32,267 $23,349 $19,908
Ratio of expenses to average net assets 1.07% 1.51% 1.92% 1.84% 1.91% 1.90%
Ratio of expenses to average net assets
prior to expense limitation and expenses paid indirectly 1.96% 1.99% 1.92% 1.84% 1.91% 1.90%
Ratio of net investment income to average net assets 0.09% 0.16% 1.56% 4.60% 3.59% 3.51%
Ratio of net investment income (loss) to average net assets
prior to expense limitation and expenses paid indirectly (0.80%) (0.32%) 1.56% 4.60% 3.59% 3.51%
- -----------------------------------------------------------------------------------------------------------------------------------
Delaware Cash Reserve Fund Class C
- -----------------------------------------------------------------------------------------------------------------------------------
Six Months Year
Ended Ended
9/30/03(2) 3/31/03 3/31/02 3/31/01 3/31/00 3/31/99
(Unaudited)
Net asset value, beginning of period $1.000 $1.000 $1.000 $1.000 $1.000 $1.000
Income from investment operations:
Net investment income 0.000 0.002 0.016 0.046 0.036 0.035
------ ------ ------ ------ ------ ------
Total from investment operations 0.000 0.002 0.016 0.046 0.036 0.035
------ ------ ------ ------ ------ ------
Less dividends from:
Net investment income (0.000) (0.002) (0.016) (0.046) (0.036) (0.035)
------ ------ ------ ------ ------ ------
Total dividends 0.000 (0.002) (0.016) (0.046) (0.036) (0.035)
------ ------ ------ ------ ------ ------
Net asset value, end of period $1.000 $1.000 $1.000 $1.000 $1.000 $1.000
====== ====== ====== ====== ====== ======
Total return(1) 0.05% 0.16% 1.57% 4.71% 3.65% 3.58%
Ratios and supplemental data:
Net assets, end of period (000 omitted) $12,529 $10,424 $7,084 $6,893 $7,760 $11,134
Ratio of expenses to average net assets 1.07% 1.51% 1.92% 1.84% 1.91% 1.90%
Ratio of expenses to average net assets
prior to expense limitation and expenses paid indirectly 1.96% 1.99% 1.92% 1.84% 1.91% 1.90%
Ratio of net investment income to average net assets 0.09% 0.16% 1.56% 4.60% 3.59% 3.51%
Ratio of net investment income (loss) to average net assets
prior to expense limitation and expenses paid indirectly (0.80%) (0.32%) 1.56% 4.60% 3.59% 3.51%
(1) Total investment return is based on the change in net asset value of a
share during the period and assumes reinvestment of dividends at net asset
value and does not reflect the impact of a sales charge. Total investment
return reflects waivers and payment of fees by the manager and distributor,
as applicable. Performance would have been lower had the expense limitation
not been in effect.
(2) Ratios have been annualized and total return has not been annualized.
See accompanying notes
6
Financial
HIGHLIGHTS (CONTINUED)
Selected data for each share of the Fund outstanding
throughout each period were as follows:
- -----------------------------------------------------------------------------------------------------------------------------------
Delaware Cash Reserve Fund Consultant Class
- -----------------------------------------------------------------------------------------------------------------------------------
Six Months Year
Ended Ended
9/30/03(2) 3/31/03 3/31/02 3/31/01 3/31/00 3/31/99
(Unaudited)
Net asset value, beginning of period $1.000 $1.000 $1.000 $1.000 $1.000 $1.000
Income from investment operations:
Net investment income 0.002 0.007 0.023 0.054 0.043 0.043
------ ------ ------ ------ ------ ------
Total from investment operations 0.002 0.007 0.023 0.054 0.043 0.043
------ ------ ------ ------ ------ ------
Less dividends from:
Net investment income (0.002) (0.007) (0.023) (0.054) (0.043) (0.043)
------ ------ ------ ------ ------ ------
Total dividends (0.002) (0.007) (0.023) (0.054) (0.043) (0.043)
------ ------ ------ ------ ------ ------
Net asset value, end of period $1.000 $1.000 $1.000 $1.000 $1.000 $1.000
====== ====== ====== ====== ====== ======
Total return(1) 0.23% 0.67% 2.34% 5.49% 4.43% 4.35%
Ratios and supplemental data:
Net assets, end of period (000 omitted) $37,188 $37,030 $34,614 $36,783 $32,648 $42,732
Ratio of expenses to average net assets 0.70% 1.01% 1.17% 1.09% 1.16% 1.15%
Ratio of expenses to average net assets
prior to expense limitation and expenses paid indirectly 1.26% 1.24% 1.17% 1.09% 1.16% 1.15%
Ratio of net investment income to average net assets 0.46% 0.66% 2.31% 5.35% 4.34% 4.26%
Ratio of net investment income (loss) to average net assets
prior to expense limitation and expenses paid indirectly (0.10%) 0.43% 2.31% 5.35% 4.34% 4.26%
(1) Total investment return is based on the change in net asset value of a
share during the period and assumes reinvestment of dividends at net asset
value. Total investment return reflects waivers and payment of fees by the
manager and distributor, as applicable. Performance would have been lower
had the expense limitation not been in effect.
(2) Ratios have been annualized and total return has not been annualized.
See accompanying notes
7
Notes Delaware Cash Reserve Fund
TO FINANCIAL STATEMENTS September 30, 2003 (Unaudited)
Delaware Group Cash Reserve (the "Trust") is organized as a Delaware business
trust and offers one series, the Delaware Cash Reserve Fund (the "Fund"). The
Trust is an open-end investment company. The Fund is considered diversified
under the Investment Company Act of 1940, as amended, and offers Class A, Class
B, Class C and Consultant Class shares. Class A and Consultant Class shares are
not subject to a sales charge. Class B shares are sold with a contingent
deferred sales charge that declines from 4% to zero depending upon the period of
time the shares are held. Prior to May 30, 2003, Class B contingent deferred
sales charge declined from 5% to zero depending upon the period of time the
shares were held. Class B shares will automatically convert to Consultant Class
shares on a quarterly basis approximately eight years after purchase. Class C
shares are sold with a contingent deferred sales charge of 1%, if redeemed
during the first 12 months.
The investment objective of the Fund is to seek to provide maximum current
income, while preserving principal and maintaining liquidity.
1. Significant Accounting Policies
The following accounting policies are in accordance with accounting principles
generally accepted in the United States and are consistently followed by the
Fund.
Security Valuation -- Securities are valued at amortized cost, which
approximates market value.
Federal Income Taxes -- The Fund intends to continue to qualify for federal
income tax purposes as a regulated investment company and make the requisite
distributions to shareholders. Accordingly, no provision for federal income
taxes has been made in the financial statements.
Class Accounting -- Investment income and common expenses are allocated to the
classes of the Fund on the basis of "settled shares" of each class in relation
to the net assets of the Fund. Realized and unrealized gain (loss) on
investments are allocated to the various classes of the Fund on the basis of
daily net assets of each class. Distribution expenses relating to a specific
class are charged directly to that class.
Use of Estimates -- The preparation of financial statements in conformity with
accounting principles generally accepted in the United States requires
management to make estimates and assumptions that affect the reported amounts of
assets and liabilities at the date of the financial statements and the reported
amounts of revenues and expenses during the reporting period. Actual results
could differ from those estimates.
Other -- Expenses common to all funds within the Delaware Investments Family of
Funds are allocated amongst the funds on the basis of average net assets.
Security transactions are recorded on the date the securities are purchased or
sold (trade date). Costs used in calculating realized gains and losses on the
sale of investment securities are those of the specific securities sold.
Interest income is recorded on the accrual basis. Discounts and premiums are
amortized to interest income over the lives of the respective securities. The
Fund declares dividends from net investment income daily and pays such dividends
monthly.
Certain expenses of the Fund are paid through commission arrangements with
brokers. These transactions are done subject to best execution. The amount of
these expenses was approximately $7,296 for the period ended September 30, 2003.
In addition, the Fund receives earnings credits from its custodian when positive
cash balances are maintained, which are used to offset custody fees. The
earnings credits for the period ended September 30, 2003 were approximately
$1,421. The expenses paid under the above arrangements are included in their
respective expense captions on the Statement of Operations with the
corresponding expense offset shown as "expenses paid indirectly".
2. Investment Management, Administration Agreements and
Other Transactions with Affiliates
In accordance with the terms of its investment management agreement, the Fund
pays Delaware Management Company (DMC), a series of Delaware Management Business
Trust and the investment manager, an annual fee which is calculated daily at the
rate of 0.45% on the first $500 million of average daily net assets of the Fund,
0.40% on the next $500 million, 0.35% on the next $1.5 billion and 0.30% on the
average daily net assets in excess of $2.5 billion.
DMC has elected to waive that portion, if any, of its management fee and
reimburse the Fund to the extent necessary to ensure that annual operating
expenses, exclusive of taxes, interest, brokerage commissions, distribution
fees, certain insurance costs and extraordinary expenses, do not exceed 0.45% of
average daily net assets of the Fund.
Delaware Service Company, Inc. (DSC), an affiliate of DMC, provides accounting,
administration, dividend disbursing and transfer agent services. The Fund pays
DSC a monthly fee based on average net assets subject to certain minimums for
accounting and administration services. The Fund pays DSC a monthly fee based on
the number of shareholder accounts for dividend and disbursing and transfer
agent services. Prior to June 1, 2003, the monthly fee for dividend disbursing
and transfer agent services was based on the number of shareholder accounts and
shareholder transactions.
Pursuant to a distribution agreement and distribution plan, the Fund pays
Delaware Distributors, L.P. (DDLP), the distributor and an affiliate of DMC, an
annual distribution and service fee not to exceed 0.30% of the average daily net
assets of the Consultant Class shares and 1.00% of the average daily net assets
of the Class B and C shares. No distribution expenses are paid by Class A
shares. DDLP has contracted to waive distribution and service fees through May
31, 2004 in order to prevent distribution and service fees of Consultant Class
shares from exceeding 0.25% of average daily net assets. Effective June 25,
2003, DDLP has elected to waive its distribution and service fees in order to
prevent distribution fees of Class B and C shares from exceeding 0.50% of the
average daily net assets.
At September 30, 2003, the Fund had receivables from or liabilities payable to
affiliates as follows:
Investment management fee receivable from DMC $14,292
Dividend disbursing, transfer agent fees,
accounting and other expenses payable to DSC (87,424)
Other expenses payable to DMC and affiliates (19,163)
Certain officers of DMC, DSC and DDLP are officers and/or trustees of the Trust.
These officers and trustees are paid no compensation by the Fund.
8
Notes Delaware Cash Reserve Fund
TO FINANCIAL STATEMENTS (CONTINUED)
3. Dividend and Distribution Information
Income distributions are determined in accordance with federal income tax
regulations, which may differ from accounting principles generally accepted in
the United States. The tax character of dividends paid during the six months
ended September 30, 2003 and the year ended March 31, 2003 was as follows:
Six Months Year
Ended Ended
9/30/03* 3/31/03
---------- ----------
Ordinary income $1,975,283 $5,223,790
*Tax information for the period ended September 30, 2003, is an estimate and the
tax character of dividends may be redesignated at fiscal year end.
The components of net assets are estimated since final tax characteristics
cannot be determined until fiscal year end. As of September 30, 2003, the
estimated components of net assets on a tax basis were as follows:
Shares of beneficial interest $ 608,987,499
Undistributed net realized
capital gain on investments 15,465
Capital loss carryforwards (367,310)
-------------
Net assets $ 608,635,654
-------------
For federal income tax purposes, capital loss carryforwards may be carried
forward and applied against future capital gains. Such capital loss
carryforwards expire as follows: $367,310 in 2011.
4. Capital Shares
Transactions in capital shares were as follows:
Six Months Year
Ended Ended
9/30/03 3/31/03
Shares sold:
Class A 278,682,327 604,018,602
Class B 7,607,324 44,635,175
Class C 7,167,548 13,331,678
Consultant Class 11,200,414 42,344,790
Shares issued upon reinvestment of dividends:
Class A 1,857,201 4,765,752
Class B 13,589 46,346
Class C 5,046 13,766
Consultant Class 86,136 270,255
------------ ------------
306,619,585 709,426,364
------------ ------------
Shares repurchased:
Class A (290,244,177) (595,032,593)
Class B (14,507,151) (33,375,974)
Class C (5,067,769) (9,999,346)
Consultant Class (11,128,731) (40,176,626)
------------ ------------
(320,947,828) (678,584,539)
------------ ------------
Net increase (decrease) (14,328,243) 30,841,825
============ ============
For the period ended September 30, 2003 and the year ended March 31, 2003,
338,265 Class B shares were converted to 338,265 Consultant Class shares valued
at $338,265 and 142,819 Class B shares were converted to 142,819 Consultant
Class shares valued at $142,819, respectively. The respective amounts are
included in Class B redemptions and Consultant Class subscriptions in the table
above and the Statements of Changes in Net Assets.
9
Delaware
Investments(SM)
- --------------------------------------
A member of Lincoln Financial Group(R)
This semiannual report is for the information of Delaware Cash Reserve Fund
shareholders, but it may be used with prospective investors when preceded or
accompanied by a current prospectus for Delaware Cash Reserve Fund and the
Delaware Investments Performance Update for the most recently completed calendar
quarter. The prospectus sets forth details about charges, expenses, investment
objectives, and operating policies of the Fund. You should read the prospectus
carefully before you invest. The figures in this report represent past results
which are not a guarantee of future results. The return and principal value of
an investment in the Fund will fluctuate so that shares, when redeemed, may be
worth more or less than their original cost.
Board of Trustees Affiliated Officers Contact Information
Jude T. Driscoll Joseph H. Hastings Investment Manager
Chairman Executive Vice President and Delaware Management Company
Delaware Investments Family of Funds Chief Financial Officer Philadelphia, PA
Philadelphia, PA Delaware Investments Family of Funds
Philadelphia, PA International Affiliate
Walter P. Babich Delaware International Advisers Ltd.
Board Chairman Richelle S. Maestro London, England
Citadel Construction Corporation Senior Vice President,
King of Prussia, PA Chief Legal Officer and Secretary National Distributor
Delaware Investments Family of Funds Delaware Distributors, L.P.
John H. Durham Philadelphia, PA Philadelphia, PA
Private Investor
Gwynedd Valley, PA Michael P. Bishof Shareholder Servicing, Dividend
Senior Vice President and Treasurer Disbursing and Transfer Agent
John A. Fry Delaware Investments Family of Funds Delaware Service Company, Inc.
President Philadelphia, PA 2005 Market Street
Franklin & Marshall College Philadelphia, PA 19103-7094
Lancaster, PA
For Shareholders
Anthony D. Knerr 800 523-1918
Managing Director
Anthony Knerr & Associates For Securities Dealers and Financial
New York, NY Institutions Representatives Only
800 362-7500
Ann R. Leven
Former Treasurer/Chief Fiscal Officer Web site
National Gallery of Art www.delawareinvestments.com
Washington, DC
Thomas F. Madison
President and Chief Executive Officer --------------------------------------------------------------------------------
MLM Partners, Inc. A description of the policies and procedures that the Fund uses to determine how
Minneapolis, MN to vote proxies (if any) relating to portfolio securities is available without
charge (i) upon request, by calling 800-523-1918; (ii) on the Fund's website at
Janet L. Yeomans http://www.delawareinvestments.com; and (iii) on the Commission's website at
Vice President/Mergers & Acquisitions http://www.sec.gov.; and beginning no later than August 31, 2004, information
3M Corporation (if any) regarding how the Fund voted proxies relating to portfolio securities
St. Paul, MN during the most recent 12-month period ended June 30 is available without charge
(i) through the Fund's website at http://www.delawareinvestments.com; and
(ii) on the Commission's website at http://www.sec.gov.
--------------------------------------------------------------------------------
(8333) Printed in the USA
SA-008 [9/03] IVES 11/03 J9434 EXP: 11/04
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. [Reserved]
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End
Management Investment Companies
Not applicable.
Item 8. [Reserved]
Item 9. 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 registrant's last fiscal
half-year that have materially affected, or are reasonably likely to materially
affect, the registrant's internal control over financial reporting.
Item 10. 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.
(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:
JUDE T. DRISCOLL
- ------------------------------
By: Jude T. Driscoll
-----------------------
Title: Chairman
Date: _______________________
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.
JUDE T. DRISCOLL
- ------------------------------
By: Jude T. Driscoll
Title: Chairman
Date: _______________________
JOSEPH H. HASTINGS
- ------------------------------
By: Joseph H. Hastings
Title: Chief Financial Officer
Date: _______________________