N-Q 1 n-q.txt N-Q UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM N-Q QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT COMPANY Investment Company Act file number: 811-750 Exact name of registrant as specified in charter: Delaware Group Equity Funds II Address of principal executive offices: 2005 Market Street Philadelphia, PA 19103 Name and address of agent for service: David P. O'Connor, Esq. 2005 Market Street Philadelphia, PA 19103 Registrant's telephone number, including area code: (800) 523-1918 Date of fiscal year end: November 30 Date of reporting period: August 31, 2005
ITEM 1. SCHEDULE OF INVESTMENTS. SCHEDULE OF INVESTMENTS (Unaudited) DELAWARE LARGE CAP VALUE FUND AUGUST 31, 2005
NUMBER OF MARKET SHARES VALUE COMMON STOCK- 98.47% Consumer Discretionary - 5.85% *Limited Brands 1,862,800 $ 40,944,344 *Mattel 2,359,900 42,548,997 -------------- 83,493,341 -------------- Consumer Staples - 12.16% *Archer-Daniels-Midland 1,814,000 40,833,140 *ConAgra Foods 1,927,600 44,007,108 Kimberly-Clark 680,200 42,390,064 *Safeway 1,951,400 46,306,722 -------------- 173,537,034 Energy - 9.71% Chevron 759,600 46,639,440 ConocoPhillips 712,200 46,962,468 Exxon Mobil 751,880 45,037,612 -------------- 138,639,520 -------------- Financials - 25.09% *Allstate 756,500 42,522,865 *Aon 1,771,700 53,009,264 *Chubb 516,400 44,906,144 *Hartford Financial Services 575,900 42,069,495 *Huntington Bancshares 1,759,900 42,220,001 Morgan Stanley 836,300 42,542,581 *Wachovia 881,200 43,725,144 *Washington Mutual 1,132,700 47,097,666 -------------- 358,093,160 -------------- Health Care - 17.63% Abbott Laboratories 930,100 41,975,413 Baxter International 1,140,400 45,992,332 *Bristol-Myers Squibb 1,767,600 43,253,172 Merck 1,340,200 37,833,846 Pfizer 1,529,185 38,948,342 Wyeth 954,200 43,692,818 -------------- 251,695,923 -------------- Industrials - 6.24% Boeing 673,100 45,111,162 Union Pacific 643,300 43,918,091 -------------- 89,029,253 -------------- Information Technology - 9.50% Hewlett-Packard 1,797,000 49,884,720 International Business Machines 577,300 46,541,926 *+Xerox 2,926,500 39,244,365 -------------- 135,671,011 -------------- Materials - 2.86% Weyerhaeuser 628,500 40,865,070 -------------- 40,865,070 -------------- Telecommunications - 6.15% *SBC Communications 1,901,500 45,788,120 Verizon Communications 1,285,000 42,032,350 -------------- 87,820,470 -------------- Utilities - 3.28% FPL Group 1,085,100 46,756,959 -------------- 46,756,959 -------------- TOTAL COMMON STOCK (COST $1,343,007,474) 1,405,601,741 ==============
PRINCIPAL MARKET AMOUNT VALUE REPURCHASE AGREEMENTS - 1.42% With BNP Paribas 3.51% 9/1/05 (dated 8/31/05, to be repurchased at $11,683,139, collateralized by $12,076,000 U.S. Treasury Bills due 1/12/06, market value $11,917,761) $11,682,000 $ 11,682,000 With UBS Warburg 3.48% 9/1/05 (dated 8/31/05, to be repurchased at $8,508,822, collateralized by $2,736,000 U.S. Treasury Notes 3.13% due 10/15/08, market value $2,709,816 and $5,672,000 U.S. Treasury Notes 6.50% due 10/15/06, market value $5,977,156) 8,508,000 8,508,000 -------------- TOTAL REPURCHASE AGREEMENTS (cost $20,190,000) 20,190,000 ============== TOTAL MARKET VALUE OF SECURITIES BEFORE SECURITIES LENDING COLLATERAL - 99.89% (cost $1,363,197,474) 1,425,791,741 ============== SECURITIES LENDING COLLATERAL** - 6.58% Short-Term Investments Abbey National 3.59% 1/13/06 1,961,734 1,962,026 Australia New Zealand 3.60% 10/2/06 2,651,204 2,650,663 Bank of New York 3.54% 10/28/05 1,325,418 1,325,352 3.54% 4/4/06 2,120,718 2,120,531 Bank of the West 3.49% 3/2/06 2,650,729 2,650,663 Barclays London 3.55% 9/16/05 2,650,645 2,650,663 3.81% 11/28/05 1,325,361 1,325,332 Bayerische Landesbank 3.66% 8/25/06 2,649,950 2,650,663 Bear Stearns 3.60% 1/17/06 530,247 530,314 3.62% 2/28/06 2,915,730 2,915,730 Beta Finance 3.58% 4/18/06 2,650,575 2,650,464 Calyon 3.69% 11/3/05 1,961,583 1,961,491 3.77% 12/30/05 1,864,224 1,862,077 CDC Financial Products 3.66% 9/30/05 3,445,862 3,445,862 Citigroup Global Markets 3.60% 9/1/05 13,051,598 13,051,598 3.63% 9/7/05 3,445,862 3,445,862 Commonwealth Bank Australia 3.61% 10/2/06 2,650,971 2,650,663 Credit Swiss First Boston New York 3.49% 12/29/05 556,660 556,661 3.56% 4/18/06 2,863,005 2,862,716 Deutsche Bank London 3.55% 9/20/05 2,917,159 2,917,138 3.76% 12/27/05 795,468 795,298 Goldman Sachs 3.70% 8/31/06 2,915,730 2,915,730 Lehman Holdings 3.64% 12/23/05 2,651,009 2,652,252 Marshall & Ilsley Bank 3.44% 12/29/05 2,651,305 2,650,743 Merrill Lynch Mortgage Capital 3.66% 9/12/05 3,445,862 3,445,862 National City Bank 3.56% 1/23/06 3,021,847 3,021,865 Nordea Bank Norge ASA 3.55% 10/2/06 2,650,907 2,650,663 Pfizer 3.52% 10/2/06 2,544,655 2,544,637 Proctor & Gamble 3.34% 10/2/06 2,650,663 2,650,663 Royal Bank of Canada 3.78% 11/18/05 2,650,686 2,650,663 Royal Bank of Scotland 3.58% 10/2/06 2,650,798 2,650,663 Sigma Finance 3.48% 9/30/05 2,491,426 2,491,521 3.55% 9/15/05 530,153 530,137 3.58% 3/16/06 796,575 796,669 Washington Mutual Bank 3.49% 9/19/05 2,650,705 2,650,663 Wells Fargo 3.56% 10/2/06 2,649,998 2,650,663 -------------- TOTAL SECURITIES LENDING COLLATERAL (cost $93,935,161) 93,935,161 ============== TOTAL MARKET VALUE OF SECURITIES - 106.47% (cost $1,457,132,635) 1,519,726,902o OBLIGATION TO RETURN SECURITIES LENDING - (6.58%)** (93,935,161) RECEIVABLES AND OTHER ASSETS NET OF LIABILITIES (SEE NOTES) - 0.11% 1,609,124 -------------- NET ASSETS APPLICABLE TO 76,065,119 SHARES OUTSTANDING - 100.00% $1,427,400,865 ==============
*Fully or partially on loan. **See Note 3 in "Notes." oIncludes $93,766,730 of securities loaned. +Non-income producing security for the period ended August 31, 2005. -------------------------------------------------------------------------------- NOTES 1. SIGNIFICANT ACCOUNTING POLICIES The following accounting policies are in accordance with U.S. generally accepted accounting principles and are consistently followed by Delaware Group Equity Funds II - Delaware Large Cap Value Fund (formerly Delaware Decatur Equity Income Fund) (the "Fund"). SECURITY VALUATION - Equity securities, except those traded on the Nasdaq Stock Market, Inc. (Nasdaq), are valued at the last quoted sales price as of the time of the regular close of the New York Stock Exchange (NYSE) on the valuation date. Securities traded on the Nasdaq are valued in accordance with the Nasdaq Official Closing Price, which may not be the last sales price. If on a particular day an equity security does not trade, then the mean between the bid and asked prices will be used. Short-term debt securities having less than 60 days to maturity are valued at amortized cost, which approximates market value. Other securities and assets for which market quotations are not readily available are valued at fair value as determined in good faith under the direction of the Fund's Board of Trustees. In determining whether market quotations are readily available or fair valuation will be used, various factors will be taken into consideration, such as market closures, or with respect to foreign securities, aftermarket trading or significant events after local market trading (e.g., government actions or pronouncements, trading volume or volatility on markets, exchanges among dealers, or news events). 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, common expenses and realized and unrealized gain (loss) on investments are allocated to the various classes of the Fund on the basis of daily net assets of each class. Distribution expenses relating to a specific class are charged directly to that class. REPURCHASE AGREEMENTS - The Fund may invest in a pooled cash account along with other members of the Delaware Investments Family of Funds(R) pursuant to an exemptive order issued by the Securities and Exchange Commission. The aggregate daily balance of the pooled cash account is invested in repurchase agreements secured by obligations of the U.S. government. The respective collateral is held by the Fund's custodian bank until the maturity of the respective repurchase agreements. Each repurchase agreement is 102% collateralized. However, in the event of default or bankruptcy by the counterparty to the agreement, realization of the collateral may be subject to legal proceedings. 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 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. Dividend income is recorded on the ex-dividend date and interest income is recorded on the accrual basis. The Fund declares and pays dividends from net investment income quarterly and distributions from net realized gains on investments, if any, annually. 2. INVESTMENTS At August 31, 2005, the cost of investments for federal income tax purposes has been estimated since the final tax characteristics cannot be determined until fiscal year end. At August 31, 2005, the cost of investments and unrealized appreciation (depreciation) for the Fund for federal income tax purposes were as follows: Cost of investments $1,458,860,009 -------------- Aggregate unrealized appreciation 114,368,292 Aggregate unrealized depreciation (54,501,399) -------------- Net unrealized appreciation $ 59,866,893 -------------- For federal income tax purposes, at November 30, 2004, capital loss carryforwards of $134,745,369 may be carried forward and applied against future capital gains. Such capital loss carryforwards expire as follows: $20,170,293 expires in 2007, $20,496,938 expires in 2008, $40,482,074 expires in 2009, $38,177,581 expires in 2010 and $15,418,483 expires in 2011. 3. SECURITIES LENDING The Fund, along with other funds in the Delaware Investments Family of Funds, may lend its securities pursuant to a security lending agreement (Lending Agreement) with J.P. Morgan Chase. Initial security loans made pursuant to the Lending Agreement are required to be secured by U.S. Government obligations and/or cash collateral not less than 102% of the market value of the securities issued in the United States and 105% of the market value of securities issued outside the United States. With respect to each loan, if the aggregate market value of the collateral held on any business day is less than the aggregate market value of the securities which are the subject of such loan, the borrower will be notified to provide additional collateral not less than the applicable collateral requirements. Cash collateral received is invested in fixed-income securities, with a weighted average maturity not to exceed 90 days, rated in one of the top two tiers by Standard & Poor's Ratings Group or Moody's Investors Service, Inc. or repurchase agreements collateralized by such securities. However, in the event of default or bankruptcy by the lending agent, realization and/or retention of the collateral may be subject to legal proceedings. In the event the borrower fails to return loaned securities and the collateral received is insufficient to cover the value of the loaned securities and provided such collateral shortfall is not the result of investment losses, the lending agent has agreed to pay the amount of the shortfall to the Fund, or at the discretion of the lending agent, replace the loaned securities. The Fund continues to record dividends on the securities loaned and is subject to change in value of the securities loaned that may occur during the term of the loan. The Fund has the right under the Lending Agreement to recover the securities from the borrower on demand. The security lending agent and the borrower retain a portion of the earnings from the collateral investments. The Fund records security lending income net of such allocation. At August 31, 2005, the market value of securities on loan was $93,766,730, for which cash collateral was received and invested in accordance with the Lending Agreement. Such investments are presented on the Schedule of Investments under the caption "Securities Lending Collateral". SCHEDULE OF INVESTMENTS (Unaudited) DELAWARE VALUE FUND AUGUST 31, 2005
NUMBER OF MARKET SHARES VALUE COMMON STOCK - 95.89% Consumer Discretionary - 5.96% Limited Brands 241,000 $ 5,297,180 Mattel 298,900 5,389,167 ------------ 10,686,347 ------------ Consumer Staples - 12.03% Archer-Daniels-Midland 254,200 5,722,042 ConAgra Foods 232,900 5,317,107 Kimberly-Clark 83,000 5,172,560 Safeway 226,200 5,367,726 ------------ 21,579,435 ------------ Energy - 9.48% Chevron 91,200 5,599,680 ConocoPhillips 91,200 6,013,728 Exxon Mobil 90,000 5,391,000 ------------ 17,004,408 ------------ Financials - 23.53% Allstate 91,300 5,131,973 Aon 208,900 6,250,288 Chubb 59,600 5,182,816 Hartford Financial Services 69,700 5,091,585 Huntington Bancshares 212,100 5,088,279 Morgan Stanley 99,700 5,071,739 Wachovia 105,000 5,210,100 Washington Mutual 124,500 5,176,710 ------------ 42,203,490 ------------ Health Care - 17.78% Abbott Laboratories 116,500 5,257,645 Baxter International 135,100 5,448,583 Bristol-Myers Squibb 211,800 5,182,746 Merck 190,300 5,372,169 Pfizer 209,000 5,323,230 Wyeth 115,600 5,293,324 ------------ 31,877,697 ------------ Industrials - 5.94% Boeing 80,100 5,368,302 Union Pacific 77,500 5,290,925 ------------ 10,659,227 ------------ Information Technology - 9.33% Hewlett-Packard 216,700 6,015,592 International Business Machines 66,200 5,337,044 +Xerox 400,400 5,369,364 ------------ 16,722,000 ------------ Materials - 2.85% Weyerhaeuser 78,600 5,110,572 ------------ 5,110,572 ------------ Telecommunications - 5.85% SBC Communications 216,300 5,208,504 Verizon Communications 161,400 5,279,394 ------------- 10,487,898 ------------ Utilities - 3.14% FPL Group 130,500 5,623,245 ------------ 5,623,245 ------------ TOTAL COMMON STOCK (COST $158,773,792) 171,954,319 ============ PRINCIPAL AMOUNT REPURCHASE AGREEMENTS - 3.61% With BNP Paribas 3.51% 9/1/05 (dated 8/31/05, to be repurchased at $3,746,365, collateralized by $3,872,000 U.S. Treasury Bills due 1/12/06, market value $3,821,475) $3,746,000 3,746,000 With UBS Warburg 3.48% 9/1/05 (dated 8/31/05, to be repurchased at $2,728,264, collateralized by $877,000 U.S. Treasury Notes 3.13% due 10/15/08, market value $868,913 and $1,819,000 U.S. Treasury Notes 6.50% due 10/15/06, market value $1,916,598) 2,728,000 2,728,000 ------------ TOTAL REPURCHASE AGREEMENTS (COST $6,474,000) 6,474,000 ============ TOTAL MARKET VALUE OF SECURITIES - 99.50% (cost $165,247,792) 178,428,319 RECEIVABLES AND OTHER ASSETS NET OF LIABILITIES (SEE NOTES) - 0.50% 892,763 ------------ NET ASSETS APPLICABLE TO 15,928,414 SHARES OUTSTANDING - 100.00% $179,321,082 ============ +Non-income producing security for the period ended August 31, 2005.
-------------------------------------------------------------------------------- NOTES 1. SIGNIFICANT ACCOUNTING POLICIES The following accounting policies are in accordance with U.S. generally accepted accounting principles and are consistently followed by Delaware Group Equity Funds II - Delaware Value Fund (the "Fund"). SECURITY VALUATION - Equity securities, except those traded on the Nasdaq Stock Market, Inc. (Nasdaq), are valued at the last quoted sales price as of the time of the regular close of the New York Stock Exchange (NYSE) on the valuation date. Securities traded on the Nasdaq are valued in accordance with the Nasdaq Official Closing Price, which may not be the last sales price. If on a particular day an equity security does not trade, then the mean between the bid and asked prices will be used. Short-term debt securities having less than 60 days to maturity are valued at amortized cost, which approximates market value. Other securities and assets for which market quotations are not readily available are valued at fair value as determined in good faith under the direction of the Fund's Board of Trustees. In determining whether market quotations are readily available or fair valuation will be used, various factors will be taken into consideration, such as market closures, or with respect to foreign securities, aftermarket trading or significant events after local market trading (e.g., government actions or pronouncements, trading volume or volatility on markets, exchanges among dealers, or news events). 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 provisions for federal income taxes has been made in the financial statements. CLASS ACCOUNTING - Investment income, common expenses and realized and unrealized gain (loss) on investments are allocated to the various classes of the Fund on the basis of daily net assets of each class. Distribution expenses relating to a specific class are charged directly to that class. REPURCHASE AGREEMENTS - The Fund may invest in a pooled cash account along with other members of the Delaware Investments Family of Funds(R) pursuant to an exemptive order issued by the Securities and Exchange Commission. The aggregate daily balance of the pooled cash account is invested in repurchase agreements secured by obligations of the U.S. government. The respective collateral is held by the Fund's custodian bank until the maturity of the respective repurchase agreements. Each repurchase agreement is 102% collateralized. However, in the event of default or bankruptcy by the counterparty to the agreement, realization of the collateral may be subject to legal proceedings. 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 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. Dividend income is recorded on the ex-dividend date and interest income is recorded on the accrual basis. The Fund declares and pays dividends from net investment income and distributions from net realized gain on investments, if any, annually. 2. INVESTMENTS At August 31, 2005, the cost of investments for federal income tax purposes has been estimated since the final tax characteristics cannot be determined until fiscal year end. At August 31, 2005, the cost of investments and unrealized appreciation (depreciation) for the Fund for federal income tax purposes were as follows: Cost of investments $165,738,036 ------------ Aggregate unrealized appreciation 16,904,298 Aggregate unrealized depreciation (4,214,015) ------------ Net unrealized appreciation $ 12,690,283 ------------ ITEM 2. 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 quarter (the registrant's second fiscal half-year in the case of an annual report) that have materially affected, or are reasonably likely to materially affect, the registrant's internal control over financial reporting. ITEM 3. EXHIBITS. File as exhibits as part of this Form a separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the Act (17 CFR 270.30a-2(a)), exactly as set forth below: CERTIFICATION I, Jude T. Driscoll, certify that: 1. I have reviewed this report on Form N-Q of Delaware Group Equity Funds II; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the schedules of investments included in this report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed; 4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; (c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report, based on such evaluation; and (d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Jude T. Driscoll ---------------------------------- By: Jude T. Driscoll Title: Chief Executive Officer Date: October 28, 2005 CERTIFICATION I, Michael P. Bishof, certify that: 1. I have reviewed this report on Form N-Q of Delaware Group Equity Funds II; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the schedules of investments included in this report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed; 4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; (c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report, based on such evaluation; and (d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Michael P. Bishof --------------------------------- By: Michael P. Bishof Title: Chief Financial Officer Date: October 28, 2005 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 EQUITY FUNDS II Jude T. Driscoll --------------------------------- By: Jude T. Driscoll Title: Chief Executive Officer Date: October 28, 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: October 28, 2005 Michael P. Bishof --------------------------------- By: Michael P. Bishof Title: Chief Financial Officer Date: October 28, 2005