-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, W/OPrVbb3JwTF4Dt4a3okDPEf6q6hONyop64fKJaqvmfUd/4nKsMd9QUQql+Ygg5 eIMP3hjp2rytCgLdyagARw== 0000950116-95-000404.txt : 19950905 0000950116-95-000404.hdr.sgml : 19950905 ACCESSION NUMBER: 0000950116-95-000404 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19950630 FILED AS OF DATE: 19950831 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: 95569612 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 US GOV'T MONEY SERIES SEMI-ANNUAL REPORT PHOTO OF COLONIAL OBJECTS August 1995 Dear Shareholder: The U.S. Government Money Fund's 14-year lifetime has spanned a wide variety of economic and interest rate cycles, and through each one, your Fund has achieved the goals it originally set out to accomplish -- providing shareholders with relative safety, liquidity and current income. The current economic situation, heavily influenced by the Federal Reserve Board's actions over the past year, has enabled money market funds, including U.S. Government Money Fund, to provide greater rewards for shareholders. Reversing course after nearly a five-year decline in interest rates, the Federal Reserve Board ("the Fed"), our nation's central bank, boosted short-term interest rates sharply during 1994 and into 1995 in an effort to control the growth of the economy and keep the pace of inflation in check. At the start of 1994, the influential Federal Funds rate, the interest rate banks use to make short-term loans to each other, was 3.00%. By February 1995, the Federal Funds rate was 6.00%, and even after the July 6, 1995, cut in the federal funds rate, the first move of easing in nearly three years, the rate stood at 5.75% -- still nearly double what it was just a little over a year ago. We are pleased with the effects of the market climate, interest rates and the recent economic environment on U.S. Government Money Fund's level of income during the first half of our 1995 fiscal year, ended June 30. The table below shows the effect on your Fund's seven-day annualized yields over the past two years, given the change in short-term interest rates during this period. - ------------------------------------------------------------------------------- SEVEN-DAY ANNUALIZED YIELD June 30, December 30, June 30, December 31, June 30, 1993 1993 1994 1994 1995 2.17% 1.82% 2.77% 4.36% 4.48% - ------------------------------------------------------------------------------- No matter what the future interest rate environment holds in store, U.S. Government Money Fund will aim to maintain the highest quality holdings to achieve its objective of maximum current income while preserving principal and maintaining liquidity, through a diversified portfolio with full-service management by a professional investment staff. Please keep in mind that money market funds like U.S. Government Money Fund are not designed for long-term growth. However, Delaware Group does offer a complete family of funds. Together, you and your financial adviser can determine which best fit your investment goals. Once again, thank you for choosing Delaware Group to invest your money. We appreciate the opportunity to help you meet your short-term investing needs through U.S. Government Money Fund, and we look forward to serving your other investment needs throughout 1995 and in the years to come. Sincerely, /s/ Wayne A. Stork /s/ Brian F. Wruble - ------------------------------- -------------------------------------- Wayne A. Stork Brian F. Wruble Chairman, Board of Directors President and Chief Executive Officer Delaware Group Delaware Group U.S. Government Money Fund U.S. Government Money Fund *The SEC-required average annual rates of return for the 10-, five- and one year periods ended June 30, 1995, for U.S. Government Money Fund Class A are +5.20%, +3.85% and +4.14%, respectively, and the returns for the Consultant Class are +5.14%, +3.85% and +4.14%, respectively. These returns reflect the reinvestment of all distributions. Money market funds strive to maintain a stable share value of $1; however, there is no guarantee that this goal will be met. Shares of money market funds are not insured or guaranteed by the U.S. Government. Yields fluctuate with market conditions. 1 Financial Statements DELAWARE GROUP LIMITED-TERM GOVERNMENT FUNDS, INC. - U.S. GOVERNMENT MONEY SERIES* STATEMENT OF NET ASSETS June 30, 1995 (Unaudited)
PRINCIPAL AMOUNT VALUE FEDERAL AGENCY DISCOUNT NOTES - 54.05% Federal Home Loan Bank 5.36% 12/11/95........................................ $ 550,000 $ 536,652 Federal Home Loan Bank 5.90% 10/10/95........................................ 330,000 324,538 Federal Home Loan Mortgage Corporation 5.87% 7/20/95......................... 500,000 498,451 Federal Home Loan Mortgage Corporation 5.88% 8/28/95......................... 655,000 648,879 Federal Home Loan Mortgage Corporation 5.97% 10/4/95......................... 500,000 492,123 Federal National Mortgage Association 5.56% 12/6/95.......................... 500,000 487,799 Federal National Mortgage Association 5.58% 11/20/95......................... 300,000 293,397 Federal National Mortgage Association 5.62% 12/22/95......................... 300,000 291,851 Federal National Mortgage Association 5.75% 10/6/95.......................... 500,000 492,253 Federal National Mortgage Association 5.79% 9/8/95........................... 405,000 400,506 Federal National Mortgage Association 5.83% 7/27/95.......................... 500,000 497,895 Federal National Mortgage Association 5.84% 10/18/95......................... 335,000 329,076 Federal National Mortgage Association 5.85% 9/21/95.......................... 315,000 310,803 Federal National Mortgage Association 5.88% 7/6/95........................... 850,000 849,306 Federal National Mortgage Association 5.98% 8/14/95.......................... 500,000 496,346 Federal National Mortgage Association 6.04% 8/28/95.......................... 500,000 495,134 Federal National Mortgage Association 6.08% 7/5/95........................... 750,000 749,493 ----------- TOTAL FEDERAL AGENCY DISCOUNT NOTES.......................................... 8,194,502 ----------- FEDERAL AGENCY NOTES - 6.59% Federal National Mortgage Association 5.50% 6/12/96.......................... 500,000 498,094 Federal National Mortgage Association 6.57% 4/24/96.......................... 500,000 500,000 ----------- TOTAL FEDERAL AGENCY NOTES................................................... 998,094 ----------- FLOATING RATE NOTES - 29.68%+ Federal Farm Credit Bank 6.20% 7/7/95........................................ 500,000 499,853 Federal Home Loan Bank 6.00% 7/3/95.......................................... 1,000,000 999,897 Student Loan Marketing Association 5.56% 7/4/95.............................. 500,000 500,000 Student Loan Marketing Association 5.59% 7/4/95.............................. 500,000 500,000 Student Loan Marketing Association 5.66% 7/4/95.............................. 2,000,000 2,000,000 ----------- TOTAL FLOATING RATES NOTES................................................... 4,499,750 ----------- REPURCHASE AGREEMENT - 9.40% With Chase Manhattan Bank 6.125% 7/3/95 (dated 6/30/95, collateralized by $1,410,000 U.S. Treasury Notes 6.875% due 2/28/97, market value $1,463,728)..................................................... 1,425,000 1,425,000 ----------- TOTAL REPURCHASE AGREEMENT................................................... 1,425,000 ----------- TOTAL MARKET VALUE OF SECURITIES OWNED - 99.72% (WHICH APPROXIMATES COST FOR FINANCIAL REPORTING AND INCOME TAX PURPOSES)... 15,117,346 RECEIVABLES AND OTHER ASSETS NET OF LIABILITIES - 0.28%...................... 43,008 ----------- NET ASSETS APPLICABLE TO 14,340,824 U.S. GOVERNMENT MONEY FUND A CLASS SHARES AND 819,530 U.S. GOVERNMENT MONEY FUND CONSULTANT CLASS SHARES OUTSTANDING; EQUIVALENT TO $1.00 PER SHARE - 100.00%..................................... $15,160,354 ===========
See accompanying notes - ------ * Formerly known as Delaware Group Treasury Reserves, Inc. - U.S. Government Money Series. + For Floating Rate Notes, the maturity date shown is the next interest reset date. 2 DELAWARE GROUP LIMITED-TERM GOVERNMENT FUNDS, INC. - U.S. GOVERNMENT MONEY SERIES STATEMENT OF OPERATIONS Six Months Ended June 30, 1995 (Unaudited) INVESTMENT INCOME: Interest ......................................... $478,855 EXPENSES: Management fees ($35,880) and directors' fees ($4,471) ....................... $ 40,351 Dividend disbursing and transfer agent fees and expenses ......................... 26,932 Federal and state registration fees .............. 15,672 Reports and statements to shareholders ........... 7,940 Professional fees ................................ 7,482 Taxes (other than income) ........................ 3,279 Salaries ......................................... 2,266 Custodian fees ................................... 2,075 Other ............................................ 3,691 109,688 -------- -------- NET INVESTMENT INCOME ............................ $369,167 ======== 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 6/30/95 Ended (Unaudited) 12/31/94 OPERATIONS: Net investment income .................... $ 369,167 $ 594,338 ------------- ------------- DISTRIBUTIONS TO SHAREHOLDERS FROM NET INVESTMENT INCOME: U.S. Government Money Fund A Class ....... (349,028) (571,649) U.S. Government Money Fund Consultant Class ........................ (20,139) (22,689) ------------- ------------- (369,167) (594,338) ------------- ------------- CAPITAL SHARE TRANSACTIONS: Proceeds from shares sold: U.S. Government Money Fund A Class ...... 6,018,940 16,559,404 U.S. Government Money Fund Consultant Class ....................... 115,973 942,446 Net asset value of shares issued upon reinvestment of dividends from net investment income: U.S. Government Money Fund A Class ...... 335,305 537,560 U.S. Government Money Fund Consultant Class ....................... 19,185 19,884 ------------- ------------- 6,489,403 18,059,294 Cost of shares repurchased: U.S. Government Money Fund A Class ...... (9,132,900) (20,896,267) U.S. Government Money Fund Consultant Class ....................... (392,241) (440,741) ------------- ------------- (9,525,141) (21,337,008) ------------- ------------- Decrease in net assets derived from capital share transactions .............. (3,035,738) (3,277,714) ------------- ------------- NET DECREASE IN NET ASSETS ............... (3,035,738) (3,277,714) NET ASSETS: Beginning of period ...................... 18,196,092 21,473,806 ------------- ------------- End of period ............................ $ 15,160,354 $ 18,196,092 ============= ============= See accompanying notes 3 DELAWARE GROUP LIMITED-TERM GOVERNMENT FUNDS, INC. - U.S. GOVERNMENT MONEY SERIES NOTES TO FINANCIAL STATEMENTS JUNE 30, 1995 (Unaudited) Delaware Group Limited-Term Government Funds, Inc. - U.S. Government Money Series (formerly known as Delaware Group Treasury Reserves, 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. 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 Family of Funds are allocated amongst the funds on the basis of average net assets. Security transactions are recorded on the date the securities are purchased or sold (trade date). 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. At June 30, 1995, the Fund had a liability for Investment Management fees and other expenses payable to DMC for $6,203. 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, 1995, the Fund expensed $21,836 for these services. At June 30, 1995, the Fund had a liability for such fees and other expenses payable to DSC for $1,520. 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. On April 3, 1995, Delaware Management Holdings, Inc., the indirect parent of DMC, DDLP and DSC, through a merger transaction (the "Merger") became a wholly-owned subsidiary of Lincoln National Corporation. Other than the resulting change in ownership, the Merger will not materially change the manner in which DMC, DDLP and DSC have heretofore conducted their respective relationships with the Fund. An annual meeting of shareholders was held on March 29, 1995. The matters submitted to a vote of shareholders were the election of directors, the approval of a new investment management agreement and the ratification of the selection of Ernst & Young LLP as independent auditors of the Fund. The new investment management agreement was submitted for shareholder approval in connection with the Merger because the Investment Company of 1940 requires shareholders to vote on a new investment management agreement whenever there is a change in control of an investment manager. The names of each director elected at the meeting along with the final vote tabulation with respect to each nominee and each matter were as follows: Number of Votes ------------------------------------------------ For Against/withheld Abstentions ------------------------------------------------ Election of Directors*: Wayne A. Stork 63,772,321 1,734,614 - Walter P. Babich 63,791,470 1,715,464 - Anthony D. Knerr 63,791,558 1,717,376 - Ann R. Leven 63,789,806 1,717,128 - W. Thacher Longstreth 63,782,327 1,724,607 - Charles E. Peck 63,791,470 1,715,464 - Approval of the New Investment Management Agreement 10,549,246 140,512 567,806 Selection of Ernst & Young LLP as Independent Auditors* 60,561,793 605,865 4,339,275 * Voted upon by all shareholders of the Company 4 NOTES TO FINANCIAL STATEMENTS (CONTINUED) 3. FUND SHARES Transactions in capital stock shares of the Fund were as follows:
SIX MONTHS YEAR ENDED ENDED 6/30/95 12/31/94 Shares sold: U.S. Government Money Fund A Class ..................................... 6,018,940 16,559,404 U.S. Government Money Fund Consultant Class ............................ 115,973 942,446 Shares issued upon reinvestment of dividends from net investment income: U.S. Government Money Fund A Class ..................................... 335,305 537,560 U.S. Government Money Fund Consultant Class ............................ 19,185 19,884 ----------- ----------- 6,489,403 18,059,294 ----------- ----------- Shares repurchased: U.S. Government Money Fund A Class ..................................... (9,132,900) (20,896,267) U.S. Government Money Fund Consultant Class ............................ (392,241) (440,741) ----------- ----------- (9,525,141) (21,337,008) ----------- ----------- Net decrease ............................................................ (3,035,738) (3,277,714) =========== ===========
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, 6/30/95* 1994 1993 1992 1991 1990 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 ................................ 0.0228 0.0289 0.0200 0.0308 0.0519 0.0711 Net realized gain from security transactions.......... none none none none none none -------- ------- ------- ------- ------- ------- Total from investment operations...................... 0.0228 0.0289 0.0200 0.0308 0.0519 0.0711 -------- ------- ------- ------- ------- ------- Less distributions: Dividends from net investment income.................. (0.0228) (0.0289) (0.0200) (0.0308) (0.0519) (0.0711) -------- ------- ------- ------- ------- ------- Total distributions................................... (0.0228) (0.0289) (0.0200) (0.0308) (0.0519) (0.0711) -------- ------- ------- ------- ------- ------- Net asset value, end of period......................... $1.0000 $1.0000 $1.0000 $1.0000 $1.0000 $1.0000 ======= ======= ======= ======= ======= ======= Total return........................................... 2.31% 2.93% 2.01% 3.13% 5.32% 7.35% Ratios/supplemental data: Net assets, end of period (000 omitted)............... $14,341 $17,119 $20,919 $41,049 $45,933 $49,907 Ratio of expenses to average net assets............... 1.36% 1.26% 1.04% 0.91% 0.85% 0.82% Ratio of net investment income to average net assets.. 4.57% 2.91% 2.06% 3.11% 5.23% 7.11%
- ------------- *Ratios have been annualized and total return has not been annualized. 6 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, 6/30/95* 1994 1993 1992 1991 1990 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 ................................ 0.0228 0.0289 0.0200 0.0308 0.0519 0.0700 Net realized gain from security transactions.......... none none none none none none -------- ------- ------- ------- ------- ------- Total from investment operations...................... 0.0228 0.0289 0.0200 0.0308 0.0519 0.0700 -------- ------- ------- ------- ------- ------- Less distributions: Dividends from net investment income.................. (0.0228) (0.0289) (0.0200) (0.0308) (0.0519) (0.0700) -------- ------- ------- ------- ------- ------- Total distributions................................... (0.0228) (0.0289) (0.0200) (0.0308) (0.0519) (0.0700) -------- ------- ------- ------- ------- ------- Net asset value, end of period......................... $1.0000 $1.0000 $1.0000 $1.0000 $1.0000 $1.0000 ======== ======= ======= ======= ======= ======= Total return........................................... 2.31% 2.93% 2.01% 3.13% 5.32% 7.23% Ratios/supplemental data: Net assets, end of period (000 omitted)............... $819 $1,077 $555 $747 $1,399 $1,604 Ratio of expenses to average net assets............... 1.36% 1.26% 1.04% 0.91% 0.85% 0.94% Ratio of net investment income to average net assets.. 4.57% 2.91% 2.06% 3.11% 5.23% 6.99%
- ------------- *Ratios have been annualized and total return has not been annualized. 7 - ----------------------------------------------------------------------------- | Delaware Group includes funds wth a wide range of investment | | objectives. Stock funds, income funds, tax-free funds, money market | | funds, closed-end equity/income funds and global funds give investors | | the ability to create a portfolio that fits their personal financial | | goals. For more information, including a prospectus of any Delaware | | Group fund, contact your financial adviser or call Delaware Group at | | 800-523-4640 or 215-988-1333 in Philadelphia. Read the prospectus | | carefully before investing. | | Mutual funds are not obligations of or guaranteed by any bank | | and are not FDIC insured. In addition, they involve risk, including | | possible loss of principal. | | | | INVESTMENT MANAGER SHAREHOLDER SERVICING, | | Delaware Management Company, Inc. DIVIDEND DISBURSING | | INTERNATIONAL AFFILIATE AND TRANSFER AGENT | | Delaware International Advisers Ltd. Delaware Service Company, Inc.| | NATIONAL DISTRIBUTOR | | Delaware Distributors, L.P. | - ----------------------------------------------------------------------------- SA - 005 [6/95] PP895 Printed in the U.S.A. __________________ | | | BULK RATE | | U.S. POSTAGE | | PAID | | Permit No.145 | | Conshohocken, PA | |__________________| DELAWARE GROUP A TRADITION OF SOUND INVESTING SINCE 1929 PHOTO OF VARIOUS COLONIAL OBJECTS | | 1995 | | SEMI- | | ANNUAL | | DELAWARE REPORT | GROUP | ----------- | U.S. GOVERNMENT | MONEY FUND | -----END PRIVACY-ENHANCED MESSAGE-----