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:
David F. Connor, Esq.
2005 Market Street
Philadelphia, PA 19103
Registrant's telephone number, including area code: (800) 523-1918
Date of fiscal year end: March 31
Date of reporting period: September 30, 2005
Item 1. Reports to Stockholders
Delaware
Investments(R)
-----------------------------------
A member of Lincoln Financial Group
FIXED INCOME
SEMIANNUAL REPORT SEPTEMBER 30, 2005
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DELAWARE CASH RESERVE FUND
[Logo]POWERED BY RESEARCH(R)
TABLE
OF CONTENTS
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DISCLOSURE OF FUND EXPENSES 1
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SECTOR ALLOCATION 2
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FINANCIAL STATEMENTS:
Statement of Net Assets 3
Statement of Operations 5
Statements of Changes in Net Assets 6
Financial Highlights 7
Notes to Financial Statements 11
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OTHER FUND INFORMATION 13
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ABOUT THE ORGANIZATION 15
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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) 2005 Delaware Distributors, L.P.
DISCLOSURE For the Period April 1, 2005 to September 30, 2005
OF FUND EXPENSES
As a shareholder of the Fund, you may incur two types of costs: (1) transaction
costs, including sales charges (loads) on purchase payments, reinvested
dividends, or other distributions; redemption fees; and exchange fees; and (2)
ongoing costs, including management fees; distribution and/or service (12b-1)
fees; and other fund expenses. This example is intended to help you understand
your ongoing costs (in dollars) of investing in the Fund and to compare these
costs with the ongoing costs of investing in other mutual funds.
The example is based on an investment of $1,000 invested at the beginning of the
period and held for the entire period April 1, 2005 to September 30, 2005.
ACTUAL EXPENSES
The first section of the table shown, "Actual Fund Return," provides information
about actual account values and actual expenses. You may use the information in
this section of the table, together with the amount you invested, to estimate
the expenses that you paid over the period. Simply divide your account value by
$1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then
multiply the result by the number in the first section under the heading
entitled "Expenses Paid During Period" to estimate the expenses you paid on your
account during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second section of the table shown, "Hypothetical 5% Return," provides
information about hypothetical account values and hypothetical expenses based on
the Fund's actual expense ratio and an assumed rate of return of 5% per year
before expenses, which is not the Fund's actual return. The hypothetical account
values and expenses may not be used to estimate the actual ending account
balance or expenses you paid for the period. You may use this information to
compare the ongoing costs of investing in the Fund and other funds. To do so,
compare this 5% hypothetical example with the 5% hypothetical examples that
appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and 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 actual expenses shown in the table reflect fee waivers in
effect. The expenses shown in the table assume reinvestment of all dividends and
distributions.
DELAWARE CASH RESERVE FUND
EXPENSE ANALYSIS OF AN INVESTMENT OF $1,000
Expenses
Beginning Ending Paid During
Account Account Annualized Period
Value Value Expense 4/1/05 to
4/1/05 9/30/05 Ratio 9/30/05*
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ACTUAL FUND RETURN
Class A $1,000.00 $1,013.00 0.67% $3.38
Class B 1,000.00 1,009.20 1.41% 7.10
Class C 1,000.00 1,009.20 1.41% 7.10
Consultant Class 1,000.00 1,011.70 0.91% 4.59
- -----------------------------------------------------------------------------------------------------------
HYPOTHETICAL 5% RETURN (5% return before expenses)
Class A $1,000.00 $1,021.71 0.67% $3.40
Class B 1,000.00 1,018.00 1.41% 7.13
Class C 1,000.00 1,018.00 1.41% 7.13
Consultant Class 1,000.00 1,020.51 0.91% 4.61
- -----------------------------------------------------------------------------------------------------------
* "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).
1
SECTOR ALLOCATION As of September 30, 2005
DELAWARE CASH RESERVE FUND
Sector designations may be different than the sector designations presented in
other Fund materials.
PERCENTAGE
SECTOR OF NET ASSETS
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DISCOUNTED COMMERCIAL PAPER 83.69%
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Colleges & Universities 3.96%
Financial Services 48.04%
Industrial 4.49%
Mortgage Bankers & Brokers 25.16%
Sovereign Agency 2.04%
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CERTIFICATES OF DEPOSIT 10.22%
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INTEREST BEARING COMMERCIAL PAPER 2.04%
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VARIABLE RATE DEMAND NOTES 2.66%
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TOTAL MARKET VALUE OF SECURITIES 98.61%
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RECEIVABLES AND OTHER ASSETS NET OF LIABILITIES 1.39%
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TOTAL NET ASSETS 100.00%
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2
STATEMENT DELAWARE CASH RESERVE FUND
OF NET ASSETS September 30, 2005 (Unaudited)
Principal Market
Amount Value
(not =)DISCOUNTED COMMERCIAL PAPER - 83.69%
Colleges & Universities - 3.96%
Leland Stanford Junior University
3.762% 11/9/05 $15,000,000 $ 14,939,225
University of California 3.906% 1/10/06 4,500,000 4,451,267
------------
19,390,492
------------
Financial Services - 48.04%
*Barton Capital
3.65% 10/18/05 10,000,000 9,982,858
3.786% 10/13/05 10,448,000 10,434,836
CBA Finance 3.754% 11/14/05 8,900,000 8,859,535
*Eiffel Funding
3.663% 10/11/05 9,306,000 9,296,565
3.693% 10/25/05 5,000,000 4,987,767
3.897% 12/19/05 7,000,000 6,940,706
*Eureka Securitization 3.823% 11/16/05 7,000,000 6,966,011
*Fountain Square
3.791% 11/15/05 12,863,000 12,802,383
3.879% 12/27/05 8,000,000 7,925,953
ING America Insurance Holdings
3.775% 11/21/05 10,000,000 9,947,017
*Moat Funding 3.803% 10/5/05 10,000,000 9,995,778
Nationwide Life 3.645% 10/17/05 10,000,000 9,983,911
Prudential
3.722% 11/28/05 6,880,000 6,839,098
3.764% 11/18/05 9,000,000 8,955,240
Rabobank USA Finance 3.871% 10/3/05 22,000,000 21,995,270
*Sheffield Receivables 3.794% 10/7/05 5,300,000 5,296,652
*Starbird Funding 3.688% 10/24/05 10,000,000 9,976,553
*Steamboat Funding 3.882% 10/5/05 22,000,000 21,990,516
*Surrey Funding 3.901% 10/3/05 10,023,000 10,020,828
Swiss RE Financial Products
3.959% 2/1/06 10,000,000 9,867,092
*Three Pillars Funding
3.766% 10/26/05 10,000,000 9,973,958
UBS Finance 3.861% 10/3/05 22,000,000 21,995,283
------------
235,033,810
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Industrial - 4.49%
BP Amoco Capital 3.861% 10/3/05 22,000,000 21,995,282
------------
21,995,282
------------
Mortgage Bankers & Brokers - 25.16%
Credit Suisse First Boston
3.491% 11/21/05 8,000,000 7,961,013
3.746% 11/16/05 7,000,000 6,966,816
3.942% 1/23/06 5,000,000 4,938,408
Depfa Bank 3.976% 2/21/06 8,000,000 7,875,749
Goldman Sachs 3.802% 10/3/05 12,000,000 11,997,467
HBOS Treasury Services
3.765% 11/18/05 4,600,000 4,577,061
ING Funding 3.715% 12/6/05 10,000,000 9,932,533
Lehman Brothers Holdings
3.881% 10/3/05 17,200,000 17,196,293
Morgan Stanley
3.867% 11/9/05 6,400,000 6,373,307
3.902% 10/4/05 15,600,000 15,594,930
Nordea North America
3.704% 12/6/05 10,000,000 9,932,717
3.930% 1/19/06 10,000,000 9,881,444
Westpac Capital 3.974% 2/13/06 10,000,000 9,853,750
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123,081,488
------------
Principal Market
Amount Value
(not =)DISCOUNTED COMMERCIAL PAPER (continued)
Sovereign Agency - 2.04%
Swedish National Finance (Sweden)
3.64% 10/11/05 $10,000,000 $ 9,989,944
------------
9,989,944
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TOTAL DISCOUNTED COMMERCIAL PAPER
(cost $409,491,016) 409,491,016
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CERTIFICATES OF DEPOSIT - 10.22%
oBank of America 3.81% 6/7/06 10,000,000 10,000,000
(not =)First Tennessee Bank
3.62% 10/14/05 10,000,000 10,000,000
3.82% 11/21/05 10,000,000 10,000,000
(not =)Lloyds TSB Bank New York
3.88% 12/28/05 10,000,000 10,000,000
oWashington Mutual Bank
3.67% 5/31/06 10,000,000 10,000,000
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TOTAL CERTIFICATES OF DEPOSIT
(cost $50,000,000) 50,000,000
------------
oINTEREST BEARING COMMERCIAL PAPER - 2.04%
Goldman Sachs 3.86% 8/7/06 10,000,000 10,000,000
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TOTAL INTEREST BEARING COMMERCIAL PAPER
(cost $10,000,000) 10,000,000
------------
oVARIABLE RATE DEMAND NOTES - 2.66%
North Texas Higher Education Authority
3.84% 12/1/44 (AMBAC) 8,000,000 8,000,000
PCP Investors 3.88% 12/1/24 2,000,000 2,000,000
Stephens & Stephens 3.90% 11/1/34 3,000,000 3,000,000
------------
TOTAL VARIABLE RATE DEMAND NOTES
(cost $13,000,000) 13,000,000
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TOTAL MARKET VALUE OF SECURITIES - 98.61%
(cost $482,491,016)^ 482,491,016
RECEIVABLES AND OTHER ASSETS NET OF LIABILITIES - 1.39% 6,794,008
------------
NET ASSETS APPLICABLE TO 489,630,922 SHARES
OUTSTANDING - 100.00% $489,285,024
============
Net Asset Value - Delaware Cash Reserve Fund
Class A ($445,404,054 / 445,697,693 Shares) $1.00
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Net Asset Value - Delaware Cash Reserve Fund
Class B ($14,960,606 / 14,983,770 Shares) $1.00
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Net Asset Value - Delaware Cash Reserve Fund
Class C ($9,306,044 / 9,312,567 Shares) $1.00
-----
Net Asset Value - Delaware Cash Reserve Fund
Consultant Class ($19,614,320 / 19,636,892 Shares) $1.00
-----
3
STATEMENT DELAWARE CASH RESERVE FUND
OF NET ASSETS (CONTINUED)
COMPONENTS OF NET ASSETS AT SEPTEMBER 30, 2005:
Shares of beneficial interest
(unlimited authorization - no par) $489,631,089
Undistributed net investment income 1,961
Accumulated net realized loss on investments (348,026)
------------
Total net assets $489,285,024
============
(not =)The interest rate shown is the effective yield as of the time of
purchase.
*Asset-backed Commercial Paper.
^Also the cost for federal income tax purposes.
oVariable rate notes. The interest rate shown is the rate as of September 30,
2005.
SUMMARY OF ABBREVIATION:
AMBAC - Insured by the AMBAC Assurance Corporation
See accompanying notes
4
STATEMENT DELAWARE CASH RESERVE FUND
OF OPERATIONS Six Months Ended September 30, 2005 (Unaudited)
INVESTMENT INCOME:
Interest $7,620,252
----------
EXPENSES:
Management fees 1,052,477
Dividend disbursing and transfer agent fees and expenses 439,332
Distribution expenses - Class B 72,794
Distribution expenses - Class C 36,428
Distribution expenses - Consultant Class 29,150
Accounting and administration expenses 87,697
Reports and statements to shareholders 43,102
Insurance fees 35,423
Legal and professional fees 33,881
Registration fees 21,033
Trustees' fees 12,010
Custodian fees 5,197
Pricing fees 779
Taxes (other than taxes on income) 695
Other 3,608 1,873,606
Less expenses absorbed or waived --------- (156,389)
Less waived distribution expenses -- Class B (11,050)
Less waived distribution expenses -- Class C (5,484)
Less waived distribution expenses -- Consultant Class (4,858)
Less expense paid indirectly (1,246)
----------
Total operating expenses 1,694,579
----------
NET INVESTMENT INCOME 5,925,673
----------
NET REALIZED GAIN ON INVESTMENTS:
Net Realized Gain on Investments 750
----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $5,926,423
==========
See accompanying notes
5
STATEMENTS DELAWARE CASH RESERVE FUND
OF CHANGES IN NET ASSETS
Six Months Year
Ended Ended
9/30/05 3/31/05
(Unaudited)
INCREASE IN NET ASSETS FROM OPERATIONS:
Net investment income $ 5,925,673 $ 5,931,994
Net realized gain on investments 750 3,573
------------ ------------
Net increase in net assets resulting from operations 5,926,423 5,935,567
------------ ------------
DIVIDENDS TO SHAREHOLDERS FROM:
Net investment income:
Class A (5,468,010) (5,504,334)
Class B (153,144) (135,870)
Class C (76,760) (64,220)
Consultant Class (225,798) (227,570)
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(5,923,712) (5,931,994)
------------ ------------
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold:
Class A 253,895,300 669,359,865
Class B 4,439,452 15,751,441
Class C 6,981,131 11,940,121
Consultant Class 4,773,829 20,542,359
Net asset value of shares issued upon reinvestment of dividends:
Class A 5,247,120 5,221,123
Class B 132,167 112,292
Class C 70,637 56,890
Consultant Class 218,083 215,023
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275,757,719 723,199,114
------------ ------------
Cost of shares repurchased:
Class A (250,293,845) (723,689,725)
Class B (7,365,682) (19,891,833)
Class C (7,479,822) (12,555,278)
Consultant Class (5,209,231) (33,253,549)
------------ ------------
(270,348,580) (789,390,385)
------------ ------------
Increase (decrease) in net assets derived from capital share transactions 5,409,139 (66,191,271)
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS 5,411,850 (66,187,698)
NET ASSETS:
Beginning of period 483,873,174 550,060,872
------------ ------------
End of period (including undistributed net investment income of $1,961 and $--, respectively) $489,285,024 $483,873,174
============ ============
See accompanying notes
6
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
9/30/05(1) 3/31/05 3/31/04 3/31/03 3/31/02 3/31/01
(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 0.013 0.012 0.007 0.009 0.026 0.056
------ ------ ------ ------ ------ ------
Total from investment operations 0.013 0.012 0.007 0.009 0.026 0.056
------ ------ ------ ------ ------ ------
LESS DIVIDENDS FROM:
Net investment income (0.013) (0.012) (0.007) (0.009) (0.026) (0.056)
------ ------ ------ ------ ------ ------
Total dividends (0.013) (0.012) (0.007) (0.009) (0.026) (0.056)
------ ------ ------ ------ ------ ------
Net asset value, end of period $1.000 $1.000 $1.000 $1.000 $1.000 $1.000
====== ====== ====== ====== ====== ======
TOTAL RETURN(2) 1.30% 1.21% 0.67% 0.92% 2.59% 5.75%
RATIOS AND SUPPLEMENTAL DATA:
Net assets, end of period (000 omitted) $445,404 $436,552 $485,657 $538,469 $525,032 $548,006
Ratio of expenses to average net assets 0.67% 0.56% 0.45% 0.76% 0.92% 0.84%
Ratio of expenses to average net assets prior to expense
limitation and expense paid indirectly 0.74% 0.78% 0.93% 0.99% 0.92% 0.84%
Ratio of net investment income to average net assets 2.58% 1.17% 0.67% 0.91% 2.56% 5.60%
Ratio of net investment income to average net assets prior
to expense limitation and expense paid indirectly 2.51% 0.95% 0.19% 0.68% 2.56% 5.60%
(1) Ratios have been annualized and total return has not been annualized.
(2) 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.
See accompanying notes
7
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
9/30/05(1) 3/31/05 3/31/04 3/31/03 3/31/02 3/31/01
(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 0.009 0.007 0.001 0.002 0.016 0.046
------ ------ ------ ------ ------ ------
Total from investment operations 0.009 0.007 0.001 0.002 0.016 0.046
------ ------ ------ ------ ------ ------
LESS DIVIDENDS FROM:
Net investment income (0.009) (0.007) (0.001) (0.002) (0.016) (0.046)
------ ------ ------ ------ ------ ------
Total dividends (0.009) (0.007) (0.001) (0.002) (0.016) (0.046)
------ ------ ------ ------ ------ ------
NET ASSET VALUE, END OF PERIOD $1.000 $1.000 $1.000 $1.000 $1.000 $1.000
====== ====== ====== ====== ====== ======
TOTAL RETURN(2) 0.92% 0.70% 0.11% 0.16% 1.57% 4.71%
RATIOS AND SUPPLEMENTAL DATA:
Net assets, end of period (000 omitted) $14,961 $17,755 $21,783 $37,025 $25,744 $32,267
Ratio of expenses to average net assets 1.41% 1.06% 1.02% 1.51% 1.92% 1.84%
Ratio of expenses to average net assets prior to expense
limitation and expense paid indirectly 1.62% 1.78% 1.93% 1.99% 1.92% 1.84%
Ratio of net investment income to average net assets 1.85% 0.67% 0.10% 0.16% 1.56% 4.60%
Ratio of net investment income (loss) to average net assets
prior to expense limitation and expense paid indirectly 1.64% (0.05%) (0.81%) (0.32%) 1.56% 4.60%
(1) Ratios have been annualized and total return has not been annualized.
(2) 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.
See accompanying notes
8
FINANCIAL
HIGHLIGHTS (CONTINUED)
Selected data for each share of the Fund outstanding
throughout each period were as follows:
- ------------------------------------------------------------------------------------------------------------------------------------
Delaware Cash Reserve Fund Class C
- ------------------------------------------------------------------------------------------------------------------------------------
Six Months Year
Ended Ended
9/30/05(1) 3/31/05 3/31/04 3/31/03 3/31/02 3/31/01
(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 0.009 0.007 0.001 0.002 0.016 0.046
------ ------ ------ ------ ------ ------
Total from investment operations 0.009 0.007 0.001 0.002 0.016 0.046
------ ------ ------ ------ ------ ------
LESS DIVIDENDS FROM:
Net investment income (0.009) (0.007) (0.001) (0.002) (0.016) (0.046)
------ ------ ------ ------ ------ ------
Total dividends (0.009) (0.007) (0.001) (0.002) (0.016) (0.046)
------ ------ ------ ------ ------ ------
NET ASSET VALUE, END OF PERIOD $1.000 $1.000 $1.000 $1.000 $1.000 $1.000
====== ====== ====== ====== ====== ======
TOTAL RETURN(2) 0.92% 0.70% 0.11% 0.16% 1.57% 4.71%
RATIOS AND SUPPLEMENTAL DATA:
Net assets, end of period (000 omitted) $9,306 $9,734 $10,293 $10,424 $7,084 $6,893
Ratio of expenses to average net assets 1.41% 1.06% 1.02% 1.51% 1.92% 1.84%
Ratio of expenses to average net assets prior to expense
limitation and expense paid indirectly 1.62% 1.78% 1.93% 1.99% 1.92% 1.84%
Ratio of net investment income to average net assets 1.85% 0.67% 0.10% 0.16% 1.56% 4.60%
Ratio of net investment income (loss) to average net assets
prior to expense limitation and expense paid indirectly 1.64% (0.05%) (0.81%) (0.32%) 1.56% 4.60%
(1) Ratios have been annualized and total return has not been annualized.
(2) 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.
See accompanying notes
9
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
9/30/05(1) 3/31/05 3/31/04 3/31/03 3/31/02 3/31/01
(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 0.012 0.010 0.004 0.007 0.023 0.054
------ ------ ------ ------ ------ ------
Total from investment operations 0.012 0.010 0.004 0.007 0.023 0.054
------ ------ ------ ------ ------ ------
LESS DIVIDENDS FROM:
Net investment income (0.012) (0.010) (0.004) (0.007) (0.023) (0.054)
------ ------ ------ ------ ------ ------
Total dividends (0.012) (0.010) (0.004) (0.007) (0.023) (0.054)
------ ------ ------ ------ ------ ------
NET ASSET VALUE, END OF PERIOD $1.000 $1.000 $1.000 $1.000 $1.000 $1.000
====== ====== ====== ====== ====== ======
TOTAL RETURN(2) 1.17% 0.95% 0.42% 0.67% 2.34% 5.49%
RATIOS AND SUPPLEMENTAL DATA:
Net assets, end of period (000 omitted) $19,614 $19,832 $32,328 $37,030 $34,614 $36,783
Ratio of expenses to average net assets 0.91% 0.81% 0.70% 1.01% 1.17% 1.09%
Ratio of expenses to average net assets prior to expense
limitation and expense paid indirectly 1.04% 1.08% 1.23% 1.24% 1.17% 1.09%
Ratio of net investment income to average net assets 2.35% 0.92% 0.42% 0.66% 2.31% 5.35%
Ratio of net investment income (loss) to average net assets
prior to expense limitation and expense paid indirectly 2.22% 0.65% (0.11%) 0.43% 2.31% 5.35%
(1) Ratios have been annualized and total return has not been annualized.
(2) 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.
See accompanying notes
10
NOTES DELAWARE CASH RESERVE FUND
TO FINANCIAL STATEMENTS September 30, 2005 (Unaudited)
Delaware Group Cash Reserve (the "Trust") is organized as a Delaware statutory
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. 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 U.S. generally accepted
accounting principles 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
U.S. generally accepted accounting principles 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(R) Family
of Funds are allocated amongst the funds on the basis of average net assets.
Management fees and some other expenses are paid monthly. 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
daily from net investment income and pays such dividends monthly and declares
and pays distributions from net realized gain on investments, if any, annually.
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 six months ended September 30, 2005 were approximately $1,246.
The expense paid under the above arrangement is included in custodian fees on
the Statement of Operations with the corresponding expense offset shown as
"expense 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.
Effective July 1, 2005, 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 0.70% of average daily net assets of the Fund, which can be revoked at
any time. Prior to July 1, 2005, DMC had elected to waive its fees in order to
prevent such expenses from exceeding 0.65% of the 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. Effective May
19, 2005, the Fund pays DSC a monthly fee computed at the annual rate of 0.04%
of the Fund's average daily net assets for accounting and administration
services. Prior to May 19, 2005, the Fund paid 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 disbursing and transfer agent services.
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. Class A shares pay no distribution and service
expenses. DDLP has elected to waive distribution and service fees in order to
prevent these fees from exceeding 0.25% of average daily net assets for
Consultant Class shares. This waiver may be revoked at any time. Prior to July
1, 2005, DDLP had elected to waive distribution and service fees in order to
prevent these fees from exceeding 0.50% of average daily net assets for Class B
and C shares.
At September 30, 2005, the Fund had liabilities payable to affiliates as
follows:
Investment management fee payable to DMC $177,845
Dividend disbursing, transfer agent,
accounting and administration fees and
other expenses payable to DSC 128,003
Other expenses payable to DMC and affiliates* 29,538
*DMC, as part of its administrative services, pays operating expenses on behalf
of the Fund and is reimbursed on a periodic basis. Such expenses include items
such as printing of shareholder reports, fees for audit, legal and tax
services, registration fees and trustees' fees.
As provided in the investment management agreement, the Fund bears the cost of
certain legal services expenses, including internal legal services provided to
the Fund by DMC employees. For the six months ended September 30, 2005, the
Delaware Cash Reserve Fund was charged $11,728 for internal legal services
provided by DMC.
11
NOTES DELAWARE CASH RESERVE FUND
TO FINANCIAL STATEMENTS (CONTINUED)
2. INVESTMENT MANAGEMENT, ADMINISTRATION AGREEMENTS AND
OTHER TRANSACTIONS WITH AFFILIATES (CONTINUED)
For the six months ended September 30, 2005, DDLP received gross contingent
deferred sales charge commissions of $47,109 and $1,491 on redemption of the
Fund's Class B and Class C shares, respectively. These commissions were entirely
used to offset up-front commissions previously paid by DDLP to broker-dealers on
sales of those shares.
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.
3. DIVIDEND AND DISTRIBUTION INFORMATION
Income distributions are determined in accordance with federal income tax
regulations, which may differ from U.S. generally accepted accounting
principles. Additionally, net short-term gains on sales of investment securities
are treated as ordinary income for federal income tax purposes. The tax
character of dividends paid during the six months ended September 30, 2005 and
the year ended March 31, 2005 was as follows:
Six Months Year
Ended Ended
9/30/05* 3/31/05
----------- ----------
Ordinary income $5,923,712 $5,931,994
*Tax information for the six months ended September 30, 2005 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, 2005, the
estimated components of net assets on a tax basis were as follows:
Shares of beneficial interest $489,631,089
Undistributed ordinary income 1,961
Capital loss carryforwards (348,026)
------------
Net assets $489,285,024
============
For federal income tax purposes, capital loss carryforwards may be carried
forward and applied against future capital gains. Capital loss carryforwards at
March 31, 2005 will expire as follows: $348,776 expires in 2011.
For the six months ended September 30, 2005, the Fund had capital gains of $750
which may reduce the capital loss carryforwards.
4. CAPITAL SHARES
Transactions in capital shares were as follows:
Six Months Year
Ended Ended
9/30/05 3/31/05
Shares sold:
Class A 253,895,299 669,359,865
Class B 4,439,453 15,751,441
Class C 6,981,130 11,940,121
Consultant Class 4,773,829 20,542,359
Shares issued upon reinvestment of dividends:
Class A 5,247,120 5,221,081
Class B 132,167 112,291
Class C 70,637 56,890
Consultant Class 218,083 215,023
------------ ------------
275,757,718 723,199,071
------------ ------------
Shares repurchased:
Class A (250,293,844) (723,689,725)
Class B (7,365,682) (19,891,832)
Class C (7,479,926) (12,555,278)
Consultant Class (5,209,231) (33,253,549)
------------ ------------
(270,348,683) (789,390,384)
------------ ------------
Net increase (decrease) 5,409,035 (66,191,313)
============ ============
For the six months ended September 30, 2005 and the year ended March 31, 2005,
731,494 Class B shares were converted to 731,494 Consultant Class shares valued
at $731,494 and 580,569 Class B shares were converted to 580,569 Consultant
Class shares valued at $580,569, 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.
5. CREDIT AND MARKET RISKS
An Investment in the Fund is not insured or guaranteed by the Federal Deposit
Insurance Corporation or any other government agency. Although the Fund seeks to
preserve the value of your investment at $1.00 per share, it is possible to lose
money by investing in the Fund.
6. CONTRACTUAL OBLIGATIONS
The Fund enters into contracts in the normal course of business that contain a
variety of indemnifications. The Fund's maximum exposure under these
arrangements is unknown. However, the Fund has not had prior claims or losses
pursuant to these contracts. Management has reviewed the Fund's existing
contracts and expects the risk of loss to be remote.
12
OTHER DELAWARE CASH RESERVE FUND
FUND INFORMATION
BOARD CONSIDERATION OF DELAWARE CASH RESERVE FUND INVESTMENT ADVISORY AGREEMENT
At a meeting held on May 18-19, 2005 (the "Annual Meeting"), the Board of
Trustees, including a majority of disinterested or independent Trustees,
approved the renewal of the Investment Advisory Agreement for the Delaware Cash
Reserve Fund (the "Fund"). In making its decision, the Board considered
information furnished throughout the year at regular Board meetings, as well as
information prepared specifically in connection with the Annual Meeting.
Information furnished and discussed throughout the year included reports
detailing Fund performance, investment strategies, expenses, compliance matters
and other services provided by Delaware Management Company ("DMC"), the
investment advisor. Information furnished specifically in connection with the
Annual Meeting included materials provided by DMC and its affiliates ("Delaware
Investments") concerning, among other things, the level of services provided to
the Fund, the costs of such services to the Fund, economies of scale and the
financial condition and profitability of Delaware Investments. In addition, in
connection with the Annual Meeting, the Board separately received and reviewed
independent historical and comparative reports prepared by Lipper Inc.
("Lipper"), an independent statistical compilation organization. The Lipper
reports compared the Fund's investment performance and expenses with those of
other comparable mutual funds. The Board also requested and received certain
supplemental information regarding management's policy with respect to advisory
fee levels and its philosophy with respect to breakpoints; the structure of
portfolio manager compensation; the investment manager's profitability organized
by client type, including the Fund; and any constraints or limitations on the
availability of securities in certain investment styles which might inhibit the
advisor's ability to fully invest in accordance with the Fund's policies.
In considering such materials, the independent Trustees received assistance and
advice from and met separately with independent counsel and representatives from
Lipper. At the meeting with representatives from Lipper, Jude Driscoll, Chairman
of the Delaware Investments(R) Family of Funds, and Chairman and Chief Executive
Officer of the investment advisor, was present to respond to questions raised by
Lipper and the independent Trustees. While the Board considered the Investment
Advisory Agreements for all of the funds in the Delaware Investments(R) Family
of Funds at the same Board meeting, information was provided and considered by
the Board for each fund individually. In approving the continuance of the
Investment Advisory Agreement for the Fund, the Board, including a majority of
independent Trustees, determined that the existing advisory fee structure was
fair and reasonable and that the continuance of the Investment Advisory
Agreement was in the best interests of the Fund and its shareholders. While
attention was given to all information furnished, the following discusses the
primary factors relevant to the Board's deliberations and determination,
including those relating to the selection of the investment advisor and the
approval of the advisory fee.
NATURE, EXTENT AND QUALITY OF SERVICE. Consideration was given to the services
provided by Delaware Investments to the Fund and its shareholders. In reviewing
the nature, extent and quality of services, the Board emphasized reports
furnished to it throughout the year at regular Board meetings covering matters
such as the compliance of portfolio managers with the investment policies,
strategies and restrictions for the Fund, the compliance of management personnel
with the Code of Ethics adopted throughout the Delaware Investments Family of
Funds complex, the adherence to fair value pricing procedures as established by
the Board, and the accuracy of net asset value calculations.The Board noted that
it was pleased with the current staffing of the Fund's investment advisor during
the past year, the emphasis on research and the compensation system for advisory
personnel. Favorable consideration was given to DMC's efforts to maintain, and
in some instances increase, financial and human resources committed to fund
matters. Other factors taken into account by the Board were Delaware
Investments' preparedness for, and response to, legal and regulatory matters.
The Board also considered the transfer agent and shareholder services provided
to Fund shareholders by Delaware Investments' affiliate, Delaware Service
Company, Inc., noting the receipt by such affiliate of the DALBAR Pyramid Award
in four of the last six years and the continuing expenditures by Delaware
Investments to increase and improve the scope of shareholder services.
Additionally, the Board noted the extent of benefits provided to Fund
shareholders for being part of the Delaware Investments Family of Funds,
including the privilege to exchange investments between the same class of funds
without a sales charge, the ability to reinvest Fund dividends into other funds
and the privilege to combine holdings in other funds to obtain a reduced sales
charge. The Board was satisfied with the nature, extent and quality of the
overall services provided by Delaware Investments.
INVESTMENT PERFORMANCE. The Board considered the investment performance of DMC
and the Fund. The Board was pleased by DMC's investment performance, noting
Barron's ranking of the Delaware Investments(R) Family of Funds in the top
quartile of mutual fund families for 2002 - 2004. The Board placed significant
emphasis on the investment performance of the Fund in view of its importance to
shareholders. While consideration was given to performance reports and
discussions with portfolio managers at Board meetings throughout the year,
particular attention in assessing performance was given to the Lipper reports
furnished for the Annual Meeting. The Lipper reports prepared for the Fund
showed the investment performance of its Consultant Class shares in comparison
to a group of similar funds as selected by Lipper (the "Performance Universe").
A fund with the highest performance is ranked first, and a fund with the lowest
is ranked last. The highest/best performing 25% of funds in the Performance
Universe make up the first quartile; the next 25% - the second quartile; the
next 25% - the third quartile; and the lowest/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 one, three, five and 10 year
periods ended February 28, 2005. The Board noted its objective that the Fund's
performance be at or above the median of its Performance Universe. The following
paragraph summarizes the performance results for the Fund and the Board's view
of such performance.
The Performance Universe for this Fund consisted of the Fund and all money
market funds as selected by Lipper. The Lipper report comparison showed that the
Fund's total return for the one year period was in the second quartile of such
Performance Universe. The report further showed that the Fund's total return for
the three and 5 year periods was in the third quartile and the Fund's total
return for the 10 year period was in the fourth quartile. The Board noted that
the Fund's performance results were mixed. The Board also noted that relative
performance had been improving due to an expense cap that currently is in place
for the Fund. The Board was satisfied that management was taking effective
action to enhance performance and met the Board's performance objective.
13
OTHER DELAWARE CASH RESERVE FUND
FUND INFORMATION (CONTINUED)
CONSIDERATION OF DELAWARE CASH RESERVE FUND INVESTMENT ADVISORY AGREEMENT
(CONTINUED)
COMPARATIVE EXPENSES. The Board considered expense comparison data for the
Delaware Investments(R) Family of Funds, Delaware Investments' institutional
separate account business and other lines of business at Delaware Investments.
The Board stated its belief that, given the differing level of service provided
to Delaware Investments' various clients and other factors that related to the
establishment of fee levels, variations in the levels of fees and expenses were
justified. The Board placed significant emphasis on the comparative analysis of
the management fees and total expense ratios of the Fund compared with those of
a group of similar funds as selected by Lipper (the "Expense Group") and among
the other Delaware Investments funds. In reviewing comparative costs, the Fund's
contractual management fee and the actual management fee incurred by the Fund
were compared with the contractual management fees (assuming all funds in the
Expense Group were similar in size to the Fund) and actual management fees (as
reported by each fund) of other funds within the Expense Group, taking into
effect any applicable breakpoints and fee waivers. The Fund's total expenses
were also compared with those of its Expense Group. The Lipper total expenses,
for comparative consistency, were shown by Lipper for Consultant Class shares
and compared total expenses including 12b-1 and non-12b-1 service fees. The
Board noted its objective to limit the Fund's total expense ratio to an
acceptable range as compared to the median of the Expense Group. The following
paragraph summarizes the expense results for the Fund and the Board's view of
such expenses.
The expense comparisons for the Fund showed that its management fee was in the
quartile with the lowest expenses of its Expense Group and its total expenses
were in the quartile with the second lowest expenses of its Expense Group. The
Board was satisfied with the management fees and total expenses of the Fund in
comparison to its Expense Group as shown in the Lipper report.
MANAGEMENT PROFITABILITY. The Board considered the level of profits, if any,
realized by Delaware Investments in connection with the operation of the Fund.
In this respect, the Board reviewed the Investment Management Profitability
Analysis that addressed the overall profitability of Delaware Investments'
business in providing management and other services to each of the individual
funds and the Delaware Investments(R) Family of Funds as a whole. Specific
attention was given to the methodology followed in allocating costs for the
purpose of determining profitability. Management stated that the level of
profits of Delaware Investments, to a certain extent, reflected operational cost
savings and efficiencies initiated by Delaware Investments. The Board considered
Delaware Investments' expenditures to improve services provided to fund
shareholders and to meet additional regulatory and compliance requirements
resulting from the Sarbanes-Oxley Act and recent SEC initiatives. The Board also
considered the extent to which Delaware Investments might derive ancillary
benefits from fund operations, including the potential for procuring additional
business as a result of the prestige and visibility associated with its role as
service provider to the Delaware Investments Family of Funds, the benefits from
allocation of fund brokerage to improve trading efficiencies and the use of
"soft" commission dollars to pay for proprietary and non-proprietary research.
At the Board's request, management also provided information relating to
Delaware Investments' profitability by client type. The information provided set
forth the revenue, expenses and pre-tax income/loss attributable to the Delaware
Investments(R) Family of Funds, Delaware Investments' separate account business
and other lines of business at Delaware Investments. Emphasis was given to the
level and type of service provided to the various clients. The Board was
satisfied with the level of profits realized by Delaware Investments from its
relationships with the Fund and the Delaware Investments(R) Family of Funds.
ECONOMIES OF SCALE. The Trustees considered whether economies of scale are
realized by Delaware Investments as the Fund's assets increase and the extent to
which any economies of scale are reflected in the level of management fees
charged. The Trustees took into account the standardized advisory fee pricing
and structure approved by the Board and shareholders as part of a complex-wide
shareholder meeting conducted in 1998/1999. At that time, Delaware Investments
introduced breakpoints to account for management economies of scale. The Board
noted that the fee under the Fund's management contract fell within the standard
structure. Although the Fund has not reached a size at which it can take
advantage of breakpoints, the Board recognized that the fee was structured so
that when the Fund grows, economies of scale may be shared.
14
ABOUT
THE ORGANIZATION
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
that 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 MICHAEL P. BISHOF INVESTMENT MANAGER
Chairman Senior Vice President and Delaware Management Company,
Delaware Investments Family of Funds Chief Financial Officer a Series of Delaware Management Business Trust
Philadelphia, PA Delaware Investments Family of Funds Philadelphia, PA
Philadelphia, PA
THOMAS L. BENNETT NATIONAL DISTRIBUTOR
Private Investor DAVID F. CONNOR Delaware Distributors, L.P.
Rosemont, PA Vice President, Deputy General Counsel Philadelphia, PA
and Secretary
JOHN A. FRY Delaware Investments Family of Funds SHAREHOLDER SERVICING, DIVIDEND
President Philadelphia, PA DISBURSING AND TRANSFER AGENT
Franklin & Marshall College Delaware Service Company, Inc.
Lancaster, PA DAVID P. O'CONNOR 2005 Market Street
Senior Vice President, General Counsel Philadelphia, PA 19103-7094
ANTHONY D. KNERR and Chief Legal Officer
Managing Director Delaware Investments Family of Funds FOR SHAREHOLDERS
Anthony Knerr & Associates Philadelphia, PA 800 523-1918
New York, NY
JOHN J. O'CONNOR FOR SECURITIES DEALERS AND FINANCIAL
LUCINDA S. LANDRETH Senior Vice President and Treasurer INSTITUTIONS REPRESENTATIVES ONLY
Former Chief Investment Officer Delaware Investments Family of Funds 800 362-7500
Assurant, Inc. Philadelphia, PA
Philadelphia, PA WEB SITE
www.delawareinvestments.com
ANN R. LEVEN
Former Treasurer/Chief Fiscal Officer Delaware Investments is the marketing name
National Gallery of Art for Delaware Management Holdings, Inc. and
Washington, DC its subsidiaries.
THOMAS F. MADISON
President and Chief Executive Officer
MLM Partners, Inc.
Minneapolis, MN
JANET L. YEOMANS
Vice President/Mergers & Acquisitions
3M Corporation
St. Paul, MN
J. RICHARD ZECHER
Founder
Investor Analytics
Scottsdale, AZ
- --------------------------------------------------------------------------------
The Fund files its complete schedule of portfolio holdings with the Securities
and Exchange Commission for the first and third quarters of each fiscal year on
Form N-Q. The Fund's Forms N-Q, as well as a description of the policies and
procedures that the Fund uses to determine how 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 Web site at http://www.delawareinvestments.com;
and (iii) on the Commission's Web site at http://www.sec.gov. The Fund's Forms
N-Q may be reviewed and copied at the Commission's Public Reference Room in
Washington, DC; information on the operation of the Public Reference Room may be
obtained by calling 1-800-SEC-0330.
Information (if any) regarding how the Fund voted proxies relating to portfolio
securities during the most recently disclosed 12-month period ended June 30 is
available without charge (i) through the Fund's Web site at
http://www.delawareinvestments.com; and (ii) on the Commission's Web site at
http://www.sec.gov.
- --------------------------------------------------------------------------------
15
Delaware
Investments(R)
- -----------------------------------
A member of Lincoln Financial Group
Printed in the USA
(9876) SEMI-0511 CASRES
SA-008 [9/05] IVES 11/05 MF0510345 PO10509
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. Schedule of Investments
Included as part of report to shareholders filed under Item 1 of this
Form N-CSR.
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 second fiscal quarter of the
period covered by the report to stockholders included herein (i.e., the
registrant's second fiscal quarter) that have materially affected, or are
reasonably likely to materially affect, the registrant's internal control over
financial reporting.
Item 12. 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.
NAME OF REGISTRANT: Delaware Group Cash Reserve
Jude T. Driscoll
- ------------------------------
By: Jude T. Driscoll
Title: Chief Executive Officer
Date: December 8, 2005
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: Chief Executive Officer
Date: December 8, 2005
Michael P. Bishof
- ------------------------------
By: Michael P. Bishof
Title: Chief Financial Officer
Date: December 8, 2005