-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, FKrObZanfcropP0qfnI0Z/TqtSoEWGc8ZiwRgpuoTXxh38oUmL1M5ZVQmGXN9tYV Q/UL8Sah3amrckJvRaV83Q== 0000950116-96-000942.txt : 19960910 0000950116-96-000942.hdr.sgml : 19960910 ACCESSION NUMBER: 0000950116-96-000942 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19960630 FILED AS OF DATE: 19960906 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: DELAWARE GROUP LIMITED TERM GOVERNMENT FUNDS INC CENTRAL INDEX KEY: 0000357059 STANDARD INDUSTRIAL CLASSIFICATION: [] IRS NUMBER: 236732199 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-03363 FILM NUMBER: 96626654 BUSINESS ADDRESS: STREET 1: ONE COMMERCE SQ STREET 2: 2005 MARKET ST CITY: PHILADELPHIA STATE: PA ZIP: 19103 BUSINESS PHONE: 2157512926 MAIL ADDRESS: STREET 1: ONE COMMERCE SQ STREET 2: 2005 MARKET ST CITY: PHILADELPHIA STATE: PA ZIP: 19103 FORMER COMPANY: FORMER CONFORMED NAME: DELAWARE GROUP TREASURY RESERVES INC DATE OF NAME CHANGE: 19920703 FORMER COMPANY: FORMER CONFORMED NAME: DELAWARE TREASURY RESERVES DATE OF NAME CHANGE: 19880718 N-30D 1 FORM N-30D July 17, 1996 Dear - -------------------------- Shareholder: - -------------------------- For the six months ended June 30, 1996, U.S. Government Money Fund provided a positive total return of +2.31% (for Class A and Consultant Class shares with dividends reinvested). U.S. Government Money Fund's seven-day yield for both classes was 4.69% as of June 30. The average maturity of securities in your Fund's portfolio was 59 days. Your Fund's 16-year lifetime has spanned a wide variety of economic and interest rate cycles, and through each one, it has achieved the goals it set out to accomplish -- providing shareholders with relative safety, liquidity and current income. The first half of 1996 has been a period marked by increased market volatility, especially for fixed-income investments. Fear of inflation has prompted a sharp rise in interest rates. Yields on 30-year U.S. government bonds have risen more than one percentage point (1%) since January to more than 7%. Many economists anticipate that the Federal Reserve Board will increase its target for the Federal Funds rate -- the rate banks charged on overnight loans between banks -- in the coming months. While this could have negative implications for stocks and long-term bonds, a rise in interest rates is good news for money market investors because it generally boosts current income potential. Your Fund focuses on high quality government securities maturing in 90 days or less. As always, we strive to maintain a stable net asset value of $1 a share. Money market funds like U.S. Government Money Fund can be appropriate places for cash intended for future investment -- and provide relative safety during periods of high market volatility. But money market funds are not designed for long-term growth, nor is principal insured or guaranteed. With the help of your financial adviser, you can review a complete family of Delaware Group fixed-income and equity investments that may be suitable for your portfolio as you strive to achieve your long-term goals. As always, U.S. Government Money Fund aims to maintain the highest quality holdings and maximize current income while preserving principal and maintaining liquidity through a diversified portfolio. Sincerely, /s/ Wayne A. Stork - --------------------------- Wayne A. Stork CHAIRMAN, PRESIDENT AND CHIEF EXECUTIVE OFFICER Average annual rates of return for the 10-, five- and one year periods ended June 30, 1996 for U.S. Government Money Fund Class A are +4.97% +3.48% and +4.58% respectively, and the returns for the Consultant Class are +4.91%, +3.48% and +4.58%, respectively. These returns reflect the reinvestment of all distributions. An expense limitation of 0.70% has been in effect since January 26, 1996. The Fund's performance would have been lower had the limitation not been in effect. Money market funds strive to maintain a stable share value of $1. However, there is no guarantee that this goal will be met. Yields fluctuate with changing interest rates. 1 Financial - ------------------------ Statements - ------------------------ DELAWARE GROUP LIMITED-TERM GOVERNMENT FUNDS, INC. - U.S. GOVERNMENT MONEY SERIES STATEMENT OF NET ASSETS JUNE 30, 1996 (UNAUDITED) Prinicpal Amount Value FEDERAL AGENCY DISCOUNT NOTES - 66.58% Federal Home Loan Bank 5.00% 7/09/96 ............... $ 170,000 $ 169,811 Federal Home Loan Bank 5.00% 7/12/96 ............... 100,000 99,847 Federal Home Loan Bank 5.25% 8/07/96 ............... 500,000 497,302 Federal Home Loan Bank 5.53% 5/12/97 ............... 490,000 466,290 Federal Home Loan Mortgage Corporation 5.17% 7/11/96 ....................................... 750,000 748,923 Federal Home Loan Mortgage Corporation 5.17% 7/22/96 ....................................... 750,000 747,738 Federal Home Loan Mortgage Corporation 5.25% 7/05/96 ....................................... 1,000,000 999,417 Federal Home Loan Mortgage Corporation 5.25% 9/03/96 ....................................... 750,000 743,000 Federal Home Loan Mortgage Corporation 5.27% 7/19/96 ....................................... 1,000,000 997,365 Federal Home Loan Mortgage Corporation 5.27% 8/19/96 ....................................... 100,000 99,283 Federal Home Loan Mortgage Corporation 5.28% 8/12/96 ....................................... 750,000 745,380 Federal National Mortgage Association 4.83% 8/09/96 ....................................... 1,100,000 1,094,177 Federal National Mortgage Association 5.14% 9/27/96 ....................................... 500,000 493,718 Federal National Mortgage Association 5.21% 11/27/96 ...................................... 500,000 489,218 Federal National Mortgage Association 5.25% 7/12/96 ....................................... 500,000 499,198 Federal National Mortgage Association 5.29% 8/14/96 ....................................... 750,000 745,151 Federal National Mortgage Association 5.29% 12/10/96 ...................................... 750,000 732,146 Federal National Mortgage Association 5.30% 7/18/96 ....................................... 1,000,000 997,497 ---------- Total Federal Agency Discount Notes ................. 11,365,461 ---------- FLOATING RATE NOTES - 16.40%+ Student Loan Marketing Association 5.28% 10/04/96 ...................................... 500,000 500,000 Student Loan Marketing Association 5.41% 12/12/96 ...................................... 500,000 500,000 Student Loan Marketing Association 5.47% 10/10/96 ...................................... 500,000 499,951 Student Loan Marketing Association 5.50% 9/23/96 ....................................... 800,000 800,000 Student Loan Marketing Association 5.60% 8/04/97 ....................................... 500,000 499,814 ---------- Total Floating Rate Notes ........................... 2,799,765 ---------- MEDIUM-TERM NOTES - 6.73% Federal National Mortgage Association 4.97% 03/10/97 ...................................... 250,000 249,490 Federal National Mortgage Association 5.36% 05/02/97 ...................................... 500,000 499,632 Federal National Mortgage Association 5.64% 09/09/96 ...................................... 400,000 399,864 ---------- 1,148,986 ---------- 2 Statement of Net Assets (Continued) Prinicpal Amount Value REPURCHASE AGREEMENTS - 10.31% With Chase Manhattan 5.40% 7/1/96 (dated 6/28/96, collateralized by $593,000 U.S. Treasury Notes 7.75% due 1/31/00 market value $637,401 .............. $ 623,000 $ 623,000 With Morgan (J.P.) 5.40% 7/1/96 (dated 6/28/96, collateralized by $575,000 U.S. Treasury Notes 6.25% due 8/31/00 market value $582,242) ............. 568,000 568,000 With PaineWebber 5.40% 7/1/96 (dated 6/28/96, collateralized by $118,000 U.S. Treasury Notes 8.50% due 4/15/97 market value $122,440 and $449,000 U.S. Treasury Notes 6.875% due 4/30/97 market value $457,848).............. 568,000 568,000 ---------- Total Repurchase Agreements ............................ 1,759,000 ---------- TOTAL MARKET VALUE OF SECURITIES OWNED - 100.02% (WHICH APPROXIMATES COST FOR FINANCIAL REPORTING AND INCOME TAX PURPOSES) ........................................ 17,073,212 LIABILITIES NET OF RECEIVABLES AND OTHER ASSETS - (.02%) ............................ (3,441) ------ NET ASSETS APPLICABLE TO 16,720,170 U.S. GOVERNMENT MONEY FUND A CLASS SHARES AND 349,601 U.S. GOVERNMENT MONEY FUND CONSULTANT CLASS SHARES ($.001 PAR VALUE) OUTSTANDING; EQUIVALENT TO $1.00 PER SHARE - 100.00%... $17,069,771 ------------ - -------------- +For Floating Rate Notes, the maturity date shown is the next interest reset date. See accompanying notes 3 DELAWARE GROUP LIMITED-TERM GOVERNMENT FUNDS, INC.- U.S. GOVERNMENT MONEY SERIES STATEMENT OF OPERATIONS SIX MONTHS ENDED JUNE 30, 1996 (UNAUDITED) INVESTMENT INCOME: Interest .......................................... $410,125 EXPENSES: Management fees ($36,828) and directors' fees ($3,361) ........................ 40,189 Dividend disbursing and transfer agent fees and expenses .......................... 17,941 Federal and state registration fees ............... 13,450 Custodian fees .................................... 9,190 Professional fees ................................. 7,221 Reports and statement to shareholders ............. 6,106 Salaries .......................................... 2,162 Other ............................................. 772 -------- 97,031 Less expenses absorbed by Delaware Management Company, Inc. ................ (37,212) 59,189 -------- -------- NET INVESTMENT INCOME ............................. $350,306 -------- See accompanying notes DELAWARE GROUP LIMITED-TERM GOVERNMENT FUNDS, INC.- U.S. GOVERNMENT MONEY SERIES STATEMENT OF CHANGES IN NET ASSETS Six Months Ended Year Ended 6/30/96 12/31/95 (Unaudited) OPERATIONS: Net investment income ...................... $ 350,306 $ 705,172 ------------ ------------ DISTRIBUTIONS TO SHAREHOLDERS FROM NET INVESTMENT INCOME: U.S. Government Money Fund A Class ......... (336,151) (668,878) U.S. Government Money Fund Consultant Class .......................... (14,155) (36,294) ------------ ------------ (350,306) (705,172) ------------ ------------ CAPITAL SHARE TRANSACTIONS: Proceeds from shares sold: U.S. Government Money Fund A Class ........ 16,869,166 11,699,903 U.S. Government Money Fund Consultant Class ......................... 120,706 732,776 Net asset value of shares issued upon reinvestment of dividends from net investment income: U.S. Government Money Fund A Class ........ 269,583 641,733 U.S. Government Money Fund Consultant Class ......................... 5,922 35,120 ------------ ------------ 17,265,377 13,109,532 ------------ ------------ Cost of shares repurchased: U.S. Government Money Fund A Class ........ (14,205,014) (15,674,682) U.S. Government Money Fund Consultant Class ......................... (106,095) (1,515,439) ------------ ------------ (14,311,109) (17,190,121) ------------ ------------ Increase (decrease)in net assets derived from capital share transactions ... 2,954,268 (4,080,589) ------------ ------------ NET INCREASE (DECREASE) IN NET ASSETS ............................. 2,954,268 (4,080,589) ------------ ------------ NET ASSETS: Beginning of period ........................ 14,115,503 18,196,092 ------------ ------------ End of period .............................. $ 17,069,771 $ 14,115,503 ============ ============ See accompanying notes 4 DELAWARE GROUP LIMITED-TERM GOVERNMENT FUNDS, INC.- U.S. GOVERNMENT MONEY SERIES NOTES TO FINANCIAL STATEMENTS JUNE 30, 1996 (UNAUDITED) Delaware Group Limited-Term Government Funds, Inc.- U.S. Government Money Series (the "Fund"), is a series of Delaware Group Limited-Term Government Funds, Inc., (the "Company"), a diversified open-end investment company registered under the Investment Company Act of 1940. The Company is organized as a Maryland corporation. The Fund offers two classes of shares. 1. Significant Accounting Policies The accounting policies are in accordance with generally accepted accounting principles and are consistently followed by the Fund for financial statement preparation: Security Valuation - Securities are valued at amortized cost which approximates market value. Federal Income Taxes - The Fund intends to continue to qualify as a regulated investment company and make the requisite distributions to shareholders. Accordingly, no provision for federal income taxes is required in the financial statements. Repurchase Agreements - The Fund may invest in a pooled cash account along with other members of the Delaware Group of Funds. The aggregated daily balance of the pooled cash account is invested in repurchase agreements secured by obligations of the U.S. government. The respective collateral is held by the Fund's custodian bank until the maturity of the respective repurchase agreements. Each repurchase agreement is a least 100% collateralized. However, in the event of default or bankruptcy by the counterparty to the agreement, realization of the collateral may be subject to legal proceedings. Class Accounting - Investment income and common expenses are allocated to the various classes of the Fund on the basis of daily net assets of each class. Other - Expenses common to all funds within the Delaware Group of Funds are allocated amongst the funds on the basis of average net assets. Security transactions are recorded on the date the securities are purchased or sold (trade date). Premiums and discounts are amortized on a pro-rata basis and included in interest income. The Fund declares dividends daily from net investment income and pays such dividends monthly. 2. Investment Management Fee and Distribution Agreements In accordance with the terms of the Investment Management Agreement, the Fund pays Delaware Management Company, Inc. (DMC), the investment manager of the Fund, an annual fee which is calculated daily at 0.50% of the average daily net assets of the Fund, less fees paid to the independent directors. Effective January 26, 1996, DMC has elected voluntarily to waive that portion, if any, of the annual management fees payable by the Fund to the extent necessary to ensure that the annual operating expenses exclusive of taxes, interest, brokerage commissions, extraordinary expenditures and 12b-1 expenses do not exceed 0.70% of average net assets for each Class through January 31, 1997. Pursuant to the Distribution Agreement, the Fund may pay Delaware Distributors, L.P. (DDLP), the Distributor and an affiliate of DMC, an annual 12b-1 fee not to exceed 0.25% of the average daily net assets of the Consultant Class. Effective June 1, 1990, 12b-1 Plan payments from the Consultant Class to DDLP were suspended but may be reinstated in the future. The Fund has engaged Delaware Service Company, Inc. (DSC), an affiliate of DMC, to serve as dividend disbursing and transfer agent for the Fund. For the six months ended June 30, 1996, the Fund expensed $17,941 for these services. Certain officers of the Investment Manager are officers, directors, and/or employees of the Fund. These officers, directors, and employees are paid no compensation by the Fund. 3. Fund Shares Transactions in capital stock shares of the Fund were as follows: Six Months Year Ended Ended 6/30/96 12/31/95 Shares sold: U.S. Government Money Fund A Class ........... 16,869,165 11,699,903 U.S. Government Money Fund Consultant Class ............................ 120,705 732,776 Shares issued upon reinvestment of dividends from net investment income: U.S. Government Money Fund A Class ........... 269,583 641,733 U.S. Government Money Fund Consultant Class ............................ 5,922 35,120 ------------ ------------ 17,265,375 13,109,532 ------------ ------------ Shares repurchased: U.S. Government Money Fund A Class ........... (14,205,014) (15,674,682) U.S. Government Money Fund Consultant Class ............................ (106,095) (1,515,439) ------------ ------------ (14,311,109) (17,190,121) ------------ ------------ Net increase (decrease) ...................... 2,954,266 (4,080,589) ============ =========== 5 Notes to Financial Statements (Continued) 4.Financial Highlights Selected data for each share of the Fund outstanding throughout each period were as follows:
U.S. Government Money Fund A Class Six Months Ended Year Ended December 31, 6/30/96* 1995 1994 1993 1992 1991 Net asset value, beginning of period $1.0000 $1.0000 $1.0000 $1.0000 $1.0000 $1.0000 Income from investment operations: Net investment income. . . . . . . . . . 0.0225 0.0448 0.0289 0.0200 0.0308 0.0519 Net realized gain from security transactions none none none none none none ------- ------- ------- ------- ------- ------- Total from investment operations 0.0225 0.0448 0.0289 0.0200 0.0308 0.0519 ------- ------- ------- ------- ------- ------- Less distributions: Dividends from net investment income (0.0225) (0.0448) (0.0289) (0.0200) (0.0308) (0.0519) ------- ------- ------- ------- ------- ------- Total distributions. . . . . . . . . . . (0.0225) (0.0448) (0.0289) (0.0200) (0.0308) (0.0519) ------- ------- ------- ------- ------- ------- Net asset value, end of period. $1.0000 $1.0000 $1.0000 $1.0000 $1.0000 $1.0000 ======= ======= ======= ======= ======= ======= Total return. . . . . . . . . . . . . . . 2.31% 4.57% 2.93% 2.01% 3.13% 5.32% Ratios/supplemental data: Net assets, end of period (000 omitted) $16,720 $13,787 $17,119 $20,919 $41,049 $45,933 Ratio of expenses to average net assets 0.79%(1) 1.39% 1.26% 1.04% 0.91% 0.85% Ratio of net investment income to average net assets. . . . . . . . . . . . . 4.61%(2) 4.45% 2.91% 2.06% 3.11% 5.23%
* Ratios have been annualized and total return has not been annualized. 1 Ratio of expenses to average net assets prior to expense limitation was 1.28% for the six months ended 6/30/96. 2 Ratio of net investment income to average net assets prior to expense limitation was 4.12% for the six months ended 6/30/96. 6 Notes to Financial Statements (Continued) 4.Financial Highlights Selected data for each share of the Fund outstanding throughout each period were as follows:
U.S. Government Money Fund Consultant Class Six Months Ended Year Ended December 31, 6/30/96* 1995 1994 1993 1992 1991 Net asset value, beginning of period $1.0000 $1.0000 $1.0000 $1.0000 $1.0000 $1.0000 Income from investment operations: Net investment income..................... 0.0225 0.0448 0.0289 0.0200 0.0308 0.0519 ------- ------- ------- ------- ------- ------- Net realized gain from security transactions none none none none none none ------- ------- ------- ------- ------- ------- Total from investment operations.......... 0.0225 0.0448 0.0289 0.0200 0.0308 0.0519 ------- ------- ------- ------- ------- ------- Less distributions: Dividends from net investment income...... (0.0225) (0.0448) (0.0289) (0.0200) (0.0308) (0.0519) ------- ------- ------- ------- ------- ------- Total distributions....................... (0.0225) (0.0448) (0.0289) (0.0200) (0.0308) (0.0519) ------- ------- ------- ------- ------- ------- Net asset value, end of period............ $1.0000 $1.0000 $1.0000 $1.0000 $1.0000 $1.0000 ======= ======= ======= ======= ======= ======= Total return.............................. 2.31% 4.57% 2.93% 2.01% 3.13% 5.32% Ratios/supplemental data: Net assets, end of period (000 omitted)... $350 $329 $1,077 $555 $747 $1,399 Ratio of expenses to average net assets... 0.79%(1) 1.39% 1.26% 1.04% 0.91% 0.85% Ratio of net investment income to average net assets........................ 4.61%(2) 4.45% 2.91% 2.06% 3.11% 5.23%
- ------------- * Ratios have been annualized and total return has not been annualized. 1 Ratio of expenses to average net assets prior to expense limitation was 1.28% for the six months ended 6/30/96. 2 Ratio of net investment income to average net assets prior to expense limitation was 4.12% for the six months ended 6/30/96. 7 Be sure to consult your financial adviser when making investment decisions. Mutual funds can be a valuable part of your financial plan; however, shares of the Fund are not FDIC or NCUSIF insured, are not guaranteed by any bank or any credit union, are not obligations of any bank or any credit union, and involve investment risk, including the possible loss of principal. Shares of the Fund are not bank or credit union deposits. THE GOAL OF A MONEY MARKET FUND IS TO MAINTAIN A CONSTANT SHARE PRICE OF $1. HOWEVER, THERE CAN BE NO GUARANTEE THAT THIS GOAL WILL BE MET. THE FUND'S YIELD AND RETURN FLUCTUATE AND ARE NOT GUARANTEED. AN INVESTMENT IN A MONEY MARKET FUND IS NEITHER INSURED NOR GUARANTEED BY THE U.S. GOVERNMENT. This report must be preceded or accompanied by a current U.S. Government Money Fund prospectus. INVESTMENT MANAGER Delaware Management Company, Inc. Philadelphia, Pennsylvania INTERNATIONAL AFFILIATE Delaware International Advisers Ltd. London, England NATIONAL DISTRIBUTOR Delaware Distributors, L.P. Philadelphia, Pennsylvania SHAREHOLDER SERVICING, DIVIDEND DISBURSING AND TRANSFER AGENT Delaware Service Company, Inc. Philadelphia, Pennsylvania 1818 Market Street Philadelphia, PA 19103-3682 Nationwide (800) 523-4640 SECURITIES DEALERS ONLY Nationwide (800) 362-7500 Copy Rights Delaware Distributors, L.P. Printed in the U.S.A. on recycled paper. SA - 005 [6/96] PP8/96 - ----------------------------- U.S. GOVERNMENT MONEY FUND - -------------- 1996 Semi-Annual Report A Tradition of Sound Investing Since 1929 DELAWARE GROUP - --------- Philadelphia * London U.S. Government Money Fund - 104511 -----END PRIVACY-ENHANCED MESSAGE-----